[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6121 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 6121
To provide incentives for businesses to keep jobs in America, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 5, 2020
Mr. Pocan (for himself, Ms. Kaptur, Ms. Lee of California, Ms. Norton,
and Mr. Ryan) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on
Education and Labor, Armed Services, and Oversight and Reform, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To provide incentives for businesses to keep jobs in America, 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.
This Act may be cited as the ``End Outsourcing Act''.
SEC. 2. OUTSOURCING STATEMENT IN WORKER ADJUSTMENT AND RETRAINING
NOTICE.
(a) Outsourcing Statement.--Section 3 of the Worker Adjustment and
Retraining Notification Act (29 U.S.C. 2102) is amended by adding at
the end the following:
``(e) Outsourcing Statement.--
``(1) In general.--For purposes of subsection (a), the
employer shall include an outsourcing statement in the notice
described in that subsection. The outsourcing statement shall
specify whether part or all of the positions held by affected
employees covered by subsection (a) will be moved to a country
outside the United States, regardless of whether the positions
are moved within the business enterprise involved or to another
business enterprise. The employer shall make the determination
of whether the positions are being so moved in accordance with
regulations issued by the Secretary. The employer shall serve
the notice as required under subsection (a) and submit the
notice to the Secretary of Labor.
``(2) List.--Not less often than annually, the Secretary
shall publish and make available on the website of the
Department of Labor, a list including each employer who--
``(A) has included an outsourcing statement in a
notice under paragraph (1); or
``(B) has incurred liability under section 5, in
part or in whole, because the employer ordered a plant
closing or mass layoff without having served a notice
that is required, under this section, to include an
outsourcing statement.''.
(b) Implementation Report.--The Worker Adjustment and Retraining
Notification Act is amended by inserting after section 10 (29 U.S.C.
2109) the following:
``SEC. 10A. IMPLEMENTATION STUDY.
``(a) Study.--The Comptroller General of the United States shall
conduct a study of the implementation of section 3(e) of the Worker
Adjustment and Retraining Notification Act (29 U.S.C. 2102(e)) by the
Department of Labor.
``(b) Report.--Not later than 3 years after the date of enactment
of this section, the Comptroller General shall submit to the
appropriate committees of Congress a report containing the results of
the study.''.
SEC. 3. DENIAL OF DEDUCTION FOR OUTSOURCING EXPENSES.
(a) In General.--Part IX of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 280I. OUTSOURCING EXPENSES.
``(a) In General.--No deduction otherwise allowable under this
chapter shall be allowed for any specified outsourcing expense.
``(b) Specified Outsourcing Expense.--For purposes of this
section--
``(1) In general.--The term `specified outsourcing expense'
means--
``(A) any eligible expense paid or incurred by the
taxpayer in connection with the elimination of any
business unit of the taxpayer (or of any member of any
expanded affiliated group in which the taxpayer is also
a member) located within the United States, and
``(B) any eligible expense paid or incurred by the
taxpayer in connection with the establishment of any
business unit of the taxpayer (or of any member of any
expanded affiliated group in which the taxpayer is also
a member) located outside the United States,
if such establishment constitutes the relocation of the
business unit so eliminated. For purposes of the preceding
sentence, a relocation shall not be treated as failing to occur
merely because such elimination occurs in a different taxable
year than such establishment.
``(2) Eligible expenses.--The term `eligible expenses'
means--
``(A) any amount for which a deduction is allowed
to the taxpayer under section 162, and
``(B) permit and license fees, lease brokerage
fees, equipment installation costs, and, to the extent
provided by the Secretary, other similar expenses.
Such term does not include any compensation which is paid or
incurred in connection with severance from employment and, to
the extent provided by the Secretary, any similar amount.
``(3) Business unit.--The term `business unit' means--
``(A) any trade or business, and
``(B) any line of business, or functional unit,
which is part of any trade or business.
``(4) Expanded affiliated group.--The term `expanded
affiliated group' means an affiliated group as defined in
section 1504(a), determined without regard to section
1504(b)(3) and by substituting `more than 50 percent' for `at
least 80 percent' each place it appears in section 1504(a). A
partnership or any other entity (other than a corporation)
shall be treated as a member of an expanded affiliated group if
such entity is controlled (within the meaning of section
954(d)(3)) by members of such group (including any entity
treated as a member of such group by reason of this paragraph).
