BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2035 (Chesbro) - Sexually exploited and trafficked minors.
          
          Amended: July 1, 2014           Policy Vote: HS 4-0; JUD 7-0
          Urgency: No                     Mandate: Yes
          Hearing Date: August 4, 2014                            
          Consultant: Jolie Onodera       
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 2035 would specifically provide, until January  
          1, 2017, that a child who is a victim of human trafficking or  
          sexual exploitation, as specified, is within the jurisdiction of  
          the juvenile court. This bill would also require training for  
          administrators of group home facilities, licensed foster  
          parents, and relative or nonrelative extended family member  
          caregivers to include instruction on cultural competency and  
          sensitivity relating to, and best practices for, providing  
          adequate care to sexually exploited and trafficked minors in  
          out-of-home care. 

          Fiscal Impact: 
              Potentially significant ongoing increase in annual child  
              welfare services costs (General Fund*) to the extent a  
              greater number of sexually exploited and human trafficked  
              minors are placed under the jurisdiction of the juvenile  
              dependency court due to the explicit and separate  
              categorical listing for these children. 
              One-time costs of $10,000 (General Fund) to develop the new  
              curriculum component to the required training program for  
              foster care providers. Annual costs of $65,000 to provide  
              training for this new component to foster caregivers. 
              Potentially significant cost pressure (General Fund*) to  
              provide additional services and funding, including  
              supplemental foster care rates for placement of child  
              victims of human trafficking that are not covered under the  
              recently enacted Human Services budget trailer bill (SB 855)  
              that covers sexually trafficked children, but not children  
              trafficked for forced labor or services.   

          *Pursuant to Proposition 30 (November 2012) any legislation  
          enacted after September 30, 2012, that has an overall effect of  








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          increasing the costs already borne by a local agency for  
          programs or levels of service mandated by realignment (including  
          child welfare services and foster care) only apply to local  
          agencies to the extent that the state provides annual funding  
          for the cost increase. 

          Background: In a comprehensive report released by the California  
          Child Welfare Council, Ending the Commercial Sexual Exploitation  
          of Children: A Call for Multi-System Collaboration in California  
          (2013), human trafficking, which includes commercial sexual  
          exploitation (CSE), is identified as a $32 billion per year  
          worldwide industry, with current statistics showing that human  
          trafficking is increasingly a domestic issue. According to  
          Federal Bureau of Investigations (FBI) estimates, 100,000  
          children are sold for sex each year within the United States,  
          and as many as 300,000 children are at risk of becoming victims  
          of CSE. In addition, the report notes that over the past two  
          years, California's nine human trafficking task forces  
          identified 1,277 victims, 72 percent of whom were from the  
          United States. The report, in part, states:

           "Within the United States, California has emerged as a  
           magnet for commercial sexual exploitation of children  
           (CSEC). The FBI has determined that three of the nation's  
           thirteen High Intensity Child Prostitution areas are  
           located in California: the San Francisco, Los Angeles,  
           and San Diego metropolitan areas. Child sex trafficking,  
           child pornography, and child sex tourism are all forms of  
           CSEC. Frequently, victims are exploited through more than  
           one form of abuse, and they cycle through the stages of  
           exploitation many times before they are able to leave  
           their exploitative relationships. To address this  
           problem, California must develop a comprehensive and  
           collaborative response to ensure CSE victims are  
           identified and receive the services they need to overcome  
           trauma and live healthy, productive lives. 

           The children who fall prey to exploiters are frequently  
           those with prior involvement with the child welfare  
           system, such as through child abuse report investigations  
           and placement in foster care. Other victims should have  
           received child welfare services and protections but never  
           gained access to the system, and are instead treated like  
           criminals and funneled into the juvenile justice system."








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          The juvenile dependency court seeks to connect minor victims of  
          abuse with services including housing, healthcare, and mental  
          health support. To address the issues related to commercially  
          sexually exploited youth as well as youth victims of human  
          trafficking, this bill specifically authorizes the juvenile  
          dependency court to exercise jurisdiction over these minors, and  
          requires that foster parents, group homes, and other caregivers  
          receive training on sensitivity and best practices related to  
          providing homes to sexually exploited and trafficked youth. 

          Proposed Law: This bill would specifically add to the list of  
          minors that may come within the jurisdiction of the juvenile  
          dependency court, victims of human trafficking and sexual  
          exploitation, as specified, until January 1, 2017. This bill  
          would also require training for administrators of group home  
          facilities, licensed foster parents, and relative or nonrelative  
          extended family member caregivers to include instruction on  
          cultural competency and sensitivity relating to, and best  
          practices for, providing adequate care to sexually exploited and  
          trafficked minors in out-of-home care. 

