[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4186 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4186
To amend titles 41 and 10, United States Code, to include new
requirements for Federal contracts, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 25, 2021
Ms. Schakowsky (for herself, Mr. Danny K. Davis of Illinois, Ms. Lee of
California, Ms. Wilson of Florida, Ms. Pressley, and Ms. Norton)
introduced the following bill; which was referred to the Committee on
Oversight and Reform, and in addition to the Committee on Armed
Services, 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 amend titles 41 and 10, United States Code, to include new
requirements for Federal contracts, 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 ``Patriotic Corporations of America
Act of 2021''.
SEC. 2. FEDERAL PROCUREMENT REQUIREMENTS AND PREFERENCES.
(a) Amendment.--Chapter 47 of division C of subtitle I of title 41,
United States Code, is amended by adding at the end the following new
sections:
``Sec. 4715. Requirements for offerors
``(a) Labor.--The head of an executive agency may not award a
contract unless the following requirements are met:
``(1) The offeror agrees for the duration of the contract
to pay each employee of the offeror a wage of not less than the
greater of--
``(A) $15, increased on an annual basis from such
amount by the annual percentage increase, if any, in
the median hourly wage of all employees as determined
by the Bureau of Labor Statistics; or
``(B) the amount equal to the sum of--
``(i) the wage rate in effect under section
6(a)(1) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(1)); and
``(ii) the amount that is 10 percent of
such wage rate.
``(2) The offeror agrees to sign--
``(A) a neutrality agreement, effective during the
period of the contract, with respect to efforts to form
a labor organization (as defined in section 2 of the
National Labor Relations Act (29 U.S.C. 152)); and
``(B) an agreement, effective during the period of
the contract, not to hire employees to replace any
employee engaged in any strike, picketing, or other
concerted refusal to work or to close a business in
response to such a strike, picketing, or other refusal
to work.
``(3) The head of the executive agency, in consultation
with the National Labor Relations Board, determines that the
offeror has not been found in violation or settled a claim for
a violation of the right of an employee to organize under a
law, including regulations thereof, administered by the
National Labor Relations Board, or of a State regulation
determined relevant by the head of the executive agency, in
consultation with the Secretary of Labor.
``(4) The offeror provides each employee at least 7 days of
paid sick leave, 7 days of paid family and medical leave, and 7
days of paid vacation per year.
``(5) No assessable payment has been imposed, with respect
to the offeror, under section 4980H of the Internal Revenue
Code of 1986, with respect to any of the 12 months ending
before the date on which the contract is awarded.
``(6) The offeror submits to the head of the executive
agency an actionable plan to address natural disasters and
health crises, including policies and plans for--
``(A) the determination of essential employees;
``(B) increased essential employee pay and
quarantine pay;
``(C) paid family and medical leave;
``(D) temporary layoffs;
``(E) whistleblower protections; and
``(F) emergencies in the case of rapidly changing
circumstances.
``(7) The offerer submits to the head of the executive
agency an actionable plan to recruit and promote people of
color, women, LGBTQ+ people, people with disabilities, and
veterans.
``(b) Environmental Sustainability.--The head of an executive
agency may not award a contract unless the head of the executive
agency, in consultation with the Administrator of the Environmental
Protection Agency, determines that the offeror has not, within the
previous 5 years--
``(1) paid a penalty that is greater than $100,000 for a
violation of a law, including regulations thereof, administered
by Environmental Protection Agency; or
``(2) settled a claim in connection with such a violation
for an amount that is greater than $100,000.
``(c) Taxes.--The head of an executive agency may not award a
contract unless the offeror--
``(1) maintains headquarters in the United States;
``(2) has Federal income tax liability which exceeds the
offeror's Federal income tax credits (other than such credits
which constitute cash payments of tax by the offeror);
``(3) is neither an expatriated entity (as defined in
subparagraph (A) of section 7874(a)(2) of the Internal Revenue
Code of 1986) nor a surrogate foreign corporation (as defined
in subparagraph (B) of such section); and
``(4) discloses financial performance and tax information
on a country-by-country basis.
``(d) Private Equity Firm Applicability.--In the case that a
private equity firm holds a controlling interest in an offeror, if the
head of an executive agency determines, in consultation with the
Secretary of Labor, the National Labor Relations Board, and the
Administrator of the Environmental Protection Agency, that one company
in which the private equity firm has a controlling interest violated
subsection (a)(3) or (b), such head shall bar any company in which the
private equity firm had a controlling interest at the time of violation
from participation in a Federal contract for a period of 5 years.
``(e) Employee Defined.--For the purposes of this section, the term
`employee' includes an independent contractor.
``Sec. 4716. Contract preferences
``(a) In General.--There shall be a contract preference for an
offeror that meets any of the following qualifications:
``(1) The offeror does not have a pay ratio of more than
100 to 1.
``(2) The offeror does not outsource jobs outside of the
United States.
