S. 1982Senate110th Congress (2007-2009)In Committee

United States Employee Ownership Bank Act

Introduced August 2, 2007

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

August 2, 2007

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SenateIntro Referral

Introduced in Senate

August 2, 2007

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S10821)

August 2, 2007

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

August 2, 2007

Floor Debate

23 members

What members said about S. 1982 on the floor

8 Republicans14 Democrats1 Independent
Chuck Grassley
Sen. Chuck GrassleyR-IA · Aug 2, 2007

Mr. President, I am pleased to join my good friend and colleague Senator Baucus to introduce the Continuing the Advancement of Quality Improvement Act. The purpose of this legislation is to reform…

Richard G. Lugar
Sen. Richard G. LugarR-IN · Aug 2, 2007

Mr. President, I rise to introduce legislation to reauthorize the U.S. Leadership Against HIV/AIDS, Tuberculosis and Malaria Act of 2003, known as the Leadership Act, the largest international health…

Jack Reed
Sen. Jack ReedD-RI · Aug 2, 2007

Mr. President, today I introduce the Co-Teaching Educator Professional Development Act of 2007 to help improve the education of children with disabilities. A result of the enactment of the No Child…

Max Baucus
Sen. Max BaucusD-MT · Aug 2, 2007

Mr. President, today I am pleased to join Senator Grassley in introducing the Continuing the Advancement of Quality Improvement Act of 2007. This bill represents another step in our commitment to…

Barack Obama
Sen. Barack ObamaD-IL · Aug 2, 2007

Mr. President, the spread of nuclear weapons and related technology and the possibility that a nuclear weapon could fall into the hands of terrorists constitute the most urgent threat to our national…

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Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Aug 2, 2007

Mr. President, I rise today to express my support for S. 1957, the Design Piracy Prohibition Act. As one who has been involved in national intellectual property, patent, copyright and trademark…

Bernard Sanders
Sen. Bernard SandersI-VT · Aug 2, 2007

Mr. President, I am introducing today with Senator Leahy the U.S. Employee Ownership Bank Act. At a time when the U.S. has lost over 3 million manufacturing jobs; at a time when we are on the cusp of…

Bernard Sanders
Sen. Bernard SandersI-VT · Aug 2, 2007

Mr. President, I am introducing today with Senator Leahy the U.S. Employee Ownership Bank Act. At a time when the U.S. has lost over 3 million manufacturing jobs; at a time when we are on the cusp of…

Russell D. Feingold
Sen. Russell D. FeingoldD-WI · Aug 2, 2007

Mr. President, I would like to discuss legislation I am introducing with the Senior Senator from Wisconsin, Mr. Kohl, which would protect ginseng farmers and consumers by ensuring that ginseng is…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Aug 2, 2007

Mr. President, I am pleased to join with Senator Cornyn to introduce the Public Corruption Prosecution Improvements Act of 2007, a bill that will strengthen and clarify key aspects of Federal…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Aug 2, 2007

Mr. President, I rise to introduce the Violent Radicalization and Homegrown Terrorism Prevention Act of 2007. Foreign-based terrorism has weighed heavily in the news and in our thoughts for more than…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Aug 2, 2007

Mr. President, I rise today o join Senator Kerry in introducing the Surety Bond Improvement Act, a bill which would reinvigorate the Small Business Administration's Surety Bond Guarantee program. I…

Frank R. Lautenberg
Sen. Frank R. LautenbergD-NJ · Aug 2, 2007

Mr. President, I rise to introduce the Justice for Victims of State Sponsored Terrorism Act with my colleagues, Senators Specter, Menendez, Cornyn, Coleman, Lott, Lieberman, Schumer, Clinton, Casey,…

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John Cornyn
Sen. John CornynR-TX · Aug 2, 2007

Mr. President, I am proud to introduce this important legislation with Senator Patrick Leahy, the distinguished Chairman of the Judiciary Committee. This bill is yet another example of the great…

