79-S1058 on May 2, 1979

OnTheIssues.org EXPLANATION: Provides federal loan guarantees for Employee Stock Ownership Plans for businesses where the business is moving away or going bankrupt.

OFFICIAL CONGRESSIONAL SUMMARY: A bill to preserve jobs and stabilize communities by facilitating employee or employee-community ownership of concerns that would otherwise close down, move out of the community or be sold by existing owners to unrelated outside interests, and to promote broadened stock ownership of such concerns through employee stock ownership plans, general stock ownership plans, and other broadened ownership plans.

EXCERPTS FROM BILL:

Job Preservation and Community Stabilization Act:
• Directs the Secretary of Commerce to identify those business organizations which are in danger of ceasing operation and whose closing or relocation would result in substantial unemployment and economic dislocation in the community.

Directs the Economic Development Administration (EDA) to provide loans for technical assistance and loan guarantees for startup and operating costs to a employee-community corporation in order that it may assume ownership and operation of an organization so identified.

Conditions loans upon allowing new employees to participate in acquisition of stock, and making it available to all employees on a nondiscriminatory basis.

Permits such organizations to adopt any ownership form they choose, provided that: (1) all employees of the concern will be offered an opportunity to participate in the ownership plan; and (2) employees subject to a collective bargaining agreement will be included in such an offering, unless the representing union waives uch participation.

Provides for nondiscrimination in the programs funded by this Act.