ESOPs= Good for Texas
Paving the path for a better way of doing business through Employee Owned (ESOP) Companies
ESOPs= Good for Texas
Paving the path for a better way of doing business through Employee Owned (ESOP) Companies
Background
Legislative Update
The ESOP Association has endorsed H.B. 2246! Read more here
We were voted out of the House State Affairs Committee with overwhelming support! Please take a moment to send an email to the Calendars Committee to help get us a floor vote. Email instructions can be found here.
In spite of the pandemic and the recent natural disaster, we are hard at work advancing new legislation in both chambers in the 87th session.
We have new legislation in H.B. 2246 and H.B. 4321 authored by our good friend Rep. Hugh Shine (R- Temple) and bipartisan S.B. 2029 jointly authored by State Senators Angela Paxton and José Menéndez. H.B. 2246 in particular is an improvement upon our bills from the bills we supported last session (see explainer on the right). H.B. 4321 and S.B. 2029 are identical bills that each aim to create a university-based resource center for employee ownership.
We also successfully inserted support for ESOPs in the 2020 Texas GOP Platform:
"Republicans support maximum economic opportunity for all citizens and believe that legal limits on employee ownership of Texas firms by Employee Stock Ownership Plan (ESOP) trusts should be eliminated. We also believe that changes in ownership from private individuals to a majority ownership by an ESOP should not creative a disadvantage when doing business with the State of Texas or political subdivisions of the State. We believe the State of Texas should encourage the creation of more ESOPs by making information easily available to businesses located in Texas."
Passing any one of these bills will take everyone’s best effort. There are 450-plus Texas companies with an ESOP with more than 100,000 participants (excluding things like large public companies). We can do this!
What H.B. 2246 Does
*The bill allows a professional corporation to organize as ESOPS as long as ALL of the voting trustees are licensed.
*The bill establishes the Employee Ownership Assistance Office in the Office of the Governor / Texas Economic Development and Tourism Office
*The bill allows certified HUBs to transition to an ESOP structure without forfeiting HUB status.
*The bill creates contracting preferences for ESOPs for the state, cities, counties, and special districts.
Both political sides embrace ESOPs
Democrat President Barack Obama
Republican President Ronald Reagan
Republican President Ronald Reagan
"The idea behind these ESOPs is that if employees have a piece of the action—they’re essentially shareholders in these companies—then you are aligning the interests of workers with the interests of the company as a whole. It’s something that can help grow companies, because the workers feel like they’re working for themselves, and they’re
"The idea behind these ESOPs is that if employees have a piece of the action—they’re essentially shareholders in these companies—then you are aligning the interests of workers with the interests of the company as a whole. It’s something that can help grow companies, because the workers feel like they’re working for themselves, and they’re putting more of themselves into their job each and every day. I think that it’s something that can be encouraged."
Republican President Ronald Reagan
Republican President Ronald Reagan
Republican President Ronald Reagan
"I can’t help but believe that in the future we will see in the United States and throughout the western world an increasing trend toward the next logical step, employee ownership. It is a path that benefits a free people."
Testimonals
Corey Rosen
Michael Keeling
Anne Davison
Founder, National Center for Employee Ownership
"The next step to grow employee ownership in the U.S. needs to be at the state level. This initiative is a good first step for Texas to become a leader in that effort."
Anne Davison
Michael Keeling
Anne Davison
President, RFD & Associates, Inc.
"RFD has been a successful woman-owned IT Sales & Services business in Austin for over 30 years. Our primary client is The State of Texas. Recently, RFD converted part of the business to an ESOP benefiting our employees, many of whom have been with RFD for decades. We will eventually transition to bein
President, RFD & Associates, Inc.
"RFD has been a successful woman-owned IT Sales & Services business in Austin for over 30 years. Our primary client is The State of Texas. Recently, RFD converted part of the business to an ESOP benefiting our employees, many of whom have been with RFD for decades. We will eventually transition to being fully employee owned (full ESOP). Retaining our HUB status will allow RFD to continue to serve our Texas clients as we have always done."
