[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5635 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5635
To amend the Tariff Act of 1930 to prohibit the import, export, and
sale of goods made with sweatshop labor, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 16, 2006
Mr. Brown of Ohio (for himself, Mr. Ryan of Ohio, Mr. Strickland, Ms.
Kaptur, and Mrs. Jones of Ohio) introduced the following bill; which
was referred to the Committee on Ways and Means, and in addition to the
Committees on Armed Services, Government Reform, Rules, Energy and
Commerce, and International Relations, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Tariff Act of 1930 to prohibit the import, export, and
sale of goods made with sweatshop labor, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Decent Working Conditions and Fair
Competition Act''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress makes the following findings:
(1) The violation of core labor standards, as defined under
the laws of the United States and the International Labor
Organization, is widespread in factories that produce goods for
sale in the United States.
(2) Factories that violate core labor standards are
commonly referred to as sweatshops.
(3) Subjecting factory workers to sweatshop conditions that
violate core labor standards is morally offensive to the
American people both in their roles as consumers and as
investors, and is degrading to workers forced to labor under
these conditions.
(4) Workers have a right to be free of sweatshop working
conditions.
(5) Consumers have a right to know that the goods they
purchase are not produced in sweatshops.
(6) Businesses have a right to be free from competition
with companies that use sweatshop labor.
(7) Shareholders have a right to know that their
investments are not supporting sweatshop labor.
(8) It is a deceptive trade practice and a form of unfair
competition for a business to sell sweatshop goods.
(9) Prohibiting the sale, manufacture, offer for sale,
transportation, and distribution of sweatshop goods, regardless
of the source of the goods, is consistent with the
international obligations of the United States because the
prohibition applies equally to domestic and foreign products
and avoids any discrimination among foreign sources of
competing products.
(b) Purposes.--The purposes of this Act are to--
(1) prohibit the import, export, or sale of goods made in
factories or workshops that violate core labor standards; and
(2) prohibit the procurement of sweatshop goods by the
United States Government.
SEC. 3. DEFINITION OF CORE LABOR STANDARDS.
(a) In General.--In this Act, the term ``core labor standards'',
means--
(1) the right of association;
(2) the right to organize and bargain collectively;
(3) a prohibition on the use of any form of forced or
compulsory labor;
(4) a minimum age for the employment of children; and
(5) acceptable conditions of work with respect to minimum
wages, hours of work, and occupational safety and health.
(b) Acceptable Conditions.--For purposes of subsection (a)(5),
acceptable conditions of work shall be determined by the laws,
regulations, or competent authority of the country where the labor is
performed.
TITLE I--TARIFF ACT OF 1930
SEC. 101. IMPORTATION AND SALE OF SWEATSHOP GOODS PROHIBITED.
Section 307 of the Tariff Act of 1930 (19 U.S.C. 1307) is amended
to read as follows:
``SEC. 307. PROHIBITION OF IMPORT AND SALE OF CONVICT-MADE GOODS AND
SWEATSHOP GOODS.
``(a) Definitions.--In this section:
``(1) Convict-made good.--The term `convict-made good'
means any good, ware, article, or merchandise mined, produced,
or manufactured wholly or in part in any foreign country by
convict labor.
``(2) Sweatshop good.--The term `sweatshop good' means any
good, ware, article, or merchandise mined, produced, or
manufactured wholly or in part in violation of core labor
standards as defined in section 3 of the Decent Working
Conditions and Fair Competition Act.
``(b) Prohibitions.--It is unlawful for any person to--
``(1) import into the United States any convict-made good;
``(2) import into, or export from, the United States any
sweatshop good;
``(3) introduce into commerce, sell, trade, or advertise in
commerce, offer to sell, or transport or distribute in commerce
in the United States, any sweatshop good.''.
SEC. 102. WAIVER AUTHORITY.
(a) In General.--The President, for reasons of national interest,
may recommend that the application of section 201 of this Act or
section 307(b) (2) and (3) of the Tariff Act of 1930 be waived in
connection with the goods of any country with respect to 1 or more of
the principles and rights defined as a core labor standard in section 3
of this Act. Any such recommendation shall--
(1) be transmitted to the House of Representatives and the
Senate setting forth the President's reasons for the waiver;
(2) include, for each waiver recommendation, a
determination that the waiver is necessary to protect the
national interest of the United States; and
(3) include, for each principle or right for which a waiver
is recommended, an explanation of why the President recommends
waiving application of that principle or right.
(b) Period of Waiver.--A waiver under this section shall be
effective for a 12-month period unless Congress enacts a joint
resolution described in subsection (c).
