[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 499 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 499

   To amend the Worker Adjustment and Retraining Notification Act to 
  require an employer which is terminating its business to offer its 
              employees an employee stock ownership plan.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 1999

Mr. Traficant introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
   To amend the Worker Adjustment and Retraining Notification Act to 
  require an employer which is terminating its business to offer its 
              employees an employee stock ownership plan.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Employee Ownership Enhancement 
Act''.

SEC. 2. EMPLOYEE STOCK OWNERSHIP PLAN.

    Section 3 of the Worker Adjustment and Retraining Notification Act 
(29 U.S.C. 2102) is amended--
            (1) in the section head, by adding at the end the 
        following: ``AND EMPLOYEE STOCK OWNERSHIP PLANS''; and
            (2) by adding at the end the following:
    ``(e) Employee Stock Ownership Plans.--
            ``(1) General rule.--If an employer orders a plant closing 
        in connection with the termination of its business the employer 
        shall offer its employees an opportunity to purchase the 
        business through an employee stock ownership plan as defined in 
        section 4975(e)(7) of the Internal Revenue Code of 1986. The 
        value of the business which is to be the subject of such plan 
        shall be its fair market value as determined by experts in 
        appraisal and such business. The cost of the appraisal shall be 
        borne by the employees.
            ``(2) Exemptions.--The requirement of paragraph (1) shall 
        not apply--
                    ``(A) if an employer orders a plant closing but 
                will retain the assets of such plant to continue or 
                begin a business; or
                    ``(B) if an employer orders a plant closing and 
                such employer intends to continue the business 
                conducted at such plant at another plant.''.
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