BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 657
                                                                  Page  1

          SENATE THIRD READING
          SB 657 (Steinberg)
          As Amended  August 20, 2010
          Majority vote 

           SENATE VOTE  :24-13  
           
           JUDICIARY           7-2                                         
           
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          |Ayes:|Feuer, Brownley, Evans,   |     |                          |
          |     |Huffman, Jones, Monning,  |     |                          |
          |     |Saldana                   |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Hagman, Knight            |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Seeks to provide consumers with new and easily  
          accessible information made available by specified large  
          retailers and manufacturers about these businesses' voluntary  
          efforts to try to eradicate slavery and human trafficking that  
          could inadvertently be in their product supply chains.   
          Specifically,  this bill  :  

          1)Makes various legislative findings, including that 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.

          2)Requires, after a one year "phase in" period, beginning  
            January 1, 2012 every retail seller and manufacturer doing  
            business in this state and having annual worldwide gross  
            receipts that exceed $100 million to disclose its voluntary  
            efforts to eradicate slavery and human trafficking from its  
            direct supply chain for tangible goods offered for sale.  

          3)Requires this consumer disclosure to be posted on the retail  
            seller's or manufacturer's web site with a conspicuous and  
            easily understood link to the required information placed on  
            the business' homepage.  In the event the retail seller or  








                                                                  SB 657
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            manufacturer does not have a web site, consumers must be  
            provided the written disclosure within 30 days that the  
            business receives the consumer request.

          4)Requires the disclosure, at a minimum, to disclose to what  
            extent, that the retail seller or manufacturer, among other  
            things, engages in verification of product supply chains to  
            evaluate and address risks of human trafficking and slavery  
            and 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.

          5)Provides that the exclusive remedy for a violation of this  
            measure shall be an action brought by the Attorney General for  
            injunctive relief, and that nothing in the bill shall limit  
            remedies available for a violation of any other state or  
            federal law.

          6)Provides that the bill's provisions shall not take effect  
            until January 1, 2012, to provide the designated retail  
            sellers and manufacturers substantial time to comply with the  
            bill's disclosure requirements.

          7)Requires 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 Civil Code Section 1714.43 based on  
            tax returns filed for taxable years beginning on or after  
            January 1, 2011.

           FISCAL EFFECT  :  Unknown
           
          COMMENTS  :  This important consumer empowerment bill is part of a  
          continuing effort by the author to fight the continuing  
          international tragedy of slavery and human trafficking.  Through  
          this measure the author seeks to harness the immense economic  
          power of the purchasing decisions of California consumers to  
          help tackle this complex and challenging problem.  The bill  
          simply seeks to ensure interested California consumers have  
          reasonable access to basic information to aid their purchasing  
          decisions.  It does so by requiring designated major retailers  
          and manufacturers to disclose their efforts to eradicate slavery  
          and human trafficking that could inadvertently be in their  
          product supply chains. 








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          As shocking as it is to note in the 21st century, human  
          trafficking involves the modern-day recruitment, transportation,  
          or sale of people for forced labor.  Through violence, threats,  
          and coercion, these victims are forced to work in, among other  
          things, the sex trade, domestic labor, factories, hotels, and  
          agriculture.  California regrettably has been reported to be one  
          of the top four destination states for trafficking victims in  
          the United States.  Over 500 victims from 18 countries were  
          identified in California between 1998 and 2003.  Trafficking  
          victims in California reportedly tend to be concentrated in  
          three "industries":  prostitution, sweat shops, and domestic  
          service.  

          In October 2007, the California Department of Justice released  
          the final report produced by the California ACTS Task Force  
          entitled "Human Trafficking in California," which contained a  
          comprehensive list of findings and recommendations to combat  
          human trafficking.  The report stated, "California bears a moral  
          responsibility to exert leadership, through government and  
          business purchasing practices, to implement and monitor codes of  
          conduct assuring fair and human labor practices throughout their  
          supply chain."  Indeed, California has had stringent procurement  
          policies in place since 2000 which prohibit state agencies from  
          purchasing goods or services produced by or with the benefit of  
          exploitative forms of labor.

          As to whether businesses here in California are powerless to  
          address the presence of human trafficking and slavery in their  
          product supply chains, as some business trade groups have  
          contended, there is ample evidence to the contrary that some  
          respected California businesses, according to the report issued  
          by the California ACTS Task Force, have already taken the lead  
          to adopt their own codes of conduct that set out minimum labor  
          standards for their suppliers and sub-contractors, voluntarily  
          using their substantial economic power to influence labor and  
          human rights practices within their supply chains.  
           
           
           Analysis Prepared by  :  Drew Liebert / JUD. / (916) 319-2334 


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