Legislative Report From Sen. Pat Ward: Help Iowa Workers Buy Into Employers’ Businesses

This week I submitted my resignation for Senate District 30 effective January 2013 and announced that I would be running for Senate District 22.

After redistricting, my current district was cut in half, so I made a decision that I would run for Senate District 22 and resign Senate District 30. I currently live in Clive, which is part of both districts, and will continue to represent my Clive, West Des Moines and Windsor Heights constituents in the Senate as I have for much of the last decade.

What do you think about proposed legislation providing financial incentives to business owners to sell their businesses to their employees rather than other buyers? Tell us in comments.

I look forward to continuing to serve the people of Windsor Heights, West Des Moines, Clive, and in the added community of Waukee.

Preserving Jobs Through Employee Ownership

 Job creation and economic expansion continue to be one of my top priorities in the Iowa Senate. A proven way to expand Iowa’s economy is through employee owned businesses.

Every community depends on their local businesses. Local businesses support other businesses, schools, and invest in community organizations. But, when a business owner decides to retire or to sell his or her company, it can lead to a very stressful time for both the employees and the community. Since finding a local buyer is oftentimes difficult, the business may be bought by an out-of-town or out-of-state company interested only in its assets, not keeping it operational.

I am supporting legislation to help retain jobs through Employee Stock Ownership Plans (ESOPs). This legislation keeps businesses in local communities by encouraging the formation of ESOPs. It allows the Iowa Economic Development Authority to assist businesses in the ESOP formation process and provides incentives for business owners to sell to their employees rather than other buyers.

ESOPs not only ensure jobs stay in Iowa, but the employees who take part in an Employee Stock Ownership Plan see other benefits as well. Employee owned businesses are many times more efficient and competitive in the market place often leading to growth and expansion. They are a great solution to keep our economy and our communities thriving.

I remain focused on putting Iowans back to work. I will continue to look at ways to encourage both job growth and retention throughout Iowa.

We have two more community forums scheduled. The Clive forum is on Saturday, Feb. 25, from 9:30 to 11:00 at the Walnut Ridge Senior Campus. The West Des Moines forum will be on Saturday, March 24. Everyone is welcome!

I am your voice at the State Capitol and look forward to your input. You can also reach me by calling the Capitol at (515) 281-3371 or emailing me at pat.ward@legis.iowa.gov. Your thoughts and concerns remain very important to me – it is truly an honor to serve you in the Iowa Senate.