,,ii #aacth ,,congress #b;d ,session ,s4 #bdaa ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #b1 #bjad ,mr4 ,sanders 7for himself1 ,mr4 ,leahy1 and ,mr4 ,brown7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to provide for the establishment of the ,united ,states ,employee ,ownership ,bank1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,united ,states ,employee ,ownership ,bank ,act4 #b4 ,findings ,congress finds that-- 7#a7 between ,january #bjjj and ,april #bjad1 the manufacturing sector lost #e1ahc1jjj jobs2 7#b7 as of ,april #bjad1 only #ab1ajj1jjj workers in the ,united ,states were employed in the manufacturing sector1 lower than ,june #aida2 7#c7 at the end of #bjac1 the ,united ,states had a trade deficit of #dgd1hfd1jjj1jjj1 including a recordbreaking #cah1dag1bjj1jjj trade deficit with ,china2 7#d7 preserving and increasing decent paying jobs must be a top priority of ,congress2 7#e7 providing loan guarantees1 direct loans1 and technical assistance to employees to buy their own companies will preserve and increase employment in the ,united ,states2 and 7#f7 the time has come to establish the ,united ,states ,employee ,ownership ,bank to preserve and expand jobs in the ,united ,states through ,employee ,stock ,ownership ,plans and worker-owned cooperatives4 #c4 ,definitions ,in this ,act-- 7#a7 the term ,bank means the ,united ,states ,employee ,ownership ,bank1 established under section #d2 7#b7 the term eligible worker-owned cooperative has the same meaning as in section #ajdb7;c77#b7 of the ,internal ,revenue ,code of #aihf2 7#c7 the term employee stock ownership plan has the same meaning as in section #dige7;e77#g7 of the ,internal ,revenue ,code of #aihf2 and 7#d7 the term ,secretary means the ,secretary of the ,treasury4 #d4 ,establishment of ,united ,states ,employee ,ownership ,bank within the ,department of the ,treasury 7a7 ,establishment of ,bank 7#a7 ,in general ,before the end of the #ij-;day period beginning on the date of enactment of this ,act1 the ,secretary shall establish the ,united ,states ,employee ,ownership ,bank1 to foster increased employee ownership of ,united ,states companies and greater employee participation in company decisionmaking throughout the ,united ,states4 7#b7 ,organization of the ,bank 7,a7 ,management ,the ,secretary shall appoint a ,director to serve as the head of the ,bank1 who shall serve at the pleasure of the ,secretary4 7,b7 ,staff ,the ,director may select1 appoint1 employ1 and fix the compensation of such employees as are necessary to carry out the functions of the ,bank4 7b7 ,duties of ,bank ,the ,bank is authorized to provide loans1 on a direct or guaranteed basis1 which may be subordinated to the interests of all other creditors-- 7#a7 to purchase a company through an employee stock ownership plan or an eligible worker-owned cooperative1 which shall be at least #ea percent employee owned1 or will become at least #ea percent employee owned as a result of financial assistance from the ,bank2 7#b7 to allow a company that is less than #ea percent employee owned to become at least #ea percent employee owned2 7#c7 to allow a company that is already at least #ea percent employee owned to increase the level of employee ownership at the company2 and 7#d7 to allow a company that is already at least #ea percent employee owned to expand operations and increase or preserve employment4 7c7 ,preconditions ,before the ,bank makes any subordinated loan or guarantees a loan under subsection 7b77#a71 a business plan shall be submitted to the bank that-- 7#a7 shows that-- 7,a7 not less than #ea percent of all interests in the company is or will be owned or controlled by an employee stock ownership plan or eligible worker-owned cooperative2 7,b7 the board of directors of the company is or will be elected by shareholders on a one share to one vote basis or by members of the eligible worker-owned cooperative on a one member to one vote basis1 except that shares held by the employee stock ownership plan will be voted according to section #dji7;e7 of the ,internal ,revenue ,code of #aihf1 with participants providing voting instructions to the trustee of the employee stock ownership plan in accordance with the terms of the employee stock ownership plan and the requirements of that section #dji7;e72 and 7,c7 all employees will receive