1Establishing an employee ownership program to promote business
2retention and growth in this Commonwealth; and imposing
3duties on the Department of Community and Economic
4Development.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Short title.

8This act shall be known and may be cited as the Employee
9Stock Ownership Program Act.

10Section 2. Definitions.

11The following words and phrases when used in this act shall
12have the meanings given to them in this section unless the
13context clearly indicates otherwise:

14"Department." The Department of Community and Economic
15Development of the Commonwealth.

16"Program." The Employee Ownership Program authorized by this
17act.

18Section 3. Employee ownership program.

1(a) Department duties.--The department may establish and
2administer a program to encourage employee stock ownership plans
3and other forms of employee ownership in existing and start-up
4businesses.

5(b) Memoranda of understanding.--The department may enter
6into a memoranda of understanding with one or more organizations
7to implement and administer the program. The memorandum shall
8provide that no such organization may charge the Commonwealth
9for any costs incurred in the implementation or administration
10of the program. The organizations shall include, but not be
11limited to, economic development corporations, regional economic
12development corporations and other nonprofit organizations with
13expertise in employee ownership plans.

14(c) Nature of program.--The program shall:

15(1) Provide education and outreach to inform employees,
16employers and entrepreneurs about the possibility and benefit
17of employee ownership, business ownership succession planning
18and employee participation in business decision making,
19including providing information about financial education,
20employee teams, open-book management principles that provide
21employees with financial information regarding business
22performance and other tools that enable employees to share
23ideas and information about how their businesses can succeed.

24(2) Provide technical assistance to assist efforts to
25form and transition to employee-owned businesses, to enable
26employers and employees to explore and assess the feasibility
27of transferring full or partial ownership to employees and to
28encourage employees and employers to start new employee-owned
29businesses.

30(3) Train employees and employers with respect to

1methods of employee participation in such open-book
2management, work teams, committees and other approaches for
3seeking greater employee input.

4(4) Develop partnerships with the State System of Higher
5Education, State-related universities and a business and
6industry trade association in order to host educational
7events to promote awareness and understanding of employee
8ownership of businesses.

9(d) Report.--Within one year of the program being
10established, and annually thereafter, the department shall
11provide a report to the Community, Economic and Recreational
12Development Committee of the Senate and the Commerce Committee
13of the House of Representatives regarding the program.

14Section 4. Effective date.

15This act shall take effect immediately.