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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 367 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                 S. 367

  To amend the Tariff Act of 1930 to prohibit the import, export, and 
    sale of goods made with sweatshop labor, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 23, 2007

Mr. Dorgan (for himself, Mr. Graham, Mr. Feingold, Mr. Brown, Mr. Byrd, 
 and Mr. Sanders) introduced the following bill; which was read twice 
                and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To amend the Tariff Act of 1930 to prohibit the import, export, and 
    sale of goods made with sweatshop labor, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Decent Working Conditions and Fair 
Competition Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress makes the following findings:
            (1) Violations of core labor standards, as defined under 
        the laws of the United States and the International Labor 
        Organization, are widespread in factories that produce goods 
        for sale in the United States.
            (2) Factories that violate core labor standards are 
        commonly referred to as sweatshops.
            (3) Subjecting factory workers to sweatshop conditions that 
        violate core labor standards is morally offensive to the 
        American people both in their roles as consumers and as 
        investors, and is degrading to workers forced to labor under 
        sweatshop conditions.
            (4) Workers have a right to be free of sweatshop working 
        conditions.
            (5) Consumers have a right to know that the goods they 
        purchase are not produced in sweatshops.
            (6) Businesses have a right to be free from competition 
        with companies that use sweatshop labor.
            (7) Shareholders have a right to know that their 
        investments are not supporting sweatshop labor.
            (8) It is a deceptive trade practice and a form of unfair 
        competition for a business to sell sweatshop goods.
            (9) Prohibiting the sale, manufacture, offer for sale, 
        transportation, and distribution of sweatshop goods, regardless 
        of the source of the goods, is consistent with the 
        international obligations of the United States because the 
        prohibition applies equally to domestic and foreign products 
        and avoids any discrimination among foreign sources of 
        competing products.
    (b) Purposes.--The purposes of this Act are to--
            (1) prohibit the import, export, or sale of goods made in 
        factories or workshops that violate core labor standards; and
            (2) prohibit the procurement of sweatshop goods by the 
        United States Government.

SEC. 3. DEFINITION OF CORE LABOR STANDARDS.

    (a) In General.--In this Act, the term ``core labor standards'' 
means--
            (1) the right of association;
            (2) the right to organize and bargain collectively;
            (3) a prohibition on the use of any form of forced or 
        compulsory labor;
            (4) a minimum age for the employment of children; and
            (5) acceptable conditions of work with respect to minimum 
        wages, hours of work, and occupational safety and health.
    (b) Acceptable Conditions.--For purposes of subsection (a)(5), 
acceptable conditions of work shall be determined by the laws, 
regulations, or competent authority of the country where the labor is 
performed.

                      TITLE I--TARIFF ACT OF 1930

SEC. 101. IMPORTATION AND SALE OF SWEATSHOP GOODS PROHIBITED.

    Section 307 of the Tariff Act of 1930 (19 U.S.C. 1307) is amended 
to read as follows:

``SEC. 307. PROHIBITION ON IMPORT AND SALE OF CONVICT-MADE GOODS AND 
              SWEATSHOP GOODS.

    ``(a) Definitions.--In this section:
            ``(1) Convict-made good.--The term `convict-made good' 
        means any good, ware, article, or merchandise mined, produced, 
        or manufactured wholly or in part in any foreign country by 
        convict labor.
            ``(2) Sweatshop good.--The term `sweatshop good' means any 
        good, ware, article, or merchandise mined, produced, or 
        manufactured wholly or in part in violation of core labor 
        standards as defined in section 3 of the Decent Working 
        Conditions and Fair Competition Act.
    ``(b) Prohibitions.--It is unlawful for any person to--
            ``(1) import into the United States any convict-made good;
            ``(2) import into, or export from, the United States any 
        sweatshop good;
            ``(3) introduce into commerce, sell, trade, or advertise in 
        commerce, offer to sell, or transport or distribute in commerce 
        in the United States, any sweatshop good.''.

