BILL NUMBER: SB 657	CHAPTERED
	BILL TEXT

	CHAPTER  556
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2010
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2010
	PASSED THE SENATE  AUGUST 30, 2010
	PASSED THE ASSEMBLY  AUGUST 26, 2010
	AMENDED IN ASSEMBLY  AUGUST 20, 2010
	AMENDED IN ASSEMBLY  JUNE 30, 2010
	AMENDED IN ASSEMBLY  JUNE 23, 2010
	AMENDED IN SENATE  JUNE 1, 2009

INTRODUCED BY   Senator Steinberg
   (Principal coauthor: Assembly Member John A. Perez)
   (Coauthors: Assembly Members Brownley and Saldana)

                        FEBRUARY 27, 2009

   An act to add Section 1714.43 to the Civil Code, and to add
Section 19547.5 to the Revenue and Taxation Code, relating to human
trafficking.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 657, Steinberg. Human trafficking.
   The federal Victims of Trafficking and Violence Protection Act of
2000 establishes an Interagency Task Force to Monitor and Combat
Trafficking, as specified.
   Existing state law makes human trafficking a crime. Existing state
law also allows a victim of human trafficking to bring a civil
action for actual damages, compensatory damages, punitive damages,
injunctive relief, any combination of those, or any other appropriate
relief.
   Existing law generally regulates various business activities and
practices, including those of retail sellers and manufacturers of
products.
   This bill would enact the California Transparency in Supply Chains
Act of 2010, and would, beginning January 1, 2012, require retail
sellers and manufacturers doing business in the state to disclose
their efforts to eradicate slavery and human trafficking from their
direct supply chains for tangible goods offered for sale, as
specified. That provision would not apply to a retail seller or
manufacturer having less than $100,000,000 in annual worldwide gross
receipts. The bill would also make a specified statement of
legislative intent regarding slavery and human trafficking. The bill
would also require 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 that provision, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  This act shall be known, and may be cited, as the
California Transparency in Supply Chains Act of 2010.
  SEC. 2.  The Legislature finds and declares the following:
   (a) Slavery and human trafficking are crimes under state, federal,
and international law.
   (b) Slavery and human trafficking exist in every country,
including the United States, and the State of California.
   (c) As a result of the criminal natures of slavery and human
trafficking, these crimes are often hidden from view and are
difficult to uncover and track.
   (d) In recent years, significant legislative efforts have been
made to capture and punish the perpetrators of these crimes.
   (e) Significant legislative efforts have also been made to ensure
that victims are provided with necessary protections and rights.
   (f) Legislative efforts to address the market for goods and
products tainted by slavery and trafficking have been lacking, the
market being a key impetus for these crimes.
   (g) In September 2009, the United States Department of Labor
released a report required by the Trafficking Victims Protection
Reauthorization Acts of 2005 and 2008 which named 122 goods from 58
countries that are believed to be produced by forced labor or child
labor in violation of international standards.
   (h) Consumers and businesses are inadvertently promoting and
sanctioning these crimes through the purchase of goods and products
that have been tainted in the supply chain.
   (i) Absent publicly available disclosures, consumers are at a
disadvantage in being able to distinguish companies on the merits of
their efforts to supply products free from the taint of slavery and
trafficking. Consumers are at a disadvantage in being able to force
the eradication of slavery and trafficking by way of their purchasing
decisions.
   (j) 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.
  SEC. 3.  Section 1714.43 is added to the Civil Code, to read:
   1714.43.  (a) (1) Every retail seller and manufacturer doing
business in this state and having annual worldwide gross receipts
that exceed one hundred million dollars ($100,000,000) shall
disclose, as set forth in subdivision (c), its efforts to eradicate
slavery and human trafficking from its direct supply chain for
tangible goods offered for sale.
   (2) For the purposes of this section, the following definitions
shall apply:
   (A) "Doing business in this state" shall have the same meaning as
set forth in Section 23101 of the Revenue and Taxation Code.
   (B) "Gross receipts" shall have the same meaning as set forth in
Section 25120 of the Revenue and Taxation Code.
   (C) "Manufacturer" means a business entity with manufacturing as
its principal business activity code, as reported on the entity's tax
return filed under Part 10.2 (commencing with Section 18401) of
Division 2 of the Revenue and Taxation Code.
   (D) "Retail seller" means a business entity with retail trade as
its principal business activity code, as reported on the entity's tax
return filed under Part 10.2 (commencing with Section 18401) of
Division 2 of the Revenue and Taxation Code.
   (b) The disclosure described in subdivision (a) shall be posted on
the retail seller's or manufacturer's Internet 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
manufacturer does not have an Internet Web site, consumers shall be
provided the written disclosure within 30 days of receiving a written
request for the disclosure from a consumer.
   (c) The disclosure described in subdivision (a) shall, at a
minimum, disclose to what extent, if any, that the retail seller or
manufacturer does each of the following:
   (1) Engages in verification of product supply chains to evaluate
and address risks of human trafficking and slavery. The disclosure
shall specify if the verification was not conducted by a third party.

   (2) Conducts audits of suppliers to evaluate supplier compliance
with company standards for trafficking and slavery in supply chains.
The disclosure shall specify if the verification was not an
independent, unannounced audit.
   (3) Requires direct suppliers to certify that materials
incorporated into the product comply with the laws regarding slavery
and human trafficking of the country or countries in which they are
doing business.
   (4) Maintains internal accountability standards and procedures for
employees or contractors failing to meet company standards regarding
slavery and trafficking.
   (5) 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.
   (d) The exclusive remedy for a violation of this section shall be
an action brought by the Attorney General for injunctive relief.
Nothing in this section shall limit remedies available for a
violation of any other state or federal law.
   (e) The provisions of this section shall take effect on January 1,
2012.
  SEC. 4.  Section 19547.5 is added to the Revenue and Taxation Code,
to read:
   19547.5.  (a) (1) Notwithstanding any provision of law, the
Franchise Tax Board shall 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 Section
1714.43 of the Civil Code. The list shall be based on tax returns
filed for taxable years beginning on or after January 1, 2011.
   (2) Each list required by this section shall be submitted annually
to the Attorney General by November 30, 2012, and each November 30
thereafter. The list shall be derived from original tax returns
received by the Franchise Tax Board on or before December 31, 2011,
and each December 31 thereafter.
   (b) Each annual list required by this section shall include the
following information for each retail seller or manufacturer:
   (1) Entity name.
   (2) California identification number.