Sacramento, CA — Today, Assemblymember Catherine Stefani introduced AB 1245, legislation to prevent goods produced through labor trafficking from entering California’s public procurement system. The bill targets gaps in existing oversight that have allowed products made with forced labor to slip into state contracts. AB 1245 strengthens accountability for state contractors and reinforces California’s commitment to ensuring taxpayer dollars are not used to support exploitative labor practices.
“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 world’s fourth-largest economy, with an annual purchasing budget of nearly $300 billion. Yet the state lacks basic anti-trafficking safeguards that the federal government has 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 gap has real-world consequences. Last year, Hyundai and Kia were sued for supplying vehicles to at least 15 California counties, cities, and public agencies—vehicles allegedly produced using child labor, forced labor, and coerced prison labor.
Had AB 1245—or its predecessor, AB 381, a version of the bill introduced last year that did not reach the Governor’s desk—been in effect, these public contracts would have required mandatory compliance plans, subcontractor certifications, and enforceable remediation measures. 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.
