BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  SB 1133|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 1133
          Author:   Leno (D), et al.
          Amended:  5/24/12
          Vote:     21

           
           SENATE PUBLIC SAFETY COMMITTEE  :  7-0, 4/24/12
          AYES:  Hancock, Anderson, Calderon, Harman, Liu, Price, 
            Steinberg

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/14/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Price, 
            Steinberg


            SUBJECT  :    Human trafficking of minors for sexual 
                      purposes:  forfeiture of instrumentalities and 
                      profits of the crime

           SOURCE  :     Attorney General of California


           DIGEST  :    This bill (1) provides that where a person is 
          convicted of human trafficking of a minor for sexual 
          purposes, the instrumentalities used to commit the crime, 
          as specified, and the profits of the crime shall be 
          forfeited; and (2) provides that 50% of the forfeiture 
          proceeds shall be distributed to the Victim-Witness 
          Assistance Fund (VWA Fund) for grants to community 
          organizations serving human trafficking victims and 50% of 
          the proceeds shall be distributed to the General Fund (GF) 
          of the state or county, depending on whether the Attorney 
          General or district attorney prosecuted the matter.
                                                           CONTINUED





                                                               SB 1133
                                                                Page 
          2


           Senate Floor Amendments  of 5/24/12 correct drafting errors 
          and add coauthors.

           ANALYSIS  :    Existing law includes numerous crimes 
          concerning sexual exploitation of minors for commercial 
          purposes.  These crimes include:

             Pimping:  Deriving income from the earnings of a 
             prostitute, deriving income from a place of 
             prostitution, or receiving compensation for soliciting a 
             prostitute.  Where the victim is a minor under the age 
             of 16, the crime is punishable by a prison term of 
             three, six or eight years.  (Penal Code (PEN) Section 
             266h, subds. (a)-(b))

             Pandering:  Procuring another for prostitution, 
             inducing another to become a prostitute, procuring 
             another person to be placed in a house of prostitution, 
             persuading a person to remain in a house of 
             prostitution, procuring another for prostitution by 
             fraud, duress or abuse of authority, and commercial 
             exchange for procurement.  (PEN Section 266i, subd. (a))

             Procurement:  Transporting or providing a child under 
             16 to another person for purposes of any lewd or 
             lascivious act.  The crime is punishable by a prison 
             term of three, six, or eight years, and by a fine not to 
             exceed $15,000.  (PEN Section 266j)

             Taking a minor from his/her parents or guardian for 
             purposes of prostitution.  This is a felony punishable 
             by a prison term of 16 months, two years, or three years 
             and a fine of up to $2,000.  (PEN Section 267)

             Child pornography production:   Using a minor to assist 
             in the making of child pornography for commercial 
             purposes is a felony, with a prison term of three, six, 
             or eight years.  (PEN Section 311.4, subd. (b))

          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 

                                                           CONTINUED





                                                               SB 1133
                                                                Page 
          3

          distributing obscene material or child pornography, 
          extortion, or to obtain forced labor or services, is guilty 
          of human trafficking.  (PEN Section 236.1, subd. (a))

          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.  50% of the funds 
          are granted to community-based organizations that serve 
          minor victims of human trafficking.

          This bill provides that where a person has 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.  This bill 
          provides that in any case in which a defendant is convicted 
          of human trafficking and an allegation is found to be true 
          that the victim was a person under 18 years of age and the 
          crime involved a criminal sex act, the following assets 
          shall be subject to forfeiture:

             Any property interest, whether tangible or intangible, 
             acquired through human trafficking that involves a 
             commercial sex act where the victim was less than 18 
             years of age at the time of the commission of the crime.

             All proceeds from human trafficking that involves a 
             commercial sex act where the victim was less than 18 
             years of age at the time of the commission of the crime, 
             which property shall include all things of value that 
             may have been received in exchange for the proceeds 
             immediately derived from the act.

          This bill provides the following property shall not be 

                                                           CONTINUED





                                                               SB 1133
                                                                Page 
          4

          subject to forfeiture: 

             Real property used as a family residence or for other 
             lawful purposes, or that is owned by two or more 
             persons, one of whom had no knowledge of its use to 
             facilitate sex trafficking of minor.

             Interest in a passenger motor vehicle, as specified, 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.

          This bill provides that real property subject to forfeiture 
          cannot, absent exigent circumstances, be seized without 
          notice to interested parties and a judicial hearing to 
          determine whether or not seizure is necessary to protect 
          the property pending resolution of the case.  The 
          prosecutor shall have the burden to establish probable 
          cause for the seizure.

          This bill describes the procedures for filing and 
          litigating the forfeiture action:

             The prosecutor files the forfeiture petition in the 
             court where the human trafficking charges are pending.

             The prosecutor gives notice to all persons who may have 
             an interest in the affected property.  The notice shall 
             inform the person how to affirm or deny the prosecutor's 
             allegations and how the person may assert a claim to the 
             property.

