Sec. 2. Purposes and Findings: Describes the nature and scope of the trafficking problem, the international sex trade, and the need for this legislation.

Sec. 3.  Definitions: Defines the terms used in this Act, including:
     • "sex trafficking" is defined as the purchase, sale, recruitment, harboring, transportation, transfer, or receipt of a person for the purpose of a commercial sex act.
     • "severe forms of trafficking in persons" – the operative term for enforcement against individuals and governments under the Act – includes sex trafficking induced by force, fraud or coercion,, or involving a person under the age of 18, as well as the purchase, sale, recruitment, harboring, or transportation of a person for the purpose of subjecting that person to involuntary servitude, slavery, or slavery-like practices effected by force, coercion, fraud, or deception.
     • "coercion" includes the threats of serious harm, schemes intended to cause a person believe that he or she will suffer serious harm, and abuse or threatened abuse of the legal process).

Sec. 4. Annual Country Reports on Human Rights Practices: Requires the Secretary of State to include in the annual Country Reports information regarding countries involved in severe forms of trafficking in persons and the extent to which the governments of those countries: are involved in such trafficking; are working to combat trafficking; and are taking steps to assist victims of trafficking and protect their rights.

Sec. 5. Interagency Task Force to Monitor and Combat Trafficking: Requires the President to establish an Interagency Task Force to Monitor and Combat Trafficking, chaired by the Secretary of State.  Authorizes the establishment in the State Department of an Office to Monitor and Combat Trafficking, which will provide assistance to the Task Force.  Charges the Task Force with:
     • coordinating the implementation of this Act;
     • evaluating progress in trafficking prevention, victim assistance, and the prosecution of traffickers;
     • expanding the collection of trafficking data by government agencies and advising the Secretary of State on preparation of the ;
     • facilitating cooperation among countries to prevent trafficking, prosecute traffickers, and assist victims; and
     • examining the international "sex tourism" industry and recommending appropriate measures to combat it.

Sec. 6. Prevention of Trafficking: Charges the President – acting in consultation with NGOs – with establishing initiatives to enhance economic opportunity for potential trafficking victims as a means of deterring trafficking.  Directs the President to establish programs to increase public awareness of the dangers of trafficking and the protections available to victims.

Sec. 7. Protection and Assistance for Victims of Trafficking:

 (a) Assistance for Victims in Other Countries: Charges the State Department and AID with establishing programs and initiatives in foreign countries to assist victims of trafficking.

 (b) Victims in the United States: Directs the Attorney General, Labor,  HHS Departments and other Federal agencies, and the Legal Services Corporation to expand assistance to victims of severe forms of trafficking in the United States. Allows the Attorney General to make grants to local governments and nonprofit organizations to expand services for victims of trafficking.

(c) Trafficking Victim Regulations: Requires the Attorney General and Secretary of State to promulgate regulations to ensure that: (1) victims of severe forms of trafficking are provided with appropriate shelter and care while in Federal custody; (2) victims have access to legal assistance and translation services; (3) victims may be kept in the United States to assist in the prosecution of traffickers; and (4) State and Justice Department personnel are trained in identifying and protecting victims of severe forms of trafficking.

 (d) Construction: Subsection (c) does not create a private cause of action against the United States or its employees.

 (e) and (f) Protection from Removal for Certain Victims of Trafficking: Grants nonimmigrant alien status to certain victims of severe forms of trafficking who are in the United States and who would face extreme hardship if they were removed from the U.S. or its territories.  Allows adjustment of nonimmigrant status to permanent resident status for victims who: have been in the U.S. continuously for 3 years since admission; have remained of good moral character; have not unreasonably refused to assist in trafficking investigations or prosecutions; and would face a significant possibility of retribution or other harm if removed. Places annual cap of 5000 per year for victims.

Sec. 8. Minimum Standards for the Elimination of Trafficking: Establishes minimum standards regarding the prohibition, punishment, and efforts to eliminate severe forms of trafficking applicable to countries of origin, transit and destination.

