REPORT TITLE:
Employee stock programs


DESCRIPTION:
Promotes expanded employee ownership and participation in Hawaii
businesses.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.1357       
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


xFO=102>              A  BILL  FOR  AN  ACT

RELATING TO EMPLOYEE BUSINESS OWNERSHIP AND PARTICIPATION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  In Act 315, Session Laws of Hawaii 1986, the
 
 2 legislature provided State support for employee ownership and
 
 3 participation in Hawaii business.  That Act became chapter 213E,
 
 4 Hawaii Revised Statutes, and would have expired on June 30, 1988.
 
 5 However, in 1988, the legislature extended the Act's repeal date
 
 6 to June 30, 1993, and passed no subsequent legislation extending
 
 7 the sunset provision.  Thus, chapter 213E was repealed as of June
 
 8 30, 1993.
 
 9      The legislature recognizes the continued need for an
 
10 economic development project like the one in chapter 213E, which
 
11 will serve to strengthen and expand the state's economy and at
 
12 the same time benefit and educate employees in this state.
 
13 Therefore, it is the intent of this Act to re-enact the program
 
14 in chapter 213E as a new project of the department of business,
 
15 economic development and tourism.
 
16      SECTION 2.  Chapter 201, Hawaii Revised Statutes, is amended
 
17 by adding a new part to be appropriately designated and to read
 
18 as follows:
 

 
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 1      "PART   .  EMPLOYEE OWNERSHIP AND PARTICIPATION PROJECT
 
 2          -1  Policy.  It is the policy of the State to actively
 
 3 promote and support expanded ownership and participation in
 
 4 Hawaii businesses.
 
 5          -2  Definitions.  As used in this part, unless the
 
 6 context clearly indicates otherwise:
 
 7      "Employee-ownership" means a form of business organization
 
 8 which is either:
 
 9      (1)  A workers cooperative, within the meaning of subchapter
 
10           T (sections 1381 to 1388) (with respect to cooperatives
 
11           and their patrons) of Chapter 1 of the federal Internal
 
12           Revenue Code of 1954, as amended; or
 
13      (2)  A corporation in which the employees own stock of the
 
14           corporation through an employee ownership and
 
15           participation plan or other benefit plan which is
 
16           qualified by section 401 (with respect to qualified
 
17           pension profit-sharing, and stock bonus plans) of
 
18           Chapter 1 of the federal Internal Revenue Code of 1954,
 
19           as amended.
 
20      "Employee ownership and participation plan" means an
 
21 employee benefit plan which is qualified by the Internal Revenue
 
22 Service pursuant to section 401(a) of the federal Internal
 
23 Revenue Code of 1954, as amended, and which is intended to invest
 

 
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 1 primarily in employer securities, as defined by section 407(d)(1)
 
 2 of the Employee Retirement Income Security Act of 1974, as
 
 3 amended (P.L. 93-406).
 
 4         -3  Employee ownership and participation project.
 
 5      The department shall establish a project to support and
 
 6 encourage expanded opportunities for employee ownership and
 
 7 participation in Hawaii businesses.
 
 8         -4  Annual report.  Each state agency involved in
 
 9 economic development and regulatory activities shall annually
 
10 report to the legislature on steps taken to encourage employee
 
11 ownership and participation.  If no action has been taken,
 
12 explanation shall be made of the reasons therefor.
 
13         -5  Powers and duties of department.(a)  The
 
14 department shall assist owners and employees of Hawaii businesses
 
15 to encourage and increase employee ownership and participation by
 
16 providing technical assistance, information, or access to sources
 
17 of financing.
 
18      (b)  The department shall cooperate with state and federal
 
19 agencies and commercial lenders to assist Hawaii companies to
 
20 obtain loans for the purpose of increasing employee ownership and
 
21 participation.
 
22      (c)  The department shall:
 

 
 
 
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 1      (1)  Appoint an advisory committee on employee ownership and
 
 2           participation to assist the department in all matters
 
 3           relating to employee ownership, including education,
 
 4           technical assistance, research, promotion, and outreach
 
 5           efforts;
 
 6      (2)  Establish a promotional outreach program to publicize
 
 7           the opportunities inherent in employee ownership and
 
 8           participation and encourage and facilitate the
 
 9           participation of academicians and members of the
 
10           business and labor communities in the outreach program;
 
11      (3)  Initiate studies and secure statistical data or other
 
12           information, as necessary, and arrange for the exchange
 
13           of information among public agencies, private groups,
 
14           and individuals;
 
15      (4)  Provide educational and technical assistance to
 
16           businesses and individuals desiring to increase the
 
17           level of employee participation and ownership in Hawaii
 
18           businesses; and
 
19      (5)  Review state agency reports on efforts to encourage
 
20           employee ownership and participation, advise state
 
21           agencies on ways to further improve their efforts, and
 
22           coordinate agency employee ownership and participation
 
23           programs.
 

 
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 1      (d)  The department may:
 
 2      (1)  Without regard to chapters 76 and 77, employ, at
 
 3           pleasure dismiss, and fix the compensation for such
 
 4           persons as it finds necessary for the performance of
 
 5           its functions, whose duties shall include the arranging
 
 6           of conference, workshops, seminars, and other
 
 7           educational and outreach activities;
 
 8      (2)  Secure information from any executive agency of the
 
 9           State it deems necessary to carry out its functions;
 
10           and
 
11      (3)  Administer funds allocated for its work and accept,
 
12           disburse, and allocate funds which may become available
 
13           from other governmental and private sources; provided
 
14           that all the funds shall be disbursed or allocated in
 
15           compliance with this chapter and any other applicable
 
16           laws.
 
17         -6  Rules.  The department may adopt rules pursuant to
 
18 chapter 91 to implement this chapter.
 
19      SECTION 3.  If any provision of this Act or the application
 
20 thereof to any person or circumstance is held to be invalid, the
 
21 invalidity shall not affect other provisions or applications of
 

 
 
 
 
 
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 1 this Act which can be given effect without the invalid provisions
 
 2 or applications, and to this end the provisions of this Act are
 
 3 severable.
 
 4      SECTION 4.  This Act shall take effect upon its approval.
 
 5 
 
 6                           INTRODUCED BY:  _______________________