[House Report 106-487]
[From the U.S. Government Publishing Office]





                                                                       
106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                            106-487, Part II

=======================================================================




 
               TRAFFICKING VICTIMS PROTECTION ACT OF 2000

                                _______
                                

                 April 13, 2000.--Ordered to be printed

                                _______
                                

Mr. Smith of Texas, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 3244]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 3244) to combat trafficking of persons, especially 
into the sex trade, slavery, and slavery-like conditions, in 
the United States and countries around the world through 
prevention, through prosecution and enforcement against 
traffickers, and through protection and assistance to victims 
of trafficking, having considered the same, reports favorably 
thereon with an amendment and recommends that the bill as 
amended do pass.

                           TABLE OF CONTENTS

                                                                  

                                                                 Page
The Amendment..............................................           2
Purpose and Summary........................................          16
Background and Need for the Legislation....................          17
Hearings...................................................          19
Committee Consideration....................................          19
Votes of the Committee.....................................          19
Committee Oversight Findings...............................          20
Committee on Government Reform Findings....................          21
New Budget Authority and Tax Expenditures..................          21
Congressional Budget Office Cost Estimate..................          21
Constitutional Authority Statement.........................          27
Section-by-Section Analysis and Discussion.................          27
Changes in Existing Law Made by the Bill, as Reported......          28
Minority Views.............................................          40

    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Trafficking 
Victims Protection Act of 2000''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes and findings.
Sec. 3. Definitions.
Sec. 4. Annual Country Reports on Human Rights Practices.
Sec. 5. Interagency task force to monitor and combat trafficking.
Sec. 6. Prevention of trafficking.
Sec. 7. Protection and assistance for victims of trafficking.
Sec. 8. Minimum standards for the elimination of trafficking.
Sec. 9. Assistance to foreign countries to meet minimum standards.
Sec. 10. Actions against governments failing to meet minimum standards.
Sec. 11. Actions against significant traffickers.
Sec. 12. Strengthening protection and punishment of traffickers.
Sec. 13. Authorization of appropriations.

SEC. 2. PURPOSES AND FINDINGS.

    (a) Purposes.--The purposes of this Act are to combat trafficking 
in persons, a contemporary manifestation of slavery whose victims are 
predominantly women and children, to ensure just and effective 
punishment of traffickers, and to protect their victims.
    (b) Findings.--The Congress finds that:
            (1) Millions of people every year, primarily women or 
        children, are trafficked within or across international 
        borders. Approximately 50,000 women and children are trafficked 
        into the United States each year.
            (2) Many of these persons, of whom the overwhelming 
        majority are women and children, are trafficked into the 
        international sex trade, often by means of force, fraud, or 
        coercion. The sex industry has rapidly expanded over the past 
        several decades. It involves sexual exploitation of persons, 
        predominantly women and girls, within activities related to 
        prostitution, pornography, sex tourism, and other commercial 
        sexual services. The rapid expansion of the sex industry and 
        the low status of women in many parts of the world have 
        contributed to a burgeoning of the trafficking industry, of 
        which sex trafficking by force, fraud, and coercion is a major 
        component.
            (3) Trafficking in persons is not limited to sex 
        trafficking, but often involves forced labor and other 
        violations of internationally recognized human rights. The 
        worldwide trafficking of persons is a growing transnational 
        crime, migration, economics, labor, public health, and human 
        rights problem that is significant on nearly every continent.
            (4) Traffickers primarily target women and girls, who are 
        disproportionately affected by poverty, lack of access to 
        education, chronic unemployment, discrimination, and lack of 
        viable economic opportunities in countries of origin. 
        Traffickers lure women and girls into their networks through 
        false promises of good working conditions at relatively high 
        pay as nannies, maids, dancers, factory workers, restaurant 
        workers, sales clerks, or models. Traffickers also buy girls 
        from poor families and sell them into prostitution or into 
        various types of forced or bonded labor.
            (5) Traffickers often facilitate victims' movement from 
        their home communities to unfamiliar destinations, away from 
        family and friends, religious institutions, and other sources 
        of protection and support, making the victims more vulnerable.
            (6) Victims are often forced to engage in sex acts or to 
        perform labor or other services through physical violence, 
        including rape and other forms of sexual abuse, torture, 
        starvation, and imprisonment, through threats of violence, and 
        through other forms of psychological abuse and coercion.
            (7) Trafficking is perpetrated increasingly by organized 
        and sophisticated criminal enterprises. Trafficking in persons 
        is the fastest growing source of profits for organized criminal 
        enterprises worldwide. Profits from the trafficking industry 
        contribute to the expansion of organized criminal activity in 
        the United States and around the world. Trafficking often is 
        aided by official corruption in countries of origin, transit, 
        and destination, thereby threatening the rule of law.
            (8) Traffickers often make representations to their victims 
        that physical harm may occur to them or to others should the 
        victim escape or attempt to escape. Such representations can 
        have the same coercive effects on victims as specific threats 
        to inflict such harm.
            (9) Sex trafficking, when it involves the involuntary 
        participation of another person in sex acts by means of fraud, 
        force, or coercion, includes all the elements of the crime of 
        forcible rape, which is defined by all legal systems as among 
        the most serious of all crimes.
            (10) Sex trafficking also involves frequent and serious 
        violations of other laws, including labor and immigration codes 
        and laws against kidnapping, slavery, false imprisonment, 
        assault, battery, pandering, fraud, and extortion.
            (11) Women and children trafficked into the sex industry 
        are exposed to deadly diseases, including HIV and AIDS. 
        Trafficking victims are sometimes worked or physically 
        brutalized to death.
            (12) Trafficking in persons substantially affects 
        interstate and foreign commerce. The United States must take 
        action to eradicate the substantial burdens on commerce that 
        result from trafficking in persons and to prevent the channels 
        of commerce from being used for immoral and injurious purposes.
            (13) Trafficking of persons in all its forms is an evil 
        that calls for concerted and vigorous action by countries of 
        origin, transit countries, receiving countries, and 
        international organizations.
            (14) Existing legislation and law enforcement in the United 
        States and in other nations around the world have proved 
        inadequate to deter trafficking and to bring traffickers to 
        justice, principally because such legislation and enforcement 
        do not reflect the gravity of the offenses involved. No 
        comprehensive law exists in the United States that penalizes 
        the range of offenses involved in the trafficking scheme. 
        Instead, even the most brutal instances of forcible sex 
        trafficking are often punished under laws that also apply to 
        far less serious offenses such as consensual sexual activity 
        and illegal immigration, so that traffickers typically escape 
        severe punishment.
            (15) In the United States, the seriousness of the crime of 
        trafficking in persons is not reflected in current sentencing 
        guidelines for component crimes of the trafficking scheme, 
        which results in weak penalties for convicted traffickers. 
        Adequate services and facilities do not exist to meet the 
        health care, housing, education, and legal assistance needs for 
        the safe reintegration of domestic trafficking victims.
            (16) In some countries, enforcement against traffickers is 
        also hindered by official indifference, by corruption, and 
        sometimes even by active official participation in trafficking.
            (17) Because existing laws and law enforcement procedures 
        often fail to make clear distinctions between victims of 
        trafficking and persons who have knowingly and willfully 
        violated laws, and because victims often do not have legal 
        immigration status in the countries into which they are 
        trafficked, the victims are often punished more harshly than 
        the traffickers themselves.
            (18) Because victims of trafficking are frequently 
        unfamiliar with the laws, cultures, and languages of the 
        countries into which they have been trafficked, and because 
        they are often subjected to coercion and intimidation including 
        physical detention, debt bondage, fear of retribution, and fear 
        of forcible removal to countries in which they will face 
        retribution or other hardship, these victims often find it 
        difficult or impossible to report the crimes committed against 
        them or to assist in the investigation and prosecution of such 
        crimes.
            (19) The United States and the international community are 
        in agreement that trafficking in persons often involves grave 
        violations of human rights and is a matter of pressing 
        international concern. The Universal Declaration of Human 
        Rights; the Supplementary Convention on the Abolition of 
        Slavery, the Slave Trade, and Institutions and Practices 
        Similar to Slavery; the International Covenant on Civil and 
        Political Rights; the Convention on the Elimination of All 
        Forms of Discrimination Against Women; the Convention Against 
        Torture and Other Cruel, Inhuman or Degrading Treatment or 
        Punishment, and other relevant instruments condemn slavery and 
        involuntary servitude, violence against women, and other 
        components of the trafficking scheme.
            (20) The Universal Declaration of Human Rights recognizes 
        the right to be free from slavery and involuntary servitude, 
        arbitrary detention, degrading or inhuman treatment, and 
        arbitrary interference with privacy or the family, as well as 
        the right to protection by law against these abuses.
            (21) The United Nations General Assembly has passed three 
        resolutions during the last three years (50/167, 51/66, and 52/
        98) recognizing that the international traffic in women and 
        girls, particularly for purposes of forced prostitution, is a 
        matter of pressing international concern involving numerous 
        violations of fundamental human rights. The resolutions call 
        upon governments of receiving countries as well as countries of 
        origin to strengthen their laws against such practices, to 
        intensify their efforts to enforce such laws, and to ensure the 
        full protection, treatment, and rehabilitation of women and 
        children who are victims of trafficking.
            (22) The Final Report of the Word Congress against Sexual 
        Exploitation of Children, held in Stockholm, Sweden in August 
        1996, recognized that international sex trafficking is a 
        principal cause of increased exploitation and degradation of 
        children.
            (23) The Fourth World Conference of Women (Bejing 
        Conference) called on all governments to take measures, 
        including legislative measures, to provide better protection of 
        the rights of women and girls who are victims of trafficking, 
        to address the root factors that put women and girls at risk to 
        traffickers, and to take measures to dismantle the national, 
        regional, and international networks on trafficking.
            (24) In the 1991 Moscow Document of the Organization for 
        Security and Co-operation in Europe, participating states 
        including the United States agreed to ``seek to eliminate all 
        forms of violence against women, and all forms of traffic in 
        women and exploitation of prostitution of women including by 
        ensuring adequate legal prohibitions against such acts and 
        other appropriate measures.''
            (25) Numerous treaties to which the United States is a 
        party address government obligations to combat trafficking, 
        including such treaties as the 1956 Supplementary Convention on 
        the Abolition of Slavery, the Slave Trade and Institutions and 
        Practices Similar to Slavery, which calls for the complete 
        abolition of debt bondage and servile forms of marriage, and 
        the 1957 Abolition of Forced Labor Convention, which undertakes 
        to suppress and requires signatories not to make use of any 
        forced or compulsory labor.
            (26) Trafficking in persons is a transnational crime with 
        national implications. In order to deter international 
        trafficking and to bring its perpetrators to justice, nations 
        including the United States must recognize that trafficking is 
        a serious offense and must act on this recognition by 
        prescribing appropriate punishment, by giving the highest 
        priority to investigation and prosecution of trafficking 
        offenses, and by protecting rather than punishing the victims 
        of such offenses. The United States must work bilaterally and 
        multilaterally to abolish the trafficking industry and take 
        steps to promote and facilitate cooperation among countries 
        linked together by international trafficking routes. The United 
        States must also urge the international community to take 
        strong action in multilateral fora to engage recalcitrant 
        countries in serious and sustained efforts to eliminate 
        trafficking and protect trafficking victims.

SEC. 3. DEFINITIONS.

    For the purposes of this Act:
            (1) The term ``sex trafficking'' means the purchase, sale, 
        recruitment, harboring, transportation, transfer or receipt of 
        a person for the purpose of a commercial sex act.
            (2) The term ``severe forms of trafficking in persons'' 
        means--
                    (A) sex trafficking in which either a commercial 
                sex act or any act or event contributing to such act is 
                effected or induced by force, coercion, fraud, or 
                deception, or in which the person induced to perform 
                such act has not attained the age of 18 years; and
                    (B) the purchase, sale, recruitment, harboring, 
                transportation, transfer or receipt of a person for the 
                purpose of subjection to involuntary servitude, 
                peonage, or slavery or slavery-like practices which is 
                effected by force, coercion, fraud, or deception.
            (3) The term ``slavery-like practices'' means inducement of 
        a person to perform labor or other services by force, by 
        coercion, or by any scheme, plan, or pattern to cause the 
        person to believe that failure to perform the work will result 
        in the infliction of serious harm, debt bondage in which labor 
        or services are pledged for debt on terms calculated never to 
        allow full payment of the debt or otherwise amounting to 
        indentured servitude for life or for an indefinite period, or 
        subjection of the person to conditions so harsh or degrading as 
        to provide a clear indication that the person has been 
        subjected to them by force, fraud, or coercion.
            (4) The term ``coercion'' means the use of force, violence, 
        physical restraint, or acts or circumstances not necessarily 
        including physical force but calculated to have the same 
        effect, such as the credible threat of force or of the 
        infliction of serious harm.
            (5) The term ``act of a severe form of trafficking in 
        persons'' means any act at any point in the process of a severe 
        form of trafficking in persons, including any act of 
        recruitment, harboring, transport, transfer, purchase, sale or 
        receipt of a victim of such trafficking, or any act of 
        operation, management, or ownership of an enterprise in which a 
        victim of such trafficking engages in a commercial sex act, is 
        subjected to slavery or a slavery-like practice, or is expected 
        or induced to engage in such acts or be subjected to such 
        condition or practice, or sharing in the profits of the process 
        of a severe form of trafficking in persons or any part thereof.
            (6) The terms ``victim of sex trafficking'' and ``victim of 
        a severe form of trafficking in persons'' mean a person 
        subjected to an act or practice described in paragraphs (1) and 
        (2) respectively.
            (7) The term ``commercial sex act'' means a sex act on 
        account of which anything of value is given to or received by 
        any person.
            (8) The term ``minimum standards for the elimination of 
        trafficking'' means the standards set forth in section 8.
            (9) The term ``appropriate congressional committees'' means 
        the Committee on Foreign Relations of the United States Senate 
        and the Committee on International Relations of the United 
        States House of Representatives.
            (10) The term ``nonhumanitarian foreign assistance'' 
        means--
                    (A) any assistance under the Foreign Assistance Act 
                of 1961 (including programs under title IV of chapter 2 
                of part I of that Act, relating to the Overseas Private 
                Investment Corporation), other than--
                            (i) assistance under chapter 8 of part I of 
                        that Act;
                            (ii) any other narcotics-related assistance 
                        under part I of that Act or under chapter 4 or 
                        5 of part II of that Act, but any such 
                        assistance provided under this clause shall be 
                        subject to the prior notification procedures 
                        applicable to reprogrammings pursuant to 
                        section 634A of that Act;
                            (iii) disaster relief assistance, including 
                        any assistance under chapter 9 of part I of 
                        that Act;
                            (iv) antiterrorism assistance under chapter 
                        8 of part II of that Act;
                            (v) assistance which involves the provision 
                        of food (including monetization of food) or 
                        medicine;
                            (vi) assistance for refugees; and
                            (vii) humanitarian and other development 
                        assistance in support of programs of 
                        nongovernmental organizations under chapters 1 
                        and 10 of that Act;
                    (B) sales, or financing on any terms, under the 
                Arms Export Control Act, other than sales or financing 
                provided for narcotics-related purposes following 
                notification in accordance with the prior notification 
                procedures applicable to reprogrammings pursuant to 
                section 634A of the Foreign Assistance Act of 1961; and
                    (C) financing under the Export-Import Bank Act of 
                1945.

SEC. 4. ANNUAL COUNTRY REPORTS ON HUMAN RIGHTS PRACTICES.

