SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jobs Preservation Act of 1993''.

SEC. 2. NOTIFICATION OF CERTAIN PLANT CLOSINGS TO THE SECRETARY OF THE 
              TREASURY; ADDITIONAL INFORMATION REQUIRED ON CERTAIN 
              NOTICES.

    (a) General Rule.--Subsection (a) of section 3 of the Worker 
Adjustment and Retraining Notification Act (29 U.S.C. 2102) is 
amended--
            (1) by striking ``and'' at the end of paragraph (1), by 
        striking the period at the end of paragraph (2) and inserting 
        ``; and'', and by inserting after paragraph (2) the following 
        new paragraph:
            ``(3) to the Secretary of the Treasury if the employer or 
        any person related to the employer (within the meaning of 
        section 936(h)(3)(D) of the Internal Revenue Code of 1986) 
        holds (directly or indirectly) any stock in a corporation 
        eligible for the credit provided by section 936 of such 
        Code.'', and
            (2) by adding at the end thereof the following new 
        sentence: ``If any notice is required under paragraph (3), each 
        notice required under paragraph (1) or (2) shall include a 
        statement that the employer directly or indirectly holds stock 
        in a corporation eligible for the credit provided by section 
        936 of the Internal Revenue Code of 1986.''.
    (b) Clerical Amendment.--The subsection heading for subsection (a) 
of such section 3 is amended by striking ``Local Governments'' and 
inserting ``Certain Governmental Units''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. LIMITATION ON PUERTO RICO AND POSSESSION TAX CREDIT.