Tom Harkin
Sen. Tom HarkinD-IA · Aug 2, 2007

Mr. President, I rise today to introduce the Public School Repair and Renovation Act. I offer this legislation to meet the urgent need for support to repair crumbling schools in disadvantaged and…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Aug 2, 2007

Mr. President, I rise to introduce legislation to correct a longstanding flaw in the Medicare Geographic Practice Cost Index, GPCI, system that negatively impacts physicians in California and several…

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · Aug 2, 2007

Mr. President, 14 years ago, the Family and Medical Leave Act, FMLA, declared the principle that workers should never be forced to choose between the jobs they need and the families they love. In the…

Gordon H. Smith
Sen. Gordon H. SmithR-OR · Aug 2, 2007

Mr. President, I rise today to introduce The Long-Term Care Quality and Modernization Act of 2007. I am pleased to be joined by my colleague Senator Blanche Lincoln of Arkansas. As Ranking Member of…

Jeff Bingaman
Sen. Jeff BingamanD-NM · Aug 2, 2007

Mr. President, I rise today to introduce legislation reauthorizing the Rio Puerco Watershed Management Program, which became law in 1996. In the 10 years since it was formalized by Congress, the Rio…

Jon Tester
Sen. Jon TesterD-MT · Aug 2, 2007

Mr. President, I rise today with Senators Leahy and Baucus to introduce the Organic Conversion Assistance Act to help provide needed technical and conservation assistance to farmers and ranchers…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Aug 2, 2007

Mr. President, when companies make headlines today it is often for all the wrong reasons: fraud, tax avoidance, profiteering, etc. Yet many of the companies that are currently providing jobs across…

Kent Conrad
Sen. Kent ConradD-ND · Aug 2, 2007

Mr. President, our Nation's first responders are vital to protecting our citizens from everyday crime, and to keeping our citizens safe from fire and health-related emergencies. Our first responders…

Pete V. Domenici
Sen. Pete V. DomeniciR-NM · Aug 2, 2007

Mr. President, the need for targeted restoration work in the Rio Puerco watershed came to my attention during the early 1990s. Congress began funding local efforts to improve the Rio Puerco area in…

Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Aug 2, 2007

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Latest
Introduced in SenateIssued August 2, 2007

II

110th CONGRESS

1st Session

S. 1982

IN THE SENATE OF THE UNITED STATES

August 2, 2007

Mr. Sanders (for himself and Mr. Leahy) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To provide for the establishment of the United States Employee Ownership Bank, and for other purposes.

1.

Short title

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

2.

Findings

Congress finds that—

(1)

over the past 6 years, the United States has lost more than 3,000,000 decent paying manufacturing jobs;

(2)

at the end of 2006, the United States had a record-breaking trade deficit of more than $763,000,000,000, including a $232,000,000,000 trade deficit with China;

(3)

preserving and increasing decent paying jobs must be a top priority of the United States Congress;

(4)

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

(5)

just like the United States Export-Import Bank was created in 1934 during the midst of the Great Depression as a way to increase United States jobs through exports, the time has come to establish the United States Employee Ownership Bank within the Department of the Treasury to preserve and expand jobs in the United States.

3.

Establishment of United States employee ownership bank within the Department of the Treasury

(a)

Establishment required

Before the end of the 90-day period beginning on the date of enactment of this Act, the Secretary of the Treasury (in this Act referred to as the Secretary) shall establish the United States Employee Ownership Bank (in this Act referred to as the Bank) to foster increased employee ownership and greater employee participation in company decisionmaking throughout the United States.

(b)

Duties of bank

The Bank shall provide—

(1)

loans subordinated to the interests of all other creditors and loan guarantees, to employees to purchase a business through an employee stock ownership plan or eligible worker-owned cooperative, which shall be at least 51 percent employee owned; and

(2)

grants to States and nonprofit and cooperative organizations with experience in developing employee-owned businesses and worker-owned cooperatives—

(A)

to provide education and outreach to inform people about the possibilities and benefits of employee ownership of companies, gain sharing, and participation in company decisionmaking, including some financial education;

(B)

to provide technical assistance to assist employee efforts to become business owners;

(C)

to provide participation training to teach employees and employers methods of employee participation in company decisionmaking; and

(D)

to conduct objective third party pre-feasibility and feasibility studies to determine if employees who would like to start up employee stock ownership plans or worker cooperatives would be able to create a sustainable business.

