BILL ANALYSIS                                                                                                                                                                                                    �



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          Date of Hearing:   April 10, 2012
          Counsel:        Gabriel Caswell


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                 AB 2466 (Blumenfield) - As Amended:  March 29, 2012
                       As Proposed to be Amended in Committee

           
          SUMMARY  :  Permits the freezing of assets in human trafficking 
          cases prior to the final judgment in the case.  Specifically, 
           this bill  :  

          1)Authorizes prosecuting agencies, at the same time as the 
            filing of a complaint or indictment charging human 
            trafficking, to file a petition for protective relief 
            necessary to preserve property or assets that could be used to 
            pay for remedies relating to human trafficking, including, but 
            not limited to, restitution, and fines.

          2)Specifies the process by which a preliminary injunction, 
            temporary restraining order, or sale of property or assets may 
            be ordered.

           EXISTING LAW  :

          1)Defines "criminal profiteering activity" as any act committed 
            or attempted or any threat made for financial gain or 
            advantage, which act or threat may be charged as a crime under 
            a series of specified criminal acts, including human 
            trafficking.  �Penal Code Section 186.2(28).]  

          2)Provides that any person who deprives or violates the personal 
            liberty of another with the intent to effect or maintain a 
            felony violation of enticement of a minor into prostitution, 
            pimping or pandering, abduction of a minor for the purposes of 
            prostitution, extortion, or to obtain forced labor or 
            services, is guilty of human trafficking.  �Penal Code Section 
            236.1(a).]

          3)States human trafficking of a person over the age of 18 is 
            punishable by imprisonment in the state prison for three, 
            four, or five years.  If the victim of the trafficking was 








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            under 18 years of age at the time of the commission of the 
            offense, that offense is punishable by imprisonment in the 
            state prison for four, six, or eight years.  �Penal Code 
            Section 236.1(b) and (c).]

          4)States unlawful deprivation or violation of the personal 
            liberty of another includes substantial and sustained 
            restriction of another's liberty accomplished through fraud, 
            deceit, coercion, violence, duress, menace, or threat of 
            unlawful injury to the victim or to another person, under 
            circumstances where the person receiving or apprehending the 
            threat reasonably believes that it is likely that the person 
            making the threat would carry it out.  �Penal Code Section 
            236.1(d).]

          5)States any person who solicits or who agrees to engage in or 
            who engages in any act of prostitution is guilty of 
            misdemeanor disorderly conduct.  A person agrees to engage in 
            an act of prostitution when, with specific intent to so 
            engage, he or she manifests an acceptance of an offer or 
            solicitation to so engage, regardless of whether the offer or 
            solicitation was made by a person who also possessed the 
            specific intent to engage in prostitution.  No agreement to 
            engage in an act of prostitution shall constitute a violation 
            of this subdivision unless some act, in addition to the 
            agreement, is done within California in furtherance of the 
            commission of an act of prostitution by the person agreeing to 
            engage in that act.  As used in this subdivision, 
            "prostitution" includes any lewd act between persons for money 
            or other consideration.  �Penal Code Section 647(b).]

          6)States any person who, knowing another person is a prostitute, 
            lives or derives support or maintenance in whole or in part 
            from the earnings or proceeds of the person's prostitution, or 
            from money loaned or advanced to or charged against that 
            person by any keeper or manager or inmate of a house or other 
            place where prostitution is practiced or allowed, or who 
            solicits or receives compensation for soliciting for the 
            person, is guilty of pimping, a felony, and shall be 
            punishable by imprisonment in the state prison for three, 
            four, or six years.  �Penal Code Section 266h(a).]

          7)States any person who, knowing another person is a prostitute, 
            lives or derives support or maintenance in whole or in part 
            from the earnings or proceeds of the person's prostitution, or 








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            from money loaned or advanced to or charged against that 
            person by any keeper or manager or inmate of a house or other 
            place where prostitution is practiced or allowed, or who 
            solicits or receives compensation for soliciting for the 
            person, when the prostitute is a minor, is guilty of pimping a 
            minor, a felony, and shall be punishable as follows:

             a)   If the person engaged in prostitution is a minor over 
               the age of 16 years, the offense is punishable by 
               imprisonment in the state prison for three, four, or six 
               years.

             b)   If the person engaged in prostitution is under 16 years 
               of age, the offense is punishable by imprisonment in the 
               state prison for three, six, or eight years.  �Penal Code 
               Section 266h(b)(1) and (2).]

