Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law requires the Attorney General, whenever they deem it advisable or necessary in the public interest, or when directed to do so by the Governor, to assist any district attorney in the discharge of the district attorneys duties, and authorizes them to take full charge of any investigation or prosecution of violations of law, as specified. Existing law establishes the Department of Industrial Relations in the Labor and Workforce Development Agency and vests it with various powers and duties to foster, promote, and develop the welfare of the wage earners of California, to improve their working conditions, and to advance their opportunities for profitable employment. Existing law establishes the Civil Rights Department within the Business, Consumer Services, and Housing Agency and sets forth its powers and duties relating to enforcement of civil rights laws.

This bill would establish within the Department of Justice the Labor Trafficking Unit. The bill would require the unit to receive labor trafficking reports and complaints from law enforcement agencies and other governmental entities and refer the reports or complaints to appropriate agencies for investigation, prosecution, or other remedies. The bill would require the unit to coordinate with certain state agencies, including, among others, the Department of Industrial Relations and the Civil Rights Department. The bill would authorize the unit to coordinate with other relevant state agencies, as specified, state and local law enforcement agencies, tribal law enforcement agencies, and district attorneys offices. The bill would require the unit to make efforts to ensure that local, state, and tribal entities use a victim-centered approach when receiving and processing victim reports or complaints of labor trafficking and when reporting suspected labor trafficking to the unit. The bill would require the unit to follow a victim-centered approach when processing labor trafficking reports or complaints and ensure that victims are informed of the services and options available to them, as specified.

The bill would require the Department of Industrial Relations and the Civil Rights Department to collaborate with the unit to develop policies, procedures, and protocols to track, record, and report potential labor trafficking to the unit. The bill would require the unit to develop a tracking and reporting system to collect labor trafficking reports and complaints and would require the reports to be aggregated and analyzed to identify potential labor trafficking reports and complaints to be further investigated by the Department of Justice or referred for civil action, criminal prosecution, or other remedy, as specified. The bill would require the unit, from April 1, 2027, to January 1, 2036, inclusive, to annually submit a specified report to the Legislature relating to labor trafficking complaints or reports, including the number and type of reports, complaints, or referrals. The bill would require the Department of Industrial Relations and the Civil Rights Department to report this information to the unit on a quarterly basis and report suspected labor trafficking immediately to the unit, as specified. The bill would specify that the bills operation is contingent upon adequate appropriation by the Legislature in the annual Budget Act or another statute for the bills purposes. If the Legislature does not appropriate adequate funding by January 1, 2030, the bill would repeal its provisions and require the Department of Justice to file with the Secretary of State by January 1, 2030, the departments determination that the Legislature has not appropriated adequate funding.

Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law requires the Attorney General, whenever they deem it advisable or necessary in the public interest, or when directed to do so by the Governor, to assist any district attorney in the discharge of the district attorneys duties, and authorizes them to take full charge of any investigation or prosecution of violations of law, as specified. Existing law establishes the Department of Industrial Relations in the Labor and Workforce Development Agency and vests it with various powers and duties to foster, promote, and develop the welfare of the wage earners of California, to improve their working conditions, and to advance their opportunities for profitable employment. Existing law establishes the Civil Rights Department within the Business, Consumer Services, and Housing Agency and sets forth its powers and duties relating to enforcement of civil rights laws.

This bill would establish within the Department of Justice the Labor Trafficking Unit. The bill would require the unit to receive labor trafficking reports and complaints from law enforcement agencies and other governmental entities and refer the reports or complaints to appropriate agencies for investigation, prosecution, or other remedies. The bill would require the unit to coordinate with certain state agencies, including, among others, the Department of Industrial Relations and the Civil Rights Department. The bill would authorize the unit to coordinate with other relevant state agencies, as specified, state and local law enforcement agencies, tribal law enforcement agencies, and district attorneys offices. The bill would require the unit to make efforts to ensure that local, state, and tribal entities use a victim-centered approach when receiving and processing victim reports or complaints of labor trafficking and when reporting suspected labor trafficking to the unit. The bill would require the unit to follow a victim-centered approach when processing labor trafficking reports or complaints and ensure that victims are informed of the services and options available to them, as specified.

The bill would require the Department of Industrial Relations and the Civil Rights Department to collaborate with the unit to develop policies, procedures, and protocols to track, record, and report potential labor trafficking to the unit. The bill would require the unit to develop a tracking and reporting system to collect labor trafficking reports and complaints and would require the reports to be aggregated and analyzed to identify potential labor trafficking reports and complaints to be further investigated by the Department of Justice or referred for civil action, criminal prosecution, or other remedy, as specified. The bill would require the unit, from April 1, 2027, to January 1, 2036, inclusive, to annually submit a specified report to the Legislature relating to labor trafficking complaints or reports, including the number and type of reports, complaints, or referrals. The bill would require the Department of Industrial Relations and the Civil Rights Department to report this information to the unit on a quarterly basis and report suspected labor trafficking immediately to the unit, as specified. The bill would specify that the bills operation is contingent upon adequate appropriation by the Legislature in the annual Budget Act or another statute for the bills purposes. If the Legislature does not appropriate adequate funding by January 1, 2030, the bill would repeal its provisions and require the Department of Justice to file with the Secretary of State by January 1, 2030, the departments determination that the Legislature has not appropriated adequate funding.

Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law requires the Attorney General, whenever they deem it advisable or necessary in the public interest, or when directed to do so by the Governor, to assist any district attorney in the discharge of the district attorneys duties, and authorizes them to take full charge of any investigation or prosecution of violations of law, as specified. Existing law establishes the Department of Industrial Relations in the Labor and Workforce Development Agency and vests it with various powers and duties to foster, promote, and develop the welfare of the wage earners of California, to improve their working conditions, and to advance their opportunities for profitable employment. Existing law establishes the Civil Rights Department within the Business, Consumer Services, and Housing Agency and sets forth its powers and duties relating to enforcement of civil rights laws.

This bill would establish within the Department of Justice the Labor Trafficking Unit, and would require the unit to be the centralized enforcement, referral, and investigative unit to combat labor trafficking and to coordinate with the Labor Enforcement Task Force, other specified task forces, and the Civil Rights Department. Unit. The bill would require the unit to receive, investigate, and process complaints alleging labor trafficking and take steps to prevent labortrafficking. receive labor trafficking reports and complaints from law enforcement agencies and other governmental entities and refer the reports or complaints to appropriate agencies for investigation, prosecution, or other remedies. The bill would require the unit to coordinate with certain state agencies, including, among others, the Department of Industrial Relations and the Civil Rights Department. The bill would authorize the unit to coordinate with other relevant state agencies, as specified, state and local law enforcement agencies, tribal law enforcement agencies, and district attorneys offices. The bill would require the unit to make efforts to ensure that local, state, and tribal entities use a victim-centered approach when receiving and processing victim reports or complaints of labor trafficking and when reporting suspected labor trafficking to the unit. The bill would require the unit to follow protocols to ensure survivors of labor trafficking are not further victimized by the process of reporting, investigating, or prosecuting labor traffickers a victim-centered approach when processing labor trafficking reports or complaints and ensure that victims are informed of the services and options available to them. them, as specified.

The bill would require members of the Labor Enforcement Task Force, members of the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, members of the Joint Enforcement Strike Force on the Underground Economy, the Department of Industrial Relations and the Civil Rights Department to collaborate with the unit to develop policies, procedures, and protocols to track, record, and report potential labor trafficking activity. to the unit. The bill would require those entities to train their investigators who are most likely to encounter labor trafficking to recognize warning signs of potential labor trafficking and to report to the unit when, upon investigating businesses under their purview, there is evidence of labor trafficking. The bill would require the unit to develop a tracking and reporting system to collect reports from those entities on labor trafficking reports and complaints and would require the reports to be aggregated and analyzed to identify potential complaints labor trafficking reports and complaints to be further investigated by the Department of Justice or referred for civil action or action, criminal prosecution, or other remedy, as specified, pursuant to the bill. specified. The bill would also require the unit, beginning January 1, 2026, and until January 1, 2036, from April 1, 2027, to January 1, 2036, inclusive, to annually submit a specified report to the Legislature with specified information relating to labor trafficking complaints or referrals, reports, including the number, types, and outcomes number and type of complaints or referrals. reports, complaints, or referrals. The bill would require the Department of Industrial Relations and the Civil Rights Department to report this information to the unit on a quarterly basis and report suspected labor trafficking immediately to the unit, as specified. The bill would specify that the bills operation is contingent upon adequate appropriation by the Legislature in the annual Budget Act or another statute for the bills purposes. If the Legislature does not appropriate adequate funding by January 1, 2030, the bill would repeal its provisions and require the Department of Justice to file with the Secretary of State by January 1, 2030, the departments determination that the Legislature has not appropriated adequate funding.

Existing law establishes within the Department of Industrial Relations the Division of Labor Standards Enforcement, headed by the Labor Commissioner, for the purposes of enforcing labor laws. the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law requires the Attorney General, whenever they deem it advisable or necessary in the public interest, or when directed to do so by the Governor, to assist any district attorney in the discharge of the district attorneys duties, and authorizes them to take full charge of any investigation or prosecution of violations of law, as specified.

This bill would establish within the division Department of Justice the Labor Trafficking Unit, which would be required to and would require the unit to be the centralized enforcement, referral, and investigative unit to combat labor trafficking and to coordinate with the Criminal Investigation Unit, the Labor Enforcement Task Force, the Department of Justice, the Employment Development Department, other specified task forces, and the Civil Rights Department to combat labor trafficking. Department. The bill would require the unit to receive, investigate, and process complaints alleging labor trafficking and take steps to prevent labor trafficking. The bill would authorize the Department of Industrial Relations to impose a civil penalty for each violation of these provisions, as specified. The bill would also authorize the unit to refer labor trafficking violations to the Civil Rights Department. The bill would require the unit to coordinate with or refer criminal labor trafficking violations to the Department of Justice for potential criminal prosecutions.

The trafficking. The bill would additionally require the unit to follow protocols to ensure survivors of labor trafficking are not further victimized by the process of reporting, investigating, or prosecuting labor traffickers and are informed of the services available to them. The bill would further authorize the unit to coordinate with state, tribal, and local agencies for specified purposes relating to the investigation of labor trafficking.

The bill would require the Division of Occupational Safety and Health, members of the Labor Enforcement Task Force, members of the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, members of the Joint Enforcement Strike Force on the Underground Economy, and the Civil Rights Department to collaborate with the unit to develop policies, procedures, and protocols to track, record, and report potential labor trafficking activity. The bill would require those entities to train their investigators who are most likely to encounter labor trafficking to recognize warning signs of potential labor trafficking and to report to the unit when, upon investigating businesses under their purview, there is evidence of labor trafficking. The bill would require the unit to develop a tracking and reporting system to collect reports from those entities on labor trafficking and would require the reports to be aggregated and analyzed to identify potential complaints to be further investigated or referred for investigation civil action or criminal prosecution, as specified, pursuant to the bill. The bill would also require the unit, beginning January 1, 2026, and until January 1, 2036, to annually submit a report to the Legislature with specified information relating to labor trafficking complaints or referrals, including the number, types, and outcomes of complaints or referrals.

Existing law establishes within the Department of Industrial Relations the Division of Labor Standards Enforcement, headed by the Labor Commissioner, for the purposes of enforcing labor laws.

This bill would establish within the division the Labor Trafficking Unit, which would be required to coordinate with the Criminal Investigation Unit, the Labor Enforcement Task Force, the Department of Justice, the Employment Development Department, other specified task forces, and the Civil Rights Department to combat labor trafficking. The bill would require the unit to receive, investigate, and process complaints alleging labor trafficking and take steps to prevent labor trafficking. The bill would authorize the Department of Industrial Relations to impose a civil penalty for each violation of these provisions, as specified. The bill would also authorize the unit to refer labor trafficking violations to the Civil Rights Department. The bill would require the unit to coordinate with or refer criminal labor trafficking violations to the Department of Justice for potential criminal prosecutions.

The bill would additionally require the unit to follow protocols to ensure survivors of labor trafficking are not further victimized by the process of reporting, investigating, or prosecuting labor traffickers and are informed of the services available to them. The bill would further authorize the unit to coordinate with state, tribal, and local agencies for specified purposes relating to the investigation of labor trafficking. The

The bill would require the Division of Occupational Safety and Health, members of the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, members of the Joint Enforcement Strike Force on the Underground Economy, and the Civil Rights Department to notify collaborate with the unit to develop policies, procedures, and protocols to track, record, and report potential labor trafficking activity. The bill would require those entities to train their investigators who are most likely to encounter labor trafficking to recognize warning signs of potential labor trafficking and to report to the unit when, upon investigating businesses under their purview, there is evidence of labor trafficking. The bill would require the unit to develop a tracking and reporting system to collect reports from those entities on labor trafficking and would require the reports to be aggregated and analyzed to identify potential complaints to be further investigated or referred for investigation pursuant to the bill. The bill would also require the unit, beginning January 1, 2026, and until January 1, 2036, to annually submit a report to the Legislature with specified information relating to labor trafficking complaints, complaints or referrals, including the number, types, and outcomes of complaints. complaints or referrals.

Existing law establishes within the Department of Industrial Relations the Division of Labor Standards Enforcement, headed by the Labor Commissioner, for the purposes of enforcing labor laws.

This bill would establish within the division the Labor Trafficking Unit, which would be required to coordinate with the Criminal Investigation Unit, the Labor Enforcement Task Force, the Department of Justice, the Employment Development Department, other specified task forces, and the Civil Rights Department to combat labor trafficking. The bill would require the unit to receive, investigate, and process complaints alleging labor trafficking and take steps to prevent labor trafficking. The bill would authorize the Department of Industrial Relations to impose a civil penalty for each violation of these provisions, as specified. The bill would also authorize the unit to refer labor trafficking violations to the Civil Rights Department. The bill would require the unit to coordinate with or refer criminal labor trafficking violations to the Department of Justice for potential criminal prosecutions.