(c)

Preconditions

Before the Bank makes any subordinated loan or loan guarantee under subsection (b)(1), the employees shall submit to the Bank—

(1)

a business plan that shows that—

(A)

not less than 51 percent of all interests in the company is owned or controlled by an employee stock ownership plan or eligible worker-owned cooperative;

(B)

the board of directors of the company is elected by all of the participants in the employee stock ownership plan, as well as other shareholders, or by the members of the eligible worker-owned cooperative; and

(C)

all employees receive basic information about company progress and have the opportunity to participate in day-to-day operations; and

(2)

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 margin to pay back any loan, subordinated loan, or loan guarantee that was made possible through the Bank.

(d)

Insurance of subordinated loans and loan guarantees

(1)

In general

The Bank shall, with respect to any subordinated loan or loan guarantee provided under this Act, insure such loan or loan guarantee against the nonrepayment of the outstanding balance of the loan.

(2)

Annual premiums

The Bank shall fix the annual premium for the insurance of each subordinated loan or loan guarantee under this subsection to be paid by the borrower, in such manner and in such amount as to cover no more than the cost of the insurance.

(3)

Premiums and guarantee fees available to cover losses

The premiums collected by the Bank from insurance issued under this subsection and the fees collected by the Bank for loan guarantees issued under subsection (b) shall be deposited in a fund in the Treasury, and shall be available to the Bank to cover any losses incurred by the Bank in connection with any such loan or loan guarantee.

(e)

Terms and conditions for loans and loan guarantees

Notwithstanding any other provision of law, a loan or loan guarantee under subsection (b)(1) shall—

(1)

bear interest at an annual rate of, as determined by the Secretary—

(A)

in the case of a direct loan—

(i)

the cost of borrowing to the Department of the Treasury for obligations of comparable maturity; or

(ii)

4 percent; and

(B)

in the case of a guaranteed loan, the current applicable market rate for a loan of comparable maturity; and

(2)

have a term not to exceed 12 years.

(f)

Technical assistance in the discretion of the secretary

In the case of activities under subsection (b)(2)(B), the Secretary may require the Bank—

(1)

to provide for the targeting of key groups, such as retiring business owners, unions, managers, trade associations, and community organizations;

(2)

to encourage cooperation in organizing workshops and conferences;

(3)

to provide for the preparation and distribution of materials concerning employee ownership and participation; and

(4)

to provide training workshops for personnel of State, nonprofit, and cooperative technical assistance organizations and to defray part of the costs of an annual meeting of such organizations to share their experience and best practices.

(g)

Participation training in the discretion of the secretary

In the case of activities under subsection (b)(2)(C), the Secretary may require the Bank—

(1)

to provide for courses on employee participation; and

(2)

to provide for the development and fostering of networks of employee owned companies to spread the use of successful participation techniques.

4.

Regulations

(a)

In general

Not later than 90 days after the date of enactment of this Act, the Secretary shall promulgate such regulations as are necessary to implement this Act.

(b)

Content

Regulations required by subsection (a) shall include provisions—

(1)

to ensure the safety and soundness of the Bank; and

(2)

to ensure that the Bank will not compete with commercial financial institutions;

5.

Organization of the Bank

(a)

Management

There shall be at the head of the Bank, a Director of the United States Employee Ownership Bank (in this Act referred to as the Director), who shall be appointed by, and serve at the pleasure of, the Secretary.

(b)

Staff

The Director may select, appoint, employ, and fix the compensation of such employees as are necessary to carry out the functions of the Bank.

6.

Authorization of appropriations

There are authorized to be appropriated to the Secretary of the Treasury, $100,000,000 for fiscal year 2008, and such sums as may be necessary thereafter to carry out this Act.