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A Step Forward: Employee ownership bill filed in Texas
A bill focused on ESOPs was just filed in Texas, but is it enough?
A bill was recently filed in Texas which would promote employee ownership. The bill focuses on employee stock ownership plans and would classify ESOPs under the “historically underutilized” (HUB) category. Typically this classification was meant for businesses owned by women, minorities, or service-disabled veterans. The benefits of this HUB categorization include increased exposure, connections to state institutions, and connections to academic institutions.
The bill also focuses on expanding the reach of employee ownership. This includes creating a website to assist businesses in understanding employee ownership and outreach campaigns. The bill mainly focuses on getting the word out about employee ownership instead of broad legislation on the topic. The HUB categorization is certainly helpful in establishing connections. However, it may not be enough to make employee ownership mainstream. Moreover, it only focuses on ESOPs, disregarding other types of employee ownership. Ultimately, this is a step in the right direction, toward broader legislation prioritizing and promoting employee ownership.
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