[Senate Report 117-116]
[From the U.S. Government Publishing Office]


                                                     Calendar No. 384
117th Congress      }                           {           Report
                                 SENATE
 2d Session         }                           {           117-116
_______________________________________________________________________

 
       END HUMAN TRAFFICKING IN GOVERNMENT CONTRACTS ACT OF 2022

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 3470

              TO PROVIDE FOR THE IMPLEMENTATION OF CERTAIN
     TRAFFICKING IN CONTRACTING PROVISIONS, AND FOR OTHER PURPOSES

		[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


                  May 24, 2022.--Ordered to be printed
                  
                  
                 	      __________
		  		
		  
		   U.S. GOVERNMENT PUBLISHING OFFICE
		  
29-010 			    WASHINGTON : 2022

                  
                  
                  
                  
                  
                  
                  
                  
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
                    Sarah C. Pierce, Senior Counsel
                Pamela Thiessen, Minority Staff Director
            Sam J. Mulopulos, Minority Deputy Staff Director
       Jeremy H. Hayes, Minority Senior Professional Staff Member
                     Laura W. Kilbride, Chief Clerk











                                                     Calendar No. 384
117th Congress      }                           {           Report
                                 SENATE
 2d Session         }                           {           117-116

======================================================================


       END HUMAN TRAFFICKING IN GOVERNMENT CONTRACTS ACT OF 2022

                                _______
                                

                  May 24, 2022.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 3470]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 3470), to provide 
for the implementation of certain trafficking in contracting 
provisions, and for other purposes, having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................2
 IV. Section-by-Section Analysis of the Bill, As Reported.............3
  V. Evaluation of Regulatory Impact..................................3
 VI. Congressional Budget Office Cost Estimate........................3
VII. Changes in Existing Law Made by the Bill, as Reported............4

                         I. Purpose and Summary

    S. 3470, the End Human Trafficking in Government Contracts 
Act of 2022, requires that if an agency receives an inspector 
general report substantiating an allegation that a contract 
recipient of that agency is engaged in a trafficking crime, 
that such matter be referred to the agency's suspension and 
debarment official for action. The bill also requires the 
Director of the Office of Management and Budget (OMB) to submit 
to Congress a report on the implementation of the Ending 
Trafficking in Government Contracting Act, passed in the 
National Defense Authorization Act (NDAA) for Fiscal Year 2013.

              II. Background and the Need for Legislation

    Human trafficking is a grave crime and a human rights abuse 
that harms the well-being of individuals and communities 
everywhere.\1\ Human trafficking occurs when traffickers profit 
by compelling their victims to perform labor or to engage in 
commercial sex.\2\
---------------------------------------------------------------------------
    \1\See U.S. Department of State, About Human Trafficking 
(www.state.gov/humantrafficking-about-human-trafficking) (accessed Jan. 
10, 2022).
    \2\Id.
---------------------------------------------------------------------------
    The U.S. government has a zero tolerance policy for human 
trafficking among U.S. government employees and contractors.\3\ 
Despite this, the Government Accountability Office (GAO) has 
found that foreign workers employed under U.S. government 
contracts continue to be trafficked on a persistent basis.\4\ 
For example, over the past decade, there have been rising 
concerns about human trafficking by military contractors as the 
U.S. military outsources its overseas base-support 
responsibilities to contractors.\5\ Many of the individuals 
employed by the contractors come from developing countries, and 
income disparities between their countries of origin and 
countries of destination often make them vulnerable to labor 
abuses.\6\ Such abuse frequently begins with steep recruitment 
fees which put workers into debt, giving them no choice but to 
stay and work until their debt is paid off.\7\
---------------------------------------------------------------------------
    \3\Government Accountability Office, Human Trafficking: DOD Should 
Address Weaknesses in Oversight of Contractors and Reporting of 
Investigations Related to Contracts (GAO-21-546) (Aug. 4, 2021).
    \4\Id.
    \5\Id.
    \6\Government Accountability Office, Human Trafficking: Oversight 
of Contractors' Use of Foreign Workers in High-Risk Environments Needs 
to be Strengthened, (GAO-15-102) (Nov. 18, 2014).
    \7\See United Nations Office on Drugs and Crime, The Role of 
Recruitment Fees and Abusive and Fraudulent Recruitment Practices of 
Recruitment Agencies in Trafficking in Persons, (2015) (www.unodc.org/
documents/human-trafficking/2015/15-05035_ebook-_Recruitment_Fees.
Agencies.pdf).
---------------------------------------------------------------------------
    Currently, if a U.S. government agency receives an 
inspector general report substantiating an allegation that a 
contract recipient engaged in a trafficking crime, that agency 
only needs to consider initiating a referral to the agency's 
suspension and debarment officials. S. 3470 requires said 
agency to refer matters to the agency's suspension and 
debarment official upon receipt of an inspector general report 
substantiating an allegation that a contractor or subcontractor 
engaged in human trafficking. The bill also requires the 
Director of OMB to submit a report to Congress regarding the 
implementation of title XVII of the FY 2013 NDAA, which 
enhanced prevention, accountability, and enforcement around 
trafficking crimes in government contracts.\8\
---------------------------------------------------------------------------
    \8\National Defense Authorization Act of 2013, Pub. L. 112-239, 
Sec. 1701-1708 (2013).
---------------------------------------------------------------------------