SEC. 102. WAIVER AUTHORITY.

    (a) In General.--The President, for reasons of national interest, 
may recommend that the application of section 201 of this Act or 
section 307(b) (2) and (3) of the Tariff Act of 1930 (19 U.S.C. 1307) 
be waived in connection with the goods of any country with respect to 1 
or more of the principles and rights defined as core labor standards in 
section 3 of this Act. Any such recommendation shall--
            (1) be transmitted to the House of Representatives and the 
        Senate setting forth the President's reasons for the waiver;
            (2) include, for each waiver recommendation, a 
        determination that the waiver is necessary to protect the 
        national interest of the United States; and
            (3) include, for each principle or right for which a waiver 
        is recommended, an explanation of why the President recommends 
        waiving application of that principle or right.
    (b) Period of Waiver.--A waiver under this section shall be 
effective for a 12-month period unless Congress enacts a joint 
resolution described in subsection (c).
    (c) Joint Resolution Requirements and Procedures.--
            (1) Resolution described.--For purposes of this subsection, 
        the term ``resolution'' means only a joint resolution of the 
        two Houses of Congress, the matter after the resolving clause 
        of which is as follows: ``That Congress does not approve the 
        waiver of section 201 of the Decent Working Conditions and Fair 
        Competition Act or section 307(b) (2) and (3) of the Tariff Act 
        of 1930 (19 U.S.C. 1307) recommended by the President to 
        Congress on _______ with respect to the application of _______ 
        to the goods of_______.'', with the first blank space being 
        filled with the appropriate date, the second blank space being 
        filled with the principle or right to be waived, and the third 
        blank space being filled with the name of the country with 
        respect to which the waiver of authority is disapproved.
            (2) Application of procedural provisions.--The provisions 
        of section 152 (b) through (f) of the Trade Act of 1974 (19 
        U.S.C. 2192 (b) through (f)) shall apply to resolutions 
        described in paragraph (1).
            (3) Approval by congress.--If Congress approves a joint 
        resolution, Congress shall send the resolution to the President 
        before the end of the 90-day period beginning on the date that 
        Congress receives the waiver recommendation described in 
        subsection (a).
            (4) Effect of veto.--If the President vetoes the joint 
        resolution, the resolution is enacted into law if each House of 
        Congress votes to override the veto on or before the later of 
        the last day of the 90-day period referred to in paragraph (3) 
        or the last day of the 15-day period, excluding any day 
        described in section 154(b) of the Trade Act of 1974 (19 U.S.C. 
        2194(b)), beginning on the date Congress receives the veto 
        message from the President.
            (5) Introduction.--A joint resolution to which this 
        subsection applies may be introduced at any time on or after 
        the date the President transmits to Congress the waiver 
        recommendation described in subsection (a).
    (d) Termination or Extension of Waiver.--A waiver with respect to 
the goods of any country terminates on the day after the waiver 
authority granted by this subsection ceases to be effective with 
respect to such country, unless an extension of the waiver authority is 
granted. The President may recommend an extension of the waiver 
authority in the same manner as the original recommendation, except 
that the President may not recommend an extension later than the date 
that is 30 days before the waiver authority expires. The President may, 
at any time, terminate by Executive order any waiver under this 
section.

                   TITLE II--FEDERAL TRADE COMMISSION

SEC. 201. VIOLATION OF FEDERAL TRADE COMMISSION ACT.

