H. Con. Res. 333: Expressing continued support for employee stock ownership plans

Posted by Aaron Juckett, CPA, CPC, QPA, QKA on Mon, Apr 28, 2008
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Rep. Maurice Hinchey [D-NY] introduced H. Con. Res. 333: Expressing continued support for employee stock ownership plans on April 24, 2008. The bill is cosponsored by Rep. Dana Rohrabacher [R-CA] and has been referred to the House Committee on Education and Labor. Here is the text of the legislation:

HCON 333 IH

110th CONGRESS

2d Session

H. CON. RES. 333

Expressing continued support for employee stock ownership plans.

IN THE HOUSE OF REPRESENTATIVES

April 24, 2008

Mr. HINCHEY (for himself and Mr. ROHRABACHER) submitted the following concurrent resolution; which was referred to the Committee on Education and Labor

CONCURRENT RESOLUTION

Expressing continued support for employee stock ownership plans.

Whereas in the Employee Retirement Income Security Act of 1974, Congress codified a technique of corporate finance which utilizes employee stock ownership, officially named an employee stock ownership plan (ESOP);

Whereas in the 33 years since the statutory recognition of ESOPs, there have been ample data collected by objective research indicating that the vast majority of corporations sponsoring employee stock ownership through ESOPs are high performing companies that, among other indicia of high performing companies, have better sales, are more sustainable, pay better, and provide more retirement savings compared to similar companies that are not employee-owned; and

Whereas Congress, in more than 15 laws since 1974, has made it explicit that ESOPs are to serve the dual purpose of providing retirement savings and stock ownership for employees, as well as being a financing technique for corporations: Now, therefore, be it

Resolved by the House of Representatives (the Senate concurring), That Congress expresses its continued support for employee stock ownership plans.

The ESOP Association has issued a press release applauding the resolution:

J. Michael Keeling, President of The ESOP Association, had this to say about the Resolution: "I welcome the bi-partisan efforts of Congressman Maurice Hinchey (D-NY) and Congressman Dana Rohrabacher (R-CA). The leadership of these House senior members to reiterate the thirty plus years of support for employee ownership through ESOPs is important. Clearly, change is in the wind but a commitment by Congress to a fair and more equitable form of ownership is as important in the 21st century as in the 20th. On behalf of the 2,500 plus members of The ESOP Association, I urge all members of Congress to co-sponsor this resolution. Research has consistently shown that employee owned companies are high performing, have better sales, and provide more retirement savings compared to their non-ESOP counterparts."

Updates:

  • H. Con Res 333 Update – Five Co-Sponsors (6/8/08) - There are currently five co-sponsors to H. Con. Res. 333: Expressing continued support for employee stock ownership plans, which was introduced by Rep Hinchey, Maurice D. [NY-22] on 4/24/2008:

    Rep Rohrabacher, Dana [CA-46] - 4/24/2008
    Rep Thompson, Mike [CA-1] - 4/30/2008
    Rep Jones, Walter B., Jr. [NC-3] - 5/15/2008
    Rep McCrery, Jim [LA-4] - 5/15/2008
    Rep Walz, Timothy J. [MN-1] - 5/15/2008

  • Employee-Owned Top Small Workplaces, IEI, HR 333, and Broad-Based Equity Grants (5/16/08) - "Maurice Hinchey (D-NY) and Dana Rohrabacher (R-CA) have introduced House Concurrent Resolution 333, which states, "Congress expresses its continued support for employee stock ownership plans." The resolution notes that "there have been ample data collected by objective research indicating that the vast majority of corporations sponsoring employee stock ownership through ESOPs are high performing companies that, among other indicia of high performing companies, have better sales, are more sustainable, pay better, and provide more retirement savings compared to similar companies that are not employee-owned." Hinchey is one of the more liberal members of Congress and Rohrabacher one of the most conservative."

Topics: legislation, Information Page, ESOP, employee stock ownership plan

Aaron Juckett, CPA, CPC, QPA, QKA
Written by Aaron Juckett, CPA, CPC, QPA, QKA

Aaron is President and Founder of ESOP Partners and provides implementation, administration, and consulting services to hundreds of companies. He is a member of The ESOP Association (TEA) and the National Center for Employee Ownership (NCEO).

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