Federal

TASK Act

Source: Congress.gov · 458 words in original text

What This Bill Does

This bill requires the Securities and Exchange Commission to create reporting rules for publicly traded companies. Companies must report on their efforts to check where their products come from and whether those products involve forced labor from Xinjiang, China.

Who It Affects

Publicly traded companies that import products into the United States. The Securities and Exchange Commission. Companies doing business with entities on the Department of Commerce's Entity List or designated as Chinese Military-Industrial Complex Companies by the Department of the Treasury.

Key Provisions

• The Securities and Exchange Commission must require companies to report on their sourcing and due diligence activities (investigations into where products come from and whether they involve forced labor) for supply chains directly linked to products using forced labor from Xinjiang, China. (Sec. 2) • The Securities and Exchange Commission must require companies to report on transactions with companies placed on the Entity List by the Department of Commerce or designated as Chinese Military-Industrial Complex Companies by the Department of the Treasury. (Sec. 2) • Publicly traded United States companies with facilities in China must report annually whether a Chinese Communist Party committee exists in their operations and must summarize what actions and corporate decisions that committee may have participated in. (Sec. 2)

What Changes

The Securities and Exchange Commission will establish new reporting requirements as part of its evaluation of guidance on environmental, social and governance reporting matters.

Important Definitions

None defined in the bill text.

II 118TH CONGRESS 1ST SESSION S. 864 To require the Securities and Exchange Commission to require reporting of sourcing and due diligence activities of companies involving supply chains of products that are imported into the United States that are directly linked to products utilizing forced labor from Xinjiang, China, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 16, 2023 Mr. SCOTT of Florida (for himself, Mr. RUBIO, and Mr. BRAUN) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To require the Securities and Exchange Commission to re- quire reporting of sourcing and due diligence activities of companies involving supply chains of products that are imported into the United States that are directly linked to products utilizing forced labor from Xinjiang, China, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Transaction and 4 Sourcing Knowledge Act’’ or the ‘‘TASK Act’’. 5 VerDate Sep 11 2014 00:34 Mar 29, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S864.IS S864 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 864 IS SEC. 2. SEC REPORTING. 1 The Securities and Exchange Commission, as part of 2 its evaluation of potential guidance on reporting on envi- 3 ronmental, social, and governance matters by publicly 4 traded companies, shall require reporting of— 5 (1) sourcing and due diligence activities of such 6 companies involving supply chains of products that 7 are imported into the United States that are directly 8 linked to products utilizing forced labor from 9 Xinjiang, China; 10 (2) transactions with companies that have 11 been— 12 (A) placed on the Entity List by the De- 13 partment of Commerce; or 14 (B) designated by the Department of the 15 Treasury as Chinese Military-Industrial Com- 16 plex Companies; and 17 (3) with respect to publicly traded United 18 States companies with facilities in China, on an an- 19 nual basis— 20 (A) whether there is a Chinese Communist 21 Party committee in the operations of the com- 22 pany; and 23 (B) a summary of the actions and cor- 24 porate decisions in which any committee de- 25 VerDate Sep 11 2014 00:34 Mar 29, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S864.IS S864 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 864 IS scribed in subparagraph (A) may have partici- 1 pated. 2 Æ VerDate Sep 11 2014 00:34 Mar 29, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S864.IS S864 pbinns on DSKJLVW7X2PROD with $$_JOB

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.