Bill Positions

Bill Number: SB 820

Bill Title: Employee Opportunity to Purchase Act

Bill Sponsor(s): Sen. Harrington

Subject: Commercial Law

Committee: FIN

Bill Summary: This bill would have required an owner of any Maryland business with more than 5 employees to offer the business for sale to the employees at a reasonable market price prior to selling, closing or relocating the business out of state. Employees would have had 60 days to respond to the offer through an employee stock ownership plan. The ability of any other person to purchase the business would have been conditional on the employees exercising their rights.

History: The Chamber has opposed other legislation in recent years that would require business owners to offer a right of first refusal to other persons prior to the sale of a business. In 2009 SB 820 received an unfavorable report from the Finance Committee.

Chamber Position: Oppose

Position Summary: The MD Chamber opposed this bill as an unprecedented violation of the rights of property owners. The right of first refusal is a valuable property right that the state should not legislate away without compensation. As property owners, businesses have the right to convey their property to a buyer of their choice. Businesses should not have property sales tied up with contingencies of a mandated sale to employees that could drag on indefinately.

Position Statement: Click here (pdf)

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.