II 114th CONGRESS 1st Session S. 553 IN THE SENATE OF THE UNITED STATES February 24, 2015 Mr. Corker (for himself, Mr. Menendez , Mr. Rubio , Mrs. Shaheen , Ms. Ayotte , Mr. Coons , Mr. McCain , Mr. Blumenthal , Mr. Alexander , Mr. Portman , Mr. Kirk , and Mr. Cardin ) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations A BILL To marshal resources to undertake a concerted, transformative effort that seeks to bring an end to modern slavery, and for other purposes.

1. Short title This Act may be cited as the End Modern Slavery Initiative Act of 2015 . 2. Sense of congress It is the sense of Congress that— (1) the United States has a long history of domestic and international engagement in preventing and responding to modern slavery; (2) modern slavery involves extensive criminal activity and demands the full attention and commitment of the United States; (3) the United States Government should continue to coordinate across departments and agencies to prevent and respond to this heinous activity that involves over 21,000,000 people worldwide through sustained investment in integrated, interagency anti-trafficking initiatives; (4) while United States Government efforts continue to address many facets of modern slavery, there is an urgent need today for international public and private cooperation to increase resources available to programs that can make a measureable impact in reducing the prevalence of modern slavery by building the capacity of foreign governments to sustainably deter perpetrators of modern slavery through— (A) establishing and enforcing the rule of law to hold perpetrators of modern slavery accountable, including— (i) those who enslave children and adults in the sex trade; and (ii) those who enslave through forced labor and abusive labor recruitment practices and fees; (B) promoting justice for victims of modern slavery; (C) restoring and protecting survivors of modern slavery; and (D) building partnerships between governments, civil society organizations, private sector entities and individuals, and survivors to seek to bring an end to modern slavery; and (5) countries that fall within the first and second tiers of the United States Department of State’s annual Trafficking in Persons report could qualify as partner countries for the purposes of this Act, and many countries that fall within the Tier 2 watch list may also qualify, and therefore should be eligible for funding as partner countries under this Act, along with key jurisdictions of other countries, such as Tier 3 countries. 3. Policy It is the policy of the United States Government— (1) to marshal resources to seek to bring to an end modern slavery through the provision of matching funds to a private grant-making institution, in partnership with private donors and other governments, that selects and supports innovative strategies with the aim of verifiably and sustainably reducing the prevalence of modern slavery by 50 percent in targeted populations within partner countries (or jurisdictions thereof) with a high prevalence of modern slavery; (2) to allow such a private grant-making institution the flexibility to work in jurisdictions of other countries, where those jurisdictions have demonstrated the type of commitment and capabilities otherwise required of partner countries; and (3) to engage other countries with a high prevalence of modern slavery through the full range of United States Government foreign assistance programs in order to help those countries become eligible as partner countries for the purposes of receiving additional assistance under the End Modern Slavery Initiative established by this Act. 4. The end modern slavery initiative foundation (a) In general Not later than 60 days after the date of the enactment of this Act, there shall be established and incorporated under the laws of the District of Columbia an independent, private nonprofit corporation to be known as End Modern Slavery Initiative Foundation . (b) Purpose The purpose of the End Modern Slavery Initiative Foundation shall be to work collaboratively with government, civil society, and private institutions in partner countries and key jurisdictions of other countries with a high prevalence of modern slavery to identify and fund successful strategies to combat modern slavery. (c) Status of Foundation The End Modern Slavery Initiative Foundation shall not be an agency or establishment of the United States Government. (d) Status of board and officers and employees The members of the Board of Directors of the End Modern Slavery Initiative Foundation shall not, by reason of such membership, be officers or employees of the United States, and the officers or employees of the End Modern Slavery Initiative Foundation shall not be officers or employees of the United States. (e) Tax status eligibility The End Modern Slavery Initiative Foundation shall be eligible to be treated as an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 which is exempt from taxation under section 501(a) of such code and, if such treatment is conferred in accordance with the provisions of such code, shall be subject to all provisions of such code relevant to the conduct of organizations exempt from taxation. (f) Funding The End Modern Slavery Initiative Foundation shall seek to obtain a minimum of $1,500,000,000 in aggregate funding from foreign governments and private sector organizations and individuals over an initial seven year period, leveraging United States Government grants provided to the Foundation as seed funding and to complement the comprehensive foreign assistance programs of the United States Government. (g) Additional private sector funding plan The Board of Directors shall, not later than 180 days after the date of the enactment of this Act, submit to the appropriate congressional committees a plan to raise an additional $500,000,000 in commitments from private sector entities to fully fund the End Modern Slavery Initiative Foundation. (h) Authorization