    (a) In General.--It is unlawful for any person to introduce into 
commerce, sell, trade, or advertise in commerce, offer to sell or 
transport or distribute in commerce any sweatshop good.
    (b) Sweatshop Good.--For purposes of this title, the term 
``sweatshop good'' means any good, ware, article, or merchandise mined, 
produced, or manufactured wholly or in part in violation of core labor 
standards, as defined in section 3 of this Act.
    (c) Enforcement.--
            (1) In general.--The Federal Trade Commission shall enforce 
        the provisions of this section with respect to the prohibitions 
        under subsection (a) as if the violation were an unfair or 
        deceptive act or practice proscribed under section 18(a)(1)(B) 
        of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
            (2) Actions by the commission.--The Commission shall 
        prevent any person from violating this title in the same 
        manner, by the same means, and with the same jurisdiction, 
        powers, and duties as though all applicable terms and 
        provisions of the Federal Trade Commission Act (15 U.S.C. 41 et 
        seq.) were incorporated into and made a part of this title. Any 
        person that violates the provisions of this title shall be 
        subject to the penalties and entitled to the privileges and 
        immunities provided in the Federal Trade Commission Act in the 
        same manner, by the same means, and with the same jurisdiction, 
        power, and duties as though all applicable terms and provisions 
        of the Federal Trade Commission Act were incorporated into and 
        made a part of this title.
            (3) Investigations.--Notwithstanding any other provision of 
        law, the Federal Trade Commission shall investigate any 
        complaint received from a worker alleging a violation of this 
        title with respect to a good, ware, article, or merchandise 
        produced by that worker.
            (4) Regulations.--Not later than 180 days after the date of 
        the enactment of this Act, the Federal Trade Commission shall 
        publish rules to carry out the provisions of this title.

SEC. 202. PRIVATE RIGHT OF ACTION.

    (a) Private Suits.--A person with standing to sue under subsection 
(c) may bring a civil action against any seller of goods, wares, 
articles, or merchandise on grounds of violation of section 201.
    (b) Jurisdiction.--The United States district courts shall have 
jurisdiction, without regard to the amount in controversy or the 
citizenship of the parties, to enforce this section.
    (c) Standing to Sue.--The following persons have standing to sue 
under this section:
            (1) Competitors of the retailer of any good, ware, article, 
        or merchandise sold in violation of section 201.
            (2) Investors of the retailer of any good, ware, article, 
        or merchandise sold in violation of section 201.
    (d) Damages; Injunctive Relief; Attorney Costs and Fees.--
            (1) Damages.--When a violation of section 201 is 
        established in any civil action arising under this section, the 
        plaintiff shall be entitled to recover $10,000 per violation or 
        the fair market value of the goods, whichever is greater. The 
        court may increase the award of damages if the court finds that 
        the defendant willfully or knowingly violated section 201.
            (2) Injunctive relief.--The plaintiff may sue for 
        injunctive relief against threatened loss or damage due to a 
        violation of section 201.
            (3) Costs and fees.--The court shall award the cost of the 
        suit, including reasonable attorneys' fees, to a prevailing 
        plaintiff.
    (e) Interagency Cooperation.--All Federal departments and agencies 
shall cooperate with the Commissioner of U.S. Customs and Border 
Protection and the Federal Trade Commission, to the extent practicable 
in the enforcement of this title.
    (f) List of Violators; Disclosure and Publication by Federal Trade 
Commission.--On January 1 and July 1 of each year, the Federal Trade 
Commission shall publish in the Federal Register and post on an 
Internet website the following information:
            (1) An alphabetical list of the name, address, and chief 
        executive officer of each person that has, during the 2 years 
        prior to publication, violated the provisions of this title, 
        along with a summary description of each violation and the 
        cumulative number of violations by each person on the list.
            (2) A detailed description of each violation that includes 
        the following information:
                    (A) The name, address, and chief executive officer 
                of each violator.
                    (B) The circumstances under which core labor 
                standards, as defined in section 3 of this Act, were 
                violated in the course of the mining, production, or 
                manufacturing of the goods in question.

                   TITLE III--GOVERNMENT PROCUREMENT

SEC. 301. GOVERNMENT PROCUREMENT OF SWEATSHOP GOODS PROHIBITED.

    (a) Amendment to Federal Property and Administrative Services Act 
of 1949.--Title III of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 251 et seq.) is amended by adding at the end the 
following new section:

``SEC. 318. PROHIBITION ON PROCUREMENT OF SWEATSHOP GOODS.

