,i #aafth ,,congress #b;d ,session ,h4 ,r4 #faba ,,in ,,the ,,house ,,of ,,representatives ,march #e1 #bjbj,mr4 ,pocan 7for himself1 ,ms4 ,kaptur1 ,ms4 ,lee of ,california1 ,ms4 ,norton1 and ,mr4 ,ryan7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,education and ,labor1 ,armed ,services1 and ,oversight and ,reform1 for a period to be subsequently determined by the ,speaker1 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 ,america1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,end ,outsourcing ,act4 #b4 ,outsourcing statement in worker adjustment and retraining notice 7a7 ,outsourcing statement ,section #c of the ,worker ,adjustment and ,retraining ,notification ,act 7#bi ,u4,s4,c4 #bajb7 is amended by adding at the end the following3 7e7 ,outsourcing statement 7#a7 ,in general ,for purposes of subsection 7a71 the employer shall include an outsourcing statement in the notice described in that subsection4 ,the outsourcing statement shall specify whether part or all of the positions held by affected employees covered by subsection 7a7 will be moved to a country outside the ,united ,states1 regardless of whether the positions are moved within the business enterprise involved or to another business enterprise4 ,the employer shall make the determination of whether the positions are being so moved in accordance with regulations issued by the ,secretary4 ,the employer shall serve the notice as required under subsection 7a7 and submit the notice to the ,secretary of ,labor4 7#b7 ,list ,not less often than annually1 the ,secretary shall publish and make available on the website of the ,department of ,labor1 a list including each employer who-- 7,a7 has included an outsourcing statement in a notice under paragraph 7#a72 or 7,b7 has incurred liability under section #e1 in part or in whole1 because the employer ordered a plant closing or mass layoff without having served a notice that is required1 under this section1 to include an outsourcing statement4 4 7b7 ,implementation report ,the ,worker ,adjustment and ,retraining ,notification ,act is amended by inserting after section #aj 7#bi ,u4,s4,c4 #baji7 the following3 #aj;,a4 ,implementation study 7a7 ,study ,the ,comptroller ,general of the ,united ,states shall conduct a study of the implementation of section #c7;e7 of the ,worker ,adjustment and ,retraining ,notification ,act 7#bi ,u4,s4,c4 #bajb7;e77 by the ,department of ,labor4 7b7 ,report ,not later than #c years after the date of enactment of this section1 the ,comptroller ,general shall submit to the appropriate committees of ,congress a report containing the results of the study4 4 #c4 ,denial of deduction for outsourcing expenses 7a7 ,in general ,part ,,ix of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #bhj;,i4 ,outsourcing expenses 7a7 ,in general ,no deduction otherwise allowable under this chapter shall be allowed for any specified outsourcing expense4 7b7 ,specified outsourcing expense ,for purposes of this section-- 7#a7 ,in general ,the term specified outsourcing expense means-- 7,a7 any eligible expense paid or incurred by the taxpayer in connection with the elimination of any business unit of the taxpayer 7or of any member of any expanded affiliated group in which the taxpayer is also a member7 located within the ,united ,states1 and 7,b7 any eligible expense paid or incurred by the taxpayer in connection with the establishment of any business unit of the taxpayer 7or of any member of any expanded affiliated group in which the taxpayer is also a member7 located outside the ,united ,states1 if such establishment constitutes the relocation of the business unit so eliminated4 ,for purposes of the preceding sentence1 a relocation shall not be treated as failing to occur merely because such elimination occurs in a different taxable year than such establishment4 7#b7 ,eligible expenses ,the term eligible expenses means-- 7,a7 any amount for which a deduction is allowed to the taxpayer under section #afb1 and 7,b7 permit and license fees1 lease brokerage fees1 equipment installation costs1 and1 to the extent provided by the ,secretary1 other similar expenses4 ,such term does not include any compensation which is paid or incurred in connection with severance from employment and1 to the extent provided by the ,secretary1 any similar amount4 7#c7 ,business unit ,the term business unit