for the receipt of funds The End Modern Slavery Initiative Foundation may accept and utilize, consistent with the policies, priorities, and purposes of this Act, any gift, donation, bequest, or devise of real or personal property from any government or private sector individual or organization, including the provision of voluntary services or in-kind services or products. (i) Governance (1) Board of directors (A) In general The End Modern Slavery Initiative Foundation shall be overseen by a Board of Directors— (i) which shall include individuals with recognized relevant professional expertise and a survivor of modern slavery; and (ii) not more than 11 of whom will be voting members. (B) Non-voting advisory directors The voting directors of the Board may appoint, at their discretion, non-voting advisory directors, which may include a representative of the Secretary of State such as the Ambassador-at-Large and Director of the Office to Monitor and Combat Trafficking in Persons. (C) Decisions of the board of directors Decisions of the Board of Directors shall be made by a simple majority vote of voting directors present. (D) Responsibilities In addition to other specific responsibilities provided for in this Act, the voting directors of the Board of Directors shall— (i) oversee the monitoring and evaluation of the End Modern Slavery Initiative Foundation efforts and supported projects; and (ii) make prioritized program funding decisions. (E) Quorum of the board of directors In order to take official action, the Board shall require a quorum composed of a majority of its voting directors. (F) Additional responsibilities of the board of directors The Board of Directors shall— (i) by majority vote of voting directors delegate relevant authorities to the Chief Executive Officer appointed pursuant to paragraph (2)(A) concerning agreements made with governments or private sector individuals or organizations, programmatic and monitoring and evaluation strategies of the End Modern Slavery Initiative Foundation, and other matters related to the End Modern Slavery Initiative Foundation, consistent with the policies, priorities, and purposes of this Act; and (ii) reserve the right of review and approval of major agreements as appropriate. (G) Long-term strategy review, approval, and submission Not later than five years after the date of the enactment of this Act, the Board of Directors shall review, approve, and submit to governments, entities, or individuals providing funding to the End Modern Slavery Initiative Foundation, as well as the appropriate congressional committees, the strategy required to be developed pursuant to paragraph (2)(D). (2) Chief executive officer (A) In general The day-to-day operations of the End Modern Slavery Initiative Foundation shall be run by a Chief Executive Officer, who shall be a United States citizen and shall be employed at the exclusive discretion of the Board of Directors. (B) Authority of the chief executive officer The Chief Executive Officer of the End Modern Slavery Initiative Foundation shall be authorized to take all actions authorized by the Board of Directors, consistent with the policies, priorities, and purposes of this Act, including the hiring and termination of any employees of the End Modern Slavery Initiative Foundation. (C) Responsibilities of the chief executive officer The Chief Executive Officer shall be responsible for— (i) ensuring matching funding requirements pursuant to this Act are met; (ii) ensuring that foreign government and private sector funding commitments are fully realized; (iii) developing all necessary strategies and agreements for the End Modern Slavery Initiative Foundation; (iv) identifying funding requirements; (v) preparing and presenting to the Board of Directors for approval a portfolio of priority projects to be funded; (vi) administering the End Modern Slavery Initiative Foundation procurement processes; (vii) developing reliable baseline data and ensuring that such data and the process of obtaining such data are subject to outside, independent audits; (viii) developing and administering the monitoring and evaluation of funded programs; (ix) complying with all relevant auditing, accounting, taxation, and legal requirements; (x) preparing, publicly publishing, and submitting to each government, private individual, or corporation that has contributed funds an annual report of approximately 50 pages with appropriate annexes on the activities and results of the End Modern Slavery Initiative Foundation; (xi) ensuring the sharing, among appropriate governmental and nongovernmental partners and interested parties in the global anti-slavery community, of corporate and nonprofit best practices, including those developed or identified by the End Modern Slavery Initiative Foundation or others through its supported programs; (xii) working to encourage partner countries to hold accountable those who enslave children and adults in the sex trade; (xiii) working to develop best practices to help ensure that corporate supply chains do not involve the use of victims of modern slavery, including ending forced labor and addressing the role of abusive labor recruitment practices and fees; and (xiv) undertaking consultations, as the Chief Executive Officer deems necessary or is directed by the Board of Directors, with appropriate governmental and nongovernmental partners with respect to End Modern Slavery Initiative Foundation strategies, programs, and projects. (D) Long-term strategy development and consultations Not later than four years after the date of the enactment of this Act, the Chief Executive Officer, in consultation with the Board of Directors, shall initiate discussions with appropriate governmental and nongovernmental partners and begin development of a strategy that seeks to end modern slavery globally based on empirical evidence and best practices identified by the End Modern Slavery Initiative Foundation, including