As Reported by the House Economic Development and Small Business 1
Committee 2
123rd General Assembly 5
Regular Session Sub. S. B. No. 186 6
1999-2000 7
SENATORS HERINGTON-FURNEY-FINGERHUT-DiDONATO-MALLORY-CUPP-HAGAN- 9
ESPY-LATELL-OELSLAGER-PRENTISS-WATTS-KEARNS-MUMPER-BRADY 10
REPRESENTATIVES BARNES-BENDER-METZGER 11
_________________________________________________________________ 12
A B I L L
To enact sections 122.13, 122.131, 122.132, 122.133, 14
122.134, 122.135, and 122.136 of the Revised Code 15
to reestablish the recently sunsetted Employee
Ownership Assistance Program administered by the 16
Department of Development, to repeal sections 17
122.13, 122.131, 122.132, 122.133, 122.134,
122.135, and 122.136 of the Revised Code 18
effective December 31, 2004, and to declare an
emergency. 19
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 21
Section 1. That sections 122.13, 122.131, 122.132, 23
122.133, 122.134, 122.135, and 122.136 of the Revised Code be 24
enacted to read as follows:
Sec. 122.13. AS USED IN SECTIONS 122.13 TO 122.136 OF THE 26
REVISED CODE: 27
(A) "CLOSING" MEANS THE PERMANENT CESSATION OF OPERATIONS 29
AT AN ESTABLISHMENT THAT EMPLOYS AT LEAST TWENTY-FIVE PERSONS. 30
(B) "EMPLOYEE-OWNED CORPORATION" MEANS A BUSINESS 32
OPERATION THAT IS CONTROLLED BY A BOARD OF DIRECTORS THAT IS 33
SELECTED BY THE SHAREHOLDERS ON A BASIS OF ONE VOTE PER 34
SHAREHOLDER AND IN WHICH THE MANAGEMENT RIGHTS ARE REPRESENTED BY 35
VOTING STOCK THAT IS OWNED ONLY BY EMPLOYEES OF THE OPERATION, A 36
NONPROFIT COMMUNITY DEVELOPMENT CORPORATION, OR AN EMPLOYEE-OWNED 37
2
STOCK OWNERSHIP PLAN ANY PORTION OF WHICH IS OWNED BY NOT LESS 38
THAN TWENTY PER CENT OF THOSE EMPLOYEES. AN "EMPLOYEE-OWNED 39
CORPORATION" ALSO INCLUDES A BUSINESS OPERATION IN WHICH NOT LESS 40
THAN FIFTY PER CENT OF EACH CLASS OF VOTING SECURITY IS OWNED BY 41
AN EMPLOYEE STOCK OWNERSHIP TRUST ESTABLISHED UNDER AN EMPLOYEE 42
STOCK OWNERSHIP PLAN AS DEFINED IN 26 U.S.C.A. 4975(e)(7), IF THE 44
EMPLOYEE STOCK OWNERSHIP PLAN REQUIRES PASS-THROUGH OF VOTING
RIGHTS ON VOTING SECURITIES AS THE SECURITIES ARE ALLOCATED TO 45
INDIVIDUAL PARTICIPATING EMPLOYEE ACCOUNTS. 46
(C) "ESTABLISHMENT" MEANS ANY FACTORY, PLANT, OFFICE, OR 48
OTHER FACILITY, BUT DOES NOT INCLUDE A CONSTRUCTION SITE OR OTHER 49
WORKPLACE THAT WAS INTENDED TO BE A TEMPORARY WORKPLACE. 50
(D) "RELOCATION" MEANS REMOVAL OF ALL OR SUBSTANTIALLY ALL 52
OF THE INDUSTRIAL OR COMMERCIAL OPERATIONS IN AN ESTABLISHMENT TO 53
A NEW LOCATION, WITHIN OR OUTSIDE OF THE STATE, THAT IS ONE 54
HUNDRED OR MORE MILES FROM THE LOCATION OF THE ORIGINAL 55
ESTABLISHMENT. 56
Sec. 122.131. THERE IS HEREBY CREATED THE EMPLOYEE 58
OWNERSHIP ASSISTANCE PROGRAM TO BE ADMINISTERED BY THE DIRECTOR 59
OF DEVELOPMENT. THE DIRECTOR MAY EMPLOY ANY PROFESSIONAL AND 60
TECHNICAL PERSONNEL AND OTHER EMPLOYEES THAT ARE NECESSARY TO 61
COMPLY WITH SECTIONS 122.13 TO 122.136 OF THE REVISED CODE. THE 63
DIRECTOR SHALL ASSIST AN INDIVIDUAL OR GROUP OF INDIVIDUALS, WHO
SEEK ASSISTANCE IN THE ESTABLISHMENT OF AN EMPLOYEE-OWNED 64
CORPORATION. THE DIRECTOR SHALL INFORM LOCAL GOVERNMENT, 65
BUSINESS ORGANIZATIONS, LABOR ORGANIZATIONS, AND OTHERS IN THE 66
STATE OF THE AVAILABILITY OF THE PROGRAM AND ITS SERVICES 67
ESTABLISHED PURSUANT TO SECTIONS 122.13 TO 122.136 OF THE REVISED 68
CODE.
