SEC. 3. RESPONSIBLE BUSINESS PRACTICES OF UNITED
STATES NATIONALS IN FOREIGN COUNTRIES.
(a) REQUIREMENT.—A national of the United States
that employs more than 20 persons in a foreign country,
either directly or through subsidiaries, subcontractors, af-
filiates, joint ventures, partners, or licensees (including
any security forces of the national), shall take the nec-
essary steps to implement the Corporate Code of Conduct
described in subsection (b) with respect to the employment
of those persons.
(b) CORPORATE CODE OF CONDUCT.—The Corporate
Code of Conduct described in this subsection is as follows:
(1) Provide a safe and healthy workplace.
(2)(A) Ensure fair employment, including the
prohibition of the use of child and forced labor, the
prohibition of discrimination based upon race, gen-
der, national origin, or religious beliefs, respect for
freedom of association and the right to organize
independently and bargain collectively, and the pay-
ment of a living wage to all workers, including, at
a minimum, a living wage that would meet the basic
needs of an average-size family and provide some
discretionary income for an average-size family.
(B) Prohibit mandatory overtime work by em-
ployees under the age of 18.
(C) Prohibit the practice of pregnancy testing
of employees, including the forced usage of birth
control, and further prohibit the dismissal or dis-
crimination of employees based on pregnancy.
(D) Prohibit retaliation against any employee
who conveys information, either internally, publicly,
or to government regulators in the country involved
or the United States, relating to a violation or al-
leged violation of any provision of this subsection.
(3) Promote good governance and good business
practices, including prohibiting illicit payments, en-
suring fair competition, and revocation of corporate
charters when corporations fail to serve the public
good and general welfare.
(4)(A) Maintain, through leadership at all lev-
els, a corporate culture that respects free expression
consistent with legitimate business concerns, does
not condone political coercion in the workplace, en-
courages good corporate citizenship and makes a
positive contribution to the communities in which
the national of the United States operates, and pro-
motes ethical conduct that is recognized, valued, and
exemplified by all employees.
(B) In addition, comply with internationally
recognized worker rights and core labor standards.
(5) Uphold responsible environmental protection
and environmental practices, including compliance
with internationally recognized environmental stand-
ards and with all Federal environmental laws for
similar operations that would be applicable to the
national of the United States if the operations of the
national were located in the United States.
(6) Comply with minimum international human
rights standards.
(7)(A) Require, under terms of contract, part-
ners, suppliers, and subcontractors of the national of
the United States (including any security forces of
the national) to adopt and adhere to the principles
described in paragraphs (1) through (6).
(B) In addition, require full public disclosure of
information relating to location and address, cor-
porate name, applicable financial agreements, worker
rights practices and labor standards, working condi-
tions, environmental performance, and applicable in-
vestments of partners, suppliers, subsidiaries, con-
tractors, and subcontractors of the national of the
United States (including any security forces of the
national).
(8) Implement and monitor compliance with the
principles described in paragraphs (1) through (7)
through a self-financing program internal to the
business that is designed to prevent and detect con-
duct that is not in compliance with such principles
by any employee of the national of the United
States, or any employee of the partner, supplier, or
subcontractor of the national, and that includes—
(A) standards for ethical conduct of such
employees which refer to the principles;
(B) procedures for assignment of appro-
priately qualified personnel at the management
level to monitor and enforce compliance with
the principles;
(C) procedures for reporting violations of
the principles by such employees;
(D) procedures for disciplinary action in
response to violations of the principles;
(E) procedures designed to ensure that, in
cases in which a violation of the principles has
been detected, reasonable steps are taken to
correct the violation and prevent similar viola-
tions from occurring;
(F) procedures for providing educational
and employment-related counseling to any em-
ployee in violation of the principles; and
(G) communication of all standards and
procedures with respect to the principles to
every employee—
(i) by requiring the employee to par-
ticipate in a training program; or
(ii) by disseminating information in
writing in the appropriate local language
that explains the standards and proce-
dures.
