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  







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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  








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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  








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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  








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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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