text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Business Supply Chain Transparency 
  on Trafficking and Slavery Act of 2014''.
  
  SEC. 2. FINDINGS AND SENSE OF CONGRESS.
  
      (a) Findings.--Congress finds the following:
              (1) In 2012, the Department of Labor identified 134 goods 
          from 74 countries around the world made by forced labor and 
          child labor.
              (2) The United States is the world's largest importer, and 
          in the 21st century, investors, consumers, and broader civil 
          society increasingly demand information about the human rights 
          impact of products in the United States market.
              (3) Courts have also ruled that consumers do not have 
          standing to bring a civil action in United States courts for 
          enforcement of this provision of the Tariff Act, because the 
          legislative intent was to protect American manufacturers from 
          unfairly priced goods, not to protect consumers from tainted 
          goods, consequently, there are fewer than 40 enforcement 
          actions on record in the past 80 years.
              (4) Mechanisms under Federal law related to forced labor, 
          slavery, human trafficking, and the worst forms of child labor 
          in the stream of commerce suffer from similar problems of 
          limited scope, broad expectations, and inability to provide 
          information about specific supplies whose goods are tainted.
              (5) The United Nations Guiding Principles on Business and 
          Human Rights affirm that business enterprises have a 
          responsibility to respect human rights, and that States have a 
          duty to ensure these rights are protected. Such Guiding 
          Principles also clarify that the duty to protect against 
          business-related human rights abuses requires States to take 
          the necessary steps to prevent and address human rights abuses 
          to workers through effective policies and regulation.
              (6) The Trafficking Victims Protection Reauthorization Act 
          of 2003 (Public Law 108-193) together with the Trafficking 
          Victims Protection Act of 2005 (Public Law 109-164) provide for 
          the termination of Federal contracts where a Federal contractor 
          or subcontractor engages in severe forms of trafficking in 
          persons or has procured a commercial sex act during the period 
          of time that the grant, contract, or cooperative agreement is 
          in effect, or uses forced labor in the performance of the 
          grant, contract, or cooperative agreement. The Trafficking 
          Victims Protection Act of 2005 also provide United States 
          courts with criminal jurisdiction abroad over Federal 
          employees, contractors, or subcontractors who participate in 
          severe forms of trafficking in persons or forced labor.
              (7) Executive Order 13126, Prohibition of Acquisition of 
          Products Produced by Forced or Indentured Child Labor, 
          Executive Order 13627, Strengthening Protections Against 
          Trafficking In Persons In Federal Contracts, and title XVII of 
          the National Defense Authorization Act for Fiscal Year 2013 
          (Public Law 112-239) have prohibited Federal contractors, 
          subcontractors, and their employees from engaging in the 
          following trafficking-related activities: charging labor 
          recruitment fees; confiscating passports and other identity 
          documents of workers; and using fraudulent recruitment 
          practices, including failing to disclose basic information or 
          making material misrepresentations about the terms and 
          conditions of employment. Such Executive order and Acts also 
          require Federal contractors, subcontractors, and their 
          employees to maintain an anti-trafficking compliance plan that 
          includes, among other elements, a complaint mechanism and 
          procedures to prevent subcontractors at any tier from engaging 
          in trafficking in persons.
      (b) Sense of Congress.--It is the sense of Congress that--
              (1) forced labor, slavery, human trafficking, and the worst 
          forms of child labor are among the most egregious forms of 
          abuse that humans commit against each other, for the sake of 
          commercial profit;
              (2) the legislative and regulatory framework to prevent 
          goods produced by forced labor, slavery, human trafficking, and 
          the worst forms of child labor from passing into the stream of 
          commerce in the United States is gravely inadequate;
              (3) legislation is necessary to provide consumers 
          information on products that are free of child labor, forced 
          labor, slavery, and human trafficking; and
              (4) through publicly available disclosures, businesses and 
          consumers can avoid inadvertently promoting or sanctioning 
          these crimes through production and purchase of goods and 
          products that have been tainted in the supply chains.
  
  SEC. 3. DISCLOSURE OF INFORMATION RELATING TO EFFORTS TO COMBAT THE USE 
                OF FORCED LABOR, SLAVERY, TRAFFICKING IN PERSONS, OR THE 
                WORST FORMS OF CHILD LABOR.
  
      Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) 
  is amended by adding at the end the following new subsection:
      ``(s) Disclosures Relating to Efforts To Combat the Use of Forced 
  Labor, Slavery, Trafficking in Persons, or the Worst Forms of Child 
  Labor.--
              ``(1) Regulations.--Not later than 1 year after the date of 
          enactment of the Global Supply Chain Transparency for 
          Trafficking, Forced Labor, and Child Labor Eradication Act, the 
          Commission, in consultation with the Secretary of State, shall 
          promulgate regulations to require that any covered issuer 
          required to file reports with the Commission under this section 
          to include annually in such reports, a disclosure whether the 
          covered issuer has taken any measures during the year for which 
          such reporting is required to identify and address conditions 
          of forced labor, slavery, human trafficking, and the worst 
          forms of child labor within the covered issuer's supply chain, 
          and a description of such measures taken. Such disclosure shall 
          include, under the heading `Policies to Address Forced Labor, 
          Slavery, Human Trafficking, and the Worst Forms of Child 
          Labor', information describing to what extent, if any, the 
          covered issuer conducts any of the following activities:
                      ``(A) Whether the covered issuer maintains a policy 
                  to identify and eliminate the risks of forced labor, 
                  slavery, human trafficking, and the worst forms of 
                  child labor within the covered issuer's supply chain 
                  (such disclosure to include the text of the policy or 
                  substantive description of the elements of the policy), 
                  and actions the covered issuer has taken pursuant to or 
                  in the absence of such policy.
                      ``(B) Whether the covered issuer maintains a policy 
                  prohibiting its employees and employees of entities 
                  associated with its supply chain for engaging in 
                  commercial sex acts with a minor.
                      ``(C) The efforts of the covered issuer to evaluate 
                  and address the risks of forced labor, slavery, human 
                  trafficking, and the worst forms of child labor in the 
                  product supply chain. If such efforts have been made, 
                  such disclosure shall--
                              ``(i) describe any risks identified within 
                          the supply chain, and the measures taken toward 
                          eliminating those risks;
                              ``(ii) specify whether the evaluation was 
                          or was not conducted by a third party;
                              ``(iii) specify whether the process 
                          includes consultation with the independent 
                          labor organizations (as such term is defined in 
                          section 2 of the National Labor Relations Act 
                          (29 U.S.C. 152)), workers' associations, or 
                          workers within workplaces and incorporates the 
                          resulting input or written comments from such 
                          independent labor organizations, workers' 
                          associations, or workers and if so, the 
                          disclosure shall describe the entities 
                          consulted and specify the method of such 
                          consultation; and
                              ``(iv) specify the extent to which the 
                          process covers entities within the supply 
                          chain, including entities upstream in the 
                          product supply chain and entities across lines 
                          of products or services.
                      ``(D) The efforts of the covered issuer to ensure 
                  that audits of suppliers within the supply chain of the 
                  covered issuer are conducted to--
                              ``(i) investigate the working conditions 
                          and labor practices of such suppliers;
                              ``(ii) verify whether such suppliers have 
                          in place appropriate systems to identify risks 
                          of forced labor, slavery, human trafficking, 
                          and the worst forms of child labor within their 
                          own supply chain; and
                              ``(iii) evaluate whether such systems are 
                          in compliance with the policies of the covered 
                          issuer or efforts in absence of such policies.
                      ``(E) The efforts of the covered issuer to--
                              ``(i) require suppliers in the supply chain 
                          to attest that the manufacture of materials 
                          incorporated into any product and the 
                          recruitment of labor are carried out in 
                          compliance with the laws regarding forced 
                          labor, slavery, human trafficking, and the 
                          worst forms of child labor of the country or 
                          countries in which the covered issuer is doing 
                          business;
                              ``(ii) maintain internal accountability 
                          standards, supply chain management, and 
                          procurement systems, and procedures for 
                          employees, suppliers, contractors, or other 
                          entities within its supply chain failing to 
                          meet the covered issuer's standards regarding 
                          forced labor, slavery, human trafficking, and 
                          the worst forms of child labor, including a 
                          description of such standards, systems, and 
                          procedures;
                              ``(iii) train the employees and management 
                          who have direct responsibility for supply chain 
                          management on issues related to forced labor, 
                          slavery, human trafficking, and the worst forms 
                          of child labor, particularly with respect to 
                          mitigating risks within the supply chains of 
                          products; and
                              ``(iv) ensure that labor recruitment 
                          practices at all suppliers associated with the 
                          supply chain comply with the covered issuer's 
                          policies or efforts in absence of such policies 
                          for eliminating exploitive labor practices that 
                          contribute to forced labor, slavery, human 
                          trafficking, and the worst forms of child 
                          labor, including by complying with audits of 
                          labor recruiters and disclosing the results of 
                          such audits.
                      ``(F) The efforts of the covered issuer in cases 
                  where forced labor, slavery, human trafficking, and the 
                  worst forms of child labor have been identified within 
                  the supply chain, to ensure that remedial action is 
                  provided to those who have identified as victims, 
                  including support for programs designed to prevent the 
                  recurrence of those events within the industry or 
                  sector in which they have been identified.
              ``(2) Requirements for availability of information.--
                      ``(A) In general.--The regulations promulgated 
                  under paragraph (1) shall require--
                              ``(i) that the required information be 
                          disclosed by the covered issuer on the Internet 
                          website of the covered issuer through a 
                          conspicuous and easily understandable link to 
                          the relevant information that shall be labeled 
                          `Global Supply Chain Transparency'; and
                              ``(ii) if an individual submits a written 
                          request to the covered issuer for such 
                          information, that the covered issuer provides 
                          the individual with a written disclosure of the 
                          required information under this section within 
                          30 days of the receipt of such request.
                      ``(B) Disclosure.--The Commission shall make 
                  available to the public in a searchable format on the 
                  Commission's website--
                              ``(i) a list of covered issuers required to 
                          disclose any measures taken by the company to 
                          identify and address conditions of forced 
                          labor, slavery, human trafficking, and the 
                          worst forms of child labor within the covered 
                          issuer's supply chain, as required by this 
                          subsection; and
                              ``(ii) a compilation of the information 
                          submitted under the rules issued under 
                          paragraph (1).
              ``(3) Definitions.--As used in this subsection--
                      ``(A) the term `covered issuer' means an issuer 
                  that has annual worldwide global receipts in excess of 
                  $100,000,000;
                      ``(B) the terms `forced labor', `slavery', and 
                  `human trafficking' mean any labor practice or human 
                  trafficking activity in violation of national and 
                  international standards, including International Labor 
                  Organization Convention No. 182, the Trafficking 
                  Victims Protection Act of 2000 (Public Law 106-386), 
                  and acts that would violate the criminal provisions 
                  related to slavery and human trafficking under chapter 
                  77 of title 18, United States Code, if they had been 
                  committed within the jurisdiction of the United States;
                      ``(C) the terms `remediation' and `remedial action' 
                  mean the activities or systems that an issuer puts in 
                  place to address non-compliance with the standards 
                  identified through monitoring or verification, which 
                  may apply to individuals adversely affected by the non-
                  compliant conduct or address broader systematic 
                  processes;
                      ``(D) the term `supply chain', with respect to a 
                  covered issuer disclosing the information required 
                  under the regulations promulgated under this section, 
                  means all labor recruiters, suppliers of products, 
                  component parts of products, and raw materials used by 
                  such entity in the manufacturing of such entity's 
                  products whether or not such entity has a direct 
                  relationship with the supplier; and
                      ``(E) the term `the worst forms of child labor' 
                  means child labor in violation of national and 
                  international standards, including International Labor 
                  Organization Convention No. 182.''.
  