funding requirements to fully implement such a strategy. (j) Limitations and prohibitions (1) Issuance of stock and dividends The End Modern Slavery Initiative Foundation may not issue any shares of stock or declare or pay dividends. (2) Conflicts of interest (A) Assets No part of the assets of the End Modern Slavery Initiative Foundation shall inure to the benefit of any member of the Board of Directors, any officer or employee of the End Slavery Initiative Foundation, or any other individual, except as reasonable salary or compensation for services for officers and employees, reasonable reimbursement for expenses incurred in the course of such employment, or for other individuals, as specific beneficiaries of services provided pursuant to supported projects. (B) Relationship to grantees No voting director of the Board of Directors may be a member of the board of directors or an officer, employee, or consultant to, any grantee of the End Modern Slavery Initiative Foundation. (C) Compensation No director of the Board of Directors may receive compensation for service on the Board of Directors, other than reasonable reimbursement for expenses incurred in the course of such service. (3) Lobbying restriction Any Federal funds provided to the End Modern Slavery Initiative Foundation or any other nonprofit organization pursuant to the authorization of funding provided under this Act shall be subject to the restrictions and prohibitions of section 1352 of title 31, United States Code. (k) Recordkeeping, auditing, oversight, and reporting requirements (1) In general The End Modern Slavery Initiative Foundation shall be subject to the same auditing, recordkeeping, and reporting obligations as required pursuant to subsections (e), (f), (g), and (i) of section 504 of the National Endowment for Democracy Act ( 22 U.S.C. 4413 ). (2) Comptroller general audit authority (A) In general The Comptroller General of the United States may evaluate the financial transactions of the End Slavery Initiative Foundation as well as the programs or activities the End Slavery Initiative Foundation carries out pursuant to this Act. (B) Access to records The End Slavery Initiative Foundation shall provide the Comptroller General, or his duly authorized representatives, access to such records as the Comptroller General determines necessary to conduct evaluations authorized by this Act. (l) Rule of construction Nothing in this Act shall be construed to make the End Modern Slavery Initiative Foundation an agency or establishment of the United States Government or to make the members of the Board of Directors of the End Slavery Initiative Foundation, or the officers or employees of the End Slavery Initiative, officers or employees of the United States. 5. Authorization for grants to end modern slavery (a) Grant authorization The Secretary of State is authorized, subject to the availability of appropriations and on an annual basis, to make grants of funding for purposes of this Act in the amounts authorized in subsection (b) to the End Modern Slavery Initiative Foundation or other nonprofit organization that— (1) funds programs and projects in partner countries and key jurisdictions of other countries in order to seek to end modern slavery, including by funding programs and projects that— (A) contribute to the freeing and sustainable recovery of victims of modern slavery; (B) prevent individuals from being subject to modern slavery; or (C) enforce laws that punish both individuals and corporate entities that engage in modern slavery; and (2) seeks to receive foreign government contributions in a ratio of two-to-one and private sector contributions in a ratio of three-to-one to United States Government funding. (b) Authorization of appropriations for fiscal years 2015 through 2022 In addition to such sums as may otherwise be available for such purposes, there is authorized to be appropriated to the Department of State for the purpose of making the grants authorized under subsection (a)— (1) for fiscal year 2015, $1,000,000; and (2) for each fiscal year from 2016 through 2022, $35,714,285. (c) Conditions for united states government funding (1) Matching government funding Except as provided under paragraphs (4) and (5), funding provided pursuant to grants authorized under subsection (a) shall only be available for expenditure by the grantee during a fiscal year if matching funding equal to twice the total amount of such funding has been obtained from one or more other governments in such fiscal year. (2) Matching private sector funding Except as provided under paragraphs (4) and (5), funding provided pursuant to grants authorized under subsection (a) shall only be available for expenditure by the grantee during a fiscal year if matching funding equal to the total amount of such funding has been obtained from private sector entities in such fiscal year. (3) Limitation on administrative costs Funding provided pursuant to the grants authorized under subsection (a) shall only be available for expenditure by the grantee for a fiscal year in which the prior fiscal year administrative costs are no more than 10 percent of modified total direct costs or otherwise meet the administrative cost requirements of section 200.414 of title 2, Code of Federal Regulations. (4) Initial exemption (A) In general Notwithstanding the matching funding requirement in paragraphs (1) and (2), funding provided pursuant to grants authorized under subsection (a) shall be available for expenditure by a grantee in fiscal years 2015 and 2016. (B) Additional matching requirement To the extent that matching funding is not obtained in fiscal years 2015 or 2016, as generally required by paragraphs (1) and (2), the grantee must obtain such funding no later than September 30, 2018. (C) Limitation on funding No funding provided pursuant to grants authorized under subsection (a) shall be available for expenditure by the grantee during any fiscal year after 2018 until the