Page 1, between lines 1 and 2, insert:

"Section 1. Title 9, chapter 4, article 8, Arizona Revised Statutes, is amended by adding section 9-500.33, to read:

START_STATUTE9-500.10. Escort and escort agency advertising requirements; civil penalty; definitions

A. AN ESCORT OR ESCORT AGENCY THAT IS LICENSED BY A MUNICIPALITY OF THIS STATE SHALL NOT ADVERTISE ESCORT SERVICES UNLESS THE ADVERTISEMENT INCLUDES THE LICENSE NUMBER OF THE ESCORT OR ESCORT AGENCY.

B. AN ESCORT OR ESCORT AGENCY SHALL RETAIN ON FILE, FOR AT LEAST ONE YEAR, PROOF of the age of ANY ESCORT WHOSE SERVICES ARE OFFERED IN ANY ADVERTISEMENT OF ESCORT SERVICES.

C. AN ESCORT OR ESCORT AGENCY THAT VIOLATES THIS SECTION is subject to A CIVIL PENALTY OF:

1. FIVE HUNDRED DOLLARS FOR A FIRST violation.

2. ONE THOUSAND FIVE HUNDRED DOLLARS FOR A SECOND violation.

3. FIVE THOUSAND DOLLARS FOR a third or SUBSEQUENT violation.

D. THis STATE OR A POLITICAL SUBDIVISION of this state MAY BRING AN ACTION TO ENFORCE THIS SECTION.

E. THE COURT SHALL DEPOSIT ANY CIVIL PENALTIES COLLECTED PURSUANT TO SUBSEcTION C OF THIS SECTION INTO THE HUMAN TRAFFICKING VICTIM ASSISTANCE FUND ESTABLISHED by SECTION 41-113.

F. IT IS AN AFFIRMATIVE DEFENSE IN A CIVIL ACTION FOR A FIRST violation of SUBSECTION A OF THIS SECTION THAT THE ESCORT OR ESCORT AGENCY POSSESSED A VALID LICENSE AT THE TIME THE ADVERTISEMENT WAS PUBLISHED.

G. IT IS AN AFFIRMATIVE DEFENSE IN A CIVIL ACTION for a violation of SUBSECTION B OF THIS SECTION THAT THE ESCORT WHOSE SERVICES WERE OFFERED IN AN ADVERTISEMENT FOR ESCORT SERVICES WAS EIGHTEEN YEARS OF AGE OR OLDER AT THE TIME THE ADVERTISEMENT WAS PUBLISHED.

H. FOR THE PURPOSES OF THIS SECTION:

1. "ADVERTISEMENT" MEANS ANY MESSAGE IN ANY MEDIUM THAT OFFERS OR SOLICITS ANY PERSON TO RETAIN THE SERVICES OF THE ESCORT OR ESCORT AGENCY DEPICTED IN THE ADVERTISEMENT.

2. "ESCORT" HAS THE SAME MEANING PRESCRIBED IN SECTION 13-1422.

3. "ESCORT AGENCY" HAS THE SAME MEANING PRESCRIBED IN SECTION 13‑1422."

Renumber to conform

Page 10, between lines 33 and 34, insert:

"Sec. 4. Section 13-2314.01, Arizona Revised Statutes, is amended to read:

START_STATUTE13-2314.01. Anti-racketeering revolving fund; use of fund; reports

A. The anti‑racketeering revolving fund is established. The attorney general shall administer the fund under the conditions and for the purposes provided by this section. Monies in the fund are exempt from the lapsing provisions of section 35‑190.

B. Any prosecution and investigation costs, including attorney fees, recovered for the state by the attorney general as a result of enforcement of civil and criminal statutes pertaining to any offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 or section 13‑2312, whether by final judgment, settlement or otherwise, shall be deposited in the fund established by this section.

C. Any monies received by any department or agency of this state or any political subdivision of this state from any department or agency of the United States or another state as a result of participation in any investigation or prosecution, whether by final judgment, settlement or otherwise, shall be deposited in the fund established by this section or, if the recipient is a political subdivision of this state, may be deposited in the fund established by section 13‑2314.03.

