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Offshore Outsourcing and Related Legislation: Current Federal Action

As of April 20, 2004

Sponsor

 

Bill/Regulation/Request

Summary

Status/Action

The JOBS Act (S. 1637)

Senator Ron Wyden (D-OR)

Amendment 2916 to S. 1637: Jumpstart Our Business Strength (JOBS) Act

Extends Trade Adjustment Assistance to service workers (see below for additional TAA legislation)

3/23/2004 Senate Amendment submitted

Senator Christopher Dodd (D-CT)

Amendment 2660 to S. 1637: Jumpstart Our Business Strength (JOBS) Act

Prohibits outsourcing in government contracting concerning privatization of federal work, federal procurement of goods and services and state government procurement for contracts using federal funds; there is a two year implementation phase-in

3/4/2004: Amendment SA 2660 as modified agreed to in Senate by Yea-Nay Vote. 70 - 26

Senator John McCain (R-AZ)

Amendment 2685 to S. 1637: Jumpstart Our Business Strength (JOBS) Act

Exempts defense-related departments from other federal contracts performed outside the United States

3/4/2004: Amendment SA 2685 agreed to

modifies SA 2660 by Dodd

Senator Mitch McConnell (R-KY)

Amendment 2680 to S. 1637: Jumpstart Our Business Strength (JOBS) Act

Secretary of Commerce must certify that the prohibition on the outsourcing of government contracts does not result in the loss of more jobs than it will protect and will not cause harm to the U.S. economy.

3/4/2004: Amendment SA 2680 agreed to

modifies SA 2660 by Dodd

Trade Adjustment Assistance

Representative Dave Camp (R-MI)

H.R. 4090: Trade Adjustment Assistance Equity

for Service Workers Act of 2004

Extends Trade Adjustment Assistance to the services sector.

Requires the Secretary of Labor shall implement a system to collect data on adversely affected service workers that includes the number of workers by State, industry, and cause of dislocation of each worker.

The Secretary of Commerce shall conduct a study and report to the Congress on ways to improve the timeliness and coverage of data on trade in services, including methods to identify increased imports due to the relocation of United States firms to foreign countries, and increased imports due to United States firms obtaining services from firms in foreign countries.

3/31/04: Referred to House Ways and Means

Representative Peter King (R-NY)

H.R. 3957

Extends Trade Adjustment Assistance to certain service sector workers

3/11/04 Referred to House Ways and Means

Representative Adam Smith (D-WA)

H.R. 3881: Trade Adjustment Assistance Equity For Service Workers Act of 2004

Amends the Trade Act of 1974 to extend the trade adjustment assistance program to the services sector

3/3/2004 Referred to House Committee on Ways and Means.

Senator Max Baucus (D-MT)

S. 2157: The Trade Adjustment Assistance Equity for Service Workers Act of 2004 (note: S. 2157 and H.R. 3881 are not identical)

Amends the Trade Act of 1974 to extend the trade adjustment assistance program to the services sector

3/2/2004 Referred to Senate Committee on Finance

Senator Richard Durbin (D-IL)

S. 2143: Service Workers Fairness Act’

Extends trade adjustment assistance to service workers

2/27/2004 Referred to Senate Committee on Finance.

Other Related Legislation

Senator Fritz Hollings (D-SC)

S. 2235: The Domestic Workforce Protection Act

Incorporates the Office of the United States Trade Representative into the Commerce Department.

Transfers functions of United States International Trade Commission to the Commerce Department.

Disallows certain deductions for corporations who transfer the rights of a copyrighted or trademarked product to an entity outside the U.S.

Requires U.S. Attorney General to appoint Assistant Attorney General for Trade to enforce and investigate activities that have an adverse impact on the U.S. economy

3/25/04: Referred to Senate Finance Committee

Senators Craig Thomas (R-WY) and George Voinovich (R-OH)

*H.R. 2989: Amendment to the FY04 Transportation/ Treasury Appropriations bill

An activity or function of an executive agency that is converted to contractor performance under Office of Management and Budget Circular A-76 may not be performed by the contractor at a location outside the United States except to the extent that such activity or function was previously performed by Federal Government employees outside the United States.

Incorporated into H.R. 2673: FY04 Omnibus Appropriations bill… On 1/23/2004 became part of Public Law No. 108-199.

Primary Omnibus Sponsor: Representative Henry Bonilla (R-TX)

H.R. 2673: FY2004 Omnibus Appropriations bill

SEC. 607. If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a `Made in America' inscription, or any inscription with the same meaning, to any product sold in or shipped to the United States that is not made in the United States, the person shall be ineligible to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility of a contractor described in sections 9.400 through 9.409 of title 48, Code of Federal Regulations.

