,,ii  #aaeth ,,congress  #ast ,session  
,s4 #aghh  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #aa1
 #bjag ,ms4 ,baldwin 7for herself and   
,mrs4 ,gillibrand7 introduced the       
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to encourage companies to   
expand employee ownership1 and for other
 purposes4  #a4 ,short title  ,this ,act
 may be cited as the ,worker ,owned     
,wealth ,act4  #b4 ,definition ,in this 
,act1 the term ,,esop means an employee 
stock ownership plan1 as defined in     
section #dige7;e77#g7 of the ,internal  
,revenue ,code of #aihf4  #c4 ,employee 
,ownership ,revolving ,loan funds  7a7  
,in general  ,the ,secretary of the     
,treasury shall establish in each field 
office in the ,department of the        
,treasury an ,employee ,ownership       
,revolving ,loan ,fund that makes--     
7#a7 low-interest loans to business     
owners seeking to establish employee    
ownership in the business2 and  7#b7    

loan guarantees to private lenders who  
make loans to ,e,s,o,ps4  7b7 ,staff    
7#a7 ,in general ,the ,secretary of the 
,treasury may1 without regard to the    
civil service laws 7including           
regulations71 appoint and terminate such
 personnel as may be necessary to enable
 the ,secretary to carry out this       
section4  7#b7 ,compensation ,the       
,secretary of the ,treasury may fix the 
compensation of personnel without regard
 to chapter #ea and subchapter ,,iii of 
chapter #ec of title #e1 ,united ,states
 ,code1 relating to classification of   
positions and ,general ,schedule pay    
rates1 except that the rate of pay for  
personnel may not exceed the rate       
payable for level ,v of the ,executive  
,schedule under section #ecaf of that   
title4  7c7 ,authorization of           
appropriations ,there is authorized to  
be appropriated #a1jjj1jjj1jjj to carry 
out this section4  #d4 ,exclusion of    
interest on loans used to acquire       
employer securities for employee stock  

ownership plans  7a7 ,in general ,part  
,,iii of subchapter ,b of chapter #a of 
the ,internal ,revenue ,code of #aihf is
 amended by inserting after section #acb
 the following new section3  #acc4      
,interest on certain loans used to      
acquire employer securities  7a7        
,allowance of exclusion  7#a7 ,in       
general ,except as provided in paragraph
 7#b71 gross income does not include the
 applicable percentage of the interest  
received by--  7,a7 a bank 7within the  
meaning of section #eha71  7,b7 an      
insurance company to which subchapter ,l
 applies1  7,c7 a corporation actively  
engaged in the business of lending      
money1 or  7,d7 a regulated investment  
company 7as defined in section #hea71   
with respect to a securities acquisition
 loan4  7#b7 ,annual limitation ,the    
aggregate amount of interest which may  
be excluded by a taxpayer under         
paragraph 7#a7 for any taxable year     
shall not exceed #bj1jjj1jjj4  7#c7     
,applicable percentage ,for purposes of 

this section-- 7,a7 ,in general ,except 
as provided in subparagraph 7,b71 the   
applicable percentage of a taxpayer with
 respect to any securities acquisition  
loan is #ej percent4  7,b7 ,lower       
percentages for larger financial        
institutions ,if1 for any taxable year  
in which a taxpayer enters into a       
securities acquisition loan-- 7i7 the   
average adjusted bases of all assets of 
the taxpayer are equal to or greater    
than #b1jjj1jjj1jjj but less than or    
equal to #aj1jjj1jjj1jjj1 the taxpayer's
 applicable percentage with respect to  
interest received by the taxpayer on    
such loan 7including any refinancing of 
such loan treated as a securities       
acquisition loan7 for such taxable year 
and any succeeding taxable year shall be
 #be percent1 and  7ii7 the average     
adjusted bases of all assets of the     
taxpayer are greater than               
#aj1jjj1jjj1jjj1 the taxpayer's         
applicable percentage with respect to   
interest received by the taxpayer on    

