II Calendar No. 157 119th CONGRESS 1st Session S. 1728 IN THE SENATE OF THE UNITED STATES May 13, 2025 Mr. Cassidy (for himself, Ms. Hassan , and Mr. Hickenlooper ) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions September 11, 2025 Reported by Mr. Cassidy , with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To amend the Employee Retirement Income Security Act of 1974 to expand the membership of the Advisory Council on Employee Welfare and Pension Benefit Plans to include representatives of employee ownership organizations.

1. Short title This Act may be cited as the Employee Ownership Representation Act of 2025 . 2. Expansion of the ERISA Advisory Council (a) In general Section 512(a) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1142(a) ) is amended— (1) in paragraph (1)— (A) by striking fifteen members and inserting 17 members ; and (B) by striking eight members and inserting 10 members ; and (2) in paragraph (3), by inserting two shall be representatives of employee ownership organizations; after pension plan; . (b) Effective date Not later than 1 year after the date of enactment of this Act, the Secretary of Labor shall nominate the first 2 representatives of employee ownership organizations authorized to serve as members of the Advisory Council on Employee Welfare and Pension Benefit Plans under section 512(a) of the Employee Retirement Income Security Act of 1974 (29 1142(a)), as amended by subsection (a).

1. Short title This Act may be cited as the Employee Ownership Representation Act of 2025 . 2. Expansion of the ERISA Advisory Council (a) In general Section 512(a) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1142(a) ) is amended— (1) in paragraph (1)— (A) by striking fifteen members and inserting 17 members ; and (B) by striking eight members and inserting 10 members ; and (2) in paragraph (3), by inserting two shall be representatives of employee ownership organizations; after pension plan; . (b) Effective date Not later than 1 year after the date of enactment of this Act, the Secretary of Labor shall nominate the first 2 representatives of employee ownership organizations authorized to serve as members of the Advisory Council on Employee Welfare and Pension Benefit Plans under section 512(a) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1142(a) ), as amended by subsection (a). 3. Office of Employee Ownership (a) Establishment of the Office of Employee Ownership (1) In general Not later than 90 days after the date of enactment of this Act, the Secretary of Labor shall establish the Office of Employee Ownership in the Department of Labor, outside of the Employee Benefits Security Administration. (2) Director The Secretary of Labor shall appoint the Director of the Office of Employee Ownership to serve as the head of the Office at the pleasure of the Secretary of Labor. (3) Staff The Director of the Office of Employee Ownership may select, appoint, and employ such employees as are necessary to carry out the functions of the Office. (b) Functions The Director of the Office of Employee Ownership shall be responsible for carrying out the Employee Ownership Initiative established under section 346 of the SECURE 2.0 Act of 2022 ( 29 U.S.C. 3228 ). 4. Advisory Council on Employee Ownership (a) In general (1) Establishment There is hereby established an Advisory Council on Employee Ownership (hereinafter in this section referred to as the Council ) consisting of 7 members appointed by the Secretary of Labor. (2) Membership (A) In general Of the 7 members of the Council— (i) 4 shall be appointed to represent employees; (ii) 1 shall be appointed to represent companies that have established an employee stock ownership plan or eligible worker-owned cooperative; (iii) 1 shall be appointed to represent employee stock ownership plan providers; and (iv) 1 shall be appointed to represent associations or other membership organizations for employee stock ownership plans or eligible worker-owned cooperatives. (B) Political affiliation Not more than 4 members of the Council shall be members of the same political party. (3) Terms Members of the Council shall serve for terms of 2 years. (4) Appointment; reappointment A member of the Council may be reappointed to serve additional terms. (5) Vacancies A member of the Council appointed to fill a vacancy shall be appointed only for the remainder of such term. (6) Quorum A majority of members of the Council shall constitute a quorum and action shall be taken only by a majority vote of those present and voting. (b) Duties and functions (1) In general It shall be the duty of the Council to advise the Secretary of Labor with respect to the carrying out of the functions of the Secretary of Labor under this Act and to submit to the Secretary of Labor recommendations with respect to carrying out such duties. (2) Meetings The Council shall meet at least 4 times each year and at such other times as the Secretary of Labor requests. (3) Report The Council shall annually submit a report to the Secretary of Labor on the recommendations described in paragraph (1). (c) Executive Secretary; Secretarial and clerical services The Secretary of Labor shall furnish to the Council an Executive Secretary and such secretarial, clerical, and other services as are determined necessary to conduct the business of the Council. The Secretary of Labor may call upon other agencies of the Federal Government for statistical data, reports, and other information which will assist the Council in the performance of its duties. (d) Compensation (1) In general Members of the Council shall each be entitled to receive the daily equivalent of the annual rate of basic pay in effect for level IV of the Executive Schedule under section 5315 of title 5, United States Code for each day (including travel time) during which they are engaged in the actual performance of duties vested in the Council. (2) Travel expenses While away from their homes or regular places of business in the performance of services for the Council, members of the Council shall be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703 of title 5, United States Code. (e) Termination Section 1013 of title 5, United States Code, relating to termination, shall not apply to the Council. (f) Definitions In this section: (1) Eligible worker-owned cooperative The term eligible worker-owned cooperative has the meaning given the term in section 1042(c)(2) of the Internal Revenue Code of 1986. (2) Employee stock ownership plan The term employee stock ownership plan has the meaning given the term in section 4975(e)(7) of the Internal Revenue Code of 1986. 5. 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. .

September 11, 2025 Reported with an amendment