1/23/2004 became part of Public Law No. 108-199.

language by Senator Richard Shelby (R-AL)

Language from H.R. 2417: Intelligence Authorization Act for Fiscal Year 2004

Not later than February 15, 2004, the Director of Central Intelligence shall submit to the appropriate committees of Congress a report on the extent of United States dependence on computer hardware or software that is manufactured overseas and its threat to national security.

12/13/2003 became law

Representative James Sensenbrenner (R-WI) (incoporated from language proposed by Representative Sheila Jackson-Lee (D-TX))

Amendment to H.R. 1561: United States Patent and Trademark Fee Modernization Act of 2004

Regarding patent search fees, the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office shall require that any search by a qualified search authority that is a commercial entity is conducted in the United States by persons that, if individuals, are United States citizens; and, if business concerns, are organized under the laws of the United States or any State and employ United States citizens to perform the searches.

03/09/04 passed House

Representative Maxine Waters (D-CA)

H.R. 3911

To make certain companies that have outsourced jobs during the previous five years ineligible for the receipt of Federal grants, Federal contracts, Federal loan guarantees, and other Federal funding, and for other purposes

3/4/2004 Referred to House Committee on Government Reform.

Representative Bernard Sanders (I-VT)

H.R. 3888: Defending American Jobs Act

To prohibit business enterprises that lay-off a greater percentage of their United States workers than workers in other countries from receiving any Federal assistance

3/3/2004 Referred to House Committee on Government Reform.

Representative Maxine Waters (D-CA)

H.R. 3878: Commission on American Jobs Act

Establishes the Commission on American Jobs under the Department of Commerce to:

(1) collect data on outsourcing by companies of interest from reports transmitted to the Commission;

(2) identify the number of jobs outsourced by companies of interest, the dates that the jobs were outsourced, and the locations to which the jobs were outsourced;

(3) conduct studies on why the were outsourced; and

(4) propose possible measures to prevent outsourcing by companies of interest.

3/2/2004 Referred to House Committee on Education and the Workforce.

Senator Norm Coleman (R-MN)

S. 2148: USA Jobs Protection Act of 2004

(1) IN GENERAL- Funds appropriated for financial assistance for a State may not be disbursed to or for such State during a fiscal year unless the chief executive of that State has transmitted to the Administrator for Federal Procurement Policy, not later than April 1 of the preceding fiscal year, a written certification that, except as described under paragraph (2), none of such funds will be expended for the performance of State contracts outside the United States.

(2) EXCEPTION- Funds described in paragraph (1) may be expended for the performance of a State contract outside the United States if the chief executive of such State certifies in advance to the Administrator that such expenditure is for a contract that cannot be performed within the United States.

3/1/2004 Referred to Senate Committee on Governmental Affairs.

Senator Max Baucus (D-MT)

??? (bill not introduced yet)

To confront the challenges posed by offshoring, the proposed legislative package will:

 

expand research and development tax credit and increase federal spending on research in the physical sciences and engineering;

offer small employer tax credits, provide funding for employer-based group purchasing pools and increase funding for high-risk pools;

enforce current trade agreements; and

support lifelong education

unknown

Representative Adam Smith (D-WA)

Request to General Accounting Office

Conduct study on IT offshore outsourcing

Request granted; study pending

Senator Tom Daschle (D-SD) (for Senator John Kerry (D-MA)) and Representative Ted Strickland (D-OH)

H.R. 3816/S. 1873: The Call Center Consumer's Right to Know Act of 2003 (bills identical)

A bill to require employees at a call center who either initiate or receive telephone calls to disclose the physical location of such employees.

S. 1873: 11/17/2003- Referred to Senate Committee on Commerce, Science, and Transportation

H.R. 3816: 2/24/2004 Referred to House subcommittee. Status: Referred to the Subcommittee on Commerce, Trade and Consumer Protection.

Senator Tom Daschle (D-SD)

S. 2090: Jobs for America Act of 2004

The bill requires companies that offshore 15 or more jobs to provide at least three months notice of their intentions to offshore. It also requires notification to the Departments of Labor, which compile similar notices and information in order to transmit a report to Congress and the President on the offshoring of jobs.

2/12/2004 Referred to Senate Committee on Health, Education, Labor, and Pensions.

