[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4596 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4596

  To require nationals of the United States that employ more than 20 
 persons in a foreign country to implement a Corporate Code of Conduct 
    with respect to the employment of those persons, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 7, 2000

 Ms. McKinney (for herself, Mr. Sanders, Mr. Kucinich, Mr. Jackson of 
 Illinois, Mr. Wynn, Ms. Carson, Mrs. Meek of Florida, Mr. Stark, Mr. 
  Evans, Mrs. Mink of Hawaii, Mr. Owens, Mr. DeFazio, Mr. Filner, Mr. 
    Payne, and Mr. Nadler) introduced the following bill; which was 
 referred to the Committee on International Relations, and in addition 
   to the Committees on Government Reform, and Banking and Financial 
Services, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction on the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To require nationals of the United States that employ more than 20 
 persons in a foreign country to implement a Corporate Code of Conduct 
    with respect to the employment of those persons, 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 ``Corporate Code of Conduct Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) On January 31, 1999, at the World Economic Forum, 
        United Nations Secretary General Kofi Annan challenged world 
        business leaders, in their individual corporate practices and 
        by supporting appropriate public policies, to ``embrace and 
        enact'' the Global Compact, an agreement that asks corporations 
        to protect human rights, labor rights, and the environment.
            (2)(A) On November 16, 1999, the Program on International 
        Policy Attitudes (PIPA) issued a report that contained the 
        results of a poll of 1,826 randomly selected adults, weighted 
        to be demographically representative, conducted from October 
        21-29, 1999, relating to international agreements on 
        environmental and labor standards.
            (B) In the poll, 93 percent of the respondents stated that 
        ``countries that are part of international trade agreements 
        should be required to maintain minimum standards for working 
        conditions'', 77 percent of the respondents believed (of which, 
        48 percent strongly believed) that there should be more 
        international agreements on environmental standards, and 88 
        percent of the respondents agreed (of which, 67 percent 
        strongly agreed) that ``American companies that operate in 
        other countries should be expected to abide by [United States] 
        environmental standards.''.
            (3) The European Parliament has passed a European Code of 
        Conduct calling for European businesses to abide by European 
        Union laws in operations outside of Europe.
            (4) The recent protests against the World Trade 
        Organization (WTO) in Seattle, Washington, and the World Bank 
        and International Monetary Fund (IMF) in Washington, D.C., 
        demonstrate a growing constituency against the unregulated 
        expansion of globalization.
            (5) Unfortunately, too many United States businesses with 
        operations abroad are notorious for their blatant disregard for 
        the well being of the citizens of their host nations who are 
        employees of the businesses.
            (6) Many United States businesses recklessly pollute the 
        local environment of foreign countries, pose serious health 
        risks to local citizens, and threaten the cultural heritage of 
        local citizens.
            (7) 70 percent of workers in United States production 
        factories abroad are women. Many of these women face mandatory 
        pregnancy testing on a monthly basis and are forced to take 
        birth control provided by their employer.
            (8) Public confidence has declined substantially in the 
        capacity and effectiveness of government at all levels to 
        counteract unfair economic competition and to command greater 
        corporate responsibility inside and outside of the marketplace.
            (9) At the same time, public concern is growing regarding 
        the increasing concentration of unaccountable corporate power 
        and the declining corporate responsibility across national 
        borders.
            (10) Yet every year the United States Government provides a 
        wide array of taxpayer-financed services and financial 
        subsidies as well as special tax breaks as assistance to United 
        States-based multinational corporations, especially to enable 
        such corporations to invest overseas, to create jobs in foreign 
        countries, and to expand their access to foreign markets.

