Dissenting Opinion
dissenting from, the denial of rehearing en banc.
A panel of this court has held that the Mann Act’s federal protections against sex trafficking of adults, see 18 U.S.C, § 2421(a), do not apply to conduct occurring solely within Puerto Rico. United States v. Maldonado-Burgos,
We respectfully dissent from the denial of the petition for rehearing en banc. This question is about .how courts determine Congress’ intent as to the' applicability of federal criminal statutes to Puerto Rico. The panel’s decision here, in our view, both departs from binding Supreme Court precedent and abandons this court’s settled method for addressing the application of federal statutes to Puerto Rico. The panel’s decision is exceptionally important: it will not only eviscerate the protection of adult sex-trafficking victims whom the Mann Act expressly aims to protect but also adversely affect the federal govern
I.
Respectfully, in our view, the panel’s decision gets congressional intent exactly backwards, and that has harmful consequences for the law and in practice. The decision’s inconsistency with congressional intent is evident when we look at the Supreme Court’s decision in Puerto Rico v. Sánchez Valle, — U.S. —,
A. The Panel’s Decision Ignores Recent Supreme Court Law and Congressional Legislation on Puerto Rico
The panel analyzes § 2421(a)
Indeed, in recent legislation, Congress has explicitly designated Puerto Rico as a “Territory.” See PROMESA, § 5(20),
B. The Panel’s Decision Conflicts with Longstanding Supreme Court and First Circuit Precedent on the Application of Federal Statutory Law to Puerto Rico
The panel’s decision further conflicts with Supreme Court precedent, namely the Court’s Examining Board decision on the application of federal statutes to Puer-to Rico after it achieved Commonwealth status. In Examining Board, the Supreme Court addressed the question of whether Puerto Rico’s change of status to a Commonwealth in 1952 stripped the United States District Court in Puerto Rico of jurisdiction under 28 U.S.C. § 1343. See
Cordova, by contrast to the panel decision in Maldonado-Burgos, in no way purported to depart from Examining Board. Indeed, the Cordova decision took pains to emphasize that the analysis it undertook should be conducted statute-by-statute, see
The Cordova panel was concerned with enforcement- of antitrust laws and appar
This court’s precedents, which the panel held inapposite, have used an. analysis following that used in Examining Board. See United States, v. Villarin Gerena,
C, The Panel’s Decision Misapplies Cor-dova and Misreads Congressional Intent
While the larger question is which model of analysis to use for application of federal criminal statutes to Puerto Rico, even the Cordova framework itself does hot dictate the outcome that the panel reached here, that is, forbidding federal prosecutors from enforcing § 2421(a) against .sex traffickers of adults who operate wholly within Puerto Rico.- Even applying Cordova, it is not “fair to assume that the framers of the [Mann]' Act, had they been aware [that Puerto Rico achieved Commonwealth status], would have intended” for § 2421(a) to not apply to Puerto Rico as a territory.
The panel adopts a presumption that, for statutory interpretation purposes, Puerto Rico must be said to be a state and not a territory unless there exists “specific evidénce or clear policy reasons” evidencing an intent to treat Puerto Rico as a territory. Maldonado-Burgos,
For decades, Congress has allowed this court’s interpretation of § 2421(a) in Cres-po to remain in place. It also confirmed its acquiescence to that interpretation when it amended a different provision of the Mann Act. It is not Congress that has now changed the conclusion that § 2421(a) applies to conduct solely within Puerto Rico; it is a panel of this court. And the panel has done so some 71 years after Crespo and some 64 years after the Commonwealth’s constitution was ratified. This is a late-breaking change in the law, of which Congress has had no prior notice.
The panel points out that when Congress in 1998 wanted to create new protections for children from sexual predators, it used the term “commonwealth” rather than the term “territory.” Maldonado-Burgos,
The fact that Congress added in 1998 the term “commonwealth” to § 2423(a) of the Mann Act, see Protection of Children from Sexual Predators Act of 1998, § 103,
We also see no reason to think Congress would want § 2421(a)’s general prohibition against sex trafficking of adults to have a different, more limited jurisdictional scope in Puerto Rico than § 2423(a)’s more specific prohibition against sex trafficking of minors. See United States v. Washington,
Other settled rules of statutory interpretation also weigh against the panel’s reading of congressional intent. Congressional silence should not be read as repudiation; instead, precedent instructs that in analogous contexts congressional silence suggests the continued validity of a judicial rule. See Succar v. Ashcroft,
Given these background rules of interpretation, the legislative history of the Mann Act, and the practical consequences, “[i]f Congress had wanted to exclude” sex trafficking within Puerto Rico from § 2421(a), “it would have done so [explicitly] without relying on the creativity of parties arguing before the courts.” Franklin Cal. Tax-Free Tr. v. Puerto Rico,
II.
