S.Amdt. 1345

SA 1345. Mr. SANDERS submitted an amendment intended to be proposed
to amendment SA 1221 proposed by Mr. Hatch to the bill H.R. 1314, to
amend the Internal Revenue Code of 1986 to provide for a right to an
administrative appeal relating to adverse determinations of tax-exempt
status of certain organizations; which was ordered to lie on the table;
as follows:

=========================== NOTE ===========================

On page S2998, May 18, 2015, in the third column, the following
language appears: SA 1345. Mr. HATCH submitted an amendment
intended to be proposed to amendment SA 1221 proposed by Mr. HATCH
to the bill H.R. 1314, to amend the Internal Revenue Code of 1986
to provide for a right to an administrative appeal relating to
adverse determinations of tax-exempt status of
certainorganizations; which was ordered to lie on the table; as
follows:

The online Record has been corrected to read: SA 1345. Mr.
SANDERS submitted an amendment intended to be proposed to
amendment SA 1221 proposed by Mr. HATCH to the bill H.R. 1314, to
amend the Internal Revenue Code of 1986 to provide for a right to
an administrative appeal relating to adverse determinations of
tax-exempt status of certain organizations; which was ordered to
lie on the table; as follows:

========================= END NOTE =========================

[[Page S2999]]

At the end, add the following:

TITLE III--UNITED STATES EMPLOYEE OWNERSHIP BANK

SECTION 301. SHORT TITLE.

This title may be cited as the ``United States Employee
Ownership Bank Act''.

SEC. 302. FINDINGS.

Congress finds that--
(1) between January 2000 and February 2015, the
manufacturing sector lost 4,963,000 jobs;
(2) as of February 2015, only 12,321,000 workers in the
United States were employed in the manufacturing sector,
lower than July 1941;
(3) at the end of 2014, the United States had a trade
deficit of $505,047,000,000, including a record-breaking
$342,632,500,000 trade deficit with China;
(4) preserving and increasing decent paying jobs must be a
top priority of Congress;
(5) providing loan guarantees, direct loans, and technical
assistance to employees to buy their own companies will
preserve and increase employment in the United States; and
(6) 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 cooperatives.

SEC. 303. DEFINITIONS.

In this title--
(1) the term ``Bank'' means the United States Employee
Ownership Bank, established under section 304;
(2) the term ``eligible worker-owned cooperative'' has the
meaning given that term in section 1042(c) of the Internal
Revenue Code of 1986;
(3) the term ``employee stock ownership plan'' has the
meaning given that term in section 4975(e) of the Internal
Revenue Code of 1986; and
(4) the term ``Secretary'' means the Secretary of the
Treasury.

SEC. 304. ESTABLISHMENT OF UNITED STATES EMPLOYEE OWNERSHIP
BANK WITHIN THE DEPARTMENT OF THE TREASURY.

(a) Establishment of Bank.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, 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 decision-making throughout
the United States.
(2) Organization of the bank.--
(A) Management.--The Secretary shall appoint a Director to
serve as the head of the Bank, who shall serve at the
pleasure of the Secretary.
(B) Staff.--The Director may select, appoint, employ, and
fix the compensation of the employees that are necessary to
carry out the functions of the Bank.
(b) Duties of Bank.--The Bank is authorized to provide
loans, on a direct or guaranteed basis, which may be
subordinated to the interests of all other creditors--
(1) to purchase a company through an employee stock
ownership plan or an eligible worker-owned cooperative, which
shall be not less than 51 percent employee-owned, or will
become not less than 51 percent employee-owned as a result of
financial assistance from the Bank;
(2) to allow a company that is less than 51 percent
employee-owned to become not less than 51 percent employee-
owned;
(3) to allow a company that is not less than 51 percent
employee-owned to increase the level of employee ownership at
the company; and
(4) to allow a company that is not less than 51 percent
employee-owned to expand operations and increase or preserve
employment.
(c) Preconditions.--Before the Bank makes any subordinated
loan or guarantees a loan under subsection (b)(1), a business
plan shall be submitted to the Bank that--
(1) shows that--
(A) not less than 51 percent of all interests in the
company is or will be owned or controlled by an employee
stock ownership plan or eligible worker-owned cooperative;
(B) the board of directors of the company is or will be
elected by shareholders on a 1 share to 1 vote basis or by
members of the eligible worker-owned cooperative on a 1
member to 1 vote basis, except that shares held by the
employee stock ownership plan will be voted according to
section 409(e) of the Internal Revenue Code of 1986, 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 409(e); and
(C) all employees will receive basic information about
company progress and have the opportunity to participate in
day-to-day operations; and
(2) 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 loan,
subordinated loan, or loan guarantee that was made possible
through the Bank.
(d) Terms and Conditions for Loans and Loan Guarantees.--
Notwithstanding any other provision of law, a loan that is
provided or guaranteed under this section shall--
(1) bear interest at an annual rate, as determined by the
Secretary--
(A) in the case of a direct loan provided under this
section--
(i) sufficient to cover the cost of borrowing to the
Department of the Treasury for obligations of comparable
maturity; or
(ii) of 4 percent; and
(B) in the case of a loan guaranteed under this section, in
an amount that is equal to the current applicable market rate
for a loan of comparable maturity; and
(2) have a term of not more than 12 years.