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement  :  According to the author, "Human 
            trafficking is one of the fastest-growing criminal activities 
            in California. People are being bought, sold and smuggled like 
            modern-day slaves in an illegal multi-billion-dollar industry. 
            Victims of human trafficking often are trapped in lives of 
            misery.  Prosecutors currently have the ability to seize 
            profits and property that were directly connected to the 
            tragic crime of human trafficking, but only after the 
            defendant has been convicted. This bill would give prosecutors 
            another important tool to prevent human traffickers from 
            further profiting from and exploiting their victims, and help 
            victims secure the restitution they are due." 

           2)Author's Amendment  :  The author has proposed a bond provision 
            which would permit the posting of a bond of equal value to the 
            property seized.   
           
           3)Human Trafficking  :  "Human trafficking" is defined as "any 
            person who deprives or violates the personal liberty of 
            another person with the intent of effect or maintains a felony 
            violation of enticement, pimping, pandering, abduction for the 
            purposes of prostitution, employing a minor in sexually 
            explicit material, and extortion."  �Penal Code Section 
            236.1(a).]  The crime of human trafficking was added to the 








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            Penal Code in 2005.  Although all of the crimes listed could 
            be charged individually, the author stated:

          "Human trafficking is one of the most pervasive and damaging, 
            yet unrecognized problems facing our country and our state.  
            Human trafficking is present day slavery, involving the 
            recruitment, transportation, or sale of persons for forced 
            labor.  Through the use of violence, threats, and coercion, 
            enslaved persons may be forced to work in the sex trade, 
            domestic labor, factories, hotels or restaurants, agriculture, 
            peddling, or begging.  Members of these vulnerable populations 
            are actively recruited by traffickers, some of whom are 
            connected to organized crime.  Trafficking recruiters often 
            mislead victims into believing that the opportunities 
            recruiters offer will bring the victims and their loved ones a 
            better life.  Traffickers then use techniques such as debt 
            bondage, isolation from the public, and confiscation of 
            passports, visas, or pieces of identification to keep victims 
            enslaved.  Women and children comprise the majority of 
            trafficking victims.  The low social status of women in many 
            parts of the world facilitates a thriving trafficking 
            industry.  Children are not safe from trafficking and 
            exploitation.  Victims of trafficking report children as young 
            as four years old being sold into slavery, often for sexual 
            purposes.  In 2001, the United States Department of Justice 
            concluded that between 300,000 and 400,000 American children 
            are victims of sexual exploitation every year, many as young 
            as 11 or 12 years of age, some even younger." �Author's 
            Statement, AB 22 (Lieber), Chapter 240, Statutes of 2005.]

           4)Federal Definition of "Human Trafficking"  :  Federal law states 
            in relevant part, "The term 'severe forms of trafficking in 
            persons' means:  sex trafficking in which a commercial sex act 
            is induced by force, fraud, or coercion, or in which the 
            person induced to perform such act has not attained 18 years 
            of age; or the recruitment, harboring, transportation, 
            provision, or obtaining of a person for labor or services, 
            through the use of force, fraud, or coercion for the purpose 
            of subjection to involuntary servitude, peonage, debt bondage, 
            or slavery."  �22 USCS 7102(8)].  Federal law does not require 
            force, fraud or coercion if the victim is under 18 years of 
            age.  Penal Code Section 236.1(f) states, "Legislation finds 
            that the definition of human trafficking in this section is 
            equivalent to the federal definition of a severe form of 
            trafficking found in Section 7102(8) of Title 22 of the United 








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            States Code."  Although there is no indication of such in the 
            legislative history of AB 22, given that Penal Code Section 
            236.1(f) directly cross-references that section of federal 
            law, it is possible that the original statute did contemplate 
            an exception to the fear, fraud or coercion requirement for 
            minors. 

