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As Reported by the House Economic Development and Small Business
Committee
123rd General Assembly
Regular Session
1999-2000 | Sub. S. B. No. 186 |
SENATORS HERINGTON-FURNEY-FINGERHUT-DiDONATO-MALLORY-CUPP-HAGAN-
ESPY-LATELL-OELSLAGER-PRENTISS-WATTS-KEARNS-MUMPER-BRADY
REPRESENTATIVES BARNES-BENDER-METZGER
A BILL
To enact sections 122.13, 122.131, 122.132, 122.133, 122.134, 122.135, and
122.136 of the Revised Code to reestablish the recently sunsetted Employee
Ownership Assistance Program administered by the Department of Development, to
repeal sections 122.13, 122.131, 122.132, 122.133, 122.134, 122.135, and
122.136 of the Revised Code effective December 31, 2004, and to declare an
emergency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 122.13, 122.131, 122.132, 122.133, 122.134, 122.135,
and 122.136 of the Revised Code be enacted to read as follows:
Sec. 122.13. AS USED IN SECTIONS 122.13 TO 122.136 OF THE
REVISED CODE:
(A) "CLOSING" MEANS THE PERMANENT CESSATION OF OPERATIONS
AT AN ESTABLISHMENT THAT EMPLOYS AT LEAST TWENTY-FIVE PERSONS.
(B) "EMPLOYEE-OWNED CORPORATION" MEANS A BUSINESS
OPERATION THAT IS CONTROLLED BY A BOARD OF DIRECTORS THAT IS SELECTED BY
THE SHAREHOLDERS ON A BASIS OF ONE VOTE PER SHAREHOLDER AND IN
WHICH THE MANAGEMENT RIGHTS ARE REPRESENTED BY VOTING STOCK THAT
IS OWNED ONLY BY EMPLOYEES OF THE OPERATION, A NONPROFIT
COMMUNITY DEVELOPMENT CORPORATION, OR AN EMPLOYEE-OWNED STOCK
OWNERSHIP PLAN ANY PORTION OF WHICH IS OWNED BY NOT LESS THAN
TWENTY PER CENT OF THOSE EMPLOYEES. AN "EMPLOYEE-OWNED
CORPORATION" ALSO INCLUDES A BUSINESS OPERATION IN WHICH NOT LESS
THAN FIFTY PER CENT OF EACH CLASS OF VOTING SECURITY IS OWNED BY
AN EMPLOYEE STOCK OWNERSHIP TRUST ESTABLISHED UNDER AN EMPLOYEE
STOCK OWNERSHIP PLAN AS DEFINED IN 26 U.S.C.A. 4975(e)(7), IF
THE EMPLOYEE STOCK OWNERSHIP PLAN REQUIRES PASS-THROUGH OF VOTING
RIGHTS ON VOTING SECURITIES AS THE SECURITIES ARE ALLOCATED TO
INDIVIDUAL PARTICIPATING EMPLOYEE ACCOUNTS.
(C) "ESTABLISHMENT" MEANS ANY FACTORY, PLANT, OFFICE, OR
OTHER FACILITY, BUT DOES NOT INCLUDE A CONSTRUCTION SITE OR OTHER
WORKPLACE THAT WAS INTENDED TO BE A TEMPORARY WORKPLACE.
(D) "RELOCATION" MEANS REMOVAL OF ALL OR SUBSTANTIALLY ALL
OF THE INDUSTRIAL OR COMMERCIAL OPERATIONS IN AN ESTABLISHMENT TO
A NEW LOCATION, WITHIN OR OUTSIDE OF THE STATE, THAT IS ONE
HUNDRED OR MORE MILES FROM THE LOCATION OF THE ORIGINAL
ESTABLISHMENT.
Sec. 122.131. THERE IS HEREBY CREATED THE EMPLOYEE
OWNERSHIP ASSISTANCE PROGRAM TO BE ADMINISTERED BY THE DIRECTOR
OF DEVELOPMENT. THE DIRECTOR MAY EMPLOY ANY PROFESSIONAL AND
TECHNICAL PERSONNEL AND OTHER EMPLOYEES THAT ARE NECESSARY TO
COMPLY WITH SECTIONS 122.13 TO 122.136 OF THE REVISED CODE.
