,i #aacth ,,congress #b;d ,session ,h4 ,r4 #dhdb ,,in ,,the ,,house ,,of ,,representatives ,june #aa1 #bjad ,mrs4 ,carolyn ,b4 ,maloney of ,new ,york 7for herself and ,mr4 ,smith of ,new ,jersey7 introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,education and the ,workforce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,securities ,exchange ,act of #aicd to require certain companies to disclose information describing any measures the company has taken to identify and address conditions of forced labor1 slavery1 human trafficking1 and the worst forms of child labor within the company's supply chains4 #a4 ,short title ,this ,act may be cited as the ,business ,supply ,chain ,transparency on ,trafficking and ,slavery ,act of #bjad4 #b4 ,findings and sense of congress 7a7 ,findings ,congress finds the following3 7#a7 ,in #bjab1 the ,department of ,labor identified #acd goods from #gd countries around the world made by forced labor and child labor4 7#b7 ,the ,united ,states is the world's largest importer1 and in the #bast century1 investors1 consumers1 and broader civil society increasingly demand information about the human rights impact of products in the ,united ,states market4 7#c7 ,courts have also ruled that consumers do not have standing to bring a civil action in ,united ,states courts for enforcement of this provision of the ,tariff ,act1 because the legislative intent was to protect ,american manufacturers from unfairly priced goods1 not to protect consumers from tainted goods1 consequently1 there are fewer than #dj enforcement actions on record in the past #hj years4 7#d7 ,mechanisms under ,federal law related to forced labor1 slavery1 human trafficking1 and the worst forms of child labor in the stream of commerce suffer from similar problems of limited scope1 broad expectations1 and inability to provide information about specific supplies whose goods are tainted4 7#e7 ,the ,united ,nations ,guiding ,principles on ,business and ,human ,rights affirm that business enterprises have a responsibility to respect human rights1 and that ,states have a duty to ensure these rights are protected4 ,such ,guiding ,principles also clarify that the duty to protect against business-related human rights abuses requires ,states to take the necessary steps to prevent and address human rights abuses to workers through effective policies and regulation4 7#f7 ,the ,trafficking ,victims ,protection ,reauthorization ,act of #bjjc 7,public ,law #ajh-aic7 together with the ,trafficking ,victims ,protection ,act of #bjje 7,public ,law #aji-afd7 provide for the termination of ,federal contracts where a ,federal contractor or subcontractor engages in severe forms of trafficking in persons or has procured a commercial sex act during the period of time that the grant1 contract1 or cooperative agreement is in effect1 or uses forced labor in the performance of the grant1 contract1 or cooperative agreement4 ,the ,trafficking ,victims ,protection ,act of #bjje also provide ,united ,states courts with criminal jurisdiction abroad over ,federal employees1 contractors1 or subcontractors who participate in severe forms of trafficking in persons or forced labor4 7#g7 ,executive ,order #acabf1 ,prohibition of ,acquisition of ,products ,produced by ,forced or ,indentured ,child ,labor1 ,executive ,order #acfbg1 ,strengthening ,protections ,against ,trafficking ,in ,persons ,in ,federal ,contracts1 and title ,,xvii of the ,national ,defense ,authorization ,act for ,fiscal ,year #bjac 7,public ,law #aab-bci7 have prohibited ,federal contractors1 subcontractors1 and their employees from engaging in the following trafficking-related activities3 charging labor recruitment fees2 confiscating passports and other identity documents of workers2 and using fraudulent recruitment practices1 including failing to disclose basic information or making material misrepresentations about the terms and conditions of employment4 ,such ,executive order and ,acts also require ,federal contractors1 subcontractors1 and their employees to maintain an anti-trafficking compliance plan that includes1 among other elements1 a complaint mechanism and procedures to prevent subcontractors at any tier from engaging in trafficking in persons4 7b7 ,sense of congress ,it is the sense of ,congress that-- 7#a7 forced labor1 slavery1 human trafficking1 and the worst forms of child labor are among the most egregious forms of abuse that humans commit against each other1 for the sake of commercial profit2 7#b7 the legislative and regulatory framework to prevent goods produced by forced labor1 slavery1 human trafficking1 and the worst forms of child labor from passing into the stream of commerce in the ,united ,states is gravely inadequate2 7#c7 legislation is necessary to provide consumers information on products that are free