BILL ANALYSIS AB 2372 Page 1 ASSEMBLY THIRD READING AB 2372 (Ammiano) As Amended March 11, 2010 Majority vote PUBLIC SAFETY 5-2 APPROPRIATIONS 11-4 ----------------------------------------------------------------- |Ayes:|Ammiano, Beall, Hill, |Ayes:|Fuentes, Ammiano, | | |Portantino, Skinner | |Bradford, | | | | |Charles Calderon, Coto, | | | | |Davis, | | | | |De Leon, Hall, Norby, | | | | |Skinner, Torlakson | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Hagman, Gilmore |Nays:|Conway, Harkey, Miller, | | | | |Nielsen | ----------------------------------------------------------------- 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. 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. 3)Provides that notwithstanding the value of the property taken, grand theft is committed in any of the following cases: 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; AB 2372 Page 2 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 imprisonment in state prison for 16 months, 2 or 3 years. 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. 5)Provides that theft in other cases is petty theft. 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. 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. FISCAL EFFECT : According to the Assembly Appropriations Committee analysis, significant annual General Fund savings in the range of $40 million as a result of fewer first-time felony state prison commitments. Based on the 4,800 persons committed to state prison in 2007 and 2008 for grand theft, if this bill reduced this number by 33%, based on an average time served of 12 months, annual savings would be in the range of $37 million. There would be a corresponding nonreimbursable increase in local jail costs to the extent that offenses that would have been charged as a felony - and punishable by state prison - are now charged as misdemeanors - punishable by up to six months in county jail and/or a fine of up to $1,000. These local costs would be about one-half the potential state savings, offset to a degree by increased fine revenue. The effect of this bill on repeat offenders would be minimal as a person convicted of petty theft, who has a prior petty theft conviction and served time for that conviction, may be charged with a felony, punishable by up to one year in county jail, or by 16 months, 2, or 3 years in state prison. AB 2372 Page 3 Last year, the budget conference committee proposed a similar adjustment to the basic grand theft threshold. Ultimately, however, this proposal was shelved, even though a series of related property crime thresholds were adjusted for inflation. As a result, $34 million in budget savings was scored, though because the basic grand theft statute was not increased, and because the related property crimes can also be charged under the grand theft statute, the savings did not materialize. COMMENTS : 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 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." Please see the policy committee for a full discussion of this bill. Analysis Prepared by : Milena Nelson / PUB. S. / (916) 319-3744 FN: 0004235