The bill establishes the Massachusetts Center for Employee Ownership within the Massachusetts Office of Business Development, with a mission to promote employee ownership throughout the Commonwealth. The Center will provide education, outreach, and facilitate the transition of traditional companies to employee ownership models. It is mandated to submit an annual report to the Legislature detailing its activities and an inventory of employee-owned businesses in the state. Additionally, an Advisory Board on Employee Ownership will be formed, consisting of 19 members who will advise the Governor and the Center's Director on relevant policy matters.

The bill introduces new legal language to define various employee ownership structures, including Employee Stock Ownership Plans (ESOPs), worker cooperatives, and Employee Ownership Trusts (EO Trusts). It clarifies the definitions of these terms, emphasizing the distinct characteristics of each ownership model. Furthermore, the bill highlights a growing trend in Massachusetts by listing 256 entities, including various ESOPs and cooperatives, thereby promoting employee ownership as a viable business model that can enhance worker engagement and economic stability within communities.