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Halal meat is prepared according to Muslim dietary laws. It must not contain ingredients Muslims are prohibited from consuming, such as pork products or alcohol.
"Halal is the Islamic equivalent to Jewish kosher, therefore, a sacred necessity for the Islamic faithful," Davis said.
"Muslims consumers, like any other consumers, deserve protection against false advertising," he added.
There are a million Muslims living in California.
California is the fourth state to pass such a legislation, after New Jersey, Minnesota and Illinois.
Several other states, including New York, Texas and Virginia, are considering similar bills.
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