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