[Congressional Record Volume 168, Number 153 (Thursday, September 22, 2022)]
[Senate]
[Pages S4990-S4992]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5599. Mr. HAWLEY submitted an amendment intended to be proposed to 
amendment SA 5499 submitted by Mr. Reed (for himself and Mr. Inhofe) 
and intended to be proposed to the bill H.R. 7900, to authorize 
appropriations for fiscal year 2023 for military activities of the 
Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe military personnel 
strengths for such fiscal year, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of subtitle G of title X, insert the following:

     SEC. 1077. SLAVE-FREE BUSINESS CERTIFICATION.

       (a) Short Title.--This section may be cited as the ``Slave-
     Free Business Certification Act of 2022''.
       (b) Required Reporting on Use of Forced Labor From Covered 
     Business Entities.--
       (1) Definitions.--In this section:
       (A) Covered business entity.--The term ``covered business 
     entity'' means any issuer, as that term is defined in section 
     2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)), that--
       (i) has annual, worldwide gross receipts that exceed 
     $500,000,000; and
       (ii) is involved in the mining, production, or manufacture 
     of goods for sale.
       (B) Forced labor.--The term ``forced labor'' means any 
     labor practice or human

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     trafficking activity in violation of national and 
     international standards, including--
       (i) International Labor Organization Convention No. 182;
       (ii) the Trafficking Victims Protection Act of 2000 (22 
     U.S.C. 7101 et seq.); and
       (iii) any act that would violate the criminal provisions 
     related to slavery and human trafficking under chapter 77 of 
     title 18, United States Code, if the act had been committed 
     within the jurisdiction of the United States.
       (C) Gross receipts.--The term ``gross receipts'' has the 
     meaning given to the term in section 993(f) of the Internal 
     Revenue Code of 1986.
       (D) On-site service.--The term ``on-site service'' means 
     any service work provided on the site of a covered business 
     entity, including food service work and catering services.
       (E) On-site service provider.--The term ``on-site service 
     provider'' means any entity that provides workers who 
     perform, collectively, a total of not less than 30 hours per 
     week of on-site services for a covered business entity.
       (F) Secretary.--The term ``Secretary'' means the Secretary 
     of Labor.
       (G) Supply chain.--The term ``supply chain'' means the end-
     to-end process for producing and transporting goods beginning 
     at the point of origin through a point of distribution to the 
     destination, inclusive of suppliers, manufacturers, and 
     vendors.
       (2) Audit and reporting requirements.--
       (A) In general.--Not later than 1 year after the date of 
     enactment of this Act, and every year thereafter, each 
     covered business entity shall--
       (i) conduct an audit of its supply chain, pursuant to the 
     requirements of subsection (c), to investigate the presence 
     or use of forced labor by the covered business entity or its 
     suppliers, including by direct suppliers, secondary 
     suppliers, and on-site service providers of the covered 
     business entity;
       (ii) submit a report to the Secretary containing the 
     information described in subparagraph (B) on the results of 
     such audit and efforts of the covered business entity to 
     eradicate forced labor from the supply chain and on-site 
     services of the covered business entity; and
       (iii)(I) publish the report described in clause (ii) on the 
     public website of the covered business entity, and provide a 
     conspicuous and easily understood link on the homepage of the 
     website that leads to the report; or
       (II) in the case of a covered business entity that does not 
     have a public website, provide the report in written form to 
     any consumer of the covered business entity not later than 30 
     days after the consumer submits a request for the report.
       (B) Required report contents.--Each report required under 
     subparagraph (A)(ii) shall contain, at a minimum--
       (i) a disclosure of the covered business entity's policies 
     to prevent the use of forced labor by the covered business 
     entity, its direct suppliers, and its on-site service 
     providers;
       (ii) a disclosure of what policies or procedures, if any, 
     the covered business entity uses--