The government’s petition explains persuasively not just that the panel’s decision is wrong, but also that the case presents a question of exceptional importance: this misinterpretation of congressional intent deprives Puerto Rico of federal prosecuto-rial resources — at a time when it can ill afford to lose them — and threatens the enforcement of other federal statutes as to conduct wholly within Puerto Rico.
The panel’s cursory inquiry into “clear policy reasons,” see Cordova,
The United States has also offered evidence that sex trafficking in Puerto Rico is a very serious problem, that its usual scope is wholly within the island, and that local authorities have been hard pressed to address it. See César A. Rey Hernández & Luisa Hernández Angueira, Human Trafficking in Puerto Rico: An Invisible Challenge 16 (2010), http://protectionproject. org/wpcontent/uploads/2010/09/RMF-Eng. pdf (noting that, as of 2010, local authorities paid “little attention” to “[intra-island sex] trafficking in Puerto Rico, which is the predominant form of trafficking on the Island”). The mere fact that the legislative history lacks specific references to Puerto Rico speaks more to the fact that the problem is one that may be “invisible” to raw statistics, see id. at 1, 34, but nonetheless one of which Congress should be acutely aware, especially given its appearances in other contexts. See U.S. Dep’t of State, Trafficking in Persons Report 393 (2016) (noting that in 2015, the HHS-funded National Human Trafficking Resource Center received “47 calls from U.S. territories, with most calls coming from Puerto Rico”); Posture Statement of Gen. John F. Kelly, U.S. Marine Corps Commander, Before S. Armed Services Comm., 113th Cong. 7-8 (2014), https://www.armed-serviees.senate.gov/imo/media/doc/Kelly_ 03-13-14.pdf (pointing out that Puerto Rico and the U.S. Virgin Islands are especially vulnerable to sex and labor trafficking, as both are destinations for migrant smuggling organizations).
The United States also contends that the panel’s decision will have much greater consequences for enforcement of federal criminal statutes in Puerto Rico. It argues,
We would not conclude that Congress wanted at any time to withhold the protection afforded to adult victims in Puerto Rico in the Mann Act, to curtail the full measure of federal resources to prosecute intra-island sex trafficking, and to endanger'the application of other federal criminal-statutes to conduct occurring wholly within Puerto Rico in the name of Puerto Rico’s sovereignty as a commonwealth.
III.
The question here, in our view, warrants review by the Supreme Court. Congress may wish to address the panel’s misinterpretation of its intent, understanding that the model used goes beyond the applicability of the Mann Act.
We respectfully dissent.
Notes
. 18 U.S.C. § 2421(a) provides:
Whoever knowingly transports any individual in interstate or foreign commerce, or in any Territory or Possession of the United States, with intent that such individual engage in prostitution, or in any sexual activity for which any person can be charged with a criminal offense, or attempts to do so, shall be fined under this title or imprisoned not more than 10 years, or both. Federal law does not outlaw prostitution
itself: it is addressed rather to the transportation of persons for the described sexual activities. No state, except for Nevada (that is, certain counties within the state) has legalized prostitution. See Nev. Rev. Stat. § 244.345; Michael Martinez, What to Know About Nevada's Legal Brothels, CNN (Oct. 19, 2016), http://www.cnn.com/2015/10/14/us/lamar-odom-nevada-brothels/ (“Sex workers do business in every state, but only in Nevada is prostitution legalized, specifically in brothels.’1). Puerto Rico has not legalized prostitution.
. It is true that Cordova's holding was based on an interpretation of the different treatment of states and territories for the purposes of a federal statute, and not the Constitution. But Cordova’s reading of the Sherman Act was buttressed by constitutional reasoning, which has been changed by Sánchez Valle, and there is no need for Congress to later state the term “Territory” in order to continue the application of a statute to Puerto Rico.
. The Ninth Circuit has used similar reasoning and assumptions in examining the application of federal prohibitions on sex trafficking to the Commonwealth of the Northern Mariana Islands. See United States v. Chang Da Liu,
, Cordova also did not purport to overturn First Circuit precedent, on which Congress may have relied, unlike Maldonado-Burgos. The test articulated in Cordova, and applied by the panel here, failed to account for congressional reliance on settled First Circuit precedent. The Supreme Court in 1937 had applied the provision of the Sherman Act at issue in Cordova to Puerto Rico, see Puerto Rico v. Shell Co.,
. We have twice rejected similar arguments that the applicability of a federal criminal statute was changed by a textual amendment to a federal criminal law after the creation of the Commonwealth, which did not mention “Puerto Rico.” See Villarin Gerena,
.Congress is presumed to operate with a knowledge of settled judicial precedent. In re Rivera Torres,
. The Supreme Court has recently reaffirmed these principles:
Accordingly, the only question we must answer is whether Congress changed the meaning of § 1400(b) when it amended § 1391. When Congress intends to effect a change of that kind, it ordinarily provides a relatively clear indication of its intent in the text of the amended provision. See United States v. Madigan,300 U.S. 500 , 506,57 S.Ct. 566 ,81 L.Ed. 767 (1937) ("[T]he modification by implication of the settled construction of an earlier and different section is not favoredf.]”); A. Scalia & B. Garner, Reading Law 331 (2012) (“A clear, authoritative judicial holding on the meaning of a particular provision should not be cast in doubt and subjected to challenge whenever a related though not utterly inconsistent provision is adopted in the same statute or even in an affiliated statute[.]”).
