Thousands of the homeless and displaced families could be given everything from toothbrushes to Louis Vuitton knockoffs if Gov. Arnold Schwarzenegger signs a bill that enables counterfeit goods to be donated to agencies that serve the needy.

Sen. Gil Cedillo (D-Los Angeles) and Los Angeles City Atty. Carmen Trutanich were among the legislation's supporters at a conference held at the Union Rescue Mission in downtown L.A. on Wednesday. 

Cedillo, the bill's legislative author, said counterfeit goods undermine the economy but the items could be used to turn the situation around instead of being destroyed as required currently under state law. "We want to call on the governor to support this . . . Everybody can look very designer like him," Cedillo jokingly said.

"Last year, there was at least $40 million worth of pirated merchandise," Trutanich said as he held up a new book and doll representing examples of items ordered by the court to be destroyed in order to prevent such items from re-entering criminal hands once a case is closed. 

"This is a good humanitarian bill,"  Trutanich said.

Both Houses unanimously approved the bill earlier this month.  Trutanich said the next steps include seeking the cooperation of manufacturers whose goods are counterfeited and providing legal immunity to companies that agree to release the goods back to the public. 

"It is environmentally smart and budget neutral," said Ruth Schwartz, the bill's sponsor and executive director of Shelter Partnership, a nonprofit agency serving the homeless in the L.A. county.  

Nearly 30 Union Rescue Mission families attended the conference on the rooftop where more than 10 pallets, worth $68,000 of donated goods from Shelter Partnership, were given away, including baby diapers, books, toys, children and adult clothes, and personal hygiene supplies.

Union Rescue Mission resident Keven, 51, who attended the conference with his 11-year-old daughter Tahila, received shoes, clothing and toys.

Keven, who lost his home to a fire, said it doesn't make a huge difference if the goods are counterfeit. "If it passes, it passes."

Schwartz said this is Shelter Partnership's first of four distributions of donated goods to Union Rescue Mission this year, but the possibility of including counterfeit goods by next January to its warehouse inventory would allow homeless agencies to allocate budget expenses towards other essential services, such as counseling.

Reverend Andy Bales, chief executive officer of Union Rescue Mission, said the bill has come at a great time because the number of homeless families that come to the mission has beaten Great Depression numbers.

There was a 400-percent increase throughout last year of homeless families who arrived at the mission and more than half of the 223 families who arrived since this January are homeless for the first time because of eviction, job loss and foreclosure, Bales said. 

One of those families who has stayed at URM since April is Susan Reyes', who is due to give birth to her fifth daughter this weekend.

Reyes, her husband, and their four other daughters became homeless after Reyes' husband lost his job and they depleted their savings by staying at hotels. It makes no difference the goods are counterfeit as "long [as] the kids are happy," she said.

After the conference while her daughters grabbed an armful of Hannah Montana and Barbie dolls, Reyes looked for baby clothes.