2018 -- H 7799

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- DEPARTMENT OF LABOR AND

TRAINING

     Introduced By: Representatives Regunberg, Williams, O`Grady, Amore, and Handy

     Date Introduced: February 28, 2018

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 28 of the General Laws entitled "LABOR AND LABOR

RELATIONS" is hereby amended by adding thereto the following chapter:

CHAPTER 58

LOCAL OWNERSHIP OPPORTUNITY ACT

     28-58-1. Short title.

     This chapter shall be known and may be cited as the "Local Ownership Opportunity Act."

     28-58-2. Legislative purpose.

     The purpose of this legislation is to preserve jobs and create new opportunities for

economic growth and entrepreneurship in Rhode Island by providing opportunity for employees

affected by plant closings or mass layoffs to furnish competitive bids to purchase businesses

otherwise at risk of reducing workforce.

     28-58-3. Definitions.

     (a) "Employer," "plant closing," "mass layoff," "representative," "affected employees,"

"employment loss," "unit of local government," and "part-time employee" have the same

meanings as are defined in 29 U.S.C.A. 2101(a).

     (b) "Employing business" means the entity for which the affected employees worked or

were suffered or permitted to work at the time the notice defined in § 28-58-4 was issued.

     28-58-4. Notification to affected employees.

     (a) Whenever an employer is required by the Worker Adjustment and Retraining

Notification Act (WARN Act), 29 U.S.C.A. Chapter 23, to provide advance notice of a plant

closing or mass layoff, the director of the department of labor and training, or any designee

thereof, shall provide to the affected employees or the representative of the affected employees

written notice consisting of, but not limited to, the following:

     (1) Notice of the affected employees' right to furnish a bid to purchase the employing

business;

     (2) Information regarding the formation of a workers' cooperative under chapter 6.2 of

title 7; and

     (3) Materials explaining the right to conduct an election to determine whether to pursue

the purchase of the employing business.

     28-58-5. Election by affected employees.

     (a) Upon receipt of the notice provided by the director of labor and training, or designee,

the affected employees, or their representative, shall determine, by means of election, within

thirty (30) days, whether to pursue the preparation of a bid to purchase the employing business.

     (b) Election to pursue purchase of the employing entity shall be evidenced by writings

attesting to the employee's desire to pursue purchase, provided that each writing contain an

original signature of an affected employee and the total number of writing exceeds fifty percent

(50%) of the total affected employees.

     (c) Upon election to proceed, those affected employees who wish to participate in the

purchase bid shall enter into a formal, written agreement to proceed.

     28-58-6. Restructuring of business.

     Whenever a purchase of the employing entity is successfully completed, membership

shares and compensation shall be set by the terms of the articles of incorporation and bylaws of

the newly formed worker cooperative organized under chapter 6.2 of title 7.

     28-58-7. Obligation to employees not participating in purchase.

     In the event that the employing entity is purchased by the affected workers who have

entered into the formal agreement, the purchasing entity shall have the same obligations to any

employees who elected not to participate in the purchase as any other successor in interest.

     28-58-8. Sale not compelled.

     Nothing in this chapter shall be construed as compelling a sale by the employing

business.

     28-58-9. Regulations.

     The department of labor and training shall coordinate implementation and enforcement of

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this chapter and may promulgate appropriate guidelines or regulations for such purposes.

     28-58-10. Severability.

     If any provision of this chapter or any rule or regulation created under this chapter, or the

application of any provision of this chapter to any person or circumstance shall be held invalid in

any court of competent jurisdiction, the remainder of the chapter, rule, or regulation and the

application of such provision to other persons or circumstances shall not be affected thereby. The

invalidity of any section or sections or parts of any section of this chapter shall not affect the

validity of the remainder of this chapter and to this end the provisions of the chapter are declared

to be severable.

     SECTION 2. This act shall take effect on January 1, 2019.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- DEPARTMENT OF LABOR AND

TRAINING

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     This act would provide an opportunity for employees affected by plant closings or mass

layoffs to furnish competitive bids to purchase businesses otherwise at risk of reducing

workforce.

     This act would take effect on January 1, 2019.

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