BILL ANALYSIS                                                                                                                                                                                                    







                      SENATE COMMITTEE ON PUBLIC SAFETY
                             Senator Mark Leno, Chair                A
                             2009-2010 Regular Session               B

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          AB 17 (Swanson)                                             
          As Amended June 2, 2009 
          Hearing date:  July 14, 2009
          Penal Code (URGENCY)
          JM:mc

                            SEXUAL EXPLOITATION OF MINORS 
                                           
                                       HISTORY

          Source:  Alameda County District Attorney

          Prior Legislation: AB 499 (Swanson) - Ch. 358, Stats. 2008
                       AB 22 (Lieber) - Ch.  240, Stats. 2005

          Support:  American College of Obstetricians and Gynecologists;  
                    California Commission on the Status of Women; Capital  
                    Resources Family Impact; Child Abuse Prevention  
                    Center; City of West Hollywood; Concerned Women for  
                    America; County of San Bernardino; Crime Victims  
                    United; Planned Parenthood; Alameda County Supervisor  
                    Lai-Bitker; California Coalition Against Sexual  
                    Assault; Polaris Project; California Family Council 

          Opposition:California Public Defenders Association

          Assembly Floor Vote:  Ayes 77 - Noes 0


                                      KEY ISSUES
           
          SHOULD ABDUCTION OR PROCUREMENT FOR PURPOSES OF PROSTITUTION BE  
          ADDED TO THE LIST OF CRIMES FOR WHICH ASSET FORFEITURE IS  




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                                                            AB 17 (Swanson)
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          ALLOWED UNDER THE CRIMINAL PROFITEERING LAW?

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          SHOULD A FINE OF UP TO $20,000 BE ADDED TO THE FINES AND PENALTIES  
          FOR ABDUCTION AND PROCUREMENT OF A MINOR FOR PURPOSES OF  
          PROSTITUTION AND FOR PROCUREMENT OF A MINOR UNDER THE AGE OF 16 FOR  
          LEWD ACTS?

          SHOULD 50 PERCENT OF THIS ADDITIONAL FINE FOR ABDUCTING OR PROCURING  
          A MINOR FOR PROSTITUTION BE DEPOSITED IN THE VICTIM-WITNESS  
          ASSISTANCE FUND AND BE GRANTED TO COMMUNITY-BASED ORGANIZATIONS THAT  
          SERVE MINOR VICTIMS OF HUMAN TRAFFICKING, WITH THE BALANCE OF THE  
          FINE TO BE DEPOSITED IN THE VICTIM-WITNESS ASSISTANCE FUND, AS  
          SPECIFIED?



                                       PURPOSE

          The purposes of this bill are to 1) add abduction or procurement  
          for prostitution to the criminal profiteering asset forfeiture  
          law; 2) provide that the court may impose a fine of up to  
          $20,000, in addition to any other fines and penalties, where the  
          defendant has been convicted of abduction of a minor for  
          purposes of prostitution or procurement of a minor under the age  
          of 16 for lewd conduct; and 3) provide that 50 percent of the  
          additional fine shall be deposited in the Victim-Witness  
          Assistance Fund for purposes of grants to community-based  
          organizations that serve minor victims of human trafficking.

          Crimes of Sexual Exploitation of Minors Generally; Special Fines  
          in such Cases
           
          Existing law  provides that the California Emergency Management  
          Agency (CalEMA) shall make grants to child sexual exploitation  
          and abuse victim counseling centers and prevention programs.   
          Recipients shall provide appropriate counseling and referral  




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          services and maintain other standards or services as determined  
          by the advisory committee (Pen.  13836.) 

          Existing law  provides that a person convicted of pimping,  
          pandering, or procurement (Pen. Code  266h, 266i or 266j)  
          shall be subject to a fine not to exceed $5,000, in addition to  
          any other fine or penalty.  The court shall consider any  
          relevant factors, such as the seriousness of the offense, profit  
          made by the defendant, and the losses suffered by the victim.   
          These fines shall be deposited in the Victim-Witness Assistance  
          Fund for child sexual exploitation and abuse counseling centers  
          and prevention programs.  (Pen. Code  266, subd. (k).)