    The Secretary of State, with the assistance of the Assistant 
Secretary of Democracy, Human Rights and Labor, shall, as part of the 
annual Country Reports on Human Rights Practices, include information 
to address the status of trafficking in persons, including--
            (1) a list of foreign countries that are countries of 
        origin, transit, or destination for a significant number of 
        victims of severe forms of trafficking;
            (2) a description of the nature and extent of severe forms 
        of trafficking in persons in each country;
            (3) an assessment of the efforts by the governments 
        described in paragraph (1) to combat severe forms of 
        trafficking. Such an assessment shall address--
                    (A) whether any governmental authorities tolerate 
                or are involved in such trafficking;
                    (B) which governmental authorities are involved in 
                activities to combat such trafficking;
                    (C) what steps the government has taken against its 
                officials who participate in, facilitate, or condone 
                such trafficking;
                    (D) what steps the government has taken to 
                investigate and prosecute officials who participate in 
                or facilitate such trafficking;
                    (E) what steps the government has taken to prohibit 
                other individuals from participating in such 
                trafficking, including the investigation, prosecution, 
                and conviction of individuals involved in severe forms 
                of trafficking in persons, the criminal and civil 
                penalties for such trafficking, and the efficacy of 
                those penalties in eliminating or reducing such 
                trafficking;
                    (F) what steps the government has taken to assist 
                victims of such trafficking, including efforts to 
                prevent victims from being further victimized by 
                traffickers, government officials, or others, grants of 
                stays of deportation, and provision of humanitarian 
                relief, including provision of mental and physical 
                health care and shelter;
                    (G) whether the government--
                            (i) is cooperating with governments of 
                        other countries to extradite traffickers when 
                        requested;
                            (ii) is assisting in international 
                        investigations of transnational trafficking 
                        networks and in other co-operative efforts to 
                        combat trafficking;
                            (iii) refrains from prosecuting victims of 
                        severe forms of trafficking and from other 
                        discriminatory treatment of such victims due to 
                        such victims having been trafficked, or due to 
                        their having left or entered the country 
                        illegally; and
                            (iv) recognizes the rights of victims and 
                        ensures their access to justice.
            (4) Information described in paragraph (2) and, where 
        appropriate, in paragraph (3) shall be included in the annual 
        Country Reports on Human Rights Practices on a country-by-
        country basis.
            (5) In addition to the information described in this 
        section, the annual Country Reports on Human Rights Practices 
        may contain such other information relating to trafficking in 
        persons as the Secretary determines to be appropriate.

SEC. 5. INTERAGENCY TASK FORCE TO MONITOR AND COMBAT TRAFFICKING.

    (a) Establishment.--The President shall establish an Interagency 
Task Force to Monitor and Combat Trafficking (in this section referred 
to as the ``Task Force'').
    (b) Appointment.--The President shall appoint the members of the 
Task Force, which shall include the Secretary of State, the Director of 
the Agency for International Development, the Attorney General, the 
Secretary of Labor, the Secretary of Health and Human Services, the 
Director of the Central Intelligence Agency, and such other officials 
as may be designated by the President.
    (c) Chairman.--The Task Force shall be chaired by the Secretary of 
State.
    (d) Support for the Task Force.--The Secretary of State is 
authorized to establish within the Department of State an Office to 
Monitor and Combat Trafficking, which shall provide assistance to the 
Task Force. Any such Office shall be administered by a Director. The 
Director shall have the primary responsibility for assisting the 
Secretary of State in carrying out the purposes of this Act and may 
have additional responsibilities as determined by the Secretary. The 
Director shall consult with domestic, international nongovernmental and 
intergovernmental organizations, and with trafficking victims or other 
affected persons. The Director shall have the authority to take 
evidence in public hearings or by other means. The Office is authorized 
to retain staff members from agencies represented on the Task Force.
    (e) Activities of the Task Force.--In consultation with 
nongovernmental organizations, the Task Force shall carry out the 
following activities:
            (1) Coordinate the implementation of this Act.
            (2) Measure and evaluate progress of the United States and 
        countries around the world in the areas of trafficking 
        prevention, protection and assistance to victims of 
        trafficking, and prosecution and enforcement against 
        traffickers, including the role of public corruption in 
        facilitating trafficking.
            (3) Expand interagency procedures to collect and organize 
        data, including significant research and resource information 
        on domestic and international trafficking. Any data collection 
        procedures established under this subsection shall respect the 
        confidentiality of victims of trafficking.
            (4) Engage in efforts to facilitate cooperation among 
        countries of origin, transit, and destination. Such efforts 
        shall aim to strengthen local and regional capacities to 
        prevent trafficking, prosecute traffickers and assist 
        trafficking victims, and shall include initiatives to enhance 
        cooperative efforts between destination countries and countries 
        of origin and assist in the appropriate reintegration of 
        stateless victims of trafficking.
            (5) Examine the role of the international ``sex tourism'' 
        industry in the trafficking of women and children and in the 
        sexual exploitation of women and children around the world and 
        make recommendations on appropriate measures to combat this 
        industry.

SEC. 6. PREVENTION OF TRAFFICKING.

    (a) Economic Alternatives To Prevent and Deter Trafficking.--The 
President, acting through the Administrator of the United States Agency 
for International Development and the heads of other appropriate 
agencies, shall establish and carry out initiatives to enhance economic 
opportunity for potential victims of trafficking as a method to deter 
trafficking. Such initiatives may include--
            (1) microcredit lending programs, training in business 
        development, skills training, and job counseling;
            (2) programs to promote women's participation in economic 
        decision making;
            (3) programs to keep children, especially girls, in 
        elementary and secondary schools;
            (4) development of educational curricula regarding the 
        dangers of trafficking; and
            (5) grants to nongovernmental organizations to accelerate 
        and advance the political, economic, social, and educational 
        roles and capacities of women in their countries.
    (b) Public Awareness and Information.--The President, acting 
through the Secretary of Labor, the Secretary of Health and Human 
Services, the Attorney General, and the Secretary of State, shall 
establish and carry out programs to increase public awareness, 
particularly among potential victims of trafficking, of the dangers of 
trafficking and the protections that are available for victims of 
trafficking.
    (c) Consultation Requirement.--The President shall consult with 
appropriate nongovernmental organizations with respect to the 
establishment and conduct of initiatives described in subsection (a).

SEC. 7. PROTECTION AND ASSISTANCE FOR VICTIMS OF TRAFFICKING.

    (a) Assistance for Victims in Other Countries.--
            (1) In general.--The Secretary of State and the 
        Administrator of the United States Agency for International 
        Development, in consultation with appropriate nongovernmental 
        organizations, shall establish and carry out programs and 
        initiatives in foreign countries to assist in the safe 
        integration, reintegration, or resettlement, as appropriate, of 
        victims of trafficking and their children. Such programs and 
        initiatives shall be designed to meet the mental and physical 
        health, housing, legal, and other assistance needs of such 
        victims and their children, as identified by the Inter-Agency 
        Task Force to Monitor and Combat Trafficking established under 
        section 4.
            (2) Additional requirement.--In establishing and conducting 
        programs and initiatives described in paragraph (1), the 
        Secretary of State and the Administrator of the United States 
        Agency for International Development shall take all appropriate 
        steps to enhance cooperative efforts among foreign countries, 
        including countries of origin of victims of trafficking, to 
        assist in the integration, reintegration, or resettlement, as 
        appropriate, of victims of trafficking including stateless 
        victims.
    (b) Victims in the United States.--
            (1) Assistance.--Subject to the availability of 
        appropriations and notwithstanding title IV of the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996, 
        the Attorney General, the Secretary of Health and Human 
        Services, the Secretary of Labor, and the Board of Directors of 
        the Legal Services Corporation shall expand existing services 
        to provide assistance to victims of severe forms of trafficking 
        in persons within the United States, without regard to the 
        immigration status of such victims.
            (2) Benefits.--Subject to the availability of 
        appropriations and notwithstanding any other provision of law, 
        victims of severe forms of trafficking in persons in the United 
        States shall be eligible, without regard to their immigration 
        status, for any benefits that are otherwise available under the 
        Crime Victims Fund, established under the Victims of Crime Act 
        of 1984, including victims' services, compensation, and 
        assistance.
            (3) Grants.--
                    (A) Subject to the availability of appropriations, 
                the Attorney General may make grants to States, 
                territories, and possessions of the United States 
                (including the Commonwealths of Puerto Rico and the 
                Northern Mariana Islands), Indian tribes, units of 
                local government, and nonprofit, nongovernmental 
                victims' service organizations to develop, expand, or 
                strengthen victim service programs for victims of 
                trafficking.
                    (B) To receive a grant under this paragraph, an 
                eligible unit of government or organization shall 
                certify that its laws, policies, and practices, as 
                appropriate, do not punish or deny services to victims 
                of severe forms of trafficking in persons on account of 
                the nature of their employment or services performed in 
                connection with such trafficking.
                    (C) Of amounts made available for grants under this 
                paragraph, there shall be set aside 3 percent for 
                research, evaluation and statistics; 2 percent for 
                training and technical assistance; and 1 percent for 
                management and administration.
                    (D) The Federal share of a grant made under this 
                paragraph may not exceed 75 percent of the total costs 
                of the projects described in the application submitted.
            (4) Civil action.--An individual who is a victim of a 
        violation of section 1589 or section 1589A of title 18, United 
        States Code, regarding trafficking may bring a civil action in 
        United States district court. The court may award actual 
        damages, punitive damages, reasonable attorneys' fees, and 
        other litigation costs reasonably incurred.
    (c) Trafficking Victim Regulations.--Not later than 180 days after 
the date of enactment of this Act, the Attorney General and the 
Secretary of State shall promulgate regulations for law enforcement 
personnel, immigration officials, and Department of State officials to 
implement the following:
            (1) Victims of severe forms of trafficking, while in the 
        custody of the Federal Government and to the extent 
        practicable, shall be housed in appropriate shelter as quickly 
        as possible; receive prompt medical care, food, and other 
        assistance; and be provided protection if a victim's safety is 
        at risk or if there is danger of additional harm by recapture 
        of the victim by a trafficker.
            (2) Victims of severe forms of trafficking shall not be 
        jailed, fined, or otherwise penalized due to having been 
        trafficked, but the authority of the Attorney General under the 
        Immigration and Nationality Act to detain aliens shall not be 
        curtailed by any regulation promulgated to implement this 
        paragraph.
            (3) Victims of severe forms of trafficking shall have 
        access to legal assistance, information about their rights, and 
        translation services.
            (4) Federal law enforcement officials shall act to ensure 
        an alien's continued presence in the United States, if after an 
        assessment, it is determined that such alien is a victim of a 
        severe form of trafficking in persons, or a material witness to 
        such trafficking, in order to effectuate prosecution of those 
        responsible and to further the humanitarian interests of the 
        United States. Such officials, in investigating and prosecuting 
        persons engaging in such trafficking, shall take into 
        consideration the safety and integrity of such victims, but the 
        authority of the Attorney General under the Immigration and 
        Nationality Act to detain aliens shall not be curtailed by any 
        regulation promulgated to implement this paragraph.
            (5) Appropriate personnel of the Department of State and 
        the Department of Justice are trained in identifying victims of 
        severe forms of trafficking and providing for the protection of 
        such victims. Training under this paragraph should include 
        methods for achieving antitrafficking objectives through the 
        nondiscriminatory application of immigration and other related 
        laws.
    (d) Construction.--Nothing in subsection (c) shall be construed as 
creating any private cause of action against the United States or its 
offices or employees.
    (e) Funding.--Funds from asset forfeiture under section 1592 of 
title 18, United States Code, are authorized to be available in equal 
amounts for the purposes of subsections (a) and (b) and shall remain 
available for obligation until expended.
    (f) Protection From Removal for Certain Victims of Trafficking.--
            (1) Nonimmigrant classification for certain victims of 
        trafficking.--Section 101(a)(15) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(15)) is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (R);
                    (B) by striking the period at the end of 
                subparagraph (S) and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(T) subject to section 214(n), an alien, and the children 
        of the alien if accompanying or following to join the alien, 
        who the Attorney General determines--
                    ``(i) is or has been a victim of a severe form of 
                trafficking in persons (as defined in section 3 of the 
                Trafficking Victims Protection Act of 2000);
                    ``(ii) is physically present in the United States 
                or at a port of entry into the United States by reason 
                of having been transported to the United States or the 
                port of entry in connection with such severe form of 
                trafficking in persons;
                    ``(iii)(I) has not attained 15 years of age; or
                    ``(II) was induced to participate in the commercial 
                sex act or condition of involuntary servitude, peonage, 
                or slavery or slavery-like practices that is the basis 
                of the determination under clause (i) by force, 
                coercion, fraud, or deception, did not voluntarily 
                agree to any arrangement including such participation, 
                and has complied with any reasonable request for 
                assistance in the investigation or prosecution of 
                severe forms of trafficking in persons; and
                    ``(iv)(I) has a well-founded fear of retribution 
                involving the infliction of severe harm upon removal 
                from the United States; or
                    ``(II) would suffer extreme hardship in connection 
                with the victimization described in clause (i) upon 
                removal from the United States;
        and, if the Attorney General considers it to be necessary to 
        avoid extreme hardship, the spouse, and sons and daughters (who 
        are not children), of any such alien (and the parents of any 
        such alien, in the case of an alien under 21 years of age) if 
        accompanying or following to join the alien.''.
            (2) Conditions on nonimmigrant status.--Section 214 of the 
        Immigration and Nationality Act (8 U.S.C. 1184) is amended--
            (1) by redesignating the subsection (l) added by section 
        625(a) of the Illegal Immigration Reform and Immigrant 
        Responsibility Act of 1996 (Public Law 104-208; 110 Stat. 3009-
        1820) as subsection (m); and
            (2) by adding at the end the following:
    ``(n)(1) No alien shall be eligible for admission to the United 
States under section 101(a)(15)(T) if there is substantial reason to 
believe that the alien has committed an act of a severe form of 
trafficking in persons (as defined in section 3 of the Trafficking 
Victims Protection Act of 2000).
    ``(2) The total number of aliens who may be issued visas or 
otherwise provided nonimmigrant status during any fiscal year under 
section 101(a)(15)(T) may not exceed 5,000.
    ``(3) The numerical limitation of paragraph (2) shall only apply to 
principal aliens and not to the spouses, sons, daughters, or parents of 
such aliens.
    ``(4) Aliens who are subject to the numerical limitation of 
paragraph (2) shall be issued visas (or otherwise provided nonimmigrant 
status) in the order in which petitions are filed for such visas or 
status.''.
            (3) Waiver of grounds for ineligibility for admission.--
        Section 212(d) of the Immigration and Nationality Act (8 U.S.C. 
        1182(d)) is amended by adding at the end the following:
    ``(13)(A) The Attorney General shall determine whether a ground for 
inadmissibility exists with respect to a nonimmigrant described in 
section 101(a)(15)(T).
    ``(B) In addition to any other waiver that may be available under 
this section, in the case of a nonimmigrant described in section 
101(a)(15)(T), if the Attorney General considers it to be in the 
national interest to do so, the Attorney General, in the Attorney 
General's discretion, may waive the application of--
            ``(i) paragraphs (1) and (4) of subsection (a); and
            ``(ii) any other provision of such subsection (excluding 
        paragraphs (3), (10)(C), and (10(E)) if the activities 
        rendering the alien inadmissible under the provision were 
        caused by, or were incident to, the victimization described in 
        section 101(a)(15)(T)(i).
    ``(C) Nothing in this paragraph shall be regarded as prohibiting 
the Attorney General from instituting removal proceedings against an 
alien admitted as a nonimmigrant under section 101(a)(15)(T) for 
conduct committed after the alien's admission into the United States, 
or for conduct or a condition that was not disclosed to the Attorney 
General prior to the alien's admission as a nonimmigrant under section 
101(a)(15)(T).''.
            (4) Adjustment to permanent resident status.--Section 245 
        of the Immigration and Nationality Act (8 U.S.C. 1255) is 
        amended by adding at the end the following:
    ``(l)(1) If, in the opinion of the Attorney General, a nonimmigrant 
admitted into the United States under section 101(a)(15)(T)--
            ``(A) has been physically present in the United States for 
        a continuous period of at least 3 years since the date of such 
        admission;
            ``(B) has, throughout such period, been a person of good 
        moral character;
            ``(C) has, during such period, complied with any reasonable 
        request for assistance in the investigation or prosecution of 
        severe forms of trafficking in persons; and
            ``(D)(i) has a well-founded fear of retribution involving 
        the infliction of severe harm upon removal from the United 
        States; or
            ``(ii) would suffer extreme hardship in connection with the 
        victimization described in section 101(a)(15)(T)(i) upon 
        removal from the United States;
the Attorney General may adjust the status of the alien (and the 
spouse, parents, married and unmarried sons and daughters of the alien 
if admitted under such section) to that of an alien lawfully admitted 
for permanent residence.
    ``(2) Paragraph (1) shall not apply to an alien admitted under 
section 101(a)(15)(T) who is inadmissible to the United States by 
reason of a ground that has not been waived under section 212, except 
that, if the Attorney General considers it to be in the national 
interest to do so, the Attorney General, in the Attorney General's 
discretion, may waive the application of--
            ``(A) paragraphs (1) and (4) of section 212(a); and
            ``(B) any other provision of such section (excluding 
        paragraphs (3), (10)(C), and (10(E)), if the activities 
        rendering the alien inadmissible under the provision were 
        caused by, or were incident to, the victimization described in 
        section 101(a)(15)(T)(i).
    ``(3) An alien shall be considered to have failed to maintain 
continuous physical presence in the United States for purposes of 
paragraph (1)(A) if the alien has departed from the United States for 
any period in excess of 90 days or for any periods in the aggregate 
exceeding 180 days.
    ``(4)(A) The total number of aliens whose status may be adjusted 
under paragraph (1) during any fiscal year may not exceed 5,000.
    ``(B) The numerical limitation of subparagraph (A) shall only apply 
to principal aliens and not to the spouses, sons, daughters, or parents 
of such aliens.
    ``(C) Aliens who are subject to the numerical limitation of 
subparagraph (A) shall have their status adjusted in the order in which 
applications are filed for such adjustment.
    ``(D) Upon the approval of adjustment of status under paragraph 
(1)--
            ``(i) the Attorney General shall record the alien's lawful 
        admission for permanent residence as of the date of such 
        approval; and
            ``(ii) the Secretary of State shall not be required to 
        reduce the number of immigrant visas authorized to be issued 
        under this Act for any fiscal year.''.