          Moreover, several other states do not require a showing of 
            force, fraud of coercion in commercial sex trafficking cases 
            involving minors.  Those states include Arizona, Delaware, 
            Idaho, Illinois, Iowa, Kansas, Kentucky, Minnesota, 
            Mississippi, Missouri, Nebraska, North Dakota, Tennessee and 
            Vermont. 

          According to the California Alliance to Combat Trafficking and 
            Slavery Task Force, "In October 2000, Congress enacted the 
            Trafficking Victims Protection Act of 2000 (TVPA), Public Law 
            106-386, to prosecute traffickers, protect victims and prevent 
            trafficking from occurring.  Prior to that, no comprehensive 
            federal law existed to protect victims of trafficking or to 
            prosecute their traffickers.  This law made human trafficking 
            a federal crime with severe penalties; created new law 
            enforcement tools to strengthen the prosecution and punishment 
            of traffickers; addressed the means of coercion used by 
            traffickers, including psychological coercion, trickery and 
            the seizure of documents; promoted prevention measures; and 
            made victims of trafficking eligible for benefits and services 
            under federal or state programs once they become certified by 
            the U.S. Department of Health and Human Services (DHHS). 

          "The Trafficking Victims Protection Reauthorization Act of 2003 
            (TVPRA 2003), Public Law 108192, augmented the legal tools 
            that can be used against traffickers, including empowering 
            victims to bring federal civil suits against traffickers for 
            actual and punitive damages.  It also encouraged the nation's 
            state and local law enforcement agencies to participate in the 
            detection and investigation of human trafficking cases.   

          "The law was reauthorized again in 2005 (TVPRA 2005), Public Law 
            109-164, and provided additional anti-trafficking resources, 
            including grant programs to assist state and local law 
            enforcement efforts in combating trafficking in persons and to 
            expand victim assistance programs to U.S. citizens or resident 
            aliens subjected to trafficking.  The number of federal 
            prosecutions against traffickers has increased significantly 








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            since these laws were enacted.  Between 2001 and 2005, U.S. 
            attorneys investigated 555 suspects for violations of federal 
            human trafficking statutes; of investigations closed in that 
            time period, 146 suspects were prosecuted.  Yet, the number of 
            traffickers prosecuted is low considering the 14,500 to 17,500 
            victims estimated to be trafficked into the United States each 
            year. 

          "In order to strengthen the nation's efforts to enforce 
            trafficking laws, the U.S. Department of Justice has 
            encouraged state involvement through the development of the 
            Model State Anti-Trafficking Criminal Statute (2004), designed 
            to ensure a strong partnership between state and federal 
            partners in combating trafficking.  As of the end of July 
            2007, 32 states had passed criminal anti-trafficking laws."  
            �Human Trafficking in California, Final Report (October 2007), 
            p. 21.]

          The California Alliance to Combat Trafficking and Slavery Task 
            Force made the following recommendations: 

          "The California Trafficking Victims Protection Act has added 
            valuable new tools in law enforcement's and prosecutors' 
            arsenal to investigate and prosecute human traffickers.  
            However, the Task Force identified some shortcomings in the 
            law and steps that could strengthen and expand its use as a 
            prosecutorial tool.  These shortcomings include:  (1) 
            California's definition of human trafficking is different than 
            the federal definition, especially as it relates to 
            trafficking protections for minors.  California's definition 
            should be changed to mirror the federal definition and 
            eliminate the elements of force, fraud and coercion if the 
            trafficking victim is a minor.  (2) Penalties for traffickers 
            are lower in California's law than those in federal law.  
            Penalties for traffickers should more closely reflect federal 
            trafficking penalties and penalties for sex crimes under 
            existing state law.  (3) There is no provision in the law that 
            allows counties to file charges in cross-jurisdictional human 
            trafficking cases on behalf of all counties involved, as 
            California law provides in cases of child abuse and domestic 
            violence."  �Human Trafficking in California, Final Report 
            (October 2007), p. 65.]

           5)Domestic Trafficking is an Increasing Problem  :  Although Penal 
            Code Section 236.1 was created due to an increase in women and 








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            girls being shipped into the United States from abroad for 
            purposes of sexual exploitation or forced labor, those girls 
            now live in the United States and are being shuttled from city 
            to city also for sexual exploitation.  According to the 
            Polaris Project, "In 2000, 244,000 American children and youth 
            were estimated to be at risk of child sexual exploitation 
            including commercial sexual exploitation.

