No Federal Contracts for Corporate Deserters Act of 2015

Bill: 114-hr-1809
Sponsor: Rep. DeLauro, Rosa L. [D-CT-3]
Introduced: 2015-04-15 in the House
Policy area: Government Operations and Politics
Subjects: Administrative law and regulatory procedures
Corporate finance and management
Department of the Treasury
Foreign and international corporations
Military procurement, research, weapons development
Public contracts and procurement

Summary:
action_date: 2015-04-15
text: 

No Federal Contracts for Corporate Deserters Act of 2015

 
Prohibits an executive agency from awarding a contract (including a defense contract) to: (1) any foreign incorporated entity determined to be an inverted domestic corporation or any subsidiary of such entity, or (2) any joint venture more than 10% of which is held by such an entity or subsidiary.
 
Directs each agency to include in each contract awarded with a value in excess of $10 million, other than a contract for exclusively commercial items, a clause that prohibits the prime contractor from: (1) awarding a first-tier subcontract with a value greater than 10% of the total prime contract to such an entity or joint venture, or (2) structuring subcontract tiers enabling such entity or joint venture to perform more than 10% of the total value of the prime contract. 
 
Authorizes an agency to waive such requirements for a contract in the interest of national security. Provides for termination of a contract or suspension or debarment of a contractor in violation of this Act. 
 
Requires a foreign incorporated entity to be treated as an inverted domestic corporation if: (1) the entity acquires, on or after May 8, 2014, substantially all of the properties held by a domestic corporation or substantially all of the assets of, or substantially all of the properties constituting a trade or business of, a domestic partnership; and (2) after the acquisition, either more than 50% of the stock of the entity is held by former shareholders of the domestic corporation or former partners of the domestic partnership, or the management and control of the expanded affiliated group which includes the entity occurs primarily within the United States and such expanded affiliated group has significant domestic business activities. Sets forth an exception for an entity within an expanded affiliated group with substantial business activities in the foreign country in which the entity is created.
 
Requires the Secretary of the Treasury to prescribe regulations for determining cases in which the management and control of an expanded affiliated group is to be treated as occurring primarily within the United States. 


Legislative actions:
action_date: 2015-04-15
text: Referred to the Committee on Oversight and Government Reform, and in addition to the 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.
action_date: 2015-04-15
text: Referred to the Committee on Oversight and Government Reform, and in addition to the 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.
action_date: 2015-04-15
text: Referred to the Committee on Oversight and Government Reform, and in addition to the 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.
action_date: 2015-04-15
text: Introduced in House
action_date: 2015-04-15
text: Introduced in House