SENATE BILL REPORT

SB 5120

BYSenators Barr, Lee, Saling, Warnke, McMullen and Smitherman

Reviving the employee ownership advisory panel and establishing the employee ownership training fund.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 11, 1989; January 9, 1990

Senate Staff:Jack Brummel (786-7428)

AS OF JANUARY 8, 1990

BACKGROUND:

In 1987 the Legislature created the employee ownership program in the Department of Community Development.  The program provides technical assistance to those forming and operating employee-owned businesses and conducts educational programs on employee ownership and self-management.  The program has an advisory panel which has assisted the department in the development and operation of the program.  The panel members are not reimbursed for expenses.  A 1988 omnibus sunset act deleted references to the advisory panel effective June 30, 1993.

The lack of training resources for firms transferring ownership to employee owners has been cited as an obstacle to success for some employee-owned firms.

SUMMARY:

The advisory panel to the employee ownership program is reestablished.  An employee ownership training fund is established to provide training in participatory management, labor management cooperation, employee participation and involvement in decision making, and conflict resolution for firms which have become employee owned.  The Department of Community Development authorizes disbursement from the fund.  Firms must show a good faith effort to obtain training funds from other sources before applying to the department.  The advisory panel will review and make recommendations to the department on the use of the funds.  The department may require matching funds or repayment of funds.  No firm may receive more than $10,000 from the training fund.  The department may solicit additional monies.

Appropriation:    $100,000 for training fund; $100,000 for program enhancement.

Revenue:    yes

Fiscal Note:      available