BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2805 (Olsen) - Cargo theft: working group ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: August 4, 2016 |Policy Vote: PUB. S. 7 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 11, 2016 |Consultant: Jolie Onodera | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2805 would require the California Highway Patrol (CHP) to coordinate the California Agriculture Cargo Theft Prevention Working Group, as specified, to address issues including agriculture cargo theft prevention, problem solving, and theft control techniques. Fiscal Impact: CHP : Minor and absorbable ongoing costs (Special Fund*) to coordinate the activities of the working group. The CHP currently operates the Cargo Theft Interdiction Program (CTIP), which was created to provide statewide ongoing cargo theft suppression efforts. Working group activities : Major future cost pressure (Special Fund*/General Fund/Federal Funds) to support the authorized activities of the working group, including but not limited to the development of agriculture cargo theft prevention programs, as well as outreach, training, and potential upgrades to the existing CTIP statewide computerized AB 2805 (Olsen) Page 1 of ? information system to enable uniform statewide data reporting by participating counties. *Motor Carriers Safety Improvement (MCSI) Fund - Staff notes the MCSI Fund is structurally imbalanced and facing insolvency in FY 2017-18 with a projected reserve balance of $159,000 at year-end FY 2016-17. In the absence of changes to the level of current operating expenditures or an increase to the CTIP program fee imposed on vehicles subject to weight fees, funding from another source, potentially the General Fund or federal grant funds, may be required to support the activities authorized by this bill. Background: Existing law creates the Motor Carriers Safety Improvement Fund to cover the costs for the CHP to deter commercial motor vehicle cargo theft and provide security of highway carriers and cargoes throughout the state. (Revenue and Taxation Code §§ 7237, 7238.) Under existing law, a Cargo Theft Interdiction Program fee of $3 is required to be paid at the time of initial registration or renewal of registration of each motor vehicle subject to weight fees, as specified. The funds collected are then transferred to the Motor Carriers Safety Improvement Fund. (Vehicle Code § 9400.1(d)(1).) The CHP currently administers the Cargo Theft Interdiction Program (CTIP), which "was created to combat the ever increasing cargo theft problem. Over the past decade the cost of cargo theft related crimes has risen dramatically. It is estimated that combined losses suffered by the trucking industry, insurance companies, and the railroads, surpasses $10 billion in the United States annually. However, no financial total can adequately quantify the actual costs of cargo theft related losses which includes jobsite downtime, replacement of stole commercial vehicles, time spent on additional paperwork, and increased insurance costs?. In a state as large and diverse as California, each geographic region is unique as to the extent and type of problem solving being experienced. In some areas, efforts are already ongoing to address the cargo theft problem. In others, virtually nothing is being done in any coordinated manner. Because of these factors, the approach that will be taken in each region may be different; however, efforts will be made to establish regional teams that can serve as a proactive AB 2805 (Olsen) Page 2 of ? response to this type of crime." << https://www.chp.ca.gov/notify-chp/cargo-theft-interdiction-prog ram >> [as of August 7, 2016]. Under existing law, two regional programs administered by participating counties and interested industry groups, the Central Valley Rural Crime Prevention Program and the Central Coast Rural Crime Prevention Program, were established in 1996 and 2003, respectively, to develop crime prevention programs and crime control techniques unique to their regions. These programs are provided annual funding through a distribution formula to participating counties. Both regional programs were made permanent but permissive under 2011 Public Safety Realignment. This bill seeks to authorize an Agriculture Cargo Theft Prevention Working Group coordinated at the state level by the CHP to provide for coordination and communication between state and local law enforcement agencies and agricultural industry stakeholders. Proposed Law: This bill would establish the California Agriculture Cargo Theft Prevention Working Group, to be coordinated by the CHP, as follows: Provides that the working group may consist of volunteer members from the county offices of the agricultural commissioner, the interested district attorney, the interested sheriff, and the agricultural industry stakeholders of each participating county. Requires the working group to address issues, including, but not limited to, agriculture cargo theft prevention, problem solving, and theft control techniques. Provides that the working group may consult with experts, including, but not limited to, the Armed Forces of the United States, the Military Department, the Department AB 2805 (Olsen) Page 3 of ? of Justice, other law enforcement entities, and other state and private organizations in order to maximize the effectiveness of the working group. Authorizes the working group to develop cargo theft prevention programs, including a system for reporting agriculture cargo theft in a timely manner that enables the swift recovery