S.1645 - American Ownership and Resilience Act (119th Congress)
Summary
The American Ownership and Resilience Act aims to establish a domestic ownership investment facility. This facility would provide leverage to licensed ownership investment companies, encouraging investments in employee stock ownership plans (ESOPs) and worker-owned cooperatives. The Act outlines definitions, organizational requirements, capital requirements, and borrowing power for these investment companies, along with reporting and oversight mechanisms.
Expected Effects
The Act intends to promote employee ownership and business resilience by facilitating access to capital for covered business concerns. This could lead to increased employee participation in ownership, potentially improving worker well-being and productivity. The Act also includes provisions for independent trustees and financial advisors to protect employee interests during transactions.
Potential Benefits
- Increased employee ownership through ESOPs and worker cooperatives.
- Enhanced access to capital for businesses transitioning to employee ownership.
- Potential for improved worker productivity and job satisfaction.
- Support for independently owned and operated enterprises.
- Promotion of business resilience through employee participation.
Potential Disadvantages
- Potential for increased government debt due to leverage guarantees.
- Risk of losses to the government if ownership investment companies fail.
- Complexity of regulations may create administrative burdens.
- Possible conflicts of interest despite independent trustee requirements.
- Sunset provision may limit the long-term impact of the facility.
Constitutional Alignment
The bill's focus on promoting economic growth and general welfare aligns with the spirit of the Preamble of the US Constitution, which seeks to "promote the general Welfare." The establishment of a government-backed investment facility falls under the purview of Congress's power to regulate commerce and provide for the general welfare, as outlined in Article I, Section 8. The Act does not appear to infringe upon any specific individual rights or liberties protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).