House Bill 1510 will allow for the formation of Benefit Corporations. This type of entity is a company that has a specified intent to benefit the public good as written in the Articles of Incorporation. The bill specifies the following public benefits:
(A) Providing low-income or underserved individuals or communities with beneficial products or services;
(B) Promoting economic opportunity for individuals or communities beyond the creation of jobs in the normal course of business;
(C) Preserving the environment;
(D) Improving human health;
(E) Promoting the arts, sciences, or advancement of knowledge;
(F) Increasing the flow of capital to entities with a public benefit purpose; and
(G) Conferring any other particular benefit on society or the environment;”
Note that several other states have Benefit Corporation legislation enacted, including California, Hawaii, Illinois, Maryland, Massachusetts, Louisiana, New Jersey, New York, Vermont and Virginia. Legislation has also been introduced and is pending in various other states.
