BILL ANALYSIS AB 2372 Page 1 Date of Hearing: April 20, 2010 Counsel: Milena Nelson ASSEMBLY COMMITTEE ON PUBLIC SAFETY Tom Ammiano, Chair AB 2372 (Ammiano) - As Amended: March 11, 2010 SUMMARY : Increases the threshold amount that constitutes grand theft from $400 to $950. EXISTING LAW: 1)Defines "grand theft" as any theft where the money, labor, or real or personal property taken or when the property is taken from the person of another is of a value exceeding $400. [Penal Code Sections 487(a) and 487(c).] 2)Provides that grand theft is committed when the money, labor, or real or personal property taken is of a value in excess of $400, except as specified. [Penal Code Section 487(a).] 3)Provides that notwithstanding the value of the property taken, grand theft is committed in any of the following cases [Penal Code Section 487(b)]: a) When domestic fowls, avocados, or other farm crops are taken of a value exceeding $250; b) When fish or other aquacultural products are taken from a commercial or research operation that is producing that product of a value exceeding $250; c) Where money, labor or property is taken by a servant or employee from his or her principal and aggregates $950 or more in any consecutive 12-month period; d) When the property is taken from the person of another; or, e) When the property taken is, among other things, an automobile, horse or firearm. Provides that if the grand theft involves the theft of a firearm, it is punishable by AB 2372 Page 2 imprisonment in state prison for 16 months, 2 or 3 years. (Penal Code Section 489.) 4)Provides that in all other cases, grand theft is punishable by imprisonment in county jail for not more than one year or in the state prison. (Penal Code Section 489.) 5)Provides that theft in other cases is petty theft. (Penal Code Section 488.) 6)States that petty theft is punishable by a fine not exceeding $1,000; by imprisonment in the county jail not exceeding six months; or both. (Penal Code Section 490.) 7)Provides that any person who enters specified buildings, including a vehicle, railroad car, locked or sealed cargo container, whether or not mounted on a vehicle, with intent to commit grand or petty theft or any felony is guilty of a burglary. (Penal Code Section 459.) FISCAL EFFECT : Unknown COMMENTS : 1)Author's Statement : According to the author, "Existing law sets the minimum threshold for grand theft at $400. This amount has not been indexed for inflation and has not been adjusted since 1982. Last year, we adjusted the threshold for 39 property crimes but did not adjust grand theft. Grand theft was established as a crime in 1867 for crimes involving more than $50. That figure was first adjusted in 1923 and increased to $200. According to the United States Department of Labor's Consumer Price Index, the $200 threshold established in 1923 if adjusted for inflation would be $2,534 in 2010. The $400 level established in 1982 would be around $900 today. AB 2372 adjusts the threshold amount for the first time in a generation, taking into consideration these inflationary factors, and sets the amount at $950. Leaving the grand theft threshold itself unchanged undermines the impact of the other property crimes adjustment because the crimes could alternatively be charged as grand theft. In 2009, the Department of Corrections estimated savings of $68.4 million dollars for the 2010/11 Budget if all property crimes were adjusted for inflation. Leaving the grand theft threshold unchanged undermines these savings. The Department AB 2372 Page 3 estimates there will be 2,152 fewer defendants sent to state prison for these property crimes by December 2011 if AB 2732 is enacted into law." 2)Threshold Value for Grand Theft Has Not Been Raised Since 1982 : The current threshold amount to constitute grand theft (a taking or loss in excess of $400) was established in the 1982-83 Legislative Session. (Chapter 375, Statutes of 1982.) The previous amount of $200 was established in 1923; up to that time, the threshold amount was $50. As measured by the change in the Consumer Price Index, goods or services with a value of $400 today were worth only $184 in 1983. Expressed another way, goods with a value of $400 in 1983 are worth $870 today. Thus, many crimes that qualify as grand theft today would not have been grand theft in 1983. Theft of property worth $870 in 2010 dollars (for example, a leather coat) could not have been grand theft in 1983 when the current theft thresholds took effect. 3)Related Legislation : SBx3 18 (Ducheny), Chapter 28, Statutes of 2009, increased the threshold amount for thefts of specified agricultural goods and specified aquacultural products from $100 to $250. SBx3 18 also increased the threshold amount of thefts of money, labor, or real or personal property taken by an agent, servant, or employee from $400 to $950. 4)Prior Legislation : a) AB 2705 (Goldberg), of the 2003-04 Legislative Session, would have increased the threshold for grand theft from $400 to $1,000 and the threshold amount for specified thefts from $100 to $250. AB 2705 was vetoed. b) AB 2668 (DeVore), of the 2007-08 Legislative Session, would have included theft or vandalism of fire equipment within the definition of grant theft. AB 2668 failed passage in this Committee. c) AB 2827 (Runner), Chapter 105, Statutes of 2008, added defrauding a public housing authority to the definition of grand theft. REGISTERED SUPPORT / OPPOSITION : AB 2372 Page 4 Support American Civil Liberties Union California Coalition for Women Prisoners California Public Defenders Association Opposition California Grocers Association Analysis Prepared by : Milena Nelson / PUB. S. / (916) 319-3744