LGC 11.46 — Worker-Owned Enterprises Act — PASSED

[ZMUN M441]

Worker-Owned Enterprises Act

to encourage the growth of worker-owned enterprises

Section I: Definitions

1. Cooperative: A cooperative, or co-op, is a type of business or organization that is both controlled and owned by its members, who may also utilize the goods and services of the cooperative.

2. Worker-Owned Enterprise: Also known as an employee-owned enterprise (EO), this is a company in which the workers have a stake in ownership and/or may be 100% owned and operated by workers.

Section II: LCEA

1. The Lincoln Cooperative Enterprises Agency is established.

a. This shall be an agency within the Lincoln Department of Business and Commerce responsible for aiding and assisting in the economic viability and persistence of cooperative and worker-owned enterprises. It shall aid, counsel, and protect, insofar as is possible, the interests of cooperative and worker-owned enterprise concerns.

2. The LCEA shall undergo an agency-wide directive within the first 120 days of this act's passage to -

a. Consider opportunities for relevant existing programs to support the growth of cooperative and employee-owned enterprises.
b. Develop a region-wide project to invest in the gradual process of transitioning existing small business to cooperative and employee-owned enterprises.
c. Establish a transition promotion program to offer educational resources and training to qualified small businesses.

3. The LCEA shall be empowered to provide loans to cooperative and worker-owned enterprises.

a. Borrowers must meet criteria set forth by the LCEA to be eligible to receive small business loans.
b. The LCEA may administer specialty loans related to natural disaster recovery.
i. Eligible borrowers may qualify for zero-interest specialty loans.
c. The total amount of any one loan cannot exceed $1M.
d. Additional loan types may be authorized if approved by the Lincoln Department of Business and Commerce.

4. The LCEA shall have a minimum budget of $750M per year.

Section III: Existing Programs and Clean-Up

1. L.C. 9.8: Lincoln Small Business Administration Act is hereby repealed in its entirety.

a. The responsibilities of the Lincoln Small Business Administration shall pass to the LCEA.
b. All concurrent loans administered by the Small Business Administration shall remain active under the authority of the LCEA until such time that the loan is repaid in full.
c. Grant and loan programs currently offered by the Small Business Administration may remain available for new borrowers if -
i. The prospective borrower (business) has an income below $50,000.
ii. The prospective borrower (business) is undergoing, or plans to undergo, a transition to a cooperative or worker-owned enterprise.

2. LGC 11.20: Consumer Protection Act is hereby repealed in its entirety.

a. Any businesses penalized for violation of the Consumer Protection Act shall have all charges dropped and penalties rescinded.

Section IV: Implementation

1. This act takes effect immediately upon signing by the Governor.

Occupying: Slot 6 of 10
Sponsor: Pyro

[Pyro]

Thank you, Speaker ZMUN.

This bill proposes the creation of a new regional agency, the LCEA, to oversee the growth of EOs and worker co-ops. This allows for the creation and expansion of worker-owned businesses throughout the region, while providing assistance to businesses seeking a transition to this more democratic model. More so, this bill fixes a few troubling drawbacks with LGC 11.20 by giving private businesses resources to transition to the worker co-op model instead of outlawing private businesses altogether.

[ZMUN M441]

Motioning for a final vote.

[ZMUN M441]

A final vote on this bill has been initiated.


Aye

[Vice President Christian Man]

Nay

[Pyro]

Aye

[nerd73]

Aye

[Senator-elect Spark]

Aye

[ZMUN M441]

LGC 11.46 passes, 4-1.

[Former President tack50]

X tack50