,,ii #aai? ,,congress #a/ ,session ,s4 #bdeh ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #bd1 #bjbe ,mr4 ,s&]s 7= himself1 ,mrs4 ,%ahe51 ,mr4 ,blum5?al1 & ,mrs4 ,gillibr&7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions ,a ,,bill ,to require ! ,secret>y ( ,labor to e/abli% ! ,(fice ( ,employee ,own]%ip to c>ry out ! ,employee ,own]%ip ,initiative & e/abli% & c>ry out ! ,employee ,own]%ip ,loan ,program1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,employee ,own]%ip ,f9anc+ ,act4 #b4 ,def9itions ,9 ?is ,act3 7#a7 ,director ,! t]m ,director means ! ,director ( ! ,(fice ( ,employee ,own]%ip appo9t$ "u section #c7;a77#b74 7#b7 ,eligible work]-own$ coop]ative ,! t]m eligible work]-own$ coop]ative has ! mean+ giv5 ! t]m 9 section #ajdb7;c77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 7#c7 ,employee /ock own]%ip plan ,! t]m employee /ock own]%ip plan has ! mean+ giv5 ! t]m 9 section #dige7;e77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 7#d7 ,(fice ,! t]m ,(fice means ! ,(fice ( ,employee ,own]%ip e/abli%$ "u section #c7;a74 7#e7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ,labor4 #c4 ,(fice ( ,employee ,own]%ip 7a7 ,e/abli%m5t ( ! ,(fice ( ,employee ,own]%ip 7#a7 ,9 g5]al ,n lat] ?an #ij days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all e/abli% ! ,(fice ( ,employee ,own]%ip 9 ! ,dep>tm5t ( ,labor1 outside ( ! ,employee ,b5efits ,security ,adm9i/ration4 7#b7 ,director ,! ,secret>y %all appo9t ! ,director ( ! ,(fice ( ,employee ,own]%ip to s]ve z ! head ( ! ,(fice at ! pleasure ( ! ,secret>y4 7#c7 ,/aff ,! ,director may select1 appo9t1 & employ su* employees z are necess>y to c>ry out ! functions ( ! ,(fice4 7b7 ,functions ,! ,director %all be responsible =-- 7#a7 c>ry+ out ! ,employee ,own]%ip ,initiative e/abli%$ "u section #cdf ( ! ,,secure #b4j ,act ( #bjbb 7#bi ,u4,s4,c4 #cbbh72 & 7#b7 c>ry+ out ! ,employee ,own]%ip ,loan ,program "u section #d4 #d4 ,employee ,own]%ip ,loan ,program 7a7 ,def9ition ( eligible entity ,9 ?is section1 ! t]m eligible entity-- 7#a7 means-- 7,a7 an employee /ock own]%ip plan2 7,b7 an eligible work]-own$ coop]ative2 or 7,c7 a qualifi$ tru/ "u section #dja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 or ano!r entity1 on behalf ( an employee /ock own]%ip plan or eligible work]-own$ coop]ative1 :i* o!r entity may include a company t sponsors an employee /ock own]%ip plan2 & 7#b7 excludes any entity prim>ily own$ by a private equity firm1 z def9$ by ! ,director4 7b7 ,loan program 7#a7 ,9 g5]al ,! ,director %all e/abli% & c>ry out an ,employee ,own]%ip ,loan ,program to make loans1 or loan gu>antees1 to eligible entities satisfy+ ! requirem5ts "u subsection 7c7 9 ord] to fo/] increas$ employee own]%ip ( ,unit$ ,/ates companies & great] employee p>ticipation 9 company decision mak+ ?r\gh\t ! ,unit$ ,/ates4 7#b7 ,loans 7,a7 ,9 g5]al ,ea* loan or loan gu>antee made by ! ,secret>y to an eligible entity "u ?is section %all be-- 7i7 to enable ! eligible entity to pur*ase ! equity ( a company-- 7,i7 t is n less ?an #ea p]c5t employee-own$2 or 7,,ii7 t w become n less ?an #ea p]c5t employee-own$ ?r\gh support f ! loan or loan gu>antee2 7ii7 to all[ a company t is less ?an #ea p]c5t employee-own$ to become n less ?an #ea p]c5t employee-own$2 7iii7 to all[ a company t is n less ?an #ea p]c5t employee-own$ to increase ! level ( employee own]%ip at ! company2 or 7iv7 to all[ a company t is n less ?an #ea p]c5t employee-own$ to exp& op]ations & increase or pres]ve employm5t4 7,b7 ,t]ms & conditions = loans & loan gu>antees ,not)/&+ any o!r provision ( law1 a loan t is made or gu>ante$ "u ?is section %all-- 7i7 be> int]e/ at an annual rate t is ! less] (-- 7,i7 a rate t is suffici5t to cov] an appropriate am\nt ( ! co/ ( borr[+ & losses to ! ,dep>tm5t ( ,labor = obligations ( comp>able maturity1 z det]m9$ by ! ,secret>y 9 consultation ) ! ,director2 or 7,,ii7 a rate t is equal to ! curr5t applicable m>ket rate = a loan ( comp>able maturity1 z det]m9$ by ! ,secret>y 9 consultation ) ! ,director2 7ii7 h a repaym5t p]iod n to exce$ #ae ye>s2 & 7iii7 satisfy applicable requirem5ts ( ! ,int]nal ,rev5ue ,code ( #aihf & ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajja et seq474 7,c7 ,subord9ation ,a loan or loan gu>antee made "u ?is section may be subord9at$ to ! int]e/s ( curr5t & =m] p>ticipants 9 ! employee /ock own]%ip plan or eligible work]-own$ coop]ative if an eligible entity files = bankruptcy1 if det]m9$ appropriate by ! ,director4 7c7 ,preconditions ,an eligible entity seek+ a loan or loan gu>antee "u ?is section %all submit to ! ,director1 at su* "t1 9 su* mann]1 & conta9+ su* in=mation z ! ,director may reasonably require1 a bus9ess plan 7& foll[-up report+ on ! bus9ess plan1 z det]m9$ by ! ,director7 t-- 7#a7 9 ! case ( an eligible entity t is an employee /ock own]%ip plan or t is receiv+ ! loan or loan gu>antee on behalf ( su* a plan1 demon/rates t-- 7,a7 n less ?an #ea p]c5t ( ! equity ( ! company to be support$ by ! loan or loan gu>antee is or w be own$ by an employee /ock own]%ip plan2 7,b7 ! tru/ee ( ! plan has full vot+ rights = ! %>es &1 "u ! plan1 su* %>es are vot$ 9 accordance ) section #dji7;e7 ( ! ,int]nal ,rev5ue ,code ( #aihf2 7,c7 n few] ?an #b ( ! memb]s ( ! bo>d ( directors ( su* company are directors :o are n employ$ by ! company1 h no o!r bus9ess relation%ip ) ! company1 & are o!rwise indep5d5t f ! company2 7,d7 ! company w e/abli% a committee1 ( :i* n less ?an #ej p]c5t ( ! memb]s are employees 7b n (fic]s7 ( ! company1 t w1 n lat] ?an #a ye> aft] receipt ( ! loan or loan gu>antee1 submit to ! ,director a plan to e/abli% a sy/em ( mean+ful employee involvem5t 9 any "w-relat$ decisions ( ! company1 includ+ decisions ) respect to-- 7i7 increas+ workplace democracy2 7ii7 op5-book managem5t2 & 7iii7 o!r =ms ( mean+ful employee engagem5t2 7,e7 ! company (f]s a div]sifi$ inve/m5t option = retirem5t = employees2 & 7,f7 all employees ( ! company w receive basic in=mation ab\t company progress on a qu>t]ly basis z det]m9$ by ! ,director ?r\gh regulations2 7#b7 9 ! case ( an eligible entity t is an eligible work]-own$ coop]ative or t is receiv+ ! loan or loan gu>antee on behalf ( su* a