          Related Legislation: SB 738 (Yee) 2013 was substantially similar  
          to this bill. This bill is currently pending hearing in the  
          Assembly Committee on Human Services.
          
          SB 855 (Committee on Budget and Fiscal Review) Chapter 29/2014,  
          the Human Services budget trailer bill, among other things,  
          established a Commercially Sexually Exploited Children (CSEC)  
          Program, to be administered by the DSS which includes statewide  
          training, the development of local protocols for addressing  
          victims of exploitation, and specialized services. The bill  
          authorized the use of the funds by counties electing to  
          participate in the CSEC Program. 

          SB 852 (Leno) Chapter 25/2014, the Budget Act of 2014, includes  
          $5 million General Fund for the CSEC Program in 2014-15, and $14  
          million General Fund ongoing for this program. 

          Prior Legislation: SB 114 (Pavley) Chapter 42/2013 extends the  
          sunset date to January 1, 2017, for the discretionary pilot  
          project related to commercially sexually exploited minors  
          established pursuant to SB 1279 (Pavley) and extends the sunset  
          date for the District Attorney of Los Angeles County to submit a  








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          report to the Legislature to April 1, 2016.

          SB 1279 (Pavley) Chapter 116/2010 authorized, until January 1,  
          2014, a discretionary pilot project in Los Angeles County to  
          encourage the development of a comprehensive, multidisciplinary  
          model reflecting the best practices for the response of law  
          enforcement and the criminal and juvenile justice systems to  
          identify, assess, and address the needs of commercially sexually  
          exploited children who have been arrested or detained by local  
          law enforcement for prostitution crimes. 

          AB 799 (Swanson) Chapter 51/2011 extended the sunset date  
          authorizing the Alameda County District Attorney to create a  
          pilot project, contingent upon local funding, for the purposes  
          of developing a comprehensive, multidisciplinary model to  
          address the needs and effective treatment of commercially  
          sexually exploited minors. 
          
          Staff Comments: By specifically adding to the list of minors  
          that may come within the jurisdiction of the juvenile dependency  
          court both victims of sexual exploitation and human trafficking,  
          this bill could result in an increase in child welfare services  
          costs. While these children may be authorized under existing  
          provisions of law, to the extent a greater number of sexually  
          exploited and human trafficked minors are placed under the  
          jurisdiction of the court due to the explicit and separate  
          categorical listing provided in this bill could result in an  
          increase in annual child welfare services costs, potentially  
          requiring a subvention of funds from the state as provided under  
          Proposition 30 (2012). 

          Prior to Fiscal Year (FY) 2011-12, the state and counties  
          contributed to the non-federal share of various social service  
          programs. AB 118 (Committee on Budget) Chapter 40/2011 and ABX1  
          16 Chapter 13/2011 realigned state funding to the counties  
          through the 2011 Local Revenue Fund (LRF) for various programs,  
          including foster care and child welfare services. As a result,  
          beginning in FY 2011-12 and for each fiscal year thereafter,  
          non-federal funding and expenditures for these activities  
          including foster care and child welfare services are funded  
          through the LRF.

          Proposition 30, passed by the voters in November 2012, among  
          other provisions, eliminated any potential mandate funding  








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          liability for any new program or higher level of service  
          provided by counties related to the realigned programs. Although  
          the provisions of this bill are a mandate on local agencies, any  
          increased costs would not appear to be subject to reimbursement  
          by the state. Rather, Proposition 30 specifies that for  
          legislation enacted after September 30, 2012, that has an  
          overall effect of increasing the costs already borne by a local  
          agency for realigned programs, which would include child welfare  
          services and foster care, the provisions shall apply to local  
          agencies only to the extent that the state provides annual  
          funding for the cost increase.  

          As noted above, the recently enacted Human Services budget  
          trailer bill (SB 855) established a CSEC Program, which would  
          provide funding for statewide training, the development of local  
          protocols for addressing victims of exploitation, and  
          specialized services to counties electing to participate. One of  
          the authorized services enumerated in the bill includes  
          providing supplemental foster care rates for placement of child  
          victims of commercial sexual exploitation. Staff notes that  
          while the CSEC Program would serve sexually trafficked minors,  
          the program would not encompass other trafficked minors such as  
          child victims of forced labor or services. As a result, the  
          provisions of this bill could create General Fund cost pressure  
          to provide comparable services and supports to labor trafficked  
          minors as those provided to sexually trafficked minors covered  
          under the new CSEC Program.