Bill > H7964

This bill establishes the "Rhode Island Opportunity for Employee Ownership Act," which requires the owner of a "qualified business" – defined as a privately held, Rhode Island-based small business subject to state taxes with at least three employees, and not publicly traded or subject to specific exemptions like family transfers or emergencies – to notify all full-time and part-time employees when they decide to sell the business. This notification must include the owner's intent to sell, a proposed price, and information about a resource list for employee ownership, and it grants employees an exclusive 30-day window to initiate a process to potentially purchase the business as a "worker cooperative business." A worker cooperative business is defined as either a corporation organized under specific state law or a limited liability company (LLC) or partnership where all employee-owners have equal voting rights and profits are distributed based on their labor contribution. The bill also mandates the creation and maintenance of a publicly accessible list of entities that can provide guidance on employee ownership, and it will take effect on January 1, 2027.

Labor and Employment

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