(c) Joint Resolution Requirements and Procedures.--
(1) Resolution described.--For purposes of this subsection,
the term ``resolution'' means only a joint resolution of the
two Houses of Congress, the matter after the resolving clause
of which is as follows: ``That the Congress does not approve
the waiver of section 201 of the Decent Working Conditions and
Fair Competition Act or section 307(b) (2) and (3) of the
Tariff Act of 1930 (19 U.S.C. 1307) recommended by the
President to the Congress on _______ with respect to the
application of _______ to the goods of_______.'', with the
first blank space being filled with the appropriate date, the
second blank space being filled with the principle or right to
be waived, and the third blank space being filled with the name
of the country, if any, with respect to which the waiver of
authority is disapproved.
(2) Application of procedural provisions.--The provisions
of section 152 (b) through (f) of the Trade Act of 1974 (19
U.S.C. 2192 (b) through (f)) shall apply to resolutions
described in paragraph (1).
(3) Approval by congress.--If Congress approves a joint
resolution, Congress shall send the resolution to the President
before the end of the 90-day period beginning on the date that
Congress receives the waiver described in subsection (a).
(4) Effect of veto.--If the President vetoes the joint
resolution, the resolution is enacted into law if each House of
Congress votes to override the veto on or before the later of
the last day of the 90-day period referred to in paragraph (3)
or the last day of the 15-day period, excluding any day
described in section 154(b) of the Trade Act of 1974 (19 U.S.C.
2194(b)), beginning on the date the Congress receives the veto
message from the President.
(5) Introduction.--A joint resolution to which this
subsection applies may be introduced at any time on or after
the date the President transmits to Congress the waiver
described in subsection (a).
(d) Termination or Extension of Waiver.--A waiver with respect to
the goods of any country terminates on the day after the waiver
authority granted by this subsection ceases to be effective with
respect to such country, unless an extension of the waiver authority is
granted. The President may recommend an extension of the waiver
authority in the same manner as the original recommendation, except
that the President may not recommend an extension later than the date
that is 30 days before the waiver authority expires. The President may,
at any time, terminate by Executive order any waiver under this
section.
TITLE II--FEDERAL TRADE COMMISSION
SEC. 201. VIOLATION OF FEDERAL TRADE COMMISSION ACT.
(a) In General.--It is unlawful for any person to introduce into
commerce, sell, trade, or advertise in commerce, offer to sell or
transport or distribute in commerce any sweatshop good.
(b) Sweatshop Good.--For purposes of this title, the term
``sweatshop good'' means any good, ware, article, or merchandise mined,
produced, or manufactured wholly or in part in violation of core labor
standards, listed in section 3 of this Act.
(c) Enforcement.--
(1) In general.--The Federal Trade Commission shall enforce
the provisions of this section with respect to the prohibitions
under subsection (a) as if the violation were an unfair or
deceptive act or practice proscribed under section 18(a)(1)(B)
of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(2) Actions by the commission.--The Commission shall
prevent any person from violating this Act in the same manner,
by the same means, and with the same jurisdiction, powers, and
duties as though all applicable terms and provisions of the
Federal Trade Commission Act (15 U.S.C. 41 et seq.) were
incorporated into and made a part of this title. Any person
that violates the provisions of this title shall be subject to
the penalties and entitled to the privileges and immunities
provided in said Federal Trade Commission Act in the same
manner, by the same means, and with the same jurisdiction,
power, and duties as though all applicable terms and provisions
of the Federal Trade Commission Act were incorporated into and
made a part of this title.
(3) Investigations.--Notwithstanding any other provision of
law, the Federal Trade Commission shall investigate any
complaint received from a worker alleging a violation of this
title with respect to a good, ware, article, or merchandise
produced by that worker.
(4) Regulations.--Not later than 6 months after the date of
the enactment of this Act, the Federal Trade Commission shall
publish rules to carry out the provisions of this title.
SEC. 202. PRIVATE RIGHT OF ACTION.
(a) Private Suits.--A person with standing to sue under subsection
(c) may bring a civil action against any seller of goods, wares,
articles, or merchandise on grounds of violation of section 201.
(b) Jurisdiction.--The United States district courts shall have
jurisdiction, without regard to the amount in controversy or the
citizenship of the parties, to enforce this section.
(c) Standing to Sue.--The followings persons have standing to sue
under this section:
(1) Competitors of the retailer of any good, ware, article,
or merchandise sold in violation of section 201.
(2) Investors of the retailer of any good, ware, article,
or merchandise sold in violation of section 201.