The bill would additionally require the unit to follow protocols to ensure survivors of labor trafficking are not further victimized by the process of reporting, investigating, or prosecuting labor traffickers and are informed of the services available to them. The bill would further authorize the unit to coordinate with state, tribal, and local agencies for specified purposes relating to the investigation of labor trafficking. The bill would require the Division of Occupational Safety and Health, members of the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, members of the Joint Enforcement Strike Force on the Underground Economy, and the Civil Rights Department to notify the unit when, upon investigating businesses under their purview, there is evidence of labor trafficking. The bill would also require the unit, beginning January 1, 2026, and until January 1, 2036, to annually submit a report to the Legislature with specified information relating to labor trafficking complaints, including the number, types, and outcomes of complaints.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1888

Author:(Arambula and Ramos)

As Amended Ver:June 19, 2024

Majority vote

SUMMARY

Establishes the Labor Trafficking Unit (LTU) within the Department of Justice (DOJ) to receive labor trafficking reports from law enforcement agencies and other entities and refer these reports to appropriate agencies for investigation, prosecution, or other remedies.

Senate Amendments

1. Revise the process by which the LTU coordinates with other state agencies, including adding that it will coordinate with the Department of Health Care Services, the Department of Social Services, the Department of Food and Agriculture, and the Department of Fish and Wildlife.
2. Remove coordination with various task forces that combat the underground economy.
3. State that the Department of Industrial Relations and the Civil Rights Department rather than the LTU shall report specified information regarding reports or complaints received by the reporting agency or investigated by the DOJ.
4. Move the effective date for the submission of a report to the Legislature on the labor trafficking reports and complaints from January 1, 2026, to April 1, 2027, and annually thereafter from January 1 to April 1. Make additional clarifying changes to the demographic information of labor trafficking victims to be reported.
5. Make the operation of the bill's provisions contingent upon adequate appropriation by the Legislature in the annual Budget Act or another statute, as specified.
6. Require that absent adequate appropriated funding by the Legislature by January 1, 2030, the provisions are repealed unless a later enacted statute that is enacted before January 1, 2030, deletes or extends that date.

COMMENTS

While data on the extent of labor trafficking in California is sparse and likely due to a lack of centralized case reporting, we know that more than 9,000 cases of human trafficking in the state have been reported since 2007.^[1] In terms of demographics, "labor trafficking victims may be men or women, young or old, native-born citizens or immigrants. However, a few commonalities are apparent. Most victims are in the prime working years of 18 to 40. Many are immigrants who have entered the country legally to perform some kind of temporary work and become unauthorized due to their trafficking."^[2]

Since 2020, the Little Hoover Commission has been studying the state's efforts to combat labor trafficking, issuing three reports and recently holding a public hearing in 2023. In its 2020 report, the Commission identified a number of challenges in California's current anti-trafficking strategy. For example, the lack of a coordinated effort to address labor trafficking is called out as a significant challenge. The Commission writes, "We have no permanent entity to coordinate the state's overall fight against human trafficking or to develop information-sharing protocols between state organizations and their local and federal partners. Twice since 2007, the Department of Justice led a temporary statewide coordinating body to investigate and propose cross-agency strategies to address human trafficking. But these bodies disbanded after issuing recommendations."^[3]

According to the Author

According to the author, "Trafficked employees face threats from their employers relating to documentation status, harm to their families, and loss of wages that prevent them from trying to escape and seek help. Traffickers often target vulnerable populations such as foster children, homeless and runaway youth, foreign nationals, and individuals living in poverty. Unfortunately, the current fragmented enforcement structure means that no single entity holds the mandate to specifically investigate and enforce labor trafficking laws. By establishing a dedicated labor trafficking unit within the Department of Industrial Relations (DIR), a department with expertise in labor rights and laws, the state can take the necessary steps to stop the abuses of workers."

The author further states that, "Exploitation occurs in many industries. Employees live and work in substandard conditions, while also experiencing unfair wages and wage theft. California has the highest rate of human trafficking cases. The transportation of goods and forced human labor places the state at a critical risk. This bill promotes equity by implementing more effective investigations of labor trafficking and prosecution. It maximizes benefits for underserved communities by supporting victims of labor trafficking through legal action and resources to ensure justice."

Arguments in Support

The Sunita Jain Anti-Trafficking Initiative, sponsor of the bill, states, "In 2021, the Little Hoover Commission highlighted that California has focused almost exclusively on combating sex trafficking and needs to do more to prevent labor trafficking in our state. Further they concluded based on statewide stakeholder input that California's efforts to prevent labor trafficking are fragmented and a major issue is a lack of a directive to current state agencies to lead efforts to prevent labor trafficking and coordinate with other agencies such as California Department of Justice (DOJ) and Department of Fair Employment and Housing (DFEH) to stop trafficking before it starts. In a recent report released in February 2024, the Commission explicitly concluded that "by empowering the Department of Industrial Relations to take a lead role in investigating allegations of labor trafficking, the state could help gather the information necessary for prosecutions and begin to take steps to proactively target worker outreach efforts in appropriate industries or geographic hotspots."

AB 1888 (Arambula) - the California Labor Trafficking Prevention Act - seeks to protect California's most vulnerable workers from being taken advantage of by unscrupulous individuals and businesses who force them to work under duress with little to no pay. This bill will provide the DIR with statutory authority to investigate and coordinate work statewide by creating a specialized Labor Trafficking Unit and collect data across state agencies. This is an important first step in properly preventing, investigating, and coordinating state efforts to put a stop to the abuses of workers in our state, and decades overdue."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Senate Appropriations Committee:

1. DOJ indicates ongoing costs of approximately $1,000,000 (General Fund). DOJ notes that the Special Prosecutions Section (SPS), within the Criminal Law Division, would be involved in assisting the newly established LTU. To address the increase in workload, SPS will require the following resources, beginning in January 2025, ongoing: 1.0 Deputy Attorneys General (DAG) and 1.0 Legal Secretary (LS). DOJ also indicates that the Research Services unit within DOJ's Office of General Counsel division would be required to produce the mandated statistics for the annual report sections. To address the increase in workload, beginning July 1, 2025 and ongoing (or until 2030 if unfunded), Research Services would require 1.0 Research Data Analyst II (RDA) to extract the data from the CJIS system, clean and organize the data, run logic checks, conduct analysis, and provide the results to the new Labor Trafficking Unit.  The RDA would be able to support minimal ad hoc research and analysis requests. DOJ reports that the Victim Services Unit (VSU) within the Division of Law Enforcement (DLE), Office of the Chief (OC) anticipates an increase in caseload. To address this workload increase, VSU would require 1.0 new permanent Associate Government Program Analyst (AGPA), beginning January 1, 2025. The AGPA will be responsible for attending and developing training, travel to provide in person support and accompaniment, and funding for publication distribution. DOJ further reports that its California Justice Information Services (CJIS) Division would need to develop a basic web form to collect the labor trafficking complaints. CJIS would require the following resources: Information Technology Specialist (ITS) I to develop an internal system to allow DLE and CRIM access to review submissions sent in from the AG's public website; ITS I – to assist in the review and development of this internal system and establishing roles on the AG's website for the specific end-user agencies reporting and DOJ business customers; and ITS II would review all development and set up the configuration and architecture of data exchange between the systems. (See Staff Comments)
2. Employment Development Department (EDD) indicates that it would incur estimated ongoing costs of $0.1 million to coordinate with the Labor Trafficking Unit within the Department of Justice. EDD would require a General Fund appropriation.
3. CRD anticipates requesting 20 positions and approximately $3.9M in FY 2025-26 and ongoing. This includes $125K per year for operational expenses, such as expert consultants for civil actions, translation and interpretation services, bilingual pay for CRD staff, and travel expenses to visit worksites and other locations statewide where victims of human trafficking may be found. Among the 20 positions would be senior and junior attorneys to litigate civil actions and coordinate with other agencies, investigators, an experienced mediator, bilingual outreach workers, and administrative and IT support staff.

VOTES:

ASM LABOR AND EMPLOYMENT: 7-0-0

YES: Ortega, Flora, Alanis, Wendy Carrillo, Lee, Ward, Zbur

ASM PUBLIC SAFETY: 8-0-0

YES: McCarty, Alanis, Lackey, Stephanie Nguyen, Reyes, Ting, Wilson, Zbur

ASM APPROPRIATIONS: 11-0-4

YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Mike Fong, Grayson, Haney, Hart, Pellerin, Villapudua

ABS, ABST OR NV: Sanchez, Dixon, Jim Patterson, Ta

ASSEMBLY FLOOR: 70-0-10

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

ABS, ABST OR NV: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Gallagher, Holden, Mathis, Joe Patterson, Luz Rivas

SENATE FLOOR: 39-0-1

YES: Allen, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Alvarado-Gil

UPDATED

VERSION: June 19, 2024

CONSULTANT: Megan Lane / L. & E. / (916) 319-2091 FN: 0004625

1. Polaris. National Human Trafficking Hotline and BeFree Textline. California Statistics. ↑

2. Little Hoover Commission, "Human Trafficking: Coordinating a California Response." Report #250. June 2020. P.5. ↑

3. Ibid at 9. ↑

 THIRD READING  

Bill No: AB 1888

Author: Arambula (D) and Ramos (D)

Amended: 6/19/24 in Senate

Vote: 21

SENATE PUBLIC SAFETY COMMITTEE: 5-0, 6/18/24

AYES: Wahab, Seyarto, Bradford, Skinner, Wiener

SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 6/26/24

AYES: Smallwood-Cuevas, Wilk, Cortese, Durazo, Laird

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/15/24

AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab

ASSEMBLY FLOOR: 70-0, 5/22/24 - See last page for vote

SUBJECT: Department of Justice: Labor Trafficking Unit

SOURCE: California Department of Justice

DIGEST:

This bill establishes the Labor Trafficking Unit (LTU) within the Department of Justice (DOJ)) and requires the LTU to coordinate with various departments and agencies to investigate and combat labor trafficking.

ANALYSIS:

Existing law:

1. Provides that any person who deprives or violates the personal liberty of another with the intent to obtain forced labor or services is guilty of human trafficking and shall be punished in the state prison for 5, 8, or 12 years and a fine of not more than $500,000. (Penal Code § 236.1 (a).)
2. Provides that a victim of human trafficking may bring a civil action for damages, compensatory damages, punitive damages, injunctive relief, and combination thereof, or any other appropriate relief. (Civil Code § 52.5.)
3. Provides that when the Attorney General deems it advisable or necessary in the public interest, or when directed to do so by the Governor, the Attorney General shall assist any district attorney in the discharge of the district attorney’s duties, and may, if deemed necessary, take full charge of any investigation or prosecution of violations of law of which the superior court has jurisdiction. In this respect, the Attorney General has all the powers of a district attorney. (Government Code § 12550.
4. Authorizes the CRD to receive, investigate, conciliate, mediate, and prosecute complaints alleging, and to bring civil actions for, a violation of the crime of human trafficking, as specified. (Government Code § 12930 (f)(3).)
5. Establishes the LETF under the direction of Department of Industrial Relations (DIR) to enforce activities regarding labor, tax, and licensing law violators operating in the underground economy. (Unemp. Ins. Code §329.)

This bill:

1. Establishes the LTU within the DOJ to be the centralized enforcement, referral, and investigative unit to combat labor trafficking and requires coordination with the Labor Enforcement Task Force (LETF), the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, the Joint Enforcement Strike Force on the Underground Economy, and the Civil Rights Department (CRD).
2. Provides that the LTU shall receive, investigate, and process complaints alleging labor trafficking and take steps to prevent labor trafficking.
3. Allows the LTU to coordinate with state and local law enforcement agencies, tribal law enforcement agencies, and district attorney’s offices when investigating criminal actions relating to labor trafficking.
4. States that LTU must follow protocols to ensure that survivors are not further victimized by the process of reporting, investigating, or prosecuting labor traffickers and are informed of the services available to them.
5. Allows the LTU to coordinate with state, tribal, and local entities to connect survivors to available services.
6. Requires Members of the LTU, members of the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, members of the Joint Enforcement Strike Force on the Underground Economy, and CRD to collaborate with LTU to develop policies, procedures, and protocols to track, record, and report potential labor trafficking activity.
7. Requires all the entities described above to train their investigators who are most likely encounter labor trafficking to recognize warning signs of potential labor trafficking and to report to the unit when, upon investigating businesses under their purview, there is evidence of labor trafficking.
8. Requires the LTU to develop a tracking and reporting system to collect reports from all the aforementioned entities on labor trafficking.
9. Requires the LTU to aggregate and analyze the reports to identify potential complaints to be further investigated or referred for investigation to the appropriate agency.
10. Defines the following terms, for the purposes of this section:
    
    1. “Forced labor or services” means labor or services that are performed or provided by a person and are obtained or maintained through force, fraud, duress, coercion, or equivalent conduct that would reasonably overbear the will of the person;
       
    2. “Labor trafficking” means depriving or violating the personal liberty of another person with the intent to obtain forced labor or services; and,
       
    3. “Unit” mean the Labor Trafficking Unit established DOJ
11. Requires the LTU to submit a report to the Legislature on or before January 1, 2026, and every year thereafter to include the following information pertaining to the prior calendar year:
    
12. The number and type of complaints or referral received, including the source of referrals;
13. The number and type of complaints or referrals investigated, including, but not limited to population data about those accused of labor trafficking;
14. The number of complaints referred for civil action.
15. The number of complaints referred for criminal prosecution;
16. The number of referrals and coordination’s with state, local, and tribal law enforcement agencies and district attorney’s offices;
17. The outcome of each complaint, regardless of the agency where the complaint was resolved;
18. Population data about confirmed labor trafficking victims correlated with the industry where the trafficking occurred; and,
19. Information about labor trafficking victims who were referred for services correlated with the name of the agencies where the labor trafficking victim was referred for services.
    