(c) DEFINITIONS.—In this section:
(1) BASIC NEEDS OF AN AVERAGE-SIZE FAM-
ILY.—The term ‘‘basic needs of an average-size
family’’—
(A) means nutritious food, clothing, health
care, education, potable water, child care, trans-
portation, housing, and energy; and
(B) shall be determined by wage studies
that measure the purchasing power necessary to
provide for the needs described in subparagraph
(A).
(2) INTERNATIONALLY RECOGNIZED ENVIRON-
MENTAL
STANDARDS.—The term ‘‘internationally
recognized environmental standards’’ includes stand-
ards relating to—
(A) mitigation of global climate change;
(B) reduction in the consumption and pro-
duction of ozone-depleting substances;
(C) reduction in ship pollution of the
oceans from such sources as oil, noxious bulk
liquids, hazardous freight, sewage, and garbage;
(D) the ban on international ocean dump-
ing of high-level radioactive waste, chemical
warfare agents, and hazardous substances;
(E) 
government 
control 
of 
the
transboundary movement of hazardous waste
materials and their disposal for the purpose of
reducing global pollution due to such materials;
(F) preservation of endangered species;
(G) conservation of biological diversity;
(H) promotion of biodiversity; and
(I) preparation of oil-spill contingency
plans.
(3) MINIMUM INTERNATIONAL HUMAN RIGHTS
STANDARDS.—The term ‘‘minimum international
human rights standards’’ means standards contained
in the following United Nations instruments relating
to international human rights: the Universal Dec-
laration of Human Rights, the International Cov-
enant on Civil and Political Rights, the Convention
Against Torture and Other Cruel, Inhuman or De-
grading Treatment or Punishment, the Convention
on the Prevention and Punishment of the Crime of
Genocide, the Slavery Convention, the Supple-
mentary Convention on the Abolition of Slavery, the
Slave Trade and Institutions and Practices Similar
to Slavery, and the International Convention on the
Elimination of All Forms of Racial Discrimination.
(4) INTERNATIONALLY
RECOGNIZED
WORKER
RIGHTS AND CORE LABOR STANDARDS.—The term
‘‘internationally recognized worker rights and core
labor standards’’ means standards contained in the
following International Labor Organization (ILO)
conventions:
(A) Freedom of Association and Protection
of the Right to Organize Convention (No. 87).
(B) Right to Organize and Collective Bar-
gaining Convention (No. 98).
(C) Forced Labour Convention (No. 29).
(D) Abolition of Forced Labour Conven-
tion (No. 105).
(E) Discrimination (Employment and Oc-
cupation) Convention (No. 111).
(F) Equal Remuneration Convention (No.
100).
(G) Minimum Age Convention (No. 138).
(H) Occupational Safety and Health (No.
155).
(I) Convention on the Worst Forms of
Child Labor (No. 182).
(5) NATIONAL OF THE UNITED STATES.—The
term ‘‘national of the United States’’ means—
(A) a citizen of the United States or an
alien lawfully admitted for permanent residence
in the United States; or
(B) a corporation, partnership, or other
business association that is organized under the
laws of the United States.
(6) 
UNITED
STATES.—The 
term 
‘‘United
States’’ means the States of the United States, the
District of Columbia, the Commonwealth of Puerto
Rico, and any territory or possession of the United
States.
SEC. 4. PREFERENCE IN AWARD OF CONTRACTS AND PRO-
VISION OF CERTAIN FOREIGN TRADE AND IN-
VESTMENT ASSISTANCE.
(a) PREFERENCE IN AWARD OF CONTRACTS.—
(1) IN GENERAL.—In entering into contracts
with entities described in subsection (c) to procure
goods or services, the head of an executive agency
shall give a preference to contracting with entities
that have adopted and are enforcing the Corporate
Code of Conduct described in section 3(b).
(2) 
STANDARDS.—The 
Federal 
Acquisition
Regulations shall include standards with respect to
the preference required by this subsection.