(d) Damages; Injunctive Relief; Attorney Costs and Fees.--
(1) When a violation of section 201 is established in any
civil action arising under this section, the plaintiff shall be
entitled to recover $10,000 per violation or the fair market
value of the goods, whichever is greater. The court may
increase the award of damages if the court finds that the
defendant willfully or knowingly violated section 201.
(2) The plaintiff may sue for injunctive relief against
threatened loss or damage due to a violation of section 201.
(3) The court shall award the cost of the suit, including a
reasonable attorney's fee, to a prevailing plaintiff.
(e) Interagency Cooperation.--All Federal departments and agencies
shall cooperate with the Commissioner of Customs and the Federal Trade
Commission, to the extent practicable in the enforcement of this title.
(f) List of Violators; Disclosure and Publication by Federal Trade
Commission.--On January 1 and July 1 of each year, the Federal Trade
Commission shall publish in the Federal Register and post on an
Internet website the following information:
(1) An alphabetical list of the name, address, and chief
executive officer of each person that has, during the 2 years
prior to publication, violated the provisions of this title,
along with a summary description of each violation and the
cumulative number of violations by each person on the list.
(2) A detailed description of each violation that includes
the following information:
(A) The name, address, and chief executive officer
of each violator.
(B) The circumstances under which core labor
standards, as defined in section 3 of this Act were
violated in the course of the mining, production, or
manufacturing of the goods in question.
TITLE III--GOVERNMENT PROCUREMENT
SEC. 301. GOVERNMENT PROCUREMENT OF SWEATSHOP GOODS PROHIBITED.
(a) Amendment to Federal Property and Administrative Services Act
of 1949.--Title III of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 251 et seq.) is amended by adding at the end the
following new section:
``SEC. 318. PROHIBITION ON PROCUREMENT OF SWEATSHOP GOODS.
``(a) Certification Requirement.--The head of an executive agency
shall ensure that each covered contract entered into by such official
for the procurement of property includes a clause that requires the
contractor--
``(1) to certify to the contracting officer that the
contractor has made a good faith effort to determine whether
any product furnished under the contract is a sweatshop good,
and that, on the basis of those efforts, the contractor is
unaware that any such product is a sweatshop good; and
``(2) to cooperate fully in providing reasonable access to
the contractor's records, persons, or premises if requested by
the contracting agency, the Directorate of Border and
Transportation Security of the Department of Homeland Security,
or the Department of Justice for the purpose of determining
whether any product furnished under the contract is a sweatshop
good.
``(b) Investigations.--Whenever a contracting officer of an
executive agency has reason to believe that a product furnished under a
covered contract is a sweatshop good, the head of the executive agency
shall refer the matter for investigation to the Inspector General of
the executive agency and, as the head of the executive agency or the
Inspector General determines appropriate, to the Attorney General and
the Under Secretary for Border and Transportation Security.
``(c) Remedies.--
``(1) In general.--The head of an executive agency may
impose remedies as provided in this subsection if the head of
the executive agency finds that the contractor--
``(A) has furnished under a covered contract a
product that is a sweatshop good;
``(B) has submitted a false certification under
subsection (a)(1); or
``(C) has failed to cooperate with an investigation
under this section.
``(2) Termination of contract.--The head of an executive
agency may terminate a covered contract on the basis of a
finding of a violation that occurs under paragraph (1) after
the date the requirements of this section are implemented
through the amendment of the Federal Acquisition Regulation
under sections 6 and 25 of the Office of Federal Procurement
Policy Act (41 U.S.C. 405 and 421).
``(3) Debarment and suspension.--The head of an executive
agency may debar or suspend a contractor from eligibility for
Federal contracts on the basis of a finding that the contractor
has committed a violation described in paragraph (1). The
debarment period may not exceed 3 years.
``(4) Inclusion on list of parties excluded from federal
procurement and nonprocurement programs.--The Administrator of
General Services shall include on the List of Parties Excluded
from Federal Procurement and Nonprocurement Programs maintained
by the Administrator under part 9 of the Federal Acquisition
Regulation each contractor that is debarred, suspended,
proposed for debarment or suspension, or declared ineligible by
the head of an executive agency on the basis that the
contractor has committed a violation under paragraph (1).
``(5) Remedies not exclusive.--This section shall not be
construed to limit the use of other remedies available to the
head of an executive agency or any other official of the
Federal Government on the basis of a finding under paragraph
(1).
``(d) Definitions.--In this section:
``(1) Covered contract.--The term `covered contract' means
a contract for a total amount in excess of the micro-purchase
threshold, as that term is defined in section 32(f) of the
Office of Federal Procurement Policy Act (41 U.S.C. 428(f)).
