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.
SB 657
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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
FN: 0006517