Bill to expand employee-ownership passed into law through veto override
Moving a business to an employee-ownership model leads to faster growth, better retirement savings and a more engaged workforce. Now, this model is poised to expand in Missouri thanks to a new law approved by the Missouri General Assembly.
Lawmakers have overridden Gov. Jay Nixon’s veto of House Bill 2030. The successful override means the bill will now become law. The new law will allow business owners to defer up to 50 percent of the taxes gained from the sale of stock to an employee stock ownership plan, often called an ESOP, as long as the company is more than 30 percent employee-owned.
The bill was sponsored by Rep. Denny Hoskins, a Republican from Warrensburg. Sen. Ryan Silvey, a Republican from Kansas City, handled the bill in the Senate. The veto override effort was supported by both Democrats and Republicans.
“Thriving Missouri companies like Burns & McDonnell illustrate the benefits of employee-ownership,” said Daniel P. Mehan, Missouri Chamber President and CEO. “Now that it is law in Missouri, House Bill 2030 will help ensure employee-ownership is a viable alternative when business owners decide to sell. Having more owners selling to their employees will help keep Missouri businesses locally-held and growing in our state. The Missouri Chamber strongly supported this effort and I’d like to thank Rep. Hoskins and our state lawmakers for finally pushing this bill across the finish line.”