Bill Text: TX HB2389 | 2023-2024 | 88th Legislature | Engrossed

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Bill Title: Relating to employee-owned companies.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2023-05-11 - Referred to Business & Commerce [HB2389 Detail]

Download: Texas-2023-HB2389-Engrossed.html

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By: Shine H.B. No. 2389

A BILL TO BE ENTITLED
AN ACT
relating to employee-owned companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 301.004, Business Organizations Code, is
amended to read as follows:
Sec. 301.004. AUTHORIZED PERSON. For purposes of this
title, a person is an authorized person with respect to:
(1) a professional association if the person is a
professional individual; [and]
(2) a [professional corporation or a] professional
limited liability company if the person is a professional
individual or professional organization; and
(3) a professional corporation if the person is:
(A) a professional individual;
(B) a professional organization; or
(C) an employee stock ownership plan, as
described by Section 303.0015, established by the corporation.
SECTION 2. Chapter 303, Business Organizations Code, is
amended by adding Section 303.0015 to read as follows:
Sec. 303.0015. AUTHORIZED PERSON: EMPLOYEE STOCK OWNERSHIP
PLAN. For purposes of this chapter, an employee stock ownership
plan, as defined by Section 4975(e) of the Internal Revenue Code of
1986 (26 U.S.C. Section 4975(e)), established by a professional
corporation, is an authorized person if:
(1) all of the voting trustees of the plan are
professional individuals who are licensed to provide at least one
category of the professional services described in the
corporation's certificate of formation; and
(2) the ownership interests in the plan are not
directly issued to any person other than the plan trust or a
professional individual licensed to provide at least one category
of the professional services described in the corporation's
certificate of formation.
SECTION 3. Subchapter B, Chapter 481, Government Code, is
amended by adding Section 481.030 to read as follows:
Sec. 481.030. ESTABLISHMENT OF EMPLOYEE OWNERSHIP
ASSISTANCE WEBSITE. The office shall establish and maintain an
Internet website for employee-owned company information to serve as
a source of:
(1) outreach and information dissemination for
fostering increased awareness of employee stock ownership plans;
and
(2) technical assistance to assist businesses in
determining the feasibility of establishing an employee stock
ownership plan.
SECTION 4. Section 2155.074(b-1), Government Code, is
amended to read as follows:
(b-1) The comptroller or other state agency may, subject to
Subsection (c) and Section 2155.075, consider the following
relevant factors under Subsection (b), including:
(1) installation costs;
(2) life cycle costs;
(3) the quality and reliability of the goods and
services;
(4) the delivery terms;
(5) indicators of probable vendor performance under
the contract such as past vendor performance, the vendor's
financial resources and ability to perform, the vendor's experience
or demonstrated capability and responsibility, and the vendor's
ability to provide reliable maintenance agreements and support;
(6) the cost of any employee training associated with
a purchase;
(7) the effect of a purchase on agency productivity;
(8) the vendor's anticipated economic impact to the
state or a subdivision of the state, including potential tax
revenue and employment;
(9) the impact of a purchase on the agency's
administrative resources; [and]
(10) whether the vendor is an employee-owned company,
as defined by Section 271.909, Local Government Code, that is
incorporated or headquartered in this state; and
(11) other factors relevant to determining the best
value for the state in the context of a particular purchase.
SECTION 5. Subchapter Z, Chapter 271, Local Government
Code, is amended by adding Section 271.909 to read as follows:
Sec. 271.909. CONSIDERATION OF TEXAS EMPLOYEE-OWNED
COMPANIES. (a) In this section:
(1) "Employee-owned company" means a corporation for
which a majority of the stock is held by an employee stock ownership
plan, as defined by Section 4975(e) of the Internal Revenue Code of
1986 (26 U.S.C. Section 4975(e)).
(2) "Governmental entity" means a municipality,
county, or special district.
(b) A governmental entity may consider as a relevant factor
in scoring a vendor who is responding to a procurement solicitation
for goods or services whether the vendor is an employee-owned
company incorporated or headquartered in this state.
SECTION 6. This Act takes effect September 1, 2023.