BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 24|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 24
Author: Oropeza (D), et al
Amended: 6/11/09 in Assembly
Vote: 21
SENATE PUBLIC SAFETY COMMITTEE : 7-0, 4/21/09
AYES: Leno, Benoit, Cedillo, Hancock, Huff, Steinberg,
Wright
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 36-0, 5/11/09 (Consent)
AYES: Aanestad, Alquist, Ashburn, Benoit, Cogdill,
Corbett, Correa, Cox, Denham, DeSaulnier, Ducheny,
Dutton, Florez, Hancock, Harman, Hollingsworth, Huff,
Kehoe, Leno, Liu, Lowenthal, Maldonado, Negrete McLeod,
Oropeza, Padilla, Pavley, Romero, Runner, Steinberg,
Strickland, Walters, Wiggins, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Calderon, Cedillo, Simitian, Vacancy
ASSEMBLY FLOOR : 74-0, 7/9/09 (Consent) - See last page for
vote
SUBJECT : Reporting and monitoring cargo theft
SOURCE : Los Angeles County Sheriff
DIGEST : This bill eliminates the sunset on a law that
defines cargo theft as a separate, and separately
monitored, form of grand theft.
CONTINUED
SB 24
Page
2
Assembly Amendments made a minor change limiting the
provisions to just Section 487 of the Penal Code.
ANALYSIS : Existing law, until January 1, 2010, provides,
subject to exceptions, that every person who steals, takes,
or carries away cargo of another, as defined, when the
cargo taken is of a value exceeding $400, is guilty of
grand theft.
This bill eliminates the sunset clause on the crime of
cargo theft, a separately defined form of grand theft.
This bill clarifies that the elements of cargo theft are
the same as the elements of grand theft as defined in Penal
Code Section 487.
Background
Tracking Cargo Theft . As reported on June 23, 2008, in
Drug Topics, a periodical for pharmacists, Ryan Toole,
supervisory special agent in the FBI's Violent Crimes and
Major Offenders Section, explained that in 2006 Congress
mandated separate tracking of cargo theft in police
reports. Cargo thefts are reported to the FBI's Uniform
Crime Reports system. Previously, an officer recovering an
18-wheeler leaving a port with millions of dollars' worth
of goods would report it simply as a recovered vehicle, the
same as if it were a passenger car. Toole noted that an
FBI effort to educate police officers in reporting on the
new system has resulted in sophisticated sharing of
information among agencies.
The statutory citations for cargo theft under federal law,
and the requirements for reporting cargo theft under the
Uniform Crime Reports, are set out above in "Existing Law."
Federal Bureau of Investigation Cargo Theft Priorities .
According to an article from 2006 on the FBI website:
Cargo theft is estimated to cost the U.S. $15-30
billion a year, though the true measure may be even
higher, since some businesses are reluctant to report
CONTINUED
SB 24
Page
3
thefts out of concern for their reputations or their
insurance premiums. Thieves' methods vary, but the
outcome is generally the same a load of merchandise
leaves Point-A and never arrives at Point-B.
"Cargo theft is our number-one priority in Major
Theft," says Unit Chief Eric B. Ives, who heads the
Major Theft Unit in the FBI's Criminal Investigative
Division. "There's never been a time when there's not
enough work."
The issue is much broader than a criminal stealing a TV
off a truck. In the past few years, investigations
have revealed more and more sophisticated operations
with well-organized hierarchies. The typical "criminal
enterprise," as Ives describes it, has a leader who
runs a regional or national operation. Beneath him are
cells of thieves and brokers, or fences, who unload the
stolen goods on the black market. "Lumpers" physically
move the goods, along with drivers. And there's
usually a specialist who is expert at foiling the
anti-theft locks on truck trailers.
Cargo thieves heist whole truck loads of merchandise
the average freight on a trailer is valued between
$12,000 and $3 million. The hotspots are where you
might expect truck yards, hubs for commercial freight
carriers, and port cities.
To fight the problem, seven cargo theft task forces,
made up of FBI agents and local law enforcement,
operate in six cities: Memphis, Houston, Newark, New
York, San Juan, and Miami, which has two.
Investigations are aimed at toppling whole operations.
"While causing a disruption to the criminal operation
is important, the ultimate goal of the FBI is to
completely dismantle the criminal enterprise," Ives
says.
Some undercover investigations may last more than a year
and involve setting up front warehouses to fence stolen
merchandise. Private industry support is critical in long
term investigations. "They know that if we can reduce
CONTINUED
SB 24
Page
4
cargo theft by taking out the criminal enterprise it
benefits them," Ives says.
The Port of Los Angeles and Port of Long Beach are the
First and Second Busiest Container Ports in the U.S.
Respectively . According to the Port Website, the Port of
Los Angeles handles nearly $190 billion worth of cargo
annually. The Port of Long Beach typically handles well
over $100 billion worth of cargo annually. ($140 billion
in 2007.) Various tracking reports list Los Angeles and
Long Beach (in that order) as the two busiest container
ports in the United States. Essentially, a large portion
of the foreign goods entering commerce in the United States
passes through Southern California Ports. The volume of
material that must be moved through the port presents
serious security, smuggling and theft concerns. Arguably,
tracking cargo theft demonstrates success, or lack thereof,
in securing the ports.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 5/9/09)
Los Angeles County Sheriff (source)
Alameda County Sheriff's Department
Butte County Sheriff's Department
California District Attorneys Association
California Peace Officers' Association
California Police Chiefs Association
California Retailers Association
California State Sheriffs' Association
El Dorado County Sheriff's Department
Harbor Association of Industry and Commerce
Inyo County Sheriff's Department
LAX Coastal Area Chamber of Commerce
League of California Cities
Long Beach Police Officers Association
Shasta County Sheriff's Department
South Bay Association of Chambers of Commerce
ARGUMENTS IN SUPPORT : According to the author's office
states, since AB 1814 (Oropeza), Chapter 515, Statutes of
CONTINUED
SB 24
Page
5
2004, was passed, law enforcement has been able to
accurately track cargo theft which has built the case to
receive Federal Homeland Security dollars. With this law's
proven success, a sunset at the end of this year is not in
California's best interest. This bill reauthorizes the law
and will continue to assist in providing much needed
resources to the protection of our ports.
Prior to AB 1814, there was no standard classification for
cargo that was stolen from a trailer, rail car, or storage
container at ports in the state. The crime could be
classified as any number of different felony crimes
(burglary, robbery, larceny, grand theft, etc.) depending
on the circumstances. Without a standard classification,
it became difficult to track the seriousness of the crime.
On a nation level, it is estimated $10 to $15 billion of
cargo is stolen annually. Further, as 42 percent of all US
International container trade enters this country through
the Long Beach/Los Angeles ports, we must provide the best
security to ensure the nation's commerce can move freely in
and out of California's ports.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Brownley, Buchanan, Caballero, Carter, Chesbro, Conway,
Cook, Coto, Davis, De La Torre, De Leon, DeVore,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber,
Huffman, Jeffries, Knight, Lieu, Logue, Bonnie Lowenthal,
Ma, Mendoza, Miller, Monning, Nestande, Niello, Nielsen,
John A. Perez, V. Manuel Perez, Portantino, Ruskin,
Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra
Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Villines, Yamada, Bass
NO VOTE RECORDED: Charles Calderon, Duvall, Jones,
Krekorian, Nava, Vacancy
RJG:do 7/9/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
CONTINUED
SB 24
Page
6
**** END ****
CONTINUED