BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1869 (Melendez) - Theft:  firearms
          
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          |Version: February 10, 2016      |Policy Vote: PUB. S. 6 - 1      |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: June 27, 2016     |Consultant: Jolie Onodera       |
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          This bill meets the criteria for referral to the Suspense File. 

          Bill  
          Summary:  AB 1869 would call for a special election to amend  
          Proposition 47 and make the theft of a firearm grand theft in  
          all cases, punishable by a state prison term, as specified.  
          Additionally, this bill provides that every person who buys or  
          receives a stolen firearm is guilty of an alternate  
          felony/misdemeanor offense punishable by imprisonment in the  
          county jail for up to one year, or by imprisonment in the county  
          jail or state prison for 16 months, two years, or three years,  
          as specified.


          Fiscal  
          Impact:  
            Ballot costs  :  One-time costs in the range of $414,000 to  
            $552,000 (General Fund) to the Secretary of State (SOS) for  
            printing and mailing costs to place the measure on the ballot  
            in the next statewide election. 
            State prisons  :  To the extent the voters approve the  
            amendments to the Proposition, significant increase in state  








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            incarceration costs potentially in the millions of dollars  
            (General Fund) annually for (1) felony convictions for theft  
            of a firearm, (2) felony convictions for receipt of a stolen  
            firearm for persons with a current or prior serious or violent  
            felony conviction, and (3) potential future violations of the  
            lifetime firearms ban imposed for these felony convictions  
            that otherwise may have been charged as misdemeanors. Staff  
            notes commitments to state prison for both (1) theft of a  
            firearm and (2) receipt of stolen property as a principal  
            offense decreased by about 70 percent after passage of  
            Proposition 47. To the extent some defendants continue to be  
            committed to prison for other felony convictions, while not  
            resulting in new commitments, this bill could result in longer  
            prison sentences for these cases.           
            County jails  :  To the extent the voters approve the amendments  
            to the Proposition, potentially major increase in  
            non-reimbursable local costs (Local Funds) for felony jail  
            sentences for receipt of stolen property violations that  
            previously would have been subject to misdemeanor penalties,  
            offset in minor part due to fewer jail terms for petty theft  
            of a firearm that would be subject to a state prison term. 
            Reduction in Proposition 47 savings  :  Potential reduction in  
            future funds allocated to the Safe Neighborhoods and Schools  
            Fund (SNSF) to the extent raising the criminal penalties for  
            the specified firearm offenses results in a reduction in  
            future calculated savings under Proposition 47 by the  
            Department of Finance.
            Department of Justice (DOJ)  :  Potentially significant increase  
            in DOJ administration and enforcement costs in the hundreds of  
            thousands of dollars (Special Fund*) due to increases to the  
            Armed Prohibited Persons System (APPS) list resulting from the  
            expanded application of the lifetime firearms prohibition.
           
           *Dealers Record of Sale Special Account (DROS) - Staff notes the  
          DROS is structurally imbalanced, with less than a $1 million  
          reserve balance projected by year-end FY 2016-17. Current  
          revenues to the DROS Account may be insufficient to cover the  
          costs of this bill in conjunction with the numerous other  
          legislative measures requiring funding from the DROS Account,  
          should they be enacted. As a result, an appropriation from an  
          alternate fund source, potentially the General Fund, may be  
          required to support the costs of this measure. 









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          Background:  Proposition 47, also known as the Safe Neighborhoods and  
          Schools Act, was approved by the voters in November 2014.  
          Proposition 47 reduced the penalties for certain drug and  
          property crimes and directed that the resulting state savings be  
          directed to mental health and substance abuse treatment, truancy  
          and dropout prevention, and victims' services. The initiative  
          reduced the penalties for theft, shoplifting, receiving stolen  
          property, writing bad checks, and check forgery valued at $950  
          or less from felonies to misdemeanors. The measure limited the  
          reduced penalties to offenders who do not have prior convictions  
          for serious or violent felonies and who are not required to  
          registered sex offenders. 
          Grand Theft of a Firearm 
          Proposition 47 added Penal Code § 490.2, which by virtue of  
          specifically defining petty theft, narrowed the pre-existing  
          provisions that constituted grand theft, as follows:  
          "Notwithstanding Section 487 or any other provision of law  
          defining grand theft, obtaining any property by theft where the  
          value of the money, labor, real or personal property taken does  
          not exceed nine hundred fifty dollars ($950) shall be considered  
          petty theft and shall be punished as a misdemeanor ?.." (PC §  
          490.2 (a).) In other words, Proposition 47 put in a blanket $950  
          threshold for conduct to be classified as grand theft.  
          Previously, there were a number of carve-outs which constituted  
          grand theft based on the conduct involved, the manner in which  
          the crime was committed, or the type of property stolen,  
          irrespective of its value. Because the new statute specifically  
          includes the phrase, "Notwithstanding Section 487," it  
          supersedes all of Penal Code § 487, including subdivision  
          (d)(2), which specifies that grand theft occurs when the  
          property taken is a firearm. 


          Receipt/Purchase of a Stolen Firearm
          Under existing law, knowingly purchasing or receiving any stolen  
          property is an alternate felony-misdemeanor, punishable by  
          imprisonment in a county jail for not more than one year, or by  
          imprisonment in county jail or state prison for 16 months, two  
          or three years. Prior to the passage of Proposition 47, in cases  
          where the value of the property did not exceed $950, the  
          district attorney or grand jury could specify in the accusatory  
          pleading that the offense shall be a misdemeanor. Proposition 47  








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          amended this section of law to specify that in all cases in  
          which the value of the property (including a firearm) does not  
          exceed $950, the offense shall be a misdemeanor, punishable only  
          by imprisonment in a county jail not exceeding one year, if such  
          person has no prior convictions for a serious or violent felony  
          or an offense requiring registration as a sex offender.


