Outsourcing Accountability Act of 2019

II 116TH CONGRESS 1ST SESSION S. 1843 To amend the Securities Exchange Act of 1934 to require the disclosure of the total number of domestic and foreign employees of certain public companies, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 13, 2019 Mr. PETERS (for himself, Mr. REED, Mr. BROWN, Mrs. FEINSTEIN, and Ms. STABENOW) introduced the following bill; which was read twice and re- ferred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Securities Exchange Act of 1934 to require the disclosure of the total number of domestic and for- eign employees of certain public companies, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Outsourcing Account- 4 ability Act of 2019’’. 5 VerDate Sep 11 2014 18:30 Jun 17, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1843.IS S1843 pamtmann on DSKBFK8HB2PROD with BILLS 2 •S 1843 IS SEC. 2. REQUIRED DISCLOSURE OF NUMBER OF DOMESTIC 1 AND FOREIGN EMPLOYEES. 2 Section 13 of the Securities Exchange Act of 1934 3 (15 U.S.C. 78m) is amended by adding at the end the 4 following: 5 ‘‘(s) DISCLOSURE OF NUMBER OF DOMESTIC AND 6 FOREIGN EMPLOYEES.— 7 ‘‘(1) DEFINITION.—In this subsection, the term 8 ‘covered subsidiary’ means, with respect to an issuer, 9 any subsidiary of the issuer that is— 10 ‘‘(A) a consolidated subsidiary; or 11 ‘‘(B) a subsidiary with respect to which the 12 issuer accounts for the investment of the issuer 13 by using the equity method of accounting. 14 ‘‘(2) REQUIREMENT.—Except as provided in 15 paragraph (3), beginning in the first full fiscal year 16 that begins after the date of enactment of this sub- 17 section, each issuer that is required to file a report 18 with the Commission under subsection (a) shall dis- 19 close annually to the Commission and to share- 20 holders of the issuer— 21 ‘‘(A) the total number of employees of the 22 issuer and covered subsidiaries with respect to 23 the issuer who are domiciled in the United 24 States, listed by number in each State; 25 VerDate Sep 11 2014 18:30 Jun 17, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1843.IS S1843 pamtmann on DSKBFK8HB2PROD with BILLS 3 •S 1843 IS ‘‘(B) the total number of employees of the 1 issuer who physically work in and are domiciled 2 in any country other than the United States, 3 listed by number in each country; 4 ‘‘(C) the total number of employees of cov- 5 ered subsidiaries with respect to the issuer who 6 physically work in and are domiciled in any 7 country other than the United States, listed by 8 the number of employees at each such covered 9 subsidiary in each such country; and 10 ‘‘(D) as compared with the previous re- 11 porting year, the percentage amount by which 12 the numbers described in subparagraphs (A), 13 (B), and (C) increased or decreased with re- 14 spect to the applicable number. 15 ‘‘(3) EXEMPTION FOR EMERGING GROWTH COM- 16 PANIES.—An emerging growth company shall not be 17 subject to paragraph (2). 18 ‘‘(4) RULES.—The Commission may promul- 19 gate such rules as the Commission considers nec- 20 essary to implement the requirement under para- 21 graph (2).’’. 22 Æ VerDate Sep 11 2014 18:30 Jun 17, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S1843.IS S1843 pamtmann on DSKBFK8HB2PROD with BILLS