Background

According to the Attorney General’s Website: “Labor trafficking involves the recruitment, harboring, or transportation of a person for labor services, through the use of force, fraud, or coercion. It is modern day slavery. Labor trafficking arises in many situations, including domestic servitude, restaurant work, janitorial work, factory work, migrant agricultural work, and construction. It is often marked by unsanitary and overcrowded living and working conditions, nominal or no pay for work that is done, debt bondage, and document servitude. It occurs in homes and workplaces, and is often perpetrated by traffickers who are the same cultural origin and ethnicity as the victims, which allows the traffickers to use class hierarchy and cultural power to ensure the compliance of their victims. Labor traffickers often tell their victims that they will not be believed if they go to the authorities, that they will be deported from the United States, and that they have nowhere to run. Traffickers teach their victims to trust no one but the traffickers, so victims are often suspicious of genuine offers to help; they often expect that they will have to give something in return.” (What is Human Trafficking?, DOJ, available at: https://oag.ca.gov/human-trafficking/what-is. [As of March 19, 2024].)

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

According to the Senate Appropriations Committee:

• DOJ indicates ongoing costs of approximately $1,000,000 (General Fund). DOJ notes that the Special Prosecutions Section (SPS), within the Criminal Law Division, would be involved in assisting the newly established LTU. To address the increase in workload, SPS will require the following resources, beginning in January 2025, ongoing: 1.0 Deputy Attorneys General (DAG) and 1.0 Legal Secretary (LS). DOJ also indicates that the Research Services unit within DOJ’s Office of General Counsel division would be required to produce the mandated statistics for the annual report sections. To address the increase in workload, beginning July 1, 2025 and ongoing (or until 2030 if unfunded), Research Services would require 1.0 Research Data Analyst II (RDA) to extract the data from the CJIS system, clean and organize the data, run logic checks, conduct analysis, and provide the results to the new Labor Trafficking Unit.  The RDA would be able to support minimal ad hoc research and analysis requests. DOJ reports that the Victim Services Unit (VSU) within the Division of Law Enforcement (DLE), Office of the Chief (OC) anticipates an increase in caseload. To address this workload increase, VSU would require 1.0 new permanent Associate Government Program Analyst (AGPA), beginning January 1, 2025. The AGPA will be responsible for attending and developing training, travel to provide in person support and accompaniment, and funding for publication distribution. DOJ further reports that its California Justice Information Services (CJIS) Division would need to develop a basic web form to collect the labor trafficking complaints. CJIS would require the following resources: Information Technology Specialist (ITS) I to develop an internal system to allow DLE and CRIM access to review submissions sent in from the AG’s public website; ITS I – to assist in the review and development of this internal system and establishing roles on the AG’s website for the specific end-user agencies reporting and DOJ business customers; and ITS II would review all development and set up the configuration and architecture of data exchange between the systems. (See Staff Comments)
  
• Employment Development Department (EDD) indicates that it would incur estimated ongoing costs of $0.1 million to coordinate with the Labor Trafficking Unit within the Department of Justice. EDD would require a General Fund appropriation.
• CRD anticipates requesting 20 positions and approximately $3.9M in FY 2025-26 and ongoing. This includes $125K per year for operational expenses, such as expert consultants for civil actions, translation and interpretation services, bilingual pay for CRD staff, and travel expenses to visit worksites and other locations statewide where victims of human trafficking may be found. Among the 20 positions would be senior and junior attorneys to litigate civil actions and coordinate with other agencies, investigators, an experienced mediator, bilingual outreach workers, and administrative and IT support staff.

SUPPORT: (Verified 8/15/24)

California Department of Justice, Attorney General Rob Bonta (source)
California State Association of Electrical Workers
California State Pipe Trades Council
CFT- a Union of Educators & Classified Professionals, AFT, AFL-CIO
Los Angeles County District Attorney's Office
San Diego County District Attorney's Office
Western States Council Sheet Metal, Air, Rail and Transportation

OPPOSITION: (Verified 8/15/24)

None received

ARGUMENTS IN SUPPORT:

CFT supports this bill stating:

While labor trafficking is already without question illegal under California state law, enforcement remains a challenge. Numerous agencies maintain jurisdiction over labor trafficking and related crimes, which when added to staffing struggles among state agencies, create a situation in which too many labor trafficking crimes go undetected or inadequately punished.

AB 1888 (Arambula) would create a special unit, among the affected agencies, that would specialize in enforcing these laws. The bill would also outline how the agencies work together and requires the unit to report relevant information to the legislature. We believe these reforms will move California much closer to where it needs to be in terms of fighting the extreme harms created by labor trafficking.

ASSEMBLY FLOOR: 70-0, 5/22/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Gallagher, Holden, Mathis, Joe Patterson, Luz Rivas

Prepared by: Mary Kennedy / PUB. S. /

8/18/24 8:51:07

**** END ****

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

AB 1888 (Arambula) - Department of Justice: Labor Trafficking Unit

Bill Summary:

AB 1888 establishes the Labor Trafficking Unit (LTU) within the Department of Justice (DOJ).

Fiscal Impact:

• DOJ indicates ongoing costs of approximately $1,000,000 (General Fund). DOJ notes that the Special Prosecutions Section (SPS), within the Criminal Law Division, would be involved in assisting the newly established LTU. To address the increase in workload, SPS will require the following resources, beginning in January 2025, ongoing: 1.0 Deputy Attorneys General (DAG) and 1.0 Legal Secretary (LS). DOJ also indicates that the Research Services unit within DOJ’s Office of General Counsel division would be required to produce the mandated statistics for the annual report sections. To address the increase in workload, beginning July 1, 2025 and ongoing (or until 2030 if unfunded), Research Services would require 1.0 Research Data Analyst II (RDA) to extract the data from the CJIS system, clean and organize the data, run logic checks, conduct analysis, and provide the results to the new Labor Trafficking Unit.  The RDA would be able to support minimal ad hoc research and analysis requests. DOJ reports that the Victim Services Unit (VSU) within the Division of Law Enforcement (DLE), Office of the Chief (OC) anticipates an increase in caseload. To address this workload increase, VSU would require 1.0 new permanent Associate Government Program Analyst (AGPA), beginning January 1, 2025. The AGPA will be responsible for attending and developing training, travel to provide in person support and accompaniment, and funding for publication distribution. DOJ further reports that its California Justice Information Services (CJIS) Division would need to develop a basic web form to collect the labor trafficking complaints. CJIS would require the following resources: Information Technology Specialist (ITS) I to develop an internal system to allow DLE and CRIM access to review submissions sent in from the AG’s public website; ITS I – to assist in the review and development of this internal system and establishing roles on the AG’s website for the specific end-user agencies reporting and DOJ business customers; and ITS II would review all development and set up the configuration and architecture of data exchange between the systems. (See Staff Comments)
  
• Employment Development Department (EDD) indicates that it would incur estimated ongoing costs of $0.1 million to coordinate with the Labor Trafficking Unit within the Department of Justice. EDD would require a General Fund appropriation.
• CRD anticipates requesting 20 positions and approximately $3.9M in FY 2025-26 and ongoing. This includes $125K per year for operational expenses, such as expert consultants for civil actions, translation and interpretation services, bilingual pay for CRD staff, and travel expenses to visit worksites and other locations statewide where victims of human trafficking may be found. Among the 20 positions would be senior and junior attorneys to litigate civil actions and coordinate with other agencies, investigators, an experienced mediator, bilingual outreach workers, and administrative and IT support staff.

Background:

Labor trafficking is a state prison felony, punishable by up to 12 years incarceration and a fine up to $500,000. (Pen. Code, §236.1.) Victims can also pursue civil actions for damages, compensatory damages, punitive damages, injunctive relief, and any other appropriate relief. (Civ. Code, §52.5.)

Though all forms of human trafficking are illegal in California, the state’s response to human trafficking has principally focused on combatting sex trafficking. No state agency is mandated to investigate labor trafficking in California. A February 2024 Little Hoover Commission report provides:

Finding instances of potential labor trafficking, then effectively investigating and building cases to successfully prosecute these crimes is challenging. Detecting labor trafficking can be complicated by the fact that government officials often operate in silos. Law enforcement, for instance, is typically responsible for addressing the criminal aspects of trafficking crimes, but these officials are often unfamiliar with the employment context of labor trafficking and may dismiss potential cases as employment problems. Meanwhile, several state agencies have authority to investigate criminal activities and violations inherent in labor abuses, including trafficking crimes. Yet none has a mandate to specifically investigate labor trafficking complaints.^[1]

Proposed Law:

This bill establish the LTU within the DOJ. The bill would require the unit to receive labor trafficking reports and complaints from law enforcement agencies and other governmental entities and refer the reports or complaints to appropriate agencies for investigation, prosecution, or other remedies. The bill would require the unit to coordinate with certain state agencies, including, among others, the Department of Industrial Relations (DIR) and the Civil Rights Department (CRD). The bill would authorize the unit to coordinate with other relevant state agencies, as specified, state and local law enforcement agencies, tribal law enforcement agencies, and district attorneys’ offices. The bill would require the unit to make efforts to ensure that local, state, and tribal entities use a victim-centered approach when receiving and processing victim reports or complaints of labor trafficking and when reporting suspected labor trafficking to the unit. The bill would require the unit to follow a victim-centered approach when processing labor trafficking reports or complaints and ensure that victims are informed of the services and options available to them, as specified.

Related Legislation:

AB 1832 (B. Rubio) would establish the Labor Trafficking Task Force (LTTF) within the CRD. AB 1832 is pending in this Committee.

AB 380 (Arambula, 2023) would have established the LTU within the Department of Industrial Relations (DIR). AB 380 was held on this Committee’s suspense file.

AB 235 (B. Rubio, 2023) would have established the LTU within the CRD. AB 235 was held on the Assembly Appropriations Committee suspense file.

AB 1820 (Arambula, 2022) would have established the LTU within DIR. AB 1820 was vetoed.

Staff Comments:

The Little Hoover Commission recommended that the state empower the DIR to lead efforts to combat labor trafficking because he department could identify and respond to potential complaints and take a proactive role in analyzing available data to systematically detect labor trafficking. For example, the Commission envisioned DIR analyzing data from wage and hour violations and worker visa programs to identify possible trafficking hotspots among various industries or geographies in the state.^[2] However, this bill would establish the LTU within the DOJ.

AB 1820 (Arambula), of the 2021-2022 Legislative Session, would have established a unit within the DIR to investigate labor trafficking. It should be noted that AB 1820 was vetoed by Governor Newsom, who stated:

[…] the [CRD] is the appropriate state entity to take the lead in this effort per the amendments offered by my office. [DIR] does not have authority to criminally or civilly prosecute these types of cases nor have the tools and resources necessary to assist labor trafficking survivors. [CRD] is already active in this space and could seamlessly expand its efforts to more aggressively combat labor trafficking provided it is given new resources in the budget.

Indeed, existing law authorizes the CRD to receive, investigate, conciliate, mediate, and prosecute complaints alleging, and to bring civil actions for a violation of the crime of human trafficking, as specified. (Gov. Code, §12930.) A similar bill, AB 1832 (B. Rubio), currently pending in this committee, would establish a Labor Trafficking Task Force within the CRD.

-- END --

1. Little Hoover Commission, Implementation Review: California’s Response to Labor Trafficking Report #278 (February 2024). Available at: <https://lhc.ca.gov/report/implementation-review-labor-trafficking/> [as of July 11, 2024]. ↑

2. Ibid. ↑

SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT

Senator Lola Smallwood-Cuevas, Chair

2023 - 2024 Regular

Bill No: AB 1888 Hearing Date: June 26, 2024

SUBJECT: Department of Justice: Labor Trafficking Unit

KEY ISSUE

This bill establishes the Labor Trafficking Unit (LTU) within the Department of Justice (DOJ) to receive labor trafficking reports or complaints from law enforcement agencies and other governmental entities and refer them to appropriate agencies for investigation, prosecution, or other remedies.

