Union Calendar No. 519
116th CONGRESS 2d Session |
[Report No. 116–634]
To amend the Securities Exchange Act of 1934 to require issuers to disclose information about human capital management in annual reports, and for other purposes.
February 21, 2020
Mrs. Axne introduced the following bill; which was referred to the Committee on Financial Services
December 8, 2020
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on February 21, 2020]
To amend the Securities Exchange Act of 1934 to require issuers to disclose information about human capital management in annual reports, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SEC. 2. Disclosures related to human capital management.
Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) is amended by adding at the end the following:
“(s) Disclosures related to human capital management.—
“(1) IN GENERAL.—Each issuer required to file an annual report under subsection (a) shall disclose in that report information about human capital management policies, practices, and performance.
“(2) RULES.—Not later than 270 days after the date of the enactment of this subsection, the Commission shall issue final rules to carry out paragraph (1) and such rules shall require disclosure of the following with respect to the issuer:
“(A) Workforce demographic information, including the number of full-time employees, the number of part-time employees, the number of contingent workers (including temporary and contract workers), and any policies or practices relating to subcontracting, outsourcing, and insourcing.
“(B) Workforce stability information, including information about the voluntary turnover or retention rate, the involuntary turnover rate, the internal hiring rate, and the internal promotion rate (and with such internal promotion rate disaggregated by the workforce composition described under subparagraph (C)).
“(C) Workforce composition, including data on diversity (including racial, gender, and ethnic composition) and any policies and audits related to diversity.
“(D) Workforce skills and capabilities, including information about training of employees (including the average number of hours of training and spending on training per employee per year), skills gaps, and alignment of skills and capabilities with business strategy.
“(E) Workforce culture and empowerment, including information about—
“(i) policies and practices of the issuer relating to freedom of association and work-life balance initiatives;
“(ii) any incidents of verified workplace harassment in the previous 5 fiscal years of the issuer; and
“(F) Workforce health and safety, including information about—
“(ii) the total dollar value of assessed fines under the Occupational Safety and Health Act of 1970;
“(G) Workforce compensation and incentives, including information about—
“(i) total workforce compensation, including disaggregated information about compensation for full-time, part-time, and contingent workers;
“(3) TREATMENT OF EMERGING GROWTH COMPANIES.—The Commission may exempt emerging growth companies from any disclosure described under subparagraph (D), (E), (F), (G), or (H) of paragraph (2), if the Commission determines that such exemption is necessary or appropriate in the public interest or for the protection of investors.”.
If, 2 years after the date of the enactment of this Act, the Securities and Exchange Commission has not issued rules required under section 13(s)(2) of the Securities Exchange Act of 1934, as added by section 2, and until such rules are issued, an issuer shall be deemed in compliance with section 13(s) of the Securities Exchange Act of 1934 if disclosures set forth in the annual report of such issuer satisfy the public disclosure standards of the International Organization for Standardization’s ISO 30414, or any successor standards for external human capital reporting, and as supplemented or adjusted by such rules, guidance, or other comments from the Commission.
(a) Study.—The Securities and Exchange Commission shall conduct a study about the value to investors of—
(1) information about the human rights commitments of issuers of securities required to file annual reports under section 13(a) of the Securities Exchange Act of 1934, including information about any principles used to evaluate risk, constituency consultation processes, and supplier due diligence;
(2) information about violations, by issuers of securities required to file annual reports under section 13(a) of the Securities Exchange Act of 1934, of the Fair Labor Standards Act of 1938;
Union Calendar No. 519 | |||||
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[Report No. 116–634] | |||||
A BILL | |||||
To amend the Securities Exchange Act of 1934 to require issuers to disclose information about human capital management in annual reports, and for other purposes. | |||||
December 8, 2020 | |||||
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed |