The proposed bill, titled "The Rhode Island Opportunity for Employee Ownership Act," aims to facilitate employee ownership of qualified businesses in Rhode Island by establishing a new chapter in the labor laws. This chapter defines key terms such as "owner," "qualified business," and "worker cooperative business." A "qualified business" is defined as a privately held entity that has operated a principal place of business in Rhode Island for at least one year, is subject to Rhode Island taxes, has a minimum of three employees (excluding the owner), meets the relevant size standards for a small business as defined by the U.S. Small Business Administration, and is not publicly traded or exempt from the provisions of the act.

The act outlines the process for notifying employees about the sale of a qualified business. If the owner decides to sell, they must notify all current full-time and part-time employees, providing a written notice that includes the owner's intent to sell, a 30-day window for employees to express interest in purchasing the business as a worker cooperative, and information about a worker cooperative business resource list. This resource list, which will be created and maintained by the Rhode Island small business development center, will provide guidance and support for starting, converting, or maintaining employee-owned businesses.

Additionally, the Rhode Island commerce corporation is authorized to issue reasonable rules and regulations to implement the responsibilities outlined in this chapter. The legislation is set to take effect on January 1, 2027, promoting employee ownership as a viable option for business transitions in the state.