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SB 40

Economic and Community Development - As introduced, enacts the "Employee Ownership, Empowerment, and Expansion Act" to support the growth and expansion of employee-owned businesses. - Amends TCA Title 4; Title 8; Title 9; Title 12, Chapter 3; Title 45; Title 50; Title 56, Chapter 1 and Title 67.

114th Regular Session (2025-2026) Introduced by Page Walley

Withdrawn Tennessee bill would have amended eight state code sections to incentivize employee-owned business growth through tax, corporate, and regulatory changes.

Withdrawn.
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Bill Summary · SB 40

Legislative bill overview

SB 40 would have established the "Employee Ownership, Empowerment, and Expansion Act" to promote growth of employee-owned businesses in Tennessee through amendments across multiple state codes. The bill modified statutes covering corporate law, business organization, taxation, and other regulatory areas to create incentives or structural support for this business model.

Why is this important

Employee ownership models can affect workforce stability, wealth distribution, and business succession planning in Tennessee. The bill's broad jurisdictional reach across eight different title areas suggests comprehensive regulatory changes intended to address barriers to employee-owned business formation and expansion.

Potential points of contention

  • Tax implications: Amendments to Title 67 (taxation) likely create preferential treatment for employee-owned businesses, raising questions about revenue impact and fairness to other business structures
  • Regulatory complexity: Modifications across eight separate title areas could create compliance burdens or unintended interactions between different business law sections
  • Scope ambiguity: The bill's breadth without detailed specifications makes it unclear which specific barriers are being addressed or what incentives would actually apply

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

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