Business Supply Chain Transparency on Trafficking and Slavery Act of 2014

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Business Supply Chain Transparency 
on Trafficking and Slavery Act of 2014''.

SEC. 2. FINDINGS AND SENSE OF CONGRESS.

    (a) Findings.--Congress finds the following:
            (1) In 2012, the Department of Labor identified 134 goods 
        from 74 countries around the world made by forced labor and 
        child labor.
            (2) The United States is the world's largest importer, and 
        in the 21st century, investors, consumers, and broader civil 
        society increasingly demand information about the human rights 
        impact of products in the United States market.
            (3) 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 Act, because the 
        legislative intent was to protect American manufacturers from 
        unfairly priced goods, not to protect consumers from tainted 
        goods, consequently, there are fewer than 40 enforcement 
        actions on record in the past 80 years.
            (4) Mechanisms under Federal law related to forced labor, 
        slavery, human trafficking, and the worst forms of child labor 
        in the stream of commerce suffer from similar problems of 
        limited scope, broad expectations, and inability to provide 
        information about specific supplies whose goods are tainted.
            (5) The United Nations Guiding Principles on Business and 
        Human Rights affirm that business enterprises have a 
        responsibility to respect human rights, and that States have a 
        duty to ensure these rights are protected. 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 regulation.
            (6) The Trafficking Victims Protection Reauthorization Act 
        of 2003 (Public Law 108-193) together with the Trafficking 
        Victims Protection Act of 2005 (Public Law 109-164) 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 grant, contract, or cooperative agreement is 
        in effect, or uses forced labor in the performance of the 
        grant, contract, or cooperative agreement. The Trafficking 
        Victims Protection Act of 2005 also provide United States 
        courts with criminal jurisdiction abroad over Federal 
        employees, contractors, or subcontractors who participate in 
        severe forms of trafficking in persons or forced labor.
            (7) Executive Order 13126, Prohibition of Acquisition of 
        Products Produced by Forced or Indentured Child Labor, 
        Executive Order 13627, Strengthening Protections Against 
        Trafficking In Persons In Federal Contracts, and title XVII of 
        the National Defense Authorization Act for Fiscal Year 2013 
        (Public Law 112-239) have prohibited Federal contractors, 
        subcontractors, and their employees from engaging in the 
        following trafficking-related activities: charging labor 
        recruitment fees; confiscating passports and other identity 
        documents of workers; and using fraudulent recruitment 
        practices, including failing to disclose basic information or 
        making material misrepresentations about the terms and 
        conditions of employment. Such Executive order and Acts also 
        require Federal contractors, subcontractors, and their 
        employees to maintain an anti-trafficking compliance plan that 
        includes, among other elements, a complaint mechanism and 
        procedures to prevent subcontractors at any tier from engaging 
        in trafficking in persons.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) forced labor, slavery, human trafficking, and the worst 
        forms of child labor are among the most egregious forms of 
        abuse that humans commit against each other, for the sake of 
        commercial profit;
            (2) the legislative and regulatory framework to prevent 
        goods produced by forced labor, slavery, human trafficking, and 
        the worst forms of child labor from passing into the stream of 
        commerce in the United States is gravely inadequate;
            (3) legislation is necessary to provide consumers 
        information on products that are free of child labor, forced 
        labor, slavery, and human trafficking; and
            (4) through publicly available disclosures, 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 chains.

SEC. 3. DISCLOSURE OF INFORMATION RELATING TO EFFORTS TO COMBAT THE USE 
              OF FORCED LABOR, SLAVERY, TRAFFICKING IN PERSONS, OR THE 
              WORST FORMS OF CHILD LABOR.

    Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) 
is amended by adding at the end the following new subsection:
    ``(s) Disclosures Relating to Efforts To Combat the Use of Forced 
Labor, Slavery, Trafficking in Persons, or the Worst Forms of Child 
Labor.--
            ``(1) Regulations.--Not later than 1 year after the date of 
        enactment of the Global Supply Chain Transparency for 
        Trafficking, Forced Labor, and Child Labor Eradication Act, the 
        Commission, in consultation with the Secretary of State, shall 
        promulgate regulations to require that any covered issuer 
        required to file reports with the Commission under this section 
        to include annually in such reports, 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 labor, slavery, human trafficking, and the worst 
        forms of child labor within the covered issuer's supply chain, 
        and a description of such measures taken. Such disclosure shall 
        include, under the heading `Policies to Address Forced Labor, 
        Slavery, Human Trafficking, and the Worst Forms of Child 
        Labor', information describing to what extent, if any, the 
        covered issuer conducts any of the following activities:
                    ``(A) Whether the covered issuer maintains a policy 
                to identify and eliminate the risks of forced labor, 
                slavery, human trafficking, and the worst forms of 
                child labor within the covered issuer's supply chain 
                (such disclosure to include the text of the policy or 
                substantive description of the elements of the policy), 
                and actions the covered issuer has taken pursuant to or 
                in the absence of such policy.
                    ``(B) 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 minor.
                    ``(C) The efforts of the covered issuer to evaluate 
                and address the risks of forced labor, slavery, human 
                trafficking, and the worst forms of child labor in the 
                product supply chain. If such efforts have been made, 
                such disclosure shall--
                            ``(i) describe any risks identified within 
                        the supply chain, and the measures taken toward 
                        eliminating those risks;
                            ``(ii) specify whether the evaluation was 
                        or was not conducted by a third party;
                            ``(iii) specify whether the process 
                        includes consultation with the independent 
                        labor organizations (as such term is defined in 
                        section 2 of the National Labor Relations Act 
                        (29 U.S.C. 152)), workers' associations, or 
                        workers within workplaces and incorporates the 
                        resulting input or written comments from such 
                        independent labor organizations, workers' 
                        associations, or workers and if so, the 
                        disclosure shall describe the entities 
                        consulted and specify the method of such 
                        consultation; and
                            ``(iv) specify the extent to which the 
                        process covers entities within the supply 
                        chain, including entities upstream in the 
                        product supply chain and entities across lines 
                        of products or services.
                    ``(D) The efforts of the covered issuer to ensure 
                that audits of suppliers within the supply chain of the 
                covered issuer are conducted to--
                            ``(i) investigate the working conditions 
                        and labor practices of such suppliers;
                            ``(ii) verify whether such suppliers have 
                        in place appropriate systems to identify risks 
                        of forced labor, slavery, human trafficking, 
                        and the worst forms of child labor within their 
                        own supply chain; and
                            ``(iii) evaluate whether such systems are 
                        in compliance with the policies of the covered 
                        issuer or efforts in absence of such policies.
                    ``(E) The efforts of the covered issuer to--
                            ``(i) 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 
                        labor, slavery, human trafficking, and the 
                        worst forms of child labor of the country or 
                        countries in which the covered issuer is doing 
                        business;
                            ``(ii) maintain internal accountability 
                        standards, supply chain management, and 
                        procurement systems, and procedures for 
                        employees, suppliers, contractors, or other 
                        entities within its supply chain failing to 
                        meet the covered issuer's standards regarding 
                        forced labor, slavery, human trafficking, and 
                        the worst forms of child labor, including a 
                        description of such standards, systems, and 
                        procedures;
                            ``(iii) train the employees and management 
                        who have direct responsibility for supply chain 
                        management on issues related to forced labor, 
                        slavery, human trafficking, and the worst forms 
                        of child labor, particularly with respect to 
                        mitigating risks within the supply chains of 
                        products; and
                            ``(iv) 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 labor, slavery, human 
                        trafficking, and the worst forms of child 
                        labor, including by complying with audits of 
                        labor recruiters and disclosing the results of 
                        such audits.
                    ``(F) The efforts of the covered issuer in cases 
                where forced labor, slavery, human trafficking, and the 
                worst forms of child labor have been identified within 
                the supply chain, to ensure that remedial action is 
                provided to those who have identified as victims, 
                including support for programs designed to prevent the 
                recurrence of those events within the industry or 
                sector in which they have been identified.
            ``(2) Requirements for availability of information.--
                    ``(A) In general.--The regulations promulgated 
                under paragraph (1) shall require--
                            ``(i) 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 Transparency'; and
                            ``(ii) if an individual submits a written 
                        request to the covered issuer for such 
                        information, that the covered issuer provides 
                        the individual with a written disclosure of the 
                        required information under this section within 
                        30 days of the receipt of such request.
                    ``(B) Disclosure.--The Commission shall make 
                available to the public in a searchable format on the 
                Commission's website--
                            ``(i) a list of covered issuers required to 
                        disclose any measures taken by the company to 
                        identify and address conditions of forced 
                        labor, slavery, human trafficking, and the 
                        worst forms of child labor within the covered 
                        issuer's supply chain, as required by this 
                        subsection; and
                            ``(ii) a compilation of the information 
                        submitted under the rules issued under 
                        paragraph (1).
            ``(3) Definitions.--As used in this subsection--
                    ``(A) the term `covered issuer' means an issuer 
                that has annual worldwide global receipts in excess of 
                $100,000,000;
                    ``(B) the terms `forced labor', `slavery', and 
                `human trafficking' mean any labor practice or human 
                trafficking activity in violation of national and 
                international standards, including International Labor 
                Organization Convention No. 182, the Trafficking 
                Victims Protection Act of 2000 (Public Law 106-386), 
                and acts that would violate the criminal provisions 
                related to slavery and human trafficking under chapter 
                77 of title 18, United States Code, if they had been 
                committed within the jurisdiction of the United States;
                    ``(C) 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 verification, which 
                may apply to individuals adversely affected by the non-
                compliant conduct or address broader systematic 
                processes;
                    ``(D) the term `supply chain', with respect to a 
                covered issuer disclosing the information required 
                under the regulations promulgated under this section, 
                means all labor recruiters, suppliers of products, 
                component parts of products, 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 supplier; and
                    ``(E) the term `the worst forms of child labor' 
                means child labor in violation of national and 
                international standards, including International Labor 
                Organization Convention No. 182.''.

