Protecting Equal Opportunity from ESG Act

Subjects: Government Operations and Politics


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 973 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 S. 973

  To prohibit Federal contractors from imposing racial hiring quotas, 
                         benchmarks, or goals.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 23, 2023

  Mr. Cotton (for himself, Mr. Scott of Florida, Mr. Hagerty, and Mr. 
    Hawley) introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
  To prohibit Federal contractors from imposing racial hiring quotas, 
                         benchmarks, or goals.

    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 ``Protecting Equal Opportunity from 
ESG Act''.

SEC. 2. PURPOSE.

    Acknowledging that distinctions between citizens solely because of 
their ancestry are, by their very nature, odious to a free people whose 
institutions are founded upon the doctrine of equality, and recognizing 
that existing regulations have failed to eradicate the use of racial 
hiring quotas among Federal contractors, the purpose of this Act is to 
require contracts with the Federal Government to include an equal 
opportunity clause prohibiting racial hiring quotas, benchmarks, or 
goals.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) Contractor.--The term ``contractor''--
                    (A) means any person that is awarded a contract 
                with the Federal Government or a subcontract under such 
                a contract, including any subcontractor (at any tier) 
                of such person; and
                    (B) includes a person that--
                            (i) is a lessor or lessee; or
                            (ii) is an employer of a worker performing 
                        work on a contract with the Federal Government 
                        whose wages are calculated pursuant to a 
                        special certificate issued under section 14(c) 
                        of the Fair Labor Standards Act of 1938 (29 
                        U.S.C. 214(c)).
            (2) Employment practices.--The term ``employment 
        practices''--
                    (A) means all terms and conditions of employment 
                (including of any paid or unpaid fellowship or 
                internship), including all practices relating to the 
                screening, recruitment, referral, nomination, 
                selection, training, appointment, promotion, demotion, 
                and assignment of personnel; and
                    (B) includes advertising, hiring, assignments, 
                classification, discipline, layoff and termination, 
                upgrading, transfer, leave practices, rate of pay, 
                fringe benefits, or other forms of pay or credit for 
                services rendered and use of facilities.
            (3) Executive agency.--The term ``executive agency'' has 
        the meaning given that term in section 133 of title 41, United 
        States Code.
            (4) National interest.--The term ``national interest''--
                    (A) means a national security interest, economic 
                interest, or public health and welfare interest; and
                    (B) does not include any purported interest in--
                            (i) racial or social justice objectives, 
                        affirmative action agendas, or any other race-
                        based considerations; or
                            (ii) promoting, enabling, or excusing any 
                        policy, initiative, or practice of an employer 
                        concerning--
                                    (I) environmental, social, and 
                                governance (commonly known as ``ESG'');
                                    (II) diversity, equity, and 
                                inclusion (commonly known as ``DEI''); 
                                or
                                    (III) corporate social 
                                responsibility (commonly known as 
                                ``CSR'').
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.

SEC. 4. PROHIBITION ON IMPOSING RACIAL HIRING QUOTAS.

    (a) In General.--The head of each executive agency shall, except as 
provided in subsection (b), ensure that each contract entered into by 
the executive agency on or after the date of enactment of this Act 
includes requirements that the contractor shall--
            (1) certify that, during the 5-year period immediately 
        preceding the date on which the contract is entered into, the 
        contractor did not initiate, carry out, or enforce any system 
        of quotas, benchmarks, or goals in regard to employment 
        practices that encourage or require any discrimination on the 
        basis of race; and
            (2) not, during the performance of the contract, initiate, 
        carry out, or enforce any system of quotas, benchmarks, or 
        goals in regard to employment practices which encourage or 
        require any discrimination on the basis of race.
    (b) Exception for Lookback Requirement.--Notwithstanding subsection 
(a), the Secretary may exempt the head of an executive agency from the 
requirement to include the certification described in subsection (a)(1) 
in a specific contract, subcontract, or purchase order if the Secretary 
determines that special circumstances in the national interest so 
require.

SEC. 5. REGULATIONS AND IMPLEMENTATION.

    (a) Regulations Required.--
            (1) Department of labor.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary shall issue such 
        regulations as are necessary to implement this Act.
            (2) Federal acquisition regulation.--Not later than 90 days 
        after the date on which the Secretary issues regulations under 
        paragraph (1), the Federal Acquisition Regulatory Council shall 
        amend the Federal Acquisition Regulation, consistent with such 
        regulations, to provide for inclusion in any Federal 
        procurement solicitation or contract the requirements under 
        section 4.
    (b) Agency Implementation.--Not later than 90 days after the date 
on which the Secretary issues any regulations under subsection (a)(1) 
and except as provided in section 4(b), the head of each executive 
agency shall ensure that any contract entered into by the executive 
agency complies with the requirements set forth in section 4(a).

SEC. 6. ENFORCEMENT.

    (a) In General.--The Secretary shall have the authority to 
investigate potential violations of this Act and obtain compliance, 
including as provided in subsection (b).
    (b) Penalties for Noncompliance.--In the case of a contractor that 
violates a contract requirement under section 4--
            (1) the relevant executive agency may cancel, terminate, or 
        suspend (in whole or in part) the applicable contract; and
            (2) the Secretary may initiate a debarment proceeding with 
        respect to the contractor.
                                 &lt;all&gt;
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