ANALYSIS

Existing law:

1. Establishes the Division of Occupational Safety and Health (Cal/OSHA) within the Department of Industrial Relations (DIR), and gives Cal/OSHA the power, jurisdiction, and supervision over every place of employment in this state which is necessary to enforce and administer all laws requiring places of employment to be safe, and requiring the protection of the life, safety, and health of every employee. (Labor Code §175-176)
2. Establishes the Division of Labor Standards Enforcement (DLSE) under the direction of the Labor Commissioner (LC) and authorizes the LC to investigate employee complaints and enforce labor laws, as specified. (Labor Code §79 et seq.)
3. Establishes the Labor Enforcement Task Force (LETF) under the direction of DIR to combat the underground economy in order to ensure safe working conditions and proper payment of wages for workers; to create an environment in which legitimate businesses can thrive; and to support the collection of all California taxes, fees, and penalties due from employers. (Budget Act of 2012, AB 1464, Chapter 21, Statutes of 2012)
4. Establishes the Joint Enforcement Strike Force on the Underground Economy (JESF), under the direction of the Employment Development Department (EDD), to combat the underground economy by combining resources and sharing information among the state agencies that enforce tax, labor, and licensing laws. (Unemployment Insurance Code §329)
5. Requires the Department of Justice (DOJ) to maintain, at a minimum, two multi-agency Tax Recovery in the Underground Economy (TRUE) Criminal Enforcement Program investigative teams to combat underground economic activities through a multi-agency collaboration and recover state revenue lost to the underground economy. (Government Code §15926)
6. Establishes and authorizes the Civil Rights Department (CRD) to receive, investigate, conciliate, mediate, and prosecute complaints alleging, and to bring civil actions for a violation of the crime of human trafficking, as specified. (Government Code §12930)
7. Provides that any person who deprives or violates the personal liberty of another with the intent to obtain forced labor or services is guilty of human trafficking and shall be punished in the state prison for 5, 8, or 12 years and a fine of not more than $500,000. (Penal Code §236.1(a))
8. Provides that a victim of human trafficking may bring a civil action for damages, compensatory damages, punitive damages, injunctive relief, and combination thereof, or any other appropriate relief. (Civil Code §52.5)

This bill:

1. Finds and declares, among other things, that:
   1. In California, no coordinated strategy exists to address labor trafficking. Because of this, there is little authoritative information on where and how frequently labor trafficking occurs, and indicators of labor trafficking often go unreported or uninvestigated.
   2. Coordination among and between local, state, federal, and tribal entities will enable the state to identify labor trafficking and act to stop the cycle of extortion and abuse.
2. Defines the following terms, for the purposes of these provisions:
   
   1. “Forced labor or services” means labor or services that are performed or provided by a person and are obtained or maintained through force, fraud, duress, coercion, or equivalent conduct that would reasonably overbear the will of the person.
   2. “Labor trafficking” means depriving or violating the personal liberty of another person with the intent to obtain forced labor or services.
      
3. Establishes the Labor Trafficking Unit (LTU) within the Department of Justice (DOJ) to receive labor trafficking reports or complaints from law enforcement agencies and other governmental entities and refer them to appropriate agencies for investigation, prosecution, or other remedies.
4. Requires the LTU to coordinate with the Department of Industrial Relations, the Civil Rights Department, the Employment Development Department, the State Department of Health Care Services, the State Department of Social Services, the Department of Food and Agriculture, the Department of Fish and Wildlife and other relevant state agencies, law enforcement agencies, tribal law enforcement agencies, and district attorneys’ offices.
5. Requires the LTU and coordinating entities to use a victim-centered approach when receiving, processing, and reporting victim reports or complaints of labor trafficking and ensure that victims are informed of the services and options available to them.
6. Authorizes the LTU to coordinate with local, state, and tribal entities to connect victims to available services.
7. Requires DIR and CRD to do all of the following:
   1. Collaborate with the LTU to develop policies, procedures, and protocols to track, record, and report potential labor trafficking activity to the unit.
   2. Report suspected labor trafficking to the LTU immediately when, upon investigating businesses under their purview, they suspect labor trafficking is or has occurred.
   3. On a quarterly basis, report specified statistics of demographic characteristics of victims, accused labor traffickers, industries where trafficking occurred and agencies of referral.
8. Requires the LTU to develop a tracking and reporting system to collect labor trafficking reports and complaints that can be aggregated and analyzed to identify potential cases for further investigation by the DOJ or appropriate federal, state, local, or tribal law enforcement agency, or district attorney’s office for civil action, criminal prosecution, or other remedy.
9. Requires the LTU, on or before April 1, 2027 and annually thereafter, to submit a report to the Legislature that includes the following information pertaining to the prior calendar year:
   1. The number and type of reports or complaints received, including the date of receipt by the reporting agency and the date they were referred to the DOJ.
   2. The number and type of reports or complaints investigated by the DOJ.
   3. The number and type of referrals by the DOJ to law enforcement agencies.
   4. Descriptive statistics of demographic characteristics about labor trafficking victims correlated with the industry where the trafficking occurred, the services or support received and the agencies where they were referred, as specified.
   5. Descriptive statistics of demographic characteristics about persons accused of labor trafficking correlated with the industry where the trafficking occurred.
   6. A discussion of the major challenges to addressing labor trafficking reports and the ongoing efforts to address those challenges.
10. Sunsets the LTU reporting requirements on January 1, 2036.
11. Specifies that the operation of these provisions is contingent upon adequate appropriation by the Legislature and if adequate funding is not appropriated by January 1, 2030, these provisions shall be repealed unless a later enacted statute deletes or extends that date.

COMMENTS

1. Background on Labor Trafficking:

The United States remains one of the widely regarded destination countries for human trafficking; federal reports estimate that 14,500 to 17,500 victims are trafficked into the US annually. This does not include trafficking victims within the United States itself and, due to the clandestine nature of the underground economy, is almost certainly an underestimate. Human trafficking can take a number of forms, but generally involves compelling or coercing a person to provide labor or services, or to engage in commercial sex acts. As highlighted by the Attorney General’s website on human trafficking, “the coercion can be subtle or overt, physical or psychological, and may involve the use of violence, threats, lies, or debt bondage.”^[1]

The Attorney General’s website additionally notes, “Labor trafficking involves the recruitment, harboring, or transportation of a person for labor services, through the use of force, fraud, or coercion. It is modern day slavery. Labor trafficking arises in many situations, including domestic servitude, restaurant work, janitorial work, factory work, migrant agricultural work, and construction. It is often marked by unsanitary and overcrowded living and working conditions, nominal or no pay for work that is done, debt bondage, and document servitude. It occurs in homes and workplaces, and is often perpetrated by traffickers who are the same cultural origin and ethnicity as the victims, which allows the traffickers to use class hierarchy and cultural power to ensure the compliance of their victims. Labor traffickers often tell their victims that they will not be believed if they go to the authorities, that they will be deported from the United States, and that they have nowhere to run. Traffickers teach their victims to trust no one but the traffickers, so victims are often suspicious of genuine offers to help; they often expect that they will have to give something in return.”^[2]

Though existing law provides for training, workplace postings advising employees of their rights, and harsh penalties for human trafficking, the incentives to coerce people into servitude still exist.

2. Little Hoover Commission Reports:

In 2020, the Little Hoover Commission released three reports reviewing the state’s response to labor trafficking. The Commission noted that in California and elsewhere, much of the focus of law enforcement has appropriately been on combatting sex trafficking, particularly among minors, but believes that the state can and must do more to respond to labor trafficking.

In one of the reports, Labor Trafficking: Strategies to Uncover this Hidden Crime, the Commission found that while several state agencies play a role in combatting human trafficking, there is no coordinated strategy to target the crime statewide. Government agencies operate in silos, and no state agency has a mandate to look for labor trafficking.^[3] The Commission noted that while issues related to labor exploitation in California fall under the jurisdiction of the DIR, the agency does not proactively look for labor trafficking cases, in part because it does not have the authority to investigate labor trafficking cases. However, members of the Labor Enforcement Task Force – a multi-agency effort led by DIR to combat the underground economy – have observed signs of potential trafficking during inspections or received labor trafficking complaints and made 11 referrals of potential cases to the Department of Justice to investigate.^[4]

While California enacted anti-trafficking laws to support victims and increase penalties, more than 15 years since the first antihuman trafficking landmark legislation was enacted, no state agency currently has a mandate to combat, prevent and address labor trafficking. Two state agencies that do have jurisdiction to prosecute trafficking crimes are the Department of Justice (DOJ) and the Civil Rights Department (CRD). Both DOJ and CRD coordinate with DIR when encountering labor trafficking cases on an as needed basis. To help bring traffickers to justice, the Commission recommended that the state empower the DIR to lead efforts to pursue labor trafficking alongside its other work to combat the underground economy.

3. Legislative Efforts to Combat Labor Trafficking in Recent Years:

A couple of bills have been introduced in recent years to address the issue of labor trafficking and move forward some of the recommendations by the Little Hoover Commission.

AB 1820 (Arambula) of 2022 would have established the Labor Trafficking Unit within the Division of Labor Standards Enforcement (within DIR) to coordinate with the Labor Enforcement Task Force, the Criminal Investigation Unit, the Department of Justice, and the Civil Rights Department to combat labor trafficking. Specifically, the bill would have required the unit to receive and investigate complaints alleging labor trafficking and take steps to prevent labor trafficking. AB 1820 was vetoed by the Governor who stated the following:

While I am strongly supportive of efforts to combat labor trafficking, the California Civil Rights Department (CCRD) (formerly DFEH) is the appropriate state entity to take the lead in this effort per the amendments offered by my office. DLSE does not have authority to criminally or civilly prosecute these types of cases nor have the tools and resources necessary to assist labor trafficking survivors. CCRD is already active in this space and could seamlessly expand its efforts to more aggressively combat labor trafficking provided it is given new resources in the budget.

AB 380 (Arambula) of 2023 was nearly identical to AB 1820 of 2022 and was held under submission in the Senate Appropriations Committee. Also in 2023, AB 235 (B. Rubio) was introduced to establish a Labor Trafficking Unit within the CRD. AB 235 was held on the Assembly Appropriations Committee suspense file.

In 2024, this bill (AB 1888) and AB 1832 (B. Rubio, pending before this Committee) propose to target the issue in similar but, it appears, complementary ways. AB 1888 proposes to establish the Labor Trafficking Unit within the DOJ and requires the LTU to coordinate with various departments and agencies to investigate and combat labor trafficking. AB 1832 would establish the Labor Trafficking Task Force (LTTF) within the CRD and requires the LTTF to coordinate with various specified entities to take steps to prevent labor trafficking as well as receive and investigate complaints alleging labor trafficking. Because AB 1832 would require that the LTTF coordinates with the DOJ and AB 1888 requires DOJ to collaborate with CRD, it would appear that these bills could work together.

4. Need for this bill?

According to the author:

“In 2005, California enacted the first anti-trafficking laws to make human trafficking a felony in the state and to assist victims in transforming their lives. Currently, the Department of Justice (DOJ) has the jurisdiction to prosecute crimes related to human trafficking while the

Civil Rights Department (CRD) has the authority to prosecute civil complaints of human trafficking. Unfortunately, the current fragmented enforcement structure has meant that no single entity acts as a centralized referring entity with a mandate specific to labor trafficking. Coordination among local, state, and federal entities strengthens victim identification and holds traffickers accountable.

This bill ensures that the state prioritizes labor trafficking survivors through more efficient and comprehensive enforcement of existing labor trafficking laws. This bill ensures that coordination among various state entities will identify labor trafficking and address labor trafficking in order to stop the cycle and abuse of labor trafficking.”

5. Proponent Arguments:

According to the California Federation of Teachers:

“While labor trafficking is already without question illegal under California state law, enforcement remains a challenge. Numerous agencies maintain jurisdiction over labor trafficking and related crimes, which when added to staffing struggles among state agencies, create a situation in which too many labor trafficking crimes go undetected or inadequately punished. AB 1888 (Arambula) would create a special unit, among the affected agencies, that would specialize in enforcing these laws. The bill would also outline how the agencies work together and requires the unit to report relevant information to the legislature. We believe these reforms will move California much closer to where it needs to be to be in terms of fighting the extreme harms created by labor trafficking.”

6. Opponent Arguments:

None received.

7. Double Referral:

This bill has been double referred and was previously heard and passed by the Senate Public Safety Committee.

8. Prior/Related Legislation:

AB 380 (Arambula, 2023) would have established the

Labor Trafficking Unit (LTU) within DIR’s DLSE. AB 380 was held on the Senate Appropriations Committee suspense file.

AB 235 (B. Rubio, 2023) would have established the Labor Trafficking Unit (LTU) within the CRD. AB 235 was held on the Assembly Appropriations Committee suspense file.

AB 1149 (Grayson, 2023) would have established, until July 1, 2026, the California Multidisciplinary Alliance to Stop Trafficking Act (California MAST) to review collaborative models between governmental and nongovernmental organizations for protecting victims and survivors of trafficking, among other related duties. AB 1149 was held on the Assembly Appropriations Committee suspense file.

AB 1820 (Arambula, 2022, Vetoed) would have established the Labor Trafficking Unit within DIR’s DLSE. AB 1820 was vetoed by the Governor.

AB 2553 (Grayson, 2022) would have established the California Multidisciplinary Alliance to Stop Trafficking Act (California MAST) to examine collaborative models between governmental and nongovernmental organizations for protecting victims and survivors of trafficking. AB 2553 was held on the Senate Committee on Appropriations suspense file.

AB 2034 (Kalra, Chapter 812, Statutes of 2018) required businesses and establishments that operate in transportation or handle high volumes of traffic to train their employees in recognizing the signs of human trafficking and reporting suspected human trafficking.

SB 970 (Atkins, Chapter 842, Statutes of 2018) required that hotels and motels provide human trafficking education to employees who interact with the public.

AB 1684 (Stone, Chapter 63, Statutes of 2016) authorized the Department of Fair Employment and Housing (now the Civil Rights Department) to receive, investigate, mediate, and prosecute civil complaints on behalf of a victim of human trafficking.

SUPPORT

California Federation of Teachers, AFT, AFL-CIO
California Labor Federation
California Nurses Association/National Nurses United
California State Association of Electrical Workers
California State Pipe Trades Council
Community Legal Services in East Palo Alto
Consumer Attorneys of California
Little Hoover Commission
Los Angeles County District Attorney's Office
Loyola Law School, the Sunita Jain Anti-trafficking Initiative
Reclaim Foundation
San Diego County District Attorney's Office
Thai Community Development Center
Western States Council Sheet Metal, Air, Rail and Transportation

OPPOSITION

None received.