SEC. 8. MINIMUM STANDARDS FOR THE ELIMINATION OF TRAFFICKING.

    (a) Minimum Standards.--Minimum standards for the elimination of 
trafficking for a country that is a country of origin, of transit, or 
of destination for a significant number of victims are as follows:
            (1) The country should prohibit severe forms of trafficking 
        in persons and punish acts of such trafficking.
            (2) For the knowing commission of any act of sex 
        trafficking involving fraud, force, or coercion or in which the 
        victim of sex trafficking is a child incapable of giving 
        meaningful consent, or of trafficking which includes rape or 
        kidnapping or which causes a death, the country should 
        prescribe punishment commensurate with that for the most 
        serious crimes, such as forcible sexual assault.
            (3) For the knowing commission of any act of a severe form 
        of trafficking in persons, the country should prescribe 
        punishment which is sufficiently stringent to deter and which 
        adequately reflects the heinous nature of the offense.
            (4) The country should make serious and sustained efforts 
        to eliminate severe forms of trafficking in persons.
    (b) Criteria.--In determinations under subsection (a)(3) the 
following factors should be considered:
            (1) Whether the country vigorously investigates and 
        prosecutes acts of severe forms of trafficking in persons that 
        take place wholly or partly within the territory of the 
        country.
            (2) Whether the country cooperates with other countries in 
        the investigation and prosecution of severe forms of 
        trafficking in persons.
            (3) Whether the country extradites persons charged with 
        acts of severe forms of trafficking in persons on the same 
        terms and to the same extent as persons charged with other 
        serious crimes.
            (4) Whether the country monitors immigration and emigration 
        patterns for evidence of severe forms of trafficking in persons 
        and whether law enforcement agencies of the country respond to 
        any such evidence in a manner which is consistent with the 
        vigorous investigation and prosecution of acts of such 
        traffick-

        ing, as well as with the protection of victims and the 
        internationally recognized human right to travel.
            (5) Whether the country protects victims of severe forms of 
        trafficking in persons and encourages their assistance in the 
        investigation and prosecution of such trafficking, including 
        provision for legal alternatives to their removal to countries 
        in which they would face retribution or other hardship.
            (6) Whether the country vigorously investigates and 
        prosecutes public officials who participate in or facilitate 
        severe forms of trafficking in persons, and takes all 
        appropriate measures against officials who condone such 
        trafficking.

SEC. 9. ASSISTANCE TO FOREIGN COUNTRIES TO MEET MINIMUM STANDARDS.

    The Secretary of State and the Director of the Agency for 
International Development are authorized to provide assistance to 
foreign countries for programs and activities designed to meet the 
minimum international standards for the elimination of trafficking, 
including drafting of legislation to prohibit and punish acts of 
trafficking, investigation and prosecution of traffickers, and 
facilities, programs, and activities for the protection of victims.

SEC. 10. ACTIONS AGAINST GOVERNMENTS FAILING TO MEET MINIMUM STANDARDS.

    (a) Statement of Policy.--It is the policy of the United States not 
to provide nonhumanitarian foreign assistance to countries which do not 
meet minimum standards for the elimination of trafficking.
    (b) Reports to Congress.--
            (1) Annual report.--Not later than April 30 of each year, 
        the Secretary of State shall submit to the appropriate 
        congressional committees a report with respect to the status of 
        severe forms of trafficking in persons which shall include a 
        list of those countries, if any, to which the minimum standards 
        for the elimination of trafficking under section 8 are 
        applicable and which do not meet such standards, and which may 
        include additional information, including information about 
        efforts to combat trafficking and about countries which have 
        taken appropriate actions to combat trafficking.
            (2) Interim reports.--The Secretary of State may submit to 
        the appropriate congressional committees in addition to the 
        annual report under subsection (b) one or more interim reports 
        with respect to the status of severe forms of trafficking in 
        persons, including information about countries whose 
        governments have come into or out of compliance with the 
        minimum standards for the elimination of trafficking since the 
        transmission of the last annual report.
    (c) Notification.--For fiscal year 2002 and each subsequent fiscal 
year, for each foreign country to which the minimum standards for the 
elimination of trafficking are applicable and which has failed to meet 
such standards, as described in an annual or interim report under 
subsection (b), not less than 45 days and not more than 90 days after 
the submission of such a report the President shall submit a 
notification to the appropriate congressional committees of one of the 
determinations described in subsection (d).
    (d) Determinations.--The determinations referred to in subsection 
(c) are as follows:
            (1) Withholding of nonhumanitarian assistance.--The 
        President has determined that--
                    (A)(i) the United States will not provide 
                nonhumanitarian foreign assistance to the government of 
                the country for the subsequent fiscal year until such 
                government complies with the minimum standards; or
                    (ii) in the case of a country whose government 
                received no nonhumanitarian foreign assistance from the 
                United States during the previous fiscal year, the 
                United States will not provide funding for 
                participation by officials or employees of such 
                governments in educational and cultural exchange 
                programs for the subsequent fiscal year until such 
                government complies with the minimum standards; and
                    (B) the President will instruct the United States 
                Executive Director of each multilateral development 
                bank and of the International Monetary Fund to vote 
                against, and to use his or her best efforts to deny, 
                any loan or other utilization of the funds of his or 
                her institution to that country (other than for 
                humanitarian assistance, or for development assistance 
                which directly addresses basic human needs, is not 
                administered by the government of the sanctioned 
                country, and confers no benefit to that country) for 
                the subsequent fiscal year until such government 
                complies with the minimum standards.
            (2) Subsequent compliance.--The Secretary of State has 
        determined that the country has come into compliance with the 
        minimum standards.
            (3) Continuation of assistance in the national interest.--
        Notwithstanding the failure of the country to comply with 
        minimum standards for the elimination of trafficking, the 
        President has determined that the provision of nonhumanitarian 
        foreign assistance to the country is in the national interest 
        of the United States.
    (e) Certification.--Together with any notification under subsection 
(c), the President shall provide a certification by the Secretary of 
State that with respect to assistance described in clause (i), (ii), or 
(iv) of subparagraph 3(10)(A) or in subparagraph 3(10)(B), no 
assistance is intended to be received or used by any agency or official 
who has participated in, facilitated, or condoned a severe form of 
trafficking in persons.

SEC. 11. ACTIONS AGAINST SIGNIFICANT TRAFFICKERS IN PERSONS.

    (a) Authority To Sanction Significant Traffickers in Persons.--
            (1) In general.--The President may exercise IEEPA 
        authorities (other than authorities relating to importation) 
        without regard to section 202 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1705) in the case of any foreign 
        person who is on the list described in subsection (b).
            (2) Penalties.--The penalties set forth in section 206 of 
        the International Emergency Economic Powers Act (50 U.S.C. 
        1705) apply to violations of any license, order, or regulation 
        issued under this clause (i).
            (3) IEEPA authorities.--For purposes of clause (i), the 
        term ``IEEPA authorities'' means the authorities set forth in 
        section 203(a) of the International Emergency Economic Powers 
        Act (50 U.S.C. 1702(a)).
    (b) List of Traffickers of Persons.--
            (1) Compiling list of traffickers in persons.--The 
        Secretary of State is authorized to compile a list of the 
        following persons:
                    (A) any foreign person that plays a significant 
                role in a severe form of trafficking in persons, 
                directly or indirectly in the United States or any of 
                its territories or possessions;
                    (B) foreign persons who materially assist in, or 
                provide financial or technological support for or to, 
                or providing goods or services in support of, 
                activities of a significant foreign trafficker in 
                persons identified pursuant to subparagraph (A); and
                    (C) foreign persons that are owned, controlled, or 
                directed by, or acting for or on behalf of, a 
                significant foreign trafficker so identified pursuant 
                to subparagraph (A).
            (2) Revisions to list.--The Secretary of State shall make 
        additions or deletions to any list published under paragraph 
        (1) on an ongoing basis based on the latest information 
        available.
            (3) Consultation.--The Secretary of State shall consult 
        with the following officers in carrying out paragraphs (1) and 
        (2).
                    (A) the Attorney General;
                    (B) the Director of Central Intelligence;
                    (C) the Director of the Federal Bureau of 
                Investigation;
                    (D) the Secretary of Labor; and
                    (E) the Secretary of Health and Human Services.
            (4) Publication of list.--Upon compiling the list referred 
        to in paragraph (1) and within 30 days of any revisions to such 
        list, the Secretary of State shall submit the list or revisions 
        to such list to the Committees on the International Relations 
        and Judiciary and the Permanent Select Committee on 
        Intelligence of the House of Representatives; and to the 
        Committees on the Foreign Relations and the Select Committee on 
        Intelligence of the Senate; and publish the list or revisions 
        to such list in the Federal Register.
    (c) Report to Congress on Identification and Sanctioning of 
Significant Traffickers in Persons.--Upon exercising the authority of 
subsection (a), the President shall report to the Committees on the 
International Relations and Judiciary and the Permanent Select 
Committee on Intelligence of the House of Representatives; and to the 
Committees on the Foreign Relations and the Select Committee on 
Intelligence of the Senate--
            (1) identifying publicly the foreign persons that the 
        President determines are appropriate for sanctions pursuant to 
        this section; and
            (2) detailing publicly the sanctions imposed pursuant to 
        this section.
    (d) Exclusion of Certain Information.--
            (1) Intelligence.--Notwithstanding any other provision of 
        this section, the list and report described in subsections (b) 
        and (c) shall not disclose the identity of any person, if the 
        Director of Central Intelligence determines that such 
        disclosure could compromise an intelligence operation, 
        activity, source, or method of the United States.
            (2) Law enforcement.--Notwithstanding any other provision 
        of this section, the list and report described in subsections 
        (b) and (c) shall not disclose the name of any person if the 
        Attorney General, in coordination as appropriate with the 
        Director of the Federal Bureau of Investigation, the 
        Administrator of the Drug Enforcement Administration, and the 
        Secretary of the Treasury, determines that such disclosure 
        could reasonably be expected to--
                    (A) compromise the identity of a confidential 
                source, including a State, local, or foreign agency or 
                authority or any private institution that furnished 
                information on a confidential basis;
                    (B) jeopardize the integrity or success of an 
                ongoing criminal investigation or prosecution;
                    (C) endanger the life or physical safety of any 
                person; or
                    (D) cause substantial harm to physical property.
            (3) Notification required.--(A) Whenever either the 
        Director of Central Intelligence or the Attorney General makes 
        a determination under this subsection, the Director of Central 
        Intelligence or the Attorney General shall notify the Permanent 
        Select Committee on Intelligence of the House of 
        Representatives and the Select Committee on Intelligence of the 
        Senate, and explain the reasons for such determination.
            (B) The notification required under this paragraph shall be 
        submitted to the Permanent Select Committee on Intelligence of 
        the House of Representatives and the Select Committee on 
        Intelligence of the Senate not later than July 1, 2000, and on 
        an annual basis thereafter.
    (e) Law Enforcement and Intelligence Activities Not Affected.--
Nothing in this section prohibits or otherwise limits the authorized 
law enforcement or intelligence activities of the United States, or the 
law enforcement activities of any State or subdivision thereof.
    (f) Exclusion of Persons Who Have Benefited From Illicit Activities 
of Traffickers in Persons.--Section 212(a)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1182(a)(2)) is amended by adding at the end 
the following:
                    ``(H) Traffickers in persons.--Any alien who--
                            ``(i) is a foreign person (as defined in 
                        section 11(h) of the Trafficking Victims 
                        Protection Act of 2000) on the most recent list 
                        compiled under section 11(b) of such Act;
                            ``(ii) the consular officer or the Attorney 
                        General knows or has reason to believe is or 
                        has been a knowing aider, abettor, assister, 
                        conspirator, or colluder with an alien 
                        described in clause (i) in severe forms of 
                        trafficking in persons (as defined in section 3 
                        of such Act); or
                            ``(iii) the consular officer or the 
                        Attorney General knows or has reason to 
                        believe--
                                    ``(I) is the spouse, son, or 
                                daughter of an alien inadmissible under 
                                clause (i) or (ii);
                                    ``(II) has, within the previous 5 
                                years, obtained any financial or other 
                                benefit from the illicit activity of 
                                such alien that is described in such 
                                clause; and
                                    ``(III) knew or reasonably should 
                                have known that the financial or other 
                                benefit was the product of such illicit 
                                activity;
                is inadmissible.''.
    (g) Implementation.--The Secretary of State, the Attorney General, 
and the Secretary of Treasury are authorized to take such actions as 
may be necessary to carry out this section, including promulgating 
rules and regulations permitted under this Act.
    (h) Definition of Foreign Persons.--As used in this section, the 
term ``foreign person'' means any citizen or national of a foreign 
state or any entity not organized under the laws of the United States, 
including a foreign government official, but does not include a foreign 
state.

SEC. 12. STRENGTHENING PROSECUTION AND PUNISHMENT OF TRAFFICKERS.

    (a) Title 18 Amendments.--Chapter 77 of title 18, United States 
Code, is amended--
            (1) in each of sections 1581(a), 1583, and 1584--
                    (A) by striking ``10 years'' and inserting ``20 
                years'';
                    (B) by adding at the end the following: ``If, in 
                addition to the foregoing elements, death results from 
                a violation of this section, or if such violation 
                includes kidnapping or an attempt to kidnap, aggravated 
                sexual abuse or the attempt to commit aggravated sexual 
                abuse, or an attempt to kill, the defendant shall be 
                fined under this title or imprisoned for any term of 
                years or life, or both.'';
            (2) by inserting at the end the following:

``Sec. 1589. Trafficking into involuntary servitude, peonage, or 
                    slavery-like conditions

    ``(a) Whoever recruits, harbors, provides, transports, employs, 
purchases, sells, or secures, by any means, any person, knowing or 
having reason to know that the person is or will be subjected to 
involuntary servitude or peonage or to slavery-like conditions as 
described in subsection (b) of this section, or in any way, financially 
or otherwise, knowingly benefits from, or makes use of, the labor or 
services of a person subjected to a condition of involuntary servitude 
or peonage, shall be fined under this title or imprisoned not more than 
20 years, or both; and if, in addition to the foregoing elements, death 
results from an act committed in violation of this section, or if such 
act includes kidnapping or an attempt to kidnap, aggravated sexual 
abuse or the attempt to commit aggravated sexual abuse, or an attempt 
to kill, shall be fined under this title or imprisoned for any term of 
years or life, or both.
    ``(b) As used in this section, the term `slavery-like conditions' 
means that the labor or services of a person are obtained or maintained 
through any scheme or artifice to defraud, or by means of any plan or 
pattern, including but not limited to false and fraudulent pretense and 
misrepresentations, such that the person reasonably believes that if he 
did not perform the labor or services serious harm would be inflicted 
on himself or on another person.
    ``(c) This section does not apply to labor performed as a 
punishment for a crime whereof the party shall have been duly 
convicted.

``Sec. 1589A. Sex trafficking of children or by force, fraud, or 
                    coercion

    ``(a) In General.--Whoever--
            ``(1) recruits, entices, harbors, purchases, sells, 
        transports, or transfers a person, or
            ``(2) owns, manages, operates, or shares in the proceeds of 
        an enterprise in which a person has been recruited, enticed, 
        harbored, purchased, sold, transported, or transferred,
        knowing or having reason to know that the person will be caused 
        by force, fraud, or coercion to engage in a commercial sex act, 
        or that the person has not attained the age of 18 years and 
        will be caused or expected to engage in a commercial sexual 
        act, shall be punished as provided in subsection (b).
    ``(b) Punishment.--The punishment for an offense under subsection 
(a) is--
            ``(1) if the offense was effected by fraud, force, or 
        coercion, or if the person transported had not attained the age 
        of 14 years at the time of such offense, by a fine under this 
        title or imprisonment for any term of years or for life, or 
        both; or
            ``(2) if the offense was not effected by fraud, force, or 
        coercion, and the person transported had attained the age of 14 
        years but had not attained the age of 18 years at the time of 
        such offense, by a fine under this title or imprisonment for 
        not more than 20 years, or both.
    ``(c) Definition of Commercial Sexual Act.--In this section, the 
term `commercial sexual act' means any sexual act, on account of which 
anything of value is given to or received by any person, and--
            ``(1) which takes place in the United States;
            ``(2) which affects United States foreign commerce; or
            ``(3) in which either the person caused or expected to 
        participate in the act or the person committing the violation 
        is a United States citizen or an alien admitted for permanent 
        residence in the United States.