           Existing law  states that any person who knowingly derives  
          support from the earnings of a prostitute, or from money derived  
          from any keeper of a place of prostitution, or who solicits or  
          receives compensation for soliciting for a prostitute, is guilty  
          of pimping, a felony.  Pimping is punishable by a state prison  
          term of three, four, or six years.  Where the crime involves a  
          minor under the age of 16, the prison term is three, six or  
          eight years.  (Pen. Code  266h, subd. (a).)  

           Existing law  states any person who does any of the following is  
          guilty of pandering, a felony, and shall be punishable by a  
          prison term of three, four, or six years.  The prison term is  
          three, six or eight years where the crime involved a minor under  
          the age of 16.  (Pen. Code  266i, subd. (a)):

                 Procures another person for the purpose of prostitution.
                 Causes, induces, et cetera, another person to become a  
               prostitute.
                 Procures another person a place in a house or place of  
               prostitution.
                 Persuades or encourages a person to remain in a house or  
               place of prostitution through promises, threats, or scheme.
                 Procures another person for prostitution by fraud,  
               duress, abuse of confidence or authority.
                 Commercial exchange in connection with procuring another  
               person for prostitution.





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           Existing law  provides that any person who intentionally  
          transports, provides, et cetera, a child under the age of 16 to  
          another person for the purpose of any lewd or lascivious act  
          (Pen. Code  288) is guilty of the felony of procurement.  The  
          crime includes offers to procure.  This crime is also committed  
          where a person causes, induces, or persuades a child under the  
          age of 16 to engage in lewd or lascivious acts.  Procurement of  
          a child under the age of 16 is punishable by a prison term of  
          three, six, or eight years, and by a fine not to exceed $15,000.  
           (Pen. Code  266j.)

           Existing law  provides that any person, who takes a minor from  
          his or her parents or guardians without consent and for purposes  
          of prostitution, is guilty of a felony, punishable by a prison  
          term of 16 months, two years, or three years and a fine of up to  
          $2,000.  (Pen. Code  267.)

           Existing law  provides that any person who abducts or  
          fraudulently induces a person for purposes of prostitution is  
          guilty of a felony, punishable by a fine of $2,000 and a prison  
          term of 16 months, two years or three years.  (Pen. Code   
          266a.)

           This bill  creates an additional fine not to exceed $20,000 for  
          abduction of a minor for purposes of prostitution and  
          procurement of a minor under the age of 16 for purposes of lewd  
          acts. 

           This bill  specifies that 50 percent of the additional fine  
          imposed for a conviction for abduction of a minor for  
          prostitution or procuring a minor under the age of 16 for lewd  
          acts shall be deposited in the Victim-Witness Assistance Fund  
          and shall be granted to community-based organizations that serve  
          minor victims of human trafficking.  

          Criminal Profiteering Forfeiture Crimes - Inclusion of Abduction  
          or Procurement by Fraudulent Inducement for Purposes of  
          Prostitution
          
           Existing law  includes the criminal profiteering asset forfeiture  




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          law.  Criminal profiteering forfeiture applies where the  
          defendant is convicted of a specified offense and the defendant  
          has engaged in a pattern of criminal profiteering activity, as  
          specified.  (Pen. Code  186.3).  The following assets or  
          property is subject to forfeiture:

                 Any property interest whether tangible or intangible,  
               acquired through a pattern of criminal profiteering  
               activity.
                 All proceeds of a pattern of criminal profiteering  
               activity, which property shall include all things of value  
               that may have been received in exchange for the proceeds  
               immediately derived from the pattern of criminal  
               profiteering activity.  

           Existing law  includes human trafficking within the criminal  
          asset forfeiture law.  (Pen. Code  186.2, subd. (b) (28).)