-- END --

1. “What is Human Trafficking?” Office of the Attorney General of California, https://oag.ca.gov/human-trafficking/what-is. ↑

2. Office of the Attorney General of California, https://oag.ca.gov/human-trafficking/what-is. ↑

3. Little Hoover Commission (September 2020, pages 3-4). Labor Trafficking: Strategies to Uncover this Hidden Crime. ↑

4. Little Hoover Commission (September 2020, pages 6-9). Labor Trafficking: Strategies to Uncover this Hidden Crime. ↑

SENATE COMMITTEE ON PUBLIC SAFETY

Senator Aisha Wahab, Chair

2023 - 2024 Regular

Bill No: AB 1888 Hearing Date: June 18, 2024

Subject: Department of Justice: Labor Trafficking Unit

HISTORY

Source: Department of Justice Labor Trafficking Unit

Prior Legislation: AB 1820 (Arambula) Vetoed 2022

AB 2553 (Grayson) held in Senate Appropriations 2022

Support: CFT- a Union of Educators & Classified Professionals, AFT, AFL-CIO

Opposition: None known

Assembly Floor Vote: 70 - 0

PURPOSE

This bill establishes the Labor Trafficking Unit (LTU) within the Department of Justice (DOJ)) and requires the LTU to coordinate with various departments and agencies to investigate and combat labor trafficking.

Existing law provides that any person who deprives or violates the personal liberty of another with the intent to obtain forced labor or services is guilty of human trafficking and shall be punished in the state prison for 5, 8, or 12 years and a fine of not more than $500,000. (Penal Code § 236.1 (a).)

Existing law provides that a victim of human trafficking may bring a civil action for damages, compensatory damages, punitive damages, injunctive relief, and combination thereof, or any other appropriate relief. (Civil Code § 52.5.)

Existing law provides that when the Attorney General deems it advisable or necessary in the public interest, or when directed to do so by the Governor, the Attorney General shall assist any district attorney in the discharge of the district attorney’s duties, and may, if deemed necessary, take full charge of any investigation or prosecution of violations of law of which the superior court has jurisdiction. In this respect, the Attorney General has all the powers of a district attorney. (Government Code § 12550.)

Existing law authorizes the CRD to receive, investigate, conciliate, mediate, and prosecute complaints alleging, and to bring civil actions for, a violation of the crime of human trafficking, as specified. (Government Code § 12930 (f)(3).)

Existing law establishes the LETF under the direction of Department of Industrial Relations (DIR) to enforce activities regarding labor, tax, and licensing law violators operating in the underground economy. (Unemp. Ins. Code §329.)

This bill establishes the LTU within the DOJ to be the centralized enforcement, referral, and investigative unit to combat labor trafficking and requires coordination with the Labor Enforcement Task Force (LETF), the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, the Joint Enforcement Strike Force on the Underground Economy, and the Civil Rights Department (CRD).

This bill provides that the LTU shall receive, investigate, and process complaints alleging labor trafficking and take steps to prevent labor trafficking.

This bill allows the LTU to coordinate with state and local law enforcement agencies, tribal law enforcement agencies, and district attorney’s offices when investigating criminal actions relating to labor trafficking.

This bill states that LTU must follow protocols to ensure that survivors are not further victimized by the process of reporting, investigating, or prosecuting labor traffickers and are informed of the services available to them.

This bill allows the LTU to coordinate with state, tribal, and local entities to connect survivors to available services.

This bill requires Members of the LTU, members of the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, members of the Joint Enforcement Strike Force on the Underground Economy, and CRD to collaborate with LTU to develop policies, procedures, and protocols to track, record, and report potential labor trafficking activity.

This bill requires all the entities described above to train their investigators who are most likely encounter labor trafficking to recognize warning signs of potential labor trafficking and to report to the unit when, upon investigating businesses under their purview, there is evidence of labor trafficking.

This bill requires the LTU to develop a tracking and reporting system to collect reports from all the aforementioned entities on labor trafficking.

This bill requires the LTU to aggregate and analyze the reports to identify potential complaints to be further investigated or referred for investigation to the appropriate agency..

This bill defines the following terms, for the purposes of this section:

• 1. “Forced labor or services” means labor or services that are performed or provided by a person and are obtained or maintained through force, fraud, duress, coercion, or equivalent conduct that would reasonably overbear the will of the person;
     
  2. “Labor trafficking” means depriving or violating the personal liberty of another person with the intent to obtain forced labor or services; and,
     
  3. “Unit” mean the Labor Trafficking Unit established DOJ

This bill requires the LTU to submit a report to the Legislature on or before January 1, 2026, and every year thereafter to include the following information pertaining to the prior calendar year:

1. The number and type of complaints or referral received, including the source of referrals;
2. The number and type of complaints or referrals investigated, including, but not limited to population data about those accused of labor trafficking;
3. The number of complaints referred for civil action.
4. The number of complaints referred for criminal prosecution;
5. The number of referrals and coordination’s with state, local, and tribal law enforcement agencies and district attorney’s offices;
6. The outcome of each complaint, regardless of the agency where the complaint was resolved;
7. Population data about confirmed labor trafficking victims correlated with the industry where the trafficking occurred; and,
8. Information about labor trafficking victims who were referred for services correlated with the name of the agencies where the labor trafficking victim was referred for services.
   

This bill requires the LTU to include in each annual report a discussion of the major challenges to addressing labor trafficking complaints, the ongoing efforts to address those challenges, and options to improve the state’s claim process, including preventing further victimization of survivors.

This bill sunsets the reporting requirements on January 1, 2036.

COMMENTS

1. Need for This Bill

According to the author:

Trafficked employees face threats from their employers relating to documentation status, harm to their families, and loss of wages that prevent them from trying to escape and seek help. Traffickers often target vulnerable populations such as foster children, homeless and runaway youth, foreign nationals, and individuals living in poverty. Unfortunately, the current fragmented enforcement structure means that no single entity holds the mandate to specifically investigate, refer, and enforce labor trafficking laws. By establishing a dedicated labor trafficking unit within the Department of Justice (DOJ), the state can take the necessary steps to stop the abuses of workers.

2. Labor Trafficking

According to the Attorney General’s Website: “Labor trafficking involves the recruitment, harboring, or transportation of a person for labor services, through the use of force, fraud, or coercion. It is modern day slavery. Labor trafficking arises in many situations, including domestic servitude, restaurant work, janitorial work, factory work, migrant agricultural work, and construction. It is often marked by unsanitary and overcrowded living and working conditions, nominal or no pay for work that is done, debt bondage, and document servitude. It occurs in homes and workplaces, and is often perpetrated by traffickers who are the same cultural origin and ethnicity as the victims, which allows the traffickers to use class hierarchy and cultural power to ensure the compliance of their victims. Labor traffickers often tell their victims that they will not be believed if they go to the authorities, that they will be deported from the United States, and that they have nowhere to run. Traffickers teach their victims to trust no one but the traffickers, so victims are often suspicious of genuine offers to help; they often expect that they will have to give something in return.” (What is Human Trafficking?, DOJ, available at: https://oag.ca.gov/human-trafficking/what-is. [As of March 19, 2024].)

3. Little Hoover Commission Reports

The Little Hoover Commission released a new report in February 2024, regarding the status of human trafficking in California, along with updated suggestions to their previous reports from 2020. In the fall of 2020 the commission had issued three reports regarding labor trafficking in California. They included: Human Trafficking: Coordinating a California Response, (June 2020); Labor Trafficking: Strategies to Uncover this Hidden Crime, (September 2020); Labor Trafficking: Strategies to Help Victims and Bring Traffickers to Justice, (October 2020). All of these reports had a wide range of recommendations for California to combat labor trafficking. It is of note, that both sex trafficking and labor trafficking are wide spread in California, but the state’s response to labor trafficking has sorely lacked both direction and resources.

The 2024 report states, “Labor trafficking is a form of human trafficking that often is hidden, sometimes in plain sight. It can occur within homes or businesses that might otherwise be legitimate, making it challenging to detect. More often, the onus to report is placed on survivors, who, for a variety of reasons—such as fear of deportation or shame—may be resistant to come forward.” ((Implementation Review: California’s Response to Labor Trafficking, Little Hoover Commission (Feb. 2024), at pp. 7-15. Available at <Report278.pdf (ca.gov)> ) [as of Mar. 20, 2024]. “Finding instances of potential labor trafficking, then effectively investigating and building cases to successfully prosecute these crimes is challenging. Detecting labor trafficking can be complicated by the fact that government officials often operate in silos. Law enforcement, for instance, is typically responsible for addressing the criminal aspects of trafficking crimes, but these officials are often unfamiliar with the employment context of labor trafficking and may dismiss potential cases as employment problems. Meanwhile, several state agencies have authority to investigate criminal activities and violations inherent in labor abuses, including trafficking crimes. Yet none has a mandate to specifically investigate labor trafficking complaints.” (Id. at p. 15)

“To help bring traffickers to justice, the Commission recommended that the state empower the Department of Industrial Relations (DIR) to lead efforts to pursue labor trafficking alongside its other work to combat the underground economy.” (Id. at p. 15)

4. Labor Trafficking Unit

This bill would establish the LTU, within the Department of Justice, to receive and investigate complaints alleging labor trafficking and subsequently refer them for criminal prosecution or civil action by the appropriate entity.

5. Other legislation

AB 1832 (Blanca Rubio) is scheduled to be heard at the same hearing as this bill. Establishes the Labor Trafficking Task Force (LTTF) within the Civil Rights Department (CRD) and requires the LTTF to coordinate with the Labor Enforcement Task Force (LETF), the Department of Justice (DOJ), and the Division of Labor Standards Enforcement (DLSE).

Because this bill requires DOJ to collaborate with CRD, and AB 1832 requires that the LTTF coordinates with the DOJ and AB 1888 it would appear that these bills can work together.

6. Governor’s Veto Message.

AB 1820 (Arambula), of 2021-2022 Legislative Session, was substantially similar to this bill and was vetoed. The Governor’s veto message stated:

While I am strongly supportive of efforts to combat labor trafficking, the California Civil Rights Department (CCRD) (formerly DFEH) is the appropriate state entity to take the lead in this effort per the amendments offered by my office. DLSE does not have authority to criminally or civilly prosecute these types of cases nor have the tools and resources necessary to assist labor trafficking survivors. CCRD is already active in this space and could seamlessly expand its efforts to more aggressively combat labor trafficking provided it is given new resources in the budget.

This bill appears to addresses some of the Governor’s concerns by pacing LTU in the DOJ and allowing it to refer labor trafficking cases to the Civil Rights Department.

7. Argument in Support

CFT supports this bill stating:

While labor trafficking is already without question illegal under California state law, enforcement remains a challenge. Numerous agencies maintain jurisdiction over labor trafficking and related crimes, which when added to staffing struggles among state agencies, create a situation in which too many labor trafficking crimes go undetected or inadequately punished.

AB 1888 (Arambula) would create a special unit, among the affected agencies, that would specialize in enforcing these laws. The bill would also outline how the agencies work together and requires the unit to report relevant information to the legislature. We believe these reforms will move California much closer to where it needs to be in terms of fighting the extreme harms created by labor trafficking.

-- END –

ASSEMBLY THIRD READING

ATR Bill Id:AB 1888

Author:(Arambula and Ramos)

As Amended Ver:May 20, 2024

Majority vote

SUMMARY

Establishes the Labor Trafficking Unit (LTU) within the Department of Justice (DOJ) to serve as the centralized enforcement, referral, and investigative unit to combat labor trafficking in coordination with other state entities.

Major Provisions

1. Defines "labor trafficking" to mean depriving or violating the personal liberty of another person with the intent to obtain forced labor or services.
2. Establishes the LTU within the Department of Justice (DOJ) to serve as the centralized enforcement, referral, and investigative unit to combat labor trafficking in coordination with the Labor Enforcement Task Force (LETF), the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, the Joint Enforcement Strike Force on the Underground Economy (JESF), and the Civil Rights Department (CRD).
3. Requires the LTU to receive, investigate, and process complaints alleging labor trafficking and take steps to prevent labor trafficking.
4. Authorizes the LTU to coordinate with state and local law enforcement agencies, tribal law enforcement agencies, and district attorneys' offices when investigating criminal actions relating to labor trafficking.
5. Requires the LTU to follow protocols to ensure that survivors are not further victimized by the process of reporting, investigating, or prosecuting labor traffickers and are informed of the services available to them. The LTU may coordinate with state, tribal, and local entities to connect survivors to available services.
6. Requires members of the LETF, members of the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, members of the JESF, and the CRD to collaborate with the LTU to develop policies, procedures, and protocols to track, record, and report potential labor trafficking activity.
7. Requires the entities in 6), above, to train their investigators who are most likely to encounter labor trafficking to recognize warning signs of potential labor trafficking and to report to the LTU when, upon investigating businesses under their purview, there is evidence of labor trafficking. The LTU shall develop a tracking and reporting system to collect these reports. These reports shall be aggregated and analyzed to identify potential complaints to be further investigated or referred for investigation to the appropriate agency, as specified.
8. Requires, on or before January 1, 2026, and on or before January 1 every year thereafter, the LTU to submit a report to the Legislature that includes the following information pertaining to the prior calendar year:
   1. The number and type of complaints or referrals received, including the source of any referrals.
   2. The number and type of complaints or referrals investigated, including, but not limited to, population data about those accused of labor trafficking.
   3. The number and type of reports pursuant to 7), above, that were successfully converted into complaints.
   4. The number of complaints referred for civil action.
   5. The number of complaints referred for criminal prosecution.
   6. The number of referrals and coordinations with state, local and tribal law enforcement agencies and district attorneys' offices.
   7. The outcome of each complaint, regardless of the agency where the complaint was resolved.
   8. Population data about confirmed labor trafficking victims correlated with the industry where the trafficking occurred.
   9. Information about labor trafficking victims who were referred for services correlated with the name of the agencies where the labor trafficking victim was referred for services.
   10. A discussion of the major challenges to addressing labor trafficking complaints, the ongoing efforts to address those challenges, and options to improve the state's claim process, including preventing further victimization of survivors.
9. Provides that the requirement to submit an annual report sunsets on January 1, 2036.