          Proposed Law:  
           This bill would call for a special election to amend  
          Proposition 47 and make the theft of a firearm grand theft in  
          all cases and punishable by a state prison term. Specifically,  
          this bill:  
           Declares that the theft of a firearm is grand theft in all  
            cases, punishable by imprisonment in the state prison for 16  
            months, or two or three years.

           States that every person who buys or receives a stolen firearm  
            is guilty of an alternate felony/misdemeanor offense  
            punishable by imprisonment in the county jail for a period of  
            not more than one year, or by imprisonment in the county jail  
            for 16 months, two or three years (or state prison in the  
            defendant has a current or prior serious or violent felony  
            conviction or a conviction for an offense requiring sex  
            offender registration).

           Calls for a special election to be held on November 8, 2016,  
            for voter approval of these provisions.

           Requires consolidation of the special election with the  
            statewide general election to be held on that date. Requires  
            the consolidated election be held and conducted in all  
            respects as if there were only one election, and only one form  
            of ballot shall be used.

          Related  
          Legislation:  AB 1176 (Cooper) 2016 is substantially similar to  
          this measure but additionally includes a provision specifying a  
          misdemeanor firearms violation results in a 10-year prohibition  
          from possession of a firearm. AB 1176 is pending on the Assembly  
          Floor.










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          AB 2854 (Cooper) 2016 is virtually identical to this measure. AB  
          2854 failed passage in the Assembly Committee on Public Safety.

          Prior Legislation:  AB 150 (Melendez) 2015 was virtually  
          identical to this measure. AB 150 was held on the Suspense File  
          of the Assembly Committee on Appropriations. 

          SB 452 (Galgiani) 2015 would have clarified that theft of a  
          firearm is grand theft and is punishable as a felony, as  
          specified. SB 452 was not set for hearing in this Committee.


          Staff  
          Comments:  
           Special Election
           The SOS has indicated that printing and mailing costs associated  
          with placing a measure on the statewide ballot are approximately  
          $69,000 per page, depending on the length of the ballot. This  
          fiscal estimate of $414,000 to $552,000 (General Fund) reflects  
          the costs for the addition of six to eight pages in the Voter  
          Information Guide. Actual costs would depend upon the length of  
          the title and summary, analysis by the Legislative Analyst's  
          Office, proponent and opponent arguments, and text of the  
          proposal.

           Theft of a firearm - grand theft in all cases
           By specifying the theft of a firearm is grand theft in all  
          cases, this bill could result in additional or longer  
          commitments to state prison. Data from the CDCR indicates a  
          reduction of over 70 percent (29 commitments in 2014, 8  
          commitments in 2015) in the number of commitments to state  
          prison for theft of a firearm as a principal offense. To the  
          extent this bill results in a comparable increase in commitments  
          to prison over the decrease experienced post-Proposition 47,  
          annual costs could increase by over $600,000 annually based on  
          the contract bed rate of $29,000 per inmate. To the extent the  
          defendants formerly committed for theft of a firearm as a  
          principal offense continue to be committed to prison under other  
          felony offenses would not result in new commitments but could  
          potentially result in longer prison sentences for these cases.

           Purchase or receipt of a stolen firearm








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           This bill increases the penalty for purchase or receipt of a  
          stolen firearm to an alternative felony/misdemeanor offense in  
          all cases, irrespective of the value of the stolen firearm,  
          punishable by up to one year in county jail or by 16 months, two  
          or three years in county jail or state prison dependent on the  
          defendant's criminal history. As a result, this bill could  
          result in cost increases to both state prisons and county jails  
          for felony convictions for violations that previously would have  
          been subject to a misdemeanor charge should the firearm be  
          valued under $950. 

          Data from the DOJ reflects a 47 percent decrease in felony  
          arrests for receipt of stolen property from 2014 (33,310  
          arrests) to 2015 (17,689 arrests), and over a 100 percent  
          increase in misdemeanor arrests over the same period. Likewise  
          felony convictions decreased by nearly 65 percent. Data from the  
          CDCR indicates a decrease of nearly 69 percent for commitments  
          to state prison for receipt of stolen property as a principal  
          offense (396 commitments in 2014, and 123 commitments in 2015).  
          Although the number of commitments specific to receipt of a  
          stolen firearm is unknown, it is likely some portion of these  
          offenses would be impacted. Assuming 20 percent of the reduction  
          in cases was attributable to stolen firearms, costs for state  
          incarceration could increase by about $1.6 million per year. To  
          the extent the percentage of cases is higher or lower, the  
          impact to state prison costs could vary greatly.    

           Lifetime firearms ban
           To the extent the two provisions above - theft of a firearm and  
          purchase/receipt of a stolen firearm - result in additional  
          felony convictions that otherwise would have been charged as  
          misdemeanors, this bill could have the effect of imposing the  
          lifetime firearms ban on a larger group of individuals. A  
          violation of the lifetime prohibition from firearms possession  
          is a felony.

          Local jails and state prisons will potentially incur cost  
          increases under the firearm prohibition provisions of this  
          measure to the extent new commitments to county jail and state  
          prison result from a greater number of felony violations of the  
          lifetime firearms ban in the future. Additionally, the DOJ will  
          incur administrative and enforcement costs to add and monitor  
          new cases to be added to the APPS list resulting from persons  








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          convicted of felony offenses that would subsequently be subject  
          to a lifetime ban on firearms possession/ownership.



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