``Sec. 1590. Unlawful possession of documents in furtherance of 
                    trafficking, involuntary servitude, or peonage

    ``(a) Whoever destroys, conceals, removes, confiscates, or 
possesses any identification, passport, or other immigration documents, 
or any other documentation of another person--
            ``(1) in the course of, or under circumstances which 
        facilitate a violation of section 1581, 1583, 1584, 1589, or 
        1589A or a conspiracy or attempt to commit such a violation; or
            ``(2) to conceal or impair the investigation or prosecution 
        of a violation of any section described in paragraph (1); or
            ``(3) to prevent or restrict, without lawful authority, the 
        person's liberty to move or travel in interstate or foreign 
        commerce,
        shall be fined under this title or imprisoned for not more than 
        5 years, or both.

``Sec. 1591. Mandatory restitution

    ``(a) Notwithstanding sections 3663 or 3663A, and in addition to 
any other civil or criminal penalties authorized by law, the court 
shall order restitution for any offense under this chapter.
    ``(b)(1) The order of restitution under this section shall direct 
the defendant to pay the victim (through the appropriate court 
mechanism) the full amount of the victims losses, as determined by the 
court under paragraph (3) of this subsection.
    ``(2) An order of restitution under this section shall be issued 
and enforced in accordance with section 3664 in the same manner as an 
order under section 3663A.
    ``(3) As used in this subsection, the term `full amount of the 
victim's losses' has the same meaning as provide in section 2259(b)(3) 
and shall in addition include the greater of the gross income or value 
to the defendant of the victim's services or labor or the value of the 
victim's labor as guaranteed under the minimum wage and overtime 
guarantees of the Fair Labor Standards Act (29 U.S.C. 201, et seq.).
    ``(c) As used in this section, the term `victim' means the 
individual harmed as a result of a crime under this chapter, including, 
in the case of a victim who is under 18 years of age, incompetent, 
incapacitated, or deceased, the legal guardian of the victim or a 
representative of the victim's estate, or another family member, or any 
other person appointed as suitable by the court, but in no event shall 
the defendant be named such representative or guardian.

``Sec. 1592. General provisions

    ``(a) In a prosecution under sections 1581, 1583, 1584, or 1589, a 
condition of involuntary servitude or peonage may be established by 
proof that the defendant obtained or maintained the labor or service of 
any person--
            ``(1) by the use, or threatened use, of force, violence, 
        physical restraint, or physical injury, or by extortion or the 
        abuse of threatened abuse of law or the legal process;
            ``(2) through representations made to any person that 
        physical harm may occur to that person, or to another, in an 
        effort to wrongfully obtain or maintain the labor or services 
        of that person; or
            ``(3) by the use of fraud, deceit, or misrepresentation 
        toward any person in an effort to wrongfully obtain or maintain 
        the labor or services of that person, where the person is a 
        minor, one who is mentally disabled, or one who is otherwise 
        particularly susceptible to coercion.
    ``(b) An attempt or conspiracy to violate sections 1581, 1583, 
1584, 1589, or 1589A shall be punishable in the same manner as a 
completed violation of each of these sections, respectively.
    ``(c)(1) The court, in imposing sentence on any person convicted of 
a violation of this chapter, shall order, in addition to any other 
sentence imposed and irrespective of any provision of State law, that 
such person shall forfeit to the United States--
            ``(A) such person's interest in any property, real or 
        personal, that was used or intended to be used to commit or to 
        facilitate the commission of such violation; and
            ``(B) any property, real or personal, constituting or 
        derived from, any proceeds that such person obtained, directly 
        or indirectly, as a result of such violation.
    ``(2) The criminal forfeiture of property under this subsection, 
any seizure and disposition thereof, and any administrative or judicial 
proceeding in relation thereto, shall be governed by the provisions of 
section 413 of the Comprehensive Drug Abuse Prevention and Control Act 
of 1970 (21 U.S.C. 853), except subsection (d) of that section.
    ``(d)(1) The following shall be subject to forfeiture to the United 
States and no property right shall exist in them--
            ``(A) any property, real or personal, used or intended to 
        be used to commit or to facilitate the commission of any 
        violation of this chapter; and
            ``(B) any property, real or personal, which constitutes or 
        is derived from proceeds traceable to any violation of this 
        chapter.
    ``(2) The provisions of chapter 46 of this title relating to civil 
forfeitures shall extend to any seizure or civil forfeiture under this 
subsection.
    ``(e) Witness Protection.--Any violation of this chapter shall be 
considered an organized criminal activity or other serious offense for 
the purposes of application of chapter 224 (relating to witness 
protection).''; and
            (3) by amending the table of sections at the beginning of 
        chapter 77 by adding at the end the following new items:

``1589. Trafficking into involuntary servitude, peonage, or slavery-
like conditions.
``1589A. Sex trafficking of children or by force, fraud, or coercion.
``1590. Unlawful possession of documents in furtherance of trafficking 
involuntary servitude, or peonage.
``1591. Mandatory restitution.
``1592. General provisions.''.
    (b) Amendment to the Sentencing Guidelines.--
            (1) Pursuant to its authority under section 994 of title 
        28, United States Code, and in accordance with this section, 
        the United States Sentencing Commission shall review and, if 
        appropriate, amend the sentencing guidelines and policy 
        statements applicable to persons convicted of offenses 
        involving the trafficking of persons including component or 
        related crimes of peonage, involuntary servitude, slave trade 
        offenses, and possession, transfer or sale of false immigration 
        documents in furtherance of trafficking, and the Fair Labor 
        Standards Act and the Migrant and Seasonal Agricultural Worker 
        Protection Act.
            (2) In carrying out this subsection, the Sentencing 
        Commission shall--
                    (A) take all appropriate measures to ensure that 
                these sentencing guidelines and policy statements 
                applicable to the offenses described in paragraph (1) 
                of this subsection are sufficiently stringent to deter 
                and adequately reflect the heinous nature of such 
                offenses;
                    (B) consider conforming the sentencing guidelines 
                applicable to offenses involving trafficking in persons 
                to the guidelines applicable to peonage, involuntary 
                servitude, and slave trade offenses; and
                    (C) consider providing sentencing enhancements for 
                those convicted of the offenses described in paragraph 
                (1) of this subsection that--
                            (i) involve a large number of victims;
                            (ii) involve a pattern of continued and 
                        flagrant violations;
                            (iii) involve the use or threatened use of 
                        a dangerous weapon; or
                            (iv) result in the death or bodily injury 
                        of any person.
            (3) The Commission may promulgate the guidelines or 
        amendments under this subsection in accordance with the 
        procedures set forth in section 21(a) of the Sentencing Act of 
        1987, as though the authority under that Act had not expired.
    (c) Racketeering.--Section 1961(1) of title 18, United States Code, 
is amended by inserting ``section 1589 (relating to trafficking into 
involuntary servitude, peonage, or slavery-like conditions), section 
1589A (relating to sex trafficking of children or by force, fraud, or 
coercion),'' after ``murder-for-hire),''.

SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations for the Interagency Task 
Force.--To carry out the purposes of section 5, there are authorized to 
be appropriated to the Secretary of State $1,500,000 for fiscal year 
2000 and $3,000,000 for fiscal year 2001.
    (b) Authorization of Appropriations to the Secretary of Health and 
Human Services.--To carry out the purposes of section 7(b) there are 
authorized to be appropriated to the Secretary of Health and Human 
Services $5,000,000 for fiscal year 2000 and $10,000,000 for fiscal 
year 2001.
    (c) Authorization of Appropriations to the Secretary of State.--To 
carry out the purposes of section 7(a) there are authorized to be 
appropriated to the Secretary of State $5,000,000 for fiscal year 2000 
and $10,000,000 for fiscal year 2001.
    (d) Authorization of Appropriations to Attorney General.--To carry 
out the purposes of section 7(b) there are authorized to be 
appropriated to the Attorney General $5,000,000 for fiscal year 2000 
and $10,000,000 for fiscal year 2001.
    (e) Authorization of Appropriations to President.--
            (1) Foreign victim assistance.--To carry out the purposes 
        of section 6 there are authorized to be appropriated to the 
        President $5,000,000 for fiscal year 2000 and $10,000,000 for 
        fiscal year 2001.
            (2) Assistance to foreign countries to meet minimum 
        standards.--To carry out the purposes of section 9 there are 
        authorized to be appropriated to the President $5,000,000 for 
        fiscal year 2000 and $10,000,000 for fiscal year 2001.
    (f) Authorization of Appropriations to the Secretary of Labor.--To 
carry out the purposes of section 7(b) there are authorized to be 
appropriated to the Secretary of Labor $5,000,000 for fiscal year 2000 
and $10,000,000 for fiscal year 2001.

                          Purpose and Summary

    H.R. 3244, the Trafficking Victims Protection Act, is 
intended to prevent trafficking in persons, to ensure 
punishment of traffickers, and to protect their victims. It 
creates an interagency task force to monitor and combat 
trafficking. It also requires initiatives to enhance economic 
opportunity for potential trafficking victims abroad as a 
method to deter trafficking. H.R. 3244 provides protection and 
assistance for trafficking victims both inside the United 
States and abroad. It sets minimum standards for countries to 
eliminate trafficking, provides assistance to foreign countries 
which meet the minimum standards, and sets policy to withhold 
assistance from governments failing to meet those standards. 
Finally, it strengthens prosecution and punishment of 
traffickers.
    The immigration provisions and criminal penalty provisions 
of the bill are the only provisions within the jurisdiction of 
the Committee on the Judiciary. The immigration provisions, as 
amended by the committee, are intended to protect certain 
trafficking victims and their immediate family members in the 
United States and to effectuate prosecution of the victims' 
traffickers.

                Background and Need for the Legislation

                               Background

    Trafficking of persons has recently become a growing 
phenomenon within and across international borders, including 
the United States. Many trafficked persons are forced into the 
sex industry. The rapid expansion of the sex industry and the 
low status of women in many parts of the world have contributed 
to a burgeoning of the trafficking industry.
    Trafficking of persons also involves forced labor, 
involuntary servitude, or slavery. Many trafficked persons are 
induced to perform labor or other services by force or the 
threat of force.

                 Trafficking of Persons and Immigration

    When trafficked persons are brought to the United States, 
they are often deportable for having entered illegally. Many 
are smuggled into the country. Others obtain visas under false 
pretenses, use fraudulent passports, or overstay their visas. 
Once placed in the sex trade or forced labor, the victims' 
traffickers control them through threats. The victims are told 
that if they escape or go to law enforcement authorities, they 
will be deported. Of those victims who do give information to 
the authorities, some claim they cannot return to their home 
country for fear of retribution at the hands of their 
traffickers.

                                The Bill

    Each year, tens of thousands of aliens pay smugglers to be 
brought to the United States. Once here, they must work long 
hours to pay off their smuggling debts of tens of thousands of 
dollars. It is not the committee's intent that such people 
receive the new nonimmigrant ``T'' visa created by H.R. 3244 or 
the permanent residence provided by the bill. Otherwise, this 
bill would become a general amnesty for aliens who, we must 
remember, voluntarily sought out smugglers to bring them 
illegally to the United States. Additionally, the bill would 
actually encourage alien smuggling by providing the expectation 
of eventual amnesty.
    Accordingly, to be eligible for a ``T'' visa, H.R. 3244 
requires that a trafficking victim show that he or she was 
induced to participate in the commercial sex act or condition 
of involuntary servitude, peonage, or slavery or slavery-like 
practices by force, coercion, fraud or deception. The alien 
will not be eligible for the visa if the alien knew that, after 
being voluntarily smuggled here, he or she would be subjected 
to involuntary servitude, peonage, slavery, or slavery-like 
practices. In addition, merely being forced to work for a 
period of time in order to pay off a smuggling fee does not 
constitute a severe form of trafficking (entitling an alien to 
a ``T'' visa and eventual permanent residence) under the bill.
    The intent is to provide ``T'' visas (and eventual 
permanent residence) to trafficking victims who were trafficked 
to the United States. Victims who were trafficked between two 
other countries but who eventually arrive in the United States 
without being trafficked here do not merit a ``T'' visa. As 
such, H.R. 3244 restricts ``T'' visas to only those trafficking 
victims who are physically present in the United States or at a 
port of entry into the United States by reason of having been 
transported to the United States or the port of entry in 
connection with a severe form of trafficking in persons.
    The most important goal of H.R. 3244 is to prevent 
trafficking of persons. To achieve this goal, cooperation from 
trafficking victims with law enforcement authorities is 
essential to investigate, indict, and prosecute traffickers. 
Therefore, H.R. 3244 requires that a trafficking victim show 
that he or she has complied with any reasonable request for 
assistance in the investigation or prosecution of severe forms 
of trafficking in persons, or be under the age of 15 years old, 
to receive a ``T'' visa.
    In hearings held by other committees on trafficking in 
persons, victims have explained that they are afraid of 
returning to their home countries--fearing retribution from 
their traffickers for having gone to United States law 
enforcement authorities. To combat this intimidation, H.R. 3244 
provides relief to aliens who show either a well-founded fear 
of retribution involving the infliction of severe harm or 
extreme hardship in connection with having been trafficked. 
Absent such intimidation, there is no rationale to provide 
relief.
    Any alien who traffics persons or assists in the 
trafficking of persons, including a victim's family member, 
does not merit a visa. Therefore, H.R. 3244 bars any alien from 
a ``T'' visa if there is substantial reason to believe that the 
alien has committed an act of a severe form of trafficking in 
persons. In addition, H.R. 3244 creates a new ground of 
inadmissibility for an alien who is a trafficker in persons, 
assisted in trafficking of persons, or is a family member of a 
trafficker who knowingly benefitted from the trafficking within 
the previous five years.
    In order that this bill never become a general amnesty 
program for smuggled aliens, H.R. 3244 places an annual cap of 
5,000 on visas available to trafficking victims. If that cap is 
reached in any fiscal year, neither the INS, nor the Executive 
Office for Immigration Review should permit ``T'' visa 
applicants who exceed the 5,000 cap to remain in the United 
States to await a ``T'' visa in the next fiscal year.

                                Hearings

    The committee's Subcommittee on Immigration and Claims held 
no hearings on H.R. 3244.

                        Committee Consideration

    On March 8, 2000, the Subcommittee on Immigration and 
Claims met in open session and ordered favorably reported the 
bill H.R. 3244, as amended, by a voice vote, a quorum being 
present. On April 4, 2000, the committee met in open session 
and ordered favorably reported the bill H.R. 3244 with an 
amendment in the nature of a substitute by voice vote, a quorum 
being present.

                         Votes of the Committee

    Subject: Amendment offered by Mr. Conyers to the Smith/
Canady amendment to the amendment in the nature of a substitute 
to H.R. 3244 which would eliminate the 5,000 cap placed on 
visas and adjustments of status for trafficking victims ``if 
the Attorney General determines that it should be exceeded by a 
specific number in any year for humanitarian reasons.'' By a 
roll call vote of 14 yeas to 16 nays, the amendment was 
defeated.

