FRANKFORT, Ky. (AP) — The Kentucky House has passed a bill to allow the formation of benefit corporations — a new class of companies focusing on social progress as well as profits.
The measure cleared the House on a 58-34 vote Tuesday and goes to the Senate.
Democratic Rep. Kelly Flood of Lexington says her bill seeks to have Kentucky join other states in recognizing benefit corporations.
Benefit corporations are intended to allow a portion of a company's profit to be used for social purposes.
Flood says benefit corporations would function within Kentucky corporate law, with additional features. She says such entities would identify a three-pronged commitment to social, environmental and shareholder value.
Skeptics of the proposal said most existing corporations already serve a public benefit.
The legislation is House Bill 66.