,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #hcgg  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,septemb] #bd1        
#bjbj,mr4 ,de,saulnier introduc$ !      
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,ways & ,means1 & 9       
addition to ! ,committee on ,ov]sight & 
,re=m1 = a p]iod to be subsequ5tly      
det]m9$ by ! ,speak]1 9 ea* case =      
consid]ation ( su* provisions z fall )9 
! jurisdiction ( ! committee conc]n$  ,a
 ,,bill  ,to am5d ! ,int]nal ,rev5ue    
,code ( #aihf to adju/ ! rate ( income  
tax ( a publicly trad$ corporation bas$ 
on ! ratio ( comp5sation ( !            
corporation's highe/ paid employee to ! 
m$ian comp5sation ( all ! corporation's 
employees1 & = o!r purposes4  #a4 ,%ort 
title ,?is ,act may be cit$ z ! ,,ceo   
,acc\ntability & ,responsibility ,act4  
#b4 ,income tax rate ( publicly trad$   
corporations bas$ on comp5sation ratio  
7a7 ,9 g5]al ,section #aa ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+3  7e7 ,tax rate (     

publicly trad$ corporations bas$ on     
comp5sation ratio  7#a7 ,9 g5]al ,9 !   
case ( a publicly trad$ corporation 7z  
def9$ 9 section #afb7m77#b771 9 ! am\nt 
( tax "u subsection 7b7 %all be         
det]m9$-- 7,a7 by adju/+ ! highe/ rate (
 tax applicable to ! taxpay] by !       
p]c5tage po9t adju/m5t specifi$ 9       
p>agraph 7#b71 &  7,b7 by mak+ prop]    
adju/m5ts to-- 7i7 ! doll> am\nt 9      
clause 7ii7 ( ! second s5t5ce ( p>agraph
 7#a71 &  7ii7 ! doll> am\nt 9 clause   
7ii7 ( ! ?ird s5t5ce ( p>agraph 7#a74   
7#b7 ,adju/m5t ( tax rate ,= purposes ( 
p>agraph 7#a71 ! p]c5tage po9ts specifi$
 9 ?is p>agraph %all be det]m9$ z       
foll[s3 ,if ! comp5sation ratio is3,!   
p]c5tage po9t adju/m5t is3,m ?an #ajj b 
n m ?an #aejj4e p]c5tage points,more ?an
 #aej b n m ?an #bjja p]c5tage          
points,more ?an #bjj b n m ?an #beja4e  
p]c5tage points,more ?an #bej b n m ?an 
#cjjb p]c5tage points,more ?an #cjj b n 
m ?an #djjb4e p]c5tage points,more ?an  
#djjc p]c5tage po9ts4  7#c7 ,def9itions 

,= purposes ( ?is subsection-- 7,a7     
,comp5sation ratio ,! t]m comp5sation   
ratio means1 ) respect to any taxable   
ye>1 a ratio-- 7i7 ! num]ator ( :i* is !
 am\nt equal to ! great] ( ! comp5sation
 ( ! *ief executive (fic] or ! highe/   
paid employee ( ! taxpay] = ! cal5d> ye>
 prec$+ ! beg9n+ ( ! taxable ye>1 &     
7ii7 ! d5om9ator ( :i* is ! am\nt equal 
to ! m$ian comp5sation ( all employees  
employ$ by ! taxpay] 9 ! ,unit$ ,/ates =
 ! cal5d> ye> prec$+ ! beg9n+ ( !       
taxable ye>4  7,b7 ,comp5sation  7i7    
,employees ,9 ! case ( employees ( !    
taxpay] o!r ?an ! *ief executive (fic]  
or ! highe/ paid employee1 ! t]m        
comp5sation means wages 7z def9$ 9      
section #caba7;a77 paid by ! taxpay]    
dur+ a cal5d> ye>4  7ii7 ,,ceo & highe/ 
paid employee ,9 ! case ( ! *ief        
executive (fic] & ! highe/ paid employee
 ( ! taxpay]1 ! t]m comp5sation means   
total comp5sation = ! cal5d> ye>1 z     
report$ 9 ! ,summ>y ,comp5sation ,table 
report$ to ! ,securities & ,ex*ange     

,commission pursuant to ,item #djb (    
,regulation ,s-,k ( ! ,securities &     
,ex*ange ,commission4  7#d7 ,special    
rule if contract$ or =eign employee     
ratio increases  7,a7 ,9 g5]al ,if-- 7i7
 ! total numb] ( full-"t employees1     
det]m9$ on an annual full-"t equival5t  
basis1 employ$ by ! taxpay] 9 ! ,unit$  
,/ates = a taxable ye> is r$uc$ by m ?an
 #aj p]c5t1 z comp>$ to ! total numb] ( 
full-"t employees1 det]m9$ on an annual 
full-"t equival5t basis1 employ$ by !   
taxpay] 9 ! ,unit$ ,/ates = ! prec$+    
taxable ye>1 &  7ii7 ! total numb] (    
contract$ employees or =eign full-"t    
employees1 det]m9$ on an annual full-"t 
equival5t basis1 ( ! taxpay] = t taxable
 ye> has increas$1 z comp>$ ) ! total   
numb] ( contract$ employees or =eign    
full-"t employees1 det]m9$ on an annual 
full-"t equival5t basis1 ( ! taxpay] = !
 prec$+ taxable ye>1  !n ! applicable   
tax rate det]m9$ "u p>agraph 7#b7 %all  
be increas$ by #ej p]c5t4 ,= taxpay]s :o
 fir/ comm5ce do+ bus9ess dur+ ! taxable