means-- 7,a7 any trade or business1 and 7,b7 any line of business1 or functional unit1 which is part of any trade or business4 7#d7 ,expanded affiliated group ,the term expanded affiliated group means an affiliated group as defined in section #aejd7;a71 determined without regard to section #aejd7;b77#c7 and by substituting more than #ej percent for at least #hj percent each place it appears in section #aejd7;a74 ,a partnership or any other entity 7other than a corporation7 shall be treated as a member of an expanded affiliated group if such entity is controlled 7within the meaning of section #ied7;d77#c77 by members of such group 7including any entity treated as a member of such group by reason of this paragraph74 7#e7 ,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 unit4 7c7 ,special rules 7#a7 ,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 incurred1 such portion shall neither be chargeable to capital account nor amortizable4 7#b7 ,possessions treated as part of the ,united ,states ,for purposes of this section1 the term ,united ,states shall be treated as including each possession of the ,united ,states 7including the ,commonwealth of ,puerto ,rico and the ,commonwealth of the ,northern ,mariana ,islands74 7d7 ,regulations ,the ,secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section1 including regulations which provide 7or create a rebuttable presumption7 that certain establishments of business units outside the ,united ,states will be treated as relocations 7based on timing or such other factors as the ,secretary may provide7 of business units eliminated within the ,united ,states4 4 7b7 ,limitation on subpart ,f income of controlled foreign corporations determined without regard to specified outsourcing expenses ,subsection 7c7 of section #ieb of such ,code is amended by adding at the end the following new paragraph3 7#d7 ,earnings and profits determined without regard to specified outsourcing expenses ,for purposes of this subsection1 earnings and profits of any controlled foreign corporation shall be determined without regard to any specified outsourcing expense 7as defined in section #bhj;,i7b774 4 7c7 ,clerical amendment ,the table of sections for part ,,ix of subchapter ,b of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #bhj;,i4 ,outsourcing expenses4 4 7d7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this ,act4 #d4 ,denial of certain deductions and accounting methods for outsourcing employers 7a7 ,in general ,part ,,ix of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf1 as amended by section #c1 is amended by adding at the end the following new section3 #bhj;,j4 ,limitations for outsourcing employers 7a7 ,in general ,during the disallowance period1 an applicable taxpayer-- 7#a7 may not use the method provided in section #dgb7;b7 in inventorying goods1 7#b7 may not use the lower of cost or market method of determining inventories for purposes of determining income1 and 7#c7 shall not be allowed any deduction under section #afc for interest paid or accrued on indebtedness4 7b7 ,applicable taxpayer ,for purposes of subsection 7a71 the term applicable taxpayer means a taxpayer which-- 7#a7 during the taxable year1 has served written notice under subsection 7a7 of section #c of the ,worker ,adjustment and ,retraining ,notification ,act which includes an outsourcing statement described in subsection 7e7 of such section1 and 7#b7 the cumulative employment loss 7excluding any part-time employees7 for positions at facilities owned by such taxpayer which will be moved to a country outside of the ,united ,states1 as determined pursuant to any outsourcing statements served by such taxpayer during such taxable year1 exceeds #ej employees4 7c7 ,disallowance period ,for purposes of subsection 7a71 the disallowance period is the period of #c taxable years after the taxable year in which the statements described in subsection 7b77#b7 are required to be served4 7d7 ,expanded affiliated group treated as single taxpayer ,for purposes of this section1 the members of an expanded affiliated group 7as defined in section #bhj;,i7b77#d77 shall be treated as a single taxpayer4 7e7 ,regulations ,the ,secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section4 4 7b7 ,clerical amendment ,the table of sections for part ,,ix of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf1 