Sec. 122.132. THE DIRECTOR OF DEVELOPMENT SHALL DO ALL OF 70
THE FOLLOWING: 71
(A) DEVELOP, COLLECT, AND DISSEMINATE INFORMATION USEFUL 73
TO INDIVIDUALS AND ORGANIZATIONS THROUGHOUT THE STATE IN 74
UNDERTAKING OR PROMOTING THE ESTABLISHMENT AND SUCCESSFUL 75
3
OPERATION OF EMPLOYEE-OWNED CORPORATIONS; 76
(B) ASSIST IN THE EVALUATION OF THE FEASIBILITY AND 78
ECONOMIC VITALITY OF EMPLOYEE-OWNED CORPORATION PROPOSALS 79
RECEIVED IN THE EMPLOYEE OWNERSHIP ASSISTANCE PROGRAM; 80
(C) PROVIDE TECHNICAL ASSISTANCE AND COUNSELING SERVICES 82
TO INDIVIDUALS WHO SEEK TO FORM AN EMPLOYEE-OWNED CORPORATION; 83
(D) PROVIDE ASSISTANCE AND COUNSELING IN THE OPERATION OF 85
AN EMPLOYEE-OWNED CORPORATION; 86
(E) ASSIST INDIVIDUALS IN OBTAINING FINANCING FOR THE 88
PURCHASE AND OPERATION OF AN EMPLOYEE-OWNED CORPORATION; 89
(F) PROMOTE AND COORDINATE THE EFFORTS OF LOCAL, STATE, 91
FEDERAL, OR PRIVATE ORGANIZATIONS TO ASSIST IN THE FORMATION OR 92
OPERATION OF EMPLOYEE-OWNED CORPORATIONS; 93
(G) RECOMMEND APPROPRIATE LEGISLATIVE OR EXECUTIVE ACTIONS 95
TO ENHANCE OPPORTUNITIES FOR EMPLOYEE-OWNED CORPORATIONS IN THIS 96
STATE; 97
(H) PRESCRIBE ALL FORMS FOR ASSISTANCE REQUESTS AND 99
PUBLISH MATERIALS DESCRIBING THE EMPLOYEE OWNERSHIP ASSISTANCE 100
PROGRAM'S SERVICES; 101
(I) ADOPT RULES UNDER CHAPTER 119. OF THE REVISED CODE FOR 104
THE CONDUCT OF THE EMPLOYEE OWNERSHIP ASSISTANCE PROGRAM. 105
Sec. 122.133. (A) THE DIRECTOR OF DEVELOPMENT MAY 107
ESTABLISH TECHNICAL AND ADVISORY BOARDS IN ACCORDANCE WITH 108
SECTION 122.09 OF THE REVISED CODE AS THE DIRECTOR CONSIDERS 109
APPROPRIATE TO ASSIST IN THE EXECUTION OF THE EMPLOYEE OWNERSHIP 110
ASSISTANCE PROGRAM AND MAY OBTAIN INFORMATION AND COOPERATION 111
CONCERNING THE PROGRAM, UPON REQUEST, FROM ANY DEPARTMENT, 112
BUREAU, INSTITUTION, AGENCY, OR OFFICE OF THE STATE GOVERNMENT IN 113
ACCORDANCE WITH SECTION 122.10 OF THE REVISED CODE. 114
(B) THE DIRECTOR OF DEVELOPMENT SHALL PUBLICIZE THE 116
AVAILABILITY OF THE EMPLOYEE OWNERSHIP ASSISTANCE PROGRAM AND ITS 117
SERVICES TO LOCAL GOVERNMENTS AND TO BUSINESS AND LABOR 118
ORGANIZATIONS AND SHALL COORDINATE WITH LOCAL GOVERNMENTS, 119
BUSINESS AND LABOR ORGANIZATIONS, AND OTHER STATE AGENCIES IN 121
4
OBTAINING INFORMATION RELATING TO THE POSSIBLE RELOCATION OF 122
OPERATIONS OR CLOSING OF A BUSINESS ESTABLISHMENT. 123
Sec. 122.134. IF THE DIRECTOR OF DEVELOPMENT BECOMES AWARE 126
THAT A BUSINESS ESTABLISHMENT IS CLOSING OR RELOCATING
OPERATIONS, THE DIRECTOR, PURSUANT TO A REQUEST RECEIVED UNDER 127
SECTION 122.135 OF THE REVISED CODE, MAY CONDUCT AN INITIAL STUDY 129