 ye>1 ! numb] ( full-"t employees1      
contract$ employees1 & =eign full-"t    
employees = ! imm$iately prec$+ prior   
taxable ye> %all be z]o4  7,b7          
,def9itions ,= purposes ( ?is p>agraph--
 7i7 ,annual full-"t equival5t ,! t]m   
annual full-"t equival5t means-- 7,i7 9 
! case ( a full-"t employee paid h\rly  
qualifi$ wages1 ! total numb] ( h\rs    
work$ = ! taxpay] by ! employee1 n to   
exce$ #b1jjj h\rs p] employee1 divid$ by
 #b1jjj1 &  7,,ii7 9 ! case ( a sal>i$  
full-"t employee1 ! total numb] ( weeks 
work$ = ! taxpay] by ! employee divid$  
by #eb4  7ii7 ,contract$ full-"t        
employee ,! t]m contract$ full-"t       
employee means an individual engag$ by !
 taxpay] to provide a specific set (    
s]vices e/abli%$ pursuant to ! t]ms &   
conditions ( a writt5 employm5t contract
 t del9eates ! l5g? ( employm5t1 ! sal>y
 & bonuses 7if any7 to be paid1 & !     
b5efits t accrue to t individual4  7iii7
 ,=eign full-"t employee ,! t]m =eign   
full-"t employee means a full-"t        

employee ( ! taxpay] t is employ$ at a  
location o!r ?an ! ,unit$ ,/ates4  7iv7 
,full-"t employee ,! t]m full-"t        
employee means an employee ( ! taxpay] t
 ei!r-- 7,i7 is paid comp5sation by !   
taxpay] = s]vices ( n less ?an an av]age
 ( #ce h\rs p] week1 or  7,,ii7 is a    
sal>i$ employee ( ! taxpay] & is paid   
comp5sation dur+ ! taxable ye> = full-"t
 employm5t4  7#e7 ,controll$ gr\ps ,=   
purposes ( ?is subsection1 all p]sons   
treat$ z a s+le employ] "u subsection   
7b71 7c71 7m7 or 7o7 ( section #dad %all
 be treat$ z "o p]son4  7#f7 ,reports ,!
 taxpay] %all furni% su* reports to !   
,secret>y ) respect to comp5sation & su*
 o!r matt]s z ! ,secret>y may require4  
,! reports requir$ by ?is subsection    
%all be fil$ at su* "t & 9 su* mann] z  
may be requir$ by ! ,secret>y4  7#g7    
,regulations ,! ,secret>y %all prescribe
 su* regulations & o!r guidance z may be
 necess>y or appropriate to c>ry out ?is
 subsection1 includ+ any guidel9es      
reg>d+ ! det]m9ation ( wages1 av]age    

comp5sation1 & comp5sation ratio4  4    
7b7 ,effective date ,! am5dm5t made by  
subsection 7a7 %all apply to taxable    
ye>s beg9n+ aft] ! date ( ! enactm5t (  
?is ,act4  #c4 ,contract+ pref]5ce =    
entities ) c]ta9 pay ratios  7a7        
,am5dm5t ,*apt] #dg ( title #da1 ,unit$ 
,/ates ,code1 is am5d$ by ins]t+ aft]   
section #dgab ! foll[+ new section3     
#dgae4 ,pref]5ce = entities ) c]ta9 pay 
ratios  7a7 ,prohibition ,9 ! evaluation
 ( bids or proposals = a contract = !   
procurem5t ( goods or s]vices1 ! head ( 
an executive ag5cy %all provide a       
pref]5ce to an entity t = ! previ\s     
cal5d> ye> has a comp5sation ratio (    
less ?an #ej-to-#a4  7b7 ,comp5sation   
ratio def9$ ,9 ?is section1 ! t]m       
comp5sation ratio has ! mean+ giv5 t t]m
 9 section #aa7;e77#c77;,a7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf1 except ! ratio  
det]m9$ = ! cal5d> ye> prec$+ ! cal5d>  
ye> ( ! contract to :i* ?is section     
applies4  4  7b7 ,cl]ical am5dm5t ,!    
table ( sections at ! beg9n+ ( su* *apt]

 is am5d$ by ins]t+ aft] ! item relat+  
to section #dgad ! foll[+ new item3     
#dgae4 ,pref]5ce = entities ) c]ta9 pay 
ratios4  4