Establishment of the advocate for employee ownership

(a)

In general

Subtitle A of title III of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1201 et seq.) is amended by adding at the end the following:

3005.

Advocate for employee ownership

(a)

In general

The Secretary of Labor shall appoint an Advocate for Employee Ownership within the Employee Ownership Initiative established under section 346(b)(1) of the SECURE 2.0 Act of 2022 (division T of the Consolidated Appropriations Act, 2023 (Public Law 117–328)). The appointment shall be made without regard to the provisions of title 5, United States Code, relating to appointments in the competitive service or Senior Executive Service. (b)

Duties

The Advocate for Employee Ownership shall— (1) consult with the head of the Employee Ownership Initiative established under section 346(b)(1) of the SECURE 2.0 Act of 2022 (division T of the Consolidated Appropriations Act, 2023 (Public Law 117–328)); (2) act as a liaison between the Department of Labor, employee ownership advocates, employers considering employee ownership, workers interested in employee ownership, and other stakeholders, including employee stock ownership plan sponsors and participants; (3) provide public education and assistance related to the expansion of employee ownership through the establishment and maintenance of practices that promote employee ownership, including the use of employee stock ownership plans; (4) provide assistance for purposes of resolving a dispute between the Department of Labor and any employee stock ownership plan sponsor, fiduciary, or participant and help facilitate communication between such entities and the Department of Labor for such purposes; (5) identify and recommend potential legislative and administrative changes, including related to access to capital issues, to increase practices that promote employee ownership plans, including the use of employee stock ownership plans; and (6) coordinate with other Federal agencies, including the Administrator of the Small Business Administration, the Secretary of the Treasury, and the Secretary of Commerce, and State and local governments on outreach and education to inform employees and employers about the possibilities and benefits of employee ownership as a business ownership succession planning option. (c)

Consultation and input

The Secretary of Labor shall solicit advice and input from the Advocate for Employee Ownership in developing regulations or interpretations of this Act that relate to employee stock ownership plans. (d)

Compensation

The Advocate for Employee Ownership shall be entitled to compensation at the same rate as the rate of basic pay in effect for a position at level V of the Executive Schedule under section 5316 of title 5, United States Code. (e)

Annual report

(1)

In general

Not later than December 31 of each calendar year beginning after the date of enactment of this section, the Advocate for Employee Ownership shall submit a report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Workforce of the House of Representatives on the activities of the Office of the Advocate for Employee Ownership during the fiscal year ending during such calendar year, including the contents described in paragraph (2). (2)

Contents

Each report submitted under paragraph (1) shall— (A) summarize the assistance requests received by the Advocate for Employee Ownership during the fiscal year ending during the calendar year of such report; (B) describe the activities, including the activities described under paragraphs (3) and (4) of subsection (b), and evaluate the effectiveness of the Advocate for Employee Ownership during such fiscal year; (C) describe any significant problems the Advocate for Employee Ownership has identified during such fiscal year and ways to mitigate such problems; (D) contain recommendations for any administrative or legislative action that may be appropriate to resolve barriers to, and to incentivize, practices that promote employee ownership, including the use of employee stock ownership plans; and (E) describe progress related to employee ownership in businesses in the United States. (3)

Concurrent submission

The Advocate for Employee Ownership shall submit a copy of each report submitted under paragraph (1) to the Secretary of Labor, and any other appropriate official, at the same time such report is submitted under paragraph (1). (4)

Public availability

The Advocate for Employee Ownership shall make a copy of each report submitted under paragraph (1) available to the public. (5)

Definition of employee stock ownership plan

For purposes of this section, the term employee stock ownership plan has the meaning given the term in section 4975(e)(7) of the Internal Revenue Code of 1986. (f)

Authorization of appropriations

There is authorized to be appropriated such sums as may be necessary to carry out subsection (d).

(b)

Clerical amendment

The table of contents in section 1 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 note) is amended by inserting after the item relating to section 3004 the following new item:

Sec. 3005. Advocate for employee ownership.