2019 -- H 5769

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LC001838

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

     RELATING TO LABOR AND LABOR RELATIONS -- LOCAL OWNERSHIP

OPPORTUNITY ACT

     

     Introduced By: Representatives Blazejewski, Morin, O'Brien, Mendez, and Maldonado

     Date Introduced: February 27, 2019

     Referred To: House Small Business

     It is enacted by the General Assembly as follows:

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

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

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CHAPTER 58

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LOCAL OWNERSHIP OPPORTUNITY ACT

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     28-58-1. Short title.

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

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     28-58-2. Legislative purpose.

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

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

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to purchase a business, otherwise at risk of closure.

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     28-58-3. Definitions.

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     (a) "Employer," "plant closing," "mass layoff," "representative," "employment loss,"

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"unit of local government," and "part-time employee" means those terms as defined in 29

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U.S.C.A. 2101(a).

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

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employees worked or were suffered or permitted to work at the time the notice defined in ยง 28-

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58-4 was issued.

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     28-58-4. Notification to affected employees.

 

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

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

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

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

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

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

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business; and

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

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title 7.

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     (b) The department of labor and training or any designee thereof, shall make available to

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employees information, materials, and resources on the creation of worker's cooperatives as

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defined in chapter 6.2 of title 7.

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     (c) The department of labor and training shall provide access for business owners to

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information, and materials on the creation of worker's cooperatives under chapter 6.2 of title 7,

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and the conversion of a traditionally owned business to worker ownership.

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     28-58-5. Sale not compelled.

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

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employing business.

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     28-58-6. Regulations.

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     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.

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     28-58-7. Severability.

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

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

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

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

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

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

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to be severable.

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

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

     RELATING TO LABOR AND LABOR RELATIONS -- LOCAL OWNERSHIP

OPPORTUNITY ACT

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     This act would create a process that provides affected employees an opportunity to

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purchase the business that employs them, but is in danger of being sold or going out of business.

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     This act would take effect on September 1, 2019.

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