House committee substitute makes the following changes to the 3rd edition.

Redefines the offense of human trafficking (GS 14-43.11), involuntary servitude (GS 14-43.12), and sexual servitude (GS 14-43.13) to provide punishment for persons who act knowingly or in reckless disregard of the consequences of their actions (was,knowingly or inreckless disregard of the fact). Also amends GS 14-43.11to also define as human trafficking willfully (was, knowingly) or in reckless disregard of the consequences of the action causing a minor to be held in involuntaryservitude or sexual servitude.Restores current law, amended in a previous edition,whichprovides that if the victim is an adult,a violation of GS 14-43.11 (human trafficking)or aviolation of GS 14-43.12 (involuntary servitude)is a ClassF felony (was, Class E). Makes a violation of GS 14-43.13 (sexual servitude) a ClassD felony (was, ClassE) if the victim is an adult.

Removes GS 14-203, defining terms in Article 27 (prostitution) of GS Chapter 14, and GS 14-204, identifying prostitution and certain acts abetting prostitution as unlawful, from the list ofstatutes repealed in the previous edition.

Makes an organizational change, amending GS 14-203 instead of enacting a new GS 14-203.1. Deletesthe definitions under current law forprostitution and assignation.Redefines prostitutionto meanoffering or agreeing to performor performing vaginal intercourse, any sexual act as defined in GS 14-27.1 [was, GS 14-27.1(4)], or any sexual contact as defined in GS 14-27.1 [was, GS 14-27.1(5)] for the purpose of sexual arousal or gratification for money or other consideration. Recodifies provisions (Definitions) of previously proposed GS 14-203.1 as GS 14-203 (Definition of terms). Provides that advance prostitution includes granting or permitting the use of a place under circumstances from which a person should (was, could) reasonably know that the place is used or is to be used for the purpose of prostitution.

Makes an organizational change, amending GS 14-204 instead of enacting a new GS 14-203.2. Makes the catch line Prostitution (was, Prostitution and various acts abetting prostitution unlawful). Deletes all of the provisions under current law.

Makes willfully (was, knowingly) engaging in prostitution a Class 1 misdemeanor. Provides that regardless of the provisions of GS 15A-1431(a1) (Deferred Prosecution), the prosecution of a16- or 17-year-old minor charged with a misdemeanor under this section but not previouslyconvicted or placed on probation for violating this section must be deferred under Article 82 of GS Chapter 15A. Also provides that any 16- or 17-year-old minor charged with a second or subsequent misdemeanor offense under this section may be considered for deferred prosecution, (was, provided for immunity from prosecution for aminor and placement of the minor into temporaryprotective custody as an undisciplined juvenile under Article 19 of GS Chapter 7B).

Provides that a minor taken into custody by a law enforcement officer who reports an allegation of a violation of GS 14-43.11 or GS 14-43.13 to the director of social services in the county where the minor resides or is found must be held in nonsecure custody or placed in specialized housing if available pendinga department of social services investigation into child abuse or child neglect.

Makes an organizational change,enacting new GS 14-205.1 (was, GS 14-203.3). Makes it a Class H felony (was, Class I) for a second or subsequent offense of soliciting another person for prostitution. Makes it a Class G felony (was, Class C) for any person age 18 or older to willfully solicit (was, solicit) a minor for prostitution. Makes it a Class E felony (was, Class C) for any person to willfully solicit a person who is severely and profoundly mentally disabled for the purpose of prostitution. Provides that punishment under this section may include participation in "John School," a program devised for the education and prevention of sexual exploitation, where available. Makes a person who violates this section ineligible for a disposition of prayer for judgment continued under any circumstances.

Makes an organizational change, enacting new GS 14-205.2 (was, GS 14-203.6). Provides that except as provided in subsections (c), making it a Class F felonyfor a person 18 years of age or older to patronize a prostitute who is a minor, and (d), making a violation of this section a Class D felony if the prostitute is a severely or profoundly mentally disabled person, a first violation under this section is a Class A1 misdemeanor. Makes a second or subsequent violation a Class G felony unless a higher penalty applies. Makes conforming changes,deleting references to subdivisions (4) and (5) of GS 14-27.1 to reflect amendments in this act to GS 14-203.

Makes an organizational change, enacting new GS 14-205.3 (was, GS 14-203.4 and GS 14-203.5). Amends subsection (b) to provide that any person who willfully (was, knowingly) performs any of the specified actscommits the offense ofpromoting prostitution of a minor or mentally disabled person. Clarifies that profiting from prostitution includes receiving a portion of the earnings from a prostitute for arranging or offering to arrange a situation in which a person may engage in prostitution. Provides that mistake of age is not a defense to a prosecution under subsection (b).

