Pro-ESOP legislation is gaining momentum in state legislatures across the country, thanks in part to the hard work of The ESOP Association’s chapter leaders and grassroots advocates across the country. In Oregon, legislation to provide contracting preferences to ESOP companies was signed into law, while pro-ESOP legislation in Wisconsin passed the state Assembly by a unanimous vote. TEA Advocates also conducted State Advocacy Days in Ohio and Pennsylvania to meet with state legislators and their staff to advocate for ESOP legislation and educate elected officials about the powerful benefits of employee ownership. These inspiring successes demonstrate how effective grassroots action can be.
Oregon
Oregon Governor Tina Kotek signed HB 3646 into law on June 11, extending state contracting preferences to companies that are at least 50% employee-owned. The ESOP Association was proud to endorse this legislation and work with the bill sponsor and TEA member Recology to see the bill cross the finish line. This legislation expanded on existing legislation in Oregon that provided contracting preferences to businesses that provide "a material positive impact on society and the environment, taken as a whole, from the business and operations of the company." HB 3646 will help expand opportunities for ESOPs in Oregon and set an example for states throughout the country.
Wisconsin
In Wisconsin, our members organized their second Advocacy Day by building on the energy and success of their inaugural ESOP Advocacy Day last year. Armed with experience, relationships, and momentum, Wisconsin advocates returned to the Capitol at the start of the legislative session with a concrete goal: to advocate for AB17, legislation that would provide tax credits to businesses transitioning to employee ownership and create an employee ownership outreach and education program.
Ahead of their state Advocacy Day, Wisconsin chapter leaders worked with their State Assemblymen to author this legislation and prepared to introduce it ahead of the Advocacy Day. This preparation paid off when the entire team of ESOP advocates was able to meet with all 133 offices in the Wisconsin Legislature to ask them to support AB17. The results speak for themselves: AB17 gained 26 bipartisan cosponsors and earned a hearing before a key committee.
However, advocacy is not just a one-day occasion. Wisconsin Chapter leaders continued to work closely with their state legislators to advocate for the bill to receive a vote on the Assembly floor. This hard work paid off when the Assembly passed AB 17 by a unanimous 96-0 vote! Now, Wisconsin volunteers are talking to their state Senators to see this bill pass in that chamber and be sent to the governor to be signed into law.
Pennsylvania
On June 10, ESOP champions from across Pennsylvania converged on the State Capitol for the Commonwealth’s first-ever ESOP Advocacy Day. Their top priority was securing support for SB 478, a bipartisan bill that would establish an Office of Employee Ownership within the Department of Community and Economic Development and provide financial and technical assistance to businesses converting to ESOPs. Advocates also urged lawmakers to consider proven incentives such as tax credits, contracting preferences, loan guarantees, and federal SSBCI funds that other states already use to grow employee ownership. This was a huge success driven by TEA Pennsylvania/Delaware Chapter leaders.
Ohio
Meanwhile, in Ohio, TEA advocates demonstrated how persistent grassroots outreach opens doors to future legislative victories. Volunteers fanned out across the Statehouse in Columbus, meeting directly with their representatives and targeting key legislative leaders to educate them on ESOPs and the economic benefits of employee ownership. Their efforts paid off as well, as they secured important new connections with legislators eager to become ESOP champions. Several expressed interest in sponsoring future legislation to promote employee ownership—a major win in a state that’s already home to one of the oldest Employee Ownership centers in the country. Now, Ohio is poised to join the growing wave of states advancing pro-ESOP legislation.
Moving Forward
The ESOP Association will continue to monitor legislative developments in the states and stand ready to support our chapters and volunteer advocates as they work to pass pro-ESOP policies. We are committed to helping our members turn advocacy into action. Together, we can build on the momentum throughout the country to ensure more states recognize the power of employee ownership to strengthen businesses, empower workers, and invest in local communities.
