[Congressional Record Volume 168, Number 121 (Thursday, July 21, 2022)]
[Senate]
[Pages S3615-S3616]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5145. Mr. SANDERS (for himself and Ms. Warren) submitted an 
amendment intended to be proposed to amendment SA 5135 proposed by Mr. 
Schumer to the bill H.R. 4346, making appropriations for Legislative 
Branch for the fiscal year ending September 30, 2022, and for other 
purposes; which was ordered to lie on the table; as follows:

        At the end of division A, add the following:

     SEC. 108. TERMS AND CONDITIONS OF ASSISTANCE.

       (a) CHIPS Assistance.--
       (1) Required agreement.--A covered entity to which the 
     Secretary of Commerce awards Federal financial assistance 
     under section 9902 of the William M. (Mac) Thornberry 
     National Defense Authorization Act for Fiscal Year 2021 (15 
     U.S.C. 4652) or section 102 or 103 of this Act with amounts 
     appropriated under this Act shall enter into an agreement 
     that specifies that, during the 5-year period immediately 
     following the award of the Federal financial assistance--
       (A) the covered entity will not--
       (i) repurchase an equity security that is listed on a 
     national securities exchange of the covered entity or any 
     parent company of the covered entity, except to the extent 
     required under a contractual obligation that is in effect as 
     of the date of enactment of this Act;
       (ii) outsource or offshore jobs to a location outside of 
     the United States; or
       (iii) abrogate existing collective bargaining agreements; 
     and
       (B) the covered entity will remain neutral in any union 
     organizing effort.
       (2) Financial protection of government.--
       (A) In general.--The Secretary of Commerce may not award 
     Federal financial assistance to a covered entity under 
     section 9902 of the William M. (Mac) Thornberry National 
     Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 
     4652) or under section 102 or 103 of this Act with amounts 
     appropriated under this Act, unless--
       (i)(I) the covered entity has issued securities that are 
     traded on a national securities exchange; and
       (II) the Secretary of the Treasury receives a warrant or 
     equity interest in the covered entity; or
       (ii) in the case of any covered entity other than a covered 
     entity described in clause (i), the Secretary of the Treasury 
     receives, in the discretion of the Secretary of the 
     Treasury--

       (I) a warrant or equity interest in the covered entity; or
       (II) a senior debt instrument issued by the covered entity.

       (B) Terms and conditions.--The terms and conditions of any 
     warrant, equity interest, or senior debt instrument received 
     under subparagraph (A) shall be set by the Secretary of 
     Commerce and shall meet the following requirements:
       (i) Purposes.--Such terms and conditions shall be designed 
     to provide for a reasonable participation by the Secretary of 
     Commerce, for the benefit of taxpayers, in equity 
     appreciation in the case of a warrant or other equity 
     interest, or a reasonable interest rate premium, in the case 
     of a debt instrument.
       (ii) Authority to sell, exercise, or surrender.--For the 
     primary benefit of taxpayers, the Secretary of Commerce may 
     sell, exercise, or surrender a warrant or any senior debt 
     instrument received under this paragraph. The Secretary of 
     Commerce shall not exercise voting power with respect to any 
     shares of common stock acquired under this paragraph.
       (iii) Sufficiency.--If the Secretary of Commerce determines 
     that a covered entity cannot feasibly issue warrants or other 
     equity interests as required by this paragraph, the Secretary 
     of Commerce may accept a senior debt instrument in an amount 
     and on such terms as the Secretary of Commerce determines 
     appropriate.
       (b) Application to Advanced Manufacturing Investment 
     Credit.--
       (1) Financial protection of government.--Subsection (c) of 
     section 48D of the Internal Revenue Code of 1986 (as added by 
     this Act) is amended to read as follows:
       ``(c) Eligible Taxpayer.--
       ``(1) In general.--For purposes of this section, the term 
     `eligible taxpayer' means any taxpayer which--
       ``(A) is not a foreign entity of concern (as defined in 
     section 9901(6) of the William M. (Mac) Thornberry National 
     Defense Authorization Act for Fiscal Year 2021),
       ``(B) has not made an applicable transaction (as defined in 
     section 50(a)) during the taxable year,
       ``(C) has not performed a prohibited activity (as defined 
     in section 50(a)) for the portion of the taxable year after 
     investment credit property has been placed in service, and
       ``(D) meets the requirements of paragraph (2).
       ``(2) Financial protection requirements.--
       ``(A) In general.--A taxpayer meets the requirements of 
     this paragraph if--
       ``(i)(I) the taxpayer has issued securities that are traded 
     on a national securities exchange; and
       ``(II) the Secretary of the Treasury receives a warrant or 
     equity interest in the covered entity; or
       ``(ii) in the case of taxpayer other than a taxpayer 
     described in subparagraph (A), the Secretary receives, in the 
     discretion of the Secretary--

       ``(I) a warrant or equity interest in the taxpayer; or
       ``(II) a senior debt instrument issued by the taxpayer.

