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Bill

HB 2047

Eliminating the Washington employee ownership program.

2025-2026 Regular Session Introduced by Mia Gregerson and 3 co-sponsors

Washington eliminates its employee ownership program, removing state support for converting businesses into worker-owned entities effective July 27, 2025.

Effective date 7/27/2025.
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Bill Summary · HB 2047

Legislative bill overview

HB 2047 eliminates Washington's employee ownership program, which previously provided state support for converting businesses into employee-owned entities. The bill repeals the statutory framework that enabled and promoted employee stock ownership plans (ESOPs) and similar worker ownership models in Washington state. This action became law on May 19, 2025, with an effective date of July 27, 2025.

Why is this important

Employee ownership programs represent one policy approach to wealth-building, business continuity, and worker engagement. Eliminating this program removes a state-level tool for incentivizing or facilitating worker ownership transitions, potentially affecting small business succession planning and worker participation in business equity. The repeal also signals a shift in state policy priorities regarding employee ownership as an economic development strategy.

Potential points of contention

  • Worker wealth-building impact: Supporters of worker ownership argue the program created pathways for employees to build equity; opponents may counter that market-driven business transitions are more efficient
  • Small business succession: Some business advocates may view this as eliminating helpful resources during ownership transitions, while fiscal conservatives may see it as reducing unnecessary state intervention
  • Program effectiveness data: Questions likely exist about whether the eliminated program was underutilized, cost-effective, or achieving measurable economic outcomes that justified its continuation

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

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