AN ACT

To promote resilient business design and business models in the United States, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

            (a) SHORT TITLE.—This act may be cited as the “Resilient Enterprise Act.”

SEC. 2. FINDINGS AND DECLARATIONS.

(a) FINDINGS.  Congress finds that––

(1) American businesses have and will continue to play a vital role in addressing social and environmental challenges;

(2) A growing number of enterprises are adopting sustainable business models which build generational wealth, create jobs, strengthen communities, and address climate issues;

(3) These business models include doughnut economics, regenerative economics, and sufficiency economics;

(4) A growing number of enterprises are adopting new forms of sustainable business design, including new forms of governance, purpose, and profit models, in order to adopt sustainable business models;

(5) These forms of business design include consumer and worker cooperatives, non-profit enterprises, limited-dividend companies, and social/solidarity enterprises;

(6) Businesses seeking to adopt these business models and business designs currently lack the kind of comprehensive public support provided to other American businesses, including technical advice, legal assistance, sector-specific coordination and marketing, tax and fiscal arrangements, tailored access to public procurement; and other forms of aid;

(7) It is in the interest of the United States to encourage sustainable business models and sustainable business designs.

(b) PURPOSE. It is the purpose of this legislation to ––

(1) Recognize sustainable business models and sustainable business designs as levers for sustainable economic development;

(2) Support the development of sustainable business models and sustainable business designs by fostering coherence in legal frameworks and government action; and

(3) Strengthen sustainable business models and sustainable business designs through capacity-building, public funding, and public procurement.

SEC. 3. DEFINITIONS.

In this Act—

(1) “Business” means a corporation, partnership, or other association created under the laws of the United States or of any State (including the District of Columbia or any commonwealth, territory, or possession of the United States).

(2) “Business Design” means how the purpose, governance, and financing of a business is legally incorporated.

(3) “Business Model” means what a business offers of value to whom, as well as the activities needed to create and deliver the value proposition.

(4) “Commission” means Commission on Resilient Enterprises.

(5) “Director” means the Director of the Commission on Resilient Enterprises.

(6) “Relationship-to-profit” means a legally-binding set of financial rights determining how company profits are distributed.

(7) “Sustainable Business” means a business with a sustainable business model and design.

(8)  “Sustainable Business Model” means a business model which cumulatively;

(a) Delivers value at multiple stakeholder levels, including nature, societies, customers, suppliers, shareholder, investors, and employees;

(b) Engages in activities promoting social and ecological justice in all business activities, including supply chain management, sourcing, production techniques, voluntary objectives, and everyday practices; and

(c) Provides a net positive environmental and social impact as indicated through multi-capital accounting, including through restoring, preserving and enhancing social and natural capital.

(9)  “Sustainable Business Design” means a business design which cumulatively;

(a) Specifies the legal purpose of the business to be social and economic regeneration in addition or instead of pursuing and distributing profits to private owners;

(b) Requires the director of the company act in the way the director considers, in good faith, would be most likely to advance the purpose of the company, and in doing so must have regard (amongst other matters) to considerations such as the likely consequences of any decision in the long term,  interests of the company’s employees, the need to foster the company’s business relationships with suppliers, customers and others, and the impact of the company’s operations on the community and the environment;

(c) Requires the governance of the company to provide legal rights, responsibilities, and obligations in relation to diverse stakeholders representing social, environmental, and community interests beyond private shareholders as constituted through either private equity or publicly-traded shares; and

(d) Specifies that any profits and assets accrued by the business shall be used to pursue its legal purpose.

(10) ‘‘Frontline and Vulnerable Community’’ means a community in which climate change, pollution, or environmental destruction have exacerbated systemic racial, regional, social, environmental, and economic injustices.

SEC. 4. COMMISSION ON RESILIENT ENTERPRISES

(a) ESTABLISHMENT. —There is established a Commission on Resilient Enterprises which shall be composed of a Director and other representatives of government.

