BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair SB 930 (Berryhill) - Aggravated arson. Amended: March 28, 2014 Policy Vote: Public Safety 7-0 Urgency: Yes Mandate: Yes Hearing Date: April 28, 2014 Consultant: Jolie Onodera This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 930, an urgency measure, would reenact the monetary threshold damage provision of the aggravated arson statute until January 1, 2019, and adjust the threshold amount from $6.5 million to $7 million to reflect the effects of inflation. Fiscal Impact: Potentially significant future annual General Fund costs to the extent the reenacted aggravated arson provision results in longer prison terms than otherwise would have occurred under the existing arson statutes. The additional state costs would not be incurred until after the base term of the arson sentence would have been served, the enhancement, or both. Three offenders have been sentenced to life terms with the possibility of parole under the aggravated arson provision over the past four years, with two convictions most recently in 2013. By extending the sunset of this provision and adjusting the threshold amount, if one person every other year during the reenactment period (5 years) receives an aggravated arson sentence for excess damages, the annual cost in 20 years, assuming a maximum term of 14 years under existing arson statutes, would exceed $90,000. Background: Existing law defines the crime of aggravated arson, and makes a person guilty of that crime if the person has been previously convicted of arson on one or more occasions within the past 10 years, or if the fire caused damage to, or the destruction of, five or more inhabited structures. In addition, existing law, until January 1, 2014, made a person guilty of aggravated arson if the fire caused property damage and other losses in excess of $6.5 million and specified the costs of fire SB 930 (Berryhill) Page 1 suppression to be included in calculating the amount of property damage and other losses for purposes of that provision (Penal Code (PC) § 451.5(a)(2)). A conviction under the aggravated arson statute is punishable by 10 years-to-life in state prison. The Department of Corrections and Rehabilitation (CDCR) has reported five commitments to state prison over the past eight years (and two commitments in 2013) under the aggravated arson provision specified in this measure. All individuals were sentenced to life terms with the possibility of parole. Proposed Law: This bill would reenact the monetary threshold damage provision of the aggravated arson statute until January 1, 2019, and would update the threshold amount from $6.5 million to $7 million to account for inflation utilizing the Consumer Price Index inflation calculation from the United States Department of Labor, Bureau of Labor Statistics. This bill contains an urgency clause stating that, "in order to restore a valuable deterrent to arson-caused fires and convict dangerous arsonists who cause extensive property damage and pose an immediate threat to public safety, it is necessary that this act take effect immediately." Related Legislation: AB 27 (Jeffries) Chapter 71/2009 extended the January 1, 2010, sunset date to January 1, 2014, on the monetary threshold damage provisions of the aggravated arson statute, and adjusted the amount, per legislative intent contained in the underlying statute, from $5.6 million to $6.5 million, to reflect the effects of inflation. AB 1995 (Jeffries) 2008 would have increased the threshold damage provisions of the aggravated arson statute from $5.6 million to $6.5 million, to account for inflation since 2004. This bill would have extended the repeal date for the provisions relating to property damage to January 1, 2014. This bill was held on the Suspense file of this committee. AB 1907 (Pacheco) Chapter 135/2004 increased the threshold damage provisions of the aggravated arson statute from $5 million to $5.6 million, to account for inflation and extended the repeal date for the specified provision for five years to January 1, 2010. SB 930 (Berryhill) Page 2 Staff Comments: Existing law provides that arson under various circumstances is punishable by imprisonment in state prison for terms ranging from 16 months to nine years (PC §§ 451(a)-(d)). Further, any person convicted of arson may be punished by a three, four, or five-year enhancement under specified circumstances (PC § 451.1). The fiscal impact of reenacting the aggravated arson statute specified in this measure will be dependent on the details of each future arson case and the decisions of individual judges in sentencing hearings. In the absence of the reenactment of this provision, the court would no longer be able to sentence an individual beyond the base term plus any applicable enhancements, assuming the arson did not otherwise qualify as an aggravated arson case under existing law. By giving judges the discretion provided under the aggravated arson statute to impose a term of 10 years-to-life in prison, there is a potential for lengthier prison sentences, which would be a future cost to the General Fund. Costs would be incurred after the base term and any enhancements for arson have been served and the extended aggravated arson term in excess of the arson sentence begins. The U.S. Supreme Court has ordered the CDCR to reduce prison crowding to 137.5 percent of the prison system's design capacity by February 28, 2016. Although public safety realignment has achieved significant reductions in the prison population, and the 2014-15 Governor's Budget projects meeting the population cap in the near-term, the analysis by the Legislative Analyst's Office suggests that CDCR's long-term prison caseload will likely exceed this cap. Because California's institutions already exceed the population limit, any near-term and future increases to the state's prison population would likely require the state to pursue one of several options including contracting-out for additional bed space or releasing current inmates early onto parole. The cost for in-state contracted bed space is estimated at approximately $31,000 per bed per year based on estimates reflected in the 2014-15 Governor's Budget, however it should be noted that the costs may be higher if the inmates in contracted bed space have significant physical or mental health needs. SB 930 (Berryhill) Page 3 The CDCR has indicated three convictions for aggravated arson have occurred over the past four years, with two convictions occurring in 2013. All individuals were sentenced to life terms with the possibility of parole. Assuming one person is convicted every other year of aggravated arson during the reenactment period (2014-2019), in 20 years the state could incur additional incarceration costs of over $90,000. This estimate assumes that in the absence of this measure, the maximum sentence for arson including enhancements of 14 years (9 year base term plus 5 year enhancement) would have been served.