SEC. 4. DISCLOSURES ON WEBSITE OF DEPARTMENT OF LABOR.

    (a) In General.--The Secretary of Labor shall make available to the 
public in a searchable format on the Department of Labor's website--
            (1) a list of companies required to disclose any measures 
        taken by the company to identify and address conditions of 
        forced labor, slavery, human trafficking, and the worst forms 
        of child labor within the covered issuer's supply chain, as 
        required by section 13(s) of the Securities Exchange Act of 
        1934, as added by section 3; and
            (2) a compilation of the information disclosed pursuant to 
        such requirements.
    (b) Top 100 List.--The Secretary of Labor, in consultation with the 
Secretary of State and other appropriate Federal and international 
agencies, independent labor evaluators, and human rights groups, shall 
annually develop and publish on the Internet website of the Department 
of Labor a list of top 100 companies adhering to supply chain labor 
standards, as established under relevant Federal and international 
guidelines.

Summary: Business Supply Chain Transparency on Trafficking and Slavery Act of 2014 - Expresses the sense of Congress that: (1) legislation is necessary to provide consumers information on products that are free of child labor, forced labor, slavery, and human trafficking. And (2) businesses and consumers, by means of publicly available disclosures, can avoid inadvertently promoting or sanctioning these crimes through production and purchase of goods and products that have been tainted in the supply chains. Amends the Securities Exchange Act of 1934 to direct the Securities and Exchange Commission (SEC), within one year after enactment of the Global Supply Chain Transparency for Trafficking, Forced Labor, and Child Labor Eradication Act, to promulgate regulations requiring that mandatory annual reports include a disclosure whether the covered issuer has taken any measures during the year to identify and address conditions of forced labor, slavery, human trafficking, and the worst forms of child labor within the issuer's supply chains. Requires any business entity filing such disclosures to make them available on its Internet website. Directs the Secretary of Labor to develop and publish annually on the Internet website of the Department of Labor a list of top 100 companies adhering to supply chain labor standards, as established under federal and international guidelines.