(b) PREFERENCE IN PROVIDING CERTAIN FOREIGN
TRADE AND INVESTMENT ASSISTANCE.—
(1) DEPARTMENT OF COMMERCE.—
(A) IN
GENERAL.—In providing entities
described in subsection (c) that are also United
States exporters with introduction to contacts
in 
foreign 
countries 
pursuant 
to 
section
2301(b)(4) of the Omnibus Trade and Competi-
tiveness Act of 1988 (15 U.S.C. 4721(b)(4)),
and in coordinating trade missions with entities
described in subsection (c), the Secretary of
Commerce shall give preference to entities that
have adopted the Corporate Code of Conduct
set forth in section 3(b).
(B) REGULATIONS.—The Secretary of
Commerce shall promulgate regulations con-
taining standards with respect to the preference
required by this paragraph.
(2) OVERSEAS PRIVATE INVESTMENT CORPORA-
TION.—
(A) IN GENERAL.—In providing financing
and issuing investment insurance, reinsurance,
and guaranties to entities described in sub-
section (c) pursuant to title IV of chapter 2 of
part I of the Foreign Assistance Act of 1961
(22 U.S.C. 2191 et seq.), the Overseas Private
Investment Corporation shall give preference to
entities that have adopted the Corporate Code
of Conduct set forth in section 3(b).
(B) REGULATIONS.—The Board of Direc-
tors of the Overseas Private Investment Cor-
porations shall promulgate regulations con-
taining standards with respect to the preference
required by this paragraph.
(3) TRADE AND DEVELOPMENT AGENCY.—
(A) IN GENERAL.—In providing assistance
to entities described in subsection (c) under sec-
tion 661 of the Foreign Assistance Act of 1961
(22 U.S.C. 2421(b)), the Trade and Develop-
ment Agency shall give preference to entities
that have adopted the Corporate Code of Con-
duct set forth in section 3(b).
(B) REGULATIONS.—The Director of the
Trade and Development Agency shall promul-
gate regulations containing standards with re-
spect to the preference required by this para-
graph.
(4) EXPORT-IMPORT
BANK
OF
THE
UNITED
STATES.—
(A) IN
GENERAL.—In providing guaran-
tees, insurance, and credit, and in participating
in extensions of credit, for entities described in
subsection (c), the Export-Import Bank of the
United States shall give preference to entities
that have adopted the Corporate Code of Con-
duct set forth in section 3(b).
(B) REGULATIONS.—The Board of Direc-
tors of the Export-Import Bank shall promul-
gate regulations containing standards with re-
spect to the preference required by this para-
graph.
(c) ENTITIES DESCRIBED.—The entities described in
this subsection are nationals of the United States that em-
ploy more than 20 persons in a foreign country, either
directly or through subsidiaries, subcontractors, affiliates,
joint ventures, partners, or licensees (including any secu-
rity forces of the national).
SEC. 5. INVESTIGATIONS OF COMPLIANCE WITH COR-
PORATE CODE OF CONDUCT.
(a) DEFINITION.—In this section, the term ‘‘appro-
priate Federal official’’ means the Secretary of Commerce,
the Secretary of Labor, the Secretary of State, or the Ad-
ministrator of the Environmental Protection Agency.
(b) PETITIONS.—
(1) IN GENERAL.—Any person may at any time
file a petition with the appropriate Federal official
requesting that action be taken under section 6 and
setting forth the allegations in support of the re-
quest. A petition alleging the failure of an entity to
comply with the Corporate Code of Conduct adopted
by the entity pursuant to section 3 may seek—
(A) the termination of a contract awarded
or of assistance provided to an entity that re-
ceived a preference under section 4 in the
award of a contract or in the provision of as-
sistance;
(B) the withdrawal, suspension, or limita-
tion of the eligibility of an entity for a pref-
erence under section 6; or
(C) action under both subparagraphs (A)
and (B).
(2) REVIEW; DETERMINATION TO INITIATE IN-
VESTIGATION.—The appropriate Federal official
shall review the allegations in any petition filed
under paragraph (1) and, not later than 45 days
after the date on which the petition is received, shall
initiate an investigation unless the petition is dis-
missed under paragraph (3).