``(3) If the offeror has a Board of Directors, the offeror
has at least one seat on such Board of Directors for a
representative elected by the employees.
``(4) The offeror contributes at least 5 percent of the
payroll to a portable pension fund for the employees.
``(5) The offeror provides at least 2 percent of stock to
their employees every year until the company is at least 20
percent owned by employees.
``(6) The offeror has a collective bargaining agreement
with employees.
``(7) Women and people of color make up at least 40 percent
of top executives and, if the offeror has a Board of Directors,
of the members of such Board.
``(8) The offeror publicly discloses workforce gender and
racial composition and pay gaps.
``(9) The offeror provides an affirmative action program
(as defined in section 30.4 of title 29, Code of Federal
Regulations, or a successor regulation) to ensure equal
opportunity in apprenticeships.
``(10) The offeror documents that they have assisted each
individual with an intellectual or developmental disability and
other individual with a significant disability employed by the
employer under an certificate under section 14(c) of the Fair
Labor Standards Act (29 U.S.C. 214(c)) to transition to
opportunities for competitive integrated employment and that
such individuals are employed in such opportunities for not
less than 20 hours per week, on average.
``(b) Application of Preference.--The head of an executive agency
shall apply subsection (a) by providing greater preference to an
offeror that meets a greater number of the qualifications under
paragraphs (1) through (10) of such subsection.
``(c) Definitions.--For the purposes of this section--
``(1) the terms `developmental disability' and `integrated'
have the meaning given the terms in section 102 of the
Developmental Disabilities Assistance and Bill of Rights Act of
2000 (42 U.S.C. 15002);
``(2) the term `employee' includes an independent
contractor; and
``(3) the term `pay ratio' means the ratio described in
section 229.402(u)(1)(iii) of title 17, Code of Federal
Regulations (or any successor regulation), except that if the
highest compensated employee of the corporation is not the
principal executive officer, the ratio shall be determined
based on the compensation of such highest compensated
employee.''.
(b) Technical and Conforming Amendment.--The table of sections for
chapter 47 of division C of subtitle I of title 41, United States Code,
is amended by adding at the end the following new items:
``4715. Requirements for offerors.
``4716. Contract preferences.''.
(c) Applicability.--The amendments made by this section shall apply
to any Federal contract entered into on or after the date of the
enactment of this Act.
SEC. 3. DEPARTMENT OF DEFENSE CONTRACTS.
(a) Additional Requirements for Department of Defense Contracts.--
(1) In general.--Chapter 241 of title 10, United States
Code (as added by section 1816 of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year
2021 (Public Law 116-283)), is amended by adding at the end the
following new section:
``Sec. 3310. Additional requirements for Department of Defense
contracts
``(a) Labor.--The Secretary of Defense may not award a contract
unless the following requirements are met:
``(1) The offeror agrees for the duration of the contract
to pay each employee of the offeror a wage of not less than the
greater of--
``(A) $15, increased on an annual basis from such
amount by the annual percentage increase, if any, in
the median hourly wage of all employees as determined
by the Bureau of Labor Statistics; or
``(B) the amount equal to the sum of--
``(i) the wage rate in effect under section
6(a)(1) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(1)); and
``(ii) the amount that is 10 percent of
such wage rate.
``(2) The offeror agrees to sign--
``(A) a neutrality agreement, effective during the
period of the contract, with respect to efforts to form
a labor organization (as defined in section 2 of the
National Labor Relations Act (29 U.S.C. 152)); and
``(B) an agreement, effective during the period of
the contract, not to hire employees to replace any
employee engaged in any strike, picketing, or other
concerted refusal to work or to close a business in
response to such a strike, picketing, or other refusal
to work.
``(3) The Secretary of Defense, in consultation with the
National Labor Relations Board, determines that the offeror has
not been found in violation or settled a claim for a violation
of the right of an employee to organize under a law, including
regulations thereof, administered by the National Labor
Relations Board, or of a State regulation determined relevant
by the Secretary of Defense, in consultation with the Secretary
of Labor.
``(4) The offeror provides each employee at least seven
days of paid sick leave, seven days of paid family and medical
leave, and seven days of paid vacation per year.
``(5) No assessable payment has been imposed, with respect
to the offeror, under section 4980H of the Internal Revenue
Code of 1986, with respect to any of the 12 months ending
before the date on which the contract is awarded.
``(6) The offeror submits to the Secretary of Defense an
actionable plan to address natural disasters and health crises,
including policies and plans for--
``(A) the determination of essential employees;
``(B) increased essential employee pay and
quarantine pay;
``(C) paid family and medical leave;
``(D) temporary layoffs;
``(E) whistleblower protections; and
``(F) emergencies in the case of rapidly changing
circumstances.
``(7) The offerer submits to the Secretary of Defense an
actionable plan to recruit and promote people of color, women,
LGBTQ+ people, people with disabilities, and veterans.