           Existing law  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 prostitution related  
          offenses, use of minor in producing or distributing obscene  
          material or child pornography, extortion, or to obtain forced  
          labor or services, is guilty of human trafficking.  (Pen. Code   
          236.1, subd. (a).)

          Existing law  states that forfeited cash and proceeds of the sale  
          of forfeited property shall be distributed as follows: 

                 To the bona fide or innocent purchaser, conditional  
               sales vendor, or holder of a valid lien, mortgage, or  
               security interest, up to the amount of his or her interest  
               in the property or proceeds, as specified.
                 To the Department of General Services or local  
               governmental entity for all expenditures incurred in  
               connection with the sale of the forfeited property.
                 To the State General Fund or the general fund of the  
               local governmental entity, whichever prosecutes.  (Pen.  
               Code  186.8), except in the child pornography or recycling  
               fraud cases.




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                 To the county children's trust fund or State Children's  
               Trust Fund in the case of child pornography crimes.
                 To a special fund designated in the Public Resources  
               Code in the case of recycling fraud.

           This bill  adds abduction or procurement by fraudulent inducement  
          (of a person of any age) for prostitution to the list of crimes  
          for which a forfeiture of assets can be sought for criminal  
          profiteering.  

           This bill  corrects specified statutory references to the  
          California Emergency Management Agency.

           This bill  contains an urgency clause allowing this bill to take  
          effect immediately upon enactment.
          




                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION
          
          California continues to face a severe prison overcrowding  
          crisis.  The Department of Corrections and Rehabilitation (CDCR)  
          currently has about 170,000 inmates under its jurisdiction.  Due  
          to a lack of traditional housing space available, the department  
          houses roughly 15,000 inmates in gyms and dayrooms.   
          California's prison population has increased by 125% (an average  
          of 4% annually) over the past 20 years, growing from 76,000  
          inmates to 171,000 inmates, far outpacing the state's population  
          growth rate for the age cohort with the highest risk of  
          incarceration.<1>

          ---------------------------
          <1>  "Between 1987 and 2007, California's population of ages 15  
          through 44 - the age cohort with the highest risk for  
          incarceration - grew by an average of less than 1% annually,  
          which is a pace much slower than the growth in prison  
          admissions."  (2009-2010 Budget Analysis Series, Judicial and  
          Criminal Justice, Legislative Analyst's Office (January 30,  
          2009).)



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          In December of 2006 plaintiffs in two federal lawsuits against  
          CDCR sought a court-ordered limit on the prison population  
          pursuant to the federal Prison Litigation Reform Act.  On  
          February 9, 2009, the three-judge federal court panel issued a  
          tentative ruling that included the following conclusions with  
          respect to overcrowding:

               No party contests that California's prisons are  
               overcrowded, however measured, and whether considered  
               in comparison to prisons in other states or jails  
               within this state.  There are simply too many  
               prisoners for the existing capacity.  The Governor,  
               the principal defendant, declared a state of emergency  
               in 2006 because of the "severe overcrowding" in  
               California's prisons, which has caused "substantial  
               risk to the health and safety of the men and women who  
               work inside these prisons and the inmates housed in  
               them."  . . .  A state appellate court upheld the  
               Governor's proclamation, holding that the evidence  
               supported the existence of conditions of "extreme  
               peril to the safety of persons and property."  
               (citation omitted)  The Governor's declaration of the  
               state of emergency remains in effect to this day.

               . . .  the evidence is compelling that there is no  
               relief other than a prisoner release order that will  
               remedy the unconstitutional prison conditions.

               . . .

               Although the evidence may be less than perfectly  
               clear, it appears to the Court that in order to  
               alleviate the constitutional violations California's  
               inmate population must be reduced to at most 120% to  
               145% of design capacity, with some institutions or  
               clinical programs at or below 100%.  We caution the  
               parties, however, that these are not firm figures and  
               that the Court reserves the right - until its final  
               ruling - to determine that a higher or lower figure is  
               appropriate in general or in particular types of  




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               facilities.