such loan 7including any refinancing of 
such loan treated as a securities       
acquisition loan7 for such taxable year 
and any succeeding taxable year shall be
 #aj percent4  7#d7 ,controlled group of
 corporations ,all members of a         
controlled group of corporations 7as    
defined in section #dji7l77#d77 shall be
 treated as #a taxpayer for purposes of 
applying paragraphs 7#b7 and 7#c74  7b7 
,securities acquisition loan  7#a7 ,in  
general ,for purposes of this section1  
the term securities acquisition loan    
means-- 7,a7 any loan to a corporation  
or to an employee stock ownership plan  
to the extent that the proceeds are used
 to acquire employer securities for the 
plan1 or  7,b7 any loan to a corporation
 to the extent that1 within #cj days1   
employer securities are transferred to  
the plan in an amount equal to the      
proceeds of such loan and such          
securities are allocable to accounts of 
plan participants within #a year of the 
date of such loan4  ,for purposes of    

this paragraph1 the term employer       
securities has the meaning given such   
term by section #dji7l74 ,the term      
securities acquisition loan shall not   
include a loan with a term greater than 
#ae years1 except that in the case of a 
securities acquisition loan which is a  
refinancing loan described in paragraph 
7#e71 such term may not extend beyond   
the last day of the original securities 
acquisition loan which such loan is     
refinancing4  7#b7 ,loans between       
related persons ,the term securities    
acquisition loan shall not include--    
7,a7 any loan made between corporations 
which are members of the same controlled
 group of corporations1 or  7,b7 any    
loan made between an employee stock     
ownership plan and any person that is-- 
7i7 the employer of any employees who   
are covered by the plan1 or  7ii7 a     
member of a controlled group of         
corporations which includes such        
employer4  ,for purposes of this        
paragraph1 subparagraphs 7,a7 and 7,b7  

shall not apply to any loan which1 but  
for such subparagraphs1 would be a      
securities acquisition loan if such loan
 was not originated by the employer of  
any employees who are covered by the    
plan or by any member of the controlled 
group of corporations which includes    
such employer1 except that this section 
shall not apply to any interest received
 on such loan during such time as such  
loan is held by such employer 7or any   
member of such controlled group74  7#c7 
,terms applicable to certain securities 
acquisition loans ,a loan to a          
corporation shall not fail to be treated
 as a securities acquisition loan merely
 because the proceeds of such loan are  
lent to an employee stock ownership plan
 sponsored by such corporation 7or by   
any member of the controlled group of   
corporations which includes such        
corporation7 if such loan includes--    
7,a7 repayment terms which are          
substantially similar to the terms of   
the loan of such corporation from a     

lender described in subsection 7a71 or  
7,b7 repayment terms providing for more 
rapid repayment of principal or interest
 on such loan1 but only if allocations  
under the plan attributable to such     
repayment do not discriminate in favor  
of highly compensated employees 7within 
the meaning of section #dad7q774  7#d7  
,controlled group of corporations ,for  
purposes of this subsection1 the term   
controlled group of corporations has the
 meaning given such term by section     
#dji7l77#d74  7#e7 ,treatment of        
refinancings ,the term securities       
acquisition loan shall include any loan 
which--  7,a7 is 7or is part of a series
 of loans7 used to refinance a loan     
described in subparagraph 7,a7 or 7,b7  
of paragraph 7#a71 and  7,b7 meets the  
requirements of paragraphs 7#b7 and     
7#c74  7#f7 ,plan requirements  7,a7 ,in
 general ,a loan shall not be treated as
 a securities acquisition loan for      
purposes of this section unless1        
immediately after the acquisition or    