TC Heartland LLC v. Kraft Foods Grp. Brands LLC, — U.S. —, —,
. Twenty years ago, Congress acted within a few months to amend a federal criminal statute to overrule a decision of this court, which had held that rape resulting from carjacking could not result in "serious bodily injury” to the victim. Congress viewed that ruling, as contrary to its intent. United States v. Rivera No. 95-2186,
Lead Opinion
statement concerning denial of rehearing en banc.
After careful consideration of the contrary views of some of my colleagues, I remain convinced that this court’s decision in Cordova & Simonpietri Insurance Agency, Inc. v. Chase Manhattan Bank N.A.,
I. The Cordova Framework Governs
Although my dissenting colleagues attempt to limit Cordova to the Sherman Act context, Cordova itself belies any such confinement; it sets forth a broadly applicable test for determining whether federal statutes that treat territories differently than states continue to treat Puerto Rico as a territory after it became a commonwealth. See Cordova,
Similarly, the dissent’s efforts to sidestep Cordova on the basis that the pre-1952 on-point decision in that case — Puerto Rico v. Shell Co.,
Finally, I simply disagree with the dissent’s position that the framework that should govern this case is set forth in Examining Board of Engineers, Architects & Surveyors v. Flores de Otero,
, II. Cordova Has Not Been Eroded .
The dissent suggests that- Cordova now rests on shaky ground after' the Supreme Court’s decision iri Puerto Rico v. Sánchez Valle, — U.S. —,
III. Cordova was Properly Applied in This Case
I respectfully disagree with the dissent’s assertion that the panel opinion misapplied the Cordova framework. To the contrary, the panel opinion faithfully applied Cordo-va and correctly found no “specific evidence or clear policy reasons embedded in § 2421(a)” of the type Cordova requires. Maldonado-Burgos,
The dissent’s contrary assessment is mistaken. First, the dissent asserts that “[n]o one has argued to this court that Puerto Rico does not want the benefit of the full federal prosecutorial resources afforded by § 2421(a)” and that “Puerto Rico is in the midst of a serious economic crisis, and it will sorely miss the federal law enforcement and prosecutorial resources this decision eliminates.” But these assertions are entirely irrelevant to the Cordova analysis, and the dissent does not attempt to show otherwise. Second, the dissent emphasizes congressional silence in the face of Crespo, but the same was true in Cordova. Third, the dissent identifies documents discussing the seriousness of the sex-trafficking problem in Puerto Rico, but it makes no effort to explain how those documents are responsive to the critical question of congressional intent that the Cordova framework examines. See Maldonado-Burgos,
Finally, the dissent relies on the amendment to a separate provision of the Mann Act, 18 U.S.C. § 2423(a), to support its interpretation of the scope of § 2421(a).
CONCLUSION
I remain convinced that the panel opinion correctly applied the Cordova framework and that, consequently, rehearing en banc is not warranted in this case.
. The same is true for the other cases relied upon by the dissent. See United States v. Acosta-Martinez,
. In a somewhat related effort, the dissent appears to criticize the panel opinion for relying on this same amendment. But, of course, the panel opinion did no such thing; in fact, the panel opinion expressly disclaimed any such reliance. See Maldonado-Burgos,
Lead Opinion
ORDER OF COURT
Appellant United States of America filed a petition for rehearing en banc, and, pursuant to First Circuit Internal Operating Procedure X(C), the appellant’s petition for rehearing en banc has also been treated as a petition for rehearing before the original panel. The petition for rehearing has been denied by the panel of judges who decided the case, and the petition for rehearing en banc having been submitted to the active judges of this court and a majority of the judges not having voted that the case be heard en banc, it is ordered that the petitions for rehearing and rehearing en banc be denied.
Lead Opinion
statement concerning denial of rehearing en banc.
I vote in favor of rehearing en banc because this case raises issues of exceptional importance and complexity that clearly meet the requirement of Rule 35(a)(2) of the Federal Rules of Appellate Procedure and thus warrants to be carefully considered by. the full court. My vote as to granting the rehearing en banc, however, should not be construed as an indication of my position on the merits.