THE DIRECTOR SHALL ASSIST AN INDIVIDUAL OR GROUP OF INDIVIDUALS, WHO
SEEK ASSISTANCE IN THE ESTABLISHMENT OF AN EMPLOYEE-OWNED
CORPORATION. THE DIRECTOR SHALL INFORM LOCAL GOVERNMENT,
BUSINESS ORGANIZATIONS, LABOR ORGANIZATIONS, AND OTHERS IN THE
STATE OF THE AVAILABILITY OF THE PROGRAM AND ITS SERVICES ESTABLISHED
PURSUANT TO SECTIONS 122.13 TO 122.136 OF THE REVISED CODE.
Sec. 122.132. THE DIRECTOR OF DEVELOPMENT SHALL DO ALL OF
THE FOLLOWING:
(A) DEVELOP, COLLECT, AND DISSEMINATE INFORMATION USEFUL
TO INDIVIDUALS AND ORGANIZATIONS THROUGHOUT THE STATE IN
UNDERTAKING OR PROMOTING THE ESTABLISHMENT AND SUCCESSFUL
OPERATION OF EMPLOYEE-OWNED CORPORATIONS;
(B) ASSIST IN THE EVALUATION OF THE FEASIBILITY AND
ECONOMIC VITALITY OF EMPLOYEE-OWNED CORPORATION PROPOSALS
RECEIVED IN THE EMPLOYEE OWNERSHIP ASSISTANCE PROGRAM;
(C) PROVIDE TECHNICAL ASSISTANCE AND COUNSELING SERVICES
TO INDIVIDUALS WHO SEEK TO FORM AN EMPLOYEE-OWNED CORPORATION;
(D) PROVIDE ASSISTANCE AND COUNSELING IN THE OPERATION OF
AN EMPLOYEE-OWNED CORPORATION;
(E) ASSIST INDIVIDUALS IN OBTAINING FINANCING FOR THE
PURCHASE AND OPERATION OF AN EMPLOYEE-OWNED CORPORATION;
(F) PROMOTE AND COORDINATE THE EFFORTS OF LOCAL, STATE,
FEDERAL, OR PRIVATE ORGANIZATIONS TO ASSIST IN THE FORMATION OR
OPERATION OF EMPLOYEE-OWNED CORPORATIONS;
(G) RECOMMEND APPROPRIATE LEGISLATIVE OR EXECUTIVE ACTIONS
TO ENHANCE OPPORTUNITIES FOR EMPLOYEE-OWNED CORPORATIONS IN THIS
STATE;
(H) PRESCRIBE ALL FORMS FOR ASSISTANCE REQUESTS AND
PUBLISH MATERIALS DESCRIBING THE EMPLOYEE OWNERSHIP ASSISTANCE PROGRAM'S
SERVICES;
(I) ADOPT RULES UNDER CHAPTER 119. OF
THE REVISED CODE FOR THE CONDUCT OF THE EMPLOYEE OWNERSHIP
ASSISTANCE PROGRAM.
Sec. 122.133. (A) THE DIRECTOR OF DEVELOPMENT MAY
ESTABLISH TECHNICAL AND ADVISORY BOARDS IN ACCORDANCE WITH
SECTION 122.09 OF THE REVISED CODE AS THE DIRECTOR CONSIDERS
APPROPRIATE TO ASSIST IN THE EXECUTION OF THE EMPLOYEE OWNERSHIP
ASSISTANCE PROGRAM AND MAY OBTAIN INFORMATION AND COOPERATION CONCERNING
THE PROGRAM, UPON REQUEST, FROM ANY DEPARTMENT, BUREAU,
INSTITUTION, AGENCY, OR OFFICE OF THE STATE GOVERNMENT IN
ACCORDANCE WITH SECTION 122.10 OF THE REVISED CODE.
(B) THE DIRECTOR OF DEVELOPMENT SHALL PUBLICIZE THE
AVAILABILITY OF THE EMPLOYEE OWNERSHIP ASSISTANCE PROGRAM AND ITS
SERVICES TO LOCAL GOVERNMENTS AND TO BUSINESS AND LABOR
ORGANIZATIONS AND SHALL COORDINATE WITH LOCAL GOVERNMENTS, BUSINESS AND LABOR
ORGANIZATIONS,
AND OTHER STATE AGENCIES IN OBTAINING INFORMATION RELATING TO THE
POSSIBLE RELOCATION OF OPERATIONS OR CLOSING OF A BUSINESS
ESTABLISHMENT.