                        III. Legislative History

    Senator James Lankford (R-OK) introduced S. 3470, the End 
Human Trafficking in Government Contracts Act of 2022, on 
January 11, 2022, with Senator Joni Ernst (R-IA). The bill was 
referred to the Committee on Homeland Security and Governmental 
Affairs. The Committee considered S. 3470 at a business meeting 
on February 2, 2022. The bill was ordered reported favorably by 
a voice vote en bloc. Senators present for the vote on the bill 
were: Peters, Carper, Hassan, Sinema, Rosen, Padilla, Ossoff, 
Portman, Lankford, Scott, and Hawley.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section designates the name of the bill as the ``End 
Human Trafficking in Government Contracts Act of 2022''.

Section 2. Implementation of trafficking in contracting provisions

    Subsection (a) amends 22 U.S.C. Sec. 7104b(c)(1) by adding 
a requirement for agencies to refer matters to their suspension 
and debarment official if they receive an inspector general 
report substantiating an allegation that a contract recipient 
of the agency engaged in a trafficking crime. This subsection 
also strikes 22 U.S.C. Sec. 7104b(c)(1)(G), removing the option 
for agencies to refer matters to the agency suspension and 
debarment official if the agency receives an inspector general 
report substantiating an allegation that a contract recipient 
engaged in a trafficking crime.
    Subsection (b) requires the Director of OMB to submit a 
report to Congress regarding the implementation of title XVII 
of the Ending Trafficking in Government Contracting Act enacted 
as part of the FY 2013 NDAA no later than 90 days after the 
enactment of this bill.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 16, 2022.
Hon. Gary Peters,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 3470, the End Human 
Trafficking in Government Contracts Act of 2022.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    	[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    Under S. 3470, any federal agency receiving a substantiated 
claim that a grant or contract recipient is engaging in human 
trafficking would be required to refer the matter to the 
agency's suspension and debarment official. Under current law, 
such a referral is optional. The head of the contracting agency 
would have the authority to impose various sanctions, including 
terminating the contract. The bill also would require the 
Director of the Office of Management and Budget to report on 
efforts to end human trafficking in government contracting.
    Federal agencies are subject to laws, orders, and 
directives that are aimed at preventing human trafficking; 
thus, CBO expects that the bill's provisions would not 
significantly increase federal agencies' administrative costs. 
CBO estimates that the cost of meeting the bill's reporting 
requirements would be less than $500,000 over the 2022-2027 
period.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was reviewed by H. Samuel Papenfuss, 
Deputy Director of Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows: (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 22--FOREIGN RELATIONS AND INTERCOURSE

           *       *       *       *       *       *       *


CHAPTER 78--TRAFFICKING VICTIMS PROTECTION

           *       *       *       *       *       *       *



SEC. 7104B. MONITORING AND INVESTIGATION OF TRAFFICKING IN PERSONS.

    (a) * * *
    (b) * * *
    (c) Remedial Actions.--
          (1) In general.--Upon receipt of an Inspector 
        General's report substantiating an allegation that the 
        recipient of a contract, grant, or cooperative 
        agreement; any subgrantee or subcontractor of the 
        recipient; or any agent of the recipient or of a 
        subgrantee or subcontractor, engaged in any of the 
        activities described in section 106(g) of the 
        Trafficking Victims Protection Act of 2000 (22 U.S.C. 
        7104(g)), as amended by section 1702, or notification 
        of an indictment, information, or criminal complaint 
        for an offense under subsection (a)(3), the head of 
        agency shall refer the matter to the agency suspension 
        and debarment official and consider taking one or more 
        of the following remedial actions:
                  (A) * * *

           *       *       *       *       *       *       *

                  [(G) Referring the matter to the agency 
                suspension and debarment official.]
          (2) * * *
          (3) * * *
          (4) * * *
    (d) * * *

           *       *       *       *       *       *       *


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