               . . .

               Under the PLRA, any prisoner release order that we  
               issue will be narrowly drawn, extend no further than  
               necessary to correct the violation of constitutional  
               rights, and be the least intrusive means necessary to  
               correct the violation of those rights.  For this  
               reason, it is our present intention to adopt an order  
               requiring the State to develop a plan to reduce the  
               prison population to 120% or 145% of the prison's  
               design capacity (or somewhere in between) within a  
               period of two or three years.<2>

          The final outcome of the panel's tentative decision, as well as  
          any appeal that may be in response to the panel's final  
          decision, is unknown at the time of this writing.

           This bill does not appear to aggravate the prison overcrowding  
          crisis outlined above.

                                      COMMENTS

          1.  Need for This Bill  

          According to the author:

               We are facing a modern day slave trade in our cities  
               across this state and across the nation.  Countless  
               children, from foster youth to runaways from more  
               affluent neighborhoods are being trapped, sold and  
               mercilessly abused for profit.  There are even reports  
               that the number of children kidnapped for sexual  
               ----------------------
          <2>  Three Judge Court Tentative Ruling, Coleman v.  
          Schwarzenegger, Plata v. Schwarzenegger, in the United States  
          District Courts for the Eastern District of California and the  
          Northern District of California United States District Court  
          composed of three judges pursuant to Section 2284, Title 28  
          United States Code (Feb. 9, 2009).



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               exploitation has increased.  Current financial  
               penalties against traffickers are failing to stem the  
               growing trade in underage youth.  We need to make this  
               enterprise a losing proposition for everyone involved.

          2.  Criminal Profiteering Asset Forfeiture Law  

                 Procedure:  Criminal profiteering asset forfeiture is a  
               criminal proceeding held in conjunction with the trial of  
               the underlying criminal offense.  Often, the same jury that  
               heard the criminal charges determines whether the  
               defendant's assets were the ill-gotten gains of criminal  
               profiteering.  As a practical matter, the prosecution must  
               assemble its evidence for the forfeiture matter  
               simultaneously with the evidence of the crime.  In  
               contrast, drug asset forfeiture is a separate civil action.  
                Except where the property forfeited is cash of value of at  
               least $25,000 a conviction for an underlying drug offense  
               is required.  However, the rules of civil discovery and  
               procedure apply.  The prosecution can conduct substantial  
               civil discovery to determine the extent of the defendant's  
               assets.

                 Proceeds:  Under existing law the forfeited proceeds of  
               criminal profiteering are placed in the county general fund  
               with no directions for use.  There are exceptions for  
               forfeiture in child pornography cases and in crimes  
               concerning the state recycling program.  In child  
               pornography cases, the money is deposited in the county's  
               children's trust fund or the State Children's Trust Fund  
               for child abuse and neglect prevention and intervention.   
               Recycling fraud forfeiture proceeds are deposited in a  
               special account created under the Public Resources Code.   
               (Pen. Code  186.8; Welf. Inst. Code  18966 and 18969.)

                 Forfeiture under this Bill:  This bill also allows the  
               proceeds of abduction or procurement by fraudulent  
               inducement (of a person of any age) for purposes of  
               prostitution to be forfeited where those crimes are part of  
               a pattern of criminal profiteering.  The prospect of losing  




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               any profit obtained from exploitation of persons for the  
               sex trade may deter some from taking the risks associated  
               with this criminal enterprise. 

          3.  Proceeds from Forfeitures Proceedings in Cases Involving  
            Sexual Exploitation of Minors  

          It appears that one of the goals of the author is to increase  
          services for minors who have been exploited and trafficked for  
          the sex trade.  The bill authorizes a fine of up to $20,000  
          where the defendant has been convicted under Penal Code Section  
          266j (procurement of a child under the age of 16 for lewd acts)  
          and Penal Code Section 267 (abduction of a minor for  
          prostitution).  The proceeds of the fine would be deposited in  
          the Victim-Witness Assistance Fund, to be available to fund  
          efforts to prevent child sexual exploitation and to counsel  
          victims.  Further, the bill provides that 50 percent of the  
          proceeds of the special fine shall be granted to community-based  
          organizations that serve minor victims of human trafficking.  