``(5) Operating expenses not taken into account.--Any
amount paid or incurred in connection with the ongoing
operation of a business unit shall not be treated as an amount
paid or incurred in connection with the establishment or
elimination of such business unit.
``(c) Special Rules.--
``(1) Application to deductions for depreciation and
amortization.--In the case of any portion of a specified
outsourcing expense which is not deductible in the taxable year
in which paid or incurred, such portion shall neither be
chargeable to capital account nor amortizable.
``(2) Possessions treated as part of the united states.--
For purposes of this section, the term `United States' shall be
treated as including each possession of the United States
(including the Commonwealth of Puerto Rico and the Commonwealth
of the Northern Mariana Islands).
``(d) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be necessary or appropriate to carry out the
purposes of this section, including regulations which provide (or
create a rebuttable presumption) that certain establishments of
business units outside the United States will be treated as relocations
(based on timing or such other factors as the Secretary may provide) of
business units eliminated within the United States.''.
(b) Limitation on Subpart F Income of Controlled Foreign
Corporations Determined Without Regard to Specified Outsourcing
Expenses.--Subsection (c) of section 952 of such Code is amended by
adding at the end the following new paragraph:
``(4) Earnings and profits determined without regard to
specified outsourcing expenses.--For purposes of this
subsection, earnings and profits of any controlled foreign
corporation shall be determined without regard to any specified
outsourcing expense (as defined in section 280I(b)).''.
(c) Clerical Amendment.--The table of sections for part IX of
subchapter B of chapter 1 of such Code is amended by adding at the end
the following new item:
``Sec. 280I. Outsourcing expenses.''.
(d) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act.
SEC. 4. DENIAL OF CERTAIN DEDUCTIONS AND ACCOUNTING METHODS FOR
OUTSOURCING EMPLOYERS.
(a) In General.--Part IX of subchapter B of chapter 1 of the
Internal Revenue Code of 1986, as amended by section 3, is amended by
adding at the end the following new section:
``SEC. 280J. LIMITATIONS FOR OUTSOURCING EMPLOYERS.
``(a) In General.--During the disallowance period, an applicable
taxpayer--
``(1) may not use the method provided in section 472(b) in
inventorying goods,
``(2) may not use the lower of cost or market method of
determining inventories for purposes of determining income, and
``(3) shall not be allowed any deduction under section 163
for interest paid or accrued on indebtedness.
``(b) Applicable Taxpayer.--For purposes of subsection (a), the
term `applicable taxpayer' means a taxpayer which--
``(1) during the taxable year, has served written notice
under subsection (a) of section 3 of the Worker Adjustment and
Retraining Notification Act which includes an outsourcing
statement described in subsection (e) of such section, and
``(2) the cumulative employment loss (excluding any part-
time employees) for positions at facilities owned by such
taxpayer which will be moved to a country outside of the United
States, as determined pursuant to any outsourcing statements
served by such taxpayer during such taxable year, exceeds 50
employees.
``(c) Disallowance Period.--For purposes of subsection (a), the
disallowance period is the period of 3 taxable years after the taxable
year in which the statements described in subsection (b)(2) are
required to be served.
``(d) Expanded Affiliated Group Treated as Single Taxpayer.--For
purposes of this section, the members of an expanded affiliated group
(as defined in section 280I(b)(4)) shall be treated as a single
taxpayer.
``(e) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be necessary or appropriate to carry out the
purposes of this section.''.
(b) Clerical Amendment.--The table of sections for part IX of
subchapter B of chapter 1 of the Internal Revenue Code of 1986, as
amended by section 3, is amended by adding at the end the following new
item:
``Sec. 280J. Limitations for outsourcing employers.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 5. CURRENT YEAR INCLUSION OF NET CFC TESTED INCOME.
(a) Repeal of Tax-Free Deemed Return on Investments.--
(1) In general.--Section 951A(a) of the Internal Revenue
Code of 1986 is amended by striking ``global intangible low-
taxed income'' and inserting ``net CFC tested income''.
(2) Conforming amendments.--
(A) Section 951A of such Code is amended by
striking subsections (b) and (d).
