119-s1728

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1728 Engrossed in Senate

    (ES) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1728

_______________________________________________________________________

 AN ACT

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,

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.''.

 Passed the Senate October 9, 2025.

 Attest:

 Secretary.
119th CONGRESS

 1st Session

 S. 1728

_______________________________________________________________________

 AN ACT

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.