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SB 2744

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

2026 Regular Session Introduced by Jonathon Acosta and 3 co-sponsors

Rhode Island creates a 30-day window for employees to initiate purchase of a qualifying privately held business as a worker cooperative when the owner plans to sell.

05/07/2026 Senate voted to recommit to Senate Labor and Gaming
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Bill Summary · SB 2744

Summary of SB 2744 ( Rhode Island Opportunity for Employee Ownership Act )

What the bill does

SB 2744 establishes a framework to promote employee ownership by creating a process for current employees to have an opportunity to purchase a qualifying business as a worker cooperative when the owner decides to sell.

  • Effective date: January 1, 2027
  • Jurisdiction: Rhode Island, General Assembly

Main purpose and intent

  • To encourage employee-owned (worker cooperative) ownership by providing current employees with a defined window to initiate a sale/purchase process when a privately held, Rhode Island-based business is put up for sale.
  • To create awareness and access to resources that support starting, converting, or maintaining a worker-owned business.

Key provisions and changes

Definitions (Chapter 28-61)

  • Owner: The current owner(s) of a qualified business prior to sale.
  • Qualified business: A privately held Rhode Island business that:
    • Has operated in RI for at least one year and pays RI taxes.
    • Has at least three employees (excluding the owner) or an equivalent pass-through entity.
    • Meets small-business size standards per SBA 13 CFR § 121.201.
    • Is not publicly traded.
    • Is not an exempt business (situations like family transfers, death/medical needs, court orders, deployment, natural disasters, or other emergencies).
  • Worker cooperative business: Either a worker cooperative corporation (as per RI law) or an LLC/LLP where:
    • All worker-owners have voting rights in all decisions.
    • Profits are distributed based on patronage (labor contributed by each worker-owner).
  • Worker cooperative business resource list: A publicly accessible list (maintained by the RI Small Business Development Center or designee) of entities that can provide guidance and assistance for starting, converting, or maintaining an employee-owned business.

Notification requirements if a sale occurs (Section 28-61-2)

  • The business owner must notify all current full-time and part-time employees of the sale.
  • Notice must be posted prominently or distributed via an established electronic medium.
  • The notice must include:
    1. Date of notice.
    2. Intent to sell.
    3. A 30-day window for employees to initiate a process to purchase the business as a worker cooperative.
    4. Information about the worker cooperative resource list (and its URL).
    5. Any proposed sale price.

Additional requirements (Sections 28-61-3 and 28-61-4)

  • Notification of these requirements must be included in the worker cooperative resource list and communicated to potential qualifying businesses by the Rhode Island Commerce Corporation.
  • The Commerce Corporation may issue rules and regulations to implement the act.

Who would be affected

  • Owners of qualified, privately held Rhode Island businesses contemplating sale.
  • Current employees of those businesses (who would receive the 30-day window to initiate a potential worker-cooperative purchase).
  • Rhode Island entities involved in small business development and support (RI SBDC) and the RI Commerce Corporation, which would oversee resources, notifications, and regulatory guidance.

Procedural and timeline aspects

  • Effective date: January 1, 2027.
  • Upon owner’s decision to sell a qualified business, a mandatory employee notification period and 30-day exclusivity window for employee-initiated cooperative purchase processes.
  • Ongoing administration by the RI Commerce Corporation and maintenance of a public worker-cooperative resource list.

Notes

  • The bill defines specific eligibility criteria to ensure only suitable businesses are considered “qualified” for this process.
  • The act introduces procedural transparency around sales and links employees to potential ownership pathways through a defined resource network.

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

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