BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 1133 (Leno) - Human trafficking: asset forfeiture.
Amended: May 1, 2012 Policy Vote: Public Safety 7-0
Urgency: No Mandate: No
Hearing Date: May 14, 2012 Consultant: Jolie Onodera
This bill does not meet the criteria for referral to the
Suspense File.
Bill Summary: SB 1133 would provide for the following where a
person is convicted of human trafficking of a minor for sexual
purposes:
Authorizes the forfeiture of vehicles, boats, airplanes,
money, negotiable instruments, securities, real property,
or other valuables used for the purpose of facilitating the
crime, as specified.
Authorizes the forfeiture of property acquired through,
or which was received in exchange for, the proceeds of the
crime.
Provides for the distribution of the forfeiture
proceeds, including that 50 percent shall be distributed to
the Victim-Witness Assistance (VWA) Fund for grants to
community organizations serving human trafficking victims
and 50 percent shall be distributed to the General Fund of
the state or county, as specified.
Removes the provision of law specifying distribution of
funds from criminal profiteering asset forfeiture to the
VWA Fund.
Fiscal Impact:
Potential increased state and/or county General Fund
revenues to the extent additional asset forfeiture proceeds
are realized through forfeiture of both the profits and
instrumentalities of the crime.
Unknown, but likely net increase to VWA Fund revenue to
the extent additional asset forfeiture proceeds are
realized through forfeiture of both the profits and
instrumentalities of the crime. Given the relatively few
number of annual convictions specific to human trafficking,
any reduction in VWA Fund revenues received through
existing criminal profiteering asset forfeiture statute is
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expected to be minor.
Potential minor cost increases to the Department of
General Services (DGS) to be offset directly through
revenues from asset forfeiture sales.
Potential annual costs likely less than $50,000 (General
Fund) to the Judicial Branch to the extent additional
forfeiture hearings are held that would not otherwise have
occurred under existing criminal profiteering law.
Background: Under existing law pursuant to criminal asset
forfeiture provisions, forfeiture of the proceeds of the crime
is ordered after conviction and establishment that a defendant
has been engaged in a pattern of criminal profiteering. In the
absence of such a pattern, the amount of property and/or money
from the proceeds of a single crime would likely yield minimal
forfeiture revenue.
Currently, the proceeds of asset forfeiture in cases of human
trafficking of minors for prostitution and the procurement of
minors for prostitution are distributed solely to the VWA Fund
for child sexual exploitation and abuse counseling and
prevention programs. Fifty percent of the funds are granted to
community-based organizations that serve minor victims of human
trafficking.
Proposed Law: This bill creates a new asset forfeiture process
for human trafficking of minors for sexual purposes.
Specifically, this bill:
Provides that where a person had been convicted of
sexual trafficking of a minor, the interest of the
defendant in a vehicle, boat, airplane, money, negotiable
securities, real property, or other thing of value "that
was put to substantial use for the purpose of facilitating"
that crime shall be seized and forfeited.
Provides that any property interest and all proceeds or
property received in exchange for the proceeds from human
trafficking of a minor shall be seized and forfeited.
Provides that property used a family residence or for
other lawful purposes shall not be subject to forfeiture.
Further, any interest in a passenger motor vehicle if there
is a community property interest in the vehicle by a person
other than the defendant and the vehicle is the sole
passenger vehicle for the defendant's immediate family,
shall not be subject to forfeiture.
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Provides for the procedures for filing and litigating
forfeiture action.
Provides that the proceeds of forfeited property shall
be distributed as follows:
o To the innocent purchase or holder of a
specified security interest, up to the amount of the
person's interest.
o To the applicable government entity for the
costs of selling the property.
o 50 percent to the General Fund of the state or
county, depending on whether the Attorney General or
the district attorney prosecuted the case.
o 50 percent to the Victim-Witness Assistance Fund
for grants, as specified, to community-based
organizations that serve human trafficking victims.
Provides that in a proceeding involving human
trafficking under the criminal profiteering asset
forfeiture statute, the proceeds of forfeiture shall be
deposited in the General Fund of the state or county that
prosecuted the case.
Prior Legislation: AB 90 (Swanson) Chapter 457/2011 includes
within the definition of criminal profiteering activity any
crime in which the perpetrator induces, encourages, or
persuades, or causes through force, fear, coercion, deceit,
violence, duress, menace, or threat of unlawful injury to the
victim or to another person, a person under 18 years of age to
engage in a commercial sex act.
AB 12 (Swanson) Chapter 75/2011 requires the court to impose a
special fine of up to $25,000 in a case where a defendant is
convicted of prostitution involving a minor; and provides that
the proceeds of such funds be available, upon legislative
appropriation, to fund programs and services for sexually
exploited minors in the county of conviction.
Staff Comments: By expanding the scope of asset forfeiture
beyond the profits of the crime to include the instrumentalities
of the crime, this bill could result in unknown, but potentially
significant revenue increases to the General Fund of the state
and counties.
Similarly, there would likely be increased revenue to the VWA
Fund to the extent additional asset forfeiture proceeds are
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realized through forfeiture of both the profits and
instrumentalities of the crime. Although the bill's provisions
remove the existing distribution of funds to the VWA Fund from
criminal asset forfeiture proceedings, given the relatively few
number of convictions specific to human trafficking of minors in
recent years, any reduction in VWA Fund revenue received through
existing criminal profiteering asset forfeiture statute is
expected to be minor. The Department of Corrections and
Rehabilitation (CDCR) data indicates only 17 individuals
incarcerated for human trafficking over the past six years, with
nine currently serving their sentences in state prison.
The Judicial Council has indicated the increased asset and
property forfeiture requirements of this bill will likely
increase the courts' review time depending on the complexity of
each case. Assuming an additional four hours per case, the cost
to the Judicial Branch for 10 to 20 additional or extended
hearings is estimated to result in increased costs of
approximately $27,000 to $52,000. Based on the relatively few
number of human trafficking convictions per year and the
assumption that a portion of these cases would have had an asset
forfeiture hearing under existing criminal profiteering law,
increased court costs are estimated to be less than $50,000 per
year.