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:

• Allow professional corporations to be owned by ESOPs, provided that the voting trustees are licensed in that profession.
• Have the Texas Economic Development and Tourism Office establish an employee ownership assistance website.
• Allows contracting preferences for employee-owned companies, if they choose to do so, by entities of state and local government.

This bill, sponsored by Republican Hugh Shine, has been shepherded by the persistent efforts of NCEO member Mike Hart of ESOP-owned EEA in Austin. If you want to support the effort to help this bill pass the Senate, contact Mike at [email protected].