    (a) General Rule.--Section 936 of the Internal Revenue Code of 1986 
(relating to Puerto Rico and possession tax credit) is amended by 
adding at the end thereof the following new subsection:
    ``(i) Denial of Credit for Income Attributable to Runaway Plants.--
            ``(1) In general.--
                    ``(A) Income attributable to shareholders.--The 
                runaway plant income of a corporation electing the 
                application of this section for any taxable year 
                (hereinafter in this subsection referred to as the 
                `electing corporation') shall be included on a pro rata 
                basis in the gross income of all shareholders of such 
                electing corporation at the close of the taxable year 
                of such electing corporation as income from sources 
                within the United States for the taxable year of such 
                shareholder in which or with which the taxable year of 
                such electing corporation ends.
                    ``(B) Exclusion from the income of an electing 
                corporation.--The taxable income of an electing 
                corporation shall be reduced by the amount which is 
                included in the gross income of a shareholder of such 
                corporation by reason of subparagraph (A).
            ``(2) Foreign shareholders; shareholders not subject to 
        tax.--
                    ``(A) In general.--Paragraph (1)(A) shall not apply 
                with respect to any shareholder--
                            ``(i) who is not a United States person, or
                            ``(ii) who is not subject to tax under this 
                        title on runaway plant income which would be 
                        allocated to such shareholder (but for this 
                        subparagraph).
                    ``(B) Treatment of nonallocated runaway plant 
                income.--For purposes of this subtitle, runaway plant 
                income of an electing corporation which is not included 
                in the gross income of a shareholder of such 
                corporation by reason of subparagraph (A) shall be 
                treated as taxable income from sources within the 
                United States.
            ``(3) Exclusion of income for qualification tests.--Any 
        gross income taken into account in determining the amount of 
        the runaway plant income of any electing corporation shall not 
        be taken into account for purposes of subsection (a)(2).
            ``(4) Runaway plant income.--For purposes of this 
        subsection, the term `runaway plant income' means the portion 
        of the taxable income of the electing corporation which is 
        attributable to a disqualified facility.
            ``(5) Disqualified facility.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `disqualified facility' 
                means any facility at which operations are commenced 
                with respect to the electing corporation after 
                ____________________ unless--
                            ``(i) the Secretary determines that 
                        operations at such facility--
                                    ``(I) will not result in a 
                                substantial adverse effect on the level 
                                of employment at any facility in the 
                                United States operated by the electing 
                                corporation or a person related to the 
                                electing corporation, and
                                    ``(II) will not result in such an 
                                effect with respect to any other 
                                facility in the United States on 
                                account of changes in a supplier 
                                relationship to the electing 
                                corporation or a person related to the 
                                electing corporation, and
                            ``(ii) the electing corporation files a 
                        request with the Secretary for a determination 
                        under clause (i) on or before the earlier of--
                                    ``(I) the day 90 days after the 
                                date on which an application is 
                                submitted to the possession for tax 
                                incentives for such facility, or
                                    ``(II) the day 1 year before the 
                                date on which operations at such 
                                facility commence.
                The Secretary may treat a request not filed before the 
                time required under clause (ii) as timely filed if the 
                Secretary determines that there was reasonable cause 
                for not filing the request before the time required.
                    ``(B) Certain revocations required.--
                            ``(i) In general.--The Secretary shall 
                        revoke a determination under subparagraph 
                        (A)(i) at any time before the close of the 3-
                        year period beginning on the date on which 
                        operations at the facility commenced if the 
                        Secretary determines that, on the basis of the 
                        facts and circumstances then known, the 
                        requirements of subparagraph (A)(i) are not 
                        satisfied.
                            ``(ii) Misrepresentations, etc.--The 
                        Secretary shall, at any time, revoke a 
                        determination under subparagraph (A)(i) if, in 
                        connection with the request for such 
                        determination, there was a misrepresentation 
                        with respect to (or a failure to disclose) any 
                        material information by the electing 
                        corporation or a related person.
                            ``(iii) Revocations retroactive.--If any 
                        determination is revoked under this 
                        subparagraph, this subsection (other than 
                        paragraph (8) thereof) shall be applied as if 
                        such determination had never been made.
                    ``(C) Opportunity for public comment.--No 
                determination may be made under subparagraph (A)(i) 
                unless the Secretary allows an opportunity for public 
                comment on the request for such determination.
            ``(6) Expansions treated as separate facilities.--
                    ``(A) In general.--For purposes of this subsection, 
                any substantial increase in employment at a facility 
                shall be treated as a separate facility at which 
                operations are commenced with respect to the electing 
                corporation as of the date of such increase.
                    ``(B) Substantial increase in employment.--For 
                purposes of subparagraph (A), there shall be deemed to 
                be a substantial increase in employment as of any day 
                at any facility if--
                            ``(i) such day is the last day of a payroll 
                        period and the average number of employees 
                        performing services at such facility during 
                        such period exceeds 110 percent of the average 
                        number of employees performing services at such 
                        facility during the corresponding payroll 
                        period in the preceding calendar year, or
                            ``(ii) there is an expansion in such 
                        facility or the operations at such facility 
                        with respect to which a separate or 
                        supplemental application or other request 
                        relating to tax incentives for such expansion 
                        is made to governmental authorities of the 
                        possession.
                Appropriate adjustments in the application of clause 
                (i) shall be made in the case of employees not 
                performing services on a full-time basis.
            ``(7) Special rules.--
                    ``(A) Distributions to meet qualification 
                standards.--Rules similar to the rules of subsection 
                (h)(4) shall apply for purposes of this subsection.
                    ``(B) Related person.--For purposes of this 
                subsection, the rules of subparagraphs (D) and (E) of 
                subsection (h)(3) shall apply in determining whether 
                any person is related to the electing corporation.
            ``(8) Public disclosure.--
                    ``(A) Publication in federal register.--The 
                Secretary shall publish in the Federal Register--
                            ``(i) a notification of each request for a 
                        determination under paragraph (5)(A)(i), and
                            ``(ii) a notification of the Secretary's 
                        determination in the case of each such request.
                    ``(B) Public inspection of determination.--
                            ``(i) In general.--Notwithstanding section 
                        6103, the text of any determination made by the 
                        Secretary under paragraph (5)(A)(i) and any 
                        background file document relating to such 
                        determination shall be open to public 
                        inspection at such place as the Secretary may 
                        prescribe.
                            ``(ii) Exemptions from disclosure.--Rules 
                        similar to the rules of section 6110(c) (other 
                        than paragraph (1) thereof) shall apply for 
                        purposes of clause (i).
                            ``(iii) Background file document.--For 
                        purposes of this subparagraph, the term 
                        `background file document' has the meaning 
                        given such term by section 6110(b)(2) 
                        determined by treating the determination under 
                        paragraph (2) as a written determination.''
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to taxable years ending after __________________________.
            (2) Time for filing request.--The time for filing a request 
        under section 936(i)(5)(A)(ii) of the Internal Revenue Code of 
        1986 (as added by this section) shall in no event expire before 
        the date 90 days after the date of the enactment of this Act.
Jobs Preservation Act of 1993 - Amends the Worker Adjustment and Retraining Notification Act to require notification of certain plant closings to the Secretary of the Treasury if the employer or a related person holds stock in a corporation eligible for the Puerto Rico and possession tax credit. 
Amends the Internal Revenue Code to deny the Puerto Rico and possession tax credit in cases of runaway plants.
Jobs Preservation Act of 1993