SEC. 305. EMPLOYEE RIGHT OF FIRST REFUSAL BEFORE PLANT OR
FACILITY CLOSING.

Section 3 of the Worker Adjustment and Retraining
Notification Act (29 U.S.C. 2102) is amended--
(1) in the heading, by inserting: ``; employee stock
ownership plans or eligible worker-owned cooperatives'' after
``layoffs''; and
(2) by adding at the end the following:
``(e) Employee Stock Ownership Plans and Eligible Worker-
Owned Cooperatives.--
``(1) General rule.--If an employer orders a plant or
facility closing in connection with the termination of
operations at the plant or facility, the employer shall offer
its employees an opportunity to purchase the plant or
facility through an employee stock ownership plan (as that
term is defined in section 4975(e) of the Internal Revenue
Code of 1986) or an eligible worker-owned cooperative (as
that term is defined in section 1042(c) of the Internal
Revenue Code of 1986) that is not less than 51 percent
employee-owned. The value of the company that is to be the
subject of the plan or cooperative shall be the fair market
value of the plant or facility, as determined by an appraisal
by an independent third party jointly selected by the
employer and the employees. The cost of the appraisal may be
shared evenly between the employer and the employees.
``(2) Exemptions.--Paragraph (1) shall not apply--
``(A) if an employer orders a plant closing but will retain
the assets of the plant to continue or begin a business
within the United States; or
``(B) if an employer orders a plant closing and the
employer intends to continue the business conducted at the
plant at another plant within the United States.''.

SEC. 306. REGULATIONS ON SAFETY AND SOUNDNESS AND PREVENTING
COMPETITION WITH COMMERCIAL INSTITUTIONS.

Not later than 90 days after the date of enactment of this
Act, the Secretary shall prescribe such regulations as are
necessary to implement this title and the amendments made by
this title, including--
(1) regulations to ensure the safety and soundness of the
Bank; and
(2) regulations to ensure that the Bank will not compete
with commercial financial institutions.

SEC. 307. COMMUNITY REINVESTMENT CREDIT.

Section 804 of the Community Reinvestment Act of 1977 (12
U.S.C. 2903) is amended by adding at the end the following:
``(e) Establishment of Employee Stock Ownership Plans and
Eligible Worker-Owned Cooperatives.--In assessing and taking
into account, under subsection (a), the record of a financial
institution, the appropriate Federal financial supervisory
agency may consider as a factor capital investments, loans,
loan participation, technical assistance, financial advice,
grants, and other ventures undertaken by the institution to
support or enable employees to establish employee stock
ownership plans or eligible worker-owned cooperatives (as
those terms are defined in sections 4975(e) and 1042(c) of
the Internal Revenue Code of 1986, respectively), that are
not less than 51 percent employee-owned plans or
cooperatives.''.

SEC. 308. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary to
carry out this title--
(1) $500,000,000 for fiscal year 2016; and
(2) such sums as may be necessary for each fiscal year
thereafter.
______