          This bill also adds abduction (of a person of any age) for  
          purposes of prostitution to the criminal profiteering asset  
          forfeiture law.  Human trafficking is currently within the  
          criminal asset forfeiture law.  Human trafficking essentially  
          involves restricting another person's liberty for purposes of a  
          specified crime of exploitation.  Included as underlying crimes  
          in human trafficking are enticing a minor into prostitution  
          (Pen. Code  266), pimping and pandering a minor (Pen. Code   
          266h), pandering involving a minor (Pen. Code  266i), and  
          abduction of a minor for purposes of prostitution (Pen. Code   
          267).  In a human trafficking forfeiture proceeding, the profits  
          of sexually exploiting minors are distributed to the general  
          fund of the county of prosecution.  Arguably, this would not  
          serve the author's intent to increase funding for programs  
          serving sexually exploited children.

          Perhaps the bill should provide that forfeited proceeds of  
          crimes involving sexual exploitation of minors should be  
          deposited in the Victim-Witness Assistance Fund and used for  
          victims of child sexual exploitation.  The proceeds could be  




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          used for such purposes either if 1) the defendant was convicted  
          of sexually exploiting minors under the human trafficking  
          statute, or 2) the defendant was directly convicted of specific  
          pimping or prostitution offense involving a minor.  


          SHOULD FORFEITED PROCEEDS OF CRIMES INVOLVING THE SEXUAL  
          EXPLOITATION OF MINORS BE DEPOSITED IN THE VICTIM-WITNESS  
          ASSISTANCE FUND AND USED TO FUND PROGRAMS FOR MINORS WHO ARE THE  
          VICTIMS OF SEXUAL EXPLOITATION?
            
          4.  Payment and Collection Issues - Direct Restitution Needs for  
            Victims of Child Sexual Exploitation  

          This bill would include abduction and procurement (of a person  
          of any age) for prostitution to the list of crimes in criminal  
          profiteering forfeiture law.  The bill also authorizes the court  
          to impose a special fine of up to $20,000, in addition to the  
          maximum fine of up to $5,000, where the defendant is convicted  
          of these abduction or procurement crimes.  Criminal fines are  
          nearly quadrupled through the addition of penalty assessments of  
          approximately 280 percent of the base fine.  Where the court  
          imposed the maximum statutory fine of $20,000, the actual fine  
          would be $76,000.  The law requires the court to order a  
          defendant to pay direct restitution to the victim for his or her  
          losses.  Finally, the court must impose a restitution fine of  
          from $200 to $10,000.  Restitution fines are deposited in the  
          Victims of Crime Fund to reimburse victims of violent crime.

          As a practical matter, collection of these fines and forfeitures  
          may be costly and difficult.  Satisfaction of one debt or  
          liability may interfere with collection of the others.  Where  
          the prosecution is successful in obtaining forfeiture of  
          substantial profits from a defendant, he or she may have little  
                                                        money left to satisfy criminal fines.  Direct restitution has  









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          priority<3> over other debts of a defendant, but victims often  
          must collect restitution on their own.  Collection of fines from  
          defendants could impair a victim's efforts to collect  
          restitution, particularly where the victim has been traumatized  
          by the crime.

          SHOULD THE COURT BE DIRECTED TO DETERMINE WHETHER THE VICTIM IS  
          IN NEED OF SPECIAL SERVICES, APPROPRIATE FOR A VICTIM OF HUMAN  
          TRAFFICKING, THAT CAN BE FUNDED THROUGH RESTITUTION, BEFORE THE  
          COURT ORDERS THE ADDITIONAL FINE?

