BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2805 (Olsen) - Cargo theft: working group
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|Version: August 4, 2016 |Policy Vote: PUB. S. 7 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 11, 2016 |Consultant: Jolie Onodera |
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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
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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
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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
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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
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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.
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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.
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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.
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