Establishes the Rhode Island center for employee ownership to facilitate businesses in transitioning to an employee-owned business model.

Rhode Island Center for Employee Ownership

This bill would create a new state resource called the Rhode Island Center for Employee Ownership. The center's main purpose would be to help businesses in Rhode Island convert to an employee-owned model, meaning a structure where the workers themselves have an ownership stake in the company they work for. Common forms of employee ownership include Employee Stock Ownership Plans (ESOPs), worker cooperatives, and similar arrangements.

The center would serve as a guide and support system for business owners who are interested in transitioning to this type of ownership structure. This could be especially useful for small business owners who are looking to retire or step away from their business and want to pass it on to their employees rather than selling to an outside buyer. The center would likely provide education, technical assistance, and connections to resources needed to make that kind of transition happen.

This bill would primarily affect two groups: business owners considering their exit or succession options, and employees who might gain the opportunity to become part-owners of the companies where they work. Supporters of employee ownership models generally point to benefits like greater job stability and wealth-building opportunities for workers, while the transition process can be complex and costly without proper guidance — which is what this center aims to address. The bill has been referred to the Senate Labor and Gaming committee for further review.