as amended by section #c1 is amended by adding at the end the following new item3 ,sec4 #bhj;,j4 ,limitations for outsourcing employers4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #e4 ,current year inclusion of net ,,cfc tested income 7a7 ,repeal of tax-,free deemed return on investments 7#a7 ,in general ,section #iea;,a7a7 of the ,internal ,revenue ,code of #aihf is amended by striking global intangible low-taxed income and inserting net ,,cfc tested income4 7#b7 ,conforming amendments 7,a7 ,section #iea;,a of such ,code is amended by striking subsections 7b7 and 7d74 7,b7 ,section #iea;,a7e77#a7 of such ,code is amended by striking subsections 7b71 7c77#a77;,a71 and and inserting subsections 7c77#a77;,a7 and4 7,c7 ,section #iea;,a7f7 of such ,code is amended to read as follows3 7f7 ,treatment as subpart ,f income for certain purposes 7#a7 ,in general ,except as provided in paragraph 7#b71 any net ,,cfc tested income included in gross income under subsection 7a7 shall be treated in the same manner as an amount included under section #iea7;a77#a77;,a7 for purposes of applying sections #afh7;h77#b77;,b71 #ece7;b77#aj71 #hea7;b71 #ijd7;h77#a71 #iei1 #ifa1 #ifb1 #iic7;a77#a77;,e71 #iif7;f77#a71 #abdh7;b77#a71 #abdh7;d77#a71 #feja7;e77#a77;,c71 #ffed7;d77#b77;,d71 and #ffee7;e77#d74 7#b7 ,exception ,the ,secretary shall provide rules for the application of paragraph 7#a7 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 corporation4 4 7,d7 ,section #ifj7;d77#b77;,a7 of such ,code is amended by striking global intangible low-taxed income 7as defined in section #iea;,a7b77 and inserting net ,,cfc tested income 7as defined in section #iea;,a7c774 7b7 ,repeal of reduced rate of tax on net ,,cfc tested income 7#a7 ,in general ,part ,,viii of subchapter ,b of chapter #a of such ,code is amended by striking section #bej 7and by striking the item relating to such section in the table of sections of such part74 7#b7 ,conforming amendments 7,a7 ,section #ei;,a7c77#d77;,b77i7 of such ,code is amended by striking section #agb1 #bde;,a1 or #bej and inserting section #agb or #bde;,a4 7,b7 ,section #agb7;d7 of such ,code is amended by striking paragraph 7#i74 7,c7 ,section #bdf7;b77#a7 of such ,code is amended-- 7i7 by striking subsection 7a7 and 7b7 of section #bde1 and section #bej and inserting and subsection 7a7 and 7b7 of section #bde2 and 7ii7 by striking subsection 7a7 and 7b7 of section #bde1 and #bej and inserting and subsection 7a7 and 7b7 of section #bde4 7,d7 ,section #dfi7;i77#c77;,f77iii7 is amended by striking #bbb1 and #bej and inserting and #bbb4 7c7 ,net ,,cfc tested income determined without regard to high tax foreign income ,section #iea;,a7c77#b77;,a77i7 of such ,code is amended by redesignating subclauses 7,,iv7 and 7,v7 as subclauses 7,v7 and 7,,vi71 respectively1 and by inserting after subclause 7,,iii7 the following new subclause3 7,,iv7 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 #aa1 4 7d7 ,repeal of exclusion of foreign oil and gas extraction income from the determination of tested income ,section #iea;,a7c77#b77;,a77i7 of such ,code1 as amended by subsection 7c7 is amended-- 7#a7 by adding and at the end of subclause 7,,iv72 7#b7 by striking and at the end of subclause 7,v7 and inserting over2 and 7#c7 by striking subclause 7,,vi74 7e7 ,increase in deemed paid credit for taxes properly attributable to tested income 7#a7 ,in general ,section #ifj7;d7 of such ,code is amended by striking #hj percent of4 7#b7 ,conforming amendment ,section #gh of such ,code is amended by striking 7determined without regard to the phrase 8#hj percent of0 in subsection 7d77#a7 thereof74 7f7 ,effective date 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendments made by this section shall apply to taxable years of foreign corporations beginning after ,december #ca1 #bjai1 and to taxable years of ,united ,states shareholders in which or with which such taxable years of foreign corporations end4 7#b7 ,repeal of reduced rate of tax2 increase in deemed paid credit ,the amendments made by subsections 7b7 and 7e7 shall apply to taxable years beginning after ,december #ca1 #bjai4 #f4 ,recapture of credits for outsourcing employers 7a7 ,in general ,part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subpart3 ,h ,recapture of credits for outsourcing employers ,sec4 #ed4 ,recapture of credits for