Dietz proposes legislation for employee ownership in Kentucky small businesses
Frankfort, Kentucky (October 16, 2026) – On October 15, 2026, Representative Stephanie Dietz (R-Edgewood) joined the Northern Kentucky Chamber of Commerce for a presentation to the Interim Joint Committee on Economic Development and Workforce Investment. They presented on proposed legislation that would encourage and enable Kentucky small businesses to incorporate employee stock ownership plans (ESOPs).
“Employee ownership is an innovative way for Kentucky business owners to establish a succession plan for when they decide to retire or transition out of their ownership role,” said Dietz. “It also enables employees to become an owner themselves and creates meaningful wealth building opportunities.”
Dietz proposed legislation has three main components: authorize a revolving loan fund for ESOPs, establish an advisory commission on employee ownership, and create a Director of Employee Ownership within the Cabinet of Economic Development. Accessing capital for company investments is one of the bigger barriers for employee ownership, hence the creation of a revolving loan fund within the Kentucky Economic Development Finance Authority. The advisory commission would consist of relevant stakeholders that would suggest policy and provide guidance to support employee-owned businesses. Finally, the Director of Employee Ownership would work with business owners, employees, lenders, economic developers, and local governments to successfully implement ESOPs in communities across the Commonwealth.
“Too often, when private business owners move towards retirement, the businesses are sold to out of state buyers or are forced to close their doors,” said Dietz. “Employee ownership keeps business rooted in our communities, protects jobs, and can prevent corporate buy-outs from wrecking our communities.”
The 2027 Regular Session begins in January, and Representative Dietz plans to bring this bill to the House of Representatives for consideration. For more information on Representative Dietz and the upcoming legislative session, please visit legislature.ky.gov.
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