BILL NUMBER: SB 657 AMENDED
AMENDED IN ASSEMBLY JUNE 23, 2010
AMENDED IN SENATE JUNE 1, 2009
INTRODUCED BY Senator Steinberg
FEBRUARY 27, 2009
An act to add Section 1714.43 to the Civil Code, relating to human
LEGISLATIVE COUNSEL'S DIGEST
SB 657, as amended, Steinberg. Human trafficking.
The federal Victims of Trafficking and Violence Protection Act of
2000 establishes an Interagency Task Force to Monitor and Combat
Trafficking, as specified.
Existing state law makes human trafficking a crime. Existing state
law also allows a victim of human trafficking to bring a civil
action for actual damages, compensatory damages, punitive damages,
injunctive relief, any combination of those, or any other appropriate
Existing law generally regulates various business activities and
practices, including those of retail sellers and manufacturers of
This bill would enact the California Transparency in Supply
Chains Act of 2010, and would, beginning January 1,
2011 2012 , require retail sellers and
manufacturers doing business in the state to develop, maintain, and
implement policies related to their compliance with federal
and state law regarding the eradication of disclose
their efforts to eradicate slavery and human trafficking
from their supply chains , as specified. That provision would
not apply to a retail seller or manufacturer having less than
$2,000,000 in annual sales $100,000,000 in
annual gross receipts . The bill would also make a specified
statement of legislative intent regarding slavery and human
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known, and may be
cited, as the California Transparency in Supply Chains Act of 2010.
SECTION 1. SEC. 2. The Legislature
finds and declares the following:
(a) Slavery and human trafficking are crimes under state, federal,
and international law.
(b) Slavery and human trafficking exist in every country,
including the United States, and the State of California ,
and consumers and businesses are often inadvertently touched by this
crime through the unknowing purchase of goods that have been infected
in the supply chain. .
(c) As a result of the criminal natures of slavery and human
trafficking, these crimes are often hidden from view and are
difficult to uncover and track.
(d) Eradicating slavery and human trafficking from California
consumer goods will serve the ultimate goal of eradicating slavery
and human trafficking worldwide.
(e) Where slavery and human trafficking are found to exist, a
policy of engagement by business, government, and nongovernmental
organizations, rather than boycotts or disengagement, is often a more
successful strategy in the fight to eradicate this criminally
(d) In recent years, significant legislative efforts have been
made to capture and punish the perpetrators of these crimes.
(e) Significant legislative efforts have also been made to ensure
that victims are provided with necessary protections and rights.
(f) Legislative efforts to address the market for goods and
products tainted by slavery and trafficking have been lacking, the
market being a key impetus for these crimes.
(g) In September 2009, the United States Department of Labor
released a report required by the Trafficking Victims Protection
Reauthorization Acts of 2005 and 2008 which named 122 goods from 58
countries that are believed to be produced by forced labor or child
labor in violation of international standards.
(h) Consumers and businesses are inadvertently promoting and
sanctioning these crimes through the purchase of goods and products
that have been tainted in the supply chain.
(i) Absent publicly available disclosures, consumers are at a
disadvantage in being able to distinguish companies on the merits of
their efforts to supply products free from the taint of slavery and
trafficking. Consumers are at a disadvantage in being able to force
the eradication of slavery and trafficking by way of their purchasing
(j) It is the policy of this state to assist
California businesses to identify and work to eliminate
ensure large retailers and manufacturers provide consumers with
information regarding their efforts to eradicate slavery and
human trafficking from their supply chains, to educate consumers on
how to purchase goods produced by companies that responsibly manage
their supply chains, and, thereby, to improve the lives of victims of
slavery and human trafficking.
SEC. 2. SEC. 3. Section 1714.43 is
added to the Civil Code, to read:
1714.43. (a) Every retail seller and manufacturer doing business
in this state and having annual gross receipts that exceed one
hundred million dollars ($100,000,000) shall develop, maintain,
and implement a policy setting forth its efforts to comply
with federal and state law regarding the eradication of
disclose its efforts to eradicate slavery and human
trafficking from its supply chain. For purposes of this section,
"doing business in this state" shall have the same meaning as set
forth in Section 23101 of the Revenue and Taxation Code.
(b) The policy disclosure described
in subdivision (a) shall be posted on the retail seller's or
manufacturer's Internet Web site, and shall be made available in
writing upon request by a consumer. In the event the retail
seller or manufacturer does not have an Internet Web site, consumers
shall be provided the written disclosure within 30 days of receiving
a written request for the disclosure from a consumer.
(c) The policy disclosure described
in subdivision (a) shall, at a minimum, include both of the
(1) That the company and all the suppliers in its supply chain,
including the suppliers of the raw materials incorporated into the
product, will comply with the laws regarding slavery and human
trafficking of the country or countries in which they are doing
(2) That the company will make a good faith effort to eradicate
slavery and human trafficking in its existing supply chain rather
than only stop doing business in the area where it discovers that its
supply chain is tainted by slavery or human trafficking.
(d) This section shall not apply to a retail seller or
manufacturer having less than two million dollars ($2,000,000) in
(e) Nothing in this section shall require a manufacturer to reveal
a trade secret.
(f) disclose to what
extent the retail seller or manufacturer does each of the following:
(1) Engages in third-party verification of product supply chains
to evaluate and address risks of human trafficking and slavery.
(2) Conducts independent, unannounced audits of suppliers to
evaluate supplier compliance with company standards for trafficking
and slavery in supply chains.
(3) Requires suppliers to certify that raw materials incorporated
into the product comply with the laws regarding slavery and human
trafficking of the country or countries in which they are doing
(4) Maintains internal accountability standards and procedures for
employees or contractors failing to meet company standards regarding
slavery and trafficking.
(5) Provides company employees and management training on human
trafficking and slavery, particularly with respect to mitigating
risks within the supply chains of products.
(d) The exclusive remedy for a violation of
this section shall be an action brought by the Attorney General for
injunctive relief. Nothing in this section shall limit remedies
available for a violation of any other state or federal law.
(e) The provisions of this section shall take effect on
January 1, 2011 2012 .