(B) Section 951A(e)(1) of such Code is amended by
striking ``subsections (b), (c)(1)(A), and'' and
inserting ``subsections (c)(1)(A) and''.
(C) Section 951A(f) of such Code is amended to read
as follows:
``(f) Treatment as Subpart F Income for Certain Purposes.--
``(1) In general.--Except as provided in paragraph (2), any
net CFC tested income included in gross income under subsection
(a) shall be treated in the same manner as an amount included
under section 951(a)(1)(A) for purposes of applying sections
168(h)(2)(B), 535(b)(10), 851(b), 904(h)(1), 959, 961, 962,
993(a)(1)(E), 996(f)(1), 1248(b)(1), 1248(d)(1), 6501(e)(1)(C),
6654(d)(2)(D), and 6655(e)(4).
``(2) Exception.--The Secretary shall provide rules for the
application of paragraph (1) to other provisions of this title
in any case in which the determination of subpart F income is
required to be made at the level of the controlled foreign
corporation.''.
(D) Section 960(d)(2)(A) of such Code is amended by
striking ``global intangible low-taxed income (as
defined in section 951A(b))'' and inserting ``net CFC
tested income (as defined in section 951A(c))''.
(b) Repeal of Reduced Rate of Tax on Net CFC Tested Income.--
(1) In general.--Part VIII of subchapter B of chapter 1 of
such Code is amended by striking section 250 (and by striking
the item relating to such section in the table of sections of
such part).
(2) Conforming amendments.--
(A) Section 59A(c)(4)(B)(i) of such Code is amended
by striking ``section 172, 245A, or 250'' and inserting
``section 172 or 245A''.
(B) Section 172(d) of such Code is amended by
striking paragraph (9).
(C) Section 246(b)(1) of such Code is amended--
(i) by striking ``subsection (a) and (b) of
section 245, and section 250'' and inserting
``and subsection (a) and (b) of section 245'';
and
(ii) by striking ``subsection (a) and (b)
of section 245, and 250'' and inserting ``and
subsection (a) and (b) of section 245''.
(D) Section 469(i)(3)(F)(iii) is amended by
striking ``222, and 250'' and inserting ``and 222''.
(c) Net CFC Tested Income Determined Without Regard to High Tax
Foreign Income.--Section 951A(c)(2)(A)(i) of such Code is amended by
redesignating subclauses (IV) and (V) as subclauses (V) and (VI),
respectively, and by inserting after subclause (III) the following new
subclause:
``(IV) any item of income subject
to an effective rate of income tax
imposed by a foreign country greater
than the maximum rate of tax specified
in section 11,''.
(d) Repeal of Exclusion of Foreign Oil and Gas Extraction Income
From the Determination of Tested Income.--Section 951A(c)(2)(A)(i) of
such Code, as amended by subsection (c) is amended--
(1) by adding ``and'' at the end of subclause (IV);
(2) by striking ``and'' at the end of subclause (V) and
inserting ``over''; and
(3) by striking subclause (VI).
(e) Increase in Deemed Paid Credit for Taxes Properly Attributable
to Tested Income.--
(1) In general.--Section 960(d) of such Code is amended by
striking ``80 percent of''.
(2) Conforming amendment.--Section 78 of such Code is
amended by striking ``(determined without regard to the phrase
``80 percent of'' in subsection (d)(1) thereof)''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years of foreign corporations beginning after December
31, 2019, and to taxable years of United States shareholders in
which or with which such taxable years of foreign corporations
end.
(2) Repeal of reduced rate of tax; increase in deemed paid
credit.--The amendments made by subsections (b) and (e) shall
apply to taxable years beginning after December 31, 2019.
SEC. 6. RECAPTURE OF CREDITS FOR OUTSOURCING EMPLOYERS.
(a) In General.--Part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new subpart:
``Subpart H--Recapture of Credits for Outsourcing Employers
``Sec. 54. Recapture of credits for outsourcing employers.
``SEC. 54. RECAPTURE OF CREDITS FOR OUTSOURCING EMPLOYERS.
``(a) In General.--Pursuant to regulations prescribed by the
Secretary, in the case of a taxpayer which owns a facility for which
there is an outsourcing event during the taxable year, the tax under
this chapter for such taxable year shall be increased by the amount
equal to the sum of--
``(1) any credits allowed under this chapter relating to
expenses for design, construction, operation, or maintenance of
such facility during the 5 taxable years preceding such taxable
year, and
``(2) any grants provided by the Secretary in lieu of
credits described in paragraph (1) during the 5 taxable years
preceding such taxable year.
``(b) Outsourcing Event.--For purposes of subsection (a), the term
`outsourcing event' means a plant closing or mass layoff (as described
in section 2(a) of the Worker Adjustment and Retraining Notification
Act) in which the employment loss (excluding any part-time employees)
for positions which will be moved to a country outside of the United
States, as determined pursuant to the outsourcing statement (as
described in paragraph (1) of such section 3(e) of such Act) served by
the taxpayer during the taxable year, exceeds 50 employees.
``(c) Expanded Affiliated Group Treated as Single Taxpayer.--For
purposes of this section, the members of an expanded affiliated group
(as defined in section 280I(b)(4)) shall be treated as a single
taxpayer.''.
(b) Clerical Amendment.--The table of subparts for part IV of
subchapter A of chapter 1 of such Code is amended by adding at the end
the following new item:
``subpart h. recapture of credits for outsourcing employers''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 7. CREDIT FOR INSOURCING EXPENSES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45T. CREDIT FOR INSOURCING EXPENSES.
``(a) In General.--For purposes of section 38, the insourcing
expenses credit for any taxable year is an amount equal to 20 percent
of the eligible insourcing expenses of the taxpayer which are taken
into account in such taxable year under subsection (d).
``(b) Eligible Insourcing Expenses.--For purposes of this section--
``(1) In general.--The term `eligible insourcing expenses'
means--
``(A) eligible expenses paid or incurred by the
taxpayer in connection with the elimination of any
business unit of the taxpayer (or of any member of any
expanded affiliated group in which the taxpayer is also
a member) located outside the United States, and
``(B) eligible expenses paid or incurred by the
taxpayer in connection with the establishment of any
business unit of the taxpayer (or of any member of any
expanded affiliated group in which the taxpayer is also
a member) located within--
``(i) a HUBZone (as defined in section
3(p)(2) of the Small Business Act (15 U.S.C.
632(p)(2))), or
``(ii) a low-income community (as described
in section 45D(e)),
if such establishment constitutes the relocation of the
business unit so eliminated. For purposes of the preceding
sentence, a relocation shall not be treated as failing to occur
merely because such elimination occurs in a different taxable
year than such establishment.
``(2) Eligible expenses.--The term `eligible expenses'
means--
``(A) any amount for which a deduction is allowed
to the taxpayer under section 162, and
``(B) permit and license fees, lease brokerage
fees, equipment installation costs, and, to the extent
provided by the Secretary, other similar expenses.
Such term does not include any compensation which is paid or
incurred in connection with severance from employment and, to
the extent provided by the Secretary, any similar amount.
``(3) Business unit.--The term `business unit' means--
``(A) any trade or business, and
``(B) any line of business, or functional unit,
which is part of any trade or business.
``(4) Expanded affiliated group.--The term `expanded
affiliated group' means an affiliated group as defined in
section 1504(a), determined without regard to section
1504(b)(3) and by substituting `more than 50 percent' for `at
least 80 percent' each place it appears in section 1504(a). A
partnership or any other entity (other than a corporation)
shall be treated as a member of an expanded affiliated group if
such entity is controlled (within the meaning of section
954(d)(3)) by members of such group (including any entity
treated as a member of such group by reason of this paragraph).
``(5) Expenses must be pursuant to insourcing plan.--
Amounts shall be taken into account under paragraph (1) only to
the extent that such amounts are paid or incurred pursuant to a
written plan to carry out the relocation described in paragraph
(1).
``(6) Operating expenses not taken into account.--Any
amount paid or incurred in connection with the on-going
operation of a business unit shall not be treated as an amount
paid or incurred in connection with the establishment or
elimination of such business unit.
``(c) Increased Domestic Employment Requirement.--No credit shall
be allowed under this section unless the number of full-time equivalent
employees of the taxpayer for the taxable year for which the credit is
claimed exceeds the number of full-time equivalent employees of the
taxpayer for the last taxable year ending before the first taxable year
in which such eligible insourcing expenses were paid or incurred. For
purposes of this subsection, full-time equivalent employees has the
meaning given such term under section 45R(d) (and the applicable rules
of section 45R(e)). All employers treated as a single employer under
subsection (b), (c), (m), or (o) of section 414 shall be treated as a
single employer for purposes of this subsection.