D. Any monies obtained as a result of a forfeiture by any department or agency of this state under this title or under federal law shall be deposited in the fund established by this section. Any monies or other property obtained as a result of a forfeiture by any political subdivision of this state or the federal government may be deposited in the fund established by this section. Monies deposited in the fund pursuant to this section or section 13‑4315 shall accrue interest and shall be held for the benefit of the agency or agencies responsible for the seizure or forfeiture to the extent of their contribution. Except as provided in subsections F and G of this section, the monies and interest shall be distributed within thirty days of application to the agency or agencies responsible for the seizure or forfeiture. Monies in the fund used by the attorney general for capital projects in excess of one million dollars are subject to review by the joint committee on capital review.

E. Monies in the fund may be used for the following:

1. The funding of gang prevention programs, substance abuse prevention programs, substance abuse education programs, programs that provide assistance to victims of a criminal offense that is listed in section 13-2301 and witness protection pursuant to section 41‑196 or for any purpose permitted by federal law relating to the disposition of any property that is transferred to a law enforcement agency.

2. The investigation and prosecution of any offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 or section 13‑2312, including civil enforcement.

3. The payment of the relocation expenses of any law enforcement officer and the officer's immediate family if the law enforcement officer is the victim of a bona fide threat that occurred because of the law enforcement officer's duties.

F. On or before January 15, April 15, July 15 and October 15 of each year, each department or agency of this state receiving monies pursuant to this section or section 13‑2314.03 or 13‑4315 or from any department or agency of the United States or another state as a result of participation in any investigation or prosecution shall file with the attorney general a report for the previous calendar quarter. The report shall be in a form that is prescribed by the Arizona criminal justice commission and approved by the director of the joint legislative budget committee. The report shall set forth the sources of all monies and all expenditures. The report shall not include any identifying information about specific investigations. If a department or agency of this state fails to file a report within forty‑five days after the report is due and there is no good cause as determined by the Arizona criminal justice commission, the attorney general shall make no expenditures from the fund for the benefit of the department or agency until the report is filed. The attorney general is responsible for collecting all reports from departments and agencies of this state and transmitting the reports to the Arizona criminal justice commission at the time that the report required pursuant to subsection G of this section is submitted.

G. On or before January 25, April 25, July 25 and October 25 of each year, the attorney general shall file with the Arizona criminal justice commission a report for the previous calendar quarter. The report shall be in a form that is prescribed by the Arizona criminal justice commission and approved by the director of the joint legislative budget committee. The report shall set forth the sources of all monies and all expenditures. The report shall not include any identifying information about specific investigations. If the attorney general fails to file a report within sixty days after the report is due and there is no good cause as determined by the Arizona criminal justice commission, the attorney general shall make no expenditures from the fund for the benefit of the attorney general until the report is filed. If a political subdivision of this state fails to file a report with the county attorney pursuant to section 13‑2314.03 within forty‑five days after the report is due and there is no good cause as determined by the Arizona criminal justice commission, the attorney general shall make no expenditures from the fund for the benefit of the political subdivision until the report is filed.

H. On or before September 30 of each year, the Arizona criminal justice commission shall compile the attorney general report and the reports of all departments and agencies of this state into a single comprehensive report and shall submit a copy of the report to the governor, the director of the department of administration, the president of the senate, the speaker of the house of representatives, the director of the joint legislative budget committee and the secretary of state. END_STATUTE

Sec. 5. Section 13-2314.03, Arizona Revised Statutes, is amended to read:

START_STATUTE13-2314.03. County anti-racketeering revolving fund; use of fund; reports

A. The board of supervisors of a county shall establish a county anti‑racketeering revolving fund administered by the county attorney under the conditions and for the purposes provided by this section.

B. Any prosecution and investigation costs, including attorney fees, recovered for the county as a result of enforcement of civil and criminal statutes pertaining to any offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 or section 13‑2312, whether by final judgment, settlement or otherwise, shall be deposited in the fund established by the board of supervisors.

