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A BILL TO BE ENTITLED
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AN ACT
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relating to companies in which employees have ownership interests |
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through employee stock ownership plans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 301.004, Business Organizations Code, is |
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amended to read as follows: |
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Sec. 301.004. AUTHORIZED PERSON. For purposes of this |
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title, a person is an authorized person with respect to: |
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(1) a professional association if the person is a |
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professional individual; [and] |
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(2) a [professional corporation or a] professional |
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limited liability company if the person is a professional |
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individual or professional organization; and |
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(3) a professional corporation if the person is: |
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(A) a professional individual; |
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(B) a professional organization; or |
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(C) an employee stock ownership plan, as |
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described by Section 303.0015, established by the corporation. |
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SECTION 2. Chapter 303, Business Organizations Code, is |
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amended by adding Section 303.0015 to read as follows: |
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Sec. 303.0015. AUTHORIZED PERSON: EMPLOYEE STOCK OWNERSHIP |
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PLAN. For purposes of this chapter, an employee stock ownership |
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plan, as defined by Section 4975(e) of the Internal Revenue Code of |
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1986 (26 U.S.C. Section 4975(e)), established by a professional |
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corporation, is an authorized person if: |
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(1) all of the voting trustees of the plan are |
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professional individuals who are licensed to provide at least one |
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category of the professional services described in the |
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corporation's certificate of formation; and |
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(2) the ownership interests in the plan are not |
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directly issued to any person other than the plan trust or a |
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professional individual licensed to provide at least one category |
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of the professional services described in the corporation's |
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certificate of formation. |
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SECTION 3. Subchapter B, Chapter 481, Government Code, is |
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amended by adding Section 481.030 to read as follows: |
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Sec. 481.030. ESTABLISHMENT OF EMPLOYEE OWNERSHIP |
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ASSISTANCE WEBSITE. The office shall establish and maintain an |
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Internet website for employee-owned company information to serve as |
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a source of: |
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(1) outreach and information dissemination for |
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fostering increased awareness of employee stock ownership plans; |
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and |
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(2) technical assistance to assist businesses in |
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determining the feasibility of establishing an employee stock |
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ownership plan. |
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SECTION 4. Subchapter B, Chapter 2161, Government Code, is |
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amended by adding Section 2161.0611 to read as follows: |
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Sec. 2161.0611. RETENTION OF STATUS AS HISTORICALLY |
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UNDERUTILIZED BUSINESS. (a) In this section, "employee stock |
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ownership plan" has the meaning assigned by Section 4975(e), |
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Internal Revenue Code of 1986 (26 U.S.C. Section 4975(e)). |
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(b) Notwithstanding any other law, a historically |
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underutilized business that establishes an employee stock |
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ownership plan retains the business's status as a historically |
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underutilized business after the business establishes the plan if a |
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majority of members of the board of directors of the business are |
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economically disadvantaged persons. |
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(c) If a business described by Section 2161.001(2) is |
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certified as a historically underutilized business and the business |
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establishes an employee stock ownership plan that causes the |
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business to lose status as a historically underutilized business or |
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eligibility for recertification as a historically underutilized |
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business, the business retains that status or eligibility for a |
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period of not more than 10 years after the date the business |
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establishes the plan. |
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SECTION 5. This Act takes effect September 1, 2023. |