As Passed by the Senate 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 186 5
1999-2000 6
SENATORS HERINGTON-FURNEY-FINGERHUT-DiDONATO-MALLORY-CUPP-HAGAN- 8
ESPY-LATELL-OELSLAGER-PRENTISS-WATTS-KEARNS-MUMPER-BRADY 9
_________________________________________________________________ 11
A B I L L
To enact sections 122.13, 122.131, 122.132, 122.133, 13
122.134, 122.135, and 122.136 of the Revised Code 14
to reestablish the recently sunsetted Employee
Ownership Assistance Program administered by the 15
Department of Development, to repeal sections 16
122.13, 122.131, 122.132, 122.133, 122.134,
122.135, and 122.136 of the Revised Code 17
effective December 31, 2004, and to declare an
emergency. 18
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 20
Section 1. That sections 122.13, 122.131, 122.132, 22
122.133, 122.134, 122.135, and 122.136 of the Revised Code be 23
enacted to read as follows:
Sec. 122.13. AS USED IN SECTIONS 122.13 TO 122.136 OF THE 25
REVISED CODE: 26
(A) "CLOSING" MEANS THE PERMANENT CESSATION OF OPERATIONS 28
AT AN ESTABLISHMENT THAT EMPLOYS AT LEAST TWENTY-FIVE PERSONS. 29
(B) "EMPLOYEE-OWNED CORPORATION" MEANS A BUSINESS 31
OPERATION THAT IS CONTROLLED BY A BOARD OF DIRECTORS THAT IS 32
SELECTED BY THE SHAREHOLDERS ON A BASIS OF ONE VOTE PER 33
SHAREHOLDER AND IN WHICH THE MANAGEMENT RIGHTS ARE REPRESENTED BY 34
VOTING STOCK THAT IS OWNED ONLY BY EMPLOYEES OF THE OPERATION, A 35
NONPROFIT COMMUNITY DEVELOPMENT CORPORATION, OR AN EMPLOYEE-OWNED 36
STOCK OWNERSHIP PLAN ANY PORTION OF WHICH IS OWNED BY NOT LESS 37
THAN TWENTY PER CENT OF THOSE EMPLOYEES. AN "EMPLOYEE-OWNED 38
2
CORPORATION" ALSO INCLUDES A BUSINESS OPERATION IN WHICH NOT LESS 39
THAN FIFTY PER CENT OF EACH CLASS OF VOTING SECURITY IS OWNED BY 40
AN EMPLOYEE STOCK OWNERSHIP TRUST ESTABLISHED UNDER AN EMPLOYEE 41
STOCK OWNERSHIP PLAN AS DEFINED IN 26 U.S.C.A. 4975(e)(7), IF THE 43
EMPLOYEE STOCK OWNERSHIP PLAN REQUIRES PASS-THROUGH OF VOTING
RIGHTS ON VOTING SECURITIES AS THE SECURITIES ARE ALLOCATED TO 44
INDIVIDUAL PARTICIPATING EMPLOYEE ACCOUNTS. 45
(C) "ESTABLISHMENT" MEANS ANY FACTORY, PLANT, OFFICE, OR 47
OTHER FACILITY, BUT DOES NOT INCLUDE A CONSTRUCTION SITE OR OTHER 48
WORKPLACE THAT WAS INTENDED TO BE A TEMPORARY WORKPLACE. 49
(D) "RELOCATION" MEANS REMOVAL OF ALL OR SUBSTANTIALLY ALL 51
OF THE INDUSTRIAL OR COMMERCIAL OPERATIONS IN AN ESTABLISHMENT TO 52
A NEW LOCATION, WITHIN OR OUTSIDE OF THE STATE, THAT IS ONE 53
HUNDRED OR MORE MILES FROM THE LOCATION OF THE ORIGINAL 54
ESTABLISHMENT. 55
Sec. 122.131. THERE IS HEREBY CREATED THE EMPLOYEE 57
OWNERSHIP ASSISTANCE PROGRAM TO BE ADMINISTERED BY THE DIRECTOR 58
OF DEVELOPMENT. THE DIRECTOR MAY EMPLOY ANY PROFESSIONAL AND 59
TECHNICAL PERSONNEL AND OTHER EMPLOYEES THAT ARE NECESSARY TO 60
COMPLY WITH SECTIONS 122.13 TO 122.136 OF THE REVISED CODE. THE 62
DIRECTOR SHALL ASSIST AN INDIVIDUAL OR GROUP OF INDIVIDUALS, WHO
SEEK ASSISTANCE IN THE ESTABLISHMENT OF AN EMPLOYEE-OWNED 63
CORPORATION. THE DIRECTOR SHALL INFORM LOCAL GOVERNMENT, 64
BUSINESS ORGANIZATIONS, LABOR ORGANIZATIONS, AND OTHERS IN THE 65
STATE OF THE AVAILABILITY OF THE PROGRAM AND ITS SERVICES 66
ESTABLISHED PURSUANT TO SECTIONS 122.13 TO 122.136 OF THE REVISED 67
CODE.
