US Congress Senate Bill 2391 (Prior Session Legislation)

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Spectrum: Partisan Bill (Democrat 1-0)
Status: Introduced on July 31 2019 - 25% progression, died in chamber
Action: 2020-11-17 - Committee on Banking, Housing, and Urban Affairs. Hearings held.
Text: Latest bill text (Introduced) [PDF]

Revises requirements related to stock buybacks (i.e., a company repurchasing shares of common stock). Specifically, issuers of securities must provide an annual dividend to non-executive employees in certain circumstances. The calculation of this dividend is based on (1) the amount the issuer spends on stock buybacks, (2) increases in dividends, and (3) any special dividends. Additionally, an issuer is prohibited from repurchasing shares unless details of the buyback are disclosed to the Securities and Exchange Commission (SEC), including the rationale for the repurchase. The buyback must also comply with certain purchasing requirements. The bill lowers the allowed daily amount of repurchased shares. Executive officers may not sell shares for seven days beginning on the date of an announced buyback, subject to certain exceptions. The SEC may enforce these provisions. Employees are afforded a private right of action against an issuer regarding required employee dividends.

Stock Buyback Reform and Worker Dividend Act of 2019

Sen. Sherrod Brown [D-OH]

Date	Chamber	Action
2020-11-17	Senate	Committee on Banking, Housing, and Urban Affairs. Hearings held.
2019-07-31	Senate	Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Type	Source
Summary	https://www.congress.gov/bill/116th-congress/senate-bill/2391/all-info
Text	https://www.congress.gov/116/bills/s2391/BILLS-116s2391is.pdf