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HB 7964

AN ACT RELATING TO LABOR AND LABOR RELATIONS -- THE RHODE ISLAND OPPORTUNITY FOR EMPLOYEE OWNERSHIP ACT

2026 Regular Session Introduced by Megan Cotter and 9 co-sponsors

Rhode Island bill establishes incentives and support structures for employees to purchase and own their employers' businesses through favorable financing or tax treatment.

03/26/2026 Scheduled for hearing and/or consideration (03/30/2026)
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Bill Summary · HB 7964

Legislative bill overview

HB 7964, the Rhode Island Opportunity for Employee Ownership Act, establishes a framework to facilitate and incentivize employee ownership of businesses in Rhode Island. The bill likely includes provisions for financial support, tax incentives, technical assistance, or legal structures that make it easier for employees to purchase and own their companies.

Why is this important

Employee ownership models can affect job retention, wealth-building for workers, and business succession planning, particularly as aging business owners retire. The policy reflects a growing national interest in alternative business structures that distribute ownership stakes to workers rather than concentrating them among external investors or executives.

Potential points of contention

  • Cost to the state: Tax incentives or direct financial support for employee buyouts could reduce state revenue or require budget allocation that competes with other priorities
  • Business complexity: Creating new legal structures or requirements may impose compliance burdens on small businesses attempting to transition to employee ownership
  • Equity of access: Questions about whether programs will effectively reach underrepresented groups and whether all types of businesses (not just profitable ones) can realistically transition to employee ownership models

Compiled from official sources — confirm details with the bill’s official record.

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