S.1058 - Voluntary Broadened Stock Ownership, Job Preservation, and Community Stabilization Act96th Congress (1979-1980)
Summary: S.1058 — 96th Congress (1979-1980)
Introduced in Senate (05/02/1979)
Voluntary Broadened Stock Ownership, Job Preservation, and Community Stabilization Act - Directs the Secretary of Commerce to conduct a continuing investigation to identify those industrial, manufacturing, business, agricultural, and service organizations which are in danger of ceasing operation or of outmigration and whose closing or relocation would result in substantial unemployment and economic dislocation in the community.
Directs the Secretary to conduct a similar program where a concern is available for purchase and the employees, or the employees and the community, wish to acquire it through certain forms of ownership and control.
Directs the Economic Development Administration (EDA), with the approval of the Secretary, to provide loans for technical assistance and loan guarantees for startup and operating costs to an employee or employee-community corporation which meets certain requirements in order that it may assume ownership and operation of an organization so identified.
Conditions loans upon, among other factors: (1) certification that the corporation will allow new employees to participate and will adopt a method for acquisition of stock of persons no longer associated with the organization for the purpose of making it available to all employees on a nondiscriminatory basis; and (2) compliance with the requirements of the Internal Revenue Code of 1954.
Directs the EDA, with the approval of the Secretary, to authorize guarantees of loans to approved employee organizations or employee-community organizations to provide equity funding for the purchase of the concern. Permits such organizations to adopt any ownership form they choose, provided that: (1) all employees of the concern will be offered an opportunity to participate in the ownership plan; and (2) employees subject to a collective bargaining agreement will be included in such an offering, unless the representing union waives, in writing, such participation.
Provides for nondiscrimination in the programs funded by this Act.
Amends the Internal Revenue Code of 1954 to allow: (1) greater employer contributions for certain purposes to employee stock ownership plans; and (2) residents of a political subdivision of a State to participate in a particular general stock ownership corporation if such distinction is warranted by such corporation's business and is nondiscriminatory.