outsourcing employers4 #ed4 ,recapture of credits for outsourcing employers 7a7 ,in general ,pursuant to regulations prescribed by the ,secretary1 in the case of a taxpayer which owns a facility for which there is an outsourcing event during the taxable year1 the tax under this chapter for such taxable year shall be increased by the amount equal to the sum of-- 7#a7 any credits allowed under this chapter relating to expenses for design1 construction1 operation1 or maintenance of such facility during the #e taxable years preceding such taxable year1 and 7#b7 any grants provided by the ,secretary in lieu of credits described in paragraph 7#a7 during the #e taxable years preceding such taxable year4 7b7 ,outsourcing event ,for purposes of subsection 7a71 the term outsourcing event means a plant closing or mass layoff 7as described in section #b7;a7 of the ,worker ,adjustment and ,retraining ,notification ,act7 in which the employment loss 7excluding any part-time employees7 for positions which will be moved to a country outside of the ,united ,states1 as determined pursuant to the outsourcing statement 7as described in paragraph 7#a7 of such section #c7;e7 of such ,act7 served by the taxpayer during the taxable year1 exceeds #ej employees4 7c7 ,expanded affiliated group treated as single taxpayer ,for purposes of this section1 the members of an expanded affiliated group 7as defined in section #bhj;,i7b77#d77 shall be treated as a single taxpayer4 4 7b7 ,clerical amendment ,the table of subparts for part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,subpart ,h4 ,recapture of credits for outsourcing employers 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #g4 ,credit for insourcing expenses 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,t4 ,credit for insourcing expenses 7a7 ,in general ,for purposes of section #ch1 the insourcing expenses credit for any taxable year is an amount equal to #bj percent of the eligible insourcing expenses of the taxpayer which are taken into account in such taxable year under subsection 7d74 7b7 ,eligible insourcing expenses ,for purposes of this section-- 7#a7 ,in general ,the term eligible insourcing expenses means-- 7,a7 eligible expenses paid or incurred by the taxpayer in connection with the elimination of any business unit of the taxpayer 7or of any member of any expanded affiliated group in which the taxpayer is also a member7 located outside the ,united ,states1 and 7,b7 eligible expenses paid or incurred by the taxpayer in connection with the establishment of any business unit of the taxpayer 7or of any member of any expanded affiliated group in which the taxpayer is also a member7 located within-- 7i7 a ,h,u,b,zone 7as defined in section #c7p77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7p77#b7771 or 7ii7 a low-income community 7as described in section #de;,d7e771 if such establishment constitutes the relocation of the business unit so eliminated4 ,for purposes of the preceding sentence1 a relocation shall not be treated as failing to occur merely because such elimination occurs in a different taxable year than such establishment4 7#b7 ,eligible expenses ,the term eligible expenses means-- 7,a7 any amount for which a deduction is allowed to the taxpayer under section #afb1 and 7,b7 permit and license fees1 lease brokerage fees1 equipment installation costs1 and1 to the extent provided by the ,secretary1 other similar expenses4 ,such term does not include any compensation which is paid or incurred in connection with severance from employment and1 to the extent provided by the ,secretary1 any similar amount4 7#c7 ,business unit ,the term business unit means-- 7,a7 any trade or business1 and 7,b7 any line of business1 or functional unit1 which is part of any trade or business4 7#d7 ,expanded affiliated group ,the term expanded affiliated group means an affiliated group as defined in section #aejd7;a71 determined without regard to section #aejd7;b77#c7 and by substituting more than #ej percent for at least #hj percent each place it appears in section #aejd7;a74 ,a partnership or any other entity 7other than a corporation7 shall be treated as a member of an expanded affiliated group if such entity is controlled 7within the meaning of section #ied7;d77#c77 by members of such group 7including any entity treated as a member of such group by reason of