transfer referred to in subparagraph    
7,a7 or 7,b7 of paragraph 7#a71         
respectively1 the employee stock        
ownership plan meets the requirements of
 subparagraphs 7,b7 and 7,c74  7,b7     
,plan must hold more than #e percent of 
stock after acquisition or transfer ,an 
employee stock ownership plan meets the 
requirements of this subparagraph if the
 plan owns more than #e percent of--    
7i7 each class of outstanding stock of  
the corporation issuing the employer    
securities1 or  7ii7 the total value of 
all outstanding stock of the            
corporation4  7,c7 ,plan must cover at  
least #ej percent of nonhighly          
compensated employees  7i7 ,in general  
,an employee stock ownership plan meets 
the requirements of this subparagraph if
 at least #ej percent of the employees  
of each employer maintaining the plan   
who are not highly compensated employees
 7as defined in section #dad7q77 are    
participants in the plan4  7ii7 ,certain
 employees may be excluded ,for purposes

 of clause 7i71 an employer may elect to
 exclude under the plan employees-- 7,i7
 who have not attained the age of #ba   
before the close of a plan year1  7,,ii7
 who have less than #a year of service  
with the employer as of any day during  
the plan year1  7,,iii7 who are covered 
under an agreement which the ,secretary 
of ,labor finds to be a collective      
bargaining agreement if there is        
evidence that the benefits covered under
 the employee stock ownership plan were 
the subject of good faith bargaining    
between employee representatives and the
 employer1 or  7,,iv7 who are described 
in section #daj7;b77#c77;,c7 7relating  
to nonresident aliens working outside   
the ,united ,states74  7,d7 ,failure to 
meet requirements  7i7 ,in general      
,subsection 7a7 shall not apply to any  
interest received with respect to a     
securities acquisition loan which is    
allocable to any period during which the
 employee stock ownership plan does not 
meet the requirements of subparagraphs  

7,b7 and 7,c74  7ii7 ,exception ,to the 
extent provided by the ,secretary1      
clause 7i7 shall not apply to any period
 if1 within #ij days of the first date  
on which the failure occurred 7or such  
longer period not in excess of #ahj days
 as the ,secretary may prescribe71 the  
plan takes such actions as are required 
to meet the requirements of             
subparagraphs 7,b7 and 7,c74  7,e7      
,stock ,for purposes of subparagraph    
7,b7-- 7i7 ,in general ,the term stock  
means stock other than stock described  
in section #aejd7;a77#d74  7ii7         
,treatment of certain rights ,the       
,secretary may provide that warrants1   
options1 contracts to acquire stock1    
convertible debt interests and other    
similar interests be treated as stock   
for #a or more purposes under           
subparagraph 7,b74  7,f7 ,aggregation   
rule ,for purposes of determining       
whether the requirements of subparagraph
 7,b7 are met1 an employee stock        
ownership plan shall be treated as      

owning stock in the corporation issuing 
the employer securities which is held by
 any other employee stock ownership plan
 which is maintained--  7i7 the employer
 maintaining the plan1 or  7ii7 any     
member of a controlled group of         
corporations 7within the meaning of     
section #dji7l77#d77 of which the       
employer described in clause 7i7 is a   
member4  7#g7 ,voting rights of employer
 securities ,a loan shall not be treated
 as a securities acquisition loan for   
purposes of this section unless-- 7,a7  
the employee stock ownership plan meets 
the requirements of section #dji7;e77#b7
 with respect to all employer securities
 acquired by1 or transferred to1 the    
plan in connection with such loan       
7without regard to whether or not the   
employer has a registration-type class  
of securities71 and  7,b7 no stock      
described in section #dji7l77#c7 is     
acquired by1 or transferred to1 the plan
 in connection with such loan unless--  
7i7 such stock has voting rights        