OF THE FEASIBILITY OF THE EMPLOYEES OF THE BUSINESS ESTABLISHMENT 130
ESTABLISHING AN EMPLOYEE-OWNED CORPORATION TO CONTINUE THE 131
OPERATIONS OF THE BUSINESS ESTABLISHMENT, OR TO OPERATE ANOTHER 132
BUSINESS, AND MAY HOLD AN INFORMATIONAL MEETING OF 133
REPRESENTATIVES OF THE LOCAL COMMUNITY, THE BUSINESS 134
ESTABLISHMENT, REPRESENTATIVES OF ANY EMPLOYEE ORGANIZATION, AND 135
AFFECTED EMPLOYEES TO EXPLAIN THE SERVICES AVAILABLE FROM THE 136
DEPARTMENT OF DEVELOPMENT RELATIVE TO THE FORMATION OF AN 137
EMPLOYEE-OWNED CORPORATION. 138
Sec. 122.135. ANY INDIVIDUAL, GROUP OF INDIVIDUALS, 140
EMPLOYEES, ORGANIZATION OF EMPLOYEES, OR LOCAL COMMUNITY AFFECTED 141
BY ANY CLOSING OR RELOCATION OF A BUSINESS ESTABLISHMENT'S 142
OPERATIONS OR THE PROPOSED CLOSING OR RELOCATION OF A BUSINESS 143
ESTABLISHMENT'S OPERATIONS MAY REQUEST, IN A MANNER PRESCRIBED BY 145
THE DIRECTOR OF DEVELOPMENT, ASSISTANCE IN EFFORTS TO STUDY THE 146
FEASIBILITY OF THE ESTABLISHMENT OF AN EMPLOYEE-OWNED CORPORATION 147
AND ANY OTHER ASSISTANCE THE DIRECTOR MAY PROVIDE PURSUANT TO 148
SECTIONS 122.13 TO 122.136 OF THE REVISED CODE. 149
Sec. 122.136. THE DIRECTOR OF DEVELOPMENT SHALL PREPARE 151
AND SUBMIT A REPORT TO THE GOVERNOR AND THE GENERAL ASSEMBLY 153
ANNUALLY ON OR BEFORE THE FIRST DAY OF FEBRUARY OF THE SERVICES 154
AND ACTIVITIES OF THE EMPLOYEE OWNERSHIP ASSISTANCE PROGRAM FOR 155
THE PRECEDING CALENDAR YEAR. THE DIRECTOR SHALL INCLUDE IN THE 156
REPORT INFORMATION REGARDING THE NUMBER, NAMES, AND LOCATIONS OF 157
BUSINESS ESTABLISHMENTS THAT HAVE BEEN OR LIKELY WILL BE ASSISTED
AS EMPLOYEE-OWNED CORPORATIONS; RECOMMENDATIONS ON HOW TO BETTER 159
OPERATE THE PROGRAM; INFORMATION REGARDING THE EFFECTIVENESS OF
THE PROGRAM IN MAINTAINING AND IMPROVING EMPLOYMENT IN THE STATE; 161
5
AND THE NUMBER OF INDIVIDUALS AFFECTED BY THE ACTIVITIES OF THE 162
PROGRAM.
Section 2. Sections 122.13, 122.131, 122.132, 122.133, 164
122.134, 122.135, and 122.136 of the Revised Code are hereby 165
repealed, effective December 31, 2004.
Section 3. This act is hereby declared to be an emergency 167
measure necessary for the immediate preservation of the public 168
peace, health, and safety. The reason for the necessity lies in 169
the fact that the Employee Ownership Assistance Program, which 170
expired on December 31, 1999, is an indispensable program that 171
helps create and preserve jobs and employment opportunities for
the people of this state when corporations indicate their intent 172
to close or relocate their operations. Therefore, this act shall 173
go into immediate effect. 174