Vermont S 88: An act relating to insurance, banking, and securities

Bill Text

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S.88 1
Introduced by Senators Harrison, Brock, Clarkson, Major, Plunkett, Watson 2
and White 3
Referred to Committee on 4
Date: 5
Subject: Taxation and finance; Vermont Employment Growth Incentive 6
Program 7
Statement of purpose of bill as introduced: This bill proposes to create a new 8
enhanced incentive for locally owned and controlled employee-owned 9
businesses within the Vermont Employment Growth Incentive Program 10
(VEGI). 11
An act relating to creating an enhanced growth incentive for employee-12
owned businesses 13
It is hereby enacted by the General Assembly of the State of Vermont: 14
Sec. 1. 32 V.S.A. chapter 105, subchapter 2 is amended to read: 15
Subchapter 2. Vermont Employment Growth Incentive Program 16
§ 3330. PURPOSE; FORM OF INCENTIVES; ENHANCED INCENTIVES; 17
ELIGIBLE APPLICANT 18
* * * 19

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(b) Form of incentives; enhanced incentives. 1
(1) The Vermont Economic Progress Council may approve an incentive 2
under this subchapter in the form of a direct cash payment in annual 3
installments. 4
(2) The Council may approve the following enhanced incentives: 5
(A) an enhanced incentive for a business in a labor market area with 6
higher than average unemployment or lower than average wages pursuant to 7
section 3334 of this title; and 8
(B) an enhanced incentive for an environmental technology business 9
pursuant to section 3335 of this title.; and 10
(C) [Repealed.] 11
(D) an enhanced incentive for an employee-owned business pursuant 12
to section 3335a of this title. 13
* * * 14
§ 3331. DEFINITIONS 15
* * * 16
(9) “Qualifying job” means a new, permanent position in Vermont that 17
meets each of the following criteria: 18
(A) The position is filled by: 19
(i) a non-owner employee who regularly works at least 35 hours 20
each week; or 21

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(ii) an employee of an employee-owned business, pursuant to 1
section 3335a of this title, who regularly works at least 35 hours each week. 2
* * * 3
§ 3333. CALCULATING THE VALUE OF AN INCENTIVE 4
Except as otherwise provided for an enhanced incentive for a business in a 5
qualifying labor market area under pursuant to section 3334 of this title or, an 6
enhanced incentive for an environmental technology business under pursuant 7
to section 3335 of this title, or an enhanced incentive for an employee-owned 8
business pursuant to section 3335a of this title, the Council shall calculate the 9
value of an incentive for an award year as follows: 10
(1) Calculate new revenue growth. To calculate new revenue growth, 11
the Council shall use the cost-benefit model created pursuant to section 3326 12
of this title to determine the amount by which the new revenue generated by 13
the proposed economic activity to the State exceeds the costs of the activity to 14
the State. 15
(2) Calculate the business’s potential share of new revenue growth. 16
Except as otherwise provided for an environmental technology business in 17
pursuant to section 3335 of this title or an employee-owned business pursuant 18
to section 3335a of this title, to calculate the business’s potential share of new 19
revenue growth, the Council shall multiply the new revenue growth determined 20
under subdivision (1) of this subsection by 80 percent. 21

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* * * 1
§ 3335. ENHANCED INCENTIVE FOR ENVIRONMENTAL 2
TECHNOLOGY BUSINESS 3
* * * 4
§ 3335a. ENHANCED INCENTIVE FOR EMPLOYEE-OWNED 5
BUSINESSES 6
(a) As used in this section, “employee-owned business” means the 7
following: 8
(1) an “employee stock ownership plan,” which means an employee 9
stock ownership plan as defined in 26 U.S.C. § 4975(e)(7), as may be 10
amended; or 11
(2) a “worker cooperative,” which means: 12
(A) an eligible worker-owned cooperative as defined in 26 U.S.C. 13
§ 1042(c), as may be amended; 14
(B) a worker cooperative organized under 11 V.S.A. chapter 8; or 15
(C) an organization that meets the following criteria: 16
(i) employees of the organization constitute a majority of 17
its membership; 18
(ii) members of the organization hold a majority of the 19
voting power; 20

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(iii) members of the organization have the authority to elect a 1
majority of the board of directors on the basis of one person, one vote; and 2
(iv) the organization allocates a majority of its allocated earnings 3
and losses to members on the basis of: 4
(I) patronage; 5
(II) capital contributions; or 6
(III) a combination of subdivisions (I) and (II) of this 7
subdivision (2)(C)(iv); and 8
(3) seeks an incentive for economic activity in Vermont pursuant to this 9
subchapter. 10
(b) The Council shall consider and administer an application from an 11
employee-owned business pursuant to the provisions of this subchapter, except 12
that: 13
(1) the business