D. Any monies obtained as a result of a forfeiture by the county attorney under this title or under federal law shall be deposited in the fund established by this section. Any monies or other property obtained as a result of a forfeiture by any political subdivision of this state or the federal government may be deposited in the fund established by this section or in the fund established by section 13‑2314.01. Monies deposited in the fund pursuant to this section or section 13‑4315 shall accrue interest and shall be held for the benefit of the agency or agencies responsible for the seizure or forfeiture to the extent of their contribution. Except as provided in subsections F and G of this section, the monies and interest shall be distributed to the agency or agencies responsible for the seizure or forfeiture within thirty days of application.

E. Monies in the fund may be used for the funding of gang prevention programs, substance abuse prevention programs, substance abuse education programs, programs that provide assistance to victims of a criminal offense that is listed in section 13-2301 and witness protection pursuant to section 11‑536 or for any purpose permitted by federal law relating to the disposition of any property that is transferred to a law enforcement agency. Monies in the fund may be used for the investigation and prosecution of any offense included in the definition of racketeering in section 13‑2301, subsection D, paragraph 4 or section 13‑2312, including civil enforcement.

F. On or before January 25, April 25, July 25 and October 25 of each year, the county attorney shall cause to be filed with the Arizona criminal justice commission a report for the previous calendar quarter. The report shall be in a form that is prescribed by the Arizona criminal justice commission and approved by the director of the joint legislative budget committee. The report shall set forth the sources of all monies and all expenditures. The report shall not include any identifying information about specific investigations. If the county attorney fails to file a report within sixty days after it is due and there is no good cause as determined by the Arizona criminal justice commission, the county attorney shall make no expenditures from the fund for the benefit of the county attorney until the report is filed.

G. On or before January 15, April 15, July 15 and October 15 of each year, each political subdivision of this state receiving monies pursuant to this section or section 13‑2314.01 or 13‑4315 or from any department or agency of the United States or another state as a result of participating in any investigation or prosecution shall cause to be filed with the county attorney of the county in which the political subdivision is located a report for the previous calendar quarter. The report shall be in a form that is prescribed by the Arizona criminal justice commission and approved by the director of the joint legislative budget committee. The report shall set forth the sources of all monies and all expenditures. The report shall not include any identifying information about specific investigations. If a political subdivision of this state fails to file a report within forty‑five days after the report is due and there is no good cause as determined by the Arizona criminal justice commission, the county attorney shall make no expenditures from the fund for the benefit of the political subdivision until the report is filed. The county attorney shall be responsible for collecting all reports from political subdivisions within that county and transmitting the reports to the Arizona criminal justice commission at the time that the county report required pursuant to subsection F of this section is submitted.

H. On or before September 30 of each year, the Arizona criminal justice commission shall compile all county attorney reports into a single comprehensive report and all political subdivision reports into a single comprehensive report and submit a copy of each comprehensive report to the governor, the president of the senate, the speaker of the house of representatives, the director of the joint legislative budget committee and the secretary of state. END_STATUTE

Sec. 6. Section 13-3209, Arizona Revised Statutes, is amended to read:

END_STATUTE13-3209. Pandering; definitions; methods; classification

A person is guilty of a class 5 felony who knowingly:

1. Places any person in the charge or custody of any other person for purposes of prostitution.

2. Places any person in a house of prostitution with the intent that such person lead a life of prostitution become a prostitute or engage in an act of prostitution.

3. Compels, induces or encourages any person to reside with that person, or with any other person, for the purpose of prostitution.

4. Compels, induces or encourages any person to lead a life of prostitution become a prostitute or engage in an act of prostitution."

Renumber to conform

Page 13, after line 31, insert:

"Sec. 9. Section 13-3551, Arizona Revised Statutes, is amended to read:

START_STATUTE13-3551. Definitions

In this chapter, unless the context otherwise requires:

1. "advertising" or "advertisement" means any message in any medium that offers or solicits any person to engage in sexual conduct in this state.

1. 2. "Communication service provider" has the same meaning prescribed in section 13‑3001.

2. 3. "Computer" has the same meaning prescribed in section 13‑2301, subsection E.

3. 4. "Computer system" has the same meaning prescribed in section 13‑2301, subsection E.

4. 5. "Exploitive exhibition" means the actual or simulated exhibition of the genitals or pubic or rectal areas of any person for the purpose of sexual stimulation of the viewer.

5. 6. "Minor" means a person or persons who were under eighteen years of age at the time a visual depiction was created, adapted or modified.

