BILL ANALYSIS                                                                                                                                                                                                    

                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           657 (Steinberg)
          Hearing Date:  05/04/2009           Amended: As introduced
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: Judiciary 3-2
          BILL SUMMARY: SB 657 would, beginning on January 1, 2001,  
          require retail sellers and manufacturers doing business in the  
          state to develop and implement policies related to their  
          compliance with federal and state law regarding the eradication  
          of slavery and human trafficking from their supply chain. This  
          bill would also establish the Commission to Combat Slavery and  
          Human Trafficking, a nine-member appointed commission empowered  
          to investigate complaints about slavery and human trafficking  
          and company compliance with this bill, as well as create  
          educational and training programs to assist businesses with  
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Possible AG injunctions
          against companies                          $0              $0     
                   minor/absorbable     General                             
          Creates Commission to            $295-470        $590-940         
             $590-940          Private*
          Combat Slavery and Human 

          *The bill states that the commission will be a nonprofit public  
          benefit corporation, privately funded, but does not specify the  
          funds. The bill also states that it can be funded by any source.

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.

          Requiring retail sellers and manufacturers to develop and  
          implement policies related to their compliance with federal and  
          state law regarding the eradication of slavery and human  


          trafficking from their supply chain will not likely incur costs  
          for the state. This bill specifies that the exclusive remedy for  
          violation is an injunction brought by the Attorney General.  
          Since enforcement by the AG is discretionary, it would  
          presumably be accomplished within existing resources.

          This bill also creates the Commission to Combat Slavery and  
          Human Trafficking (CCSHT), a nine-member appointed board charged  
          with investigating complaints related to slavery and human  
          trafficking. The Commission is also charged with creating  
          educational and training programs to assist businesses with  
          compliance to this law, reporting annually to the Governor and  
          Legislature on its activities, and making recommendations on the  
          implementation of this chapter. It is unclear whether Commission  
          members would be paid, what expenses they incur would be  
          reimbursed, and how many staff members would be needed to  
          support the Commission, and who would be responsible for 

          Page 2
          SB 657 (Steinberg) 

          creating and implementing the initial 501(c)3 (nonprofit tax  
          exempt status) proposal creating the Commission.

          The estimated cost for this new Commission is based on the  
          budgets of existing boards and commissions. The California Sex  
          Offender Management Board (SOMB) is a 16-member appointed  
          volunteer board responsible for conducting a thorough assessment  
          of current management practices for adult sex offenders, and  
          developing recommendations, based upon the findings in the  
          assessment, to improve management practices of adult sex  
          offenders under supervision in the community, with the goal of  
          improving community safety. The Board has three PYs and,  
          combined with administrative expenses, has a budget of $590,000  

          The Little Hoover Commission is a 13-member appointed volunteer  
          commission which investigates state government operations and -  
          through reports, recommendations and legislative proposals -  
          promotes efficiency, economy and improved service. The full  
          Commission selects study topics that come to its attention from  
          citizens, legislators and other sources. In addition, it has a  
          statutory obligation to review and make recommendations on  
          proposed government reorganization plans. The Commission has 9  
          PYs, and an operating budget of $941,000 GF. This budget also  
          pays for the travel expenses of members who are not elected  



          The duties of the Little Hoover Commission are more extensive  
          than the proposed CCSHT, which is more statutorily similar to  
          the SOMB. Due to the bill's lack of specificity regarding  
          staffing and compensation, however, it is impossible to  
          accurately determine the cost of this bill.

          Staff notes that the author should consider adding language to  
          clarify the funding source. For example: The Commission on  
          Slavery and Human Trafficking is established in ____(branch of  
          government)____ and shall be convened pursuant to this article  
          only after a determination by the Department of Finance that  
          private donations in an amount sufficient to fully support the  
          activities of the commission have been deposited with the state.  
          The members of the commission shall serve without compensation,  
          and no public funds may be used to compensate the members for