Sec. 122.134. IF THE DIRECTOR OF DEVELOPMENT BECOMES
AWARE THAT A BUSINESS ESTABLISHMENT IS CLOSING OR RELOCATING
OPERATIONS, THE DIRECTOR, PURSUANT TO A REQUEST RECEIVED UNDER
SECTION 122.135 OF THE REVISED CODE, MAY CONDUCT AN INITIAL
STUDY
OF THE FEASIBILITY OF THE EMPLOYEES OF THE BUSINESS ESTABLISHMENT
ESTABLISHING AN EMPLOYEE-OWNED CORPORATION TO CONTINUE THE
OPERATIONS OF THE BUSINESS ESTABLISHMENT, OR TO OPERATE ANOTHER
BUSINESS, AND MAY HOLD AN INFORMATIONAL MEETING OF
REPRESENTATIVES OF THE LOCAL COMMUNITY, THE BUSINESS ESTABLISHMENT,
REPRESENTATIVES OF ANY EMPLOYEE ORGANIZATION, AND AFFECTED
EMPLOYEES TO EXPLAIN THE SERVICES AVAILABLE FROM THE DEPARTMENT
OF DEVELOPMENT RELATIVE TO THE FORMATION OF AN EMPLOYEE-OWNED
CORPORATION.
Sec. 122.135. ANY INDIVIDUAL, GROUP OF INDIVIDUALS,
EMPLOYEES, ORGANIZATION OF EMPLOYEES, OR LOCAL COMMUNITY AFFECTED
BY ANY CLOSING OR RELOCATION OF A BUSINESS ESTABLISHMENT'S OPERATIONS OR
THE PROPOSED CLOSING OR RELOCATION OF A BUSINESS ESTABLISHMENT'S OPERATIONS
MAY
REQUEST, IN A MANNER PRESCRIBED BY THE DIRECTOR OF DEVELOPMENT,
ASSISTANCE IN EFFORTS TO STUDY THE FEASIBILITY OF THE
ESTABLISHMENT OF AN EMPLOYEE-OWNED CORPORATION AND ANY OTHER
ASSISTANCE THE DIRECTOR MAY PROVIDE PURSUANT TO SECTIONS 122.13
TO 122.136 OF THE REVISED CODE.
Sec. 122.136. THE DIRECTOR OF DEVELOPMENT SHALL PREPARE AND SUBMIT A
REPORT
TO THE GOVERNOR AND THE GENERAL ASSEMBLY ANNUALLY ON OR BEFORE THE FIRST DAY
OF FEBRUARY OF THE SERVICES AND ACTIVITIES OF THE EMPLOYEE OWNERSHIP
ASSISTANCE PROGRAM FOR THE PRECEDING CALENDAR YEAR. THE DIRECTOR SHALL
INCLUDE IN THE REPORT INFORMATION REGARDING THE NUMBER, NAMES, AND LOCATIONS
OF BUSINESS ESTABLISHMENTS THAT HAVE BEEN OR LIKELY WILL BE ASSISTED
AS EMPLOYEE-OWNED CORPORATIONS; RECOMMENDATIONS ON
HOW TO BETTER OPERATE THE PROGRAM; INFORMATION REGARDING THE EFFECTIVENESS OF
THE PROGRAM
IN MAINTAINING AND IMPROVING EMPLOYMENT IN THE STATE; AND THE
NUMBER OF INDIVIDUALS AFFECTED BY THE ACTIVITIES OF THE PROGRAM.
Section 2. Sections 122.13, 122.131, 122.132, 122.133, 122.134, 122.135, and
122.136 of the Revised Code are hereby repealed, effective December 31, 2004.
Section 3. This act is hereby declared to be an emergency measure necessary
for the immediate preservation of the public peace, health, and safety. The
reason for the necessity lies in the fact that the Employee Ownership
Assistance Program, which expired on December 31, 1999, is an indispensable
program that helps create and preserve jobs and employment opportunities for
the people of this state when corporations indicate their intent to close or
relocate their operations. Therefore, this act shall go into immediate
effect.
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