I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘National Worker Coop5 erative Development and Support Act’’. 

6 SEC. 2. PROMOTION OF WORKER-OWNED COOPERATIVE 

7 BUSINESS BY CERTAIN AGENCIES. 

8 The head of each covered agency shall— 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
2 

•HR 7721 IH

1 (1) implement programs and initiatives to sup2 port and expand worker-owned cooperative busi3 nesses; 

4 (2) periodically review existing regulations and 

5 propose revisions to such regulations to remove bar6 riers that impede the formation and expansion of 

7 worker-owned cooperative businesses; 

8 (3) facilitate access to capital for worker-owned 

9 cooperative businesses, including— 

10 (A) exploring innovative financing options; 

11 and 

12 (B) using existing programs to support 

13 worker-owned cooperative businesses; 

14 (4) coordinate with the United States Council 

15 on Worker Cooperatives established under section 4; 

16 (5) develop, use, and contribute to the Federal 

17 strategy described in section 4(d)(1); 

18 (6) conduct and support research with respect 

19 to— 

20 (A) the economic impact of worker-owned 

21 cooperative businesses; 

22 (B) barriers to growth for worker-owned 

23 cooperative businesses; and 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
3 

•HR 7721 IH

1 (C) the effectiveness of existing programs 

2 that relate to worker-owned cooperative busi3 nesses; 

4 (7) provide education, outreach, and technical 

5 assistance to assist existing businesses to transition 

6 to worker-owned cooperative businesses; 

7 (8) engage with businesses, nonprofit organiza8 tions, and academic institutions to identify best 

9 practices to enhance the use worker-owned coopera10 tive businesses; and 

11 (9) provide relevant training for Federal work12 ers to integrate worker-owned cooperative businesses 

13 into existing systems of Federal Government. 

14 SEC. 3. EDUCATION AND OUTREACH RELATING TO WORK15 ER-OWNED COOPERATIVE BUSINESS. 

16 The Administrator of the Small Business Administra17 tion shall— 

18 (1) develop educational materials relating to 

19 worker-owned cooperative businesses that are— 

20 (A) accessible online and in print; and 

21 (B) translated into multiple languages; and 

22 (2) implement an outreach program relating to 

23 worker-owned cooperative businesses in communities 

24 where English is not the predominant language. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
4 

•HR 7721 IH

1 SEC. 4. ESTABLISHMENT OF THE UNITED STATES COUNCIL 

2 ON WORKER COOPERATIVES. 

3 (a) IN GENERAL.—Not later than 180 days after the 

4 date of enactment of this section, the Secretary of Labor 

5 shall establish the United States Council on Worker Co6 operatives (in this section referred to as the ‘‘Council’’) 

7 to coordinate, across the Federal Government, activities 

8 relating to the formation and expansion of worker-owned 

9 cooperative businesses. 

10 (b) CHAIR.—The Secretary of Labor shall— 

11 (1) serve as the chair of the Council; or 

12 (2) appoint a designee to serve as the chair of 

13 the Council. 

14 (c) MEMBERS.—The Council shall be comprised of 

15 the following members: 

16 (1) The Administrator of the Small Business 

17 Administration. 

18 (2) The Commissioner of Internal Revenue. 

19 (3) The Secretary of the Treasury. 

20 (4) The Secretary of Commerce. 

21 (5) A representative from the National Eco22 nomic Council. 

23 (6) The Director of the Domestic Policy Coun24 cil. 

25 (7) A representative chosen by the Secretary of 

26 Agriculture to represent the Interagency Working 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
5 

•HR 7721 IH

1 Group on Cooperative Development of the Depart2 ment of Agriculture, as established under section 

3 310B(e)(12) of the Consolidated Farm and Rural 

4 Development Act (7 U.S.C. 1932(e)(12)). 

5 (8) Any other members as determined by the 

6 Secretary of Labor. 

7 (d) RESPONSIBILITIES.—The Council shall— 

8 (1) develop a Federal strategy to incorporate 

9 worker-owned cooperative businesses as a tool for 

10 national economic development; 

11 (2) identify regulatory barriers within the Fed12 eral Government to the formation and expansion of 

13 worker-owned cooperative businesses; 