          "Victims of human trafficking in the United States also include 
            U.S. citizens and residents trafficked within its borders.  
            Much like the majority of other countries affected by human 
            trafficking, the U.S. has a large internal or 'domestic' 
            component of human trafficking for the purposes of both sexual 
            and labor exploitation.  One of the largest forms of domestic 
            sex trafficking in the U.S. involves traffickers who coerce 
            women and children to enter the commercial sex industry 
            through the use of a variety of recruitment and control 
            mechanisms in strip clubs, street-based prostitution, escort 
            services, and brothels.  Domestic sex traffickers, commonly 
            referred to as 'pimps', particularly target vulnerable youth, 
            such as runaway and homeless youth, and reinforce the reality 
            that the average age of entry into prostitution is 12-13 years 
            old in the U.S.  Recent cases have also demonstrated that 
            labor trafficking of U.S. citizens occurs in locations such as 
            restaurants, the agricultural industry, traveling carnivals, 
            peddling/begging rings, and in traveling sales crews."  
            (Polaris Project, 
            ). 

          According to the sponsor of the bill, the Alameda County 
            District Attorney's Office, Human Exploitation and Trafficking 
            Unit:

          "The commercial sexual exploitation of children is the most 
            hidden form of child abuse in North America today.  It is the 
            Nation's least recognized epidemic.  (Richard Estes, Univ. of 
            Pennsylvania School of Social Work Center for Youth Study).  
            Traffickers target children because of their vulnerability and 
            gullibility as well as the market demand for young victims.  
            Viewing the commercial sexual exploitation of children as 
            prostitution, pimping, and pandering fails to recognize the 
            epidemic size and abusive nature of this rapidly growing 
            problem facing our state and country. 

          "The Commercial sexual exploitation of children is big business. 








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             Sadly, today there is no better return on money than selling 
            a child for sex.  The sale and purchase of children for sex is 
            the second largest industry in our country and has become a 
            multi-billion dollar industry that is expected to surpass the 
            illicit trade in guns and narcotics within ten years."  
            �Dobrisky, Paula J., U.S. Dept. of State, Ending Modern Day 
            Slavery:  U.S. Efforts to Combat Trafficking in Persons (June 
            2004).]  
           
           6)Argument in Support  :  According to the  California Attorney 
            General's Office  , "Under current law, there are provisions 
            that allow prosecutors to seek an order preserving property 
            they believe is subject to forfeiture under the criminal 
            profiteering statutes.  There are, however, no laws to help 
            prevent human trafficking defendants from liquidating and 
            hiding their assets before conviction.  So, under existing 
            law, defendants can render themselves judgment proof, avoid 
            paying Constitutionally mandated restitution, and thereby 
            profit from the reprehensible crime of human trafficking.  AB 
            2466 will remedy this problem by amending the Penal Code to 
            allow a court to order the preservation of assets and property 
            owned by persons charged with human trafficking."   
           
           7)Related Legislation:   AB 2212 (Block) clarifies that buildings 
            or places used for human trafficking can be declared public 
            nuisance, and specifies that half of any civil penalties 
            collected therefrom shall be directed to fund grants for human 
            trafficking victim services and prevention programs.  AB 2212 
            is scheduled to be heard by this Committee today.  

           8)Prior Legislation  :  

             a)   AB 90 (Swanson), Statutes of 2011, Chapter 457, expanded 
               the definition of "criminal profiteering" to include child 
               sexual exploitation and requires proceeds from child sexual 
               exploitation cases to be deposited into the Witness 
               Assistance Fund for use by certain victim counseling 
               centers and prevention programs. 

             b)   AB 22 (Lieber), Statutes of 2005, Chapter 240, 
               established the crime of human trafficking subject to civil 
               and criminal penalties. 

           REGISTERED SUPPORT / OPPOSITION  :   









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           Support 
           
          California Attorney General's Office
          California Catholic Conference  
          California Narcotics Officers' Association
          California Police Chiefs Association
          Coalition to Abolish Slavery and Trafficking
          District Attorney, City and County of San Francisco
          National Association of Social Workers - California Chapter 

           Opposition 
           
          None
           

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