Bill > S305

This bill aims to promote employee ownership by establishing a framework for small businesses in Massachusetts to be sold to their employees. The legislation defines a "Qualified Business" as a privately held, small business that has been operating in Massachusetts for at least a year and meets specific criteria. When an owner decides to sell their business, they must notify all workers within seven days and provide contact information for the Massachusetts Center for Employee Ownership (MassCEO). If a Qualified Employee Group (QEG) - consisting of a majority of workers - expresses interest in purchasing the business, they have 30 days to signal their intent and 180 days to negotiate a fair price. If an agreement is reached, the owner can receive a capital gains tax exemption of up to $1,000,000. The bill ensures that the resulting "Employee Owned Business" maintains democratic governance, with workers having voting rights and profits distributed based on labor contributions. The legislation also protects existing labor agreements and prevents external parties from controlling the business's governance. The goal is to provide a structured, supportive process for employees to collectively purchase and own their workplace, potentially creating more stable and equitable business transitions.

Business and Industry

https://malegislature.gov/Bills/194/S305