Sec. 122.132. THE DIRECTOR OF DEVELOPMENT SHALL DO ALL OF 69
THE FOLLOWING: 70
(A) DEVELOP, COLLECT, AND DISSEMINATE INFORMATION USEFUL 72
TO INDIVIDUALS AND ORGANIZATIONS THROUGHOUT THE STATE IN 73
UNDERTAKING OR PROMOTING THE ESTABLISHMENT AND SUCCESSFUL 74
OPERATION OF EMPLOYEE-OWNED CORPORATIONS; 75
(B) ASSIST IN THE EVALUATION OF THE FEASIBILITY AND 77
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ECONOMIC VITALITY OF EMPLOYEE-OWNED CORPORATION PROPOSALS 78
RECEIVED IN THE EMPLOYEE OWNERSHIP ASSISTANCE PROGRAM; 79
(C) PROVIDE TECHNICAL ASSISTANCE AND COUNSELING SERVICES 81
TO INDIVIDUALS WHO SEEK TO FORM AN EMPLOYEE-OWNED CORPORATION; 82
(D) PROVIDE ASSISTANCE AND COUNSELING IN THE OPERATION OF 84
AN EMPLOYEE-OWNED CORPORATION; 85
(E) ASSIST INDIVIDUALS IN OBTAINING FINANCING FOR THE 87
PURCHASE AND OPERATION OF AN EMPLOYEE-OWNED CORPORATION; 88
(F) PROMOTE AND COORDINATE THE EFFORTS OF LOCAL, STATE, 90
FEDERAL, OR PRIVATE ORGANIZATIONS TO ASSIST IN THE FORMATION OR 91
OPERATION OF EMPLOYEE-OWNED CORPORATIONS; 92
(G) RECOMMEND APPROPRIATE LEGISLATIVE OR EXECUTIVE ACTIONS 94
TO ENHANCE OPPORTUNITIES FOR EMPLOYEE-OWNED CORPORATIONS IN THIS 95
STATE; 96
(H) PRESCRIBE ALL FORMS FOR ASSISTANCE REQUESTS AND 98
PUBLISH MATERIALS DESCRIBING THE EMPLOYEE OWNERSHIP ASSISTANCE 99
PROGRAM'S SERVICES; 100
(I) ADOPT RULES UNDER CHAPTER 119. OF THE REVISED CODE FOR 103
THE CONDUCT OF THE EMPLOYEE OWNERSHIP ASSISTANCE PROGRAM. 104
Sec. 122.133. (A) THE DIRECTOR OF DEVELOPMENT MAY 106
ESTABLISH TECHNICAL AND ADVISORY BOARDS IN ACCORDANCE WITH 107
SECTION 122.09 OF THE REVISED CODE AS THE DIRECTOR CONSIDERS 108
APPROPRIATE TO ASSIST IN THE EXECUTION OF THE EMPLOYEE OWNERSHIP 109
ASSISTANCE PROGRAM AND MAY OBTAIN INFORMATION AND COOPERATION 110
CONCERNING THE PROGRAM, UPON REQUEST, FROM ANY DEPARTMENT, 111
BUREAU, INSTITUTION, AGENCY, OR OFFICE OF THE STATE GOVERNMENT IN 112
ACCORDANCE WITH SECTION 122.10 OF THE REVISED CODE. 113
(B) THE DIRECTOR OF DEVELOPMENT SHALL PUBLICIZE THE 115
AVAILABILITY OF THE EMPLOYEE OWNERSHIP ASSISTANCE PROGRAM AND ITS 116
SERVICES TO LOCAL GOVERNMENTS AND TO BUSINESS AND LABOR 117
ORGANIZATIONS AND SHALL COORDINATE WITH LOCAL GOVERNMENTS, 118
BUSINESS AND LABOR ORGANIZATIONS, AND OTHER STATE AGENCIES IN 120
OBTAINING INFORMATION RELATING TO THE POSSIBLE RELOCATION OF 121
OPERATIONS OR CLOSING OF A BUSINESS ESTABLISHMENT. 122
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Sec. 122.134. IF THE DIRECTOR OF DEVELOPMENT BECOMES AWARE 125
THAT A BUSINESS ESTABLISHMENT IS CLOSING OR RELOCATING
OPERATIONS, THE DIRECTOR, PURSUANT TO A REQUEST RECEIVED UNDER 126
SECTION 122.135 OF THE REVISED CODE, MAY CONDUCT AN INITIAL STUDY 128