COMMENTS

While data on the extent of labor trafficking in California is sparse and likely due to a lack of centralized case reporting, we know that more than 9,000 cases of human trafficking in the state have been reported since 2007.^[1] In terms of demographics, "labor trafficking victims may be men or women, young or old, native-born citizens or immigrants. However, a few commonalities are apparent. Most victims are in the prime working years of 18 to 40. Many are immigrants who have entered the country legally to perform some kind of temporary work and become unauthorized due to their trafficking."^[2]

Since 2020, the Little Hoover Commission has been studying the state's efforts to combat labor trafficking, issuing three reports and recently holding a public hearing in 2023. In its 2020 report, the Commission identified a number of challenges in California's current anti-trafficking strategy. For example, the lack of a coordinated effort to address labor trafficking is called out as a significant challenge. The Commission writes, "We have no permanent entity to coordinate the state's overall fight against human trafficking or to develop information-sharing protocols between state organizations and their local and federal partners. Twice since 2007, the Department of Justice led a temporary statewide coordinating body to investigate and propose cross-agency strategies to address human trafficking. But these bodies disbanded after issuing recommendations."^[3]

According to the Author

According to the author, "Trafficked employees face threats from their employers relating to documentation status, harm to their families, and loss of wages that prevent them from trying to escape and seek help. Traffickers often target vulnerable populations such as foster children, homeless and runaway youth, foreign nationals, and individuals living in poverty. Unfortunately, the current fragmented enforcement structure means that no single entity holds the mandate to specifically investigate and enforce labor trafficking laws. By establishing a dedicated labor trafficking unit within the Department of Industrial Relations (DIR), a department with expertise in labor rights and laws, the state can take the necessary steps to stop the abuses of workers."

The author further states that, "Exploitation occurs in many industries. Employees live and work in substandard conditions, while also experiencing unfair wages and wage theft. California has the highest rate of human trafficking cases. The transportation of goods and forced human labor places the state at a critical risk. This bill promotes equity by implementing more effective investigations of labor trafficking and prosecution. It maximizes benefits for underserved communities by supporting victims of labor trafficking through legal action and resources to ensure justice."

Arguments in Support

The Sunita Jain Anti-Trafficking Initiative, sponsor of the bill, states, "In 2021, the Little Hoover Commission highlighted that California has focused almost exclusively on combating sex trafficking and needs to do more to prevent labor trafficking in our state. Further they concluded based on statewide stakeholder input that California's efforts to prevent labor trafficking are fragmented and a major issue is a lack of a directive to current state agencies to lead efforts to prevent labor trafficking and coordinate with other agencies such as California Department of Justice (DOJ) and Department of Fair Employment and Housing (DFEH) to stop trafficking before it starts. In a recent report released in February 2024, the Commission explicitly concluded that "by empowering the Department of Industrial Relations to take a lead role in investigating allegations of labor trafficking, the state could help gather the information necessary for prosecutions and begin to take steps to proactively target worker outreach efforts in appropriate industries or geographic hotspots."

AB 1888 (Arambula) - the California Labor Trafficking Prevention Act - seeks to protect California's most vulnerable workers from being taken advantage of by unscrupulous individuals and businesses who force them to work under duress with little to no pay. This bill will provide the DIR with statutory authority to investigate and coordinate work statewide by creating a specialized Labor Trafficking Unit and collect data across state agencies. This is an important first step in properly preventing, investigating, and coordinating state efforts to put a stop to the abuses of workers in our state, and decades overdue."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee,

1. Costs of an unknown amount to DIR, through its LETF, which includes Cal/OSHA and DLSE, to collaborate with the LTU to develop policies and protocols to track and report potential labor trafficking activities, and train investigators to recognize and report evidence of labor trafficking to the LTU (special fund). Other LETF members that may incur similar costs include EDD, the Contractor State License Board, Department of Insurance, Department of Tax and Fee Administration, Bureau of Automotive Repair, and Department of Alcoholic Beverage Control.
2. Costs of an unknown amount, potentially between $5 million to $8 million annually to DOJ to staff and set up the LTU to receive, investigate, and process or refer complaints; provide support to survivors; and prepare the annual report (General Fund (GF)). The Criminal Law Division's Special Prosecutions Section currently receives five to 12 labor trafficking allegations per year from DIR and anticipates this number to increase upon establishment of the LTU, necessitating additional positions. DOJ may also incur additional costs to train task force investigators to recognize and report evidence of labor trafficking to the LTU.
3. Annual costs of approximately $3.9 million, beginning fiscal year 2025-26, to CRD for an additional 20 positions, including senior and junior attorneys to litigate civil actions and coordinate with other agencies, investigators, an experienced mediator, bilingual outreach workers, and administrative and information technology support staff (GF). The cost estimate also includes $125,000 annually for operational expenses, such as expert consultants for civil actions, translation and interpretation services, the bilingual pay differential for certified bilingual employees, and travel expenses to visit worksites and other locations statewide to help survivors.

According to the Legislative Analyst's Office, the GF faces a structural deficit in the tens of billions of dollars over the next several FYs.

VOTES

ASM LABOR AND EMPLOYMENT: 7-0-0

YES: Ortega, Flora, Alanis, Wendy Carrillo, Lee, Ward, Zbur

ASM PUBLIC SAFETY: 8-0-0

YES: McCarty, Alanis, Lackey, Stephanie Nguyen, Reyes, Ting, Wilson, Zbur

ASM APPROPRIATIONS: 11-0-4

YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Mike Fong, Grayson, Haney, Hart, Pellerin, Villapudua

ABS, ABST OR NV: Sanchez, Dixon, Jim Patterson, Ta

UPDATED

VERSION: May 20, 2024

CONSULTANT: Megan Lane / L. & E. / (916) 319-2091 FN: 0003297

1. Polaris. National Human Trafficking Hotline and BeFree Textline. California Statistics. ↑

2. Little Hoover Commission, "Human Trafficking: Coordinating a California Response." Report #250. June 2020. P.5. ↑

3. Ibid at 9. ↑

Date of Hearing: April 17, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1888

Author:(Arambula) – As Amended Ver:March 4, 2024

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill establishes the Labor Trafficking Unit (LTU) within the Division of Labor Standards Enforcement (DLSE).

Specifically, this bill:

1. Establishes the LTU within DLSE to coordinate with the Criminal Investigation Unit, Labor Enforcement Task Force (LETF), Department of Justice (DOJ), Employment Development Department (EDD), and Civil Rights Department (CRD) to combat labor trafficking.
2. Requires the LTU to receive, investigate, and process complaints alleging labor trafficking.
3. Authorizes the Department of Industrial Relations (DIR) to impose a civil penalty for each violation of law added by this bill and authorizes LTU to refer labor trafficking violations to CRD.
4. Requires the LTU to coordinate with or refer criminal labor trafficking violations to DOJ for potential criminal prosecutions and authorizes the LTU to coordinate with law enforcement agencies when investigating criminal actions relating to labor trafficking.
5. Authorizes the LTU to coordinate with state, tribal, and local entities to connect survivors to available services.
6. Requires the Division of Occupational Safety and Health (Cal/OSHA), CRD, and members of specified DOJ and EDD task forces to collaborate with the LTU to develop procedures to track, record, and report potential labor trafficking activity, including training investigators most likely to encounter labor trafficking to recognize warning signs and report evidence of labor trafficking to the LTU.
7. Requires, beginning January 1, 2026, and until January 1, 2036, the LTU to submit an annual report to the Legislature with specified information about complaints and referrals, as well as discussion of efforts to resolve the challenges of addressing complaints.

FISCAL EFFECT:

1. Costs of approximately $4.3 million in the first year and $4.0 million annually thereafter to DLSE to enhance labor trafficking efforts (Labor Enforcement and Compliance Fund). DLSE will incur significant costs to staff and set up the LTU to receive, investigate, and process or refer complaints; provide support to survivors; and prepare the annual report. Other impacts across DIR include minor and absorbable costs to LETF to coordinate with the LTU and one-time costs of approximately $10,000 to $25,000 to Cal/OSHA to train investigators to recognize and report evidence of labor trafficking to the LTU (Occupational Safety and Health Fund).
2. Costs of approximately $1.6 million in FY 2024-25 and costs of approximately $2.8 million annually thereafter to DOJ (General Fund (GF)). The Criminal Law Division’s Special Prosecutions Section currently receives five to 12 labor trafficking allegations per year from DIR and anticipates this number to increase upon establishment of the LTU, necessitating an additional 15 positions, including one supervising deputy, two deputy attorneys general, four investigators, and three legal secretaries. DOJ may also incur additional costs to train task force investigators to recognize and report evidence of labor trafficking to the LTU.
3. Costs of approximately $500,000 in the first year and $400,000 annually thereafter to EDD to hire additional staff, train task force investigators, and report evidence of labor trafficking to the LTU (GF).
4. Annual costs of approximately $3.9 million, beginning fiscal year 2025-26, to CRD for an additional 20 positions, including senior and junior attorneys to litigate civil actions and coordinate with other agencies, investigators, an experienced mediator, bilingual outreach workers, and administrative and information technology support staff (GF). The cost estimate also includes $125,000 annually for operational expenses, such as expert consultants for civil actions, translation and interpretation services, the bilingual pay differential for certified bilingual employees, and travel expenses to visit worksites and other locations statewide to help survivors.

According to the Legislative Analyst’s Office, the GF faces a structural deficit in the tens of billions of dollars over the next several FYs.

COMMENTS:

1. Purpose. According to the author:

Trafficked employees face threats from their employers relating to documentation status, harm to their families, and loss of wages that prevent them from trying to escape and seek help…Unfortunately, the current fragmented enforcement structure means that no single entity holds the mandate to specifically investigate and enforce labor trafficking laws. By establishing a dedicated [LTU] within [DIR], a department with expertise in labor rights and laws, the state can take the necessary steps to stop the abuses of workers.

This bill sponsored by the Sunita Jain Anti-Trafficking Initiative, a project at Loyola Law School, and supported by the Little Hoover Commission (LHC), Consumer Attorneys of California, and various labor organizations.

1. Background.

LHC Reports. In 2020, the LHC released three reports reviewing the state’s response to labor trafficking, noting that the state’s efforts thus far have focused mainly on sex trafficking. LHC found that, while several state agencies play a role in combatting human trafficking, there is no coordinated strategy to target the crime statewide – no state agency has a mandate to look for labor trafficking and existing agency efforts are siloed. LHC noted, while issues related to labor exploitation fall under DIR jurisdiction, DIR does not proactively look for labor trafficking cases, in part because DIR does not have the authority to investigate cases. LHC recommended the state empower DIR to lead efforts to pursue labor trafficking alongside its other work to combat the underground economy.

LETF Efforts. DIR primarily works to combat the underground economy through its LETF, additionally comprised of the Labor and Workforce Development Agency, EDD, Contractor’s State Licensing Board, Department of Insurance, State Board of Equalization, Bureau of Automotive Repair, and DOJ. LETF shares information and resources to ensure workers receive proper payment of wages and have safe working environments, while ensuring the state receives all employment taxes, fees, and penalties due from employers. The LHC found LETF members have observed signs of potential trafficking during inspections or received labor trafficking complaints, referring nearly one dozen potential cases to DOJ for investigation.

This bill augments existing DIR efforts by establishing the LTU within DLSE to receive, investigate, and process complaints alleging labor trafficking and requires Cal/OSHA and other agencies to train investigators to recognize and report signs of labor trafficking to the LTU. This bill outlines other agencies to which the LTU may refer civil and criminal violations, but generally authorizes the LTU to process both types of violations internally. However, this bill authorizes DIR to impose a civil penalty “for each violation of this section” establishing the LTU, instead of authorizing DIR to impose a civil penalty against a labor trafficking violation.

1. Prior Legislation, Related Legislation, and Competing Approaches. AB 1820 (Arambula), of the 2021-22 Legislative Session, was substantively similar to this bill. AB 1820 was vetoed by Governor Newsom, who stated:

While I am strongly supportive of efforts to combat labor trafficking, [CRD] is the appropriate state entity to take the lead in this effort per the amendments offered by my office. DLSE does not have authority to criminally or civilly prosecute these types of cases nor have the tools and resources necessary to assist labor trafficking survivors. [CRD] is already active in this space and could seamlessly expand its efforts to more aggressively combat labor trafficking provided it is given new resources in the budget.

This bill, similar to its predecessor in this legislative session, AB 380 (Arambula), keeps the LTU at DLSE. AB 380 (Arambula) was held on the Senate Appropriation Committee’s suspense file.

In contrast, AB 1832 (Rubio), similar to its predecessor in this legislative session, AB 235 (Rubio), shifts the LTU (or “Labor Trafficking Task Force”) to CRD, as suggested by the Governor. AB 1832 is pending hearing in this committee and AB 235 was held on this committee’s suspense file.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 2, 2024

Consultant: Elizabeth Potter

ASSEMBLY COMMITTEE ON

Kevin McCarty, Chair

ABPCA Bill Id:

Author:() – As Ver:

SUMMARY: Establishes the Labor Trafficking Unit (LTU) within the Division of Labor Standards Enforcement (DLSE) and requires the LTU to coordinate with various departments and agencies to investigate and combat labor trafficking. Specifically, this bill:

1. Establishes the LTU within the DLSE and requires coordination with the Criminal Investigation Unit, the Labor Enforcement Task Force (LETF), the Department of Justice (DOJ), including the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, the Employment Development Department, including the Joint Enforcement Strike Force on the Underground Economy, and the Civil Rights Department (CRD) to combat labor trafficking.
   
2. Requires the LTU to receive, investigate, and process complaints alleging labor trafficking and take steps to prevent labor trafficking.
   