equivalent to the stock to which it may 
be converted1 and  7ii7 the requirements
 of subparagraph 7,a7 are met with      
respect to such voting rights4  7c7     
,employee stock ownership plan  7#a7 ,in
 general ,for purposes of this section1 
the term employee stock ownership plan  
has the meaning given to such term by   
section #dige7;e77#g74  7#b7 ,eligible  
worker-owned cooperatives included ,for 
purposes of this section and sections   
#digh;,b1 #fjdb1 and #ghgb1 such term   
shall also include an eligible          
worker-owned cooperative 7as defined in 
section #ajdb7;c774  7d7 ,application   
with section #dhc and original issue    
discount rules ,in applying section #dhc
 and subpart ,a of part ,v of subchapter
 ,p to any obligation to which this     
section applies1 appropriate adjustments
 shall be made to the applicable        
,federal rate to take into account the  
exclusion under subsection 7a74  7e7    
,period to which interest exclusion     
applies  7#a7 ,in general ,in the case  

of-- 7,a7 an original securities        
acquisition loan1 and  7,b7 any         
securities acquisition loan 7or series  
of such loans7 used to refinance the    
original securities acquisition loan1   
subsection 7a7 shall apply only to      
interest accruing during the excludable 
period with respect to the original     
securities acquisition loan4  7#b7      
,excludable period ,for purposes of this
 subsection1 the term excludable period 
means1 with respect to any original     
securities acquisition loan-- 7,a7 ,in  
general ,the #g-year period beginning on
 the date of such loan4  7,b7 ,loans    
described in subsection 7b77#a77;,a7 ,if
 the term of an original securities     
acquisition loan described in subsection
 7b77#a77;,a7 is greater than #g years1 
the term of such loan4 ,this            
subparagraph shall not apply to a loan  
described in subsection 7b77#c77;,b74   
7#c7 ,original securities acquisition   
loan ,for the purposes of this          
subsection1 the term original securities

 acquisition loan means a securities    
acquisition loan described in           
subparagraph 7,a7 or 7,b7 of subsection 
7b77#a74  4  7b7 ,conforming amendments 
7#a7 ,subparagraph 7,b7 of section      
#bia7;e77#a7 of the ,internal ,revenue  
,code of #aihf is amended by            
redesignating clause 7iv7 as clause 7v7 
and by inserting after clause 7iii7 the 
following new clause3  7iv7 ,special    
rules for obligations to which section  
#acc applies ,in the case of an         
obligation to which section #acc        
applies1 interest on such obligation    
shall not be treated as exempt from     
taxation for purposes of this           
subparagraph4  4  7#b7 ,section #hab of 
such ,code is amended by adding at the  
end the following3  7g7 ,treatment of   
,interest ,partially ,tax-,exempt ,under
 ,section #acc ,for purposes of this    
section and subsections 7a7 and 7b7 of  
section #hjg1 the terms gross investment
 income and tax-exempt interest shall   
not include any interest received with  

respect to a securities acquisition loan
 7as defined in section #acc7;b774 ,such
 interest shall not be included in life 
insurance gross income for purposes of  
subsection 7b77#c74  4  7#c7 ,paragraph 
7#e7 of section #heb7;b7 of such ,code  
is amended by adding at the end the     
following3  7,c7 ,interest on certain   
loans used to acquire employer          
securities ,for purposes of this        
section--  7i7 the applicable percentage
 7as defined in section #acc7;a77#c77 of
 the amount of any loan held by a       
regulated investment company which      
qualifies as a securities acquisition   
loan 7as defined in section #acc7 shall 
be treated as an obligation described in
 section #ajc7;a71 and  7ii7 such       
applicable percentage of the interest   
received on such loan shall be treated  
as interest excludable from gross income
 under section #ajc4  4  7#d7 ,paragraph
 7#b7 of section #digh7;b7 of such ,code
 is amended by striking subparagraphs   
7,a7 and 7,b7 and all that follows and  

