article: SECTION 1. SHORT TITLE. This Act may be cited as the ``United States Employee Ownership Bank Act''. SEC. 2. FINDINGS. The Congress finds as follows: (1) Over the past 2 years, the United States has lost more than 2,000,000 decent-paying manufacturing jobs. (2) With 14,731,000 total manufacturing jobs, the United States now has the lowest number of factory jobs since October, 1958. (3) According to Forrester Research, ``Over the next 15 years, 3,300,000 United States service industry jobs and $136,000,000,000 in wages will move offshore to countries like India, Russia, China and the Philippines. The IT industry will lead the initial overseas exodus.''. (4) At the end of 2002, the United States had a record- breaking trade deficit of $435,200,000,000, including a $103,100,000,000 trade deficit with China. (5) Preserving and increasing decent-paying jobs must be a top priority of the United States Congress. (6) Providing loan guarantees, direct loans, and technical assistance to employees to buy their own companies will preserve and increase employment in the United States. (7) 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. SEC. 3. ESTABLISHMENT OF UNITED STATES EMPLOYEE OWNERSHIP BANK WITHIN THE DEPARTMENT OF THE TREASURY. (a) Establishment Required.--Before the end of the 30-day period beginning on the date of the enactment of this Act, the Secretary of the Treasury (hereinafter in this Act referred to as the ``Secretary'') shall establish the United States Employee Ownership Bank (hereinafter referred to as the ``Bank'') to foster increased employee ownership and greater employee participation in company decision-making throughout the United States. (b) Duties of Bank.--The Secretary shall establish such Bank to provide the following: (1) 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. (2) Grants to States and nonprofit and cooperative organizations with experience in developing employee-owned businesses and worker-owned cooperatives to 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. (3) Grants to States and nonprofit and cooperative organizations with experience in developing employee-owned businesses and worker-owned cooperatives to provide technical assistance to assist employee efforts to become business owners. (4) Grants to States and nonprofit and cooperative organizations with experience in developing employee-owned businesses and worker-owned cooperatives to provide participation training to teach employees and employers methods of employee participation in company decision-making. (5) Grants to States and nonprofit and cooperative organizations with experience in developing employee-owned businesses and worker-owned cooperatives 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 make a profit. (c) Preconditions.--Before the Bank makes any subordinated loan or loan guarantee under subsection (b)(1), the employees shall submit to the Bank the following: (1) A business plan that shows that-- (A) at least 51 percent of all interests in the employee stock ownership plan or eligible worker-owned cooperative is owned or controlled by employees; (B) the Board of Directors of the employee stock ownership plan or eligible worker-owned cooperative is elected by all of the employees; and (C) all employees receive basic information about company progress and have the opportunity to participate in day-to-day operations. (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 be profitable enough to pay back any loan, subordinated loan or loan guarantee that was made possible through the United States Employee Ownership 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 the Secretary determines to be appropriate. (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) Technical Assistance in the Discretion of the Secretary.--In the case of activities under subsection (b)(3), the Secretary may require the Bank to take the following actions: (1) Provide for the targeting of key groups such as retiring business owners, unions, managers, trade associations, and community organizations. (2) Encourage cooperation in organizing workshops and conferences. (3) Provide for the preparation and distribution of materials concerning employee ownership and participation. (f) Participation Training in the Discretion of the Secretary.--In the case of activities under subsection (b)(4), the Secretary may require the Bank to take the following actions: (1) Provide for courses on employee participation. (2) Provide for the development and fostering of networks of employee owned companies to spread the use of successful participation techniques. SEC. 4. REGULATIONS TO ENSURE THE SAFETY AND SOUNDNESS OF THE UNITED STATES EMPLOYEE OWNERSHIP BANK. Before the end of the 30-day period beginning the date of the enactment of this Act, the Secretary of the Treasury shall prescribe regulations to ensure the safety and soundness of the United States Employee Ownership Bank. SEC. 5. REGULATIONS TO ENSURE THE UNITED STATES EMPLOYEE OWNERSHIP BANK WILL NOT COMPETE WITH COMMERCIAL FINANCIAL INSTITUTIONS. Before the end of the 30-day period beginning the date of the enactment of this Act, the Secretary of the Treasury shall prescribe regulations to ensure that the United States Employee Ownership Bank will not compete with commercial financial institutions. SEC. 6. 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 new subsection: ``(d) Establishment of ESOPs and EWOCs.--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 manufacturing employees to establish employee stock ownership plans or eligible worker owned cooperatives that are at least 51 percent employee-owned plans or cooperatives.''. SEC. 7. ORGANIZATION OF BANK. (a) Management.--There shall be at the head of the Bank, a Director of the United States Employee Ownership Bank (hereinafter 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 shall be necessary to carry out the functions of the Bank. SEC. 8. AUTHORIZATION OF APPROPRIATIONS. There are authorized to be appropriated to the Secretary of the Treasury $100,000,000 for each of fiscal years 2004, 2005, 2006, 2007, and 2008 to carry out the purposes of this Act.
summary: United States Employee Ownership Bank Act - Directs the Secretary of the Treasury to establish the United States Employee Ownership Bank in order to foster increased employee ownership and participation in company decision-making throughout the United States. Lists among the Bank's duties providing loans to enable employees to purchase a business through an employee stock ownership plan or eligible worker-owned cooperative that is at least 51 percent employee-owned. States that such loans are subordinated to the interests of all other creditors, loan guarantees, and technical assistance programs. Amends the Community Reinvestment Act of 1977 to provide that in assessing and taking into account 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 manufacturing employees to establish employee stock ownership plans or eligible worker owned cooperatives that are at least 51 percent employee-owned plans or cooperatives.