HB524 (2006) Detail

Relative to outsourcing of jobs.


HB 524 – AS INTRODUCED

2005 SESSION

05-0581

06/10

HOUSE BILL 524

AN ACT relative to outsourcing of jobs.

SPONSORS: Rep. Weed, Ches 3; Rep. Owen, Merr 4

COMMITTEE: Labor, Industrial and Rehabilitative Services

ANALYSIS

This bill:

I. Requires companies that have reduced their employment in New Hampshire by 50 or more employees to supply certain information to the department of labor including the number of jobs that were lost to outsourcing to foreign countries.

II. Prohibits companies that have outsourced 50 or more New Hampshire jobs from obtaining state contracts or economic aid.

III. Prohibits contractors and subcontractors who have state contracts from performing work outside of the United States.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-0581

06/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT relative to outsourcing of jobs.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Purpose and Findings.

I. The state spends millions of dollars in public funds each year for a variety of services necessary to the operation and maintenance of state government.

II. The preservation of jobs in this state is of critical importance to the economic vitality of the state.

III. In recent years, a number of companies have replaced their highly skilled workers from this state with lower-paid foreign laborers, a practice that is known as outsourcing.

IV. Such international outsourcing exacerbates unemployment and deprives job opportunities to citizens of this state. International outsourcing wastes financial resources expended by the state to attract and keep industries and jobs in this state.

V. International outsourcing may provide less privacy protections for state residents whose personal information may, in the course of service delivery, be transmitted to locations outside the United States.

VI. A long list of companies headquartered in the United States, including Earthlink, Verizon, IBM, AT&T Wireless, Tyco, Microsoft, and EDS Corporation, have already moved jobs from the United States to offshore locations.

VII. The economic dislocation caused by a company outsourcing jobs threatens the health, safety, and welfare of the people of this state.

VIII. Outsourcing jobs to foreign countries is detrimental to the state economy and a company that engages in outsourcing should not enjoy the benefits of a lucrative state or local procurement contract.

2 New Section; Labor Commissioner; Job Relocation Survey. Amend RSA 273 by inserting after section 9 the following new section:

273:9-a Job Relocation Survey.

I. On or before January 31, 2005, and each January 31 thereafter, any company doing business in this state that had a net loss of 50 or more employees in this state during the prior calendar year shall notify the department of the loss.

II. The commissioner shall prepare a job relocation survey to be completed by a company that notifies the department under paragraph I. The survey shall include the following:

(a) The name and principal place of business of the company.

(b) Identification of any procurement contracts that the company has with the state or a local government.

(c) Identification of any grants or loans that the company has received from the state or a local government.

(d) A statement of the number of New Hampshire employees of the company who lost their jobs in the preceding calendar year.

(e) A statement of the number of jobs that were added in this state in the preceding calendar year.

(f) A statement of the number of the jobs that New Hampshire employees lost that were lost as a result of the company outsourcing the jobs to employees located outside of the United States.

III. A company shall complete and return the survey to the department within 30 days of receiving it. A company that fails to respond to the survey shall be barred from state contracts and certain other benefits until such time as the survey is completed.

IV. Any person who believes that he or she lost his or her job as a result of a company outsourcing jobs to employees located outside of the United States is encouraged to report such information to the department.

V. The commissioner shall provide written notice of any company that has had a net loss of 50 or more employees in this state during the prior calendar year where such loss was caused by the relocation of 50 or more jobs from this state to a site located outside of the United States to the following:

(a) The department of administrative services.

(b) The business finance authority.

3 New Section; Requirements for State Contracts. Amend RSA 21-I by inserting after section 13-a the following new section:

21-I:13-b Requirements for State Contracts.

I. After receiving notification from the labor commissioner that a company has had a net loss of 50 or more employees in this state during the prior calendar year where the job loss was caused by the relocation of 50 or more jobs from this state to a site that is located outside of the United States, the company shall be ineligible for a period of 7 years to enter into any procurement contract with the state. The period of ineligibility shall begin with the date of the labor commissioner’s notice to the department.

II.(a) The state and its agencies shall not award any contract to a contractor or subcontractor who will perform the work at a site outside the United States.

(b) A contractor or subcontractor submitting a bid or a request for proposal shall certify in writing that the services covered by the bid or request for proposal will be performed in the United States.

(c) During the term of a contract with the state, the contractor or any subcontractor shall not transfer work under the contract outside the United States.

4 Penalties; Violation of Requirements for State Contracts Added. Amend RSA 21-I:41 to read as follows:

21-I:41 Penalty.

I. If any person shall injure, deface, or misuse any of the property listed in RSA 21-I:11, X, or shall violate any rules relating thereto, he shall be guilty of a violation.

II.(a) The attorney general may bring an action for a civil penalty for violation of RSA 21-I:13-b.

(b) Any contractor or subcontractor contracting with the state who knew or should have known that he or she was not complying with the provisions of RSA 21-I:13-b may be subject to any or all of the following civil penalties:

(1) The contract with the state shall be void.

(2) The contractor or subcontractor shall be prohibited from bidding on or being awarded any contract with the state for a period of at least one year.

(3) For each violation, the contractor or subcontractor shall be assessed a penalty of $5,000, an amount equal to 20 percent of the value of the contract, or the amount paid by the department for the work performed outside of the United States, whichever is greater.

5 New Section; Prohibited Activities. Amend RSA 162-A by inserting after section 31 the following new section:

162-A:32 Prohibited Activities. After receiving notification from the labor commissioner that a company has had a net loss of 50 or more employees in this state during the prior calendar year where the job loss was caused by the relocation of 50 or more jobs from this state to a site that is located outside of the United States, the company shall be ineligible for a period of 7 years to receive any economic development assistance in the form of grants, loans, or any other form under any program administered by the authority. The period of ineligibility shall begin with the date of the commissioner’s notice to the department.

6 Effective Date. This act shall take effect January 1, 2006.