Corey Rosen
The Texas House of Representatives has passed HB 2389, “An Act relating to companies in which employees have ownership interests through employee stock ownership plans.” It will now head to the Senate, where, as SB 1233, it has already passed the International Affairs and Economic Development Committee by a vote of 8-0. The bill would:
Corey Rosen
The Colorado legislature has passed (by margins of 54-2 in the House and 26-9 in the Senate) a bill (HB23-1081) to expand its tax credits for converting to employee ownership. Governor Jared Polis has strongly supported the legislation and is expected to sign it. Under prior law, companies converting to ESOP ownership could get a tax credit for up to 50% of costs for conversion, with a maximum credit of $100,000 for conversion expenses; the dollar limit is now increased to $150,000. For worker cooperatives, prior law provided a credit of up to 50% of conversion costs, with a maximum credit of $25,000; the dollar limit is now increased to $40,000. Conversions to other qualified forms of employee ownership now also qualify for a credit of up 50% of the costs, up to a maximum credit of $25,000. Finally, the bill provides a tax credit of 50% of the costs, up to a maximum credit of $25,000, for a qualified employee-owned business expanding its employee ownership by at least 20%.
Loren Rodgers
If you were not in Kansas City last week for the 2023 Employee Ownership Conference, I want to share an announcement I made:
Loren Rodgers
The Institute for the Study of Employee Ownership and Profit Sharing at Rutgers University announced on April 18 that it is launching the Shares Laboratory. The lab will use "big data" and a model of the national labor force to conduct research, monitoring, and policy-relevant work on all forms of equity compensation.
Corey Rosen
By a unanimous vote, both chambers of the Washington State Legislature have passed S.B. 5096, “An act relating to expanding employee ownership.” On May 9, Governor Jay Inslee signed the bill. The law creates the most ambitious state employee ownership program yet. It includes the following provisions:
Corey Rosen
Update: On August 25, 2023, the DOL announced that the proposed rules will be released by the end of the year.
Lindsay Isaac
On April 12, people from 23 employee-owned companies gathered online to talk about business literacy, stock value, and ESOPs for employees. Beginning with some thought-provoking ideas from volunteer leaders of the Finance Working Group and from NCEO staff, the group split up into breakout rooms to talk, peer-to-peer, about challenges and solutions to improve business literacy at their respective companies.
Corey Rosen
The Canadian government’s proposed 2023 budget creates a framework for employee ownership through employee ownership trusts. The budget states:
Corey Rosen
New York Assembly bills A1920 and S962 would create a state employee ownership center to be housed at a university to provide outreach, education, and training on employee ownership, including ESOPs, worker cooperatives, and businesses that otherwise have a majority of their voting stock owned by employees. No specific funding is stipulated in the bill. It also provides that companies considering a transition to employee ownership can apply for loan assistance from the New York State business development loans. The loans could be funded through a public authority trust fund that could allocate up to $100 million in initial funding for this purpose. The bill does not contain a specific appropriation for this process, however. New York already authorizes public authority trusts funds for other purposes.