  SEC. 4. DISCLOSURES ON WEBSITE OF DEPARTMENT OF LABOR.
  
      (a) In General.--The Secretary of Labor shall make available to the 
  public in a searchable format on the Department of Labor's website--
              (1) a list of companies required to disclose any measures 
          taken by the company to identify and address conditions of 
          forced labor, slavery, human trafficking, and the worst forms 
          of child labor within the covered issuer's supply chain, as 
          required by section 13(s) of the Securities Exchange Act of 
          1934, as added by section 3; and
              (2) a compilation of the information disclosed pursuant to 
          such requirements.
      (b) Top 100 List.--The Secretary of Labor, in consultation with the 
  Secretary of State and other appropriate Federal and international 
  agencies, independent labor evaluators, and human rights groups, shall 
  annually develop and publish on the Internet website of the Department 
  of Labor a list of top 100 companies adhering to supply chain labor 
  standards, as established under relevant Federal and international 
  guidelines.
target: Business Supply Chain Transparency on Trafficking and Slavery Act of 2014 - Expresses the sense of Congress that: (1) legislation is necessary to provide consumers information on products that are free of child labor, forced labor, slavery, and human trafficking; and (2) businesses and consumers, by means of publicly available disclosures, can avoid inadvertently promoting or sanctioning these crimes through production and purchase of goods and products that have been tainted in the supply chains. Amends the Securities Exchange Act of 1934 to direct the Securities and Exchange Commission (SEC), within one year after enactment of the Global Supply Chain Transparency for Trafficking, Forced Labor, and Child Labor Eradication Act, to promulgate regulations requiring that mandatory annual reports include a disclosure whether the covered issuer has taken any measures during the year to identify and address conditions of forced labor, slavery, human trafficking, and the worst forms of child labor within the issuer's supply chains. Requires any business entity filing such disclosures to make them available on its Internet website.  Directs the Secretary of Labor to develop and publish annually on the Internet website of the Department of Labor a list of top 100 companies adhering to supply chain labor standards, as established under federal and international guidelines.
feat_title: Business Supply Chain Transparency on Trafficking and Slavery Act of 2014