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