(b) FUNCTION. —The Commission shall work to advise the President on developing strategies and guidelines for promoting sustainable businesses in co-production with diverse stakeholders.

(1) to fulfil this function, the Commission shall, in consultation with relevant stakeholders and Vulnerable and Frontline Communities;

(A) Develop a framework for measuring and monitoring the size and impact of sustainable businesses;

(B) Develop a whole-of-government strategy for promoting the ecosystem of sustainable businesses; and

(C) Establish spaces for dialogue, collaboration and exchange of knowledge within the ecosystem of sustainable businesses;

(d) DIRECTOR.— No later than 120 days after the date of enactment of this act, the President shall identify or appoint a Director to head the Office.

(1)  the Director shall assist the Secretary by directing a whole-of-government effort to promote sustainable business models and designs; and

(2) establish a National Sustainable business Council and Working Groups in accordance with subsections (e) and (f).

(e) NATIONAL SUSTAINABLE ENTERPRISE COUNCIL.— Subject to subsection (d), the Director shall establish within the Office a National Sustainable Enterprise Council.

(1) FUNCTION. — The Council shall coordinate a whole-of-government plan to support sustainable businesses, and assist in the development of the applicable portions of;

(A)  State of Sustainable Business Report;

(B)  National Sustainable Business Strategy; and

(C) Other reports and activities as recommended by the Director.

(2) APPOINTMENT.—In addition to the Director, the Council shall consist of the Administrator of the Environmental Protection Agency, the Secretary of Agriculture, the Secretary of Energy, and 16  non-Federal partner members appointed by the Director.

(3) CHAIRPERSON.—The Director shall serve as chairperson of the National Sustainable Economy Council.

(4) REQUIREMENTS.—In appointing members of the Council, the Director shall appoint;

(A) 4 members who are employees of State, local, or territorial governments, the governments of Indian Tribes, or the governments of Freely Associated States, of which—

(i) not fewer than 1 shall be employees of a State government;

(ii) not fewer than 1 shall be employees of a unit of local government;

(iii) not fewer than 1 shall be employees of the government of an Indian Tribe; and

(iv) not fewer than 1 shall be employees of a territorial government or the government of a Freely Associated State; and

(B) 9 members who represent sustainable business models and designs, of which nongovernmental organizations and the private sector, of which—

(i) 3 shall represent worker-Owned cooperatives, credit unions, mutual    associations, or commons-based enterprises;

(ii) 3 shall represent Benefit Corporations, Limited Liability Companies, -corps;

(iii) 3 shall represent non-profit enterprises; and

(iv) 3 shall represent academic or professional experts in sustainable business modeling and design.

(5) SELECTION.—To the maximum extent practicable, the Director shall seek to select members of the Council who represent a diversity of

(A) perspectives;

(B) demographics;

(C) geographies;

(D) political affiliations; and

(E) institution sizes, including representatives of both small and large units of government and businesses.

(e) WORKING GROUPS.— The Director shall establish the minimum number of Working Groups that is necessary to carry out the duties and purposes described in subsection (4)(e).

(1)  CHAIRPERSON.—The Director shall serve as chairperson of each Working Group.

(2) MEMBERSHIP.—In establishing a Working Group, the Director shall—

(A) identify and appoint each Federal agency with operations or organizational units that are relevant to the focus of the Working Group; and

(B) identify and appoint Working Group members who represent a diversity of perspectives and backgrounds as put forth in subparagraph (5).

(f) ANNUAL REPORT.—Not later than 1 year after the date of the enactment of this Act, and every year thereafter, the Director must produce an annual report in relation to each financial year (an “annual report”) summarizing

(A)  the action taken in that financial year in the exercise of the Director’s functions; including

(i) an analysis of the effectiveness of that action in enabling the general duty of the Director to be fulfilled

(ii) a summary of the Director’s work program for that financial year;

(iii) the Director’s proposals for a work program for the following financial year;

(B) An annual report may include;

(i) the Director’s assessment of the improvements that public bodies should make in order to meet their targets established in section (7);

(ii) any other information the Director considers appropriate.