requirement in subparagraph (B) is met. (5) Additional exemptions (A) In general If during any fiscal year the matching requirement described in paragraph (1) or (2) is not achieved, the Secretary of State may provide a one-year exemption from fulfillment of such requirement provided that— (i) a plan is in place to make up the funding shortfall during the next fiscal year and to meet the matching requirements in future years; (ii) the plan is submitted to the appropriate congressional committees; and (iii) the grantee has obtained matching funding, in the proportion required by such paragraphs, for the total amount of any prior year shortfalls. (B) Limitation on funding During an exemption provided pursuant to subparagraph (A), funding provided pursuant to grants authorized under subsection (a) shall only be available for expenditure by the grantee during a fiscal year in an amount that is equal in proportion to the proportion of matching funds secured in accordance with paragraphs (1) and (2). (C) Limited quantity The Secretary of State may provide no more than a total of two exemptions pursuant to subparagraph (A) during fiscal years 2017 through 2022. (6) Availability of additional funds In fiscal years in which the grantee obtains matching funding to address a shortfall of funding required by paragraph (1) or (2) from a prior year, the funds previously restricted as a result of such shortfall shall be available for expenditure by the grantee in such later fiscal year in an amount that is equal in proportion, pursuant to such paragraphs, to the amount obtained. (7) Funding additional to existing authorizations Amounts authorized by this section are in addition to funds otherwise authorized to be appropriated for combatting trafficking in persons, forced labor, or related programs. (d) Duration of funding Funds appropriated pursuant to subsection (b) shall remain available until expended subject to the conditions on such funds described in subsection (c). (e) Implementation of policies, priorities, and purposes No funds received pursuant to the provisions of this section may be obligated or expended by the Secretary of State or the End Modern Slavery Initiative Foundation or other nonprofit organization except to the extent that such obligation and expenditure is consistent with the policies, priorities, and purposes of this Act. 6. Additional support from member governments (a) In general The United States Government shall seek, and shall encourage other foreign governments providing support to the End Modern Slavery Initiative Foundation, consistent with the individual priorities and policies of such governments, to provide additional support for projects in partner countries and key jurisdictions of other countries supported by the End Modern Slavery Initiative Foundation through the commitment of new resources, or the redirection of existing resources, including funding and personnel as appropriate, to efforts that are consistent with the policies, priorities, and purposes of this Act, including the provision of economic, development, law enforcement, rule of law, and training assistance that is aimed, among other things, at strengthening government institutions and providing appropriate services to victims of modern slavery. (b) Diplomatic efforts The United States Government shall also seek, and shall encourage other foreign governments providing support to the End Modern Slavery Initiative Foundation, consistent with the individual priorities and policies of such governments, to undertake diplomatic efforts in partner countries and key jurisdictions of other countries with a high prevalence of modern slavery that support the policies, priorities, and purposes of this Act and End Modern Slavery Initiative supported projects. (c) Prioritization of additional efforts The United States Government shall also seek, and shall encourage other foreign governments providing support to the End Modern Slavery Initiative Foundation, consistent with the individual priorities and policies of such governments, to undertake efforts to support partner countries and key jurisdictions of other countries in their efforts to address the areas of key concern highlighted by the Department of State’s annual Trafficking in Persons Report. 7. Priorities and policies of the end modern slavery initiative (a) In general The key priorities of the End Modern Slavery Initiative shall be— (1) to select partner countries and key jurisdictions in other countries; (2) to provide support for programs and projects that collectively or individually seek to achieve a measurable and sustainable reduction of modern slavery in targeted populations within partner countries (or jurisdictions thereof) and key jurisdictions of other countries of at least 50 percent in the prevalence of modern slavery over a seven year period and that are based on goals and outcomes that are capable of being empirically measured; (3) to prioritize programs and projects consistent with this Act; (4) to work with partner countries and entities funded by the End Modern Slavery Initiative to collaboratively establish budgeted national plans that identify and leverage partner country public and private funding and institutions, and leverage current and expected outside assistance, including programs supported by the End Modern Slavery Initiative Foundation; and (5) to establish national coordinators and leadership councils in partner countries. (b) Selection of partner countries In selecting partner countries, the End Modern Slavery Initiative shall consider and prioritize the funding of projects and programs in countries and jurisdictions where there is— (1) a documented high prevalence of modern slavery within the country as evidenced by assessments in the Department of State’s annual Trafficking in Persons Report; and (2) (A) a demonstrated political motivation and sustained commitment by government entities of such country to undertake meaningful