inserting3  7,a7 first1 from section    
#acc securities 7as defined in section  
#digh;,b7e77#b77 acquired during the    
#c-year period ending on the date of    
such disposition1 beginning with the    
securities first so acquired1  7,b7     
second1 from section #acc securities 7as
 so defined7 acquired before such       
#c-year period unless such securities   
7or proceeds from the disposition7 have 
been allocated to accounts of           
participants or beneficiaries1  7,c7    
third1 from qualified securities to     
which section #ajdb applied acquired    
during the #c-year period ending on the 
date of the disposition1 beginning with 
the securities first so acquired1 and   
7,d7 then from any other employer       
securities4 ,if subsection 7d7 or       
section #digh;,b7d7 applies to a        
disposition1 the disposition shall be   
treated as made from employer securities
 in the opposite order of the preceding 
sentence4 4  7#e7 7,a7 ,chapter #dc of  
such ,code is amended by inserting      

before section #digi the following new  
section3  #digh;,b4 ,tax on disposition 
of employer securities to which section 
#acc applied  7a7 ,imposition of tax ,in
 the case of an employee stock ownership
 plan which has acquired section #acc   
securities1 there is hereby imposed a   
tax on each taxable event in an amount  
equal to the amount determined under    
subsection 7b74  7b7 ,amount of tax     
7#a7 ,in general ,the amount of the tax 
imposed by subsection 7a7 shall be equal
 to #aj percent of the amount realized  
on the disposition to the extent        
allocable to section #acc securities    
under section #digh7;b77#b74  7#b7      
,dispositions other than sales or       
exchanges ,for purposes of paragraph    
7#a71 in the case of a disposition of   
employer securities which is not a sale 
or exchange1 the amount realized on such
 disposition shall be the fair market   
value of such securities at the time of 
disposition4  7c7 ,taxable event ,for   
purposes of this section1 the term      

taxable event means any of the following
 dispositions3 7#a7 ,dispositions within
 #c years ,any disposition of any       
employer securities by an employee stock
 ownership plan within #c years after   
such plan acquired section #acc         
securities if--  7,a7 the total number  
of employer securities held by such plan
 after such disposition is less than the
 total number of employer securities    
held after such acquisition1 or  7,b7   
except to the extent provided in        
regulations1 the value of employer      
securities held by such plan after the  
disposition is #ej percent or less of   
the total value of all employer         
securities as of the time of the        
disposition4  ,for purposes of          
subparagraph 7,b71 the aggregation rule 
of section #acc7;b77#f77;,d7 shall      
apply4  7#b7 ,stock disposed of before  
allocation ,any disposition of section  
#acc securities to which paragraph 7#a7 
does not apply if-- 7,a7 such           
disposition occurs before such          

securities are allocated to accounts of 
participants or their beneficiaries1 and
  7,b7 the proceeds from such           
disposition are not so allocated4  7d7  
,section not ,to apply to certain       
dispositions  7#a7 ,in general ,this    
section shall not apply to any          
disposition described in paragraph 7#a71
 7#c71 or 7#d7 of section #digh7;d74    
7#b7 ,certain reorganizations ,for      
purposes of this section1 any exchange  
of section #acc securities for employer 
securities of another corporation in any
 reorganization described in section    
#cfh7;a77#a7 shall not be treated as a  
disposition1 but the employer securities
 received shall be treated as section   
#acc securities and as having been held 
by the plan during the period the       
securities which were exchanged were    
held4  7#c7 ,forced disposition         
occurring by operation of state law ,any
 forced disposition of section #acc     
securities by an employee stock         
ownership plan occurring by operation of

 a ,state law shall not be treated as a 
disposition4 ,this paragraph shall only 
apply to securities which1 at the time  
the securities were acquired by the     
plan1 were regularly traded on an       
established securities market4  7#d7    
,coordination with other taxes ,this    
section shall not apply to any          
disposition which is subject to tax     
under section #digh or section #digh;,a 
7as in effect on the day before its     
repeal74  7e7 ,definitions and special  
rules ,for purposes of this section--   
7#a7 ,liability for payment of taxes    
,the tax imposed by this section shall  
be paid by the employer4  7#b7 ,section 
#acc securities ,the term section #acc  
securities means employer securities    
acquired by an employee stock ownership 
plan in a transaction to which section  
#acc applied4  7#c7 ,disposition ,the   
term disposition includes any           
distribution4  7#d7 ,ordering rules ,for
 ordering rules for dispositions of     
employer securities1 see section        