this paragraph74 7#e7 ,expenses must be pursuant to insourcing plan ,amounts shall be taken into account under paragraph 7#a7 only to the extent that such amounts are paid or incurred pursuant to a written plan to carry out the relocation described in paragraph 7#a74 7#f7 ,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 unit4 7c7 ,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 incurred4 ,for purposes of this subsection1 full-time equivalent employees has the meaning given such term under section #de,r7d7 7and the applicable rules of section #de,r7e774 ,all employers treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad shall be treated as a single employer for purposes of this subsection4 7d7 ,credit allowed upon completion of insourcing plan 7#a7 ,in general ,except as provided in paragraph 7#b71 eligible insourcing expenses shall be taken into account under subsection 7a7 in the taxable year during which the plan described in subsection 7b77#e7 has been completed and all eligible insourcing expenses pursuant to such plan have been paid or incurred4 7#b7 ,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 paragraph1 eligible insourcing expenses shall be taken into account under subsection 7a7 in the first taxable year after the taxable year described in paragraph 7#a74 7e7 ,possessions treated as part of the ,united ,states ,for purposes of this section1 the term ,united ,states shall be treated as including each possession of the ,united ,states 7including the ,commonwealth of ,puerto ,rico and the ,commonwealth of the ,northern ,mariana ,islands74 7f7 ,regulations ,the ,secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section4 4 7b7 ,credit ,to be part of general business credit ,subsection 7b7 of section #ch of such ,code is amended by striking plus at the end of paragraph 7#ca71 by striking the period at the end of paragraph 7#cb7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cc7 the insourcing expenses credit determined under section #de,t7a74 4 7c7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de,t4 ,credit for insourcing expenses4 4 7d7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this ,act4 7e7 ,application to ,united ,states possessions 7#a7 ,payments to possessions 7,a7 ,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 #de,t of the ,internal ,revenue ,code of #aihf4 ,such amount shall be determined by the ,secretary of the ,treasury based on information provided by the government of the respective possession4 7,b7 ,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 #de,t of such ,code if a mirror code tax system had been in effect in such possession4 ,the preceding sentence shall not apply with respect to any possession of the ,united ,states unless such possession has a plan1 which has been approved by the ,secretary of the ,treasury1 under which such possession will promptly distribute such payment to the residents of such possession4 7#b7 ,coordination with credit allowed against united states income taxes ,no credit shall be allowed against ,united ,states income taxes under section #de,t of such ,code to any person-- 7,a7 to whom a credit is allowed against taxes imposed by the possession by reason of such section1 or 7,b7 who is eligible for a payment under a plan described in paragraph 7#a77;,b74 7#c7 ,definitions and special rules 7,a7 ,possessions of the ,united ,states ,for purposes of this section1 the term possession of the ,united ,states includes the ,commonwealth of ,puerto ,rico and the ,commonwealth of the ,northern ,mariana ,islands4 7,b7 ,mirror code tax system ,for purposes of this section1 the term mirror code tax system means1 with respect to any possession of the ,united ,states1 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 ,states4 7,c7 ,treatment of payments ,for purposes of section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 the payments under this section shall be treated in the same manner as a refund due from sections referred to in such section #acbd7;b77#b74 #h4 ,authority for ,federal contracting officers to take the outsourcing of jobs from the ,united ,states into account in awarding contracts 7a7 ,department of ,defense and related agency contracts 7#a7 ,consideration of outsourcing 7,a7 ,in general ,chapter #acg of title #aj1 ,united ,states ,code1 is amended by inserting after section #bcbg