       (I) for the verification of product supply chains and on-
     site service provider practices to evaluate and address risks 
     of forced labor and whether the verification was conducted by 
     a third party;
       (II) to require direct suppliers and on-site service 
     providers to provide written certification that materials 
     incorporated into the product supplied or on-site services, 
     respectively, comply with the laws regarding forced labor of 
     each country in which the supplier or on-site service 
     provider is engaged in business;
       (III) to maintain internal accountability standards and 
     procedures for employees or contractors of the covered 
     business entity failing to meet requirements regarding forced 
     labor; and
       (IV) to provide training on recognizing and preventing 
     forced labor, particularly with respect to mitigating risks 
     within the supply chains of products and on-site services of 
     the covered business entity, to employees, including 
     management personnel, of the covered business entity who have 
     direct responsibility for supply chain management or on-site 
     services;

       (iii) a description of the findings of each audit required 
     under subparagraph (A)(i), including the details of any 
     instances of found or suspected forced labor; and
       (iv) a written certification, signed by the chief executive 
     officer of the covered business entity, that--

       (I) the covered business entity has complied with the 
     requirements of this section and exercised due diligence in 
     order to eradicate forced labor from the supply chain and on-
     site services of the covered business entity;
       (II) to the best of the chief executive officer's 
     knowledge, the covered business entity has found no instances 
     of the use of forced labor by the covered business entity or 
     has disclosed every known instance of the use of forced 
     labor; and
       (III) the chief executive officer and any other officers 
     submitting the report or certification understand that 
     section 1001 of title 18, United States Code (popularly known 
     as the ``False Statements Act''), applies to the information 
     contained in the report submitted to the Secretary.

       (3) Report of violations to congress.--Each year, the 
     Secretary shall prepare and submit a report to Congress 
     regarding the covered business entities that--
       (A) have failed to conduct audits required under this 
     section for the preceding year or have been adjudicated in 
     violation of any other provision of this section; or
       (B) have been found to have used forced labor, including 
     the use of forced labor in their supply chain or by their on-
     site service providers.
       (c) Audit Requirements.--
       (1) In general.--Each audit conducted under subsection 
     (b)(2)(A)(i) shall meet the following requirements:
       (A) Worker interviews.--The auditor shall--
       (i) select a cross-section of workers to interview that 
     represents the full diversity of the workplace, and includes, 
     if applicable, men and women, migrant workers and local 
     workers, workers on different shifts, workers performing 
     different tasks, and members of various production teams;
       (ii) if individuals under the age of 18 are employed at the 
     facility of the direct supplier or on-site service provider, 
     interview a representative group using age-sensitive 
     interview techniques;
       (iii) conduct interviews--

       (I) off-site of the facility and during non-work hours for 
     the worker;
       (II) individually or in groups (except for purposes of 
     clause (ii)); and
       (III) using methods of communication that limit, to the 
     greatest practicable extent, any reliance on devices or 
     services provided to the worker by the covered business 
     entity, supplier, or on-site service provider;

       (iv) use audit tools to ensure that each worker is asked a 
     comprehensive set of questions;
       (v) collect from interviewed workers copies of the workers' 
     pay stubs, in order to compare the pay stubs with payment 
     records provided by the direct supplier;
       (vi) ensure that all worker responses are confidential and 
     are never shared with management; and
       (vii) interview a representative of the labor organization 
     or other worker representative organization that represents 
     workers at the facility or, if no such organization is 
     present, attempt to interview a representative from a local 
     worker advocacy group.
       (B) Management interviews.--The auditor shall--
       (i) interview a cross-section of the management of the 
     supplier, including human resources personnel, production 
     supervisors, and others; and
       (ii) use audit tools to ensure that managers are asked a 
     comprehensive set of questions.
       (C) Required information.--The auditor shall--
       (i) conduct a thorough review of information regarding the 
     supplier or on-site service provider to provide tangible 
     proof of compliance and to corroborate or find discrepancies 
     in the information gathered through the worker and management 
     interviews; and
       (ii) review, at a minimum, the following information 
     related to the supplier or on-site service provider:

