[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1728 Reported in Senate (RS)]
<DOC>
Calendar No. 157
119th CONGRESS
1st Session
S. 1728
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.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Employee Ownership
Representation Act of 2025''.</DELETED>
<DELETED>SEC. 2. EXPANSION OF THE ERISA ADVISORY COUNCIL.</DELETED>
<DELETED> (a) In General.--Section 512(a) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1142(a)) is amended--</DELETED>
<DELETED> (1) in paragraph (1)--</DELETED>
<DELETED> (A) by striking ``fifteen members'' and
inserting ``17 members''; and</DELETED>
<DELETED> (B) by striking ``eight members'' and
inserting ``10 members''; and</DELETED>
<DELETED> (2) in paragraph (3), by inserting ``two shall be
representatives of employee ownership organizations;'' after
``pension plan;''.</DELETED>
<DELETED> (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).</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Employee Ownership Representation
Act of 2025''.
SEC. 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).
SEC. 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).
SEC. 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.
SEC. 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:
``SEC. 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.''.
Calendar No. 157
119th CONGRESS
1st Session
S. 1728
_______________________________________________________________________
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.
_______________________________________________________________________
September 11, 2025
Reported with an amendment