#digh7;b77#b74  4  7,b7 ,the table of   
sections for chapter #dc of such ,code  
is amended by inserting before the item 
relating to section #digi the following 
new item3  ,sec4 #digh;,b4 ,tax on      
disposition of employer securities to   
which section #acc applied4  4  7#f7    
,subsection 7e7 of section #fjdg of such
 ,code is amended by striking paragraphs
 7#a7 and 7#b7 and inserting the        
following new paragraphs3  7#a7 any     
employer maintaining1 or the plan       
administrator 7within the meaning of    
section #dad7;g77 of1 an employee stock 
ownership plan--  7,a7 which acquired   
stock in a transaction to which section 
#acc applies1 or  7,b7 which holds stock
 with respect to which section #djd7k7  
applies to dividends paid on such stock1
  7#b7 any person making or holding a   
loan to which section #acc applies1 or  
7#c7 both such employer or plan         
administrator and such person1  4  7#g7 
,subsection 7f7 of section #ghgb of such
 ,code is amended by adding at the end  

the following new paragraph3  7#ab7     
,special rule for certain employer      
security loans ,this section shall not  
apply to any loan between a corporation 
7or any member of the controlled group  
of corporations which includes such     
corporation7 and an employee stock      
ownership plan described in section     
#dige7;e77#g7 to the extent that the    
interest rate on such loan is equal to  
the interest rate paid on a related     
securities acquisition loan 7as         
described in section #acc7;b77 to such  
corporation4  4  7#h7 ,the table of     
sections for part ,,iii of subchapter ,b
 of chapter #a of such ,code is amended 
by inserting after the item relating to 
section #acb the following new item3    
,sec4 #acc4 ,interest on certain loans  
used to acquire employer securities4  4 
7c7 ,effective date ,the amendments made
 by this section shall apply to original
 securities acquisition loans 7as       
defined in section #acc7;e77#c7 of the  
,internal ,revenue ,code of #aihf 7and  

loans refinancing such loans77 made     
after the date of the enactment of this 
,act4  #e4 ,employee stock ownership    
requirements for use of performance     
exception to limitation of deductibility
 of executive compensation2 expansion of
 publicly held corporation definition   
7a7 ,limitation on use of performance   
exception  7#a7 ,in general ,section    
#afb7m7 of the ,internal ,revenue ,code 
of #aihf is amended by adding at the end
 the following new paragraph3  7#g7     
,employee stock ownership requirements  
for use of performance exception  7,a7  
,in general ,the exception under        
paragraph 7#d77;,c7 shall not apply to  
any remuneration payable by a publicly  
held corporation for any taxable year   
unless the corporation has in effect at 
all times during the year a qualified   
employee stock program4  7,b7 ,qualified
 employee stock program ,for purposes of
 this paragraph1 the term qualified     
employee stock program means1 with      
respect to any corporation1 a program of

 the corporation under which-- 7i7      
employees of the corporation other than 
highly compensated employees 7within the
 meaning of section #dad7q77 hold       
nonforfeitable rights to at least #e    
percent of--  7,i7 either each class of 
outstanding stock of the corporation    
issuing the employer securities or the  
total value of all outstanding stock of 
the corporation1 and  7,,ii7 the voting 
rights of the total outstanding voting  
shares of stock of the corporation1     
7ii7 any stock 7or any right with       
respect to such stock7 taken into       
account with respect to an employee     
under clause 7i7 is provided to the     
employee as an employer contribution and
 at no cost to the employee1 and  7iii7 
the providing of such stock or right by 
the corporation is not in lieu of any   
other remuneration payable to such      
employee4  ,if a program includes the   
granting at no cost to employees of     
stock options under which employees may 
purchase stock through the exercise of  