``(b) Environmental Sustainability.--The Secretary of Defense may
not award a contract unless the Secretary, in consultation with the
Administrator of the Environmental Protection Agency, determines that
the offeror has not, within the previous 5 years--
``(1) paid a penalty that is greater than $100,000 for a
violation of a law, including regulations thereof, administered
by Environmental Protection Agency; or
``(2) settled a claim in connection with such a violation
for an amount that is greater than $100,000.
``(c) Taxes.--The head of an executive agency may not award a
contract unless the offeror--
``(1) maintains headquarters in the United States;
``(2) has Federal income tax liability which exceeds the
offeror's Federal income tax credits (other than such credits
which constitute cash payments of tax by the offeror);
``(3) is neither an expatriated entity (as defined in
subparagraph (A) of section 7874(a)(2) of the Internal Revenue
Code of 1986) nor a surrogate foreign corporation (as defined
in subparagraph (B) of such section); and
``(4) discloses financial performance and tax information
on a country-by-country basis.
``(d) Private Equity Firm Applicability.--In the case that a
private equity firm holds a controlling interest in an offeror, if the
Secretary of Defense determines, in consultation with the Secretary of
Labor, the National Labor Relations Board, and the Administrator of the
Environmental Protection Agency, that one company in which the private
equity firm has a controlling interest violated subsection (a)(3) or
(b), the Secretary shall bar any company in which the private equity
firm had a controlling interest at the time of violation from
contracting with the Department of Defense for a period of 5 years.
``(e) Employee Defined.--For the purposes of this section, the term
`employee' includes an independent contractor.''.
(2) Technical and conforming amendment.--The table of
sections at the beginning of such chapter is amended by adding
at the end the following new item:
``3310. Additional requirements for Department of Defense
contracts.''.
(b) Preference for Contracts With Certain Labor Requirements.--
(1) In general.--Chapter 242 of title 10, United States
Code (as added by section 1817 of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year
2021 (Public Law 116-283)), is amended by adding at the end the
following new section:
``Sec. 3325. Preference for contracts from offerors that meet certain
labor requirements
``(a) In General.--The Secretary of Defense shall establish a
preference for contracting with an offeror that meets any of the
following qualifications:
``(1) The offeror does not have a pay ratio of more than
100 to 1.
``(2) The offeror does not outsource jobs outside of the
United States.
``(3) If the offeror has a Board of Directors, the offeror
has at least one seat on such Board of Directors for a
representative elected by the employees of the offeror.
``(4) The offeror contributes at least 5 percent of the
payroll to a portable pension fund for employees of the
offeror.
``(5) The offeror provides at least 2 percent of stock to
employees of the offeror every year until the company is at
least 20 percent owned such employees.
``(6) The offeror has a collective bargaining agreement
with employees of the offeror.
``(7) Women and people of color make up at least 40 percent
of top executives of the offeror and, if the offeror has a
Board of Directors, of the members of such Board.
``(8) The offeror publicly discloses the gender and racial
composition, and any pay gaps that exist, of the employees of
the offeror.
``(9) The offeror provides an affirmative action program
(as defined in section 30.4 of title 29, Code of Federal
Regulations, or a successor regulation) to ensure equal
opportunity in apprenticeships.
``(10) The offeror documents assistance provided to each
individual with an intellectual or developmental disability and
any other individual with a significant disability employed by
the offeror under an certificate under section 14(c) of the
Fair Labor Standards Act (29 U.S.C. 214(c)) to transition to
opportunities for competitive integrated employment, and that
such individuals are employed in such opportunities for not
less than 20 hours per week, on average.
``(b) Application of Preference.--The Secretary of Defense shall
apply subsection (a) by providing greater preference to an offeror that
meets a greater number of the qualifications under paragraphs (1)
through (10) of such subsection.
``(c) Definitions.--For the purposes of this section--
``(1) the terms `developmental disability' and `integrated'
have the meaning given the terms in section 102 of the
Developmental Disabilities Assistance and Bill of Rights Act of
2000 (42 U.S.C. 15002);
``(2) the term `employee' includes an independent
contractor; and
``(3) the term `pay ratio' means the ratio described in
section 229.402(u)(1)(iii) of title 17, Code of Federal
Regulations (or any successor regulation), except that if the
highest compensated employee of the corporation is not the
principal executive officer, the ratio shall be determined
based on the compensation of such highest compensated
employee.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 242 title 10, United States Code, is
amended by adding at the end the following new item:
``3325. Preference for contracts from offerors that meet
certain labor requirements.''.
(c) Effective Date.--Sections 3310 and 3325 of title 10, United
States Code, as added by subsections (a) and (b), respectively, shall
take effect on January 1, 2022.
(d) Applicability.--This section and the amendments made by this
section shall apply to any Federal contract entered into on or after
the effective date of this section.
(e) References; Saving Provision; Rule of Construction.--Sections
1883 through 1885 of the William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021 (Public Law 116-283) shall apply
with respect to the amendments made by this section as if such
amendments were made under title XVIII of such Act.
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