AUGUSTA, Maine (WABI) - Many times when a business owner is retiring and doesn't have a buyer, a business can fold and people lose jobs.
A lawmaker is proposing a bill that could provide a possible solution: employee-owned businesses.
The bill, sponsored by Senate Majority Leader Nate Libby, D-Lewiston, would give a tax break to businesses for transitioning to employee-owned businesses.
Within these types of businesses, employees are allowed to buy stock in the business with their wages.
Supporters say there are many benefits to employee-owned businesses.
"The folks that I've talked to who are in these arrangements now, employee morale is much higher," said Libby. "Employees have a sense of ownership over the outcomes of decisions that they make. They are building wealth. They are building retirement for themselves. They are taking ownership in a company that they've invested a lot in."
The bill still faces votes in the House and Senate.