86R34428 KSM-F
By: Shine H.C.R. No. 179
CONCURRENT RESOLUTION
WHEREAS, Employee Stock Ownership Plans (ESOPs) are tax
qualified retirement plans authorized and encouraged by U.S. tax
and pension laws and commonly referred to as "employee-owned
companies"; and
WHEREAS, The National Center for Employee
Ownership estimates that there are approximately 11,300 employee
stock ownership plans for over 13 million employees in the United
States and that Texas is currently home to over 700 ESOPs; and
WHEREAS, A 2000 Rutgers study found that companies grow 2.3
to 2.4 percent faster after establishing an ESOP and that companies
that combine employee ownership with employee workplace
participation programs show even more substantial gains in
performance; and
WHEREAS, An ESOP is a powerful mechanism to vest employees in
the company and boost employee morale; such plans create an
opportunity for employees to share in company growth and
performance and give employees real ownership stakes, with high
potential to invigorate their contributions to the success of the
business; and
WHEREAS, ESOPs encourage corporate and economic growth,
reduce unemployment, increase job satisfaction, improve employee
retention, and foster entrepreneurialism, and they should be
heavily promoted in Texas; now, therefore, be it
RESOLVED, That the 86th Legislature of the State of Texas
hereby request the Governor's Office of Economic Development and
Tourism to conduct a study on the promotion of Employee Stock
Ownership Plans in Texas; and, be it further
RESOLVED, That the office be requested to submit a full
report, including findings and recommendations, to the 87th Texas
Legislature before it convenes in January 2021.