§ 12100.32. — 12100.32. (Added by Stats. 2022, Ch. 733, Sec. 1.)

California § 12100.32.

• Jurisdiction: California
• Code GOV: Government Code - GOV
• Div.: 3.
• Title 2.: DIVISION 3. EXECUTIVE DEPARTMENT
• Part 2.: PART 2. CONSTITUTIONAL OFFICERS
• Ch. 1.6.: CHAPTER 1.6. Governor’s Office of Business and Economic Development
• Art. 6.6.: ARTICLE 6.6. California Employee Ownership Act

Text

For purposes of this article, the following definitions apply:
(a)
“Advocate” means the Small Business Advocate.
(b)
“Broad-based employee ownership vehicle” means any of the following:
(1)
An employee-owned corporation, as that term is defined in subdivision (c) of Section 91502.1.
(2)
An eligible worker-owned
cooperative, as defined in subdivision (e).
(3)
A business wherein the majority of stock is owned by an employee stock ownership plan, as defined in subdivision (f), or by another trust on behalf of the company’s employees.
(4)
A business wherein the
majority of which is owned by a trust that has the purposes of creating employee ownership and of promoting the financial and nonfinancial interests of all employees.
(5)
A “worker cooperative” or “employment cooperative,” as defined in subdivision (k).
(6)
A member-owned organization that includes workers as members and where the voting interest or stock is held by members, and the majority of the governing body is elected by the members on the basis of one vote per member.
(c)
“California capital programs” means state programs offering capital assistance to
businesses, including, but not limited to, the Small Business Loan Guarantee Program, the State Small Business Credit Initiative, the California Rebuilding Fund, and the California Capital Access Program.
(d)
“CalOSBA” or “office” means the Office of Small Business Advocate within the Governor’s Office of Business and Economic Development.
(e)
“Eligible worker-owned cooperative” has the same definition as that term is defined in paragraph (2) of subsection (c) of Section 1042 of the Internal Revenue Code, as that provision read on January 1, 2022.
(f)
“Employee stock ownership plan” or “ESOP” has the same definition as that term is defined in paragraph (7) of subsection (e) of Section 4975 of the Internal Revenue Code,
as that provision read on January 1, 2022.
(g)
“Employee ownership transition” means the process of a business entering a broad-based employee ownership vehicle.
(h)
“Feasibility assessment” means a financial assessment of a company’s debt capacity and other factors that will determine viable employee ownership transition scenarios.
(i)
“Independent ESOP trustee” means an ESOP trustee that is unrelated to the company, its officers, and its shareholders, and is in the business of serving as an ESOP fiduciary.
(j)
“Manager” means the Employee Ownership Hub Manager.
(k)
“Worker cooperative” or “employment cooperative” has the same definition as those terms are defined in Section 12253.5 of the Corporations Code.

Legislative History

Added by Stats. 2022, Ch. 733, Sec. 1. (SB 1407) Effective January 1, 2023.