BILL NUMBER: SB 657	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 20, 2010
	AMENDED IN ASSEMBLY  JUNE 30, 2010
	AMENDED IN ASSEMBLY  JUNE 23, 2010
	AMENDED IN SENATE  JUNE 1, 2009

INTRODUCED BY   Senator Steinberg
    (   Principal coauthor:   Assembly Member
  John A. Perez   ) 
   (Coauthors: Assembly Members Brownley and Saldana)

                        FEBRUARY 27, 2009

   An act to add Section 1714.43 to the Civil Code,   and to add
Section 19547.5 to the Revenue and Taxation Code,   relating to
human trafficking.



	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
relief.
   Existing law generally regulates various business activities and
practices, including those of retail sellers and manufacturers of
products.
   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 disclose
their efforts to eradicate slavery and human trafficking from their
 direct  supply chains  for tangible goods offered for
sale  , as specified. That provision would not apply to a retail
seller or manufacturer having less than $100,000,000 in annual 
worldwide  gross receipts. The bill would also make a specified
statement of legislative intent regarding slavery and human
trafficking.  The bill would also require the Franchise Tax Board
to make available to the Attorney General a list of retail sellers
and manufacturers required to disclose efforts to eradicate slavery
and human trafficking pursuant to that provision, as specified. 

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . 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.
  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
decisions.
   (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)  (1)    Every retail seller and
manufacturer doing business in this state and having annual 
worldwide  gross receipts that exceed one hundred million
dollars ($100,000,000) shall 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.   direct supply chain for tangible goods
offered for sale.  
   (2) For the purposes of this section, the following definitions
shall apply:  
   (A) "Doing business in this state" shall have the same meaning as
set forth in Section 23101 of the Revenue and Taxation Code. 

   (B) "Gross receipts" shall have the same meaning as set forth in
Section 25120 of the Revenue and Taxation Code.  
   (C) "Manufacturer" means a business entity with manufacturing as
its principal business activity code, as reported on the entity's tax
return filed under Part 10.2 (commencing with Section 18401) of
Division 2 of the Revenue and Taxation Code.  
   (D) "Retail seller" means a business entity with retail trade as
its principal business activity code, as reported on the entity's tax
return filed under Part 10.2 (commencing with Section 18401) of
Division 2 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) 
    (1)  Engages in  third-party 
verification of product supply chains to evaluate and address risks
of human trafficking and slavery.  The disclosure shall specify
if the verification was not conducted by a third party. 

   (B) 
    (2)  Conducts  independent, unannounced
 audits of suppliers to evaluate supplier compliance with
company standards for trafficking and slavery in supply chains. 
The disclosure shall specify if the verification was not an
independent, unannounced audit.  
   (C) 
    (3)  Requires  direct  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) 
    (4)  Maintains internal accountability standards and
procedures for employees or contractors failing to meet company
standards regarding slavery and trafficking. 
   (E) 
    (5)  Provides company employees and management  ,
who have direct responsibility for supply chain 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,
2012.
   SEC. 4.    Section 19547.5 is added to the  
Revenue and Taxation Code   , to read:  
   19547.5.  (a) (1) Notwithstanding any provision of law, the
Franchise Tax Board shall make available to the Attorney General a
list of retail sellers and manufacturers required to disclose efforts
to eradicate slavery and human trafficking pursuant to Section
1714.43 of the Civil Code. The list shall be based on tax returns
filed for taxable years beginning on or after January 1, 2011.
   (2) Each list required by this section shall be submitted annually
to the Attorney General by November 30, 2012, and each November 30
thereafter. The list shall be derived from original tax returns
received by the Franchise Tax Board on or before December 31, 2011,
and each December 31 thereafter.
   (b) Each annual list required by this section shall include the
following information for each retail seller or manufacturer:
   (1) Entity name.
   (2) California identification number.