14 (3) propose solutions to the barriers identified 

15 in paragraph (2) to form and expand worker-owned 

16 cooperative businesses in the United States; and 

17 (4) coordinate— 

18 (A) the availability of data and research 

19 relating to— 

20 (i) barriers to entry for the creation of 

21 worker-owned cooperative businesses; and 

22 (ii) benefits of worker-owned coopera23 tive businesses; 

24 (B) educational initiatives across Federal 

25 agencies to increase awareness and underVerDate Sep 11 2014 06:11 Apr 03, 2024 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7721.IH H7721

kjohnson on DSK7ZCZBW3PROD with $$_JOB
6 

•HR 7721 IH

1 standing of the worker-owned cooperative busi2 ness model; and 

3 (C) between existing and future initiatives 

4 relating to worker-owned cooperative businesses 

5 to avoid duplication or conflicting objectives. 

6 (e) REPORT.—Not later than 2 years after the date 

7 of enactment of this section, and each year thereafter, the 

8 Council shall submit to the Congress and publish on a 

9 public website a report that includes a description of— 

10 (1) any progress made by the Council with re11 spect to the responsibilities described in subsection 

12 (d); 

13 (2) policy recommendations relating to the pro14 motion of the formation and expansion of worker15 owned cooperative businesses; and 

16 (3) the successes, best practices, and challenges 

17 that Federal agencies have in the promotion of the 

18 formation and expansion of worker-owned coopera19 tive businesses and initiatives. 

20 (f) SUNSET.—The Council shall terminate on the 

21 date that is 10 years after the date of enactment of this 

22 section. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
7 

•HR 7721 IH

1 SEC. 5. SMALL BUSINESS INTERMEDIARY LENDING PILOT 

2 PROGRAM FOR WORKER-OWNED COOPERA3 TIVE BUSINESS. 

4 Section 7(l) of the Small Business Act (15 U.S.C. 

5 636(l)) is amended— 

6 (1) in paragraph (1), by striking subparagraph 

7 (A) and inserting the following: 

8 ‘‘(A) the term ‘eligible intermediary’ means 

9 a cooperative (as defined in subsection (a)(35)); 

10 and’’; and 

11 (2) in paragraph (4)(G)— 

12 (A) by striking ‘‘2011, 2012, and 2013’’ 

13 and inserting ‘‘2024 through 2034’’; and 

14 (B) in clause (ii), by striking 

15 ‘‘$20,000,000’’ and inserting ‘‘$60,000,000’’. 

16 SEC. 6. CDFI EDUCATION AND GUIDANCE ABOUT THE 

17 VALUE OF WORKER-OWNED COOPERATIVE 

18 BUSINESS. 

19 Section 108(b)(1) of the Riegle Community Develop20 ment and Regulatory Improvement Act of 1994 (12 

21 U.S.C. 4707(b)(1)) is amended— 

22 (1) in subparagraph (E)(ii)(II), by striking 

23 ‘‘and’’ at the end; 

24 (2) by redesignating subparagraph (F) as sub25 paragraph (G); and 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
8 

•HR 7721 IH

1 (3) by inserting after subparagraph (E) the fol2 lowing: 

3 ‘‘(F) the provision of education and facili4 tation of services to assist in the establishment 

5 and management of worker-owned cooperative 

6 businesses; and’’. 

7 SEC. 7. DEFINITIONS. 

8 In this Act: 

9 (1) COVERED AGENCY.—The term ‘‘covered 

10 agency’’ means the following: 

11 (A) The Small Business Administration. 

12 (B) The Internal Revenue Service. 

13 (C) The Department of the Treasury. 

14 (D) The Department of Commerce. 

15 (E) The Department of Agriculture. 

16 (F) The Department of Labor. 

17 (2) WORKER-OWNED COOPERATIVE BUSI18 NESS.—The term ‘‘worker-owned cooperative busi19 ness’’ means— 

20 (A) any entity that is— 

21 (i) organized under a State law relat22 ing to worker cooperatives; and 

23 (ii) majority owned or controlled by 

24 employees of such entity; or 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
9 

•HR 7721 IH

1 (B) an ‘‘eligible worker-owned coopera2 tive’’, as such term is defined in section 1042(c) 

3 of the Internal Revenue Code of 1986. 

Æ 


kjohnson on DSK7ZCZBW3PROD with $$_JOB