OF THE FEASIBILITY OF THE EMPLOYEES OF THE BUSINESS ESTABLISHMENT 129
ESTABLISHING AN EMPLOYEE-OWNED CORPORATION TO CONTINUE THE 130
OPERATIONS OF THE BUSINESS ESTABLISHMENT, OR TO OPERATE ANOTHER 131
BUSINESS, AND MAY HOLD AN INFORMATIONAL MEETING OF 132
REPRESENTATIVES OF THE LOCAL COMMUNITY, THE BUSINESS 133
ESTABLISHMENT, REPRESENTATIVES OF ANY EMPLOYEE ORGANIZATION, AND 134
AFFECTED EMPLOYEES TO EXPLAIN THE SERVICES AVAILABLE FROM THE 135
DEPARTMENT OF DEVELOPMENT RELATIVE TO THE FORMATION OF AN 136
EMPLOYEE-OWNED CORPORATION. 137
Sec. 122.135. ANY INDIVIDUAL, GROUP OF INDIVIDUALS, 139
EMPLOYEES, ORGANIZATION OF EMPLOYEES, OR LOCAL COMMUNITY AFFECTED 140
BY ANY CLOSING OR RELOCATION OF A BUSINESS ESTABLISHMENT'S 141
OPERATIONS OR THE PROPOSED CLOSING OR RELOCATION OF A BUSINESS 142
ESTABLISHMENT'S OPERATIONS MAY REQUEST, IN A MANNER PRESCRIBED BY 144
THE DIRECTOR OF DEVELOPMENT, ASSISTANCE IN EFFORTS TO STUDY THE 145
FEASIBILITY OF THE ESTABLISHMENT OF AN EMPLOYEE-OWNED CORPORATION 146
AND ANY OTHER ASSISTANCE THE DIRECTOR MAY PROVIDE PURSUANT TO 147
SECTIONS 122.13 TO 122.136 OF THE REVISED CODE. 148
Sec. 122.136. THE DIRECTOR OF DEVELOPMENT SHALL PREPARE 150
AND SUBMIT A REPORT TO THE GOVERNOR AND THE GENERAL ASSEMBLY 152
ANNUALLY ON OR BEFORE THE FIRST DAY OF FEBRUARY OF THE SERVICES 153
AND ACTIVITIES OF THE EMPLOYEE OWNERSHIP ASSISTANCE PROGRAM FOR 154
THE PRECEDING CALENDAR YEAR. THE DIRECTOR SHALL INCLUDE IN THE 155
REPORT INFORMATION REGARDING THE NUMBER, NAMES, AND LOCATIONS OF 156
BUSINESS ESTABLISHMENTS THAT HAVE BEEN OR LIKELY WILL BE ASSISTED
AS EMPLOYEE-OWNED CORPORATIONS; RECOMMENDATIONS ON HOW TO BETTER 158
OPERATE THE PROGRAM; INFORMATION REGARDING THE EFFECTIVENESS OF
THE PROGRAM IN MAINTAINING AND IMPROVING EMPLOYMENT IN THE STATE; 160
AND THE NUMBER OF INDIVIDUALS AFFECTED BY THE ACTIVITIES OF THE 161
PROGRAM.
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Section 2. Sections 122.13, 122.131, 122.132, 122.133, 163
122.134, 122.135, and 122.136 of the Revised Code are hereby 164
repealed, effective December 31, 2004.
Section 3. This act is hereby declared to be an emergency 166
measure necessary for the immediate preservation of the public 167
peace, health, and safety. The reason for the necessity lies in 168
the fact that the Employee Ownership Assistance Program, which 169
expired on December 31, 1999, is an indispensable program that 170
helps create and preserve jobs and employment opportunities for
the people of this state when corporations indicate their intent 171
to close or relocate their operations. Therefore, this act shall 172
go into immediate effect. 173