Senator Christopher Dodd (D-CT)

*S. 2094: The United States Workers Protection Act

Funds appropriated for financial Federal assistance for procurement contracts may not be distributed to a state unless the chief executive of that state has transmitted to the Administrator for Federal Procurement Policy a written certification that none of the funds will be expended for goods or services performed outside the United States;

inapplicable to states during first two fiscal years of enactment;

strikes subsection (e) of Section 647 (part of the Thomas-Voinovich amendment to the FY04 Omnibus).

2/12/04 Referred Senate Committee on Governmental Affairs

Senator Hillary Clinton (D-NY)

Senate of the Senate language (S.AMDT.2311) to S.1072: Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003

It is the sense of the Senate that it should - (1) oppose any efforts to encourage the outsourcing of American jobs overseas; and (2) adopt legislation providing for a manufacturing tax incentive to encourage job creation in the United States and oppose efforts to make it cheaper to send jobs overseas.

2/12/2004 Amendment SA 2311 ruled non-germane by the chair

Senator Diane Feinstein (D-NY)

Amendment to S. 1585: Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 2004

Prohibits the Office of the U.S. Trade Representative from entering into trade agreements that contain immigration provisions or that otherwise amend immigration laws

Dropped in conference with House

Senator Christopher Dodd (D-CT) and Representative Nancy Johnson (R-CT)

S. 1452/H.R. 2849: The USA Jobs Protection Act of 2003 (note: bills identical)

The purpose of this Act is to ensure that the H-1B and L-1 visa programs are utilized for the purposes for which they were intended and not to displace American workers with lower cost foreign visa holders, by closing the loopholes in the programs and strengthening enforcement and penalties for violations of laws.

S. 1452: 07/24/2003 Referred to Senate Committee on the Judiciary

H.R. 2849: 09/24/2003- Referred to House Committee on the Judiciary

Representative James Walsh (R-NY)

H.R. 3134: American Manufacturing Retention Act

In the case of any contract for the procurement of goods and services to be entered into by a military department or an executive agency, the head of the military department or the head of the executive agency may not consider a covered prospective contractor to be a responsible source unless the covered prospective contractor employs at least 50 percent of its employees in the United States.

9/17/2003 Referred to the House Committee on Government Reform, and in addition to the House 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

Senator Saxby Chambliss (R-GA)

S. 1635: ***L-1 Visas Reform Act of 2003

Prevents an L-1 visa holder from being stationed primarily with a third-party if the visa holder is supervised by that third-party or the work of the visa holder is not part of his/her intended duty;

9/17/2003 Referred to Senate Judiciary Committee

Representative Tom Tancredo (R-CO)

H.R. 2688

Amends the Immigration and Nationality Act to repeal authorities relating to **H1-B visas for temporary workers

9/4/2003 Referred to House Subcommittee on Immigration, Border Security, and Claims.

Representative Rosa DeLauro (D-NY)

H.R. 2702: L-1 Nonimmigrant Reform Act

Caps L visas at 35,000 for 2004

Requires employer to offer prevailing wage to alien

Requires employer to not outsource alien to another firm

Prohibits employers from displacing a U.S. worker with an L-1 visa status employee

9/4/2003 Referred to House Subcommittee on Immigration, Border Security, and Claims

Representative John Mica (R-FL)

H.R. 2154

Prevent an employer from placing a nonimmigrant who is an intracompany transferee with another employer.

6/25/2003 Referred to House Subcommittee on Immigration, Border Security, and Claims

Representative Ted Strickland (D-OH)

H.R. 2410: Genuine American Flag Act

Prohibits the importation for sale of foreign-made flags of the United States of America

6/10/2003 Referred to House Ways and Means

* May not conform to World Trade Organization’s Agreement on Government Procurement

** The H-1B is a nonimmigrant classification used by an alien who will be employed temporarily in a specialty occupation, i.e. architecture, engineering, mathematics, etc. The current law limits to 65,000 the number of aliens who may be issued a visa or otherwise provided H-1B status in FY2004. Under current law, an alien can be in H-1B status for a maximum period of six years at a time. (Source: U.S. Citizenship and Immigration Services, Department of Homeland Security)

***The L-1 intra-company transferee visa allows executives, managers, and employees with specialized skills to transfer from the foreign company to a U.S. office, subsidiary, or affiliated company to perform temporary services. L-1 visas are granted initially for one to three years with extensions available in two-year increments, with a total stay not to exceed seven years. (Source: American Immigration Network, http://www.usavisanow.com/l1visainfo.html)

For more information, contact:   

Nick Steidel
nick.steidel@ncsl.org                            
202-624-8673

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