                                                   ROLLCALL NO. 1
----------------------------------------------------------------------------------------------------------------
                                                                       Ayes            Nays           Present
----------------------------------------------------------------------------------------------------------------
Mr. Sensenbrenner...............................................  ..............  ..............  ..............
Mr. McCollum....................................................  ..............              X   ..............
Mr. Gekas.......................................................  ..............  ..............  ..............
Mr. Coble.......................................................  ..............  ..............  ..............
Mr. Smith (TX)..................................................  ..............              X   ..............
Mr. Gallegly....................................................  ..............              X   ..............
Mr. Canady......................................................  ..............              X   ..............
Mr. Goodlatte...................................................  ..............              X   ..............
Mr. Chabot......................................................  ..............              X   ..............
Mr. Barr........................................................  ..............              X   ..............
Mr. Jenkins.....................................................  ..............              X   ..............
Mr. Hutchinson..................................................  ..............              X   ..............
Mr. Pease.......................................................  ..............              X   ..............
Mr. Cannon......................................................  ..............              X   ..............
Mr. Rogan.......................................................  ..............              X   ..............
Mr. Graham......................................................  ..............              X   ..............
Ms. Bono........................................................  ..............              X   ..............
Mr. Bachus......................................................  ..............  ..............  ..............
Mr. Scarborough.................................................  ..............  ..............  ..............
Mr. Vitter......................................................  ..............              X   ..............
Mr. Conyers.....................................................              X   ..............  ..............
Mr. Frank.......................................................              X   ..............  ..............
Mr. Berman......................................................              X   ..............  ..............
Mr. Boucher.....................................................              X   ..............  ..............
Mr. Nadler......................................................              X   ..............  ..............
Mr. Scott.......................................................              X   ..............  ..............
Mr. Watt........................................................              X   ..............  ..............
Ms. Lofgren.....................................................              X   ..............  ..............
Ms. Jackson Lee.................................................              X   ..............  ..............
Ms. Waters......................................................              X   ..............  ..............
Mr. Meehan......................................................  ..............  ..............  ..............
Mr. Delahunt....................................................              X   ..............  ..............
Mr. Wexler......................................................              X   ..............  ..............
Mr. Rothman.....................................................              X   ..............  ..............
Ms. Baldwin.....................................................  ..............  ..............  ..............
Mr. Weiner......................................................              X   ..............  ..............
Mr. Hyde, Chairman..............................................  ..............              X   ..............
                                                                 -----------------------------------------------
    Total.......................................................             14              16   ..............
----------------------------------------------------------------------------------------------------------------

    Subject: Amendment offered by Ms. Jackson Lee to the Smith/
Canady amendment to the amendment in the nature of a substitute 
to H.R. 3244 to permit family members of trafficking victims to 
receive visas without the family members having to show extreme 
hardship. By a roll call vote of 14 yeas to 16 nays, the 
amendment was defeated.

                                                   ROLLCALL NO. 2
----------------------------------------------------------------------------------------------------------------
                                                                       Ayes            Nays           Present
----------------------------------------------------------------------------------------------------------------
Mr. Sensenbrenner...............................................  ..............  ..............  ..............
Mr. McCollum....................................................  ..............              X   ..............
Mr. Gekas.......................................................  ..............              X   ..............
Mr. Coble.......................................................  ..............  ..............  ..............
Mr. Smith (TX)..................................................  ..............              X   ..............
Mr. Gallegly....................................................  ..............              X   ..............
Mr. Canady......................................................  ..............              X   ..............
Mr. Goodlatte...................................................  ..............              X   ..............
Mr. Chabot......................................................  ..............              X   ..............
Mr. Barr........................................................  ..............  ..............  ..............
Mr. Jenkins.....................................................  ..............              X   ..............
Mr. Hutchinson..................................................  ..............              X   ..............
Mr. Pease.......................................................  ..............              X   ..............
Mr. Cannon......................................................  ..............              X   ..............
Mr. Rogan.......................................................  ..............              X   ..............
Mr. Graham......................................................  ..............              X   ..............
Ms. Bono........................................................  ..............              X   ..............
Mr. Bachus......................................................  ..............  ..............  ..............
Mr. Scarborough.................................................  ..............  ..............  ..............
Mr. Vitter......................................................  ..............              X   ..............
Mr. Conyers.....................................................              X   ..............  ..............
Mr. Frank.......................................................              X   ..............  ..............
Mr. Berman......................................................              X   ..............  ..............
Mr. Boucher.....................................................              X   ..............  ..............
Mr. Nadler......................................................              X   ..............  ..............
Mr. Scott.......................................................              X   ..............  ..............
Mr. Watt........................................................              X   ..............  ..............
Ms. Lofgren.....................................................              X   ..............  ..............
Ms. Jackson Lee.................................................              X   ..............  ..............
Ms. Waters......................................................              X   ..............  ..............
Mr. Meehan......................................................  ..............  ..............  ..............
Mr. Delahunt....................................................              X   ..............  ..............
Mr. Wexler......................................................              X   ..............  ..............
Mr. Rothman.....................................................              X   ..............  ..............
Ms. Baldwin.....................................................  ..............  ..............  ..............
Mr. Weiner......................................................              X   ..............  ..............
Mr. Hyde, Chairman..............................................  ..............              X   ..............
                                                                 -----------------------------------------------
    Total.......................................................             14              16   ..............
----------------------------------------------------------------------------------------------------------------

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the committee reports that the 
findings and recommendations of the committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

                Committee on Government Reform Findings

    No findings or recommendations of the Committee on 
Government Reform were received as referred to in clause 
3(c)(4) of rule XIII of the Rules of the House of 
Representatives.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of House Rule XIII is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the committee sets forth, with 
respect to the bill, H.R. 3244, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 13, 2000.
Hon. Henry J. Hyde, Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3244, the 
Trafficking Victims Protection Act of 2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact for federal 
costs is Sunita D'Monte, who can be reached at 226-2840. The 
CBO staff contacts for intergovernmental and private-sector 
mandates are Leo Lex (225-3220) and Keith Mattrick (226-2940), 
respectively.
            Sincerely,
                                  Dan L. Crippen, Director.

Enclosure

cc:
        Honorable John Conyers Jr.
        Ranking Democratic Member
H.R. 3244--Trafficking Victims Protection Act of 2000.

                                SUMMARY

    H.R. 3244 is aimed at combating trafficking of persons, 
especially into the sex trade, slavery, and slavery-like 
conditions. The bill would establish an interagency task force 
within the State Department to monitor and report such 
trafficking, prohibit certain forms of assistance to countries 
that fail to combat trafficking, criminalize certain activities 
related to trafficking, allow victims of trafficking to enter 
and remain in the United States, and authorize various programs 
to assist victims. The bill defines trafficking as the 
purchase, sale, recruitment, harboring, transportation, 
transfer, or receipt of a person for the purpose of a 
commercial sex act or forced labor. CBO estimates that 
appropriation of the authorized amounts would result in 
additional discretionary spending of $89 million over the 2000-
2005 period. Enactment of the legislation would affect direct 
spending and revenues; thus, pay-as-you-go procedures would 
apply. We estimate that direct spending would increase by less 
than $500,000 in 2000 and by $20 million over the 2000-2005 
period, and that revenues would increase by less than $500,000 
annually.
    H.R. 3244 contains an intergovernmental mandate as defined 
in the Unfunded Mandates Reform Act (UMRA); however, CBO 
estimates that the cost of the mandate would not be 
significant. Increased spending for Medicaid and Temporary 
Assistance for Needy Families (TANF) would not be 
intergovernmental mandates because states have flexibility 
within those programs to alter their financial or programmatic 
responsibilities to accommodate the change. Other provisions of 
the bill would provide grant assistance to state, local, and 
tribal governments for programs benefitting victims of 
trafficking crimes.
    The bill would impose mandates on entities that engage in 
certain transactions with foreign persons identified as human 
traffickers. CBO estimates that the costs of those mandates 
would fall well below the threshold for private-sector mandates 
established in UMRA ($109 million in 2000, adjusted annually 
for inflation).

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of H.R. 3244 is shown in the 
following table. The costs of this legislation fall within 
budget functions 150 (international affairs), 500 (education, 
employment, training, and social services), 550 (health), 600 
(income security), and 750 (administration of justice).
Spending Subject to Appropriation
    For purposes of this estimate, CBO assumes that H.R. 3244 
will be enacted and the initial appropriations will be provided 
by July 1, 2000. The bill would authorize appropriations of $95 
million over the 2000-2001 period. Assuming appropriation of 
the amounts authorized for each year and based on historical 
spending patterns for similar programs, CBO estimates that the 
bill would result in discretionary outlays totaling $89 million 
over the 2000-2005 period.
            Overseas Assistance.
    The bill would authorize appropriations for the President, 
through the Agency for International Development (AID) and 
other agencies, to establish and administer programs to 
increase public awareness of trafficking and to offer 
microcredit lending, skills training, business development and 
other initiatives for potential victims of trafficking. It 
would also require the State Department and AID to initiate 
programs for the safe integration and resettlement of victims 
and to assist foreign countries in eliminating trafficking. CBO 
estimates these provisions would increase spending by $41 
million over the 2000-2005 period.
            Domestic Assistance.
    Section 13 would authorize appropriations for the Attorney 
General, the Secretary of Labor, and the Department of Health 
and Human Services (HHS) to expand existing services to provide 
assistance for victims of trafficking. CBO estimates that 
outlays would increase by $43 million over the 2000-2005 
period. In addition to increases in discretionary spending, CBO 
expects that HHS would expand services in mandatory programs to 
provide assistance to victims of trafficking.
            Interagency Task Force.
    Section 13 would authorize appropriations for an 
interagency task force within the State Department to monitor, 
combat, and report on trafficking. CBO estimates this section 
would increase spending by $5 million over the 2000-2005 
period.
            Law Enforcement.
    Section 12 would make certain activities related to 
trafficking federal crimes and would increase penalties for 
existing offenses relating to trafficking. As a result, the 
federal government could pursue cases that it otherwise would 
not be able to prosecute. CBO expects that any increase in 
federal costs for law enforcement, court proceedings, or prison 
operations would not be significant, however, because of the 
relatively small number of cases likely to be involved. Any 
such additional costs would be subject to the availability of 
appropriated funds.

                                     By fiscal year, in millions of dollars
----------------------------------------------------------------------------------------------------------------
                                                              2000     2001     2002     2003     2004     2005
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Overseas Assistance
  Authorization Level                                            15       30        0        0        0        0
  Estimated Outlays                                               1       13       17        6        3        a

Domestic Assistance
  Authorization Level                                            15       30        0        0        0        0
  Estimated Outlays                                               1       21       12        6        2        1

Interagency Task Force
  Authorization Level                                             2        3        0        0        0        0
  Estimated Outlays                                               a        3        1        a        a        0

Law Enforcement
  Estimated Authorization Level                                   a        a        a        a        a        a
  Estimated Outlays                                               a        a        a        a        a        a

Total
  Estimated Authorization Level                                  32       63        a        a        a        a
  Estimated Outlays                                               3       37       30       13        5        1

CHANGES IN DIRECT SPENDING AND REVENUES
Medicaid
  Estimated Budget Authority                                      a        1        1        2        3        4
  Estimated Outlays                                               a        1        1        2        3        4

TANF
  Estimated Budget Authority                                      0        0        0        0        0        0
  Estimated Outlays                                               a        a        1        2        2        3

Other
  Estimated Budget Authority                                      a        a        a        a        a        a
  Estimated Outlays                                               a        a        a        a        a        a

Total
  Estimated Budget Authority                                      a        1        2        2        3        4
  Estimated Outlays                                               a        1        2        4        5        7

Estimated Penalties (Revenues)                                    a        a        a        a        a        a
----------------------------------------------------------------------------------------------------------------
a. Less than $500,000.

Direct Spending and Revenues
            Medicaid and TANF.
    H.R. 3244 would require the Secretary of HHS to expand 
existing services to provide assistance to victims of 
trafficking, regardless of their immigration status. Under 
current law, aliens who are in the United States illegally or 
admitted under a nonimmigrant class are ineligible for most 
federal public benefits. HHS administers several mandatory 
benefit programs for which victims of trafficking could be 
newly eligible. Those programs include Medicaid and TANF.
    Based on information from the State Department, CBO assumes 
that about 50,000 women and children are trafficked into the 
United States every year. Although data on the number of 
trafficking victims who are able to leave their situations are 
unavailable, discussions with State Department officials led 
CBO to assume that only about 2,000 victims would be freed each 
year and could potentially receive benefits. Of these 2,000 
individuals, we anticipate that one-third would be nonelderly 
adult women and another third would be children, for a total of 
about 1,300 women and children who could be eligible for 
Medicaid or TANF each year. In addition, we adjusted the total 
number of children eligible for benefits to account for births 
to adult women, based on an estimated 9 percent annual 
fertility rate among noncitizen women of child-bearing age.
    CBO expects that 80 percent of the eligible individuals 
would participate in Medicaid and 45 percent would participate 
in TANF. These participation rates are based on the utilization 
rates of these programs by the most disadvantaged refugees in 
the United States. CBO estimates that 460 children and 110 
women would receive Medicaid benefits in fiscal year 2001, at a 
federal cost of $1 million. With the cumulative effects of 
additional applicants and births each year, participation would 
grow to about 2,500 children and 900 women in 2005, for a total 
cost of $11 million over the 2000-2005 period. Because of the 
lower participation rate in TANF, the number of women and 
children receiving TANF benefits would be roughly half the 
number participating in Medicaid, resulting in insignificant 
costs in 2001 and a total cost of $8 million over the period.
    In addition, children born to women in the United States 
would be citizens and could be eligible for other federal 
means-tested benefits, such as Food Stamps or Supplemental 
Security Income. CBO estimates that additional costs for those 
programs would be insignificant during the next five years.
            Other Provisions.
    The bill contains other provisions that, in total, would 
affect direct spending and revenues by less than $500,000 a 
year.
    Immigration Status for Certain Victims. Section 7(f) would 
establish a new nonimmigrant category for certain victims of 
trafficking and would permit certain victims to attain 
permanent U.S. residence. Costs to the Immigration and 
Naturalization Service for adjudicating such cases would be 
funded from fees collected by the agency. CBO estimates that 
any such costs would not be significant because of the small 
number of trafficking victims likely to be involved.
    Penalties for Trafficking. Section 11 would allow the 
President to impose penalties on foreign traffickers of persons 
under the International Emergency Economic Powers Act. CBO 
estimates that this provision would result in a negligible 
increase in revenues.
    Criminal Fines and Seizure of Assets. Section 12 would 
allow the federal government to pursue new cases related to 
trafficking. Because those prosecuted and convicted under H.R. 
3244 could be subject to criminal fines, the federal government 
might collect additional fines if the bill is enacted. 
Collections of such fines are recorded in the budget as 
governmental receipts (revenues), which are deposited in the 
Crime Victims Fund and spent in subsequent years. CBO expects 
that any additional receipts and direct spending would not be 
significant.
    Persons prosecuted and convicted under the bill also could 
be subject to the seizure of certain assets by the federal 
government. Proceeds from the sale of such assets would be 
deposited into the Assets Forfeiture Fund and spent from that 
fund, mostly in the same year. Thus, enacting H.R. 3244 could 
increase both revenues deposited into the fund and direct 
spending from the fund. However, CBO estimates that any 
increased revenues or spending would be negligible.

                      PAY-AS-YOU-GO CONSIDERATIONS

    The Balanced Budget and Emergency Deficit Control Act sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts. The net changes in direct spending and 
receipts are shown in the following table. For the purposes of 
enforcing pay-as-you-go procedures, only the effects in current 
year, the budget year, and the succeeding four years are 
counted.

                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                      2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010
----------------------------------------------------------------------------------------------------------------
Changes in outlays                       0      1      2      4      5      7     11     12     15     19     23
Changes in receipts                      0      0      0      0      0      0      0      0      0      0      0
----------------------------------------------------------------------------------------------------------------

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    The bill would require courts to order forfeitures of 
property against people who are convicted of trafficking 
persons, irrespective of state law. By preempting the 
application of state laws, the bill would impose a mandate on 
state governments, and the imposition of the mandate could 
result in the loss of forfeited property under state laws. 
However, CBO estimates any such loss to state governments would 
be not significant.
    By directing various federal agencies to expand existing 
services and provide assistance to victims of severe forms of 
trafficking without regard to immigration status, the bill 
would increase spending for a number of federal and state 
public assistance programs, including Medicaid and TANF. The 
state portion of Medicaid spending for services to trafficking 
victims would total $11 million over the fiscal year 2000-2005 
period. Spending within the TANF program is estimated to total 
$8 million over the same period. Generally, states would be 
able to use unspent federal TANF funds to cover these 
additional costs.
    The bill would also authorize federal matching grants to 
state, local, and tribal governments, as well as other 
organizations, for programs benefitting trafficking victims. 
The authorizations for such grants would total $5 million in 
fiscal year 2000 and $10 million in fiscal year 2001. State, 
local, and tribal governments and other organizations would 
have to spend at least $1 for every $3 of federal assistance.
    The bill would authorize the President to regulate or 
prohibit certain transactions involving foreign persons 
identified as participants in human trafficking. New 
presidential restrictions could impose costs on U.S. entities 
engaged in those transactions. Although CBO cannot predict the 
nature of such measures, information provided by government 
sources indicates that the new authority is not likely to 
impose significant costs on the private sector.

