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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | July 19, 2023 09:15 AM |
|---|---|
| From: | Representative Sara Innamorato and Rep. Kristin Marcell |
| To: | All House members |
| Subject: | Office of Employee Ownership |
| In the next ten years, nearly 2.5 million businesses headed by baby boomers that employ 25 million people will be looking to transfer the ownership of their company. Converting these businesses to an employee ownership model could be a viable solution to allow an owner to strategize their exit while keeping the company and the jobs in the community and honoring the business owner's legacy. With dedicated resources, Pennsylvania would be a leader in helping workers take over the business, gain an ownership stake, reorganize it, and navigate a successful path forward by adopting an employee-owned model. Our legislation will establish the Office of Employee Ownership within the Department of Community and Economic Development (DCED) to do just that. The expressed goal of the office is to provide educational, financial, and technical assistance to existing employee-owned companies and those firms seeking to retain jobs by restructuring an existing business into an employee-owned enterprise. Keeping and growing Pennsylvania-based companies is paramount to the economic success of our Commonwealth. Through the expansion of employee ownership enterprises, we can assist in creating an economic climate that is good for workers, good for business owners, and good for the host community. By keeping and creating jobs, the nonprofit National Center for Employee Ownership reported that, in 2014, employee-owned companies saved the Federal government $17 billion. In 2010, a recession year, the effect was $37 billion. These benefits extend to States as well. Employee Ownership creates a financial benefit to the Commonwealth and provides real financial futures for working people. We ask that you join us in assisting Pennsylvania workers in seizing an opportunity to reorganize their workplace, save local businesses, and better our economy through employee ownership. |
Memo Updated: July 19, 2023 09:16 AM