HR 8712
Uyghur Forced Labor Disclosure Act
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- Passed Senate
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Bill overview
The Uyghur Forced Labor Disclosure Act requires companies to disclose information about their supply chains and business relationships with entities in the Xinjiang Uyghur Autonomous Region (XUAR) of China. Specifically, it mandates that companies listed on stock exchanges provide documentation demonstrating they aren’t using goods produced with forced labor, and that companies filing annual reports disclose any engagement with entities using forced labor. The act also establishes a process for the Securities and Exchange Commission (SEC) to monitor compliance and report to Congress, with a potential repeal date tied to a presidential determination that China has ended human rights abuses in the region.
Key provisions
- Requires companies listing on stock exchanges to include documentation about Xinjiang sourcing in their registration applications.
- Requires companies to report on their use of goods sourced from or produced in the XUAR, particularly if forced labor is involved.
- Mandates the SEC to issue rules for disclosure requirements, including listing supplier details and verifying documentation.
- Requires third-party verification of documentation by an approved auditor.
- Requires the SEC to make all relevant documentation publicly available.
- Imposes penalties on companies failing to comply with disclosure requirements.
- Requires annual reports to Congress on issuer compliance with the act.
- Directs the GAO to evaluate the SEC's oversight of the certification requirements.
Who is affected
- Publicly traded companies
- Investors
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Eleanor Holmes [D-DC-At Large] Norton
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119th CONGRESS — 2d Session
H. R. 8712
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Securities Exchange Act of 1934 to require issuers to make certain disclosures relating to the Xinjiang Uyghur Autonomous Region, and for other purposes.
This Act may be cited as the Uyghur Forced Labor Disclosure Act
.
to require an issuer filing an application to register a security with a national securities exchange to—
to file the application and documentation with the Commission;
the industries contained on the Illustrative List of Industries in Xinjiang in which Public Reporting has indicated Labor Abuses may be Taking Place
in Annex 2 of the Xinjiang Supply Chain Business Advisory
(published July 13, 2021) and any successor list; and
all products listed within high-priority sectors for enforcement
by the Forced Labor Enforcement Task Force pursuant to Public Law 117–78; or
to obtain independent verification of the documentation described under paragraph (2), by a third-party auditor approved by the Commission, before the filing of an application, report, or registration statement containing such documentation;
to establish policies to respond to any reprisals against the third-party auditor.
The Commission shall make all documentation received under this subsection available to the public.
In addition to other penalties provided under this Act, with respect to an application described under paragraph (1)(A), if an issuer fails to comply with the requirements of this subsection (including any misrepresentation of the information described under paragraph (3))—
the applicable national securities exchange may not approve such application; and
the issuer may not re-file the application for 1 year.
In this subsection:
The term forced labor means—
surplus labor transfer,
poverty alleviation,
mutual aid,
Xinjiang Aid, and re-education programs targeting minoritized citizens of the XUAR, whether inside or outside;
the date that is 8 years after the date of the enactment of this section; or
the date on which the President submits to Congress (including the Office of the Law Revision Council) a determination that the Government of the People’s Republic of China has ended mass internment, forced labor, and any other gross violations of human rights experienced by Uyghurs, Kazakhs, Kyrgyz, and members of other persecuted groups in the Xinjiang Uyghur Autonomous Region.
Not later than the end of the 180-day period beginning on the date of enactment of this subsection, the Commission shall issue rules to require each issuer required to file an annual report under this section or section 15(d) or a proxy statement under section 14 to disclose in each such report or proxy statement whether, during the period covered by the report or proxy statement—
Illustrative List of Industries in Xinjiang in which Public Reporting has indicated Labor Abuses may be Taking Placein Annex 2 of the
Xinjiang Supply Chain Business Advisory(published July 13, 2021) and any successor list;
all products listed as high-priority sectors for enforcement
by the Forced Labor Enforcement Task Force pursuant to Public Law 117–78; and
all products exported from the People’s Republic of China into the United States that are listed by mandate of section 2(d)(2)(B)(iv) of Public Law 117–78 that are sourced from or through the XUAR; or
The Commission shall make all information disclosed pursuant to this subsection available to the public on the website of the Commission.
In this subsection, the terms forced labor
and XUAR
have the meaning given those terms, respectively, under section 12(m)(8).
the date that is 8 years after the date of the enactment of this section; or
the date on which the President submits to Congress (including the Office of the Law Revision Council) a determination that the Government of the People’s Republic of China has ended mass internment, forced labor, and any other gross violations of human rights experienced by Uyghurs, Kazakhs, Kyrgyz, and members of other persecuted groups in the Xinjiang Uyghur Autonomous Region.
The Securities and Exchange Commission shall—
issue a report to Congress containing the results of the assessments under paragraph (1) and (2).