OLYMPIA – Gov. Jay Inslee signed a bill into law Tuesday, May 9, that is designed to aid businesses looking to adopt an employee stock ownership plan.
Senate Bill 5096 was sponsored by 4th District Sen. Mike Padden, R-Spokane Valley.
“This new law will help promote employee ownership, which is valuable not only for employees but for our society,” Padden said.
“Studies have shown that when employees are happier, they stay in their job longer and they retire in a much better financial position.
“And the companies are more likely to remain in the local area.”
Padden added that the measure will help maintain local businesses after a business founder retires.
“Many current business owners do not have a plan for when they transition out of the business, and employee ownership provides a valuable option,” Padden said.
The bill the Washington Employee Ownership Program under the state Department of Commerce. The program will offer technical support and other services to certain businesses considering certain employee ownership structures.
The new law also creates the Washington Employee Ownership Commission to oversee the program and provides a business-and-occupation tax credit for costs related to converting a qualifying business to an employee ownership structure.
The measure was backed by a diverse group, including the Spokane Valley Chamber of Commerce and Schweitzer Engineering Laboratories.
“According to decades of research, employee-owned companies consistently produce higher wages, greater employee wealth and fewer layoffs,” said Jack Moriarty, founder and executive director of Ownership America, a national think tank.
“Sen. Padden and his bipartisan co-sponsors deserve praise for their leadership in positioning Washington to create and retain high-quality jobs that build wealth for workers and communities through employee ownership.”
Senate Bill 5096 was unanimously approved by both the Senate and House this year.
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