(3) DETERMINATION NOT TO INITIATE INVES-
TIGATION.—
(A) IN GENERAL.—The appropriate Fed-
eral official may determine not to initiate an in-
vestigation with respect to a petition filed under
paragraph (1) only upon issuing a finding that
the petition is frivolous. This finding shall be
made without regard to whether similar allega-
tions were made in a previously reviewed peti-
tion and shall focus exclusively on whether the
facts alleged in a petition, if true, would fail to
establish a prima facie case for noncompliance
with the Corporate Code of Conduct set forth in
section 3. Only if the facts alleged in a petition,
if true, fail to make out a prima facie case, or
if a petition contains only conclusory allegations
with no allegation of supporting facts, shall a
petition be dismissed as frivolous.
(B) NOTIFICATION.—If the appropriate
Federal official finds a petition to be frivolous,
such official shall issue a written decision indi-
cating the specific reasons therefor and shall
publish notice of the determination, together
with a summary of such reasons, in the Federal
Register. A copy of the decision shall be sent to
the petitioner and shall be made available for
public review.
(4) SPECIAL COMMITTEES.—The Secretary of
Commerce, the Secretary of Labor, the Secretary of
State, and the Administrator of the Environmental
Protection Agency may establish one or more special
committees to review petitions filed under paragraph
(1) that are under investigation and make written
recommendations with respect to each petition. The
written recommendations shall be available to the
public. The members of the special committees may
be drawn from other agencies within the executive
branch, and each member shall have the necessary
expertise relevant to the issues raised in any peti-
tions to be considered.
(5) INVESTIGATIONS.—
(A) IN GENERAL.—In initiating an inves-
tigation of a petition under this subsection, the
appropriate Federal official shall publish a sum-
mary of the petition in the Federal Register,
along with a request for any person to submit
information relevant to the petition. Following
such publication, such official shall conduct an
independent investigation and gather informa-
tion from all available resources. As part of the
review process, the appropriate Federal official
shall, as soon as practicable, and in no event
later than 90 days after the date on which the
petition is filed, provide opportunity for the
presentation of information concerning the
issues involved, including a public hearing at
which all interested parties may participate.
(B) PETITIONS
ALLEGING
NONCOMPLI-
ANCE.—With respect to any petition alleging
noncompliance, the appropriate Federal official
shall determine whether such violations have oc-
curred or are occurring. Such official in the
preceding sentence shall provide written rec-
ommendations regarding the disposition of the
allegations that shall be entered in the record of
the investigation. The appropriate Federal offi-
cial, or any member of any special committee
established under paragraph (4), may also seek
advice from experts in the fields of human
rights, worker rights, environmental protection,
and equal opportunity employment. The advice
may be in writing or taken as oral testimony at
a public hearing and shall be entered in the
record of the investigation.
(6) DECISIONS.—After completion of the inves-
tigation, and in no event later than 270 days after
the date on which the petition was filed, the appro-
priate Federal official shall issue a decision whether
to grant the relief requested in the petition. The de-
cision shall be in writing and clearly reference the
issues presented, the factual findings regarding the
allegations, and the standard applied in determining
whether the facts as found required action under
section 6. A copy of the decision shall be provided
to the petitioner, the entity involved in the petition,
and any other party that submitted information rel-
evant to the petition, and shall be made available for
public review. A summary of the decision shall be
published in the Federal Register.
(c) INITIATION OF INVESTIGATION BY MEANS OTHER
THAN PETITION.—If the appropriate Federal official de-
termines that an investigation should be initiated with re-
spect to any matter in order to determine whether the
matter requires action under section 6, such official shall
publish such determination in the Federal Register and
shall initiate such investigation using the procedures of
paragraphs (5) and (6) of subsection (b), to the extent
appropriate.
(d) PROMULGATION
OF REGULATIONS.—The Sec-
retary of Commerce shall promulgate regulations to imple-
ment this section. The regulations may include—
(1) procedures for the creation of special com-
mittees under subsection (b)(4);
(2) coordinating investigations with other agen-
cies;
(3) consolidating multiple petitions concerning
the same contract or entity; and
(4) holding hearings on similar petitions at the
same time in order to efficiently gather information.