                         PREVIOUS CBO ESTIMATE:

    On December 29,1999, CBO prepared a cost estimate for H.R. 
3244 as reported by the House Committee on International 
Relations. Although both versions of the bill have similar 
provisions and costs, CBO assumes a later enactment date for 
H.R. 3244 as ordered reported by the House Committee on the 
Judiciary.

                         ESTIMATE PREPARED BY:

Federal Costs: International affairs: Sunita D'Monte (226-2840)
Immigration and Law Enforcement: Mark Grabowicz (226-2860)
Education, Employment, Training, and Social Services: Christi 
        Hawley Sadoti (226-2820)
Income Security: Valerie Baxter and Sheila Dacey (226-2820)
Health: Eric Rollins (226-9010)
Impact on State, Local, and Tribal Governments: Leo Lex (225-
        3220)
Impact on the Private Sector: Keith Mattrick (226-2940)

                         ESTIMATE APPROVED BY:

Robert A. Sunshine
Assistant Director for Budget Analysis

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the committee finds the authority for 
this legislation in Article I, section 8, clause 4 of the 
Constitution.

               Section-by-Section Analysis and Discussion

    H.R. 3244 was referred to the Committee on International 
Relations and, in addition, to the Committee on the Judiciary 
and the Committee on Banking and Financial Services in each 
case for consideration of such provisions as fall within the 
jurisdiction of the committee concerned. The following is a 
discussion of sections within the jurisdiction of the Committee 
on the Judiciary.
Sec. 7. Protection and Assistance for Victims of Trafficking
    Section 7(c) Trafficking Victim Regulations. Section 7(c) 
requires the Attorney General to promulgate regulations for law 
enforcement personnel and immigration officials to: (1) provide 
protection if a victim's safety is at risk; (2) refrain from 
imprisoning, fining or penalizing victims due to having been 
trafficked; (3) provide victims with access to legal assistance 
and translation services; (4) ensure an alien's continued 
presence in the United States if a trafficking victim or a 
material witness to effectuate prosecution of those 
responsible; and (5) train personnel in identifying victims. 
Subsections 7(c)(2) and (c)(4) state that the INS' authority to 
detain aliens shall not be curtailed by such regulations.
    Section 7(f) Protection from Removal for Certain Victims of 
Trafficking. Section 7(f)(1) creates a new nonimmigrant ``T'' 
visa for an alien who: (1) is a victim of a severe form of 
trafficking in persons, as defined in section 3 of the act; (2) 
is in the United States or at a United States port of entry by 
reason of having been trafficked here; (3) is no older than 14 
years of age or was induced to participate in the sex trade or 
slavery-like practices by force, coercion, fraud, or deception, 
did not voluntarily agree to any arrangement including such 
participation, and has complied with any reasonable request for 
assistance in the investigation or prosecution of trafficking 
acts; and (4) has a well-founded fear of retribution involving 
the infliction of severe harm upon removal from the United 
States or would suffer extreme hardship in connection with the 
trafficking upon removal from the United States. It also 
permits the Attorney General to grant a ``T'' visa if necessary 
to avoid extreme hardship to the victim's spouse, sons and 
daughters (who are not children), and the parents if the victim 
is under 21 years old. A victim's children who are unmarried 
and under 21 years old need not establish extreme hardship to 
receive a ``T'' visa. It precludes anyone in this section from 
receiving a ``T'' visa if there is substantial reason to 
believe that the person has committed an act of a severe form 
of trafficking in persons.
    Section 7(f)(2) permits the Attorney General to waive 
grounds of inadmissibility, including health-related grounds, 
public charge, and, with the exception of security, 
international child abduction, and former citizens who 
renounced citizenship to avoid taxation, any other provision of 
section 212(a) of the INA if the activities rendering the alien 
inadmissible were caused by the trafficking. It states that the 
INS is not prohibited from instituting removal proceedings 
against an alien admitted with a ``T'' visa for conduct 
committed after the alien's admission into the United States, 
or for conduct or a condition that was not disclosed to the 
Attorney General prior to the alien's admission. This section 
also places an annual cap of 5,000 on ``T'' visas for 
trafficking victims.
    Section 7(f)(4) permits the Attorney General to adjust the 
status of a ``T'' visa holder to that of a permanent resident 
if the alien: (1) has been physically present in the United 
States for a continuous period of at least 3 years since the 
date of admission; (2) has throughout such period been a person 
of good moral character; (3) has during such period complied 
with any reasonable request for assistance in the investigation 
or prosecution of trafficking acts; and (4) has a well-founded 
fear of retribution involving the infliction of severe harm 
upon removal from the United States, or would suffer extreme 
hardship in connection with the trafficking upon removal from 
the United States. It also permits the Attorney General to 
adjust the status of the victim's spouse, parents, and married 
and unmarried sons and daughters, if admitted with a ``T'' 
visa, to that of an alien lawfully admitted for permanent 
residence. An annual cap of 5,000 is placed on adjustments of 
status for victims. It also permits the Attorney General to 
waive grounds of inadmissibility, including health-related 
grounds, public charge, and, with the exception of security, 
international child abduction, and former citizens who 
renounced citizenship to avoid taxation, any other provision of 
section 212(a) of the INA if the activities rendering the alien 
inadmissible were caused by the trafficking. Finally, it 
explains that an alien has not maintained continuous physical 
presence in the United States if the alien has departed the 
United States for any period in excess of 90 days or for any 
period in the aggregate exceeding 180 days.
Section 11. Actions Against Significant Traffickers in Persons
    Section 11(f) Exclusion of Persons Who Have Benefitted from 
Illicit Activities of Traffickers. Section 11(f) creates a 
ground of inadmissibility for any alien who is a trafficker in 
persons, assisted in trafficking of persons, or is a family 
member of a trafficker who knowingly benefitted from the 
trafficking within the previous five years.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

IMMIGRATION AND NATIONALITY ACT

           *       *       *       *       *       *       *


                            TITLE I--GENERAL

                              definitions

    Section 101. (a) As used in this Act--
    (1)  * * *

           *       *       *       *       *       *       *

    (15) The term ``immigrant'' means every alien except an 
alien who is within one of the following classes of 
nonimmigrant aliens--
            (A)  * * *

           *       *       *       *       *       *       *

            (R) an alien, and the spouse and children of the 
        alien if accompanying or following to join the alien, 
        who--
                    (i)  * * *
                    (ii) seeks to enter the United States for a 
                period not to exceed 5 years to perform the 
                work described in subclause (I), (II), or (III) 
                of paragraph (27)(C)(ii); [or]
            (S) subject to section 214(k), an alien--
                    (i)  * * *

           *       *       *       *       *       *       *

                    (ii) who the Secretary of State and the 
                Attorney General jointly determine--
                            (I)  * * *

           *       *       *       *       *       *       *

                            (IV) is eligible to receive a 
                        reward under section 36(a) of the State 
                        Department Basic Authorities Act of 
                        1956,
        and, if the Attorney General (or with respect to clause 
        (ii), the Secretary of State and the Attorney General 
        jointly) considers it to be appropriate, the spouse, 
        married and unmarried sons and daughters, and parents 
        of an alien described in clause (i) or (ii) if 
        accompanying, or following to join, the alien[.]; or
            (T) subject to section 214(n), an alien, and the 
        children of the alien if accompanying or following to 
        join the alien, who the Attorney General determines--
                    (i) is or has been a victim of a severe 
                form of trafficking in persons (as defined in 
                section 3 of the Trafficking Victims Protection 
                Act of 2000);
                    (ii) is physically present in the United 
                States or at a port of entry into the United 
                States by reason of having been transported to 
                the United States or the port of entry in 
                connection with such severe form of trafficking 
                in persons;
                    (iii)(I) has not attained 15 years of age; 
                or
                    (II) was induced to participate in the 
                commercial sex act or condition of involuntary 
                servitude, peonage, or slavery or slavery-like 
                practices that is the basis of the 
                determination under clause (i) by force, 
                coercion, fraud, or deception, did not 
                voluntarily agree to any arrangement including 
                such participation, and has complied with any 
                reasonable request for assistance in the 
                investigation or prosecution of severe forms of 
                trafficking in persons; and
                    (iv)(I) has a well-founded fear of 
                retribution involving the infliction of severe 
                harm upon removal from the United States; or
                    (II) would suffer extreme hardship in 
                connection with the victimization described in 
                clause (i) upon removal from the United States;
        and, if the Attorney General considers it to be 
        necessary to avoid extreme hardship, the spouse, and 
        sons and daughters (who are not children), of any such 
        alien (and the parents of any such alien, in the case 
        of an alien under 21 years of age) if accompanying or 
        following to join the alien.

           *       *       *       *       *       *       *


TITLE II--IMMIGRATION

           *       *       *       *       *       *       *


 Chapter 2--Qualifications for Admission of Aliens; Travel Control of 
Citizens and Aliens

           *       *       *       *       *       *       *


 general classes of aliens ineligible to receive visas and ineligible 
               for admission; waivers of inadmissibility

      Sec. 212. (a) Classes of Aliens Ineligible for Visas or 
Admission.--Except as otherwise provided in this Act, aliens 
who are inadmissible under the following paragraphs are 
ineligible to receive visas and ineligible to be admitted to 
the United States:
            (1)  * * *

           *       *       *       *       *       *       *

            (2) Criminal and related grounds.--
                    (A)  * * *

           *       *       *       *       *       *       *

                    (H) Traffickers in persons.--Any alien 
                who--
                            (i) is a foreign person (as defined 
                        in section 11(h) of the Trafficking 
                        Victims Protection Act of 2000) on the 
                        most recent list compiled under section 
                        11(b) of such Act;
                            (ii) the consular officer or the 
                        Attorney General knows or has reason to 
                        believe is or has been a knowing aider, 
                        abettor, assister, conspirator, or 
                        colluder with an alien described in 
                        clause (i) in severe forms of 
                        trafficking in persons (as defined in 
                        section 3 of such Act); or
                            (iii) the consular officer or the 
                        Attorney General knows or has reason to 
                        believe--
                                    (I) is the spouse, son, or 
                                daughter of an alien 
                                inadmissible under clause (i) 
                                or (ii);
                                    (II) has, within the 
                                previous 5 years, obtained any 
                                financial or other benefit from 
                                the illicit activity of such 
                                alien that is described in such 
                                clause; and
                                    (III) knew or reasonably 
                                should have known that the 
                                financial or other benefit was 
                                the product of such illicit 
                                activity;
                is inadmissible.

           *       *       *       *       *       *       *

      (d)(1)  * * *

           *       *       *       *       *       *       *

    (13)(A) The Attorney General shall determine whether a 
ground for inadmissibility exists with respect to a 
nonimmigrant described in section 101(a)(15)(T).
    (B) In addition to any other waiver that may be available 
under this section, in the case of a nonimmigrant described in 
section 101(a)(15)(T), if the Attorney General considers it to 
be in the national interest to do so, the Attorney General, in 
the Attorney General's discretion, may waive the application 
of--
            (i) paragraphs (1) and (4) of subsection (a); and
            (ii) any other provision of such subsection 
        (excluding paragraphs (3), (10)(C), and (10(E)) if the 
        activities rendering the alien inadmissible under the 
        provision were caused by, or were incident to, the 
        victimization described in section 101(a)(15)(T)(i).
    (C) Nothing in this paragraph shall be regarded as 
prohibiting the Attorney General from instituting removal 
proceedings against an alien admitted as a nonimmigrant under 
section 101(a)(15)(T) for conduct committed after the alien's 
admission into the United States, or for conduct or a condition 
that was not disclosed to the Attorney General prior to the 
alien's admission as a nonimmigrant under section 
101(a)(15)(T).

           *       *       *       *       *       *       *


                       admission of nonimmigrants

      Sec. 214. (a) * * *

           *       *       *       *       *       *       *

    [(l)] (m)(1) An alien may not be accorded status as a 
nonimmigrant under section 101(a)(15)(F)(i) in order to pursue 
a course of study--
            (A) at a public elementary school or in a publicly 
        funded adult education program; or
            (B) at a public secondary school unless--
                    (i) the aggregate period of such status at 
                such a school does not exceed 12 months with 
                respect to any alien, and (ii) the alien 
                demonstrates that the alien has reimbursed the 
                local educational agency that administers the 
                school for the full, unsubsidized per capita 
                cost of providing education at such school for 
                the period of the alien's attendance.
    (2) An alien who obtains the status of a nonimmigrant under 
section 101(a)(15)(F)(i) in order to pursue a course of study 
at a private elementary or secondary school or in a language 
training program that is not publicly funded shall be 
considered to have violated such status, and the alien's visa 
under section 101(a)(15)(F) shall be void, if the alien 
terminates or abandons such course of study at such a school 
and undertakes a course of study at a public elementary school, 
in a publicly funded adult education program, in a publicly 
funded adult education language training program, or at a 
public secondary school (unless the requirements of paragraph 
(1)(B) are met).
    (n)(1) No alien shall be eligible for admission to the 
United States under section 101(a)(15)(T) if there is 
substantial reason to believe that the alien has committed an 
act of a severe form of trafficking in persons (as defined in 
section 3 of the Trafficking Victims Protection Act of 2000).
    (2) The total number of aliens who may be issued visas or 
otherwise provided nonimmigrant status during any fiscal year 
under section 101(a)(15)(T) may not exceed 5,000.
    (3) The numerical limitation of paragraph (2) shall only 
apply to principal aliens and not to the spouses, sons, 
daughters, or parents of such aliens.
    (4) Aliens who are subject to the numerical limitation of 
paragraph (2) shall be issued visas (or otherwise provided 
nonimmigrant status) in the order in which petitions are filed 
for such visas or status.

           *       *       *       *       *       *       *


               Chapter 5--Adjustment and Change of Status

  adjustment of status of nonimmigrant to that of person admitted for 
                          permanent residence

    Sec. 245. (a)  * * *

           *       *       *       *       *       *       *

    (l)(1) If, in the opinion of the Attorney General, a 
nonimmigrant admitted into the United States under section 
101(a)(15)(T)--
            (A) has been physically present in the United 
        States for a continuous period of at least 3 years 
        since the date of such admission;
            (B) has, throughout such period, been a person of 
        good moral character;
            (C) has, during such period, complied with any 
        reasonable request for assistance in the investigation 
        or prosecution of severe forms of trafficking in 
        persons; and
            (D)(i) has a well-founded fear of retribution 
        involving the infliction of severe harm upon removal 
        from the United States; or
            (ii) would suffer extreme hardship in connection 
        with the victimization described in section 
        101(a)(15)(T)(i) upon removal from the United States;
the Attorney General may adjust the status of the alien (and 
the spouse, parents, married and unmarried sons and daughters 
of the alien if admitted under such section) to that of an 
alien lawfully admitted for permanent residence.
    (2) Paragraph (1) shall not apply to an alien admitted 
under section 101(a)(15)(T) who is inadmissible to the United 
States by reason of a ground that has not been waived under 
section 212, except that, if the Attorney General considers it 
to be in the national interest to do so, the Attorney General, 
in the Attorney General's discretion, may waive the application 
of--
            (A) paragraphs (1) and (4) of section 212(a); and
            (B) any other provision of such section (excluding 
        paragraphs (3), (10)(C), and (10(E)), if the activities 
        rendering the alien inadmissible under the provision 
        were caused by, or were incident to, the victimization 
        described in section 101(a)(15)(T)(i).
    (3) An alien shall be considered to have failed to maintain 
continuous physical presence in the United States for purposes 
of paragraph (1)(A) if the alien has departed from the United 
States for any period in excess of 90 days or for any periods 
in the aggregate exceeding 180 days.
    (4)(A) The total number of aliens whose status may be 
adjusted under paragraph (1) during any fiscal year may not 
exceed 5,000.
    (B) The numerical limitation of subparagraph (A) shall only 
apply to principal aliens and not to the spouses, sons, 
daughters, or parents of such aliens.
    (C) Aliens who are subject to the numerical limitation of 
subparagraph (A) shall have their status adjusted in the order 
in which applications are filed for such adjustment.
    (D) Upon the approval of adjustment of status under 
paragraph (1)--
            (i) the Attorney General shall record the alien's 
        lawful admission for permanent residence as of the date 
        of such approval; and
            (ii) the Secretary of State shall not be required 
        to reduce the number of immigrant visas authorized to 
        be issued under this Act for any fiscal year.