    ``(a) Certification Requirement.--The head of an executive agency 
shall ensure that each covered contract entered into by such official 
for the procurement of property includes a clause that requires the 
contractor--
            ``(1) to certify to the contracting officer that the 
        contractor has made a good faith effort to determine whether 
        any product furnished under the contract is a sweatshop good, 
        and that, on the basis of those efforts, the contractor is 
        unaware that any such product is a sweatshop good; and
            ``(2) to cooperate fully in providing reasonable access to 
        the contractor's records, persons, or premises if requested by 
        the contracting agency, the Department of Homeland Security, or 
        the Department of Justice for the purpose of determining 
        whether any product furnished under the contract is a sweatshop 
        good.
    ``(b) Investigations.--Whenever a contracting officer of an 
executive agency has reason to believe that a product furnished under a 
covered contract is a sweatshop good, the head of the executive agency 
shall refer the matter for investigation to the Inspector General of 
the executive agency and, as the head of the executive agency or the 
Inspector General determines appropriate, to the Attorney General and 
the Secretary of Homeland Security.
    ``(c) Remedies.--
            ``(1) In general.--The head of an executive agency may 
        impose remedies as provided in this subsection if the head of 
        the executive agency finds that the contractor--
                    ``(A) has furnished under a covered contract a 
                product that is a sweatshop good;
                    ``(B) has submitted a false certification under 
                subsection (a)(1); or
                    ``(C) has failed to cooperate with an investigation 
                under this section.
            ``(2) Termination of contract.--The head of an executive 
        agency may terminate a covered contract on the basis of a 
        finding of a violation that occurs under paragraph (1) after 
        the date the requirements of this section are implemented 
        through the amendment of the Federal Acquisition Regulation 
        under sections 6 and 25 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 405 and 421).
            ``(3) Debarment and suspension.--The head of an executive 
        agency may debar or suspend a contractor from eligibility for 
        Federal contracts on the basis of a finding that the contractor 
        has committed a violation described in paragraph (1). The 
        debarment period may not exceed 3 years.
            ``(4) Inclusion on list of parties excluded from federal 
        procurement and nonprocurement programs.--The Administrator of 
        General Services shall include on the List of Parties Excluded 
        from Federal Procurement and Nonprocurement Programs maintained 
        by the Administrator under part 9 of the Federal Acquisition 
        Regulation each contractor that is debarred, suspended, 
        proposed for debarment or suspension, or declared ineligible by 
        the head of an executive agency on the basis that the 
        contractor has committed a violation under paragraph (1).
            ``(5) Remedies not exclusive.--This section shall not be 
        construed to limit the use of other remedies available to the 
        head of an executive agency or any other official of the 
        Federal Government on the basis of a finding under paragraph 
        (1).
    ``(d) Definitions.--In this section:
            ``(1) Covered contract.--The term `covered contract' means 
        a contract for a total amount in excess of the micro-purchase 
        threshold, as that term is defined in section 32(f) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 428(f)).
            ``(2) Sweatshop good.--The term `sweatshop good' means all 
        goods, wares, articles, and merchandise mined, produced, or 
        manufactured wholly or in part in violation of core labor 
        standards, as defined in section 3 of the Decent Working 
        Conditions and Fair Competition Act.''.
    (b) Amendment to Title 10, United States Code.--
            (1) In general.--Chapter 137 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 2334. Prohibition on procurement of sweatshop goods
    ``(a) Certification Requirement.--The head of an agency shall 
ensure that each covered contract entered into by such official for the 
procurement of property includes a clause that requires the 
contractor--
            ``(1) to certify to the contracting officer that the 
        contractor has made a good faith effort to determine whether 
        any product furnished under the contract is a sweatshop good, 
        and that, on the basis of those efforts, the contractor is 