Sec. 9. Assistance to Foreign Countries to Meet Minimum Standards: Amends the Foreign Assistance Act to authorize activities designed to help foreign countries meet the minimum standards. .
Sec. 10. Actions Against Governments Failing to Meet Minimum Standards: Requires the Secretary of State to report to Congress annually on the status of severe forms of trafficking, including a list of countries that do not meet the minimum standards of Section 8. Beginning in FY2003,  for each government that fails to meet the minimum standards and is not taking significant steps to combat trafficking, the President must either (a) withhold nonhumanitarian, nontrade-related U.S. foreign assistance to that government and vote against nonhumanitarian, nontrade-related assistance to that government by multilateral lending institutions, (b) determine that broad-based sanctions are already imposed on the country; or (c) waive that prohibition if he finds that  the provision of such assistance to that country furthers the purpose of the Act or is otherwise in the national interest of the United States.

Sec. 11. Actions Against Significant Traffickers in Persons: Authorizes the President to impose International Emergency Economic Powers Act (IEEPA) sanctions against any foreign persons involved with a severe form of trafficking in persons, directly or indirectly in the United States, and requires that he report to Congress on any such sanctions.  Excludes significant traffickers in persons from entry into the United States, and requires that Congress be notified of such exclusions on an annual basis.

Sec. 12. Strengthening Prosecution and Punishment of Traffickers:

 (a) Title 18 Amendments: Doubles the maximum penalties for peonage, enticement into slavery, and sale into involuntary servitude to 20 years, and adds the possibility of life imprisonment for such violations where they result in death or involve kidnapping, aggravated sexual abuse, or an attempt to kill.  Also criminalizes:

     •  forced labor by direct threats, schemes intend to cause persons to believe they will suffer serious harm, threats or abuse of the legal process (fines and up to 20 years imprisonment; life for cases resulting in death, or involving kidnapping, aggravated sexual abuse, or an attempt to kill);

     • trafficking into involuntary servitude, peonage, or forced labor (fines and up to 20 years imprisonment; life for cases resulting in death, or involving kidnapping, aggravated sexual abuse, or an attempt to kill);

      • sex trafficking of children (for children under 14: fines and up to life imprisonment; for children 14-18: fines and up to 20 years imprisonment);

      • sex trafficking by force, fraud, or coercion (fines and up to life imprisonment);

      • unlawful possession or destruction of identification or immigration documents, e.g., confiscation of a victim's passport by a trafficker to restrict the person's movement (fines and up to 5 years imprisonment)

 The bill also requires that convicted traffickers provide full restitution to their victims.  Victims of these crimes will be eligible for the Federal witness protection program.

 (b) Amendment to the Sentencing Guidelines: Directs the U.S. Sentencing Commission to review and, if appropriate, amend the sentencing guidelines applicable to trafficking offenses to ensure that they are adequately stringent.

 (c) Racketeering: Adds the new trafficking offenses to the list of "racketeering activit[ies]" for purposes of the Federal RICO statute.

Sec. 13. Authorization of Appropriations: Authorizes a total of $94.8 million ($31.8 million for FY01, $63 million for FY02) in the following categories:
     (a) Interagency Task Force: $1.5 million for FY01, $3 million for FY02
     (b) HHS/victim assistance in U.S: $5 million for FY01, $10 million for FY02
     (c) DOS/foreign victim assistance: $5 million for FY01, $10 million for FY02
     (d) Attorney Gen'l/victim assistance in U.S.: $5 million for FY01, $10 million for FY02
     (e) Appropriations to the President:
          (1) Foreign Victim Assistance: $5 million for FY01, $10 million for FY02
          (2) Assistance to help countries meet minimum standards: $5 million for FY01, $10 million for FY02
     (F) Labor/victim assistance in U.S.: $5 million for FY01, $10 million for FY02