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CONCURRENT RESOLUTION
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WHEREAS, Employee Stock Ownership Plans (ESOPs) are tax |
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qualified retirement plans authorized and encouraged by U.S. tax |
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and pension laws and commonly referred to as "employee-owned |
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companies"; and |
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WHEREAS, The National Center for Employee |
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Ownership estimates that there are approximately 11,300 employee |
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stock ownership plans for over 13 million employees in the United |
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States and that Texas is currently home to over 700 ESOPs; and |
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WHEREAS, A 2000 Rutgers study found that companies grow 2.3 |
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to 2.4 percent faster after establishing an ESOP and that companies |
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that combine employee ownership with employee workplace |
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participation programs show even more substantial gains in |
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performance; and |
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WHEREAS, An ESOP is a powerful mechanism to vest employees in |
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the company and boost employee morale; such plans create an |
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opportunity for employees to share in company growth and |
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performance and give employees real ownership stakes, with high |
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potential to invigorate their contributions to the success of the |
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business; and |
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WHEREAS, ESOPs encourage corporate and economic growth, |
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reduce unemployment, increase job satisfaction, improve employee |
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retention, and foster entrepreneurialism, and they should be |
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heavily promoted in Texas; now, therefore, be it |
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RESOLVED, That the 86th Legislature of the State of Texas |
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hereby request the Governor's Office of Economic Development and |
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Tourism to conduct a study on the promotion of Employee Stock |
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Ownership Plans in Texas; and, be it further |
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RESOLVED, That the office be requested to submit a full |
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report, including findings and recommendations, to the 87th Texas |
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Legislature before it convenes in January 2021. |