88(R) SB 1233 - Introduced version - Bill Text
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A BILL TO BE ENTITLED
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AN ACT
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relating to companies in which employees have ownership interests |
 
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through employee stock ownership plans. |
 
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             BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
 
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             SECTION  1.    Section 301.004, Business Organizations Code, is |
 
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amended to read as follows: |
 
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             Sec.  301.004.    AUTHORIZED PERSON. For purposes of this |
 
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title, a person is an authorized person with respect to: |
 
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                         (1)    a professional association if the person is a |
 
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professional individual; [and] |
 
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                         (2)    a [professional corporation or a] professional |
 
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limited liability company if the person is a professional |
 
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individual or professional organization; and |
 
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                         (3)    a professional corporation if the person is: |
 
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                                     (A)    a professional individual; |
 
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                                     (B)    a professional organization; or |
 
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                                     (C)    an employee stock ownership plan, as |
 
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described by Section 303.0015, established by the corporation. |
 
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             SECTION  2.    Chapter 303, Business Organizations Code, is |
 
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amended by adding Section 303.0015 to read as follows: |
 
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             Sec.  303.0015.    AUTHORIZED PERSON: EMPLOYEE STOCK OWNERSHIP |
 
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PLAN. For purposes of this chapter, an employee stock ownership |
 
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plan, as defined by Section 4975(e) of the Internal Revenue Code of |
 
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1986 (26 U.S.C. Section 4975(e)), established by a professional |
 
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corporation, is an authorized person if: |
 
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                         (1)    all of the voting trustees of the plan are |
 
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professional individuals who are licensed to provide at least one |
 
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category of the professional services described in the |
 
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corporation's certificate of formation; and |
 
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                         (2)    the ownership interests in the plan are not |
 
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directly issued to any person other than the plan trust or a |
 
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professional individual licensed to provide at least one category |
 
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of the professional services described in the corporation's |
 
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certificate of formation. |
 
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             SECTION  3.    Subchapter B, Chapter 481, Government Code, is |
 
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amended by adding Section 481.030 to read as follows: |
 
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             Sec.  481.030.    ESTABLISHMENT OF EMPLOYEE OWNERSHIP |
 
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ASSISTANCE WEBSITE. The office shall establish and maintain an |
 
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Internet website for employee-owned company information to serve as |
 
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a source of: |
 
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                         (1)    outreach and information dissemination for |
 
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fostering increased awareness of employee stock ownership plans; |
 
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and |
 
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                         (2)    technical assistance to assist businesses in |
 
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determining the feasibility of establishing an employee stock |
 
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ownership plan. |
 
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             SECTION  4.    Subchapter B, Chapter 2161, Government Code, is |
 
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amended by adding Section 2161.0611 to read as follows: |
 
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             Sec.  2161.0611.    RETENTION OF STATUS AS HISTORICALLY |
 
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UNDERUTILIZED BUSINESS. (a) In this section, "employee stock |
 
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ownership plan" has the meaning assigned by Section 4975(e), |
 
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Internal Revenue Code of 1986 (26 U.S.C. Section 4975(e)). |
 
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             (b)    Notwithstanding any other law, a historically |
 
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underutilized business that establishes an employee stock |
 
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ownership plan retains the business's status as a historically |
 
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underutilized business after the business establishes the plan if a |
 
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majority of members of the board of directors of the business are |
 
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economically disadvantaged persons. |
 
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             (c)    If a business described by Section 2161.001(2) is |
 
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certified as a historically underutilized business and the business |
 
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establishes an employee stock ownership plan that causes the |
 
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business to lose status as a historically underutilized business or |
 
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eligibility for recertification as a historically underutilized |
 
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business, the business retains that status or eligibility for a |
 
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period of not more than 10 years after the date the business |
 
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establishes the plan. |
 
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             SECTION  5.    This Act takes effect Statutes affected: Introduced: Business Organizations Code 301.004, Chapter , Business Organizations Code 303.0015 (Business Organizations Code 301, Chapter , Business Organizations Code 303)
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