RI Senate Unanimously Passes Bill to Create State Employee Ownership Center

The Rhode Island Senate unanimously passed S. 2922, which would create the Rhode Island Center for Employee Ownership (RICEO). According to the bill text, “the purpose of the RICEO will be to secure resources, provide technical assistance, and serve generally as a concierge service both to legacy business owners and worker owners interested in transitioning a small business to an appropriate employee-owned business model.” Worker cooperatives, ESOPs, and companies where a majority of the stock is owned by an employee ownership trust are all explicitly mentioned as examples of employee ownership, but the RICEO could provide assistance for other models. 

There is no specific funding authorized in the text of the bill. It would operate within the state’s business development center. An advisory committee of representatives from government, labor, and employee-owned companies would be created to help oversee the work. The bill is now pending before the Rhode Island House of Representatives Committee on Small Business.