(C) in preparing an annual report, the Director must consult—

(i) the National Sustainable Enterprise Council;

(ii) representatives of Frontline and Vulnerable Communities; and

(iii) any other person or body the Director considers appropriate.

SEC 6. STATE OF RESILIENT BUSINESS REPORT.

(a) GENERAL RULE. — Not less than 16 months after the date of enactment of this Act, and every year thereafter, the Director shall submit to the President a State of Resilient Business Report setting forth;

(1) a quantified tally and analysis of the United State’s sustainable businesses; and

(2) a quantified measure of the social and environmental impact of economic activity conducted by sustainable businesses;

(A) “economic activity” shall mean;

(i) the production and consumption of services produced within the territorial United States; and

(ii) all production processes, including those within foreign nations, needed by goods and services consumed within the United States.

(B) “environmental impact” shall mean all those impacts related to resource consumption, extraction, and degradation as the result of economic activity

(C) measures of “environmental impact” shall mean changes in non-renewable resources usage, water usage, land usage, climate change, eutrophication, acidification, ecotoxicity, stratospheric ozone depletion, all other biophysical factors and natural capital.

(D) “social impact” shall mean all those impacts related to positive social change as the result of economic activity.

(E) measures of “social impact” shall mean changes in employment, health, social capital, and other criteria.

(F) The method used for the assessment of environmental impacts shall fulfil all of the following conditions;

(i) it is based on verifiable and non-discriminatory criteria; and

(ii) is accessible to all interested parties.

SEC 7. NATIONAL SUSTAINABLE BUSINESS STRATEGY.

(a) GENERAL RULE. —Not later than 2 years after the date of enactment of this Act, the Director shall submit to the President and Congress a National Sustainable Business Strategy.

(b) PURPOSE AND SCOPE.—The Strategy shall describe strategies, targets, and a timelines for the Federal Government, in partnership with non-Federal governmental and non-governmental partners, to promote and scale sustainable businesses in the United States.

(c) DIMENSIONS.— This Strategy will;

(1) Identify and address the main legal and administrative barriers faced by sustainable businesses within the United States;

(2) Identify administrative and policy tools for encouraging the growth of sustainable businesses’ and

(3) Prioritize the participation and support of Frontline and Vulnerable communities.

(d) INCLUSIONS.—In addition to the overarching strategies developed in accordance with subsection (c), the Strategy shall include plans, legislative proposals, and time-bound objectives for;

(1) Promoting and harmonizing legal frameworks for adopting sustainable business models and design;

(2) Assessing, valuing, and quantifying for measuring the extent and impact of sustainable businesses;

(3) Providing technical support and training for sustainable business models and design;

(4) Providing appropriate fiscal support for sustainable businesses, including through public procurement, contracting, and tax reform;

(5) Raising the profile and public awareness of for sustainable businesses; and

(6) Improving the positive social and environmental impacts of sustainable business models;

(f) IMPLEMENTATION PLAN.—  With the Strategy and each update of the Strategy, the Director shall submit to the President and Congress an Implementation Plan that describes how represented agencies intend to carry out the Strategy, which shall include—

(1) a description of the roles and responsibilities of each represented agency in carrying out each element of the Strategy described in subsections (c) and (d); and

(2) a plan to enter into such interagency agreements between and among represented agencies, partnerships with non-Federal entities, and other agreements for coordination between and among the Federal Government and non-Federal partners as may be necessary to accomplish national sustainability targets.

(g) PERFORMANCE PLAN AND PRIORITY GOALS.—   This strategy will be incorporated into the Agency Performance Plans ((b)(1115) and Agency Priority Goals (b)(1120) of title 31.