the following new section3 #bcbg;a4 ,contracts3 consideration of outsourcing of jobs 7a7 ,disclosure of outsourcing of jobs 7#a7 ,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 contractor1 or a subsidiary of the contractor1 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 proposal4 7#b7 ,outsourcing event ,for purposes of paragraph 7#a71 the term outsourcing event means a plant closing or mass layoff 7as described in section #b7;a7 of the ,worker ,adjustment and ,retraining ,notification ,act7 in which the employment loss 7excluding any part-time employees7 for positions which will be moved to a country outside of the ,united ,states1 as determined pursuant to the outsourcing statement 7as described in paragraph 7#a7 of such section #c7;e7 of such ,act7 served by the taxpayer during the taxable year1 exceeds #ej employees4 7b7 ,consideration authorized 7#a7 ,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 7a7 in such bids and proposals4 7#b7 ,the head of an agency shall establish a negative preference of no less than #aj 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 7a74 7c7 ,sense of ,congress ,it is the sense of ,congress that agency contracting officers should1 using section #bcjd7;b77#c7 of this title1 exclude contractors making a disclosure pursuant to subsection 7a7 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 ,states4 7d7 ,annual report ,the head of each agency shall submit to ,congress each year a report on the following3 7#a7 ,the number of solicitations made by the agency during the preceding year for which disclosures were made pursuant to subsection 7a7 in responsive bids or proposals4 7#b7 ,the number of contracts awarded by the agency during the preceding year in which such disclosures were taken into account in the contract award4 4 7,b7 ,clerical amendment ,the table of sections at the beginning of chapter #acg of such title is amended by inserting after the item relating to section #bcbg the following new item3 #bcbg;a4 ,contracts3 consideration of outsourcing of jobs4 4 7#b7 ,exclusion of firms from sources ,section #bcjd7;b7 of such title is amended-- 7,a7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#d7 and 7#e71 respectively2 7,b7 by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,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 #bcbg;a7a7 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 grounds4 ,any such determination shall take into account the sense of ,congress set forth in section #bcbg;a7c7 of this title4 2 and 7,c7 in paragraph 7#d71 as so redesignated1 by striking paragraphs 7#a7 and 7#b7 and inserting paragraphs 7#a71 7#b71 and 7#c74 7b7 ,other ,federal contracts 7#a7 ,consideration of outsourcing ,chapter #ce of title #da1 ,united ,states ,code1 is amended by inserting after section #ccjc the following new section3 #ccjc;a4 ,bidders outsourcing jobs3 disclosure of outsourcing2 consideration of outsourcing in award2 exclusion from sources 7a7 ,disclosure of outsourcing of jobs 7#a7 ,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 contractor1 or a subsidiary of the contractor1 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 proposal4 7#b7 ,outsourcing event ,for purposes of paragraph 7#a71 the term outsourcing event means a plant closing or mass layoff 7as described in section #b7;a7 of the ,worker ,adjustment and ,retraining ,notification ,act7 in which the employment loss 7excluding any part-time employees7 for positions which will be moved to a country outside of the ,united ,states1 as determined pursuant to the outsourcing statement 7as described in paragraph 7#a7 of such section #c7;e7 of such ,act7 served by the taxpayer during the taxable year1 exceeds #ej employees4 7b7 ,consideration authorized 7#a7 ,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 7a7 in such bids and proposals4 7#b7 ,the head of an executive agency shall establish a negative preference of no less than #aj 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 7a74 7c7 ,exclusion from sources 7#a7 ,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 7a7 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 grounds4 ,any such determination shall take into account the sense of ,congress set forth in paragraph 7#b74 7#b7 ,sense of ,congress ,it is the sense of ,congress that contracting officers of executive agencies may use