S 2909 ISCommentsClose CommentsPermalink

To provide State programs to encourage employee ownership and participation in business decisionmaking throughout the United States, and for other purposes.CommentsClose CommentsPermalink

December 18, 2009CommentsClose CommentsPermalink

Mr. SANDERS (for himself, Mr. LEAHY, Mr. BROWN, and Mr. MENENDEZ) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and PensionsCommentsClose CommentsPermalink

To provide State programs to encourage employee ownership and participation in business decisionmaking throughout the United States, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Worker Ownership, Readiness and Knowledge Act’ or the ‘WORK Act’.CommentsClose CommentsPermalink

SEC. 2. DEFINITIONS.

(a) In this Act:CommentsClose CommentsPermalink





(1) DIRECTOR- The term ‘Director’ means the Director of Employee Ownership and Participation.CommentsClose CommentsPermalink





(2) EXISTING PROGRAM- The term ‘existing program’ means a program, designed to promote employee ownership and employee participation in business decisionmaking, that exists on the date the Director is carrying out a responsibility authorized by this Act.CommentsClose CommentsPermalink





(3) NEW PROGRAM- The term ‘new program’ means a program, designed to promote employee ownership and employee participation in business decisionmaking, that does not exist on the date the Director is carrying out a responsibility authorized by this Act.CommentsClose CommentsPermalink





(4) OFFICE- The term ‘Office’ means the Office of Employee Ownership and Participation established under section 3.CommentsClose CommentsPermalink





(5) SECRETARY- The term ‘Secretary’ means the Secretary of Labor.CommentsClose CommentsPermalink





(6) STATE- The term ‘State’ means any of the 50 States within the United States of America.CommentsClose CommentsPermalink

SEC. 3. OFFICE OF EMPLOYEE OWNERSHIP AND PARTICIPATION.

(a) Establishment- The Secretary shall establish within the Department of Labor an Office of Employee Ownership and Participation to promote employee ownership and employee participation in business decisionmaking.CommentsClose CommentsPermalink





(b) Director- The Secretary shall appoint a Director of Employee Ownership and Participation to head the Office.CommentsClose CommentsPermalink





(c) Functions- The functions of the Director are to--CommentsClose CommentsPermalink





(1) support within the States existing programs designed to promote employee ownership and employee participation in business decisionmaking; andCommentsClose CommentsPermalink





(2) facilitate within the States the formation of new programs designed to promote employee ownership and employee participation in business decisionmaking.CommentsClose CommentsPermalink





(d) Duties- To carry out the functions enumerated in subsection (c), the Director shall--CommentsClose CommentsPermalink





(1) support new programs and existing programs by--CommentsClose CommentsPermalink





(A) making Federal grants authorized under section 5; andCommentsClose CommentsPermalink





(B)(i) acting as a clearinghouse on techniques employed by new programs and existing programs within the States, and disseminating information relating to those techniques to the programs; orCommentsClose CommentsPermalink





(ii) funding projects for information gathering on those techniques, and dissemination of that information to the programs, by groups outside the Office; andCommentsClose CommentsPermalink





(2) facilitate the formation of new programs, in ways that include holding or funding an annual conference of representatives from States with existing programs, representatives from States developing new programs, and representatives from States without existing programs.CommentsClose CommentsPermalink

SEC. 4. PROGRAMS REGARDING EMPLOYEE OWNERSHIP AND PARTICIPATION.

(a) Establishment of Program- Not later than 180 days after the date of enactment of this Act, the Secretary shall establish a program, administered by the Director, to encourage new and existing programs within the States, designed to foster employee ownership and employee participation in business decisionmaking throughout the United States.CommentsClose CommentsPermalink





(b) Purpose of Program- The purpose of the program established under subsection (a) is to encourage new and existing programs within the States that focus on--CommentsClose CommentsPermalink





(1) providing education and outreach to inform employees and employers about the possibilities and benefits of employee ownership, business ownership succession planning, and employee participation in business decisionmaking, including providing information about financial education, employee teams, open-book management, and other tools that enable employees to share ideas and information about how their businesses can succeed;CommentsClose CommentsPermalink





(2) providing technical assistance to assist employee efforts to become business owners, to enable employers and employees to explore and assess the feasibility of transferring full or partial ownership to employees, and to encourage employees and employers to start new employee-owned businesses;CommentsClose CommentsPermalink





(3) training employees and employers with respect to methods of employee participation in open-book management, work teams, committees, and other approaches for seeking greater employee input; andCommentsClose CommentsPermalink





(4) training other entities to apply for funding under this section, to establish new programs, and to carry out program activities.CommentsClose CommentsPermalink





(c) Program Details- The Secretary may include, in the program established under subsection (a), provisions that--CommentsClose CommentsPermalink





(1) in the case of activities under subsection (b)(1)--CommentsClose CommentsPermalink





(A) target key groups such as retiring business owners, senior managers, unions, trade associations, community organizations, and economic development organizations;CommentsClose CommentsPermalink





(B) encourage cooperation in the organization of workshops and conferences; andCommentsClose CommentsPermalink





(C) prepare and distribute materials concerning employee ownership and participation, and business ownership succession planning;CommentsClose CommentsPermalink





(2) in the case of activities under subsection (b)(2)--CommentsClose CommentsPermalink





(A) provide preliminary technical assistance to employee groups, managers, and retiring owners exploring the possibility of employee ownership;CommentsClose CommentsPermalink





(B) provide for the performance of preliminary feasibility assessments;CommentsClose CommentsPermalink





