PRESS STATEMENTS

FOR IMMEDIATE RELEASE 

Assemblymember Stefani Introduces AB 1245: A High-Impace Reform to Stop Human Trafficking in California's Procurement System

Sacramento, CA — Today, Assemblymember Stefani introduced AB 1245, urgent and long-overdue legislation to stop labor trafficking from infiltrating California’s public supply chains. After AB 381 stalled in the Senate Appropriations Committee last year, AB 1245 returns stronger, closing dangerous gaps that have allowed goods produced with forced labor to slip—unchecked—into the state’s procurement system.

“California’s purchasing power should never be used to fuel forced labor or human trafficking,” said Assemblymember Catherine Stefani. “AB 1245 closes dangerous gaps in our procurement system and ensures taxpayer dollars are spent in a way that reflects our values, our laws, and our responsibility to protect workers from exploitation.”

California is the 4th largest economy on the planet, commanding a purchasing budget of nearly $300 billion. Yet the state still lacks basic anti-trafficking safeguards the federal government has already required for nearly a decade. Under current law, companies selling to California are not required to:

• Maintain and verify anti-trafficking policies,
• Provide compliance certification plans or ensure their subcontractors meet trafficking-prevention standards, or
• Disclose and immediately remediate labor trafficking violations in their supply chains.

This regulatory void has real-world consequences. Just last month, Hyundai and Kia were sued for supplying vehicles to at least 15 California counties, cities, and public agencies—vehicles allegedly produced with child labor, forced labor, and coerced prison labor. Impacted jurisdictions include:

City and County of San Francisco, San Diego County, Santa Cruz County, Stanislaus County, San Luis Obispo County, Sacramento County, Placer County, City of Sunnyvale, City of Tustin, City of Taft, City of Davis, Sacramento Area Sewer District, Sacramento Municipal Utility District, and Hacienda La Puente Unified School District.

Had AB 1245—or its predecessor, AB 381—been enacted earlier, these public contracts would have required mandatory compliance plans, subcontractor certifications, and enforceable remediation. Taxpayer dollars would not have been allowed to subsidize exploitation.

“AB 1245 is survivor-informed, evidence-based reform that finally closes dangerous loopholes in state law,” Said Aradhana Tiwari, Senior Policy Counsel, Sunita Jain Anti-Trafficking Initiative at Loyola Law School. “It targets the very subcontracting practices that enabled Hyundai and Kia to link forced labor and child labor to goods sold in California. At minimum, this bill would have empowered the state to demand accountability, require remediation, and ensure exploited workers were made whole. With AB 1245, California cannot look the other way—we can set a clear expectation that taxpayer dollars will never fund exploitation.”

Key Provisions of AB 1245

AB 1245 brings California’s procurement code in line with proven federal safeguards and international best practices:

• Mandatory Compliance Plans
  Required for contracts of $550,000 or more, detailing robust anti-trafficking measures.
• Expanded Certification Requirements
  Includes trafficking-prevention prohibitions, broader forced-labor definitions, and a “knew or should have known” liability standard.
• Worker Protections
  Contractors must provide contracts in workers’ native languages, prohibit retention of identity documents, and establish accessible complaint mechanisms.
• Subcontractor Oversight
  Mandatory subcontractor compliance and certification throughout the supply chain.
• Sanctions with Teeth
  Contracts may be voided, payments suspended, and subcontractors terminated when violations are uncovered.

Why It Matters — And Why It Must Pass Now

California currently holds nearly 4,000 contracts for goods in industries at high risk of labor trafficking—including garments, electronics, agriculture, and raw minerals.

Passing AB 1245 will:

• Prevent forced labor from entering state contracts,
• Protect vulnerable workers globally and locally,
• Ensure taxpayer dollars never allow exploitation, and
• Position California as the national leader in ethical procurement ahead of major events including the 2028 Olympics and FIFA World Cup.

About the Sunita Jain Anti-Trafficking Initiative at Loyola Law School

The Sunita Jain Anti-Trafficking Initiative at Loyola Law School is a survivor-centered advocacy and policy reform project dedicated to advancing systemic change, strengthenging protections, and reframing public understanding of justice and safety.

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