,i #aafth ,,congress #ast ,session ,h4 ,r4 #bihc ,,in ,,the ,,house ,,of ,,representatives ,may #bc1 #bjai,mr4 ,de,fazio introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,education and ,labor1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,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 ,january #bjai1 the manufacturing sector lost #d1deh1jjj jobs2 7#b7 as of ,january #bjai1 only #ab1hbf1jjj workers in the ,united ,states were employed in the manufacturing sector1 a lower number than in ,december #aida2 7#c7 at the end of #bjah1 the ,united ,states had a trade deficit of #fba1jjj1jjj1jjj1 including a record #dai1afb1jjj1jjj 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 ,bank established under section #d2 7#b7 the term eligible worker-owned cooperative has the meaning given the term in section #ajdb7;c77#b7 of the ,internal ,revenue ,code of #aihf2 7#c7 the term employee stock ownership plan has the meaning given the term 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 ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall establish the ,united ,states ,employee ,ownership ,bank 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 appointed under subparagraph 7,a7 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 shall provide direct loans and loan guarantees1 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 not less than #ea percent employee-owned1 or will become not less than #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 not less than #ea percent employee-owned2 7#c7 to allow a company that is already not less than #ea percent employee-owned to increase the level of employee ownership at the company2 and 7#d7 to allow a company that is already not less than #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 the company to which the loan or loan guarantee would be provided shall submit to the ,bank a business plan 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 an eligible worker-owned cooperative2 7,b7 the board of directors of the company is or will be elected by shareholders on a #a share to #a vote basis1 or by members of the eligible worker-owned cooperative on a #a member to #a 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 of the company shall 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 section-- 7i7 that is 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 of not longer than #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 inserting 2 employee stock ownership plans or eligible worker-owned cooperatives after layoffs2 and 7#b7 by adding at the end the following3 7e7 ,employee stock ownership plans and eligible worker-,owned cooperatives 7#a7 ,in general 7,a7 ,opportunity to purchase ,except as provided in paragraph 7#b71 if an employer orders a plant or facility closing in connection with the termination of the operations of the employer at that plant or facility1 the employer shall offer the employees of the employer an opportunity to purchase that 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 not less than #ea percent employee-owned4 7,b7 ,determination of value ,the value of the company that is to be the subject of a plan or cooperative described in subparagraph 7,a7 shall be the fair market value of the plant or facility1 as determined by an appraisal-- 7i7 conducted by an independent third party jointly selected by an employer described in that subparagraph and the employees of that employer2 and 7ii7 the cost of which 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 that plant to continue or begin a business within the ,united ,states2 or 7,b7 if an employer orders a plant closing and that employer intends to continue the business conducted at that plant at another plant within the ,united ,states4 4 #f4 ,regulations on safety and soundness and preventing competition with commercial institutions ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall prescribe such regulations as are necessary to implement this ,act and the amendments made by this ,act1 including regulations to ensure-- 7#a7 the safety and soundness of the ,bank2 and 7#b7 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 not less than #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 #bjbj1 and such sums as may be necessary for each fiscal year thereafter4