of stolen goods and the apprehension of those responsible for the thefts. Authorizes the working group to develop a uniform procedure for all participating counties to collect, and authorizes each participating county to collect, data on agriculture cargo theft in order to evaluate the results of the working group's activities pursuant to this title. Includes codified legislative findings and declarations, as follows: o California has experienced an escalation in cargo theft crimes. o In 2015, agriculture cargo theft of nut products totaled more than $4 billion which is an increase of more than 85 percent over 2014. o The CHP is the statewide coordinator for combating cargo-related theft. o Local law enforcement agencies do not possess the jurisdictional authority, investigative facilities, or data systems to coordinate a comprehensive approach to the state's cargo theft problem. o The proliferation of agriculture cargo theft AB 2805 (Olsen) Page 4 of ? in the state is a threat to the vitality of our economy. Agriculture cargo theft, if left unchecked, endangers an industry that is vital to America's continued economic role in the world, and therefore requires a proactive response from the Legislature. o It is further the intent of the Legislature to authorize an Agriculture Cargo Theft Prevention Working Group in this title to provide for coordination and communication between state and local law enforcement agencies and agricultural industry stakeholders. Prior Legislation: AB 1468 (Committee on Budget) Chapter 26/2014, the public safety budget trailer bill, specified that commencing with the 2013-14 fiscal year, the Central Valley and Central Coast Rural Crime Prevention Programs are to receive 9.06425605 percent of a specified portion of the remaining amount deposited in the Enhancing Law Enforcement Activities Subaccount in the Local Revenue Fund 2011. SB 1023 (Committee on Budget and Fiscal Review) Chapter 43/2012, the public safety realignment budget trailer bill, extended the Central Valley Rural Crime Prevention Program and the Central Coast Rural Crime Prevention Program indefinitely, authorized the county sheriffs' departments to administer the programs, and made the specific provisions of the rural crime prevention programs voluntary instead of mandatory. SB 24 (Oropeza) Chapter 607/2009 revised the definition of grand theft to provide that every person who steals, takes, or carries away cargo of another, if the value of the cargo taken exceeds $950, except as specified, is guilty of grand theft. SB 44 (Denham) Chapter 18/2003 established the Central Coast Rural Crime Prevention Program, based on the Central Valley Rural Crime Prevention Program established in 1996. AB 2805 (Olsen) Page 5 of ? AB 2768 (Poochigian) Chapter 327/1996 established the California Rural Crime Prevention Program to enhance crime prevention efforts by establishing a pilot program to strengthen the ability of law enforcement agencies in rural areas to detect and monitor agricultural- and rural-based crimes. This program was later renamed the Central Valley Rural Crime Prevention Program in 2002. AB 1683 (Conroy) Chapter 1042/1996 enacted the Motor Carrier Safety Improvement Act of 1996, which among its provisions, transferred authority for the regulation of safety with respect to motor carriers of property from the Public Utilities Commission to the Department of Motor Vehicles and the CHP. AB 1683 established a permit fee on motor carriers of property comprised of a safety fee and a cargo theft interdiction fee, that would be available for appropriation for the purposes of the bill, and a business license tax fee, as specified. AB 813 (Conroy) Chapter 849/1993 provided funding to implement ongoing statewide cargo theft suppression efforts, which resulted in the creation of the Cargo Theft Interdiction Program (CTIP) to combat the increasing prevalence of cargo theft. Staff Comments: The CHP has indicated the effort to coordinate the working group can be absorbed within existing personnel resources. This bill authorizes the working group to develop a system for reporting agriculture cargo theft in a timely manner. Staff notes the development of a uniform statewide computerized information system that links regional operations for the reporting of cargo theft has already been completed for the existing CTIP. The CHP has indicated the existing system could be modified to meet the needs of the working group as specified in this bill. The potential costs of system modifications, including the necessary coordination, training, and outreach involved, is unknown at this time, but could be substantial. AB 2805 (Olsen) Page 6 of ? As noted above in the Fiscal Impact section of this analysis, the MCSI Fund, which the CHP utilizes to support its current cargo theft suppression efforts, is structurally imbalanced and facing insolvency in FY 2017-18, with a projected reserve balance of $159,000 at year-end FY 2016-17. Annual expenditures from the fund have averaged about $2.5 million, and annual revenues have been consistent over the past three years at $1.7 million. In the absence of changes to the level of operating expenditures or an increase to the $3 CTIP program fee imposed on vehicles subject to weight fees, funding from another source, potentially the General Fund or federal grant funds, may be required to support the activities authorized by this bill. Recommended Amendments: In the interest of code clarity, staff recommends an amendment to place the findings and declarations in an uncodified section of the bill. -- END --