INTRODUCED BY   Senator Steinberg
    (   Coauthors:   Assembly Members 
 Brownley   and Saldana   ) 

                        FEBRUARY 27, 2009

   An act to add Section 1714.43 to the Civil Code, relating to human


   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, 2012, require retail
sellers and manufacturers doing business in the state to 
develop, maintain, and  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 $100,000,000 in annual gross receipts. The bill
would also make a specified statement of legislative intent regarding
slavery and human trafficking.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


  SECTION 1.  This act shall be known, and may be cited, as the
California Transparency in Supply Chains Act of 2010.
  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.
   (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) 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 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. 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  disclose  , as set forth in subdivision
(c),  its efforts to eradicate slavery and human trafficking
from its supply chain  , including the absence of any such
efforts  . 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 disclosure described in subdivision (a) shall be posted on
the retail seller's or manufacturer's Internet Web site  with a
conspicuous and easily understood link to the required information
placed on the business' homepage  , 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)  (1)    The disclosure described in
subdivision (a) shall, at a minimum, disclose to what extent  ,
  if any, that  the retail seller or manufacturer does
each of the following: 
    (A)  Engages in third-party verification of product
supply chains to evaluate and address risks of human trafficking and
    (B)  Conducts independent, unannounced audits of
suppliers to evaluate supplier compliance with company standards for
trafficking and slavery in supply chains. 
    (C)  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 business. 
    (D)  Maintains internal accountability standards and
procedures for employees or contractors failing to meet company
standards regarding slavery and trafficking. 
    (E)  Provides company employees and management training
on human trafficking and slavery, particularly with respect to
mitigating risks within the supply chains of products. 
   (2) The disclosure described in subdivision (a) shall include the
absence or lack of any efforts by the retail seller or manufacturer
as to each of the actions specified in paragraph (1). 
   (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,