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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7721 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 7721

To direct the heads of certain Federal agencies to develop and support 
      worker-owned cooperative businesses, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2024

  Mr. Khanna (for himself, Mr. Bowman, and Ms. Tlaib) introduced the 
following bill; which was referred to the Committee on Small Business, 
and in addition to the Committees on Financial Services, and Energy and 
Commerce, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To direct the heads of certain Federal agencies to develop and support 
      worker-owned cooperative businesses, and for other purposes.

    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 ``National Worker Cooperative 
Development and Support Act''.

SEC. 2. PROMOTION OF WORKER-OWNED COOPERATIVE BUSINESS BY CERTAIN 
              AGENCIES.

    The head of each covered agency shall--
            (1) implement programs and initiatives to support and 
        expand worker-owned cooperative businesses;
            (2) periodically review existing regulations and propose 
        revisions to such regulations to remove barriers that impede 
        the formation and expansion of worker-owned cooperative 
        businesses;
            (3) facilitate access to capital for worker-owned 
        cooperative businesses, including--
                    (A) exploring innovative financing options; and
                    (B) using existing programs to support worker-owned 
                cooperative businesses;
            (4) coordinate with the United States Council on Worker 
        Cooperatives established under section 4;
            (5) develop, use, and contribute to the Federal strategy 
        described in section 4(d)(1);
            (6) conduct and support research with respect to--
                    (A) the economic impact of worker-owned cooperative 
                businesses;
                    (B) barriers to growth for worker-owned cooperative 
                businesses; and
                    (C) the effectiveness of existing programs that 
                relate to worker-owned cooperative businesses;
            (7) provide education, outreach, and technical assistance 
        to assist existing businesses to transition to worker-owned 
        cooperative businesses;
            (8) engage with businesses, nonprofit organizations, and 
        academic institutions to identify best practices to enhance the 
        use worker-owned cooperative businesses; and
            (9) provide relevant training for Federal workers to 
        integrate worker-owned cooperative businesses into existing 
        systems of Federal Government.

SEC. 3. EDUCATION AND OUTREACH RELATING TO WORKER-OWNED COOPERATIVE 
              BUSINESS.

    The Administrator of the Small Business Administration shall--
            (1) develop educational materials relating to worker-owned 
        cooperative businesses that are--
                    (A) accessible online and in print; and
                    (B) translated into multiple languages; and
            (2) implement an outreach program relating to worker-owned 
        cooperative businesses in communities where English is not the 
        predominant language.

SEC. 4. ESTABLISHMENT OF THE UNITED STATES COUNCIL ON WORKER 
              COOPERATIVES.

    (a) In General.--Not later than 180 days after the date of 
enactment of this section, the Secretary of Labor shall establish the 
United States Council on Worker Cooperatives (in this section referred 
to as the ``Council'') to coordinate, across the Federal Government, 
activities relating to the formation and expansion of worker-owned 
cooperative businesses.
    (b) Chair.--The Secretary of Labor shall--
            (1) serve as the chair of the Council; or
            (2) appoint a designee to serve as the chair of the 
        Council.
    (c) Members.--The Council shall be comprised of the following 
members:
            (1) The Administrator of the Small Business Administration.
            (2) The Commissioner of Internal Revenue.
            (3) The Secretary of the Treasury.
            (4) The Secretary of Commerce.
            (5) A representative from the National Economic Council.
            (6) The Director of the Domestic Policy Council.
            (7) A representative chosen by the Secretary of Agriculture 
        to represent the Interagency Working Group on Cooperative 
        Development of the Department of Agriculture, as established 
        under section 310B(e)(12) of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1932(e)(12)).
            (8) Any other members as determined by the Secretary of 
        Labor.
    (d) Responsibilities.--The Council shall--
            (1) develop a Federal strategy to incorporate worker-owned 
        cooperative businesses as a tool for national economic 
        development;
            (2) identify regulatory barriers within the Federal 
        Government to the formation and expansion of worker-owned 
        cooperative businesses;
            (3) propose solutions to the barriers identified in 
        paragraph (2) to form and expand worker-owned cooperative 
        businesses in the United States; and
            (4) coordinate--
                    (A) the availability of data and research relating 
                to--
                            (i) barriers to entry for the creation of 
                        worker-owned cooperative businesses; and
                            (ii) benefits of worker-owned cooperative 
                        businesses;
                    (B) educational initiatives across Federal agencies 
                to increase awareness and understanding of the worker-
                owned cooperative business model; and
                    (C) between existing and future initiatives 
                relating to worker-owned cooperative businesses to 
                avoid duplication or conflicting objectives.
    (e) Report.--Not later than 2 years after the date of enactment of 
this section, and each year thereafter, the Council shall submit to the 
Congress and publish on a public website a report that includes a 
description of--
            (1) any progress made by the Council with respect to the 
        responsibilities described in subsection (d);
            (2) policy recommendations relating to the promotion of the 
        formation and expansion of worker-owned cooperative businesses; 
        and
            (3) the successes, best practices, and challenges that 
        Federal agencies have in the promotion of the formation and 
        expansion of worker-owned cooperative businesses and 
        initiatives.
    (f) Sunset.--The Council shall terminate on the date that is 10 
years after the date of enactment of this section.

SEC. 5. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM FOR WORKER-
              OWNED COOPERATIVE BUSINESS.

    Section 7(l) of the Small Business Act (15 U.S.C. 636(l)) is 
amended--
            (1) in paragraph (1), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) the term `eligible intermediary' means a 
                cooperative (as defined in subsection (a)(35)); and''; 
                and
            (2) in paragraph (4)(G)--
                    (A) by striking ``2011, 2012, and 2013'' and 
                inserting ``2024 through 2034''; and
                    (B) in clause (ii), by striking ``$20,000,000'' and 
                inserting ``$60,000,000''.

SEC. 6. CDFI EDUCATION AND GUIDANCE ABOUT THE VALUE OF WORKER-OWNED 
              COOPERATIVE BUSINESS.

    Section 108(b)(1) of the Riegle Community Development and 
Regulatory Improvement Act of 1994 (12 U.S.C. 4707(b)(1)) is amended--
            (1) in subparagraph (E)(ii)(II), by striking ``and'' at the 
        end;
            (2) by redesignating subparagraph (F) as subparagraph (G); 
        and
            (3) by inserting after subparagraph (E) the following:
                    ``(F) the provision of education and facilitation 
                of services to assist in the establishment and 
                management of worker-owned cooperative businesses; 
                and''.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) Covered agency.--The term ``covered agency'' means the 
        following:
                    (A) The Small Business Administration.
                    (B) The Internal Revenue Service.
                    (C) The Department of the Treasury.
                    (D) The Department of Commerce.
                    (E) The Department of Agriculture.
                    (F) The Department of Labor.
            (2) Worker-owned cooperative business.--The term ``worker-
        owned cooperative business'' means--
                    (A) any entity that is--
                            (i) organized under a State law relating to 
                        worker cooperatives; and
                            (ii) majority owned or controlled by 
                        employees of such entity; or
                    (B) an ``eligible worker-owned cooperative'', as 
                such term is defined in section 1042(c) of the Internal 
                Revenue Code of 1986.
                                 <all>
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