``(d) Credit Allowed Upon Completion of Insourcing Plan.--
``(1) In general.--Except as provided in paragraph (2),
eligible insourcing expenses shall be taken into account under
subsection (a) in the taxable year during which the plan
described in subsection (b)(5) has been completed and all
eligible insourcing expenses pursuant to such plan have been
paid or incurred.
``(2) Election to apply employment test and claim credit in
first full taxable year after completion of plan.--If the
taxpayer elects the application of this paragraph, eligible
insourcing expenses shall be taken into account under
subsection (a) in the first taxable year after the taxable year
described in paragraph (1).
``(e) Possessions Treated as Part of the United States.--For
purposes of this section, the term `United States' shall be treated as
including each possession of the United States (including the
Commonwealth of Puerto Rico and the Commonwealth of the Northern
Mariana Islands).
``(f) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be necessary or appropriate to carry out the
purposes of this section.''.
(b) Credit To Be Part of General Business Credit.--Subsection (b)
of section 38 of such Code is amended by striking ``plus'' at the end
of paragraph (31), by striking the period at the end of paragraph (32)
and inserting ``, plus'', and by adding at the end the following new
paragraph:
``(33) the insourcing expenses credit determined under
section 45T(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45T. Credit for insourcing expenses.''.
(d) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act.
(e) Application to United States Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--The Secretary of the
Treasury shall make periodic payments to each
possession of the United States with a mirror code tax
system in an amount equal to the loss to that
possession by reason of section 45T of the Internal
Revenue Code of 1986. Such amount shall be determined
by the Secretary of the Treasury based on information
provided by the government of the respective
possession.
(B) Other possessions.--The Secretary of the
Treasury shall make annual payments to each possession
of the United States which does not have a mirror code
tax system in an amount estimated by the Secretary of
the Treasury as being equal to the aggregate benefits
that would have been provided to residents of such
possession by reason of section 45T of such Code if a
mirror code tax system had been in effect in such
possession. The preceding sentence shall not apply with
respect to any possession of the United States unless
such possession has a plan, which has been approved by
the Secretary of the Treasury, under which such
possession will promptly distribute such payment to the
residents of such possession.
(2) Coordination with credit allowed against united states
income taxes.--No credit shall be allowed against United States
income taxes under section 45T of such Code to any person--
(A) to whom a credit is allowed against taxes
imposed by the possession by reason of such section, or
(B) who is eligible for a payment under a plan
described in paragraph (1)(B).
(3) Definitions and special rules.--
(A) Possessions of the united states.--For purposes
of this section, the term ``possession of the United
States'' includes the Commonwealth of Puerto Rico and
the Commonwealth of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this
section, the term ``mirror code tax system'' means,
with respect to any possession of the United States,
the income tax system of such possession if the income
tax liability of the residents of such possession under
such system is determined by reference to the income
tax laws of the United States as if such possession
were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the
payments under this section shall be treated in the
same manner as a refund due from sections referred to
in such section 1324(b)(2).
SEC. 8. AUTHORITY FOR FEDERAL CONTRACTING OFFICERS TO TAKE THE
OUTSOURCING OF JOBS FROM THE UNITED STATES INTO ACCOUNT
IN AWARDING CONTRACTS.
(a) Department of Defense and Related Agency Contracts.--
(1) Consideration of outsourcing.--
(A) In general.--Chapter 137 of title 10, United
States Code, is amended by inserting after section 2327
the following new section:
``Sec. 2327a. Contracts: consideration of outsourcing of jobs
``(a) Disclosure of Outsourcing of Jobs.--
``(1) In general.--The head of an agency shall require a
contractor that submits a bid or proposal in response to a
solicitation issued by the agency to disclose in that bid or
proposal if the contractor, or a subsidiary of the contractor,
owns a facility for which there is an outsourcing event during
the three-year period ending on the date of the submittal of
the bid or proposal.
