Sec. 8. Exclusion of offshoring manufacturers under bus grant programs
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Section 5339(b) of title 49, United States Code, is amended by adding at the end the following: In this paragraph: The term applicable period , with respect to a covered entity, means the 10-year period following the date on which the covered entity receives the full amount of funds provided under this subsection. The term covered entity means an entity that— produces, manufactures, or carries out the final assembly of vehicle , or any subsidiary of such entity; and receives, after the date of enactment of the Putting American Autoworkers First Act of 2023 , assistance under this subsection from an eligible recipient.
The term prohibited activity , with respect to an covered entity, means— moving the domestic production, manufacturing, or final assembly of any vehicle or any component part of a vehicle outside of the United States; and reducing or eliminating production, manufacturing, or final assembly of any vehicle or any component part of a vehicle in the United States and subsequently obtaining such vehicle or component part from a producer or manufacturer located outside of the United States.
Beginning on the date of enactment of the Putting American Autoworkers First Act of 2023 , no entity described in subclause
(I)of subparagraph (A)(ii) shall be eligible for assistance under this subsection if that entity (or a subsidiary of that entity) has carried out a prohibited activity as of that date. As a condition of receiving funds under this subsection, a covered entity may not, during the applicable period— carry out any prohibited activity; or fail to satisfy the requirement under clause (iii). The requirement under clause (i)(I) shall apply to each subsidiary of a covered entity, if applicable. If an eligible recipient is not a covered entity and the eligible recipient intends to use proceeds from an award under this subsection to purchase, lease, license, or contract for a vehicle from a covered entity, the eligible recipient shall notify the covered entity that the sale, lease, license, or contract is being carried out using proceeds from an award under this subsection. Not later than 1 year after the date of enactment of the Putting American Autoworkers First Act of 2023 , and annually thereafter until the end of the applicable period, a covered entity shall provide the Secretary such information as the Secretary may require to demonstrate that the covered entity (including each subsidiary, if applicable) has not carried out a prohibited activity. If a covered entity that receives assistance under this subsection after the date of enactment of this paragraph becomes noncompliant with the requirements under subparagraph (C), the covered entity shall pay to the Secretary an amount equal to 100 percent of the amount that consumers of the covered entity paid to the covered entity of assistance under this subsection. Any payment imposed pursuant to clause
(i)shall be paid by the covered entity to the Secretary over such period as is determined appropriate by the Secretary. .