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Bill

HB 819

Procurement - Employee Stock Ownership Plan Preference - Pilot

2025 Regular Session Introduced by Tiffany Alston and 26 co-sponsors

Maryland directs state agencies to prefer Employee Stock Ownership Plan companies in procurement to incentivize worker ownership and pilot alternative business models.

Approved by the Governor - Chapter 737
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Bill Summary · HB 819

Legislative bill overview

HB 819 establishes a pilot program requiring Maryland state agencies to give preference to Employee Stock Ownership Plan (ESOP) companies when making procurement decisions. The bill allocates resources to identify, track, and prioritize businesses where employees have significant ownership stakes through ESOPs during the state's purchasing process.

Why is this important

This legislation aims to support worker ownership models and potentially strengthen employee financial participation in companies bidding for state contracts. The pilot program could influence how Maryland spends public money while testing whether procurement preferences can incentivize broader adoption of employee ownership structures across the private sector.

Potential points of contention

  • Cost implications: Preferential procurement may result in higher prices or reduced competition, potentially increasing state spending compared to open bidding processes
  • ESOP definition and verification: Questions about how agencies will define, verify, and measure ESOP eligibility, and whether small ESOPs receive equal preference as large ones
  • Market impact: Preference policies could disadvantage non-ESOP companies and small businesses unable to implement ownership structures, potentially limiting bidder pools and innovation

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

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