CA AB1788

Hotels may face civil penalties if a supervisory employee knew of or acted with reckless disregard toward sex trafficking activity occurring in the hotel and failed to report it to law enforcement, the National Human Trafficking Hotline, or a victim service organization within 24 hours.

Hotels may also face civil penalties if any employee acting within the scope of employment knowingly benefited financially or otherwise from participating in a venture involving sex trafficking activity within the hotel.

Civil penalties are $1,000 for the first violation in a calendar year, $3,000 for the second violation, and $5,000 for the third and subsequent violations; courts may increase penalties up to $10,000 for fourth or subsequent violations after considering defendant culpability, harm, similar penalties, and ability to pay.

City, county, or city and county attorneys may bring civil actions seeking injunctive relief and civil penalties, with actions required to be filed within 5 years of the violation or within 5 years of when a minor victim reaches the age of majority.

Individual hotel employees cannot be held liable for civil penalties under this section, and violation of this section alone does not result in criminal liability for the hotel or affect other criminal or civil liabilities under law.