CHAPTER 35

FORMERLY

HOUSE BILL NO. 31

AN ACT TO REQUIRE AFFECTED STATE AGENCIES TO REPORT ANNUALLY THEIR EFFORTS TO COMPLY WITH THE POLICY OF THIS STATE TO ENCOURAGE EMPLOYEE STOCK OWNERSHIP PLANS.

WHEREAS, the Joint Economic Committee of the Congress of the United States has declared that broadening the ownership of capital should be a twin pillar of economic policy; and

WHEREAS, the General Assembly of the State of Delaware finds that Employee Stock Ownership Plans, as defined in the United States Internal Revenue Code, can make an important contribution toward the broadening of capital ownership; and

WHEREAS, the General Assembly of the State of Delaware further finds that Employee Stock Ownership Plans can: increase the income and financial security of its citizens and further assure their economic futures; Improve productivity and labor-management relations; contribute to the national effort to combat inflation, strengthen the free enterprise system; and put the State in the forefront of contemporary economic trends.

NOW, THEREFORE:

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Title 29, Section 6508, Delaware Code, by adding thereto a new subsection "(c)" to read as follows:

"It is the policy of this State to encourage the broadening of the base of capital ownership among wider numbers of Delaware citizens, and to encourage the use of employee stock ownership plans as one means of broadening the ownership of capital. The Department of Finance, Administrative Services, Community Affairs and Economic Development, State, Labor, the Insurance Commissioner, State Banking Commissioner, and Public Service Commissioner shall include a report of their efforts to implement those policies in their respective annual reports, as required by this section. State Agencies, Divisions, Commissions and Bureaus not specifically named in the preceding subsection are not exempt from adhering to policies as stated in this subsection. The departments specifically enumerated must include in their reports a discussion of which of their divisions are complying with this reporting requirement and an explanation of the reasons why the other Divisions are not so complying."

Approved June 22,1981.