basic information about company progress and have the opportunity to participate in day-to-day operations2 and 7#b7 includes a feasibility study from an objective third party with a positive determination that the employee stock ownership plan or eligible worker-owned cooperative will generate enough of a margin to pay back any loan1 subordinated loan1 or loan guarantee that was made possible through the ,bank4 7d7 ,terms and conditions for loans and loan guarantees ,notwithstanding any other provision of law1 a loan that is provided or guaranteed under this section shall-- 7#a7 bear interest at an annual rate1 as determined by the ,secretary-- 7,a7 in the case of a direct loan under this ,act-- 7i7 sufficient to cover the cost of borrowing to the ,department of the ,treasury for obligations of comparable maturity2 or 7ii7 of #d percent2 and 7,b7 in the case of a loan guaranteed under this section1 in an amount that is equal to the current applicable market rate for a loan of comparable maturity2 and 7#b7 have a term not to exceed #ab years4 #e4 ,employee right of first refusal before plant or facility closing ,section #c of the ,worker ,adjustment and ,retraining ,notification ,act 7#bi ,u4,s4,c4 #bajb7 is amended-- 7#a7 in the section heading1 by adding at the end the following3 2 employee stock ownership plans or eligible worker-owned cooperatives2 and 7#b7 by adding at the end the following3 7e7 ,employee stock ownership plans and eligible worker-,owned cooperatives 7#a7 ,general rule ,if an employer orders a plant or facility closing in connection with the termination of its operations at such plant or facility1 the employer shall offer its employees an opportunity to purchase such plant or facility through an employee stock ownership plan 7as that term is defined in section #dige7;e77#g7 of the ,internal ,revenue ,code of #aihf7 or an eligible worker-owned cooperative 7as that term is defined in section #ajdb7;c77#b7 of the ,internal ,revenue ,code of #aihf7 that is at least #ea percent employee owned4 ,the value of the company which is to be the subject of such plan or cooperative shall be the fair market value of the plant or facility1 as determined by an appraisal by an independent third party jointly selected by the employer and the employees4 ,the cost of the appraisal may be shared evenly between the employer and the employees4 7#b7 ,exemptions ,paragraph 7#a7 shall not apply-- 7,a7 if an employer orders a plant closing1 but will retain the assets of such plant to continue or begin a business within the ,united ,states2 or 7,b7 if an employer orders a plant closing and such employer intends to continue the business conducted at such plant at another plant within the ,united ,states4 4 #f4 ,regulations on safety and soundness and preventing competition with commercial institutions ,before the end of the #ij-;day period beginning on the date of enactment of this ,act1 the ,secretary of the ,treasury shall prescribe such regulations as are necessary to implement this ,act and the amendments made by this ,act1 including-- 7#a7 regulations to ensure the safety and soundness of the ,bank2 and 7#b7 regulations to ensure that the ,bank will not compete with commercial financial institutions4 #g4 ,community reinvestment credit ,section #hjd of the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bijc7 is amended by adding at the end the following3 7e7 ,establishment of employee stock ownership plans and eligible worker-,owned cooperatives ,in assessing and taking into account1 under subsection 7a71 the record of a financial institution1 the appropriate ,federal financial supervisory agency may consider as a factor capital investments1 loans1 loan participation1 technical assistance1 financial advice1 grants1 and other ventures undertaken by the institution to support or enable employees to establish employee stock ownership plans or eligible worker-owned cooperatives 7as those terms are defined in sections #dige7;e77#g7 and #ajdb7;c77#b7 of the ,internal ,revenue ,code of #aihf1 respectively71 that are at least #ea percent employee owned plans or cooperatives4 4 #h4 ,authorization of appropriations ,there are authorized to be appropriated to the ,secretary to carry out this ,act1 #ejj1jjj1jjj for fiscal year #bjae1 and such sums as may be necessary for each fiscal year thereafter4