BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 461
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          ASSEMBLY THIRD READING
          AB 461 (Gaines)
          As Introduced  February 24, 2009
          2/3 vote.  Urgency 

           PUBLIC SAFETY       7-0         APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Solorio, Hagman,          |Ayes:|De Leon, Nielsen,         |
          |     |Furutani, Gilmore, Hill,  |     |Ammiano,                  |
          |     |Ma, Skinner               |     |Charles Calderon, Davis,  |
          |     |                          |     |Duvall, Fuentes, Hall,    |
          |     |                          |     |Harkey, Miller,           |
          |     |                          |     |John A. Perez, Price,     |
          |     |                          |     |Skinner, Solorio, Audra   |
          |     |                          |     |Strickland, Torlakson,    |
          |     |                          |     |Krekorian                 |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Reenacts the Economic Crime Act of 1992, addressing  
          felony theft restitution and probation grant limitations, with a  
          sunset date of January 1, 2019.   Specifically,  this bill  :  

          1)Provides that when considering whether to grant probation to a  
            defendant convicted of a felony for a theft in excess of  
            $50,000 in a single transaction or occurrence, the court shall  
            consider the extent to which the defendant has attempted to  
            pay restitution between the date of conviction and the date of  
            sentencing. 

          2)Provides that a defendant claiming inability to pay  
            restitution before the date of sentencing shall provide a  
            statement of assets, income, and liabilities. 


          3)Prevents the court from granting probation to any defendant  
            who has suffered a prior conviction where a court found  
            enhancements for intentional taking, damaging or destruction  
            of property in the commission (or attempted commission) of a  
            felony in excess of $50,000. 

          4)States that probation shall not be granted to any defendant  
            who commits theft in an amount exceeding $100,000 in a single  








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            transaction or occurrence, except in unusual circumstances  
            where the interests of justice would best be served by the  
            grant of probation.  Requires mandatory custody time when  
            probation is granted.  

             a)   Mandates at least a 90-day sentence when probation is  
               granted for a felony conviction involving a theft in excess  
               of $50,000 in a single transaction or occurrence.  At least  
               30 days of this sentence must be served "in-custody"  
               regardless of any available programs, including work  
               furlough, work release, public service programs, or  
               electronic monitoring. 


             b)   Mandates at least a 180-day sentence when probation is  
               granted for a felony conviction involving a theft in excess  
               of $100,000 in a single transaction or occurrence.  At  
               least 60 days of the sentence must be served "in-custody"  
               regardless of any available programs, including work  
               furlough, work release, public service programs, or  
               electronic monitoring.  

          5)Provides that all probation terms under this act must be 10  
            years.  After five years of probation, the defendant is  
            released from all of the standard terms and conditions of  
            felony probation and remains subject to the special terms and  
            conditions of probation imposed under this section.  

          6)States that when a defendant is granted probation for a felony  
            theft of greater than $50,000, the court shall require  
            additional terms:  

             a)   Requires that the defendant pay restitution to the  
               victim and a surcharge to the county in an amount equal to  
               20% of the restitution ordered.  

             b)   Mandates that the defendant provide the county financial  
               officer with specified tax documents and specified  
               statements of income, assets, and liabilities within 30  
               days of being granted probation and annually thereafter.   
               Any knowing misrepresentation of accuracy in these  
               documents constitutes a violation of probation.  

             c)   Permits the Franchise Tax Board and the Employment  








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               Development Department to release specified financial  
               information to the county financial officer related to the  
               defendant once probation has been granted.  


             d)   Requires the defendant (during the period of probation)  
               to notify the county financial officer within 30 days after  
               receipt of any money, personal property, or real property  
               in excess of $5,000 other than the regular salary of the  
               defendant or the defendant's spouse.  


          7)Allows the county financial officer to implement a suggested  
            payment schedule for payment of restitution and the attached  
            surcharge based on specified findings related to the  
            defendant's reported financial records.  Any willful failure  
            to comply with the suggested payment schedule shall constitute  
            a violation of probation.  

          8)The court shall factor the defendant's ability to pay  
            according to specified findings related to the defendant's  
            reportable current income and future earning capacity. 

          9)Requires personal appearance by the defendant at all hearing  
            related to the offense, unless the defendant is incarcerated  
            or otherwise excused by the court.  

           EXISTING LAW  :  

          1)Provides that when a person intentionally takes, damages or  
            destroys any property in the commission or attempted  
            commission of a felony, he or she shall receive increasing  
            prison sentence enhancements based upon the value of affected  
            property, as follows:  a) one additional year for a taking or  
            loss in excess of $65,000; b) two additional years for a  
            taking or loss in excess of $200,000; c) three additional  
            years for a taking or loss in excess of $1.3 million; and, d)  
            four additional years for a taking or loss in excess of $3.2  
            million.  

          2)Provides that except in unusual cases where the interests of  
            justice would best be served if the person is granted  
            probation, probation shall not be granted to any person  
            convicted of a crime of theft or an amount exceeding $100,000.  








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          3)Provides in any accusatory pleading involving multiple charges  
            of taking, damage, or destruction, the additional terms  
            provided in this section may be imposed if the aggregate  
            losses to the victims from all felonies exceed the amounts  
            specified in this section and arise from a common scheme or  
            plan.  

           FISCAL EFFECT  :  According to the Assembly Appropriations'  
          Committee, continuing to prohibit probation for specified  
          offenses means more offenders will be sentenced to state prison.  
           Also, adding conditions of probation will result in more cases  
          of revoked probation that will in turn result in additional  
          state prison time.  Based on the 34 persons sentenced to state  
          prison with enhancements for excessive takings over the past two  
          years, if five persons served one year in state prison rather  
          than serving probation in lieu of state incarceration, annual  
          General Fund costs would exceed $200,000.

           COMMENTS  :  According to the author, "The Economic Crime Act and  
          the excessive takings enhancement statute have been extremely  
          important in the prosecution and punishment of white collar  
          crime.  In 2007, the Legislature passed and the Governor signed  
          AB 1705 (Niello), extending the sunset date from January 1, 2008  
          to January 1, 2018 for excessive takings enhancements under  
          Penal Code Section 12022.6.  Specifically, this statute imposes  
          sentence enhancements of one, two, three, or four years for  
          felony convictions in which the crime involves taking, damaging,  
          or destroying property of a value that exceeds established  
          threshold values. 

          "While Penal Code Section 12022.6 addresses sentence  
          enhancements for excessive takings crimes, Penal Code Section  
          1203.044 was the statute that formerly addressed restitution for  
          felony theft and limitations on grants of probation.

          "AB 1705 extended the sunset date for excessive takings  
          enhancements.  This measure would essentially complete the goal  
          of AB 1705 by re-enacting the restitution and probation  
          provisions that were inadvertently allowed to sunset.   
          Re-enacting Penal Code Section 1203.044 is critical because  
          victims are entitled to restitution and the perpetrators of many  
          of these high-dollar crimes should not receive probation."








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          Please see the policy committee analyses for a full discussion  
          of this bill.
           

          Analysis Prepared by  :    Kathleen Ragan / PUB. S. / (916)  
          319-3744 



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