FRANKFORT — Representative Jerry T. Miller, R-Eastwood, pre-filed legislation Friday to establish Public Benefit Corporations (PBC) in Kentucky. Enacted in 30 other states, PBC’s are a powerful economic development tool not only to promote small business, but to attract capital to the Commonwealth.
“If we are to transform Kentucky into the best version of itself, we must be innovative,” said Rep. Miller. “Public Benefit Corporation legislation provides a powerful new tool to attract capital and investment that will help small businesses. This new for-profit business form is especially attractive to Millennials, who will make up over half the U.S. workforce by 2020.”
PBC’s operate with business models that have a positive impact in their communities. Specifically, PBC’s identify needs within their communities and develop a profitable business model around addressing those needs through a product or service. Recognizing PBC’s as legal entities in Kentucky also provides Corporate Boards protection from legal action as they enact mission-driven business models. Currently, this protection is denied from such corporations, as they are solely responsible for maximizing shareholder returns.
“Public Benefit Corporations will unleash a new vibrant entrepreneurial energy upon a whole host of societal problems,” said Kent Oyler, President and CEO of GLI. “Entrepreneurial ingenuity, paired with billions of dollars in available capital to B Corps, creates an incredible opportunity for the Commonwealth in the immediate future.”
The proposed legislation would also allow an organization’s mission to survive ownership changes and reorganizations, while protecting its shareholders. PBC legislation takes an important first step to attract new businesses while also creating an environment where existing businesses can adopt the PBC model and attract younger talent to Kentucky.
“Public Benefit Corporations are an innovative type of company that will attract new talent, create new jobs, and positively impact our communities,” said Scott Koloms, President of Facilities Management Services Inc. “Entrepreneurs, myself included, want to start these kinds of socially conscientious companies and there are billions of dollars in available investment looking to support them.”
B.R. 358 has been pre-filed for the 2017 Regular Session, which begins in January.