6. 7. "Network" has the same meaning prescribed in section 13‑2301, subsection E.

7. 8. "Producing" means financing, directing, manufacturing, issuing, publishing or advertising for pecuniary gain.

8. 9. "Remote computing service" has the same meaning prescribed in section 13‑3001.

9. 10. "Sexual conduct" means actual or simulated:

(a) Sexual intercourse, including genital‑genital, oral‑genital, anal‑genital or oral‑anal, whether between persons of the same or opposite sex.

(b) Penetration of the vagina or rectum by any object except when done as part of a recognized medical procedure.

(d) Masturbation, for the purpose of sexual stimulation of the viewer.

(e) Sadomasochistic abuse for the purpose of sexual stimulation of the viewer.

(f) Defecation or urination for the purpose of sexual stimulation of the viewer.

10. 11. "Simulated" means any depicting of the genitals or rectal areas that gives the appearance of sexual conduct or incipient sexual conduct.

11. 12. "Visual depiction" includes each visual image that is contained in an undeveloped film, videotape or photograph or data stored in any form and that is capable of conversion into a visual image.

Sec. 10. Section 13-3552, Arizona Revised Statutes, is amended to read:

START_STATUTE13-3552. Commercial sexual exploitation of a minor; classification

A. A person commits commercial sexual exploitation of a minor by knowingly:

1. Using, employing, persuading, enticing, inducing or coercing a minor to engage in or assist others to engage in exploitive exhibition or other sexual conduct for the purpose of producing any visual depiction or live act depicting such conduct.

2. Using, employing, persuading, enticing, inducing or coercing a minor to expose the genitals or anus or the areola or nipple of the female breast for financial or commercial gain.

3. Permitting a minor under the person's custody or control to engage in or assist others to engage in exploitive exhibition or other sexual conduct for the purpose of producing any visual depiction or live act depicting such conduct.

4. Transporting or financing the transportation of any minor through or across this state with the intent that the minor engage in prostitution, exploitive exhibition or other sexual conduct for the purpose of producing a visual depiction or live act depicting such conduct.

5. USING AN ADVERTISEMENT FOR PROSTITUTION AS DEFINED IN SECTION 13‑3211 THAT CONTAINS A VISUAL DEPICTION OF A MINOR.

B. subsection a, Paragraph 5 of this section does not apply to an act that is prohibited by SECTION 13-3555 OR TO WEBSITES OR INTERNET SERVICE PROVIDERS THAT HOST advertisements CREATED AND PUBLISHED BY THIRD PARTIES and do not participate in creating or publishing the advertisements.

B. c. Commercial sexual exploitation of a minor is a class 2 felony and if the minor is under fifteen years of age it is punishable pursuant to section 13‑705.

Sec. 11. Title 41, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 41-113, to read:

START_STATUTE41-113. Human trafficking victim assistance fund; definition

A. THE HUMAN TRAFFICKING VICTIM ASSISTANCE FUND IS ESTABLISHED CONSISTING OF MONIES RECEIVED PURSUANT TO SECTION 9-500.10. THE DIRECTOR SHALL ADMINISTER THE FUND FOR THE PURPOSES PRESCRIBED IN THIS SECTION.

B. THE GOVERNOR’S OFFICE FOR CHILDREN, YOUTH AND FAMILIES SHALL ESTABLISH PROGRAM PRIORITIES FOR THE FUND. THE OFFICE SHALL spend MONIES IN THE FUND TO PROVIDE ASSISTANCE TO VICTIMS OF SEX TRAFFICKING AS PRESCRIBED IN SECTION 13-1307 AND TRAFFICKING OF PERSONS FOR FORCED LABOR OR SERVICES AS PRESCRIBED IN 13-1308.

C. MONIES IN THE FUND DO NOT REVERT TO THE STATE GENERAL FUND.

D. FOR THE PURPOSES OF THIS SECTION, "DIRECTOR" MEANS THE DIRECTOR OF THE GOVERNOR’S OFFICE FOR CHILDREN, YOUTH AND FAMILIES.

Sec. 12. Severability

If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable."

Fifty-first Legislature JUD

Second Regular Session H.B. 2454

Amend title to conform