           *       *       *       *       *       *       *

                              ----------                              


TITLE 18, UNITED STATES CODE

           *       *       *       *       *       *       *


                    CHAPTER 77--PEONAGE AND SLAVERY

    Sec.
1581.  Peonage; obstructing enforcement.
     * * * * * * *
1589. Trafficking into involuntary servitude, peonage, or slavery-like 
          conditions.
1589A. Sex trafficking of children or by force, fraud, or coercion.
1590. Unlawful possession of documents in furtherance of trafficking 
          involuntary servitude, or peonage.
1591. Mandatory restitution.
1592. General provisions.

           *       *       *       *       *       *       *


Sec. 1581. Peonage; obstructing enforcement

    (a) Whoever holds or returns any person to a condition of 
peonage, or arrests any person with the intent of placing him 
in or returning him to a condition of peonage, shall be fined 
under this title or imprisoned not more than [10] 20 years, or 
both. If, in addition to the foregoing elements, death results 
from a violation of this section, or if such violation includes 
kidnaping or an attempt to kidnap, aggravated sexual abuse or 
the attempt to commit aggravated sexual abuse, or an attempt to 
kill, the defendant shall be fined under this title or 
imprisoned for any term of years or life, or both.

           *       *       *       *       *       *       *


Sec. 1583. Enticement into slavery

    Whoever kidnaps or carries away any other person, with the 
intent that such other person be sold into involuntary 
servitude, or held as a slave; or
    Whoever entices, persuades, or induces any other person to 
go on board any vessel or to any other place with the intent 
that he may be made or held as a slave, or sent out of the 
country to be so made or held--
    Shall be fined under this title or imprisoned not more than 
[10] 20 years, or both. If, in addition to the foregoing 
elements, death results from a violation of this section, or if 
such violation includes kidnaping or an attempt to kidnap, 
aggravated sexual abuse or the attempt to commit aggravated 
sexual abuse, or an attempt to kill, the defendant shall be 
fined under this title or imprisoned for any term of years or 
life, or both.

Sec. 1584. Sale into involuntary servitude

    Whoever knowingly and willfully holds to involuntary 
servitude or sells into any condition of involuntary servitude, 
any other person for any term, or brings within the United 
States any person so held, shall be fined under this title or 
imprisoned not more than [10] 20 years, or both. If, in 
addition to the foregoing elements, death results from a 
violation of this section, or if such violation includes 
kidnaping or an attempt to kidnap, aggravated sexual abuse or 
the attempt to commit aggravated sexual abuse, or an attempt to 
kill, the defendant shall be fined under this title or 
imprisoned for any term of years or life, or both.

           *       *       *       *       *       *       *


Sec. 1589. Trafficking into involuntary servitude, peonage, or slavery-
                    like conditions

    (a) Whoever recruits, harbors, provides, transports, 
employs, purchases, sells, or secures, by any means, any 
person, knowing or having reason to know that the person is or 
will be subjected to involuntary servitude or peonage or to 
slavery-like conditions as described in subsection (b) of this 
section, or in any way, financially or otherwise, knowingly 
benefits from, or makes use of, the labor or services of a 
person subjected to a condition of involuntary servitude or 
peonage, shall be fined under this title or imprisoned not more 
than 20 years, or both; and if, in addition to the foregoing 
elements, death results from an act committed in violation of 
this section, or if such act includes kidnapping or an attempt 
to kidnap, aggravated sexual abuse or the attempt to commit 
aggravated sexual abuse, or an attempt to kill, shall be fined 
under this title or imprisoned for any term of years or life, 
or both.
    (b) As used in this section, the term ``slavery-like 
conditions'' means that the labor or services of a person are 
obtained or maintained through any scheme or artifice to 
defraud, or by means of any plan or pattern, including but not 
limited to false and fraudulent pretense and 
misrepresentations, such that the person reasonably believes 
that if he did not perform the labor or services serious harm 
would be inflicted on himself or on another person.
    (c) This section does not apply to labor performed as a 
punishment for a crime whereof the party shall have been duly 
convicted.

Sec. 1589A. Sex trafficking of children or by force, fraud, or coercion

    (a) In General.--Whoever--
            (1) recruits, entices, harbors, purchases, sells, 
        transports, or transfers a person, or
            (2) owns, manages, operates, or shares in the 
        proceeds of an enterprise in which a person has been 
        recruited, enticed, harbored, purchased, sold, 
        transported, or transferred,
        knowing or having reason to know that the person will 
        be caused by force, fraud, or coercion to engage in a 
        commercial sex act, or that the person has not attained 
        the age of 18 years and will be caused or expected to 
        engage in a commercial sexual act, shall be punished as 
        provided in subsection (b).
    (b) Punishment.--The punishment for an offense under 
subsection (a) is--
            (1) if the offense was effected by fraud, force, or 
        coercion, or if the person transported had not attained 
        the age of 14 years at the time of such offense, by a 
        fine under this title or imprisonment for any term of 
        years or for life, or both; or
            (2) if the offense was not effected by fraud, 
        force, or coercion, and the person transported had 
        attained the age of 14 years but had not attained the 
        age of 18 years at the time of such offense, by a fine 
        under this title or imprisonment for not more than 20 
        years, or both.
    (c) Definition of Commercial Sexual Act.--In this section, 
the term ``commercial sexual act'' means any sexual act, on 
account of which anything of value is given to or received by 
any person, and--
            (1) which takes place in the United States;
            (2) which affects United States foreign commerce; 
        or
            (3) in which either the person caused or expected 
        to participate in the act or the person committing the 
        violation is a United States citizen or an alien 
        admitted for permanent residence in the United States.

Sec. 1590. Unlawful possession of documents in furtherance of 
                    trafficking, involuntary servitude, or peonage

    (a) Whoever destroys, conceals, removes, confiscates, or 
possesses any identification, passport, or other immigration 
documents, or any other documentation of another person--
            (1) in the course of, or under circumstances which 
        facilitate a violation of section 1581, 1583, 1584, 
        1589, or 1589A or a conspiracy or attempt to commit 
        such a violation; or
            (2) to conceal or impair the investigation or 
        prosecution of a violation of any section described in 
        paragraph (1); or
            (3) to prevent or restrict, without lawful 
        authority, the person's liberty to move or travel in 
        interstate or foreign commerce,
        shall be fined under this title or imprisoned for not 
        more than 5 years, or both.

Sec. 1591. Mandatory restitution

    (a) Notwithstanding sections 3663 or 3663A, and in addition 
to any other civil or criminal penalties authorized by law, the 
court shall order restitution for any offense under this 
chapter.
    (b)(1) The order of restitution under this section shall 
direct the defendant to pay the victim (through the appropriate 
court mechanism) the full amount of the victims losses, as 
determined by the court under paragraph (3) of this subsection.
    (2) An order of restitution under this section shall be 
issued and enforced in accordance with section 3664 in the same 
manner as an order under section 3663A.
    (3) As used in this subsection, the term ``full amount of 
the victim's losses'' has the same meaning as provide in 
section 2259(b)(3) and shall in addition include the greater of 
the gross income or value to the defendant of the victim's 
services or labor or the value of the victim's labor as 
guaranteed under the minimum wage and overtime guarantees of 
the Fair Labor Standards Act (29 U.S.C. 201, et seq.).
    (c) As used in this section, the term ``victim'' means the 
individual harmed as a result of a crime under this chapter, 
including, in the case of a victim who is under 18 years of 
age, incompetent, incapacitated, or deceased, the legal 
guardian of the victim or a representative of the victim's 
estate, or another family member, or any other person appointed 
as suitable by the court, but in no event shall the defendant 
be named such representative or guardian.

Sec. 1592. General provisions

    (a) In a prosecution under sections 1581, 1583, 1584, or 
1589, a condition of involuntary servitude or peonage may be 
established by proof that the defendant obtained or maintained 
the labor or service of any person--
            (1) by the use, or threatened use, of force, 
        violence, physical restraint, or physical injury, or by 
        extortion or the abuse of threatened abuse of law or 
        the legal process;
            (2) through representations made to any person that 
        physical harm may occur to that person, or to another, 
        in an effort to wrongfully obtain or maintain the labor 
        or services of that person; or
            (3) by the use of fraud, deceit, or 
        misrepresentation toward any person in an effort to 
        wrongfully obtain or maintain the labor or services of 
        that person, where the person is a minor, one who is 
        mentally disabled, or one who is otherwise particularly 
        susceptible to coercion.
    (b) An attempt or conspiracy to violate sections 1581, 
1583, 1584, 1589, or 1589A shall be punishable in the same 
manner as a completed violation of each of these sections, 
respectively.
    (c)(1) The court, in imposing sentence on any person 
convicted of a violation of this chapter, shall order, in 
addition to any other sentence imposed and irrespective of any 
provision of State law, that such person shall forfeit to the 
United States--
            (A) such person's interest in any property, real or 
        personal, that was used or intended to be used to 
        commit or to facilitate the commission of such 
        violation; and
            (B) any property, real or personal, constituting or 
        derived from, any proceeds that such person obtained, 
        directly or indirectly, as a result of such violation.
    (2) The criminal forfeiture of property under this 
subsection, any seizure and disposition thereof, and any 
administrative or judicial proceeding in relation thereto, 
shall be governed by the provisions of section 413 of the 
Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 
U.S.C. 853), except subsection (d) of that section.
    (d)(1) The following shall be subject to forfeiture to the 
United States and no property right shall exist in them--
            (A) any property, real or personal, used or 
        intended to be used to commit or to facilitate the 
        commission of any violation of this chapter; and
            (B) any property, real or personal, which 
        constitutes or is derived from proceeds traceable to 
        any violation of this chapter.
    (2) The provisions of chapter 46 of this title relating to 
civil forfeitures shall extend to any seizure or civil 
forfeiture under this subsection.
    (f) Witness Protection.--Any violation of this chapter 
shall be considered an organized criminal activity or other 
serious offense for the purposes of application of chapter 224 
(relating to witness protection).

           *       *       *       *       *       *       *


CHAPTER 96--RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS

           *       *       *       *       *       *       *


Sec. 1961. Definitions

    As used in this chapter--
            (1) ``racketeering activity'' means (A) any act or 
        threat involving murder, kidnapping, gambling, arson, 
        robbery, bribery, extortion, dealing in obscene matter, 
        or dealing in a controlled substance or listed chemical 
        (as defined in section 102 of the Controlled Substances 
        Act), which is chargeable under State law and 
        punishable by imprisonment for more than one year; (B) 
        any act which is indictable under any of the following 
        provisions of title 18, United States Code: Section 201 
        (relating to bribery), section 224 (relating to sports 
        bribery), sections 471, 472, and 473 (relating to 
        counterfeiting), section 659 (relating to theft from 
        interstate shipment) if the act indictable under 
        section 659 is felonious, section 664 (relating to 
        embezzlement from pension and welfare funds), sections 
        891-894 (relating to extortionate credit transactions), 
        section 1028 (relating to fraud and related activity in 
        connection with identification documents), section 1029 
        (relating to fraud and related activity in connection 
        with access devices), section 1084 (relating to the 
        transmission of gambling information), section 1341 
        (relating to mail fraud), section 1343 (relating to 
        wire fraud), section 1344 (relating to financial 
        institution fraud), section 1425 (relating to the 
        procurement of citizenship or nationalization 
        unlawfully), section 1426 (relating to the reproduction 
        of naturalization or citizenship papers), section 1427 
        (relating to the sale of naturalization or citizenship 
        papers), sections 1461-1465 (relating to obscene 
        matter), section 1503 (relating to obstruction of 
        justice), section 1510 (relating to obstruction of 
        criminal investigations), section 1511 (relating to the 
        obstruction of State or local law enforcement), section 
        1512 (relating to tampering with a witness, victim, or 
        an informant), section 1513 (relating to retaliating 
        against a witness, victim, or an informant), section 
        1542 (relating to false statement in application and 
        use of passport), section 1543 (relating to forgery or 
        false use of passport), section 1544 (relating to 
        misuse of passport), section 1546 (relating to fraud 
        and misuse of visas, permits, and other documents), 
        sections 1581-1588 (relating to peonage and slavery), 
        section 1951 (relating to interference with commerce, 
        robbery, or extortion), section 1952 (relating to 
        racketeering), section 1953 (relating to interstate 
        transportation of wagering paraphernalia), section 1954 
        (relating to unlawful welfare fund payments), section 
        1955 (relating to the prohibition of illegal gambling 
        businesses), section 1956 (relating to the laundering 
        of monetary instruments), section 1957 (relating to 
        engaging in monetary transactions in property derived 
        from specified unlawful activity), section 1958 
        (relating to use of interstate commerce facilities in 
        the commission of murder-for-hire), section 1589 
        (relating to trafficking into involuntary servitude, 
        peonage, or slavery-like conditions), section 1589A 
        (relating to sex trafficking of children or by force, 
        fraud, or coercion), sections 2251, 2251A, 2252, and 
        2260 (relating to sexual exploitation of children), 
        sections 2312 and 2313 (relating to interstate 
        transportation of stolen motor vehicles), sections 2314 
        and 2315 (relating to interstate transportation of 
        stolen property), section 2318 (relating to trafficking 
        in counterfeit labels for phonorecords, computer 
        programs or computer program documentation or packaging 
        and copies of motion pictures or other audiovisual 
        works), section 2319 (relating to criminal infringement 
        of a copyright), section 2319A (relating to 
        unauthorized fixation of and trafficking in sound 
        recordings and music videos of live musical 
        performances), section 2320 (relating to trafficking in 
        goods or services bearing counterfeit marks), section 
        2321 (relating to trafficking in certain motor vehicles 
        or motor vehicle parts), sections 2341-2346 (relating 
        to trafficking in contraband cigarettes), sections 
        2421-24 (relating to white slave traffic), (C) any act 
        which is indictable under title 29, United States Code, 
        section 186 (dealing with restrictions on payments and 
        loans to labor organizations) or section 501(c) 
        (relating to embezzlement from union funds), (D) any 
        offense involving fraud connected with a case under 
        title 11 (except a case under section 157 of this 
        title), fraud in the sale of securities, or the 
        felonious manufacture, importation, receiving, 
        concealment, buying, selling, or otherwise dealing in a 
        controlled substance or listed chemical (as defined in 
        section 102 of the Controlled Substances Act), 
        punishable under any law of the United States, (E) any 
        act which is indictable under the Currency and Foreign 
        Transactions Reporting Act, or (F) any act which is 
        indictable under the Immigration and Nationality Act, 
        section 274 (relating to bringing in and harboring 
        certain aliens), section 277 (relating to aiding or 
        assisting certain aliens to enter the United States), 
        or section 278 (relating to importation of alien for 
        immoral purpose) if the act indictable under such 
        section of such Act was committed for the purpose of 
        financial gain.

