National Worker Cooperative Development and Support Act
Impact
The intended impact of HB 7721 is significant on state and federal economic development policies. By promoting worker ownership, the bill seeks to encourage a more equitable distribution of wealth and increase economic stability in local communities. It is expected to create a conducive environment for the growth of cooperative businesses, potentially leading to stronger local economies. Additionally, by involving various federal agencies like the Small Business Administration and the Department of Labor, the bill aims to create a comprehensive federal strategy to bolster cooperative business models.
Summary
House Bill 7721, known as the National Worker Cooperative Development and Support Act, aims to promote and support worker-owned cooperative businesses across the United States. The bill mandates the heads of certain federal agencies to implement programs and initiatives aimed at expanding these businesses. Among other responsibilities, the agencies are directed to facilitate access to capital for worker-owned cooperatives, remove regulatory barriers to their formation, and ensure educational outreach is available to help existing businesses transition to cooperative models.
Contention
While the bill has strong support from various stakeholders advocating for worker rights and cooperative businesses, it may also face opposition from those concerned about the overall economic implications. There may be discussions around the effectiveness of government intervention in business formations. Critics might argue that federal support could lead to inefficiencies or increased government spending without tangible results. Concerns may also arise regarding the potential challenges existing businesses will face when transitioning to a worker-owned model, including the complex logistics and potential financial instability during the transition period.
To support the national defense and economic security of the United States by supporting vessels, ports, and shipyards of the United States and the U.S. maritime workforce.
Expressing support for the designation of October 2023 as "National Co-Op Month" and commending the cooperative business model and the member-owners, businesses, employees, farmers, ranchers, and practitioners who use the cooperative business model to positively impact the economy and society.