BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 657 (Steinberg) Hearing Date: 05/28/2009 Amended: As introduced Consultant: Jacqueline Wong-HernandezPolicy Vote: Judiciary 3-2 _________________________________________________________________ ____ BILL SUMMARY: SB 657 would, beginning on January 1, 2011, 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 compliance. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2009-10 2010-11 2011-12 Fund Possible AG injunctions against companies $0 $0 minor/absorbable General _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED 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 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 Page 2 SB 657 (Steinberg) improving community safety. The Board has three PYs and, combined with administrative expenses, has a budget of $590,000 GF. 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 officials. 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. AS PROPOSED TO BE AMENDED: This provision of the bill creating the Commission to Combat Slavery and Human Trafficking will be deleted. This amendment eliminates the potential cost to the state.