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Product Sellers into California Market Will Have New Requirements to Disclose their Efforts to Eradicate Slavery and Human Trafficking in Their Global Supply Chain

Commencing on January 1, 2012, retail sellers and manufacturers selling goods in the State of California will have new obligations to disclose their efforts to eradicate slavery and human trafficking from their direct supply chains for tangible goods offered for sale. As we indicated in our earlier September 7th blog, there was a high likelihood that the bill SB 657, entitled the “California Transparency in Supply Chains Act of 2010” might be signed into law by the end of the month. On September 30th, Governor Schwarzenegger signed the bill stating, “I am proud that in California, we have enacted some of the toughest laws to punish human traffickers and protect their victims. This legislation will increase transparency, allow consumers to make better, more informed choices and motivate businesses to ensure humane practices throughout the supply chain.”

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Product Sellers in California May Soon Have New Requirements to Regulate Slavery and Human Trafficking in Their Supply Chain

The California legislature recently approved SB 657 and sent it to Governor Schwarzenegger for his signature. The “California Transparency in Supply Chains Act of 2010” 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.”

The legislation requires companies to post on their websites answers to questions surrounding their supply chain management to help eradicate slavery and human trafficking. The bill would not apply to those companies with less than $100 million in worldwide gross receipts. Companies will need help in determining what the rules are for determining what their gross receipts are.

This bill is sitting on the Governor’s desk, and we should know within the next thirty days if it becomes law or is vetoed. Combined with California’s new green chemistry laws, the burden and responsibility for product sellers in California to know, regulate, monitor and report on their entire global supply chain is increasing, whether it’s a toxic ingredient used, the manufacturing process is used, the types of energy and fuels used or now possibly the labor used.

For more information contact Maureen Gorsen in our Sacrament office, 916-498-3005.

New Digs for the Chemical Safety Board?

April 23, 2010 | Posted by shelly.ellerhorst@alston.com | Topic(s): Legislative & Public Policy (State, Local, Federal, Int'l), Criminal Investigations

The Chemical Safety & Hazard Investigation Board (CSB), an independent federal agency charged with investigating industrial chemical accidents, is looking to open a third office in Houston, Texas. Based in Washington D.C. with a second office in Denver, Colorado, the CSB currently lacks a presence in Texas where many of the nation’s oil refineries are located. Key Democratic lawmakers are requesting $1.3 million in a FY 2010 supplemental appropriations bill to establish the Houston office. While the Obama administration had requested funding for the Houston office in FY 2011, lawmakers believe the funds are needed more immediately to allow the CSB to increase its annual number of investigations. Of the roughly 300 chemical accidents a year the CSB could investigate, its current structure and funding allow it to investigate only about 15 annually (i.e., 5% of all chemical accidents).

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