coop]ative1 demon/rates t ! bo>d ( directors ( ! company is or w be elect$1 by memb]s ( ! eligible work]-own$ coop]ative on a #a memb] to #a vote basis2 & 7#c7 conta9s a /udy f an indep5d5t ?ird p>ty )-- 7,a7 a fair m>ket valuation ( ! company2 & 7,b7 a positive det]m9ation t ! eligible entity %\ld g5]ate en\gh ca% fl[ to pay back ! loan or loan gu>antee )9 ! repaym5t p]iod requir$ "u subsection 7b77#b77;,b77ii74 7d7 ,loan portfolio 7#a7 ,employee own]%ip loan program fund 7,a7 ,e/abli%m5t ,!re is e/abli%$ 9 ! ,treasury ( ! ,unit$ ,/ates a fund to be kn[n z ! ,employee ,own]%ip ,loan ,program ,fund4 7,b7 ,deposits ,not)/&+ section #ccjb ( title #ca1 !re %all be deposit$ 9 ! ,employee ,own]%ip ,loan ,program ,fund any am\nt repaid or o!rwise receiv$ ) respect to loans or loan gu>antees made "u ?is section1 includ+ f any collection ef=t4 7,c7 ,availability ( am\nts ,all am\nts deposit$ 9 ! ,employee ,own]%ip ,loan ,program ,fund "u subp>agraph 7,b7 %all-- 7i7 be deposit$ z (fsett+ collections into ! ,employee ,own]%ip ,loan ,program ,fund2 7ii7 be available to ! ,director1 )\t fur!r appropriation1 to make loans or loan gu>antees "u ?is section & = ! adm9i/rative co/s ( su* loans & loan gu>antees2 & 7iii7 rema9 available to ! ,director until exp5d$4 7#b7 ,limitation ( loan portfolio ,! pr9cipal am\nt ( out/&+ loans & loan gu>antees made "u ?is section 7includ+ us+ am\nts f ! ,employee ,own]%ip ,loan ,program ,fund7 %all n exce$1 9 ! aggregate1 #ejj1jjj1jjj at any "o "t4 #e4 ,employee "r ( fir/ refusal be=e plant clos+ 7a7 ,9 g5]al ,section #c ( ! ,work] ,adju/m5t & ,retra9+ ,notification ,act 7#bi ,u4,s4,c4 #bajb7 is am5d$ by add+ at ! end ! foll[+3 7e7 ,employee /ock own]%ip plans & eligible work]-,own$ coop]atives 7#a7 ,opportunity to pur*ase ,if an employ] ord]s a plant clos+ t is a p]man5t %utd[n ( an entire facility1 ! employ] %all include 9 ! notice requir$ "u subsection 7a7 an (f] = ! affect$ employees ( ! employ] to pur*ase t plant or facility1 or ! company ( ! plant or facility1 ?r\gh ei!r ( ! foll[+3 7,a7 ,an employee /ock own]%ip plan1 z def9$ 9 section #dige7;e77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 sponsor$ by a company t is n less ?an #ea p]c5t employee-own$4 7,b7 ,an eligible work]-own$ coop]ative1 z def9$ 9 section #ajdb7;c77#b7 ( su* ,code4 7#b7 ,det]m9ation ( value 7,a7 ,9 g5]al ,! value ( ! plant1 facility1 or company t is ! subject ( ! (f] describ$ 9 p>agraph 7#a7 %all be ! fair m>ket value ( ! plant1 facility1 or company1 respectively1 z det]m9$ by an appraisal t is-- 7i7 conduct$ by an indep5d5t ?ird p>ty select$ 9 accordance ) subp>agraph 7,b72 & 7ii7 paid = by ! employ] describ$ 9 p>agraph 7#a74 7,b7 ,indep5d5t ?ird p>ty ,! indep5d5t ?ird p>ty describ$ 9 subp>agraph 7,a77i7 %all be-- 7i7 9 ! case ( a plant1 facility1 or company to be pur*as$ ?r\gh an employee /ock own]%ip plan1 select$ by ! tru/ee ( ! plan2 & 7ii7 9 ! case ( an eligible work]-own$ coop]ative1 select$ jo9tly by ! employ] describ$ 9 p>agraph 7#a7 & ! affect$ employees ( t employ] 7or ! designat$ repres5tative ( su* employees74 7,c7 ,disclosures ,= purposes ( det]m9+ ! value ( a plant1 facility1 or company t is ! subject ( an employee /ock own]%ip plan or eligible work]-own$ coop]ative describ$ 9 p>agraph 7#a71 ! (f] requir$ "u su* p>agraph %all include1 ) respect to ! plant1 facility1 or company1 a disclosure (-- 7i7 any out/&+ liabilities1 includ+ any out/&+ claims by cr$itors2 7ii7 copies ( all rec5t f9ancial /atem5ts2 7iii7 securities fil+s or relat$ disclosures2 7iv7 any legal claims fil$ aga9/ ! company2 7v7 any bankruptcy fil+s2 & 7vi7 any o!r simil> in=mation necess>y to det]m9e ! full value & f9ancial viability ( ! plant1 facility1 or company 7& 9 ! case ( a plant or company1 any facilities ( ! plant or company74 7#c7 ,limitation ,9 ! ev5t t ! affect$ employees & employ] describ$ 9 p>agraph 7#a7 7or ! designat$ repres5tatives ( su* employees & employ]7 ent]1 9 good fai? & dur+ ! #fj-;day p]iod aft] ! employ] s]ves ! notice requir$ "u subsection 7a71 into negotiations = ! pur*ase ( ! plant1 facility1 or company1 ! plant 7& all facilities or op]at+ units at ! plant71 facility 7& all op]at+ units at su* facility71 or company 7& all facilities or op]at+ units at ! company71 z applicable1 %all rema9 op5 dur+ su* negotiations & = at lea/ ! #cj-;day p]iod foll[+ ! clos+ date = su* pur*ase4 4 7b7 ,exemption f prohibit$ transactions = pur*ase due to plant clos+ 7#a7 ,9 g5]al ,section #djh ( ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajh7 is am5d$ by add+ at ! end ! foll[+3 7i7 ,pur*ase & op]ation ( employ] company1 plant1 or facility due to plant clos+ ,sections #djf & #djg %all n apply to ! pur*ase & op]ation ( a company1 plant1 or facility ?r\gh an employee /ock own]%ip plan 7z t t]m is def9$ 9 section #dige7;e77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 pursuant to section #c7;e7 ( ! ,work] ,adju/m5t & ,retra9+ ,notification ,act 7#bi ,u4,s4,c4 #bajb7;e774 4 7#b7 ,con=m+ am5dm5ts to ! ,int]nal ,rev5ue ,code ( #aihf 7,a7 ,9 g5]al ,subsection 7d7 ( section #dige ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ or at ! end ( p>agraph 7#bd71 by /rik+ ! p]iod at ! end ( p>agraph 7#be7 & ins]t+ 1 or1 & by add+ at ! end ! foll[+ new p>agraph3 7#bf7 ! pur*ase & op]ation ( a company1 plant1 or facility ?r\gh an employee /ock own]%ip plan pursuant to section #c7;e7 ( ! ,work] ,adju/m5t & ,retra9+ ,notification ,act 7#bi ,u4,s4,c4 #bajb7;e774 4 7,b7 ,exemption f own]-employee rules ,subp>agraph 7,a7 ( section #dige7;f77#f7 ( su* ,code is am5d$ by /rik+ 7#i7 & 7#ab7 & ins]t+ 7#i71 7#ab71 & 7#bf74 #f4 ,advisory ,c\ncil on ,employee ,own]%ip 7a7 ,9 g5]al 7#a7 ,e/abli%m5t ,!re is h]eby e/abli%$ an ,advisory ,c\ncil on ,employee ,own]%ip 7h]e9aft] 9 ?is section ref]r$ to z ! ,c\ncil7 consi/+ ( #g memb]s appo9t$ by ! ,secret>y4 7#b7 ,memb]%ip 7,a7 ,9 g5]al ,( ! #g memb]s ( ! ,c\ncil-- 7i7 #d %all be appo9t$ to repres5t employees2 7ii7 #a %all be appo9t$ to repres5t companies t h e/abli%$ an employee /ock own]%ip plan or eligible work]-own$ coop]ative2 7iii7 #a %all be appo9t$ to repres5t employee /ock own]%ip plan provid]s2 & 7iv7 #a %all be appo9t$ to repres5t associations or o!r