(h)  PUBLIC COMMENT.— The Director shall;

(1) publish draft and final versions of the Strategy and Implementation Plan, and each update to the Strategy and Implementation Plan; and

(2) through publication in the Federal Register, solicit comments from the public on the draft versions of the documents published under paragraph (1) for a period of 60 days, which the Director and the Working Groups shall consider before submitting final versions of the Strategy and Implementation Plan, and updates to the Strategy and Implementation Plan, to the President and Congress.

(i) CO-CREATION.—The Strategy and implementation plan  shall be developed, produced, and assessed in partnership with diverse stakeholders and representatives of Frontline and Vulnerable Communities.

SEC 8.  SUSTAINABLE AGENCY STRATEGY.

(a) GENERAL RULE. — The head of each agency shall, in consultation with the Director, develop an agency-wide strategy for meeting the goals and targets established in section (7).

(1) This strategy will include;

(A)  a summary of the existing measures to support sustainable businesses; and

(B) the mechanisms by which each represented agency will accomplish the targets established in section (5).

(b) The heads of agencies shall submit this strategy to the Director for approval no later than 60 days after the submission of section (5).

(c) Within 30 days of an agency’s submission of this strategy, the Director plan, shall review the plan to assess its consistency with targets established in section (7).

(d) Upon approval the Director, shall conduct management reviews with each principal agency, at least annually or more frequently as appropriate, to assess implementation and progress on agency plans developed pursuant the targets established under this act.

(e) After submitting an initial action plan, the head of each agency shall submit to the Director annually on the status of implementation efforts.  Agencies shall make progress reports public and post them on the agency website, to the extent consistent with applicable law.  The heads of agencies shall assign their respective agency Chief Sustainability Officer the authority to perform duties relating to implementation of this order within the agency, to the extent consistent with applicable law.

(f) This strategy will be incorporated into the Agency Performance Plans (b)(1115) and Agency Priority Goals (b)(1120) of title 31.

SEC 9.  FEDERAL SUSTAINABLE BUSINESS REPORT.

(a) No later than 2 years following the completion of each Strategy under subsection (a)(7), the Comptroller General of the United States shall submit to the President and Congress a report that assesses;

(1) The extent to which the National Sustainable Business Strategy has been carried out by the Federal Government, which shall be judged, as appropriate, based on any metrics and indicators developed to track progress in increasing sustainable businesses and their impact as indicated in section (a)(6).

(b) These reports must include summaries of;

(1) Agency progress reports indicated by subsection (e)(8);

(2) evidence, activities, and reviews undertaken by the Director during the reporting period

(3) any other action taken by the Director during the reporting period in the exercise of the Director’s functions.

(c) This report will include an assessment of how agencies can better fulfill the mandates of this Act, including;

(1) the inconsistencies in goals, priorities, or strategies underlying sustainability operations and policy across represented agencies that may inhibit effective interagency coordination to support sustainable business;

(2) gaps or deficiencies in government operations and policy that need to be addressed in the context of the Strategy;

(3) opportunities for greater collaboration between or among represented agencies to improve Federal Government sustainability operations and policy; and

(4) opportunities for greater collaboration between the Federal Government and non-Federal partners to build local-level sustainability;

SEC 10.  AGENCY ASSISTANCE STRATEGY.

(a) GENERAL RULE. — The Director, in consultation with other Agency directors, shall develop a strategy for assisting Agencies in meeting targets established in section (7).

(b) This strategy will include;

(1) recommendations for any additional legislation and rule-making needed to accomplish this strategy; and

(2) other topics as the Director shall determine.

(c) Working-Group. — The Director shall establish a working-group of Agency Chief Sustainability Officers to coordinate best practices in the accomplishment of targets established in section (7).

SEC 11.  CONSULTATION.

(a) GENERAL RULE. — The Commission shall be consulted on all draft laws and regulations applicable to sustainable businesses.