Skip to Content
April 16, 2026 Rain | 61°F
The 194th General Court of the Commonwealth of Massachusetts

Bill S.305 194th (Current)

An Act promoting entrepreneurship through employee ownership

By Mr. Mark, a petition (accompanied by bill, Senate, No. 305) of Paul W. Mark and Julian Cyr for legislation to encourage businesses to give their employees a stake in the company, often through stock options or Employee Stock Ownership. Economic Development and Emerging Technologies.

View Text Print Preview Download PDF

Bill Information

Presenter:
Paul W. Mark

promoting employee ownership in business exits

This bill establishes provisions for transitioning small privately-held businesses in Massachusetts to employee ownership. It requires owners of qualified businesses who intend to sell their business or a majority stake to notify employees within seven days of their decision and provide access to resources from the Massachusetts Center for Employee Ownership. Employees have the right to form a Qualified Employee Group (QEG) to compete for the purchase of the business, with a 30-day period to signal interest and 180 days to negotiate terms and valuation. If a QEG matches or exceeds other good-faith offers, the owner must sell to the QEG. Upon a successful sale, owners are exempt from state capital gains tax on sale gains up to $1 million. The bill enforces democratic governance of employee-owned businesses, continuation of existing union agreements, and protections against external control, while providing recourse for employees in cases of non-compliance.
* The bill summary was created by the Primary Sponsor of the bill; no committee of the General Court certifies the accuracy of its contents.

The information contained in this website is for general information purposes only. The General Court provides this information as a public service and while we endeavor to keep the data accurate and current to the best of our ability, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.