        unaware that any such product is a sweatshop good; and
            ``(2) to cooperate fully in providing reasonable access to 
        the contractor's records, persons, or premises if requested by 
        the contracting agency, the Department of Homeland Security, or 
        the Department of Justice for the purpose of determining 
        whether any product furnished under the contract is a sweatshop 
        good.
    ``(b) Investigations.--Whenever a contracting officer of an agency 
has reason to believe that a product furnished under a covered contract 
is a sweatshop good, the head of the agency shall refer the matter for 
investigation to the Inspector General of the agency and, as the head 
of the agency or the Inspector General determines appropriate, to the 
Attorney General and the Secretary of Homeland Security.
    ``(c) Remedies.--(1) The head of an agency may impose remedies as 
provided in this subsection if the head of the agency finds that the 
contractor--
            ``(A) has furnished under a covered contract a product that 
        is a sweatshop good;
            ``(B) has submitted a false certification under subsection 
        (a)(1); or
            ``(C) has failed to cooperate with an investigation under 
        subsection (b).
    ``(2) The head of an agency may terminate a covered contract on the 
basis of a finding of a violation that occurs under paragraph (1) after 
the date the requirements of this section are implemented through the 
amendment of the Federal Acquisition Regulation under sections 6 and 25 
of the Office of Federal Procurement Policy Act (41 U.S.C. 405 and 
421).
    ``(3) The head of an agency may debar or suspend a contractor from 
eligibility for Federal contracts on the basis of a finding that the 
contractor has committed a violation described in paragraph (1). The 
debarment period may not exceed 3 years.
    ``(4) The Administrator of General Services shall include on the 
List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs maintained by the Administrator under part 9 of the Federal 
Acquisition Regulation each contractor that is debarred, suspended, 
proposed for debarment or suspension, or declared ineligible by the 
head of an agency on the basis that the contractor has committed a 
violation under paragraph (1).
    ``(5) This section shall not be construed to limit the use of other 
remedies available to the head of an agency or any other official of 
the Federal Government on the basis of a finding under paragraph (1).
    ``(d) Definitions.--In this section:
            ``(1) The term `covered contract' means a contract for a 
        total amount in excess of the micro-purchase threshold, as that 
        term is defined in section 32(f) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 428(f)).
            ``(2) The term `sweatshop good' means all goods, wares, 
        articles, and merchandise mined, produced, or manufactured 
        wholly or in part in violation of core labor standards, as 
        defined in section 3 of the Decent Working Conditions and Fair 
        Competition Act.''.
            (2) Clerical amendment.--The table of contents at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``2334. Prohibition on procurement of sweatshop goods.''.
    (c) Implementation Through the Federal Acquisition Regulation.--Not 
later than 120 days after the date of the enactment of this Act, the 
Federal Acquisition Regulatory Council shall amend the Federal 
Acquisition Regulation issued under sections 6 and 25 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 405 and 421) to provide for 
the implementation of the requirements of section 318 of the Federal 
Property of Administrative Services Act of 1949 and section 2334 of 
title 10, United States Code, as added by subsections (a) and (b), 
respectively.
    (d) Report.--Not later than 2 years after the requirements of this 
section and of section 318 of the Federal Property of Administrative 
Services Act of 1949 and section 2334 of title 10, United States Code, 
as added by subsections (a) and (b), respectively, are implemented 
through the amendment of the Federal Acquisition Regulation pursuant to 
subsection (c), the Administrator of General Services, with the 
assistance of other executive agencies, shall submit to the Office of 
Management and Budget a report on the actions taken under such 
sections.

                     TITLE IV--EFFECT ON STATE LAW

SEC. 401. RULE OF CONSTRUCTION.

    Nothing in this Act or the amendments made by this Act shall be 
construed to preempt any law of a State or political subdivision of a 
State relating to labor standards required in the mining, production, 
or manufacture of any good, ware, article, or merchandise purchased by 
the State or political subdivision.
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