paragraph 7#a7 to exclude contractors making a disclosure pursuant to subsection 7a7 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 ,states4 7d7 ,annual report ,the head of each executive agency shall submit to ,congress each year a report on the following3 7#a7 ,the number of solicitations made by the executive agency during the preceding year for which disclosures were made pursuant to subsection 7a7 in responsive bids or proposals4 7#b7 ,the number of contracts awarded to contractors that disclosed having outsourced more than #ej jobs during the preceding three years4 4 7#b7 ,clerical amendment ,the table of sections at the beginning of chapter #ce of such title is amended by inserting after the item relating to section #ccjc the following new item3 #ccjc;a4 ,bidders outsourcing jobs3 disclosure of outsourcing2 consideration of outsourcing in award2 exclusion from sources4 4 7#c7 ,conforming amendment ,section #ccja7;a7 of such title is amended by inserting #ccjc;a7c71 after #ccjc14 7c7 ,regulations 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,federal ,acquisition ,regulatory ,council1 in consultation with the heads of relevant agencies1 shall amend the ,federal ,acquisition ,regulation and the ,defense ,federal ,acquisition ,regulation ,supplement to carry out the requirements of section #ccjc;a of title #da1 ,united ,states ,code1 and section #bcbg;a of title #aj1 ,united ,states ,code1 as added by this section4 7#b7 ,definition of outsourcing ,for purposes of defining outsourcing pursuant to paragraph 7#a71 the ,federal ,acquisition ,regulatory ,council may utilize regulations prescribed by the ,secretary of ,labor4 7d7 ,rule of construction ,this section1 and the amendments made by this section1 shall be applied in a manner consistent with ,united ,states obligations under international agreements4 #i4 ,authority for ,federal agencies to take the outsourcing of jobs from the ,united ,states into account for grants1 loans1 and loan guarantees 7a7 ,disclosure of outsourcing of jobs 7#a7 ,in general ,the head of any ,federal agency1 or their delegate1 shall require any entity that submits a request for an applicable agency action to disclose in the request if such entity1 or any subsidiary of such entity1 owns a facility for which there is an outsourcing event during the #c-year period ending on the date of the submission of the request4 7#b7 ,outsourcing event ,for purposes of paragraph 7#a71 the term outsourcing event means a plant closing or mass layoff 7as described in section #b7;a7 of the ,worker ,adjustment and ,retraining ,notification ,act7 in which the employment loss 7excluding any part-time employees7 for positions which will be moved to a country outside of the ,united ,states1 as determined pursuant to the outsourcing statement 7as described in paragraph 7#a7 of such section #c7;e7 of such ,act71 exceeds #ej employees4 7b7 ,consideration authority 7#a7 ,in general ,in considering a request by an entity for an applicable agency action1 the head of any ,federal agency1 as well as any officers1 employees1 and contractors of such ,agency1 shall take into account any disclosure made pursuant to subsection 7a7 for purposes of such request4 7#b7 ,negative preference ,the head of any ,federal agency shall establish a negative preference of not less than #aj percent of the scoring evaluation for any request for an applicable agency action by an entity that makes a disclosure pursuant to subsection 7a74 7c7 ,sense of ,congress ,it is the sense of ,congress that ,federal agencies should1 in considering requests by entities for any applicable agency action1 exclude entities making a disclosure of an outsourcing event pursuant to subsection 7a7 on the grounds that the actions described in the disclosures are against the public interests of the ,united ,states4 7d7 ,annual report ,the head of each ,federal agency shall submit to ,congress each year a report on the following3 7#a7 ,the number of entities making a disclosure of an outsourcing event pursuant to subsection 7a7 in regards to a request for applicable agency action during the preceding year4 7#b7 ,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 account4 7e7 ,applicable agency action ,for purposes of this section1 the term applicable agency action means any grant1 loan1 or loan guarantee awarded or issued by a ,federal agency4