[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5930 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 519
116th CONGRESS
  2d Session
                                H. R. 5930

                          [Report No. 116-634]

  To amend the Securities Exchange Act of 1934 to require issuers to 
disclose information about human capital management in annual reports, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 21, 2020

  Mrs. Axne introduced the following bill; which was referred to the 
                    Committee on Financial Services

                            December 8, 2020

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           February 21, 2020]


_______________________________________________________________________

                                 A BILL


 
  To amend the Securities Exchange Act of 1934 to require issuers to 
disclose information about human capital management in annual reports, 
                        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 ``Workforce Investment Disclosure Act 
of 2020''.

SEC. 2. DISCLOSURES RELATED TO HUMAN CAPITAL MANAGEMENT.

    Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) 
is amended by adding at the end the following:
    ``(s) Disclosures Related to Human Capital Management.--
            ``(1) In general.--Each issuer required to file an annual 
        report under subsection (a) shall disclose in that report 
        information about human capital management policies, practices, 
        and performance.
            ``(2) Rules.--Not later than 270 days after the date of the 
        enactment of this subsection, the Commission shall issue final 
        rules to carry out paragraph (1) and such rules shall require 
        disclosure of the following with respect to the issuer:
                    ``(A) Workforce demographic information, including 
                the number of full-time employees, the number of part-
                time employees, the number of contingent workers 
                (including temporary and contract workers), and any 
                policies or practices relating to subcontracting, 
                outsourcing, and insourcing.
                    ``(B) Workforce stability information, including 
                information about the voluntary turnover or retention 
                rate, the involuntary turnover rate, the internal 
                hiring rate, and the internal promotion rate (and with 
                such internal promotion rate disaggregated by the 
                workforce composition described under subparagraph 
                (C)).
                    ``(C) Workforce composition, including data on 
                diversity (including racial, gender, and ethnic 
                composition) and any policies and audits related to 
                diversity.
                    ``(D) Workforce skills and capabilities, including 
                information about training of employees (including the 
                average number of hours of training and spending on 
                training per employee per year), skills gaps, and 
                alignment of skills and capabilities with business 
                strategy.
                    ``(E) Workforce culture and empowerment, including 
                information about--
                            ``(i) policies and practices of the issuer 
                        relating to freedom of association and work-
                        life balance initiatives;
                            ``(ii) any incidents of verified workplace 
                        harassment in the previous 5 fiscal years of 
                        the issuer; and
                            ``(iii) policies and practices of the 
                        issuer relating to employee engagement and 
                        psychological wellbeing, including management 
                        discussion regarding--
                                    ``(I) the creation of an autonomous 
                                work environment;
                                    ``(II) fostering a sense of purpose 
                                in the workforce;
                                    ``(III) trust in management; and
                                    ``(IV) a supportive, fair, and 
                                constructive workplace.
                    ``(F) Workforce health and safety, including 
                information about--
                            ``(i) the frequency, severity, and lost 
                        time due to injuries, illness, and fatalities;
                            ``(ii) the total dollar value of assessed 
                        fines under the Occupational Safety and Health 
                        Act of 1970;
                            ``(iii) the total number of actions brought 
                        under section 13 of the Occupational Safety and 
                        Health Act of 1970 to prevent imminent dangers; 
                        and
                            ``(iv) the total number of actions brought 
                        against the issuer under section 11(c) of the 
                        Occupational Safety and Health Act of 1970.
                    ``(G) Workforce compensation and incentives, 
                including information about--
                            ``(i) total workforce compensation, 
                        including disaggregated information about 
                        compensation for full-time, part-time, and 
                        contingent workers;
                            ``(ii) policies and practices about how 
                        performance, productivity, and sustainability 
                        are considered when setting pay and making 
                        promotion decisions; and
                            ``(iii) policies and practices relating to 
                        any incentives and bonuses provided to 
                        employees below the named executive level and 
                        any policies or practices designed to counter 
                        any risks create by such incentives and 
                        bonuses.
                    ``(H) Workforce recruiting and needs, including the 
                number of new jobs created, the worker classification 
                of new jobs, information about the quality of hire, and 
                new hire retention rate.
            ``(3) Treatment of emerging growth companies.--The 
        Commission may exempt emerging growth companies from any 
        disclosure described under subparagraph (D), (E), (F), (G), or 
        (H) of paragraph (2), if the Commission determines that such 
        exemption is necessary or appropriate in the public interest or 
        for the protection of investors.''.

SEC. 3. BACKSTOP.

     If, 2 years after the date of the enactment of this Act, the 
Securities and Exchange Commission has not issued rules required under 
section 13(s)(2) of the Securities Exchange Act of 1934, as added by 
section 2, and until such rules are issued, an issuer shall be deemed 
in compliance with section 13(s) of the Securities Exchange Act of 1934 
if disclosures set forth in the annual report of such issuer satisfy 
the public disclosure standards of the International Organization for 
Standardization's ISO 30414, or any successor standards for external 
human capital reporting, and as supplemented or adjusted by such rules, 
guidance, or other comments from the Commission.

SEC. 4. SEC STUDY.

    (a) Study.--The Securities and Exchange Commission shall conduct a 
study about the value to investors of--
            (1) information about the human rights commitments of 
        issuers of securities required to file annual reports under 
        section 13(a) of the Securities Exchange Act of 1934, including 
        information about any principles used to evaluate risk, 
        constituency consultation processes, and supplier due 
        diligence;
            (2) information about violations, by issuers of securities 
        required to file annual reports under section 13(a) of the 
        Securities Exchange Act of 1934, of the Fair Labor Standards 
        Act of 1938;
            (3) disaggregating the information requested in section 
        13(s) of the Securities Exchange Act of 1934 based on relevant 
        workforce subgroups, including--
                    (A) full-time employees;
                    (B) part-time employees;
                    (C) contingent workers; and
                    (D) company management; and
            (4) surveys regarding employee satisfaction and engagement.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Securities and Exchange Commission shall submit to 
Congress a report about the study conducted pursuant to subsection (a).
                                                 Union Calendar No. 519

116th CONGRESS

  2d Session

                               H. R. 5930

                          [Report No. 116-634]

_______________________________________________________________________

                                 A BILL

  To amend the Securities Exchange Act of 1934 to require issuers to 
disclose information about human capital management in annual reports, 
                        and for other purposes.

_______________________________________________________________________

                            December 8, 2020

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed