BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2723 (Chávez) - Juvenile dependency:  prostitution
          
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          |Version: March 18, 2016         |Policy Vote: HUMAN S. 4 - 0,    |
          |                                |          JUD. 6 - 1            |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date:  August 8, 2016   |Consultant: Jolie Onodera       |
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          This bill meets the criteria for referral to the Suspense File. 

          Bill  
          Summary:  AB 2723 would expand the population of children  
          eligible to be adjudged dependents of the juvenile court to  
          include a child who solicits or engages in any act of  
          prostitution or loiters in a public place with the intent to  
          commit prostitution, as specified. 


          Fiscal  
          Impact: 
                  Commercially Sexually Exploited Children (CSEC) program  :  
                Potential future cost pressure (General Fund*) to provide  
               services and grants within the dependency system of care  
               under the CSEC Program, which is administered by the DSS,  
               to the extent services and case management activities are  
               provided by participating counties to a greater number of  
               minors, and/or to the extent additional counties opt into  
               the program in the future. One-time costs, not including  
               services, for an initial screening and assessment for CSEC  
               eligibility of 200 minors is estimated to cost about  
               $125,000 (General Fund*). The 2016 Budget Act provides $19  







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               million General Fund to support this program for the 38  
               counties electing to participate in the program.
                  Local detention facilities  :  Potential local agency cost  
               savings (Local Funds) to juvenile detention facilities, and  
               to county probation departments for services and  
               administration costs for these minors who otherwise may  
               have been arrested and potentially adjudicated as juvenile  
               delinquents or wards of the court. DOJ statistics indicate  
               368 arrests in 2013, 267 arrests in 2014, and 235 arrests  
               in 2015 of minors for the prostitution offenses specified  
               in this measure. DOJ statistics indicate less than 10  
               percent of arrests are ultimately adjudicated in court each  
               year. 
                  *Proposition 30 (2012)  :  Exempts the State from mandate  
               reimbursement for realigned responsibilities for "public  
               safety services" including the provision of child welfare  
               services to prevent child exploitation, however,  
               legislation enacted after September 30, 2012, that has an  
               overall effect of increasing the costs already borne by a  
               local agency for public safety services apply to local  
               agencies only to the extent the State provides annual  
               funding for the cost increase. 
                  Criminal justice system  :  Potentially significant future  
               cost savings (General Fund/Local Funds) to numerous state  
               and local agencies, including but not limited to the  
               courts, state prisons, local correctional facilities, and  
               human services agencies to the extent expanding dependency  
               jurisdiction to these exploited minors and providing them  
               with necessary supportive services results in reductions in  
               future involvement in the criminal justice system.  


          Background:  Existing law provides that a person who solicits or who agrees  
          to engage in or who engages in any act of prostitution is guilty  
          of a misdemeanor. No agreement to engage in an act of  
          prostitution constitutes a violation unless some act, in  
          addition to the agreement, is done within this state in  
          furtherance of the commission of an act of prostitution by the  
          person agreeing to engage in that act. "Prostitution," for  
          purposes of this provision, includes any lewd act between  
          persons for money or other consideration. (Penal Code (PC) §  
          647(b).)
          Existing law provides that it is unlawful for any person to  
          loiter in any public place with the intent to commit  








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          prostitution. This intent is evidenced by acting in a manner and  
          under circumstances which openly demonstrate the purpose of  
          inducing, enticing, or soliciting prostitution, or procuring  
          another to commit prostitution. (PC § 653.22(a).)


          Existing law includes codified legislative findings and declares  
          that a child who is sexually trafficked, as described in Section  
          236.1 of the Penal Code, or who receives food or shelter in  
          exchange for, or who is paid to perform, sexual acts described  
          in Section 236.1 or 11165.1 of the Penal Code, and whose parent  
          or guardian failed to, or was unable to, protect the child, is  
          within the description of this subdivision, and that this  
          finding is declaratory of existing law. These children shall be  
          known as commercially sexually exploited children. (Welfare and  
          Institutions Code (WIC) § 300 (b)(2).)


           Commercially Sexually Exploited Children Program (CSEC) Program
           
          Existing law establishes the federal and state CSEC Program,  
          administered by the Department of Social Services (DSS), to  
          provide prevention, intervention, services, and training for  
          CSEC activities. Counties that elect to participate in state  
          CSEC activities receive funding for specialized services for the  
          CSEC population. (WIC §§ 16524.7-16524.10.) 

          A county electing to receive funding from the CSEC Program is  
          required to submit a plan to DSS describing how the county  
          intends to utilize the funds to be allocated. The county plan is  
          required to include documentation indicating the county's  
          collaboration with county partner agencies and children-focused  
          entities, which must include the formation of a  
          multidisciplinary team to serve children. 

          Each county electing to receive funds from the CSEC Program is  
          additionally required to develop an interagency protocol to be  
          utilized in serving sexually exploited children, to be developed  
          by a team led by a representative of the county human services  
          department and must include representatives from county  
          probation, county mental health, county public health  
          department, the juvenile court. The team may also include, but  
          shall not be limited to, representatives from local education  
          agencies, local law enforcement, survivors of sexual  








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          exploitation and trafficking, and other providers as necessary.  
           
