SB2741

SECTION 1. The legislature finds that sex trafficking is a form of modern-day slavery. According to a 2018 report published by Arizona State University, it is estimated that one in every eleven male residents of Hawaii are online sex shoppers. When nonresidents are included, the report estimated that 74,362 sex buyers are potentially active in the islands. Moreover, Imua Alliance, a local victim service provider for survivors of sexual servitude, estimates that one hundred fifty establishments participate in the commercial sex trade in Hawaii, placing them at a high risk for sex trafficking.

The legislature further finds that Hawaii does not have a dedicated shelter for victims of sex trafficking. This lack of an emergency shelter impedes the State's effectiveness in responding to sexual exploitation by preventing government agencies and victim service providers from establishing a coordinated continuum of care and protection for victims in a centralized location.

The purpose of this Act is to:

(1) Authorize the department of human services to establish or contract with a victim service provider to operate and manage a sex trafficking emergency shelter, subject to available funding; and

(2) Exempt compensation received by a victim service provider for operating a sex trafficking emergency shelter from the general excise tax.

SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§237- Exemption for victim service providers of sex trafficking emergency shelters. There shall be exempted from the measure of all taxes imposed by this chapter any compensation received by a victim service provider for services rendered to sex trafficking victims at a sex trafficking emergency shelter pursuant to section 346- ."

SECTION 3. Chapter 346, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§346- Sex trafficking emergency shelter. (a) To the extent that funding is available, the department may establish or contract with a victim service provider to operate and manage a sex trafficking emergency shelter.

(b) To the extent that appropriations are made available, the sex trafficking emergency shelter shall provide housing and appropriate service to victims granted admittance to the shelter.

(c) The operator of the sex trafficking emergency shelter, in consultation with any appropriate governmental agency or nongovernmental organization, shall be responsible for determining:

(1) If a victim is eligible for residence at the sex trafficking emergency shelter, including the degree of need and course of treatment for each victim; and

(2) When a victim is no longer eligible for residence at the sex trafficking emergency shelter; provided that the term of residence for any victim shall not exceed thirty days.

(d) Any person who enters or remains in or upon the premises of any sex trafficking emergency shelter authorized by this section, after being requested to leave by the department or its designee, victim service provider, or a police officer, shall be guilty of a misdemeanor.

(e) Any compensation received by a victim service provider pursuant to this section for operating or managing a sex trafficking emergency shelter shall be exempt from taxation under chapter 237.

(f) Any county mayor, by executive order, may exempt the operator of a sex trafficking emergency shelter established pursuant to this section from real property taxes, water and sewer development fees, rates collected for water supplied to consumers and for the use of sewers, and any other county taxes, charges, or fees; provided that any county may enact ordinances to regulate the exemptions authorized by this section.

(g) Any victim service provider contracted pursuant to this section shall submit a financial report to the department each year that the contract is in effect. The report shall include recommendations about improving services for victims. Failure to provide a financial report shall be grounds for termination of the contract.

(h) This section shall not prohibit the department from establishing additional programs for sex trafficking victims.

(i) As used in this section:

"Sex trafficking emergency shelter" means a facility that provides emergency services for sex trafficking victims, including but not limited to housing, rehabilitative, medical, mental health, therapeutic, legal, or diagnostic services.

"Victim" means:

(1) A person under the age of eighteen who engages in prostitution pursuant to section 712-1200(1)(a);

(2) A victim of sex trafficking pursuant to section 712-1202;

(3) A victim of promoting prostitution pursuant to section 712-1203;

(4) A victim of a severe form of trafficking or a victim of trafficking under title 22 United States Code section 7102 et seq.; or

(5) A victim of the crime of sex trafficking of children under title 18 United States Code section 1591.

"Victim service provider" means any nonprofit or nongovernmental organization that provides social services to sex trafficking victims, including but not limited to housing, rehabilitation, education, vocational, medical, mental health, or substance abuse treatment programs."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2741
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII