RE: Virginia

["Binns, David M." <dbinns@fed.org>]

Dan,

The Foundation and ACS participated as subcontractors to ESOP Services for
an assessment of the feasibility of privatizing certain operations currently
conducted by the Commonwealth of Virginia. The study identified several
entitities that could be privatized and outlined the practical steps that
would be necessary to do so. That was about six months ago. The legislature
has not yet acted on any of the provisions though there does seem to be
continuing interest in doing so. Al Roth at the Commonwealth Competition
Council could provide the most up to date information about the status of
developments.

David Binns

> -----Original Message-----
> From: Dan Bell [SMTP:dbell@kent.edu]
> Sent: Thursday, October 07, 1999 8:50 AM
> To:   EOpriv@cog.kent.edu
> Subject:      Re: Virginia
> 
> Fellow EOPRIVers:
> 
> Don Ward made reference to the Virginia government and
> ESOPs. I believe there has been some privatizing activity
> in Virginia, and an ESOP may have resulted from that.
> 
> As far as I know, state governments are not the type
> of corporation which sells shares of itself, so some
> of the story probably got distorted. I would guess a
> service which was previously provided by the state
> government is now being provided by a newly created
> private company and that part of the ownership of that
> new company belongs to an ESOP.
> 
> On the other hand, I believe a state government can own
> shares of a private company. So, in theory, an ESOP and
> a state government could be co-shareholders of a private
> company which is providing a service formally provided
> by the state.
> 
> I do not have much direct knowledge of privatization in
> Virginia. My guess is a good source of information would
> be Alan Roth, Deputy Director, Commonwealth Competition
> Council, (804)786-0242, competition@state.va.us
> 
> Possibly David Binns of the Foundation for Enterprise
> Development would have some information as well.
> 
> --
> Dan Bell
> International Program Coordinator
> Ohio Employee Ownership Center
> Kent State University
> Kent, OH 44242
> (330) 672-3028
> (330) 672-4063 fax
> dbell@kent.edu
> http://www.kent.edu/oeoc/