(e) JUDICIAL REVIEW OF DETERMINATIONS.—Any
final decision dismissing or denying a petition requesting
action under section 6, or any final decision that results
in an action against an entity under section 6, may be
appealed by the petitioner or the entity to the appropriate
United States Court of Appeals for review. The decision
shall be reviewed as a final agency action.
SEC. 6. TERMINATION OF CONTRACTS OR ASSISTANCE AND
WITHDRAWAL, SUSPENSION, OR LIMITATION
OF PREFERENCE.
(a) TERMINATION OF CONTRACT OR ASSISTANCE.—
Based upon a determination from an investigation initi-
ated under section 5 and notwithstanding any other provi-
sion of law, the Secretary of Commerce, the Secretary of
Labor, the Secretary of State, or the Administrator of the
Environmental Protection Agency shall terminate a con-
tract entered into by the executive agency involved with
an entity described in section 4(c) for the procurement of
goods or services by the agency, and the appropriate Fed-
eral official or entity described in paragraph (1), (2), (3),
or (4) of section 4(b) shall terminate foreign trade and
investment assistance from the United States Government
(as described in section 4(b)) provided to an entity de-
scribed in section 4(c), if the entity or contractor or other
recipient of the assistance is not in compliance with the
Corporate Code of Conduct described in section 3(b).
(b) WITHDRAWAL, SUSPENSION, OR LIMITATION OF
PREFERENCE.—The designation of an entity as eligible to
receive a preference under section 4 shall be withdrawn,
suspended, or limited if the entity is no longer in complete
compliance with the Corporate Code of Conduct described
in section 3(b).
SEC. 7. REPORTING REQUIREMENTS.
(a) REPORTS TO CERTAIN FEDERAL DEPARTMENTS
AND AGENCIES.—Each entity described in section 4(c)
that enters into a contract with an executive agency for
the procurement of goods or services by the agency, and
each entity described in section 4(c) that receives certain
foreign trade and investment assistance from the United
States Government (as described in section 4(b)), shall
prepare and submit to the Secretary of Commerce, the
Secretary of Labor, the Secretary of State, and the Ad-
ministrator of the Environmental Protection Agency an
annual report, which shall be made available to the public,
that contains a description of the monitoring program es-
tablished and carried out by the entity pursuant to section
3(b)(8) and any progress made toward full compliance
with the principles described in paragraphs (1) through
(7) of section 3(b) by the individuals described in section
3(b)(8).
(b) REPORTS TO CONGRESS.—The Secretary of Com-
merce, the Secretary of Labor, the Secretary of State, and
the Administrator of the Environmental Protection Agen-
cy shall jointly prepare and submit to the Congress, at
the same time the annual Department of State Country
Reports on Human Rights Practices is submitted, an an-
nual report, which shall be made available to the public,
that contains a compilation of the reports received from
each entity under subsection (a) for the prior year (includ-
ing a compilation of the petitions submitted to the appro-
priate Federal officials under section 5 for the prior year)
and that contains an analysis of the extent to which each
such entity is in compliance with the Corporate Code of
Conduct described in section 3(b).
SEC. 8. ENFORCEMENT AND ADMINISTRATIVE PROVISIONS.
(a) REGULATORY AUTHORITY.—The President shall
issue such rules, regulations, licenses, and orders as are
necessary to carry out the provisions of this Act.
(b) ENFORCEMENT AND PENALTIES.—
(1) IN GENERAL.—The President, with respect
to his authorities under subsection (a), shall take the
necessary steps to ensure compliance (including the
monitoring of compliance) with the provisions of this
Act and any rules, regulations, licenses, and orders
issued to carry out this Act.
(2) LIABILITY.—Beginning 2 years after the
date of the enactment of this Act, any person who
is in violation of any provision of this Act (or any
rule, regulation, license, or order issued to carry out
this Act) shall be liable for damages in a civil cause
of action initiated in an appropriate United States
district court to any individual aggrieved by the act
or omission of the person in question, or to the