``(2) Outsourcing event.--For purposes of paragraph (1),
the term `outsourcing event' means a plant closing or mass
layoff (as described in section 2(a) of the Worker Adjustment
and Retraining Notification Act) in which the employment loss
(excluding any part-time employees) for positions which will be
moved to a country outside of the United States, as determined
pursuant to the outsourcing statement (as described in
paragraph (1) of such section 3(e) of such Act) served by the
taxpayer during the taxable year, exceeds 50 employees.
``(b) Consideration Authorized.--(1) Agency contracting officers
considering bids or proposals in response to a solicitation issued by
the agency shall take into account any disclosure made pursuant to
subsection (a) in such bids and proposals.
``(2) The head of an agency shall establish a negative preference
of no less than 10 percent of the cost of a contract for purposes of
evaluating a bid or proposal of a contractor that makes a disclosure
pursuant to subsection (a).
``(c) Sense of Congress.--It is the sense of Congress that agency
contracting officers should, using section 2304(b)(3) of this title,
exclude contractors making a disclosure pursuant to subsection (a) in
response to solicitations issued by the agency from the bidding process
in connection with such solicitations on the grounds that the actions
described in the disclosures are against the public interests of the
United States.
``(d) Annual Report.--The head of each agency shall submit to
Congress each year a report on the following:
``(1) The number of solicitations made by the agency during
the preceding year for which disclosures were made pursuant to
subsection (a) in responsive bids or proposals.
``(2) The number of contracts awarded by the agency during
the preceding year in which such disclosures were taken into
account in the contract award.''.
(B) Clerical amendment.--The table of sections at
the beginning of chapter 137 of such title is amended
by inserting after the item relating to section 2327
the following new item:
``2327a. Contracts: consideration of outsourcing of jobs.''.
(2) Exclusion of firms from sources.--Section 2304(b) of
such title is amended--
(A) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively;
(B) by inserting after paragraph (2) the following
new paragraph:
``(3) The head of an agency may provide for the procurement of
property and services covered by this chapter using competitive
procedures but excluding a source making a disclosure pursuant to
section 2327a(a) of this title in the bid or proposal in response to
the solicitation issued by the agency if the head of the agency
determines that the actions described by disclosure are against the
public interests of the United States and the source is to be excluded
on those grounds. Any such determination shall take into account the
sense of Congress set forth in section 2327a(c) of this title.''; and
(C) in paragraph (4), as so redesignated, by
striking ``paragraphs (1) and (2)'' and inserting
``paragraphs (1), (2), and (3)''.
(b) Other Federal Contracts.--
(1) Consideration of outsourcing.--Chapter 35 of title 41,
United States Code, is amended by inserting after section 3303
the following new section:
``Sec. 3303a. Bidders outsourcing jobs: disclosure of outsourcing;
consideration of outsourcing in award; exclusion from
sources
``(a) Disclosure of Outsourcing of Jobs.--
``(1) In general.--The head of an executive agency shall
require a contractor that submits a bid or proposal in response
to a solicitation issued by the executive agency to disclose in
that bid or proposal if the contractor, or a subsidiary of the
contractor, owns a facility for which there is an outsourcing
event during the three-year period ending on the date of the
submittal of the bid or proposal.
``(2) Outsourcing event.--For purposes of paragraph (1),
the term `outsourcing event' means a plant closing or mass
layoff (as described in section 2(a) of the Worker Adjustment
and Retraining Notification Act) in which the employment loss
(excluding any part-time employees) for positions which will be
moved to a country outside of the United States, as determined
pursuant to the outsourcing statement (as described in
paragraph (1) of such section 3(e) of such Act) served by the
taxpayer during the taxable year, exceeds 50 employees.
``(b) Consideration Authorized.--(1) Contracting officers of an
executive agency considering bids or proposals in response to a
solicitation issued by the executive agency shall take into account any
disclosure made pursuant to subsection (a) in such bids and proposals.
``(2) The head of an executive agency shall establish a negative
preference of no less than 10 percent of the cost of a contract for
purposes of evaluating a bid or proposal of a contractor that makes a
disclosure pursuant to subsection (a).