Michael Keeling
Michael Keeling
Michael Keeling
Former President, The ESOP Association
"While many states have enacted laws providing incentives for ESOP creation and operation, [if this bill] became the law of Texas, it would set a precedent for similar preference in other state laws, and perhaps the Federal 8(a) program. Since Texas' Constitution provides that the Legislature meet reg
Former President, The ESOP Association
"While many states have enacted laws providing incentives for ESOP creation and operation, [if this bill] became the law of Texas, it would set a precedent for similar preference in other state laws, and perhaps the Federal 8(a) program. Since Texas' Constitution provides that the Legislature meet regularly only once every two years, with each session ending in the May timeframe, the possibility of having the law changed is two years in the future unless the Legislature takes action this session. Mike Hart, Founder & Chairman of EEA Consulting Engineers is leading a grassroots Texas effort to have the Texas law amended."
How you can help
Sign the belief statement
Sign the belief statement
Sign the belief statement
Join other Texas ESOPs in supporting H.B. 1198 by signing the Belief Statement below in the "Join our Cause" section. We'd like to increase our coalition of ESOPs.
Invest in the cause
Sign the belief statement
Sign the belief statement
To ensure victory in the legislature, support our efforts. Contact Mike Hart at MikeHart@texasesop.org or 512-744-4400 for details on how to send funds and be a part of this great cause.
Contact your legislators
Sign the belief statement
Contact your legislators
Call, email, and meet your state senator and house representative to express your support for H.B. 1198 and to ask for their support in co-sponsoring it and in voting for it. Find out who represents you here.
Share with others
Volunteer to testify at hearing
Contact your legislators
We need your help to spread awareness of this initiative to your fellow employees and other Texas ESOP companies. Check out what the National Center for Employee Ownership recently wrote here about our efforts.
Volunteer to testify at hearing
Volunteer to testify at hearing
Volunteer to testify at hearing
We're looking for volunteers to testify at the House hearing about how ESOPs work and why this bill is good for business. If interested contact MikeHart@texasesop.org
Invest In Our Cause
All sponsor contributions (100%) raised will go to pay Potomac Strategy Group and Texas Solutions Group, the political arm of Texas ESOP Initiative.
Certified Employee Owned is collecting and dispersing funds as a courtesy service for the purposes of advancing Texas ESOP state legislation. Make your check out to "Ownership Alliance, PBC" with "Texas ESOP Initiative" in the memo line and send to
Certified Employee Owned
345 California St. Suite 600, San Francisco, CA 94104
Or you may donate online below now.
Leadership
Mike Hart
Thomas Dudley
Thomas Dudley
Founder, Texas ESOP Initiative
As president at EEA Consulting Engineers, Mike has been with the company since he founded it in 1977. EEA has been an ESOP since 2015 specializing in traditional facility design and remodeling, to commissioning, and energy conservation projects worldwide with licenses in all 50 states and the District of Columbia.
Thomas Dudley
Thomas Dudley
Thomas Dudley
Advisor, Texas ESOP Initiative
As CEO of Certified EO, Thomas is a passionate advocate for employee-owned companies leading recruitment for Certified EO and working closely with members. Thomas co-founded Certified EO while working on a PhD in Organizational Behavior at the Stanford Graduate School of Business.
Team
Jeff Heckler
Matt Mackowiak
Jeff Heckler
Primary Lobbyist, Texas ESOP Initiative
As founder of Texas Solutions Group in 1993, Jeff brings his prior experience as Chief of Staff to a Texas Senator and leverages relationships to accomplish goals. He serves on the Board of Directors for the Texas Association of Business and The Austin Club as well as serves on the City of Austin's Solid Waste Advisory Committee.
Lauren Day
Matt Mackowiak
Jeff Heckler
Marketing Director, Texas ESOP Initiative
President at GoodBuzz Solutions, Lauren harnesses the best of marketing, communications, and events to empower the brands of entrepreneurs, public figures, and organizational leaders to become more visible so they can achieve their goals and be the best.
Matt Mackowiak
Matt Mackowiak
Matt Mackowiak
Political Director, Texas ESOP Initiative
As president of Potomac Strategy Group, Matt provides political consulting to campaigns and media relations/crisis communications assistance to companies, groups and individuals. He's served two U.S. Senators and a Governor, in the Bush administration, and in winning campaigns.