Makes a violation of GS 14-205.3(b), promoting prostitution of a minor or a mentally disabled person, undersubdivision (1), advancing prostitution, or (2), profiting from prostitution, a Class D felony (was, Class B2)unless a higher penalty applies. Makes a violation of subdivision (3) of subsection (b) a Class C felony (was, Class B1). Makes it a Class C felony (was, Class B1) for a violation of subsection (b) of this section by any person with a previous conviction for a violation of this section or a violation of GS 14-204 (prostitution), GS 14-204.1 (solicitation of prostitution), and GS 14-204.2 (patronizing a prostitute). Makes a violation by any person under subsection (a) with a previousconviction underthis section orunder GS 14-204 (prostitution), GS 14-204.1 (solicitation of prostitution), and GS 14-204.2 (patronizing a prostitute) a Class E felony (was, Class C).

Deletes GS 14-203.7, regarding patronizing a minor or mentally disabled person engaged in prostitution. Makes an organizational change, enactingnew GS 14-205.4 (was, GS 14-203.10) regarding certain probation conditions. Clarifies that the court may order any convicted defendant to be examined for sexually transmitted infections (was, examined for venereal disease) and that the period of probation may begin only under terms and conditions to prevent the spread of the infection.

Amends new GS 15A-145.6 to define prostitution offense as a conviction for an offensein violation of GS 14-204or engaging in prostitution in violation of GS 14-204(7) for an offense occurring before October 1, 2013 (was, before December 1, 2013). Deletes an offense that includes assault as an essential element of the offense from the definition for violent felony or violent misdemeanor.

Amends the definition for abused juveniles in GS 7B-101(1),citing promoting the prostitution of a juvenile to GS 14-205.3(b) as enacted in this act (was, GS 14-190.18).

Amends new GS 14-43.20(b) to direct the court, at a minimum, to order restitution equal to the value of the victim's labor under the Minimum Wage Law, including overtime standards of the Fair Labor Standards Act (FLSA). Provides that thejudge may also order any other amount of loss identified in the action, including the gross income or value to the defendant of the victim's labor or service (was, directed the court to order restitution, in addition to any other amount of loss identified, including the greater of (1)the gross income or value to the defendant of the victim's labor or services or (2) the value of the victim's labor as guaranteed under the Minimum Wage Law and the FLSA's overtime provisions, whichever is greater).

Amends GS 14-208.6(5) to make conforming changes to the definition of sexually violent offense. Deletes changes to GS 15A-830(a)(7), defining victim. Deletes changes to GS 90-210.25B(b) defining the term sexual offense against a minor. Deletes changes to GS 114-15(b1), regarding the authority of the State Bureau of Investigation to investigate specified crimes. Makes conforming changes to GS 115C-296(d)(92) regarding the State Board of Education's authority to automatically revoke a teacher's license without the right to a hearing for conviction or a plea of guilty orno contestfor certain crimes. Makes additional conforming changes to correct references to statutes repealed or enacted bythis act.

Amends GS 15A-1371(a) to provide that a prisoner sentenced under the Fair Sentencing Act for a ClassD through a Class J felony who meets statutory criteria and who has completed at least 20 years of imprisonment is eligible for consideration for parole. Effective when this act becomes law.

Amends GS 15A-622 to provide for the convening of an investigative grand jury when a petition alleges human trafficking, involuntary servitude, sexual servitude, and other specified violations of the state's criminal laws.

Codifies Section 15.3A of SL 2012-142, establishing the North Carolina Human Trafficking Commission in the Department of Justice, as GS 143A-55.10. Amends this section as follows: (1) addsLegal Aid of North Carolina tothe list of entities from whichthe President Pro Tempore is to appoint representatives; (2) adds the North Carolina Coalition Against Human Trafficking, a faith-based shelter or benefits organization providing services to victims of human trafficking, and a district attorney to the list of persons or entities from which the Speaker of the House of Representatives is toappoint representatives (removes a county sheriff's department and a city or town policy department); (3) directs the Governor to appoint one representativeeach from the Departments of Labor, Justice, and Public Safety and a health care representative (was, one representative from the public at large; and(4) removes the ex officio members from the Commission (was, Secretaries of Public Safety, Administration, Labor, Health and Human Services, and the NC Attorney General).

Provides that members are to serve two-year terms, are not prohibited from beingreappointed, andany appointed member is to serve until the member's successor is appointed and qualified (was, members were to serve until the Commission terminated). Providesthat the Governor is to appoint thechair biennially.Directs the Department of Justice to provide office space in Raleigh for use by the commission. Directs the Attorney General to allocate monies to fund the work of the Commission from the funds available to the Department of Justice. Deletes provision terminating the Commission as of December 31, 2014.

Except as otherwise indicated, provides that this act becomes effective October 1, 2013 (was, December 1, 2013)and applies to offenses committed on or after that date.

Amends the act's title.