Senate committee pauses SB 390 after questions about corporate liability; advocates support tougher trafficking penalties with changes

Senate Judiciary Committee members on Thursday heard Senator Penzo’s Senate Bill 390, which would add criminal penalties to existing civil penalties for people who violate the state’s child-trafficking subchapter, but the sponsor agreed to pull the bill to refine language on corporate liability.

The sponsor told the committee SB 390 would supplement the current civil penalty (now $50 to $1,000) with escalating criminal punishments: a class C misdemeanor for a first criminal offense, a class B misdemeanor on a second conviction, and increased penalties including class A misdemeanor or a class C felony where injury or death occurs. The sponsor said the change responds to incidents that were prosecuted federally but lacked state criminal charges.

Why it matters: Committee members pressed how the measure would reach corporate actors. Senator Tucker said it may be rare that an employer is an individual and urged targeting managers or officers who have knowledge of working conditions rather than convicting corporate entities. The sponsor said the bill’s language was modeled on Alabama law and could cover a “person or a corporation.”

Bob McMahon, the prosecutor coordinator, told the committee he believes existing state statute that allows charging an organization (citing the organization‑charging provision discussed in committee) contemplates prosecuting a corporation when an agent acts within the scope of employment on behalf of the organization, but he said he would need to research how often the state pursues such cases. “I think it does envision a possibility of having that happen,” McMahon said, while noting he would need additional research to confirm how it has been applied.

Laura Kellams of Arkansas Advocates for Children and Families told the committee her organization supports SB 390’s increase to civil penalties and creation of criminal penalties but urged removing a line that explicitly names parents, guardians and custodians in the criminal section. Kellams warned that singling out parents could draw prosecutorial attention to families and discourage exploited children from reporting violations; she also suggested adding whistleblower protections to encourage reporting.

Committee outcome and next steps: After discussion and offers from members to help craft amendments, the sponsor agreed to pull SB 390 to prepare committee amendments and said he would run the bill next week or refile as necessary. No formal committee vote on SB 390 occurred Thursday.

Context and process notes: Committee members emphasized they want statutory language that can be enforced at the state level and likely will draft targeted language to permit prosecution of culpable individuals within a corporate structure while preserving prosecutors’ discretion. McMahon agreed to research relevant statute application and report back; members asked the sponsor and Senator Tucker to confer and prepare draft amendments for the next meeting.

The committee then moved on to other bills and adjourned.