Outsourcing Accountability Act of 2019

IIB 116TH CONGRESS 1ST SESSION H. R. 3624 IN THE SENATE OF THE UNITED STATES OCTOBER 21, 2019 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT 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 VerDate Sep 11 2014 23:05 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3624.RFS H3624 kjohnson on DSK79L0C42 with BILLS 2 HR 3624 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Outsourcing Account- 2 ability Act of 2019’’. 3 SEC. 2. REQUIRED DISCLOSURE OF NUMBER OF DOMESTIC 4 AND FOREIGN EMPLOYEES. 5 Section 13 of the Securities Exchange Act of 1934 6 (15 U.S.C. 78m) is amended by adding at the end the 7 following: 8 ‘‘(s) DISCLOSURE OF NUMBER OF DOMESTIC AND 9 FOREIGN EMPLOYEES.— 10 ‘‘(1) DEFINITION.—In this subsection, the term 11 ‘covered subsidiary’ means, with respect to an issuer, 12 any subsidiary of such issuer that is— 13 ‘‘(A) a consolidated subsidiary; or 14 ‘‘(B) a subsidiary with respect to which the 15 issuer accounts for the investment of the issuer 16 in the subsidiary using the equity method of ac- 17 counting. 18 ‘‘(2) DISCLOSURE REQUIREMENT.—Except with 19 respect to an emerging growth company, beginning 20 in the first full fiscal year that begins after the date 21 of the enactment of this subsection, each issuer that 22 is required to file a report with the Commission pur- 23 suant to subsection (a) shall disclose in such re- 24 port— 25 VerDate Sep 11 2014 23:05 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3624.RFS H3624 kjohnson on DSK79L0C42 with BILLS 3 HR 3624 RFS ‘‘(A) the total number of employees of the 1 issuer and any covered subsidiary of the issuer 2 who are domiciled in the United States— 3 ‘‘(i) disaggregated by State, District 4 of Columbia, commonwealth, territory, or 5 possession of the United States; and 6 ‘‘(ii) compared using a percentage 7 change calculation to any such total re- 8 ported by the issuer in the most recent an- 9 nual report of the issuer; 10 ‘‘(B) the total number of employees of the 11 issuer who physically work in and are domiciled 12 in any country other than the United States— 13 ‘‘(i) disaggregated by country; and 14 ‘‘(ii) compared using a percentage 15 change calculation to any such total re- 16 ported by the issuer in the most recent an- 17 nual report of the issuer; and 18 ‘‘(C) the total number of employees of any 19 covered subsidiary of the issuer who physically 20 work in and are domiciled in any country other 21 than the United States— 22 ‘‘(i) disaggregated by country; and 23 ‘‘(ii) compared using a percentage 24 change calculation to any such total re- 25 VerDate Sep 11 2014 23:05 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3624.RFS H3624 kjohnson on DSK79L0C42 with BILLS 4 HR 3624 RFS ported by the issuer in the most recent an- 1 nual report of the issuer. 2 ‘‘(3) RULEMAKING.—The Commission may 3 issue such rules as the Commission considers nec- 4 essary to implement this subsection.’’. 5 Passed the House of Representatives October 18, 2019. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 23:05 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3624.RFS H3624 kjohnson on DSK79L0C42 with BILLS