          5.  2006 California Research Bureau Study on Penalty Assessments,  
            Revenue Distribution and Collection of Fines  

          In 2006, the California Research Bureau studied collection of  
          criminal fines. The Bureau noted that criminal fines and  
          penalties have climbed steadily in recent decades.  Government  
          entities tasked with collecting these fines - typically a county  
          revenue office - have realized diminishing returns from  
          collection efforts.  Government resources can be wasted in  
          futile collection attempts.  The fines and forfeitures  
          applicable to procuring and abducting minors for purposes of  
          prostitution may provide an example of this problem.  Simply  
          put, criminal defendants can generally not produce a substantial  
          flow of money for fines.  That well will quickly run dry.  














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          ---------------------------
          <3>   The California Constitution states that all payments,  
          money or property taken from a convicted defendant shall first  
          be applied to pay direct restitution to the victim of the crime.  
           (Cal. Const. art. 1,  28 (b)(13)(C).)










          The 2006 Research Bureau report noted:

               California now has dedicated funding streams for over  
               269 separate court fines, fees, forfeitures,  
               surcharges and penalty assessments.  ?  These fines,  
               fees, forfeitures (bail defaults or judgments and  
               damages), surcharges, and penalties appear in statutes  
               in 16 different ? codes and are in addition to the  
               many fees, fines, and special penalties that local  
               governments may impose on most offenses.

               As more surcharges and penalties have been imposed,  
               the process has become even more complicated.  County  
               courts must now maintain two separate state accounts,  
               and a state Judicial Council account, and one local  
               penalty account from which monthly deposits are made  
               into ten different state and five different county  
               government sub-funds.  This does not include the  
               special assessment penalty accounts imposed on drug  
               and alcohol and domestic violence violators. 

               Court clerks and, in turn, county auditors are  
               responsible for maintaining detailed records of  
               payment from individual offenders and transmitting  
               payments to the state. Our survey found that county  
               courts and collection agencies use a variety of  
               methods to collect unpaid debt from violators who fail  
               to comply with payment schedules. This has led to  
               uneven collection practices from county-to-county.  As  
               a result, offenders are being treated differently in  
               how their debt is collected in different counties. 

               ? According to survey comments received from county  
               court clerks and county collection agencies,  
               simplifying the distribution process by eliminating  
               dedicated funds would also improve the collection  
               process, because there would be fewer accounts to  
               maintain and distribute.





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          Each criminal fine is increased by penalty assessments of  
          approximately 280 percent.  The penalty assessments are added to  
          the fine that is set out in the penalty provision of the crime.   
          Where the court imposes a $1,000 fine - the standard maximum for  
          a misdemeanor - the defendant's actual liability would be  
          $3,800.

          The penalty assessment calculations are as follows:

          Base Fine:                         $20,000 

          Penal Code  1464 Assessment:      $20,000($10 for every $10 in  
          fines)
          Penal Code  1465.7 Assessment:              $  4,000  (20%  
          surcharge)
          Penal Code  1465.8 Assessment:              $       20($20 fee  
          per fine) 
          Government Code  70372 Assessment:          $10,000($5 for  
          every $10 in fines) 
          Government Code  70373 Assessment:          $       30($30 fee  
          per each conviction)
          Government Code  76000 Assessment:     $14,000  ($7 for every  
          $10 in fines)
          Government Code  7600.5 Assessment:    $  4,000   ($2 for every  
          $10 in fines)
          Government Code  76104.6 Assessment:        $  2,000($1 for  
          every $10 in fines)
          Government Code  76104.7 Assessment:         $  2,000($1 for  
          every $10 in fines)

          Arguably, the fine imposed under this bill would add to the  
          complication and confusion in the accounting, collection and  
          distribution of the fine.  A special fine would likely be paid  
          in installments, as are most fines and assessments.

          WILL FINES AND OTHER LIABILITIES IMPOSED ON DEFENDANTS CONVICTED  
          OF ABDUCTING AND PROCURING MINORS UNDER THE AGE OF 16 FOR  
          PROSTITUTION BE DIFFICULT TO COLLECT?














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