           *       *       *       *       *       *       *

                             Minority Views

    We believe the Trafficking Victims Protection Act of 1999,
H.R. 3244 as reported by the Judiciary Committee, represents a 
modest improvement over current law with regard to the 
treatment of victims of sex trafficking and forced servitude. 
However, the committee's product falls well short of the 
protections it could have provided to the victims of these 
horrific acts, particularly compared to the version of this 
legislation originally introduced by Rep. Chris Smith (R-NJ) 
and Sam Gejdenson (D-CT).
    As reported by the Judiciary Committee, the immigration 
provisions of the legislation create a new nonimmigrant visa 
for persons who are victims of severe forms of sex trafficking 
and forced servitude, but severely restrict the availability of 
that visa. Namely, the trafficking victim must establish that 
they: (1) are physically present in the United States or at a 
U.S. port of entry and that such presence is in connection with 
the severe form of trafficking in persons; (2) are under 15 
years old, or that they were forced or coerced to participate 
in commercial sex or involuntary servitude to which they did 
not ``voluntarily agree''; and (3) have a well-founded fear of 
retribution upon removal from the United States resulting from 
the infliction of severe harm, or would suffer extreme hardship 
in connection with the trafficking upon removal from the United 
States.\1\ In connection with the issuance of such visas, the 
committee-reported bill also limits the Attorney General's 
discretion to waive certain grounds of inadmissability for 
victims of trafficking unless the ground was caused by, or 
incident to, the trafficking of the victim.\2\
---------------------------------------------------------------------------
    \1\ H.R. 3244, 106th Cong. Sec. 7(f)(1) (Apr. 4, 2000). In 
addition, even if the conditions for the non-immigrant visa are 
established, the committee-reported bill limits the ability of 
trafficking victims to adjust their status to lawful permanent resident 
status to persons who can establish that they: (1) are physically 
present in the United States for a continuous period of 3 years since 
the date of admission; (2) are a person of good moral character 
throughout such period; (3) have complied with any reasonable request 
for assistance in the investigation of trafficking; and
(4) either have a well-founded fear of retribution upon removal from 
the United States resulting from the infliction of severe harm, or 
would suffer extreme hardship in connection with the trafficking upon 
removal from the United States. Id. at Sec. 7(f)(4).
    \2\ Id. at Sec. 7(f)(3). The Attorney General may waive in any case 
the grounds of inadmissability for health-related reasons or the 
likelihood of becoming a public charge. The Attorney General may waive 
the remaining applicable inadmissability grounds only if caused by, or 
incident to, the trafficking of the victim. Id. at Sec. 7(f)(3). This 
restriction is equally true for persons applying for adjustment of 
status. Id. at Sec. 7(f)(4).
---------------------------------------------------------------------------
    To the extent a visa is issued for a victim of trafficking, 
the committee-reported bill goes on to impose numerous 
additional restrictions on victims. The Majority requires that 
``extreme hardship'' be shown in order for the victim to be 
reunited with their spouse, denies non-minor victims any 
ability to be reunited with their parents and requires victims 
who are minors to establish ``extreme hardship'' before they 
can be reunited with their parents.\3\ Finally, the committee 
reported bill only permits 5,000 victims a year to receive 
nonimmigrant status, even if a greater number meet the 
applicable criteria.\4\
---------------------------------------------------------------------------
    \3\ Id. at Sec. 7(f)(1).
    \4\ Id. at Sec. 7(f)(2). The bill also caps at 5,000 the number of 
victims a year who are eligible to adjust their status to that of a 
lawful permanent resident. Id. at Sec. 7(f)(4).
---------------------------------------------------------------------------
    We offer these Minority views, because we believe that the 
restrictions imposed under the committee-reported bill are too 
harsh, and are likely to unfairly and unnecessarily prevent 
thousands of victims of sex trafficking and involuntary 
servitude from being able to obtain relief under our 
immigration laws. This is hardly consistent with our nation's 
long standing commitment to protecting victims and their 
families. A summary of our concerns \5\ follows:
---------------------------------------------------------------------------
    \5\ In addition to the immigration-related concerns described 
herein, we would also note that the legislation contains certain 
criminal provisions which may make future enforcement against the 
perpetrators of trafficking more difficult. More specifically, language 
related to ``slave-like conditions'' in Section 1589(a) requires review 
because the word ``slavery'' is ill-defined, vague, and could result in 
an additional element of proof in jury instructions. The term 
``extortion'' in Section 1592(a)(1) could prevent the Department of 
Justice from bringing separate charges under the extortion statute and 
create a double jeopardy problem. In addition, Section 11 requires the 
Secretary of State to publish a list of individuals allegedly involved 
in trafficking and who will be subject to sanctions. Concerns have been 
expressed that persons being considered for inclusion on such a list 
will not have been granted any opportunity to be heard before appearing 
on the list.
---------------------------------------------------------------------------
I. The Majority Imposed Unfair Criteria on Eligibility of Visas for 
        Victims of Sex Trafficking and Involuntary Servitude
    The committee-reported bill incorporated several 
significant restrictions on the availability of visas for 
victims of sex trafficking and involuntary servitude. Among 
other things, the Majority requires that victims establish that 
their presence is a ``direct result of trafficking;'' that they 
did not ``voluntarily agree'' to such trafficking; that they 
have a ``a well-founded fear of retribution involving the 
infliction of severe harm upon removal from the United States'' 
or ``would suffer extreme hardship in connection with the 
trafficking upon removal from the United States;'' and limits 
the Attorney General's authority to waive grounds of 
inadmissability for trafficking victims. Each one of these 
requirements represents a marked departure from the spirit and 
text of the introduced version of the legislation, and each has 
the potential to prevent real victims of sex trafficking and 
involuntary servitude from receiving refuge from their 
tormentors.
            Requirement that victims establish that they are in the 
                    U.S. as a direct result of trafficking
    The requirement that victims may only obtain visas if their 
presence in the United States is a direct result of trafficking 
does not provide protection for victims of severe forms of 
trafficking who are physically present in the United States, 
but located here subsequent to the initial trafficking event. 
For example, a child who is sold into sex slavery at a house of 
prostitution in Mexico or Canada would not be eligible for 
relief if she escaped and managed to reach a United States 
border. In our view, the threshold decision of eligibility 
should depend on whether the victim requires refuge in the 
United States rather than on the irrelevant fact of whether the 
person was initially transported here in connection with the 
trafficking.
            Requirement that victims establish that they did not 
                    ``voluntarily agree'' to the trafficking 
                    arrangement
    The requirement that the victim not have voluntarily agreed 
to any trafficking arrangement is also potentially problematic. 
The problem is that the term ``voluntary'' could sweep in 
victims who agreed to a particular improper arrangement, but 
not to the full extent of sex trafficking or involuntary 
servitude ultimately imposed upon them. For example, under the 
committee-reported bill--to cite a real life horror story--
consider a case where 5 Latvian women voluntarily agree to 
serve as exotic dancers in Chicago in exchange for a salary of 
$60,000 per year. When they arrive their passports are taken, 
and their lives and their families' lives are threatened if 
they don't agree to involuntary servitude.\6\ Under the 
committee-reported bill, we are concerned the voluntary 
requirement could prevent victims of this type of arrangement 
from receiving visas.
---------------------------------------------------------------------------
    \6\ ``Man Pleads Guilty to Enslaving Latvian Strippers,'' 
Associated Press (Dec. 4, 1999).
---------------------------------------------------------------------------
            Requirement that victims establish that they have a ``well 
                    founded fear of retribution'' or that they ``would 
                    suffer extreme hardship''
    We also cannot support the committee's inclusion of the 
burdensome requirement that trafficking victims have a ``a 
well-founded fear of retribution involving the infliction of 
severe harm upon removal from the United States'' or ``would 
suffer extreme hardship in connection with the trafficking upon 
removal from the United States'' in order to obtain immigration 
relief.
    With regard to the ``fear of retribution'' standard, the 
bill does not make clear what acts constitute a well-founded 
fear of retribution involving the infliction of severe harm. 
For example, a trafficker likely would sell a child into sex 
slavery a second time if given the opportunity.\7\ However, 
such action would be for commercial gain rather than to punish 
the child. Under the committee-reported legislation it is not 
clear that such punishment would fall within the definition of 
``retribution.''
---------------------------------------------------------------------------
    \7\ ``For the traffickers, it is primarily about high profits and 
low risk. The trafficking industry is one of the fastest growing and 
most lucrative criminal enterprises in the world.'' Testimony of 
Theresa Loar, Director, President's Interagency Council on Women and 
Senior Coordinator for International Women's Issues at the U.S. 
Department of State, Hearing Before the Subcommittee on Internal 
Operations and Human Rights of the Committee on International 
Relations, Appx. p. 78, Serial No. 106-66, 106th Cong., 1st sess. 
(Sept. 14, 1999).
---------------------------------------------------------------------------
    The alternative to the retribution standard is the 
requirement that the trafficking victim show that she ``would 
suffer extreme hardship in connection with the trafficking upon 
removal from the United States.'' The Majority repeatedly noted 
that in immigration law the ``extreme hardship'' standard is 
not difficult to meet. Unfortunately, they cited no evidence to 
support this proposition and the plain meaning of the standard 
would suggest otherwise. The legislative history of the 
``extreme hardship'' requirement indicates that it is 
inappropriate in the context of granting relief for trafficking 
victims. The ``extreme hardship'' standard previously was an 
eligibility requirement for ``suspension of deportation'' 
available before IIRIRA was enacted in late 1996.\8\ The case 
law defined the concept of ``extreme hardship'' primarily in 
terms of the problems that could result from breaking the 
applicant's ties to the United States after having lived here 
for so many years.\9\ Such a standard is inappropriate in this 
bill because the victim may not have been in the United States 
for an extended period of time before the police need her 
assistance in an investigation. Further, in cases where the 
person is in involuntary servitude or confined against her 
will, she is unlikely to have established any ties to the 
United States to enable her to demonstrate extreme hardship.
---------------------------------------------------------------------------
    \8\ 8 U.S.C. Sec. 1254(a) (repealed, Pub.L. 104-208, Div. C, Title 
III, Sec. 308(b)(7), 1996). IIRIRA replaced suspension of deportation 
with a new form of relief known as ``cancellation of removal,'' which 
has the even more difficult standard of ``extremely unusual hardship'' 
to cancel a removal order against a foreign national. 8 U.S.C. 
Sec. 1229b(b)(1)(D).
    \9\ Matter of Anderson, 16 I&N Dec. 596 (BIA 1978).
---------------------------------------------------------------------------
    We believe that the asylum model--as suggested in the 
original Smith/Gejdenson bill--would be a far more appropriate 
standard for trafficking victims. The Attorney General may 
grant asylum when she determines that the person has a well-
founded fear of persecution if she returns to her home 
country.\10\ Similarly, we believe it would be more equitable 
if the victim of a severe form of trafficking could take refuge 
in the United States based on the possible consequences to the 
individual if she returns home.
---------------------------------------------------------------------------
    \10\ 8 U.S.C. Sec. 1158(b).
---------------------------------------------------------------------------
    At a bare minimum, we would urge reconsideration of the 
Jackson Lee (D-TX) amendment to eliminate the requirement that 
``extreme hardship'' be directly related to the trafficking. It 
would be unconscionable to send a person back to an abusive 
family member or employer who, while not directly involved in 
trafficking, was the cause of the person leaving home and 
eventually being trafficked.
            Requirement eliminating Attorney General discretion to 
                    waive grounds of inadmissability for deserving 
                    victims
    Finally, with regard to the threshold visa requirements, we 
also have serious concerns with the Majority limiting the 
Attorney General's authority to grant a waiver of grounds of 
inadmissability for the issuance of a visa. As noted above, 
under the legislation, the Attorney General's discretion to 
grant such relief is limited in most cases to situations when 
the need is closely associated with the trafficking itself. 
This restriction could result in grossly unfair results. For 
example, consider the case where a woman--who was the victim of 
sex trafficking--had previously sought to obtain an immigration 
benefit for her child while in the United States by lying about 
her immigration status. Under the committee-reported 
legislation, the woman would be inadmissible for making a 
misrepresentation to procure an immigration benefit.\11\ In our 
view, the Attorney General should have broader discretion to 
provide waivers for humanitarian purposes such as these.
---------------------------------------------------------------------------
    \11\ See 8 U.S.C. Sec. 1182(a)(6)(C).
---------------------------------------------------------------------------
II. The Majority Imposed Unfair Criteria on the Ability of Victims of 
        Sex Trafficking and Involuntary Servitude to be Reunited with 
        their Families
    We also oppose the restrictions the Majority imposed on the 
ability of victims of sex trafficking and involuntary servitude 
to be reunited with their spouses and parents. As noted above, 
the commit-

tee-reported substitute totally denies non-minor victims any 
ability

to be reunited in the U.S. with their parents, and also 
requires that

``extreme hardship'' be established before any victim may be 
re-

united with their spouse and before a victim who is a minor may 
be reunited with his parents.
    These restrictions are unduly harsh and unjustified.\12\ 
Given the horrific ordeal of sex trafficking and slavery that 
such victims have experienced, it is difficult for us to 
understand why the Majority would prevent them from reuniting 
with their parents or spouses. Surely a nation of immigrants 
such as ourselves can find it within our hearts to allow 
trafficking victims to be reunited with their families.
---------------------------------------------------------------------------
    \12\ Rep. Jackson Lee's amendment to remove the extreme hardship 
standard was rejected by the Majority.
---------------------------------------------------------------------------
III. The Annual Cap on Visas for Victims of Sex Trafficking and 
        Involuntary Servitude Imposed by the Majority is Arbitrary and 
        Unfair
    We also strongly object to the 5,000 per year cap on 
trafficking victim visas imposed by the Majority.\13\ The 
Majority was not able to cite a single shred of evidence--in 
the hearing or the markup--supporting such a low cap.
---------------------------------------------------------------------------
    \13\ A corollary annual cap applies for victims seeking to adjust 
their status to lawful permanent residents and creates similar 
concerns.
---------------------------------------------------------------------------
    It is an unfortunate fact of life that we can never predict 
how many people will be the victim of trafficking, how serious 
their plights will be, or how many of them will seek refuge in 
our country. Congress has granted similar discretion to 
increase the refugee caps,\14\ and there are no caps for asylum 
candidates. In our view it is beneath this country to suggest 
that we have room for 5,000 victims of sex trafficking and 
slavery, but not for the 5001st victim.
---------------------------------------------------------------------------
    \14\ In cases where an unforeseen emergency refugee situation 
exists, the President has the discretion, after appropriate 
consultation, to exceed the designated ceiling on the admission of 
refugees to assist refugees confronting the emergency. 8 U.S.C. 
Sec. 1157(b).
---------------------------------------------------------------------------
    As a matter of fact, the only evidence we have been able to 
find suggests that the cap imposed by the Majority is far too 
low.\15\ This evidence comes in the form of a recent exhaustive 
report by the Central Intelligence Agency, ``International 
Trafficking in Women to the United States: A Contemporary 
Manifestation of Slavery,'' concluding that as many as 50,000 
women and children a year are brought to the United States to 
work as prostitutes, abused laborers or servants.\16\ Even if 
this report overestimates the number of trafficking victims by 
a factor of 7 or 8, the Majority will have set the cap too low 
and denied thousands of victims of trafficking any right to 
remain in this country.
---------------------------------------------------------------------------
    \15\ The Majority rejected an amendment offered by Rep. Conyers (D-
MI) which would have given the Attorney General the authority to exceed 
these caps for humanitarian reasons.
    \16\ New York Times, ``Vast Trade in Forced Labor Portrayed in CIA 
Report,'' Joel Brinkley (April 2, 2000).
---------------------------------------------------------------------------

                               Conclusion

    We agree with Gary A. Haugen, the President of the 
International Justice Mission, who testified:

        [T]he coercive nature of the sex trade is powerfully 
        masked behind dark, padlocked doors and hidden 
        corridors. The deprivations of food, the beating with 
        electrical wires, metal rods and leather straps, the 
        cigarette burns, and the brutal rapes are conducted in 
        the hidden rooms and upper floors where, if you can get 
        to them, you can find women and children locked in 
        literal cages.\17\
---------------------------------------------------------------------------
    \17\ Testimony of Gary A. Haugen, President of the International 
Justice Mission, Hearing Before the Subcommittee on Internal Operations 
and Human Rights of the Committee on International Relations, Appx. p. 
92, Serial No. 106-66, 106th Cong., 1st sess. (Sept. 14, 1999).

    We also agree with the sponsor of the legislation, Rep. 
Chris Smith, when he testified that the trafficking of women 
and children is ``one of the modern world's most serious and 
most widespread human rights problems.'' \18\
---------------------------------------------------------------------------
    \18\ Statement of Rep. Chris Smith, ``Trafficking of Women and 
Children in the International Sex Trade,'' Hearing Before the 
Subcommittee on Internal Operations and Human Rights of the Committee 
on International Relations, Appx. p. 56, Serial No. 106-66, 106th 
Cong., 1st sess. (Sept. 14, 1999).
---------------------------------------------------------------------------
    Unfortunately, the good intentions of Mr. Haugen and Rep. 
Chris Smith have been severely diluted by the immigration-
related provisions reported by the Judiciary Committee. Reps. 
Lamar Smith
(R-TX) and Charles Canady (R-FL) reached a so-called 
``compromise'' on the morning of the mark-up without any input 
from, or appreciable advance notice to, the Minority. It 
appears that the bill was weakened due to concerns that some 
individuals might receive a benefit through fraud. We deem it 
highly unlikely that anyone would seek relief as a victim of 
sex trafficking or involuntary servitude unless the facts 
supported such a claim. Moreover, the immigration laws have a 
well established framework for punishing those who abuse the 
system through fraud and there is no reason to superimpose a 
new set of immigration restrictions with regard to trafficking.
    Our committee and our nation can do better than giving the 
victims of sex trafficking and slavery immigration benefits on 
the one hand, while denying many of them benefits with the 
other hand through unnecessarily narrow requirements and 
conditions. We owe these brave individuals and their families a 
far more compassionate piece of legislation.

                                   John Conyers, Jr.
                                   Barney Frank.
                                   Howard L. Berman.
                                   Jerrold Nadler.
                                   Robert C. Scott.
                                   Melvin L. Watt.
                                   Sheila Jackson Lee.
                                   Maxine Waters.
                                   Martin T. Meehan.
                                   William D. Delahunt.
                                   Steven R. Rothman.
                                   Tammy Baldwin.
                                   Anthony D. Weiner.

                                

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