memb]%ip organizations = employee /ock own]%ip plans or eligible work]-own$ coop]atives4 7,b7 ,political affiliation ,n m ?an #d memb]s ( ! ,c\ncil %all be memb]s ( ! same political p>ty4 7#c7 ,t]ms ,memb]s ( ! ,c\ncil %all s]ve = t]ms ( #b ye>s4 7#d7 ,appo9tm5t2 reappo9tm5t ,a memb] ( ! ,c\ncil may be reappo9t$ to s]ve additional t]ms4 7#e7 ,vacancies ,a memb] ( ! ,c\ncil appo9t$ to fill a vacancy %all be appo9t$ only = ! rema9d] ( su* t]m4 7#f7 ,quorum ,a majority ( memb]s ( ! ,c\ncil %all con/itute a quorum & action %all be tak5 only by a majority vote ( ^? pres5t & vot+4 7b7 ,duties & functions 7#a7 ,9 g5]al ,x %all be ! duty ( ! ,c\ncil to advise ! ,secret>y ) respect to ! c>ry+ out ( ! functions ( ! ,secret>y "u ?is ,act & to submit to ! ,secret>y recomm5dations ) respect to c>ry+ out su* duties4 7#b7 ,meet+s ,! ,c\ncil %all meet at lea/ #d times ea* ye> & at su* o!r times z ! ,secret>y reque/s4 7#c7 ,report ,! ,c\ncil %all annually submit a report to ! ,secret>y on ! recomm5dations describ$ 9 p>agraph 7#a74 7c7 ,executive ,secret>y2 ,secret>ial & cl]ical s]vices ,! ,secret>y %all furni% to ! ,c\ncil an ,executive ,secret>y & su* secret>ial1 cl]ical1 & o!r s]vices z are det]m9$ necess>y to conduct ! bus9ess ( ! ,c\ncil4 ,! ,secret>y may call ^u o!r ag5cies ( ! ,f$]al ,gov]nm5t = /ati/ical data1 reports1 & o!r in=mation :i* w assi/ ! ,c\ncil 9 ! p]=mance ( its duties4 7d7 ,comp5sation 7#a7 ,9 g5]al ,memb]s ( ! ,c\ncil %all ea* be entitl$ to receive ! daily equival5t ( ! annual rate ( basic pay 9 effect = level ,,iv ( ! ,executive ,s*$ule "u section #ecae ( title #e1 ,unit$ ,/ates ,code = ea* day 7includ+ travel "t7 dur+ :i* !y are engag$ 9 ! actual p]=mance ( duties ve/$ 9 ! ,c\ncil4 7#b7 ,travel exp5ses ,:ile away f _! homes or regul> places ( bus9ess 9 ! p]=mance ( s]vices = ! ,c\ncil1 memb]s ( ! ,c\ncil %all be all[$ travel exp5ses1 includ+ p] diem 9 lieu ( subsi/5ce1 9 ! same mann] z p]sons employ$ int]mitt5tly 9 ! ,gov]nm5t s]vice are all[$ exp5ses "u section #egjc ( title #e1 ,unit$ ,/ates ,code4 7e7 ,t]m9ation ,section #ajac ( title #e1 ,unit$ ,/ates ,code1 relat+ to t]m9ation1 %all n apply to ! ,c\ncil4 #g4 ,regulations or guidance ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all prescribe su* regulations or guidance z are necess>y to implem5t sections #c1 #d1 & #f4 #h4 ,au?orization ( appropriations 7a7 ,loan program ,!re are au?oriz$ to be appropriat$ to ! ,employee ,own]%ip ,loan ,program ,fund e/abli%$ "u section #d-- 7#a7 #ejj1jjj1jjj = fiscal ye> #bjbf1 to rema9 available until exp5d$1 to make loans or loan gu>antees "u su* section dur+ su* fiscal ye> & subsequ5t fiscal ye>s2 7#b7 #e1jjj1jjj = fiscal ye> #bjbf1 to rema9 available until ,septemb] #cj1 #bjbf1 = adm9i/rative co/s 9 e/abli%+ ! program "u su* section2 & 7#c7 su* sums z may be necess>y = fiscal ye> #bjbg1 & ea* subsequ5t fiscal ye>1 = adm9i/rative co/s 9 c>ry+ out ! program dur+ su* fiscal ye>s4 7b7 ,additional au?orizations ,!re are au?oriz$ to be appropriat$ to ! ,secret>y to c>ry out ?is ,act1 o!r ?an section #d1 su* sums z may be necess>y = ea* fiscal ye>4