Bill > HR3248

This bill establishes a domestic ownership succession investment facility administered by the Department of Commerce to encourage employee stock ownership plans (ESOPs) and worker-owned cooperatives. The facility will provide leverage (government-guaranteed financing) to licensed ownership investment companies that make investments in businesses where employees either own a majority of the company or have a significant ownership stake. Key provisions include creating a licensing process for these investment companies, setting capital requirements of at least $10 million, limiting total leverage to $5 billion per fiscal year, and establishing strict rules to protect employee interests. The bill requires detailed reporting on investments, mandates independent trustees for transactions, and includes provisions to prevent conflicts of interest. Investment companies must focus on helping businesses transition to employee ownership, with at least half of their investments supporting direct employee ownership transfers. The facility has a sunset provision, ending new licenses after 20 years, but allowing existing entities to continue operating. The bill aims to broaden employee ownership by providing specialized financing and regulatory support for businesses looking to sell ownership stakes to their workers.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/3248/all-info