(C) assist in the funding of objective third-party feasibility studies and preliminary business valuations, and in selecting and monitoring professionals qualified to conduct such studies; andCommentsClose CommentsPermalink





(D) provide a data bank to help employees find legal, financial, and technical advice in connection with business ownership;CommentsClose CommentsPermalink





(3) in the case of activities under subsection (b)(3)--CommentsClose CommentsPermalink





(A) provide for courses on employee participation; andCommentsClose CommentsPermalink





(B) provide for the development and fostering of networks of employee-owned companies to spread the use of successful participation techniques; andCommentsClose CommentsPermalink





(4) in the case of training under subsection (b)(4)--CommentsClose CommentsPermalink





(A) provide for visits to existing programs by staff from new programs receiving funding under this Act; andCommentsClose CommentsPermalink





(B) provide materials to be used for such training.CommentsClose CommentsPermalink





(d) Regulations- The Secretary shall promulgate regulations pursuant to this Act that require new and existing programs established or funded under this Act to be--CommentsClose CommentsPermalink





(1) proactive in encouraging actions and activities that promote employee ownership of, and participation in, businesses; andCommentsClose CommentsPermalink





(2) comprehensive in emphasizing both employee ownership of, and participation in, businesses so as to increase productivity and broaden capital ownership.CommentsClose CommentsPermalink

SEC. 5. GRANTS.

(a) In General- In carrying out the program established under section 4, the Director may make grants for use in connection with new programs and existing programs within a State for any of the following activities:CommentsClose CommentsPermalink





(1) Education and outreach as provided in section 4(b)(1).CommentsClose CommentsPermalink





(2) Technical assistance as provided in section 4(b)(2).CommentsClose CommentsPermalink





(3) Training activities for employees and employers as provided in section 4(b)(3).CommentsClose CommentsPermalink





(4) Activities facilitating cooperation among employee-owned firms.CommentsClose CommentsPermalink





(5) Training as provided in section 4(b)(4) for new programs provided by participants in existing programs dedicated to the objectives of this Act, except that, for each fiscal year, the amount of the grants made for such training shall not exceed 10 percent of the total amount of the grants made under this Act.CommentsClose CommentsPermalink





(b) Amounts and Conditions- The Director shall determine the amount and any conditions for a grant made under this section. The amount of the grant shall be subject to subsection (f), and shall reflect the capacity of the applicant for the grant.CommentsClose CommentsPermalink





(c) Applications- Each entity desiring a grant under this section shall submit an application to the Director at such time, in such manner, and accompanied by such information as the Director may reasonably require.CommentsClose CommentsPermalink





(d) State Applications- Each State may sponsor and submit an application under subsection (c) on behalf of any local entity consisting of a unit of State or local government, State-supported institution of higher education, or nonprofit organization, meeting the requirements of this Act.CommentsClose CommentsPermalink





(e) Applications by Entities-CommentsClose CommentsPermalink





(1) ENTITY APPLICATIONS- If a State fails to support or establish a program pursuant to this Act during any fiscal year, the Director shall, in the subsequent fiscal years, allow local entities described in subsection (d) from that State to make applications for grants under subsection (c) on their own initiative.CommentsClose CommentsPermalink





(2) APPLICATION SCREENING- Any State failing to support or establish a program pursuant to this Act during any fiscal year may submit applications under subsection (c) in the subsequent fiscal years but may not screen applications by local entities described in subsection (d) before submitting the applications to the Director.CommentsClose CommentsPermalink





(f) Limitations- A recipient of a grant made under this section shall not receive, during a fiscal year, in the aggregate, more than the following amounts:CommentsClose CommentsPermalink





(1) For fiscal year 2010, $300,000.CommentsClose CommentsPermalink





(2) For fiscal year 2011, $330,000.CommentsClose CommentsPermalink





(3) For fiscal year 2012, $363,000.CommentsClose CommentsPermalink





(4) For fiscal year 2013, $399,300.CommentsClose CommentsPermalink





(5) For fiscal year 2014, $439,200.CommentsClose CommentsPermalink





(g) Annual Report- For each year, each recipient of a grant under this section shall submit to the Director a report describing how grant funds allocated pursuant to this section were expended during the 12-month period preceding the date of the submission of the report.CommentsClose CommentsPermalink

SEC. 6. OFFICE REPORTING.

Not later than the expiration of the 36-month period following the date of enactment of this Act, the Director shall prepare and submit to Congress a report--CommentsClose CommentsPermalink





(1) on progress related to employee ownership and participation in businesses in the United States; andCommentsClose CommentsPermalink





(2) containing an analysis of critical costs and benefits of activities carried out under this Act.CommentsClose CommentsPermalink

SEC. 7. AUTHORIZATIONS OF APPROPRIATIONS.

(a) In General- There are authorized to be appropriated for the purpose of making grants pursuant to section 5 the following:CommentsClose CommentsPermalink





(1) For fiscal year 2010, $3,500,000.CommentsClose CommentsPermalink





(2) For fiscal year 2011, $5,500,000.CommentsClose CommentsPermalink





(3) For fiscal year 2012, $8,000,000.CommentsClose CommentsPermalink





(4) For fiscal year 2013, $10,500,000.CommentsClose CommentsPermalink





(5) For fiscal year 2014, $13,500,000.CommentsClose CommentsPermalink





(b) Administrative Expenses- There are authorized to be appropriated for the purpose of funding the Office, for each of fiscal years 2010 through 2014, an amount not in excess of--CommentsClose CommentsPermalink





(1) $350,000; orCommentsClose CommentsPermalink





(2) 5.0 percent of the maximum amount available under subsection (a) for that fiscal year.CommentsClose CommentsPermalink