3. Authorizes the LTU to impose a civil penalty for violations of the human trafficking section of the Penal Code, as specified.
   
4. Requires that any civil penalties collected by LTU be awarded to the person harmed;
   
5. Allows the LTU to recover costs and attorney’s fees incurred when civil penalties are collected.
   
6. Allows the LTU to refer labor trafficking violations to CRD.
   
7. Requires the LTU to coordinate with or refer criminal labor trafficking violations to DOJ for potential criminal prosecutions.
   
8. Allows the LTU to coordinate with state and local law enforcement agencies, tribal law enforcement agencies, and district attorney’s offices when investigating criminal actions relating to labor trafficking.
   
9. States that LTU must follow protocols to ensure that survivors are not further victimized by the process of reporting, investigating, or prosecuting labor traffickers and are informed of the services available to them.
   
10. Allows the LTU to coordinate with state, tribal, and local entities to connect survivors to available services.
    
11. Requires the Division of Occupational Safety and Health, members of the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, members of the Joint Enforcement Strike Force on the Underground Economy, and CRD to collaborate with LTU to develop policies, procedures, and protocols to track, record, and report potential labor trafficking activity.
    
12. Requires all the entities described above to train their investigators who are most likely encounter labor trafficking to recognize warning signs of potential labor trafficking and to report to the unit when, upon investigating businesses under their purview, there is evidence of labor trafficking.
    
13. Requires the LTU to develop a tracking and reporting system to collect reports from all the aforementioned entities on labor trafficking.
    
14. Requires the LTU to aggregate and analyze the reports to identify potential complaints to be further investigated or referred for investigation.
    
15. Defines the following terms, for the purposes of this section:
    
    1. “Forced labor or services” means labor or services that are performed or provided by a person and are obtained or maintained through force, fraud, duress, coercion, or equivalent conduct that would reasonably overbear the will of the person;
       
    2. “Labor trafficking” means depriving or violating the personal liberty of another person with the intent to obtain forced labor or services; and,
       
    3. “Unit” mean the Labor Trafficking Unit established within the Division of Labor Standards Enforcement.
       
16. Requires the LTU to submit a report to the Legislature on or before January 1, 2026, and every year thereafter to include the following information pertaining to the prior calendar year:
    
    1. The number and type of complaints or referral received, including the source of referrals;
       
    2. The number and type of complaints or referrals investigated, including, but not limited to population data about those accused of labor trafficking;
       
    3. The number of complaints referred to the Civil Rights Department;
       
    4. The number of complaints referred to the DOJ;
       
    5. The number of referrals and coordinations with state, local, and tribal law enforcement agencies and district attorney’s offices;
       
    6. The outcome of each complaint, regardless of the agency where the complaint was resolved;
       
    7. Population data about confirmed labor trafficking victims correlated with the industry where the trafficking occurred; and,
       
    8. Information about labor trafficking victims who were referred for services correlated with the name of the agencies where the labor trafficking victim was referred for services.
       
17. Requires the LTU to include in each annual report a discussion of the major challenges to addressing labor trafficking complaints, the ongoing efforts to address those challenges, and options to improve the state’s claim process, including preventing further victimization of survivors.
    
18. Sunsets the reporting requirements on January 1, 2036.

EXISTING LAW:

1. Provides that any person who deprives or violates the personal liberty of another with the intent to obtain forced labor or services is guilty of human trafficking and shall be punished in the state prison for 5, 8, or 12 years and a fine of not more than $500,000. (Pen. Code, § 236.1., subd. (a).)
   
2. Provides that a victim of human trafficking may bring a civil action for damages, compensatory damages, punitive damages, injunctive relief, and combination thereof, or any other appropriate relief. (Civ. Code, § 52.5.)
   
3. Provides that when the Attorney General deems it advisable or necessary in the public interest, or when directed to do so by the Governor, the Attorney General shall assist any district attorney in the discharge of the district attorney’s duties, and may, if deemed necessary, take full charge of any investigation or prosecution of violations of law of which the superior court has jurisdiction. In this respect, the Attorney General has all the powers of a district attorney. (Gov. Code, § 12550.)
   
4. Authorizes the CRD to receive, investigate, conciliate, mediate, and prosecute complaints alleging, and to bring civil actions for, a violation of the crime of human trafficking, as specified. (Gov. Code, § 12930, subd. (f)(3).)
   
5. Establishes the LETF under the direction of Department of Industrial Relations (DIR) to enforce activities regarding labor, tax, and licensing law violators operating in the underground economy. (Unemp. Ins. Code, §329.)

FISCAL EFFECT: Unknown

COMMENTS:

1. Author's Statement: According to the author, "Trafficked employees face threats from their employers relating to documentation status, harm to their families, and loss of wages that prevent them from trying to escape and seek help. Traffickers often target vulnerable populations such as foster children, homeless and runaway youth, foreign nationals, and individuals living in poverty. Unfortunately, the current fragmented enforcement structure means that no single entity holds the mandate to specifically investigate and enforce labor trafficking laws. By establishing a dedicated labor trafficking unit within the Department of Industrial Relations (DIR), a department with expertise in labor rights and laws, the state can take the necessary steps to stop the abuses of workers.”
   
   
2. Labor Trafficking: According to the Attorney General’s Website: “Labor trafficking involves the recruitment, harboring, or transportation of a person for labor services, through the use of force, fraud, or coercion. It is modern day slavery. Labor trafficking arises in many situations, including domestic servitude, restaurant work, janitorial work, factory work, migrant agricultural work, and construction. It is often marked by unsanitary and overcrowded living and working conditions, nominal or no pay for work that is done, debt bondage, and document servitude. It occurs in homes and workplaces, and is often perpetrated by traffickers who are the same cultural origin and ethnicity as the victims, which allows the traffickers to use class hierarchy and cultural power to ensure the compliance of their victims. Labor traffickers often tell their victims that they will not be believed if they go to the authorities, that they will be deported from the United States, and that they have nowhere to run. Traffickers teach their victims to trust no one but the traffickers, so victims are often suspicious of genuine offers to help; they often expect that they will have to give something in return.” (What is Human Trafficking?, DOJ, available at: https://oag.ca.gov/human-trafficking/what-is. [As of March 19, 2024].)
   
3. Little Hoover Commission Reports: The Little Hoover Commission released a new report in February 2024, regarding the status of human trafficking in California, along with updated suggestions to their previous reports from 2020. In the fall of 2020 the commission had issued three reports regarding labor trafficking in California. They included: Human Trafficking: Coordinating a California Response, (June 2020); Labor Trafficking: Strategies to Uncover this Hidden Crime, (September 2020); Labor Trafficking: Strategies to Help Victims and Bring Traffickers to Justice, (October 2020). All of these reports had a wide range of recommendations for California to combat labor trafficking. It is of note, that both sex trafficking and labor trafficking are wide spread in California, but the state’s response to labor trafficking has sorely lacked both direction and resources.
   
   The 2024 report states, “Labor trafficking is a form of human trafficking that often is hidden, sometimes in plain sight. It can occur within homes or businesses that might otherwise be legitimate, making it challenging to detect. More often, the onus to report is placed on survivors, who, for a variety of reasons—such as fear of deportation or shame—may be resistant to come forward.” ((Implementation Review: California’s Response to Labor Trafficking, Little Hoover Commission (Feb. 2024), at pp. 7-15. Available at <Report278.pdf (ca.gov)> ) [as of Mar. 20, 2024]. “Finding instances of potential labor trafficking, then effectively investigating and building cases to successfully prosecute these crimes is challenging. Detecting labor trafficking can be complicated by the fact that government officials often operate in silos. Law enforcement, for instance, is typically responsible for addressing the criminal aspects of trafficking crimes, but these officials are often unfamiliar with the employment context of labor trafficking and may dismiss potential cases as employment problems. Meanwhile, several state agencies have authority to investigate criminal activities and violations inherent in labor abuses, including trafficking crimes. Yet none has a mandate to specifically investigate labor trafficking complaints.” (Id. at p. 15)
   
   “To help bring traffickers to justice, the Commission recommended that the state empower the Department of Industrial Relations (DIR) to lead efforts to pursue labor trafficking alongside its other work to combat the underground economy.” (Id. at p. 15)
   
   This bill would establish the LTU, within the Division of Labor Standards Enforcement, to receive and investigate complaints alleging labor trafficking and subsequently refer them for criminal prosecution by the DOJ or for civil action by the CRD.
   
4. Governor’s Veto Message: AB 1820 (Arambula), of 2021-2022 Legislative Session, was substantially similar to this bill and was vetoed. The Governor’s veto message stated:
   
   “While I am strongly supportive of efforts to combat labor trafficking, the California Civil Rights Department (CCRD) (formerly DFEH) is the appropriate state entity to take the lead in this effort per the amendments offered by my office. DLSE does not have authority to criminally or civilly prosecute these types of cases nor have the tools and resources necessary to assist labor trafficking survivors. CCRD is already active in this space and could seamlessly expand its efforts to more aggressively combat labor trafficking provided it is given new resources in the budget.
   
   This bill addresses some of the Governor’s concerns. It would allow the LTU to refer labor trafficking cases to the Civil Rights Department.
   
5. Argument in Support: According to The Sunita Jain Anti-Trafficking Initiative (SJI), a project at Loyola Law School, a sponsor of this bill, “The Sunita Jain Anti-Trafficking Initiative (SJI), a project at Loyola Law School is a proud sponsor of AB 1888 (Arambula) and respectfully requests your support for it. SJI is an evidenced based and survivor- informed think tank that intentionally fills gaps in human trafficking prevention through advocating for systemic change and policy innovation. SJI’s team consists of experienced practitioners who have been working directly with survivors of trafficking and on policy initiatives to address and curtail human trafficking for over 20 years.
   
   “California has the highest number of human trafficking cases in the nation reported to the National Human Trafficking Hotline. In the wake of COVID-19 and the accompanying global recession, the number of people vulnerable to human trafficking in the United States has only increased.
   
   “As noted in a RAND report released May 2023, Labor Trafficking remains difficult to study and address because of several reasons including, (1) victims are often not aware of their rights, (2) victims can be undocumented or displaced people whom current state and federal laws might not adequately protect (i.e. fear of deportation if they come forward), (3) lack of centralized reporting mechanism and (4) victims are under identified and undercounted because investigating and prosecuting labor trafficking can be very difficult. AB 1888 seeks to address these difficulties in granting authority to the Department of Industrial Relations (DIR) to investigate and support such claims – claims we are certain they are already coming into contact with based on our on the ground experience with labor trafficking victims who to often are not identified by systems actors.
   
   “The passing of this bill is crucial to safeguarding the rights of all workers in Calfiornia and preventing labor trafficking. For years now, advocates have seen individuals subjected to labor trafficking in a wide number of trades and businesses – from agriculture, factories, construction, janitorial services, domestic work, to jobs where individuals are more “hidden in plain sight” within restaurants, home health care facilities, and the hospitality industry. While such forced labor and abuse has existed for decades, in 2023, we witnessed an explosion of reports highlighting how pervasive these exploitative practices are, and how quickly this problem is growing even among children. This problem can be seen reflected regionally with the recent investigation uncovering child labor abuse and forced labor within poultry processing plants in Southern California.
   
   “In 2021, the Little Hoover Commission highlighted that California has focused almost exclusively on combating sex trafficking and needs to do more to prevent labor trafficking in our state. Further they concluded based on statewide stakeholder input that California’s efforts to prevent labor trafficking are fragmented and a major issue is a lack of a directive to current state agencies to lead efforts to prevent labor trafficking and coordinate with other agencies such as California Department of Justice (DOJ) and Department of Fair Employment and Housing (DFEH) to stop trafficking before it starts. In a recent report released in February 2024, the Commission explicitly concluded that “by empowering the Department of Industrial Relations to take a lead role in investigating allegations of labor trafficking, the state could help gather the information necessary for prosecutions and begin to take steps to proactively target worker outreach efforts in appropriate industries or geographic hotspots.”
   
   “AB 1888 (Arambula) - the California Labor Trafficking Prevention Act - seeks to protect California’s most vulnerable workers from being taken advantage of by unscrupulous individuals and businesses who force them to work under duress with little to no pay. This bill will provide the DIR with statutory authority to investigate and coordinate work statewide by creating a specialized Labor Trafficking Unit and collect data across state agencies. This is an important first step in properly preventing, investigating, and coordinating state efforts to put a stop to the abuses of workers in our staete, and decades overdue.” (citations omitted)
   
6. Related Legislation: AB 1832 (B. Rubio), would establish the Labor Trafficking Task Force (LTTF) within CRD and requires the LTTF to coordinate with the LETF, DOJ, and DLSE. AB 1832 will be heard in this committee today.
   
7. Prior Legislation:
   
   1. AB 235 (B. Rubio), of the 2023-2024 Legislative Session, is substantially similar to AB 1832 and would have established the LTU within the CRD and requires the LTU to coordinate with LETF, DOJ, and DLSE. AB 235 was held on the Appropriations suspense calendar, and returned to the desk without further action.
      
   2. AB 380 (Arambula), of the 2023-2024 Legislative Session, is substantially similar to AB 1888, and would have established the LTU within the DLSE and requires the LTU to coordinate with LETF, the DOJ, and CRD. AB 380 was held on the Senate suspense calendar.
      
   3. AB 1149 (Grayson), of the 2023-2024 Legislative Session, would have established, until July 1, 2026, the California Multidisciplinary Alliance to Stop Trafficking Act (California MAST) to review collaborative models between governmental and nongovernmental organizations for protecting victims and survivors of trafficking, among other related duties. AB 1149 was held on the Appropriations suspense calendar, and returned to the desk without further action.
      
