BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 557
                                                                  Page  1


          SENATE THIRD READING
          SB 557 (Yee)
          As Amended  July 8, 2009
          Majority vote 

           SENATE VOTE  :39-0  
           
           PUBLIC SAFETY       7-0         APPROPRIATIONS      16-0        
          
           ----------------------------------------------------------------- 
          |Ayes:|Arambula, Hagman,         |Ayes:|De Leon, Nielsen,         |
          |     |Ammiano, Furutani,        |     |Ammiano,                  |
          |     |Gilmore, Hill, Ma         |     |Charles Calderon, Coto,   |
          |     |                          |     |Davis, Duvall, Fuentes,   |
          |     |                          |     |Hall, Harkey, Miller,     |
          |     |                          |     |John A. Perez, Skinner,   |
          |     |                          |     |Solorio, Audra            |
          |     |                          |     |Strickland, Torlakson     |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Provides that, upon a person being convicted of  
          specified human trafficking provisions, if real property was  
          used to facilitate the offense, that property could be found to  
          be a public nuisance and the remedies applicable under the  
          nuisance or "Red Light Abatement" statutes, as specified, shall  
          apply.  Those remedies include closing the property for one year  
          and a civil fine of up to $25,000.

           EXISTING LAW  :

          1)Provides that any person who deprives or violates the personal  
            liberty of another with the intent to effect or maintain a  
            felony violation of specified sex crimes, extortion, or to  
            obtain forced labor or services is guilty of human  
            trafficking.  If committed against an adult, this offense is  
            punishable by three, four or five years in state prison.  If  
            committed against a minor, this offense is punishable by four,  
            six or eight years in state prison.  

          2)States that buildings used for specified illegal activities  
            are a nuisance which shall be enjoined, abated, and prevented,  
            and for which damages may be recovered, whether it is a public  
            or private nuisance.  









                                                                  SB 557
                                                                  Page  2


          3)Provides that if the existence of a nuisance is established,  
            as specified, an order of abatement shall be entered as a part  
            of the judgment in the case:

             a)   Directing the removal from the building or place of all  
               fixtures, musical instruments and movable property used in  
               conducting, maintaining, aiding, or abetting the nuisance,  
               and directing the sale thereof in the manner provided for  
               the sale of chattels under execution, and the effectual  
               closing of the building or place against its use for any  
               purpose, and that it be kept closed for a period of one  
               year, unless sooner released.  

             b)   If the court finds that any vacancy resulting from  
               closure of the building or place may create a nuisance or  
               that closure is otherwise harmful to the community, in lieu  
               of ordering the building or place closed, the court may  
               order the person who is responsible for the existence of  
               the nuisance to pay damages in an amount equal to the fair  
               market rental value of the building or place for one year  
               to the city or county in whose jurisdiction the nuisance is  
               located.  

             c)   The actual amount of rent being received for the rental  
               of the building or place, or the existence of any vacancy  
               therein, may be considered, but shall not be the sole  
               determinant of the fair market rental value.  Expert  
               testimony may be used to determine the fair market rental  
               value.

             d)   While the order remains in effect as to closing, the  
               building or place is and shall remain in the custody of the  
               court.

             e)   For removing and selling the movable property, the  
               officer is entitled to charge and receive the same fees as  
               he or she would for levying upon and selling like property  
               on execution.

             f)   For closing the premises and keeping them closed, a  
               reasonable sum shall be allowed by the court.

             g)   The court may assess a civil penalty not to exceed  
               $25,000 against any and all of the defendants, based upon  








                                                                  SB 557
                                                                  Page  3


               the severity of the nuisance and its duration.

             h)   One-half of the civil penalties collected pursuant to  
               this section shall be deposited in the Restitution Fund in  
               the State Treasury, and one-half of the civil penalties  
               collected shall be paid to the city in which the judgment  
               was entered, if the action was brought by the city attorney  
               or city prosecutor.  If the action was brought by a  
               district attorney, one-half of the civil penalties  
               collected shall be paid to the treasurer of the county in  
               which the judgment was entered.  

          4)Defines "criminal profiteering activity" as any act made for  
            financial gain or advantage if the act may be charged as one  
            of a number of crimes, including human trafficking.   

          5)Defines "pattern of criminal profiteering activity" as  
            engaging in at least two incidents of criminal profiteering  
            that have the same or a similar purpose, result, principals,  
            victims, or methods of commission, or are otherwise  
            interrelated by distinguishing characteristics; are not  
            isolated events; and were committed as a criminal activity of  
            organized crime.  

          6)Provides that after conviction of the underlying offense, a  
            person may be subject to asset forfeiture if the prior act  
            occurred within 10 years, excluding any period of  
            imprisonment, of the commission of the underlying offense.  

           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee analysis:

          1)Negligible state enforcement-related costs.

          2)Unknown, likely minor, increase in civil fine revenue to local  
            prosecutors and to the state.

           COMMENTS  :   According to the author, "Typically those trafficked  
          are used for two different purposes:  either forced labor or  
          sexual exploitation.  Statistics show that 90% of victims of  
          human trafficking are female.  According to the 2007 report  
          released by the task force investigating human trafficking in  
          California, 47% of victims are used in prostitution, 33% are  
          used in domestic servitude, 5% in sweatshops and 2% in  








                                                                  SB 557
                                                                  Page  4


          agriculture.  Research by the Human Rights Center at the  
          University of California found 57 forced labor operations  
          between 1998 and 2003 throughout California. 

          "SB 557 seeks to further assist victims and law enforcement in  
          California, while providing another deterrent for perpetrators.   
          Specifically, SB 557 allows any real property used to facilitate  
          human trafficking to be declared a public nuisance and seized by  
          the court until the nuisance is abated, and further subjects the  
          trafficker to the costs of the seizure and a civil fine of up to  
          $25,000."

          Please see the policy committee for a full discussion of this  
          bill.
           

          Analysis Prepared by  :    Gabriel Caswell / PUB. S. / (916)  
          319-3744 



                                                                FN: 0001973