Florida Enacts Law HB 1331 Strengthens Supply Chain Integrity to Combat Forced Labor

In a decisive move to combat forced labor, the U.S. Department of Homeland Security (DHS) has expanded the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, adding 26 China-based textile companies. Concurrently, Florida Governor Ron DeSantis signed House Bill (HB) 1331 into law, prohibiting state contracts with companies utilizing forced labor. These measures highlight the U.S. commitment to ethical sourcing and human rights, emphasizing the eradication of forced labor from global supply chains.

DHS Expands UFLPA Entity List

On May 16 2024, the DHS expanded the UFLPA Entity List by adding 26 China-based textile companies, marking the largest single expansion to date. The UFLPA presumes that goods produced in the Xinjiang Uyghur Autonomous Region (XUAR) or by entities on the UFLPA Entity List are made with forced labor, thus prohibiting their importation into the United States.

According to DHS, the newly listed entities include cotton traders and warehouse facilities that, while operating outside the XUAR, source cotton from the region. This addition aligns with DHS's Textile Enforcement Plan, which prioritizes examining and reviewing entities in the textile sector for potential inclusion on the UFLPA Entity List.

DHS Secretary Alejandro Mayorkas emphasized the importance of this action, stating, "The Department of Homeland Security will not tolerate forced labor in our nation’s supply chains. Today's announcement strengthens our enforcement of the UFLPA and helps responsible companies conduct due diligence so that, together, we can keep the products of forced labor out of our country.

DHS Under Secretary for Policy Robert Silvers added, "Companies must conduct due diligence and know where their products are coming from." This requirement, though not new, is reinforced by the expanded UFLPA Entity List and the continued enforcement by Customs and Border Protection (CBP).

Since the UFLPA was signed by President Biden in December 2021, 65 entities have been added to the list, spanning various sectors such as apparel, agriculture, polysilicon, plastics, chemicals, batteries, household appliances, electronics, and food additives.

Florida's New Legislation Against Forced Labor

On May 15, Florida Governor Ron DeSantis signed HB 1331 into law, further strengthening the state’s stance against forced labor. Effective July 1, the law prohibits state contracts with companies that produce commodities using forced labor.

Key provisions of Florida's New Legislation HB 1331 include:

• A requirement for senior management of contracting companies to certify, in writing, that their products are not made with forced labor.
• The Florida Department of Management Services must create and maintain a forced labor vendor list, disqualifying companies from public contracting. This list will be updated quarterly and made publicly available.

This legislation is part of a broader effort by Governor DeSantis to safeguard Florida's economy and ensure ethical business practices. On the same day, he also signed HB 1645, related to energy resources, and HB 7071, addressing investments in Chinese securities by the State Board of Administration.

Governor DeSantis commented on the legislative package, stating, "The legislation I signed today — HB 1645, HB 7071, and HB 1331 — will keep windmills off our beaches, gas in our tanks, and China out of our state."

Conclusion

These recent actions by DHS and the state of Florida underscore a strong commitment to eliminating forced labor from supply chains. By expanding the UFLPA Entity List and enacting state-level legislation, the U.S. is taking significant steps to ensure that products entering the market are ethically sourced and free from human rights abuses. Companies are encouraged to conduct rigorous due diligence to comply with these regulations and contribute to the global effort against forced labor.