   4. AB 1820 (Arambula), of the 2021-2022 Legislative Session, was substantially similar to AB 380 (Arambula) and AB 1888 (Arambula) as previously mentioned. AB 1820 was vetoed by the Governor.
      
   5. AB 2553 (Grayson), of 2021-2022 Legislative Session, would have established the California Multidisciplinary Alliance to Stop Trafficking Act (California MAST) to examine collaborative models between governmental and nongovernmental organizations for protecting victims and survivors of trafficking. AB 2553 was held on the Senate Committee on Appropriations suspense file.
      
   6. AB 1684 (Stone), Chapter 63, Statutes of 2016, authorized the DEFH to receive, investigate, mediate, and prosecute civil complaints on behalf of a victim of human trafficking.
      

REGISTERED SUPPORT / OPPOSITION:

Support

California Federation of Teachers Afl-cio
California Labor Federation, Afl-cio
California Nurses Association
California State Association of Electrical Workers
California State Pipe Trades Council
Community Legal Services in East Palo Alto
Consumer Attorneys of California
Little Hoover Commission
Loyola Law School, the Sunita Jain Anti-trafficking Initiative
Thai Community Development Center
Western States Council Sheet Metal, Air, Rail and Transportation

Opposition

None

Analysis Prepared by:

Date of Hearing: March 13, 2024

ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT

Liz Ortega, Chair

ABPCA Bill Id:AB 1888 (

Author:Arambula) – As Amended Ver:March 4, 2024

SUBJECT: Division of Labor Standards Enforcement: Labor Trafficking Unit

SUMMARY: Establishes the Labor Trafficking Unit (LTU) within the Division of Labor Standards Enforcement (DLSE) to receive, investigate, and process complaints alleging labor trafficking and to coordinate these efforts with other state entities.

Specifically, this bill:

1. Defines “labor trafficking” to mean depriving or violating the personal liberty of another person with the intent to obtain forced labor or services.
2. Establishes the LTU within the DLSE to coordinate with the Criminal Investigation Unit, the Labor Enforcement Task Force (LETF), the Department of Justice (DOJ), including the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, the Employment Development Department, including the Joint Enforcement Strike Force on the Underground Economy (JESF), and the Civil Rights Department (CRD) to combat labor trafficking.
3. Requires the LTU to receive, investigate, and process complaints alleging labor trafficking and take steps to prevent labor trafficking.
4. Authorizes the DLSE, in addition to any other remedies available, to impose a civil penalty for each violation of this section in an amount not to exceed the fine amounts specified for human trafficking in the Penal Code. These civil penalties shall be awarded to the person harmed. The DLSE may recover costs and attorney’s fees.
5. Authorizes the LTU, notwithstanding the civil remedies provided in 4) to refer labor trafficking violations to the CRD.
6. Requires the LTU to coordinate with or refer criminal labor trafficking violations to the DOJ for potential criminal prosecutions.
7. Authorizes the LTU to coordinate with state and local law enforcement agencies, tribal law enforcement agencies, and district attorneys’ offices when investigating criminal actions relating to labor trafficking.
8. Requires the LTU to follow protocols to ensure that survivors are not further victimized by the process of reporting, investigating, or prosecuting labor traffickers and are informed of the services available to them. The LTU may coordinate with state, tribal, and local entities to connect survivors to available services.
9. Requires the Division of Occupational Safety and Health, members of the Tax Recovery in the Underground Economy Criminal Enforcement Program investigative teams, members of the JESF, and the CRD to collaborate with the LTU to develop policies, procedures, and protocols to track, record, and report potential labor trafficking activity.
10. Requires the entities in 9) above to train their investigators who are most likely to encounter labor trafficking to recognize warning signs of potential labor trafficking and to report to the LTU when, upon investigating businesses under their purview, there is evidence of labor trafficking. The LTU shall develop a tracking and reporting system to collect these reports. These reports shall be aggregated and analyzed to identify potential complaints to be further investigated or referred for investigation.
11. Requires, on or before January 1, 2026, and on or before January 1 every year thereafter, the LTU to submit a report to the Legislature that includes the following information pertaining to the prior calendar year:
    1. The number and type of complaints or referrals received, including the source of any referrals.
    2. The number and type of complaints or referrals investigated, including, but not limited to, population data about those accused of labor trafficking.
    3. The number and type of reports pursuant to 10) above that were successfully converted into complaints.
    4. The number of complaints referred to the CRD.
    5. The number of complaints referred to the DOJ.
    6. The number of referrals and coordinations with state, local and tribal law enforcement agencies and district attorneys’ offices.
    7. The outcome of each complaint, regardless of the agency where the complaint was resolved.
    8. Population data about confirmed labor trafficking victims correlated with the industry where the trafficking occurred.
    9. Information about labor trafficking victims who were referred for services correlated with the name of the agencies where the labor trafficking victim was referred for services. 
    10. A discussion of the major challenges to addressing labor trafficking complaints, the ongoing efforts to address those challenges, and options to improve the state’s claim process, including preventing further victimization of survivors.
12. Provides that the requirement to submit an annual report sunsets on January 1, 2036.

EXISTING LAW:

1. Establishes DLSE under the direction of the Labor Commissioner (LC) and authorizes the LC to investigate employee complaints and enforce labor laws, as specified.
   (Lab. Code, § 79 et seq.)
2. Establishes LETF under the direction of DIR to combat the underground economy in order to ensure safe working conditions and proper payment of wages for workers; to create an environment in which legitimate businesses can thrive; and to support the collection of all California taxes, fees, and penalties due from employers. (Budget Act of 2012)
   
3. Establishes the JESF to combat the underground economy by combining resources and sharing information among the state agencies that enforce tax, labor, and licensing laws. (Unemp. Ins. Code, § 329.)
4. Requires the DOJ to maintain, at a minimum, two multiagency Tax Recovery in the Underground Economy (TRUE) Criminal Enforcement Program investigative teams to combat underground economic activities through a multiagency collaboration and recover state revenue lost to the underground economy. (Gov. Code, § 15926.)
5. Authorizes CRD to receive, investigate, conciliate, mediate, and prosecute complaints alleging, and to bring civil actions for a violation of the crime of human trafficking, as specified. (Gov. Code, § 12930 (f)(3).)
6. Provides that a victim of human trafficking may bring a civil action for damages, compensatory damages, punitive damages, injunctive relief, and combination thereof, or any other appropriate relief. (Civ. Code, § 52.5.)
7. Provides that any person who deprives or violates the personal liberty of another with the intent to effect or maintain specified felony prostitution-related offenses or obtain forced labor or services is guilty of human trafficking. (Pen. Code, § 236.1.)

FISCAL EFFECT: Unknown

COMMENTS: Note: This bill is double-referred to the Assembly Public Safety Committee upon passage out of this Committee.

While data on the extent of labor trafficking in California is sparse and likely due to a lack of centralized case reporting, we know that more than 9,000 cases of human trafficking in the state have been reported since 2007.^[1] In terms of demographics, “labor trafficking victims may be men or women, young or old, native-born citizens or immigrants. However, a few commonalities are apparent. Most victims are in the prime working years of 18 to 40. Many are immigrants who have entered the country legally to perform some kind of temporary work and become unauthorized due to their trafficking.”^[2]

Since 2020, the Little Hoover Commission has been studying the state’s efforts to combat labor trafficking, issuing three reports and recently holding a public hearing in 2023. In its 2020 report, the Commission identified a number of challenges in California’s current anti-trafficking strategy. For example, the lack of a coordinated effort to address labor trafficking is called out as a significant challenge. The Commission writes, “We have no permanent entity to coordinate the state’s overall fight against human trafficking or to develop information-sharing protocols between state organizations and their local and federal partners. Twice since 2007, the Department of Justice led a temporary statewide coordinating body to investigate and propose cross-agency strategies to address human trafficking. But these bodies disbanded after issuing recommendations.”^[3]

According to the author, “Trafficked employees face threats from their employers relating to documentation status, harm to their families, and loss of wages that prevent them from trying to escape and seek help. Traffickers often target vulnerable populations such as foster children, homeless and runaway youth, foreign nationals, and individuals living in poverty. Unfortunately, the current fragmented enforcement structure means that no single entity holds the mandate to specifically investigate and enforce labor trafficking laws. By establishing a dedicated labor trafficking unit within the Department of Industrial Relations (DIR), a department with expertise in labor rights and laws, the state can take the necessary steps to stop the abuses of workers.”

The author further states that, “Exploitation occurs in many industries. Employees live and work in substandard conditions, while also experiencing unfair wages and wage theft. California has the highest rate of human trafficking cases. The transportation of goods and forced human labor places the state at a critical risk. This bill promotes equity by implementing more effective investigations of labor trafficking and prosecution. It maximizes benefits for underserved communities by supporting victims of labor trafficking through legal action and resources to ensure justice.”

Committee Comments

Committee staff recommends the author consider adding to proposed Labor Code § 106.5(g)(1) language authorizing these entities to also collaborate with the unit to develop policies, procedures, and protocols to appropriately interface with survivors of labor trafficking. This would align with the requirement in Labor Code §106.5(f) that the unit “follow protocols to ensure that survivors are not further victimized by the process of reporting, investigating, or prosecuting labor traffickers…”

Arguments in Support

The Sunita Jain Anti-Trafficking Initiative, sponsor of the bill, states, “In 2021, the Little Hoover Commission highlighted that California has focused almost exclusively on combating sex trafficking and needs to do more to prevent labor trafficking in our state. Further they concluded based on statewide stakeholder input that California’s efforts to prevent labor trafficking are fragmented and a major issue is a lack of a directive to current state agencies to lead efforts to prevent labor trafficking and coordinate with other agencies such as California Department of Justice (DOJ) and Department of Fair Employment and Housing (DFEH) to stop trafficking before it starts. In a recent report released in February 2024, the Commission explicitly concluded that “by empowering the Department of Industrial Relations to take a lead role in investigating allegations of labor trafficking, the state could help gather the information necessary for prosecutions and begin to take steps to proactively target worker outreach efforts in appropriate industries or geographic hotspots.”

AB 1888 (Arambula) - the California Labor Trafficking Prevention Act - seeks to protect California’s most vulnerable workers from being taken advantage of by unscrupulous individuals and businesses who force them to work under duress with little to no pay. This bill will provide

the DIR with statutory authority to investigate and coordinate work statewide by creating a specialized Labor Trafficking Unit and collect data across state agencies. This is an important first step in properly preventing, investigating, and coordinating state efforts to put a stop to the abuses of workers in our state, and decades overdue.”

Arguments in Opposition

None on file.

Related and Prior Legislation

AB 1832 (Rubio) of 2024 would establish a Labor Trafficking Task Force within the Civil Rights Department and require it to, among other things, take steps to prevent labor trafficking, coordinate with the Labor Enforcement Task Force, the Department of Justice, and the Division of Labor Standards Enforcement within the Department of Industrial Relations to combat labor trafficking, and refer complaints alleging labor trafficking to the department or other agencies, as appropriate, for potential investigation, civil action, or criminal prosecution. This bill is pending a hearing in this committee.

AB 235 (Rubio) of 2023 would have established the Labor Trafficking Unit (LTU) within the Civil Rights Department and would require the LTU to coordinate with the Labor Enforcement Task Force, the Department of Justice, and the DLSE to take steps to prevent labor trafficking, receive and investigate complaints alleging labor trafficking, and report specified data. This bill was held in the Assembly Appropriations Committee.

AB 380 (Arambula) of 2023 was substantially similar to AB 235 (Rubio) and was held in the Senate Appropriations Committee.

AB 1149 (Grayson) of 2023 would establish, until July 1, 2026, the California Multidisciplinary Alliance to Stop Trafficking Act (California MAST) to review collaborative models between governmental and nongovernmental organizations for protecting victims and survivors of trafficking, among other related duties. This bill died in the Assembly Appropriations Committee.

AB 1820 (Arambula) of 2022 would have established the LTU within DLSE to coordinate with LETF, DOJ, and CRD to investigate and prosecute complaints alleging labor trafficking, and report specified data. This bill was vetoed by Governor Newsom.

AB 2553 (Grayson) of 2022 would have established the California Multidisciplinary Alliance to Stop Trafficking Act (California MAST) to examine collaborative models between governmental and nongovernmental organizations for protecting victims and survivors of trafficking. This bill was held under submission in the Senate Appropriations Committee.

AB 1296 (Gonzalez) Chapter 626, Statutes of 2019 established the Tax Recovery in the Underground Economy Criminal Enforcement Program (TRUE) in the Department of Justice (DOJ) to combat underground economic activities through a multiagency collaboration.

AB 2034 (Kalra) Chapter 812, Statutes of 2018 required businesses and establishments that operate in transportation or handle high volumes of traffic to train their employees in recognizing the signs of human trafficking and reporting suspected human trafficking.

SB 970 (Atkins) Chapter 842, Statutes of 2018 required that hotels and motels provide human trafficking education to employees who interact with the public.

AB 1684 (Stone) Chapter 63, Statutes of 2016 authorized the Department of Fair Employment and Housing to receive, investigate, conciliate, mediate, and prosecute complaints alleging, and bring civil actions for, a victim of human trafficking.

REGISTERED SUPPORT / OPPOSITION:

Support

Loyola Law School, the Sunita Jain Anti-Trafficking Initiative (Sponsor)
California Labor Federation
California State Association of Electrical Workers
California State Pipe Trades Council
Consumer Attorneys of California
Western States Council Sheet Metal, Air, Rail and Transportation

Opposition

None on file.

Analysis Prepared by: Megan Lane / L. & E. /

1. Polaris. National Human Trafficking Hotline and BeFree Textline. California Statistics. ↑

2. Little Hoover Commission, “Human Trafficking: Coordinating a California Response.” Report #250. June 2020. P.5. ↑

3. Ibid at 9. ↑