``(2) Sweatshop good.--The term `sweatshop good' means all
goods, wares, articles, and merchandise mined, produced, or
manufactured wholly or in part in violation of core labor
standards, as defined in section 3 of the Decent Working
Conditions and Fair Competition Act.''.
(b) Amendment to Title 10, United States Code.--
(1) In general.--Chapter 137 of title 10, United States
Code, is amended by adding at the end the following new
section:
``Sec. 2333. Prohibition on procurement of sweatshop goods
``(a) Certification Requirement.--The head of an agency shall
ensure that each covered contract entered into by such official for the
procurement of property includes a clause that requires the
contractor--
``(1) to certify to the contracting officer that the
contractor has made a good faith effort to determine whether
any product furnished under the contract is a sweatshop good,
and that, on the basis of those efforts, the contractor is
unaware that any such product is a sweatshop good; and
``(2) to cooperate fully in providing reasonable access to
the contractor's records, persons, or premises if requested by
the contracting agency, the Directorate of Border and
Transportation Security of the Department of Homeland Security,
or the Department of Justice for the purpose of determining
whether any product furnished under the contract is a sweatshop
good.
``(b) Investigations.--Whenever a contracting officer of an agency
has reason to believe that a product furnished under a covered contract
is a sweatshop good, the head of the agency shall refer the matter for
investigation to the Inspector General of the agency and, as the head
of the agency or the Inspector General determines appropriate, to the
Attorney General and the Under Secretary for Border and Transportation
Security.
``(c) Remedies.--(1) The head of an agency may impose remedies as
provided in this subsection if the head of the agency finds that the
contractor--
``(A) has furnished under a covered contract a product that
is a sweatshop good;
``(B) has submitted a false certification under subsection
(a)(1); or
``(C) has failed to cooperate with an investigation under
subsection (b).
``(2) The head of an agency may terminate a covered contract on the
basis of a finding of a violation that occurs under paragraph (1) after
the date the requirements of this section are implemented through the
amendment of the Federal Acquisition Regulation under sections 6 and 25
of the Office of Federal Procurement Policy Act (41 U.S.C. 405 and
421).
``(3) The head of an agency may debar or suspend a contractor from
eligibility for Federal contracts on the basis of a finding that the
contractor has committed a violation described in paragraph (1). The
debarment period may not exceed 3 years.
``(4) The Administrator of General Services shall include on the
List of Parties Excluded from Federal Procurement and Nonprocurement
Programs maintained by the Administrator under part 9 of the Federal
Acquisition Regulation each contractor that is debarred, suspended,
proposed for debarment or suspension, or declared ineligible by the
head of an agency on the basis that the contractor has committed a
violation under paragraph (1).
``(5) This section shall not be construed to limit the use of other
remedies available to the head of an agency or any other official of
the Federal Government on the basis of a finding under paragraph (1).
``(d) Definitions.--In this section:
``(1) The term `covered contract' means a contract for a
total amount in excess of the micro-purchase threshold, as that
term is defined in section 32(f) of the Office of Federal
Procurement Policy Act (41 U.S.C. 428(f)).
``(2) The term `sweatshop good' means all goods, wares,
articles, and merchandise mined, produced, or manufactured
wholly or in part in violation of core labor standards, as
defined in section 3 of the Decent Working Conditions and Fair
Competition Act.''.
(2) Clerical amendment.--The table of contents at the
beginning of such chapter is amended by adding at the end the
following new item:
``2333. Prohibition on procurement of sweatshop goods.''.
(c) Implementation Through the Federal Acquisition Regulation.--Not
later than 120 days after the date of the enactment of this Act, the
Federal Acquisition Regulatory Council shall amend the Federal
Acquisition Regulation issued under sections 6 and 25 of the Office of
Federal Procurement Policy Act (41 U.S.C. 405 and 421) to provide for
the implementation of the requirements of section 318 of the Federal
Property of Administrative Services Act of 1949 and section 2333 of
title 10, United States Code, as added by subsections (a) and (b),
respectively.
(d) Report.--Not later than 2 years after the requirements of this
section and of section 318 of the Federal Property of Administrative
Services Act of 1949 and section 2333 of title 10, United States Code,
as added by subsections (a) and (b), respectively, are implemented
through the amendment of the Federal Acquisition Regulation pursuant to
subsection (c), the Administrator of General Services, with the
assistance of other executive agencies, shall submit to the Office of
Management and Budget a report on the actions taken under such
sections.
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