             The prosecutor shall file a lis pendens as to any real 
             property, as specified.

             A person may file a verified claim as to any property 
             within 30 days of notice or the person shall default.

          This bill provides that if the defendant denies the 
          petition allegations, the forfeiture action shall be heard 
          in the court where the underlying human trafficking case is 
          tried. 


                                                           CONTINUED





                                                               SB 1133
                                                                Page 
          5

             If the defendant is found guilty, the forfeiture matter 
             shall be promptly tried to the jury that heard the 
             criminal case, a new jury, or the court upon waiver by 
             the parties of a jury trial.

             The prosecutor has the burden to prove beyond a 
             reasonable doubt that the property is subject to 
             forfeiture.

          This bill provides that the court may grant the 
          prosecutor's request to preserve property alleged to be 
          subject to forfeiture:

             The court may issue an injunction to prohibit sale or 
             transfer of the property.

             The court may appoint a receiver to take possession of 
             and manage the property.

             The court may not make such orders without probable 
             cause and the court must give interested parties notice 
             and an opportunity to be heard on the matter.

             The court may order a surety bond to protect the 
             property and parties; and the court shall protect the 
             interests of person who were involved in the same 
             enterprise as the defendant, but who were not involved 
             in human trafficking.

          This bill provides that if the jury or court finds that the 
          defendant was engaged in human trafficking of a minor for 
          sexual commerce and that the property is forfeitable, the 
          property shall be forfeited and distributed, as specified.

          This bill provides that if the property is subject to 
          forfeiture, but that a person holding a specified valid 
          lien interest in the property had no knowledge of the use 
          of the property in trafficking, the person may pay to the 
          state the difference between his/her interest and interest 
          of the registered owner of the property and thereby obtain 
          the property.  

          This bill provides that the proceeds of forfeited property 
          shall be distributed as follows:

                                                           CONTINUED





                                                               SB 1133
                                                                Page 
          6


             To the innocent purchaser or holder of a specified 
             security interest, up to the amount of the person's 
             interest.

             To the applicable government entity for the costs of 
             selling the property.

             50% to the GF of the state or county, depending on 
             whether the Attorney General or the district attorney 
             prosecuted the case. 

             50% to the VWA Fund for grants, as specified, to 
             community-based organizations that serve human 
             trafficking victims.

          This bill provides that in a proceeding involving human 
          trafficking under the criminal profiteering asset 
          forfeiture rules - not under the new forfeiture system 
          described in this - the proceeds of the forfeiture shall be 
          deposited in the GF of the state or county that prosecuted 
          the matter.

           Prior Legislation
           
          AB 90 (Swanson), Chapter 457, Statutes of 2011, included 
          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, Statutes of 2011, required 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 provided 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No


                                                           CONTINUED





                                                               SB 1133
                                                                Page 
          7

          According to the Senate Appropriations Committee:

             Potential increased state and/or county GF 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 expected to be minor. 

             Potential minor cost increases to the Department of 
             General Services to be offset directly through revenues 
             from asset forfeiture sales.

             Potential annual costs likely less than $50,000 (GF) to 
             the Judicial Branch to the extent additional forfeiture 
             hearings are held that would not otherwise have occurred 
             under existing criminal profiteering law.

           SUPPORT  :   (Verified  5/25/12)

          Attorney General Kamala Harris (source)
          California Coalition of Sexual Assault
          Coalition to Abolish Slavery and Trafficking
          Crime Victims Action Alliance
          Crime Victims United of California
          Peace Officers Research Association of California

           OPPOSITION  :    (Verified  5/25/12)

          American Civil Liberties Union

           ARGUMENTS IN SUPPORT  :    According to the author's office:

            SB 1133 creates a new forfeiture statute that will give 
            prosecutors a powerful tool to ensure that criminals 
            convicted of sex trafficking minors are not able to 
            retain any financial benefits from their participation in 

                                                           CONTINUED





                                                               SB 1133
                                                                Page 
          8

            this horrendous crime.  The bill not only expands the 
            list of assets subject to forfeiture, thereby ensuring 
            that these resources are not used in future crimes, but 
            also includes a formula to redirect those resources to 
            organizations that provide treatment and victim services 
            for this vulnerable population. 

            According to the U.S. Department of Justice, human 
            trafficking and sexual exploitation is the fastest 
            growing and second largest criminal enterprise in the 
            world.  Data gathered by the California Department of 
            Justice states that 195,644 children ran away from home 
            in 2009 and 2010.  Scholars estimate that, within 48 
            hours one-third of those children would be lured or 
            recruited into the underground world of prostitution and 
            pornography.  Even with an estimated 65,000 children 
            lured into the sex trade in California in 2009 and 2010, 
            only thirteen individuals were sent to prison in 
            California for human trafficking during that time.  


          RJG/DLW:kc  5/25/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****
          


















                                                           CONTINUED