BILL ANALYSIS
SENATE JUDICIARY COMMITTEE
Senator Ellen M. Corbett, Chair
2009-2010 Regular Session
SB 657
Senator Steinberg
As Introduced
Hearing Date: April 21, 2009
Civil Code; Government Code
KB:jd
SUBJECT
Human Trafficking
DESCRIPTION
This bill would, among other things, beginning January 1, 2011,
require retail sellers and manufacturers doing business in the
state to develop, maintain, and implement policies related to
their compliance with federal and state law regarding the
eradication of slavery and human trafficking from their supply
chain.
BACKGROUND
Human trafficking involves the 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. According to the January 2005 U.S. Department of
State's Human Smuggling and Trafficking Center report, "Fact
Sheet: Distinctions Between Human Smuggling and Human
Trafficking," there is an estimated 600,000-800,000 men, women,
and children trafficked across international borders each year.
Of these, approximately 80% are women and girls and up to 50%
are minors.
In 2005, the Legislature enacted the California Trafficking
Victims Protection Act (AB 22 (Lieber), Chapter 240, Statutes of
2005) (Act). This Act established civil and criminal penalties
for human trafficking and allowed for forfeiture of assets
derived from human trafficking. AB 22, along with SB 180,
(Kuehl, Chapter 239, Statutes of 2005) also established the
(more)
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California Alliance to Combat Trafficking and Slavery
(California ACTS) Task Force. The Task Force was charged with
conducting a thorough review of California's response to human
trafficking and to report its findings to the Governor, Attorney
General, and the Legislature.
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. "
This bill would require the business community to pro-actively
prevent forced labor by using their economic leverage to
influence human rights abuse practices within their supply
chain, and would enhance general awareness among the citizens of
the state.
CHANGES TO EXISTING LAW
Existing federal law establishes the crimes of kidnapping in
interstate or foreign commerce, peonage, slavery and trafficking
in persons, and provides for criminal and civil penalties. (18
U.S.C. Secs. 1201, 1581-1595.)
Existing federal law the Victims of Trafficking and Violence
Protection Act of 2000, acknowledges the crime of human
trafficking, and delineates various federal actions to combat
trafficking, punish perpetrators, and provides services to
victims of trafficking. (22 U.S.C. Sec. 7100 et seq.)
Existing state law makes human trafficking a crime. (Penal Code
Sec. 236.1.)
Existing state law , the California Trafficking Victims
Protection Act, allows a victim of human trafficking to bring a
civil action for actual damages, compensatory damages, punitive
damages, injunctive relief, or any other appropriate relief.
(Civil Code Sec. 52.5.)
Existing state law generally regulates various business
activities and practices, including those of retail sellers and
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manufacturers of products.
This bill would, beginning January 1, 2011, require retail
sellers and manufacturers doing business in the state to
develop, maintain, 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 require that the policy be posted on the retail
seller's or manufacturer's Internet Web site and be made
available in writing upon request by a consumer.
This bill would require the policy, at a minimum, include these
two elements: (1) that the company and all suppliers in its
supply chain will comply with the laws regarding slavery and
human trafficking in the countries in which they do business;
(2) that where slavery and human trafficking is found in its
supply chain, it will seek eradication rather than ceasing
business in that area.
This bill would exempt retail sellers or manufacturers having
less than $2,000,000 in annual sales.
This bill would provide that the exclusive remedy for a
violation of the bill's provisions shall be an action brought by
the Attorney General for injunctive relief, but would not limit
remedies that may be sought for violation of other state or
federal laws.
This bill would establish a nine-member Commission to Combat
Slavery and Human Trafficking as a nonprofit public benefit
corporation, and requires the commission to be funded privately.
The commission would be allowed to accept grants, donations,
and funding from any source, and to charge fees to companies
using its services.
This bill would establish the commission's duties, which include
investigating complaints, training companies in best practices,
reviewing company policies and certifying compliance with best
practices, and awarding companies for exceptional efforts.
This bill would make legislative findings and declarations
regarding the eradication of slavery and human trafficking.
COMMENT
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1. Stated need for the bill
According to the author, the primary goal of this measure is to
highlight the existence of slave-labor and human trafficking
throughout California, and to create an opportunity for
California retailers and manufacturers to demonstrate leadership
in eradicating human trafficking from their supply chains.
