Sec. 5. Modifying unconditional ownership and control requirements for certain employee-owned small business concerns
864 words·~4 min read·
/bill/118/hr/3383/ih/section-5A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In this subsection— the term Administrator means the Administrator of the Small Business Administration; the term eligible worker-owned cooperative has the meaning given that term in section 1042(c) of the Internal Revenue Code of 1986; and the term employee stock ownership plan has the meaning given that term in section 4975(e) of the Internal Revenue Code of 1986. It is the sense of Congress that— employee stock ownership plans and eligible worker-owned cooperatives have unique ownership structures that create barriers to accessing set-aside procurement programs due to unconditional ownership and control requirements; and the ownership structures of an employee stock ownership plan or an eligible worker-owned cooperative should not prevent an otherwise eligible entity from accessing set-aside procurement programs.
The Administrator, in coordination with stakeholders, including women-owned small business third-party certifiers and relevant Federal agencies, shall study and recommend alternatives to unconditional ownership and control requirements for employee stock ownership plans and eligible worker-owned cooperatives that would enable access to set-aside procurement programs. Not later than 180 days after the date of enactment of this Act, the Administrator shall submit to Congress the recommendations developed under subparagraph
(A)and a plan to implement the recommendations for all set-aside procurement programs, including identifying any applicable statutory changes necessary to implement such recommendations. Not later than 180 days after the submission of the report required under subsection (a)(3)(B), the Administrator of the Small Business Administration shall issue or revise any applicable rules to carry out the recommendations formed in the report. Section 8(a) of the Small Business Act ( 15 U.S.C. 637(a) ) is amended by adding at the end the following: For the purposes of determining ownership and control of a concern under this subsection for award of a contract through a competition restricted to small business concerns owned and controlled by socially and economically disadvantaged individuals, any interest in such concern held by an employee stock ownership plan or an eligible worker-owned cooperative shall be treated in the same manner as an interest held by the socially and economically disadvantaged individuals upon whom eligibility is based if— such concern was a socially and economically disadvantaged small business concern prior to the sale to an employee stock ownership plan or an eligible worker-owned cooperative; and the chief corporate officer and a majority of the board of directors of such concern are socially and economically disadvantaged individuals. The requirements of subparagraph
(A)shall apply for the 2-year period beginning on the date on which the majority of the stock of such concern was acquired by an employee stock ownership plan or eligible worker-owned cooperative. . Section 8(m) of the Small Business Act ( 15 U.S.C. 637(m) ) is amended by adding at the end the following: Notwithstanding any other provision of law, for the purposes of determining ownership and control of a concern under this subsection for award of a contract through a competition restricted to small business concerns owned and controlled by women, any interest in such concern held by an employee stock ownership plan or an eligible worker-owned cooperative, shall be treated in the same manner as an interest held by the women upon whom eligibility is based if— such concern was a small business concern owned and controlled by women prior to the sale to an employee stock ownership plan or an eligible worker-owned cooperative; and the chief corporate officer and a majority of the board of directors of such concern are women. The requirements of subparagraph
(A)shall apply for the 2-year period beginning on the date on which the majority of the stock of such concern was acquired by an employee stock ownership plan or eligible worker-owned cooperative. . Section 36 of the Small Business Act ( 15 U.S.C. 657f ) by adding at the end the following: Notwithstanding any other provision of law, for the purposes of determining ownership and control of a concern under this section for award of a contract through a competition restricted to small business concerns owned and controlled by service-disabled veterans, any interest in such concern held by an employee stock ownership plan or an eligible worker-owned cooperative, shall be treated in the same manner as an interest held by the service-disabled veterans upon whom eligibility is based if— such concern was a small business concern owned and controlled by service-disabled veterans prior to the sale to an employee stock ownership plan or an eligible worker-owned cooperative; and the chief corporate officer and a majority of the board of directors of such concern are service-disabled veterans. The requirements of paragraph
(1)shall apply for the 2-year period beginning on the date on which the majority of the stock of such concern was acquired by an employee stock ownership plan or eligible worker-owned cooperative. . Section 3 of the Small Business Act is amended by adding at the end the following: In this Act, the term employee stock ownership plan has the meaning given that term in section 4975(e)(7) of the Internal Revenue Code of 1986 ( 26 U.S.C. 4975(e)(7) ). In this Act, the term eligible worker-owned cooperative has the meaning given that term in section 1042(c) of the Internal Revenue Code of 1986. .
Connectionstraces to 3
Citation graph
cites case law
Sec. 5
Modifying unconditional ownership and control requirements for certain employee-owned small business concerns
Cites 3Cited by 0 across 0 sources