       (I) Age verification procedures and documents.
       (II) A master list of juvenile workers or information 
     related to juvenile workers.
       (III) Selection and recruitment procedures.
       (IV) Contracts with labor brokers, if any.
       (V) Worker contracts and employment agreements.
       (VI) Introduction program materials.
       (VII) Personnel files.
       (VIII) Employee communication and training plans, including 
     certifications provided to workers including skills training, 
     worker preparedness, government certification programs, and 
     systems or policy orientations.
       (IX) Collective bargaining agreements, including collective 
     bargaining representative certification, descriptions of the 
     role of the labor organization, and minutes of the labor 
     organization's meetings.
       (X) Contracts with any security agency, and descriptions of 
     the scope of responsibilities of the security agency.
       (XI) Payroll and time records.
       (XII) Production capacity reports.
       (XIII) Written human resources policies and procedures.
       (XIV) Occupational health and safety plans and records 
     including legal permits, maintenance and monitoring records, 
     injury and accident reports, investigation procedures, 
     chemical inventories, personal protective equipment 
     inventories, training certificates, and evacuation plans.
       (XV) Disciplinary notices.
       (XVI) Grievance reports.
       (XVII) Performance evaluations.
       (XVIII) Promotion or merit increase records.
       (XIX) Dismissal and suspension records of workers.
       (XX) Records of employees who have resigned.
       (XXI) Worker pay stubs.

       (D) Closing meeting with management.--The auditor shall 
     hold a closing meeting with the management of the covered 
     business entity to--
       (i) report violations and nonconformities found in the 
     facility; and
       (ii) determine the steps forward to address and remediate 
     any problems.
       (E) Report preparation.--The auditor shall prepare a full 
     report of the audit, which shall include--
       (i) a disclosure of the direct supplier's or on-site 
     service provider's--

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       (I) documented processes and procedures that relate to 
     eradicating forced labor; and
       (II) documented risk assessment and prioritization policies 
     as such policies relate to eradicating forced labor;

       (ii) a description of the worker interviews, manager 
     interviews, and documentation review required under 
     subparagraphs (A), (B), and (C);
       (iii) a description of all violations or suspected 
     violations by the direct supplier or on-site service provider 
     of any forced labor laws of the United States or, if 
     applicable, the laws of another country as described in 
     subsection (b)(2)(B)(ii)(II); and
       (iv) for each violation described in clause (iii), a 
     description of any corrective and protective actions 
     recommended for the direct supplier consisting of, at a 
     minimum--

       (I) the issues relating to the violation and any root 
     causes of the violation;
       (II) the implementation of a solution; and
       (III) a method to check the effectiveness of the solution.

       (2) Additional requirements relating to audits.--
       (A) No retaliation for audit cooperation.--A covered 
     business entity or supplier, including a direct supplier, 
     secondary supplier, or on-site service provider, shall not 
     retaliate against any worker for participating in interviews 
     under subsection (c)(1)(A) or providing information necessary 
     for the audit requirements under subsection (c)(1)(C)(ii) to 
     the auditor.
       (B) Contract requirements.--Each covered business entity 
     shall include, in any contract with a direct supplier or on-
     site service provider, a requirement that--
       (i) the supplier or provider shall not retaliate against 
     any worker for participating in an audit relating to forced 
     labor; and
       (ii) worker participation in an audit shall be protected 
     through the same grievance mechanisms available to the worker 
     available for any other type of workplace grievance.
       (d) Enforcement.--
       (1) Civil damages.--The Secretary may assess civil damages 
     in an amount of not more than $100,000,000 if, after notice 
     and an opportunity for a hearing, the Secretary determines 
     that a covered business entity has violated any requirement 
     of subsection (b)(2).
       (2) Punitive damages.--In addition to damages under 
     paragraph (1), the Secretary may assess punitive damages in 
     an amount of not more than $500,000,000 against an entity 
     that is a covered business entity or supplier, including a 
     direct supplier, secondary supplier, or on-site service 
     provider, if, after notice and an opportunity for a hearing, 
     the Secretary determines the entity--
       (A) willfully violated any requirement of subsection 
     (b)(2); or
       (B) willfully violated subsection (c)(2)(A).
       (3) Declarative or injunctive relief.--The Secretary may 
     request the Attorney General institute a civil action for 
     relief, including a permanent or temporary injunction, 
     restraining order, or any other appropriate order, in the 
     district court of the United States for any district in which 
     the covered business entity conducts business, whenever the 
     Secretary believes that a violation of subsection (b)(2) 
     constitutes a hazard to workers.
       (e) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate rules 
     to carry out this section.
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