of child labor1 forced labor1 slavery1 and human trafficking2 and 7#d7 through publicly available disclosures1 businesses and consumers can avoid inadvertently promoting or sanctioning these crimes through production and purchase of goods and products that have been tainted in the supply chains4 #c4 ,disclosure of information relating to efforts to combat the ,use of ,forced ,labor1 ,slavery1 ,trafficking in ,persons1 or the ,worst ,forms of ,child ,labor ,section #ac of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm7 is amended by adding at the end the following new subsection3 7s7 ,disclosures relating to efforts ,to combat the ,use of ,forced ,labor1 ,slavery1 ,trafficking in ,persons1 or the ,worst ,forms of ,child ,labor 7#a7 ,regulations ,not later than #a year after the date of enactment of the ,global ,supply ,chain ,transparency for ,trafficking1 ,forced ,labor1 and ,child ,labor ,eradication ,act1 the ,commission1 in consultation with the ,secretary of ,state1 shall promulgate regulations to require that any covered issuer required to file reports with the ,commission under this section to include annually in such reports1 a disclosure whether the covered issuer has taken any measures during the year for which such reporting is required to identify and address conditions of forced labor1 slavery1 human trafficking1 and the worst forms of child labor within the covered issuer's supply chain1 and a description of such measures taken4 ,such disclosure shall include1 under the heading #8,policies to ,address ,forced ,labor1 ,slavery1 ,human ,trafficking1 and the ,worst ,forms of ,child ,labor'1 information describing to what extent1 if any1 the covered issuer conducts any of the following activities3 7,a7 ,whether the covered issuer maintains a policy to identify and eliminate the risks of forced labor1 slavery1 human trafficking1 and the worst forms of child labor within the covered issuer's supply chain 7such disclosure to include the text of the policy or substantive description of the elements of the policy71 and actions the covered issuer has taken pursuant to or in the absence of such policy4 7,b7 ,whether the covered issuer maintains a policy prohibiting its employees and employees of entities associated with its supply chain for engaging in commercial sex acts with a minor4 7,c7 ,the efforts of the covered issuer to evaluate and address the risks of forced labor1 slavery1 human trafficking1 and the worst forms of child labor in the product supply chain4 ,if such efforts have been made1 such disclosure shall-- 7i7 describe any risks identified within the supply chain1 and the measures taken toward eliminating those risks2 7ii7 specify whether the evaluation was or was not conducted by a third party2 7iii7 specify whether the process includes consultation with the independent labor organizations 7as such term is defined in section #b of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aeb771 workers' associations1 or workers within workplaces and incorporates the resulting input or written comments from such independent labor organizations1 workers' associations1 or workers and if so1 the disclosure shall describe the entities consulted and specify the method of such consultation2 and 7iv7 specify the extent to which the process covers entities within the supply chain1 including entities upstream in the product supply chain and entities across lines of products or services4 7,d7 ,the efforts of the covered issuer to ensure that audits of suppliers within the supply chain of the covered issuer are conducted to-- 7i7 investigate the working conditions and labor practices of such suppliers2 7ii7 verify whether such suppliers have in place appropriate systems to identify risks of forced labor1 slavery1 human trafficking1 and the worst forms of child labor within their own supply chain2 and 7iii7 evaluate whether such systems are in compliance with the policies of the covered issuer or efforts in absence of such policies4 7,e7 ,the efforts of the covered issuer to-- 7i7 require suppliers in the supply chain to attest that the manufacture of materials incorporated into any product and the recruitment of labor are carried out in compliance with the laws regarding forced labor1 slavery1 human trafficking1 and the worst forms of child labor of the country or countries in which the covered issuer is doing business2 7ii7 maintain internal accountability standards1 supply chain management1 and procurement systems1 and procedures for employees1 suppliers1 contractors1 or other entities within its supply chain failing to meet the covered issuer's standards regarding forced labor1 slavery1 human trafficking1 and the worst forms of child labor1 including a description of such standards1 systems1 and procedures2 7iii7 train the employees and management who have