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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1600 Introduced in House (IH)]

106th CONGRESS
  1st Session
                                H. R. 1600

 To provide that Federal contracts and certain Federal subsidies shall 
  be provided only to businesses which have qualified profit-sharing 
                                 plans.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 1999

Mr. Fattah (for himself, Mr. Filner, Mr. Hastings of Florida, Mr. Meeks 
 of New York, Mrs. Christensen, Mr. Sabo, Mr. Hilliard, Mr. Cummings, 
Mr. Towns, Mr. Sanders, Mr. Hinchey, Ms. Brown of Florida, Mr. Thompson 
   of Mississippi, Ms. Millender-McDonald, Mr. Owens, Mr. Clay, Mr. 
Gutierrez, and Ms. Jackson-Lee of Texas) introduced the following bill; 
   which was referred to the Committee on Government Reform, and in 
addition to the Committee on Education and the Workforce, 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 provide that Federal contracts and certain Federal subsidies shall 
  be provided only to businesses which have qualified profit-sharing 
                                 plans.

    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 ``American Profit Sharing Act''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) reducing income disparities will stimulate and 
        stabilize the national economy;
            (2) the best solutions to prevailing income disparities are 
        structural changes in our income distribution system;
            (3) it is important that American corporations retain the 
        flexibility to compete effectively in this global economy;
            (4) it is equally important that the well-being of the 
        American worker be protected in this changing economic 
        environment;
            (5) the most effective incomes policy approach in such an 
        environment is diversification of sources and types of income 
        for the American worker;
            (6) return to capital in terms of interest, dividends, and 
        capital gains have soared in recent years and is the single 
        most robust source of income growth;
            (7) a significant percentage of this increase in the return 
        to capital has been a direct result of public policy and public 
        investment;
            (8) in this country, profit sharing has been shown to 
        contribute to increased productivity and profitability; and
            (9) it is appropriate that taxpayers participate in capital 
        expansions created and financed with tax dollars.

SEC. 3. PROVISION OF FEDERAL CONTRACTS AND CERTAIN FEDERAL SUBSIDIES 
              ONLY TO BUSINESSES WITH QUALIFIED PROFIT-SHARING PLANS.

    (a) In General.--Federal contracts and specified Federal subsidies 
may be provided only to businesses which have a stock bonus or profit-
sharing plan which meets the requirements of section 401(a) of the 
Internal Revenue Code of 1986.
    (b) Exception for Start-Up Small Businesses.--Subsection (a) shall 
not apply to any business for a year unless--
            (1) such business has been in existence for at least 10 
        prior years,
            (2) such business has more than 5 full-time employees (or 
        their equivalent) at any time during the year, and
            (3) the gross income of the business for the year exceeds 
        $5,000,000.
Rules similar to the rules of paragraph (2), and subparagraphs (B), 
(C), and (D) of paragraph (3), of section 448(c) shall apply for 
purposes of the preceding sentence.

SEC. 4. DEFINITIONS.

    (a) Federal Contract.--For purposes of this Act, the term ``Federal 
contract'' means any contract funded directly or indirectly with 
Federal funds.
    (b) Specified Federal Subsidy.--For purposes of this Act, the term 
``specified Federal subsidy'' means any of the following Federal 
benefits which benefit the business:
            (1) Any grant or other payment funded directly or 
        indirectly with Federal funds.
            (2) Any guaranteed loan if such guarantee is by any Federal 
        agency or any payment under the guarantee is directly or 
        indirectly from Federal funds.
            (3) Any loan the interest rate on which, or the other terms 
        of which, are more favorable than loans otherwise available to 
        the borrower from non-Federal sources if the more favorable 
        interest rate or other terms are funded directly or indirectly 
        by Federal funds.
Paragraphs (2) and (3) shall not apply to loans under disaster loan 
programs.

SEC. 5. EFFECTIVE DATE.

    This Act shall take effect on the first day of the first fiscal 
year beginning after the date of the enactment of this Act.
                                 <all>
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