To increase the competitiveness of American workers through the expansion of employee ownership, and for other purposes.

1. Adds SEC. __. EMPLOYEE OWNERSHIP EXPANSION wherever appropriate

   Adds a section

   Inserted: SEC. __. EMPLOYEE OWNERSHIP EXPANSION.

   Inserted: (a) Findings.--Congress makes the following findings:

   Inserted: (1) Between 2000 and 2006, the United States lost more than 3,000,000 manufacturing jobs.

   Inserted: (2) In 2006, the international trade deficit of the United States was more than $763,000,000,000, $232,000,000,000 of which was due to the Nation's trade imbalance with China.

   Inserted: (3) Preserving and increasing jobs in the United States that pay a living wage should be a top priority of Congress.

   Inserted: (4) Providing loan guarantees, direct loans, grants, and technical assistance to employees to buy their own companies will increase the competitiveness of the United States.

   Inserted: (b) United States Employee Ownership Competitiveness Fund.--

   Inserted: (1) Establishment.--Not later than 30 days after the date of the enactment of this Act, the Secretary of Commerce (referred to in this section as the "Secretary") shall establish the United States Employee Ownership Competitiveness Fund (referred to in this section as the "Fund") to foster increased employee ownership of companies and greater employee participation in company decision-making throughout the United States.

   Inserted: (2) Organization.--

   Inserted: (A) Management.--The Fund shall be managed by a Director, who shall be appointed by, and serve at the pleasure of, the Secretary.

   Inserted: (B) Staff.--The Director may select, appoint, employ, and fix the compensation of such employees as shall be necessary to carry out the functions of the Fund.

   Inserted: (3) Functions.--Amounts in the Fund established under paragraph (1) may be used to provide--

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   Inserted: (A) loans subordinated to the interests of all other creditors, loan guarantees, and technical assistance, on such terms and subject to such conditions as the Secretary determines to be appropriate, to employees to purchase a business through an employee stock ownership plan or eligible worker-owned cooperative that are at least 51 percent employee owned; and

   Inserted: (B) grants to States and nonprofit and cooperative organizations with experience in developing employee-owned businesses and worker-owned cooperatives to--

   Inserted: (i) provide education and outreach to inform people about the possibilities and benefits of employee ownership of companies, gain sharing, and participation in company decision-making, including some financial education;

   Inserted: (ii) provide technical assistance to assist employee efforts to become business owners;

   Inserted: (iii) provide participation training to teach employees and employers methods of employee participation in company decision-making; and

   Inserted: (iv) conduct objective third party prefeasibility and feasibility studies to determine if employees desiring to start employee stock ownership plans or worker cooperatives could make a profit.

   Inserted: (4) Preconditions.--Before the Director makes any subordinated loan or loan guarantee from the Fund under paragraph (3)(A), the recipient employees shall submit to the Fund--

   Inserted: (A) a business plan showing that--

   Inserted: (i) at least 51 percent of all interests in the employee stock ownership plan or eligible worker-owned cooperative is owned or controlled by employees;

   Inserted: (ii) the Board of Directors of the employee stock ownership plan or eligible worker-owned cooperative is elected by all of the employees; and

   Inserted: (iii) all employees receive basic information about company progress and have the opportunity to participate in day-to-day operations; and

   Inserted: (B) a feasibility study from an objective third party with a positive determination that the employee stock ownership plan or eligible worker-owned cooperative will be profitable enough to pay any loan, subordinated loan, or loan guarantee that was made possible through the Fund.

   Inserted: (5) Insurance of subordinated loans and loan guarantees.--

   Inserted: (A) In general.--The Director shall use amounts in the Fund to insure any subordinated loan or loan guarantee provided under this section against the nonrepayment of the outstanding balance of the loan.

   Inserted: (B) Annual premiums.--The annual premium for the insurance of each subordinated loan or loan guarantee under this subsection shall be paid by the borrower in such manner and in such amount as the Secretary determines to be appropriate.

   Inserted: (C) Premiums and guarantee fees available to cover losses.--The premiums paid to the Fund from insurance issued under this paragraph and the fees paid to the Fund for loan guarantees issued under paragraph (2)(A) shall be deposited in an account managed by the Secretary of Commerce and may be used to reimburse the Fund for any losses incurred by the Fund in connection with any such loan or loan guarantee.

   Inserted: (6) Technical assistance in the discretion of the secretary.--If a grant is made under paragraph (3)(B)(ii), the Secretary may require the Director to--

   Inserted: (A) provide for the targeting of key groups such as retiring business owners, unions, managers, trade associations, and community organizations;

   Inserted: (B) encourage cooperation in organizing workshops and conferences; and

   Inserted: (C) provide for the preparation and distribution of materials concerning employee ownership and participation.

   Inserted: (7) Participation training in the discretion of the secretary.--If a grant is made under paragraph (3)(B)(iii), the Secretary may require the Director to provide for--

   Inserted: (A) courses on employee participation; and

   Inserted: (B) the development and fostering of networks of employee-owned companies to spread the use of successful participation techniques.

   Inserted: (c) Rulemaking.--Not later than 30 days after the date of the enactment of this Act, the Secretary of Commerce shall promulgate regulations that ensure--

   Inserted: (1) the safety and soundness of the Fund; and

   Inserted: (2) that the Fund does not compete with commercial financial institutions.

   Inserted: (d) Authorization of Appropriations.--There are authorized to be appropriated to carry out this section--

   Inserted: (1) $100,000,000 for fiscal year 2008; and

   Inserted: (2) such sums as may be necessary for subsequent fiscal years.

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   Original wording

   At the appropriate place, insert the following:

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As printed