Texas 2023 - 88th Regular

Texas Senate Bill SB1233 Compare Versions

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Version 2 (New)

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1	1	88R7386 JES-F
2	2	By: Flores S.B. No. 1233
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to companies in which employees have ownership interests
8	8	through employee stock ownership plans.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 301.004, Business Organizations Code, is
11	11	amended to read as follows:
12	12	Sec. 301.004. AUTHORIZED PERSON. For purposes of this
13	13	title, a person is an authorized person with respect to:
14	14	(1) a professional association if the person is a
15	15	professional individual; [and]
16	16	(2) a [professional corporation or a] professional
17	17	limited liability company if the person is a professional
18	18	individual or professional organization; and
19	19	(3) a professional corporation if the person is:
20	20	(A) a professional individual;
21	21	(B) a professional organization; or
22	22	(C) an employee stock ownership plan, as
23	23	described by Section 303.0015, established by the corporation.
24	24	SECTION 2. Chapter 303, Business Organizations Code, is
25	25	amended by adding Section 303.0015 to read as follows:
26	26	Sec. 303.0015. AUTHORIZED PERSON: EMPLOYEE STOCK OWNERSHIP
27	27	PLAN. For purposes of this chapter, an employee stock ownership
28	28	plan, as defined by Section 4975(e) of the Internal Revenue Code of
29	29	1986 (26 U.S.C. Section 4975(e)), established by a professional
30	30	corporation, is an authorized person if:
31	31	(1) all of the voting trustees of the plan are
32	32	professional individuals who are licensed to provide at least one
33	33	category of the professional services described in the
34	34	corporation's certificate of formation; and
35	35	(2) the ownership interests in the plan are not
36	36	directly issued to any person other than the plan trust or a
37	37	professional individual licensed to provide at least one category
38	38	of the professional services described in the corporation's
39	39	certificate of formation.
40	40	SECTION 3. Subchapter B, Chapter 481, Government Code, is
41	41	amended by adding Section 481.030 to read as follows:
42	42	Sec. 481.030. ESTABLISHMENT OF EMPLOYEE OWNERSHIP
43	43	ASSISTANCE WEBSITE. The office shall establish and maintain an
44	44	Internet website for employee-owned company information to serve as
45	45	a source of:
46	46	(1) outreach and information dissemination for
47	47	fostering increased awareness of employee stock ownership plans;
48	48	and
49	49	(2) technical assistance to assist businesses in
50	50	determining the feasibility of establishing an employee stock
51	51	ownership plan.
52	52	SECTION 4. Subchapter B, Chapter 2161, Government Code, is
53	53	amended by adding Section 2161.0611 to read as follows:
54	54	Sec. 2161.0611. RETENTION OF STATUS AS HISTORICALLY
55	55	UNDERUTILIZED BUSINESS. (a) In this section, "employee stock
56	56	ownership plan" has the meaning assigned by Section 4975(e),
57	57	Internal Revenue Code of 1986 (26 U.S.C. Section 4975(e)).
58	58	(b) Notwithstanding any other law, a historically
59	59	underutilized business that establishes an employee stock
60	60	ownership plan retains the business's status as a historically
61	61	underutilized business after the business establishes the plan if a
62	62	majority of members of the board of directors of the business are
63	63	economically disadvantaged persons.
64	64	(c) If a business described by Section 2161.001(2) is
65	65	certified as a historically underutilized business and the business
66	66	establishes an employee stock ownership plan that causes the
67	67	business to lose status as a historically underutilized business or
68	68	eligibility for recertification as a historically underutilized
69	69	business, the business retains that status or eligibility for a
70	70	period of not more than 10 years after the date the business
71	71	establishes the plan.
72	72	SECTION 5. This Act takes effect September 1, 2023.