direct responsibility for supply chain management on issues related to forced labor1 slavery1 human trafficking1 and the worst forms of child labor1 particularly with respect to mitigating risks within the supply chains of products2 and 7iv7 ensure that labor recruitment practices at all suppliers associated with the supply chain comply with the covered issuer's policies or efforts in absence of such policies for eliminating exploitive labor practices that contribute to forced labor1 slavery1 human trafficking1 and the worst forms of child labor1 including by complying with audits of labor recruiters and disclosing the results of such audits4 7,f7 ,the efforts of the covered issuer in cases where forced labor1 slavery1 human trafficking1 and the worst forms of child labor have been identified within the supply chain1 to ensure that remedial action is provided to those who have identified as victims1 including support for programs designed to prevent the recurrence of those events within the industry or sector in which they have been identified4 7#b7 ,requirements for availability of information 7,a7 ,in general ,the regulations promulgated under paragraph 7#a7 shall require-- 7i7 that the required information be disclosed by the covered issuer on the ,internet website of the covered issuer through a conspicuous and easily understandable link to the relevant information that shall be labeled ,global ,supply ,chain ,transparency2 and 7ii7 if an individual submits a written request to the covered issuer for such information1 that the covered issuer provides the individual with a written disclosure of the required information under this section within #cj days of the receipt of such request4 7,b7 ,disclosure ,the ,commission shall make available to the public in a searchable format on the ,commission's website-- 7i7 a list of covered issuers required to disclose any measures taken by the company to identify and address conditions of forced labor1 slavery1 human trafficking1 and the worst forms of child labor within the covered issuer's supply chain1 as required by this subsection2 and 7ii7 a compilation of the information submitted under the rules issued under paragraph 7#a74 7#c7 ,definitions ,as used in this subsection-- 7,a7 the term covered issuer means an issuer that has annual worldwide global receipts in excess of #ajj1jjj1jjj2 7,b7 the terms forced labor1 slavery1 and human trafficking mean any labor practice or human trafficking activity in violation of national and international standards1 including ,international ,labor ,organization ,convention ,no4 #ahb1 the ,trafficking ,victims ,protection ,act of #bjjj 7,public ,law #ajf-chf71 and acts that would violate the criminal provisions related to slavery and human trafficking under chapter #gg of title #ah1 ,united ,states ,code1 if they had been committed within the jurisdiction of the ,united ,states2 7,c7 the terms remediation and remedial action mean the activities or systems that an issuer puts in place to address non-compliance with the standards identified through monitoring or verification1 which may apply to individuals adversely affected by the non-compliant conduct or address broader systematic processes2 7,d7 the term supply chain1 with respect to a covered issuer disclosing the information required under the regulations promulgated under this section1 means all labor recruiters1 suppliers of products1 component parts of products1 and raw materials used by such entity in the manufacturing of such entity's products whether or not such entity has a direct relationship with the supplier2 and 7,e7 the term the worst forms of child labor means child labor in violation of national and international standards1 including ,international ,labor ,organization ,convention ,no4 #ahb4 4 #d4 ,disclosures on website of ,department of ,labor 7a7 ,in general ,the ,secretary of ,labor shall make available to the public in a searchable format on the ,department of ,labor's website-- 7#a7 a list of companies required to disclose any measures taken by the company to identify and address conditions of forced labor1 slavery1 human trafficking1 and the worst forms of child labor within the covered issuer's supply chain1 as required by section #ac7s7 of the ,securities ,exchange ,act of #aicd1 as added by section #c2 and 7#b7 a compilation of the information disclosed pursuant to such requirements4 7b7 ,top #ajj list ,the ,secretary of ,labor1 in consultation with the ,secretary of ,state and other appropriate ,federal and international agencies1 independent labor evaluators1 and human rights groups1 shall annually develop and publish on the ,internet website of the ,department of ,labor a list of top #ajj companies adhering to supply chain labor standards1 as established under relevant ,federal and international guidelines4