As Passed by the House 1 123rd General Assembly 3 Regular Session Sub. S. B. No. 186 4 1999-2000 5 SENATORS HERINGTON-FURNEY-FINGERHUT-DiDONATO-MALLORY-CUPP-HAGAN- 7 ESPY-LATELL-OELSLAGER-PRENTISS-WATTS-KEARNS-MUMPER-BRADY 8 REPRESENTATIVES BARNES-BENDER-METZGER-WOMER BENJAMIN-REDFERN- 9 LOGAN-HARTNETT-VERICH-DePIERO-STEVENS-WIDENER-MOTTLEY- 10 PERRY-COLLIER-YOUNG-WILSON 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 House 2 NONPROFIT COMMUNITY DEVELOPMENT CORPORATION, OR AN EMPLOYEE-OWNED 37 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 House 3 TO INDIVIDUALS AND ORGANIZATIONS THROUGHOUT THE STATE IN 74 UNDERTAKING OR PROMOTING THE ESTABLISHMENT AND SUCCESSFUL 75 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 House 4 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 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 House 5 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 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