       ``(B) Terms and conditions.--The terms and conditions of 
     any warrant, equity interest, or senior debt instrument 
     received under subparagraph (A) shall be set by the 
     Secretary, in consultation with the Secretary of Commerce, 
     and shall meet the following requirements:
       ``(i) Purposes.--Such terms and conditions shall be 
     designed to provide for a reasonable participation by the 
     Secretary, for the benefit of taxpayers, in equity 
     appreciation in the case of a warrant or other equity 
     interest, or a reasonable interest rate premium, in the case 
     of a debt instrument.
       ``(ii) Authority to sell, exercise, or surrender.--For the 
     primary benefit of taxpayers, the Secretary may sell, 
     exercise, or surrender a warrant or any senior debt 
     instrument received under this clause. The Secretary shall 
     not exercise voting power with respect to any shares of 
     common stock acquired under this subparagraph.
       ``(iii) Sufficiency.--If the Secretary determines that a 
     taxpayer cannot feasibly issue warrants or other equity 
     interests as required by this paragraph, the Secretary may 
     accept a senior debt instrument in an amount and on such 
     terms as the Secretary determines appropriate.''.
       (2) Recapture of credit in certain cases.--
       (A) In general.--Section 50(a) of the Internal Revenue Code 
     of 1986, as amended by this Act, is amended redesignating 
     paragraphs (4) through (6) as paragraphs (5) through (7), 
     respectively, and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) Certain requirements for advanced manufacturing 
     facilities.--If there is a prohibited activity by an 
     applicable taxpayer before the close of the 5-year period 
     beginning on the date such taxpayer placed in service 
     investment credit property which is eligible for the advanced 
     manufacturing investment credit under section 48D(a), then 
     the tax under this chapter for the taxable year in which such 
     transaction occurs shall be increased by 100 percent of the 
     aggregate decrease in the credits allowed under section 38 
     for all prior taxable years which would have resulted solely 
     from reducing to zero any credit determined under section 46 
     which is attributable to the advanced manufacturing 
     investment credit under section 48D(a) with respect to such 
     property.''.
       (B) Prohibited activity.--Section 50(a)(7) of the Internal 
     Revenue Code of 1986, as amended redesignated by the 
     preceding provisions of this Act, is amended adding at the 
     end the following new subparagraph:
       ``(E) Prohibited activity.--For purposes of this 
     subsection, the term `prohibited activity' means, with 
     respect to any applicable taxpayer, any of the following:
       ``(i) the repurchase an equity security that is listed on a 
     national securities exchange of the taxpayer or any parent 
     company of the taxpayer, except to the extent required under 
     a contractual obligation that is in effect as of the date of 
     enactment of this subparagraph;
       ``(ii) the outsourcing or offshoring of jobs to a location 
     outside of the United States;

[[Page S3616]]

       ``(iii) the abrogation of existing collective bargaining 
     agreements; or
       ``(iv) the failure of the taxpayer to remain neutral in any 
     union organizing effort.''.
       (C) Conforming amendments.--
       (i) Section 50(a)(5) of the Internal Revenue Code of 1986, 
     as redesignated by the preceding provisions of this Act, is 
     amended--

       (I) by striking ``or any applicable transaction to which 
     paragraph (3)(A) applies'' and inserting ``any applicable 
     transaction to which paragraph (3)(A) applies, or any 
     prohibited transaction to which paragraph (4) applies'', and
       (II) by striking ``or applicable transaction'' and 
     inserting ``, applicable transaction, or prohibited 
     transaction''.

       (ii) Section 50(a)(7)(C) of such Code, as amended and 
     redesignated the preceding provisions of this Act, is amended 
     by striking ``or (3)'' and inserting ``(3), or (4)''.
       (iii) Section 1371(d)(1) of such Code, as amended by this 
     Act, is amended by striking ``section 50(a)(5)'' and 
     inserting ``section 50(a)(6)''.
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