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, affiliates, joint ventures, partners, or 
licensees (including any security forces of the national), shall take 
the necessary 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, gender, national origin, or 
        religious beliefs, respect for freedom of association and the 
        right to organize independently and bargain collectively, and 
        the payment 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 employees 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 discrimination 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 alleged violation of any provision of this subsection.
            (3) Promote good governance and good business practices, 
        including prohibiting illicit payments, ensuring 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 levels, a 
        corporate culture that respects free expression consistent with 
        legitimate business concerns, does not condone political 
        coercion in the workplace, encourages good corporate 
        citizenship and makes a positive contribution to the 
        communities in which the national of the United States 
        operates, and promotes 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 standards 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, partners, 
        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, corporate name, 
        applicable financial agreements, worker rights practices and 
        labor standards, working conditions, environmental performance, 
        and applicable investments of partners, suppliers, 
        subsidiaries, contractors, 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 conduct 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 appropriately 
                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 violations from occurring;
                    (F) procedures for providing educational and 
                employment-related counseling to any employee 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 
                        participate in a training program; or
                            (ii) by disseminating information in 
                        writing that explains the standards and 
                        procedures.
    (c) Definitions.--In this section:
            (1) Basic needs of an average-size family.--The term 
        ``basic needs of an average-size family''--
                    (A) means nutritious food, clothing, health care, 
                education, potable water, child care, transportation, 
                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 environmental standards.--
        The term ``internationally recognized environmental standards'' 
        includes standards relating to--
                    (A) mitigation of global climate change;
                    (B) reduction in the consumption and production 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 dumping 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 
        Declaration of Human Rights, the International Covenant on 
        Civil and Political Rights, the Convention Against Torture and 
        Other Cruel, Inhuman or Degrading Treatment or Punishment, the 
        Convention on the Prevention and Punishment of the Crime of 
        Genocide, the Slavery Convention, the Supplementary 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 Bargaining 
                Convention (No. 98).
                    (C) Forced Labour Convention (No. 29).
                    (D) Abolition of Forced Labour Convention (No. 
                105).
                    (E) Discrimination (Employment and Occupation) 
                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 PROVISION OF CERTAIN 
              FOREIGN TRADE AND INVESTMENT 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 
                Competitiveness 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 containing standards with 
                respect to the preference required by this paragraph.
            (2) Overseas private investment corporation.--
                    (A) In general.--In providing financing and issuing 
                investment insurance, reinsurance, and guaranties to 
                entities described in subsection (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 Directors of the 
                Overseas Private Investment Corporations shall 
                promulgate regulations containing 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 section 661 
                of the Foreign Assistance Act of 1961 (22 U.S.C. 
                2421(b)), the Trade and Development Agency shall give 
                preference to entities that have adopted the Corporate 
                Code of Conduct set forth in section 3(b).
                    (B) Regulations.--The Director of the Trade and 
                Development Agency shall promulgate regulations 
                containing standards with respect to the preference 
                required by this paragraph.
            (4) Export-import bank of the united states.--
                    (A) In general.--In providing guarantees, 
                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 Conduct set forth in 
                section 3(b).
                    (B) Regulations.--The Board of Directors of the 
                Export-Import Bank shall promulgate regulations 
                containing standards with respect to the preference 
                required by this paragraph.
    (c) Entities Described.--The entities described in this subsection 
are nationals of the United States that employ more than 20 persons in 
a foreign country, either directly or through subsidiaries, 
subcontractors, affiliates, joint ventures, partners, or licensees 
(including any security forces of the national).

SEC. 5. INVESTIGATIONS OF COMPLIANCE WITH CORPORATE CODE OF CONDUCT.

    (a) Definition.--In this section, the term ``appropriate Federal 
official'' means the Secretary of Commerce, the Secretary of Labor, the 
Secretary of State, or the Administrator 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 request. 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 received a 
                preference under section 4 in the award of a contract 
                or in the provision of assistance;
                    (B) the withdrawal, suspension, or limitation of 
                the eligibility of an entity for a preference under 
                section 6; or
                    (C) action under both subparagraphs (A) and (B).
            (2) Review; determination to initiate investigation.--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 dismissed 
        under paragraph (3).
            (3) Determination not to initiate investigation.--
                    (A) In general.--The appropriate Federal official 
                may determine not to initiate an investigation 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 allegations were made in a previously reviewed 
                petition 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 indicating 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 petitions to be considered.
            (5) Investigations.--
                    (A) In general.--In initiating an investigation of 
                a petition under this subsection, the appropriate 
                Federal official shall publish a summary 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 
                information 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 noncompliance.--With respect 
                to any petition alleging noncompliance, the appropriate 
                Federal official shall determine whether such 
                violations have occurred or are occurring. Such 
                official in the preceding sentence shall provide 
                written recommendations regarding the disposition of 
                the allegations that shall be entered in the record of 
                the investigation. The appropriate Federal official, 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 investigation, and 
        in no event later than 270 days after the date on which the 
        petition was filed, the appropriate Federal official shall 
        issue a decision whether to grant the relief requested in the 
        petition. The decision 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 relevant 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 determines that an investigation 
should be initiated with respect 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 Secretary of Commerce shall 
promulgate regulations to implement this section. The regulations may 
include--
            (1) procedures for the creation of special committees under 
        subsection (b)(4);
            (2) coordinating investigations with other agencies;
            (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 initiated under section 5 and 
notwithstanding any other provision 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 contract 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 Secretary shall terminate foreign trade and investment 
assistance from the United States Government (as described in section 
4(b)) provided to an entity described 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 Administrator of the Environmental Protection Agency an 
annual report, which shall be made available to the public, that 
contains a description of the monitoring program established 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 Commerce, the Secretary 
of Labor, the Secretary of State, and the Administrator of the 
Environmental Protection Agency 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 annual 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 (including a compilation of the petitions submitted to the 
appropriate 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 heirs, estate, or 
        other legal representative of the individual.
                                 <all>