the options1 the cost to the employee of
 such purchase shall not be taken into  
account in determining whether the      
program meets the requirements of clause
 7ii74  7,c7 ,failure to retain minimum 
stock interest  7i7 ,in general         
,notwithstanding subparagraph 7,a71     
paragraph 7#d77;,c7 shall not apply to  
any remuneration payable by a           
corporation with a qualified employee   
stock program during any period         
employees do not own stock meeting the  
requirements of subparagraph 7,b77i74   
7ii7 ,exception ,to the extent provided 
by the ,secretary1 clause 7i7 shall not 
apply to any period if1 within #ij days 
of the first date on which the failure  
occurred 7or such longer period not in  
excess of #ahj days as the ,secretary   
may prescribe71 the employees are given 
stock which results in the program      
meeting the requirements of subparagraph
 7,b77i74  7,d7 ,stock ,for purposes of 
this paragraph-- 7i7 ,in general ,the   
term stock means stock other than stock 

described in section #aejd7;a77#d74     
7ii7 ,treatment of certain rights ,the  
,secretary may provide that warrants1   
options1 contracts to acquire stock1    
convertible debt interests and other    
similar interests be treated as stock   
for #a or more purposes under           
subparagraph 7,a74  7,e7 ,aggregation   
rule ,for purposes of determining       
whether the stock ownership requirements
 of subparagraph 7,b77i7 are met1 a     
controlled group of corporations 7within
 the meaning of section #dji7l77#d77 may
 elect to treat all members of the group
 as #a corporation4  7,f7 ,exception for
 existing binding contracts ,this       
paragraph shall not apply to any        
remuneration payable under a written    
binding contract which was in effect on 
,april #a1 #bjag1 and which was not     
modified thereafter in any material     
respect before such remuneration is     
paid4  4  7#b7 ,conforming amendment    
,subparagraph 7,c7 of section           
#afb7m77#d7 of such ,code is amended by 

striking ,the term and inserting        
,subject to paragraph 7#g71 the term4   
7b7 ,definition of publicly held        
corporation ,paragraph 7#b7 of section  
#afb7m7 is amended to read as follows3  
7#b7 ,publicly held corporation ,for    
purposes of this subsection1 the term   
publicly held corporation means any     
corporation which-- 7,a7 qualifies as an
 issuer the securities of which are     
registered under section #ab of the     
,securities ,exchange ,act of #aicd1 or 
7,b7 is required to file reports under  
section #ae7;d7 of such ,act4  4  7c7   
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after the date of the   
enactment of this ,act4  #f4 ,office of 
,employee ,ownership and ,worker        
,empowerment  7a7 ,establishment ,there 
is established within the ,national     
,economic ,council the ,office of       
,employee ,ownership and ,worker        
,empowerment4  7b7 ,duties ,the ,office 
of ,employee ,ownership and ,worker     

,empowerment established under          
subsection 7a7 shall-- 7#a7 provide     
educational and technical assistance at 
no cost to small businesses1 as defined 
by the ,administrator of the ,small     
,business ,administration1 that are     
attempting to establish employee        
ownership2  7#b7 raise awareness of     
profit sharing to companies and         
employees1 including ,e,s,o,ps2 and     
7#c7 not later than #ahj days after the 
date of enactment of this ,act1 submit  
to ,congress a report on any barriers to
 employee ownership in companies4  7c7  
,staff  7#a7 ,in general ,the ,director 
of the ,national ,economic ,council may1
 without regard to the civil service    
laws 7including regulations71 appoint   
and terminate such personnel as may be  
necessary to enable the ,office of      
,employee ,ownership and ,worker        
,empowerment to carry out this section4 
7#b7 ,compensation ,the ,director of the
 ,national ,economic ,council may fix   
the compensation of personnel without   

regard to chapter #ea and subchapter    
,,iii of chapter #ec of title #e1       
,united ,states ,code1 relating to      
classification of positions and ,general
 ,schedule pay rates1 except that the   
rate of pay for personnel may not exceed
 the rate payable for level ,v of the   
,executive ,schedule under section #ecaf
 of that title4