Bill > H7570

This bill establishes the Rhode Island Center for Employee Ownership (RICEO) to help businesses transition to an employee-owned model, recognizing that many small businesses, which are vital to Rhode Island's economy, are facing closure due to owners retiring and a lack of succession planning. The RICEO, housed within the business development center, will act as a concierge service, securing resources and providing technical assistance to both business owners and employees interested in employee ownership. Its director will be responsible for organizing the center's operations, including referring businesses to legal, financial, and technical experts, partnering with various organizations to promote employee ownership, working with state agencies to reduce barriers, and creating a network of support providers. The RICEO will also develop programs to raise awareness about employee ownership as a solution to the small business succession crisis, maintain a registry of employee-owned businesses, and research the impact of these initiatives. A RICEO advisory committee, composed of state agency representatives, legislative appointees, and representatives from various business and academic sectors, will coordinate state resources and promote employee ownership. The bill defines "employee-owned business model" to include worker cooperatives, Employee Stock Ownership Plans (ESOPs), and Employee Ownership Trusts, and "legacy small business" as an existing Rhode Island business not currently employee-owned, with "succession planning" referring to the process of leadership transition. This act will take effect upon its passage.

Business and Industry

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