measures to address severe forms of trafficking in persons, including prevention, protection of victims, and the enactment and enforcement of anti-trafficking laws against perpetrators; or (B) a demonstrated presence of an active and independent civil society that can and will support the efforts of the End Modern Slavery Initiative. (c) Selection of key jurisdictions of other countries In selecting key jurisdictions of other countries, the End Modern Slavery Initiative shall consider and prioritize the funding of projects and programs in key jurisdictions where there is— (1) a documented high prevalence of modern slavery within the jurisdiction as evidenced by assessments in the Department of State’s annual Trafficking in Persons Report; and (2) (A) a demonstrated political motivation and sustained commitment by government entities of such jurisdiction to undertake meaningful measures to address severe forms of trafficking in persons, including prevention, protection of victims, and the enactment and enforcement of anti-trafficking laws against perpetrators; or (B) a demonstrated presence of an active and independent civil society that can and will support the efforts of the End Modern Slavery Initiative. (d) Policies for end modern slavery initiative operations and supported programs in partner countries End Modern Slavery Initiative programs in partner programs shall include strategies that— (1) develop the capacity of national and local government institutions to enforce the law, end impunity of perpetrators, and sustainably deter the crime; (2) contribute to the freeing and sustainable recovery of victims of modern slavery, prevent individuals from being subject to modern slavery, or create and enforce laws that punish both individual and corporate perpetrators of modern slavery; and (3) set out clear, defined goals and outcomes that are capable of empirical measurement against baseline data. (e) Consultation with State department In selecting partner countries and key jurisdictions of other countries and funding programs in such countries and jurisdictions, the End Modern Slavery Initiative should consult with the Department of State, including the Office to Monitor and Combat Trafficking in Persons. (f) Interagency consultation In providing the views of the United States Government to the End Modern Slavery Initiative pursuant to subsection (e), the Department of State, including the Office to Monitor and Combat Trafficking in Persons, should consult with the United States Department of Justice, the United States Agency for International Development, the United States Department of Labor, and any other appropriate Federal departments and agencies. 8. Monitoring and evaluation of supported programs (a) In general The Board of Directors shall review, on a no less than annual basis, specific and detailed criteria for the monitoring and evaluation of End Modern Slavery Initiative supported projects. (b) Requirements for criteria The criteria required to be established pursuant to subsection (a) shall be designed to measure progress against baseline data and shall be rigorously designed based on international corporate and nongovernmental best practices. (c) Supported project requirements Each supported project shall be regularly and rigorously monitored and evaluated, on a not less than biennial basis, by an independent monitoring and evaluation entity, against the specific and detailed criteria established pursuant to subsection (a), and shall have its progress towards its stated goals measured by such entity against baseline data. (d) Survey methodology The End Modern Slavery Initiative shall support the development of a scientifically sound, representative survey methodology for measuring prevalence with reference to existing research and experience and shall apply the methodology consistently to determine the baseline prevalence in target populations and outcomes in order to periodically assess progress in reducing prevalence. (e) Suspension and termination of supported projects The Board of Directors shall establish, and revise on a no less than annual basis, specific and detailed criteria for the suspension and termination, as appropriate, of projects supported by the End Modern Slavery Initiative Foundation that regularly or consistently fail to meet the criteria required by this section. 9. Definitions In this Act: (1) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committees on Foreign Relations and Appropriations of the Senate; and (B) the Committees on Foreign Affairs and Appropriations of the House of Representatives. (2) Key jurisdictions of other countries The term key jurisdictions of other countries means specific jurisdictions, located in countries that do not qualify to be partner countries, that have a demonstrated commitment to, and institutions capable of, achieving a significant reduction in the incidence of modern slavery within a period of seven years and have been determined to be appropriate to receive funds by the Board of Directors pursuant to the criteria and priorities set forth in this Act. (3) Modern slavery The term modern slavery means— (A) the recruitment, harboring, transportation, provision, or obtaining of a person for the purpose of a commercial sex act in which such commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or (B) the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. (4) Partner countries The term partner countries means countries that have a demonstrated commitment to, and institutions capable of, achieving a significant reduction in the incidence of modern slavery within a period of seven years and have been determined to be appropriate to receive funds by the Board of Directors pursuant to the criteria and priorities set forth in this Act. (5) Terms defined in title 18, United States Code Terms defined in title 18, United States Code, and not otherwise defined in this section shall have the meaning provided in such title.