           The initial 35 counties that opted into the program were  
          separated into two tiers: 13 Tier I counties received $25,000 to  
          develop interagency protocols and 22 Tier II counties received  
          enhanced funding based on their prevalence of CSEC youth,  
          completion of a CSEC protocol, and the county's readiness to  
          serve. Shortly after the state program was enacted, federal CSEC  
          legislation was enacted with statewide requirements. 
          Proposed funding levels remained at $14 million General Fund  
          since the program's inception, until the most recent budget  
          augmented annual funding by $5 million, increasing annual  
          support for the CSEC Program to $19 million General Fund.




          Proposed Law:  
           This bill would additionally include a child within the  
          dependency jurisdiction of the juvenile court if the child  
          solicits or engages in any act of prostitution or loiters in a  
          public place with the intent to commit prostitution, and the  
          child's parent or guardian has failed to protect the child. 


          Related  
          Legislation:  SB 1322 (Mitchell) 2016 would prohibit a minor  
          from being arrested for a prostitution offense, as specified,  
          and would provide that a commercially exploited child pursuant  
          to the bill's provisions may be adjudged a dependent child of  
          the court, as specified, and may be taken into temporary custody  
          if the conditions allowing temporary custody without warrant are  
          met. SB 1322 has been ordered to Third Reading on the Assembly  
          Floor.
          SB 1064 (Hancock) 2016 would eliminate the sunset date on the  
          discretionary Sexually Exploited Minors Pilot Project in Alameda  
          and Los Angeles Counties, to operate indefinitely. SB 1064 would  
          expand the definition of "commercially sexually exploited minor"  
          served by the program to include, among others, minors who have  
          been adjudged dependents of the juvenile court. SB 1064 has been  
          ordered to Third Reading on the Assembly Floor.


          AB 1675 (Stone) 2016 would require a probation officer, in a  








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          case in which a minor is alleged to have committed the crime of  
          solicitation, prostitution, or loitering with the intent to  
          commit prostitution, to provide informal supervision for the  
          minor, instead of requesting that the prosecutor file a petition  
          declaring the minor to be a ward of the juvenile court. AB 1675  
          is scheduled to be heard today by this Committee.


          AB 1730 (Atkins) 2016 would authorize a chief probation officer  
          of a county to create a program to provide services to youth  
          within the county relating to the commercial sexual exploitation  
          of youth. Funding for the program is contingent upon an  
          appropriation in the annual Budget Act, to be administered by  
          the Board of State and Community Corrections. AB 1730 is  
          scheduled to be heard today by this Committee.


          AB 1731 (Atkins) 2016 would create the Statewide Interagency  
          Human Trafficking Task Force to gather statewide data on human  
          trafficking, to recommend interagency protocols and best  
          practices for training and outreach to law enforcement, victim  
          service providers, and other state and private sector employees  
          likely to encounter sex trafficking, and to evaluate and  
          implement approaches to increase public awareness about human  
          trafficking. AB 1731 is scheduled to be heard today by this  
          Committee.


          AB 1760 (Santiago) 2016 would have directed a peace officer who  
          determines that a minor is a victim of human trafficking to  
          report such abuse, consult with a child welfare worker about a  
          safe placement for the minor, and transport the minor to such  
          placement, unless the minor is otherwise arrested. AB 1760 was  
          held on the Suspense File of the Assembly Appropriations  
          Committee.


          SB 826 (Committee on Budget and Fiscal Review) Chapter 23/2016,  
          the Budget Act of 2016, among its numerous provisions,  
          appropriates $14 million General Fund to support the CSEC  
          program.


          Prior Legislation:  SB 855 (Committee on Budget and Fiscal  








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          Review) Chapter 29/2014 established the CSEC program, and  
          authorized annual state funding for county agencies electing to  
          participate in the program to provide services to child victims  
          of commercial sexual exploitation.




          Staff  
          Comments:  By revising the definition of "commercially sexually  
          exploited children" within WIC § 300(b)(2) to include children  
          who have engaged in prostitution or loitering with the intent to  
          engage in prostitution, this bill could potentially result in  
          additional children becoming eligible under the dependency  
          system of care. 
          Based on information from the DOJ, over 200 arrests of minors  
          for the prostitution offenses specified in this measure occurred  
          in 2015. To the extent these minors would instead be considered  
          under dependency vs. delinquency jurisdiction of the juvenile  
          courts, the one-time costs, not including services, for an  
          initial screening and assessment for eligibility under the CSEC  
          program for 200 minors is estimated to cost about $125,000  
          (General Fund). To the extent these minors are adjudged  
          dependents of the juvenile court, additional future costs to  
          provide services and grants within the dependency system of care  
          under the CSEC Program could be incurred.
           
           This bill could potentially result in significant future cost  
          savings to numerous state and local agencies, including but not  
          limited to the courts, state prisons, local correctional  
          facilities, and human services agencies to the extent expanding  
          dependency jurisdiction to these exploited minors and providing  
          them with necessary supportive services results in reductions in  
          future involvement in the criminal justice system.  


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