``(c) Exclusion From Sources.--
``(1) In general.--The head of an executive agency may
provide for the procurement of property and services using
competitive procedures but excluding a source making a
disclosure under subsection (a) in the bid or proposal in
response to the solicitation issued by the executive agency if
the head of the executive agency determines that the actions
described by disclosure are against the public interests of the
United States and the source is to be excluded on those
grounds. Any such determination shall take into account the
sense of Congress set forth in paragraph (2).
``(2) Sense of congress.--It is the sense of Congress that
contracting officers of executive agencies may use paragraph
(1) to exclude contractors making a disclosure pursuant to
subsection (a) in response to a solicitation issued by the
executive agency from the bidding process in connection with
the solicitation on the grounds that the actions described by
the disclosure are against the public interests of the United
States.
``(d) Annual Report.--The head of each executive agency shall
submit to Congress each year a report on the following:
``(1) The number of solicitations made by the executive
agency during the preceding year for which disclosures were
made pursuant to subsection (a) in responsive bids or
proposals.
``(2) The number of contracts awarded to contractors that
disclosed having outsourced more than 50 jobs during the
preceding three years.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 35 of such title is amended by inserting
after the item relating to section 3303 the following new item:
``3303a. Bidders outsourcing jobs: disclosure of outsourcing;
consideration of outsourcing in award;
exclusion from sources.''.
(3) Conforming amendment.--Section 3301(a) of such title is
amended by inserting ``3303a(c),'' after ``3303,''.
(c) Regulations.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Federal Acquisition Regulatory
Council, in consultation with the heads of relevant agencies,
shall amend the Federal Acquisition Regulation and the Defense
Federal Acquisition Regulation Supplement to carry out the
requirements of section 3303a of title 41, United States Code,
and section 2327a of title 10, United States Code, as added by
this section.
(2) Definition of outsourcing.--For purposes of defining
outsourcing pursuant to paragraph (1), the Federal Acquisition
Regulatory Council may utilize regulations prescribed by the
Secretary of Labor.
(d) Rule of Construction.--This section, and the amendments made by
this section, shall be applied in a manner consistent with United
States obligations under international agreements.
SEC. 9. AUTHORITY FOR FEDERAL AGENCIES TO TAKE THE OUTSOURCING OF JOBS
FROM THE UNITED STATES INTO ACCOUNT FOR GRANTS, LOANS,
AND LOAN GUARANTEES.
(a) Disclosure of Outsourcing of Jobs.--
(1) In general.--The head of any Federal agency, or their
delegate, shall require any entity that submits a request for
an applicable agency action to disclose in the request if such
entity, or any subsidiary of such entity, owns a facility for
which there is an outsourcing event during the 3-year period
ending on the date of the submission of the request.
(2) Outsourcing event.--For purposes of paragraph (1), the
term ``outsourcing event'' means a plant closing or mass layoff
(as described in section 2(a) of the Worker Adjustment and
Retraining Notification Act) in which the employment loss
(excluding any part-time employees) for positions which will be
moved to a country outside of the United States, as determined
pursuant to the outsourcing statement (as described in
paragraph (1) of such section 3(e) of such Act), exceeds 50
employees.
(b) Consideration Authority.--
(1) In general.--In considering a request by an entity for
an applicable agency action, the head of any Federal agency, as
well as any officers, employees, and contractors of such
Agency, shall take into account any disclosure made pursuant to
subsection (a) for purposes of such request.
(2) Negative preference.--The head of any Federal agency
shall establish a negative preference of not less than 10
percent of the scoring evaluation for any request for an
applicable agency action by an entity that makes a disclosure
pursuant to subsection (a).
(c) Sense of Congress.--It is the sense of Congress that Federal
agencies should, in considering requests by entities for any applicable
agency action, exclude entities making a disclosure of an outsourcing
event pursuant to subsection (a) on the grounds that the actions
described in the disclosures are against the public interests of the
United States.
(d) Annual Report.--The head of each Federal agency shall submit to
Congress each year a report on the following:
(1) The number of entities making a disclosure of an
outsourcing event pursuant to subsection (a) in regards to a
request for applicable agency action during the preceding year.
(2) The number of requests for applicable agency action
which were granted by the agency during the preceding year in
which such disclosures were taken into account.
(e) Applicable Agency Action.--For purposes of this section, the
term ``applicable agency action'' means any grant, loan, or loan
guarantee awarded or issued by a Federal agency.
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