Additionally, with the information required of businesses, the
measure empowers consumers to reward companies that proactively
work to eradicate slave-labor and human trafficking.
2. This bill seeks to strengthen the state's public policy
against human trafficking
California, by virtue of its large manufacturing and
service-sector industries, global and economic strength, and
large immigrant population, is a major destination for human
trafficking. Major industries such as apparel, agriculture,
restaurants, and hotels are often targeted by traffickers for
forced labor abuses. Many times these economic sectors are
already lacking in adequate labor protections, which further
increase the potential for human exploitation.
According to the report issued by the California ACTS Task
Force, some industries and business owners have adopted codes of
conduct that set out minimum labor standards for their suppliers
and sub-contractors, thereby using economic leverage to
influence labor and human rights practices within their supply
chain. This bill would require all of California's large
retailers and manufacturers to make similar efforts to eradicate
slavery and human trafficking from their supply chain.
Further, by requiring manufacturers and retailers to post their
policies on their Internet Web sites or provide written copies
upon request, this bill would ensure that consumers are provided
with the information necessary to make responsible decisions
about their choice in products. Thus, both businesses and
consumers would be in a position to exert their economic power
and advocate for social change.
3. This bill would make an exemption for small businesses
In consideration of the ability of the state's small
manufacturers and retailers to meet the requirements of this
bill, an exemption was created for a retail seller or
manufacturer having less than $2,000,000 in annual sales.
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However, this exemption does not alleviate small business from
actually complying with federal and state law on human
trafficking; rather it recognizes that they may not have the
same type of ability or resources to exert economic influence on
their suppliers as some of their larger counterparts.
4.The exclusive remedy for a violation of this bill would be an
action brought by the Attorney General for injunctive relief
An injunction is a remedy in the form of a court order where a
party is required to do, or to refrain from doing specific acts.
This bill would provide that the exclusive remedy for a
violation of its provisions would be an action for injunctive
relief brought by the Attorney General. In light of the fact
that this bill seeks to engage the business community to take a
leadership role in the fight to eradicate slavery and human
trafficking, injunctive relief is arguably an appropriate
remedy. In addition, this bill does not limit any other civil
remedies that are available for violations of other state and
federal laws relating to slavery and human trafficking.
5. This bill would establish the Commission to Combat
Slavery and Human Trafficking
This bill would establish a nine-member commission that would be
empowered to investigate complaints about slavery and human
trafficking or the failure of a company to have a police
compliance with the provisions of this bill. The commission
would create educational and training programs to assist
businesses subject to this bill in developing policies to combat
slavery and human trafficking. Also, the commission would be
required to report annually to the Governor and the Legislature
on its activities, and make recommendations on the
implementation of this bill. The commission would be a
nonprofit public benefit corporation and would be privately
funded.
6. Opposition
In opposition, the California Grocers Association writes:
While grocers do not support slavery, human trafficking or
abusive treatment of workers, the bill poses several
difficulties. SB 657 would require all companies to develop
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policies with regard to its entire supply chain, which can
include entities far outside the borders of California or the
United States. Grocers do not have the resources to monitor
supplier employment practices, nor do they have the authority
to enforce state or federal labor law with regard to
suppliers. Further, the bill requires posting of policies on
a company's internet web site but provides no details as to
what constitutes compliance with the requirement or how it
applies to retailers that do not have an internet web site.
Support : Coalition to Abolish Slavery & Trafficking; California
Teamsters Public Affairs Council; California Labor Federation,
AFL-CIO; Planned Parenthood Affiliates of California
Opposition :California Grocers Association
HISTORY
Source :The Alliance to Stop Slavery and End Trafficking
Related Pending Legislation :None Known
Prior Legislation :
SB 1649 (Steinberg) of the 2007-2008 legislative session was
substantively similar to this bill. SB 1649 was held in the
Assembly Appropriations Committee.
SB 180 (Kuehl, Chapter 239, Statutes of 2005) established the
California Alliance to Combat Trafficking and Slavery
(California ACTS) Task Force.
AB 22 (Lieber, Chapter 240, Statutes of 2005) established civil
and criminal penalties for human trafficking and allowed for
forfeiture of assets derived from human trafficking.
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