BILL ANALYSIS                                                                                                                                                                                                    







                      SENATE COMMITTEE ON PUBLIC SAFETY
                           Senator Carole Migden, Chair              S
                             2005-2006 Regular Session               B

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          SB 1495 (Battin)                                           5
          As Amended March 27, 2006 
          Hearing date:  April 18, 2006
          Penal Code
          JM:br



                      IDENTITY THEFT WHERE THE VICTIM IS A MINOR  


                                       HISTORY


          Source:  California District Attorneys Association

          Prior Legislation: SB 346 (Battin) - failed passage in Senate  
          Public Safety Committee

          Support:           AB 425 (Poochigian) - 2003; held at Assembly  
          Desk
                       AB 1131 (Jackson) - Ch. 543, Stats. 2003
                       AB 1155 (Dutra) - Ch. 907, Stats. 2002
                       AB 1773 (Wayne) - Ch. 908, Stats. 2002
                       SB 1254 (Alpert) - Ch. 254, Stats. 2002
                       SB 125 (Alpert) - Ch. 493, Stats. 2001
                       AB 1949 (Hertzberg) - 2000; vetoed
                       AB 1897 (Davis) - Ch. 956, Stats. 2000
                       AB 1862 (Torlakson) - Ch. 632, Stats. 2000
                       AB 156 (Murray) - Ch. 768, Stats. 1997
                       SB 374 (Leslie) - Ch. 488, Stats. 1998
                       SB 245 (Wyland) - Ch. 478, Stats. 2001
                       SB 168 (Bowen) - Ch. 720, Stats. 2001




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                                                           SB 1495 (Battin)
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          Opposition:None known




                                        KEY ISSUES
           
          EXISTING LAW (PENAL CODE SECTION 530.5 (a)) PROVIDES THAT ANY PERSON  
          WHO, WITHOUT CONSENT, USES THE PERSONAL IDENTIFYING INFORMATION OF  
          ANOTHER PERSON FOR ANY UNLAWFUL PURPOSE, INCLUDING TO OBTAIN GOODS,  
          SERVICES OR MEDICAL INFORMATION, OR ATTEMPTS TO OBTAIN SUCH THINGS,  
          IS GUILTY OF AN ALTERNATE FELONY-MISDEMEANOR, WITH A FELONY SENTENCE  
          OF 16 MONTHS, 2 YEARS OR 3 YEARS IN PRISON.

          WHERE THE VICTIM OF THIS CRIME IS A MINOR, SHOULD THE TERM FOR THE  
          FELONY BE INCREASED TO A PRISON TERM OF 2, 3 OR 4 YEARS?

          SHOULD THE INCREASED PENALTY FOR IDENTITY THEFT WHERE THE VICTIM IS  
          A MINOR BE PLACED IN A STAND-ALONE SECTION?


                                       PURPOSE
          
          The purpose of this bill is to provide that where a defendant  
          commits the alternate felony- misdemeanor of using another  
          person's identity to obtain goods, services or medical  
          information and the victim is a minor, the punishment for the  
          felony shall be a prison term of 2, 3 or 4 years.
          
           Existing law  generally defines theft as the taking of the  
          property of another with the intent to permanently deprive the  
          owner of the property.  (Pen. Code  484.)

           Existing law  provides that grand theft is committed when the  
          property taken is valued in excess of $400, except as specified.  
           (Pen. Code  487, subd. (a).)

           Existing law  provides, with specified exceptions, that grand  




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          theft is an alternate felony-misdemeanor, punishable by  
          imprisonment in county jail for not more than one year, a fine  
          of up to $1000, or both, or by imprisonment in a state prison  
          for 16 months, 2 or 3 years and a fine of up to $10,000.  (Pen.  
          Code  489.)

           Existing law  provides that petty theft (generally theft of  
          property with a value of $400 or less is a misdemeanor,  
          punishable by a fine not exceeding $1000, imprisonment in the  
          county jail not exceeding six months, or both.  Theft not  
          exceeding $50 in value can be prosecuted as an infraction of a  
          misdemeanor where the defendant has not previously been  
          convicted of theft or a theft-related crime.  (Pen. Code  488,  
          490 and 490.1.)

           Existing law  includes the alternate felony-misdemeanor of  
          receiving stolen property (of any value).  A prosecutor can  
          charge receiving stolen property as a straight misdemeanor where  
          the value of the property does not exceed $400.  (Pen. Code   
          496.)  

          Existing law  provides that any person who alters, forges,  
          falsifies, duplicates, possesses or displays any driver's  
          license or government-issued identification, with the intent  
          that the document be used to facilitate or commit a forgery, is  
          guilty of forgery, an alternate felony-misdemeanor, punishable  
          by imprisonment in the county jail for up to 1 year and/or a  
          fine of up to $1000, or imprisonment in the state prison for 16  
          months, 2 years or 3 years and a fine of up to $10,000.  (Pen.  
          Code  470a and 470b.)  
           
           Existing law  includes a number of theft crimes and provisions  
          concerning access cards and access card accounts.  (Pen. Code   
          484d, 484e, and  484j.)

           Existing law  provides that a person who, intending to deceive,  
          manufactures, sells, et cetera, a purported birth or baptismal  
          certificate, is guilty of an alternate felony-misdemeanor.  Any  
          person who possesses a birth or baptismal certificate  




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          (counterfeit or genuine) with the intent to conceal his or her  
          identity or to represent himself or herself as the person named  
          in the document is guilty of a misdemeanor.  (Pen. Code  529a.)

           Existing law  provides that any person who falsely impersonates  
          another person in his or her private or official capacity is  
          guilty of an alternate felony-misdemeanor.  (Pen. Code  529.)

           Existing law  provides that it is an alternative  
          felony-misdemeanor for a person to willfully obtain the personal  
          identifying information of another person and to use such  
          information to obtain, or attempt to obtain, credit, goods, or  
          services in the name of the other person without consent.  This  
          alternate felony-misdemeanor is punishable by up to 1 year in  
          the county jail, a fine of up to $1000, or both, or by  
          imprisonment in state prison for 16 months, 2 years or 3 years  
          and a fine of up to $10,000.  (Pen. Code  530.5.)

           Existing law  provides that possession or retention of the  
          identifying information of another person with the intent to  
          defraud is a misdemeanor, punishable by imprisonment in a county  
          jail for up to 1 year, a fine of up to $1000, or both.  Where  
          the victim is a deployed member of the military (armed forces or  
          reserves), the maximum fine is $2000.  (Pen. Code  530.5, subd.  
          (d).)

           Existing law  defines "personal identifying information" thusly:

           Names, addresses and the like:  victim's name or address,  
            victim's mother's maiden name, place of employment, date of  
            birth.
           Identifying or associated numbers:  telephone, driver's  
            license, social security, employee identification, bank  
            account, credit card number, health insurance, taxpayer  
            identification, federal driver's license, school  
            identification, account, PIN (personal identification number),  
            password, alien registration, passport.
           Unique biometric or similar data:  fingerprints, facial scans,  
            voiceprints, retina or iris images, other unique physical  




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            representation.
           Unique electronic data:  (electronic) identification number,  
            address, or routing code, telecommunication identifying  
            information or access devices.  (Pen. Code  530.5, subd.  
            (b).)

           Existing law  provides that any person who agrees with another  
          person to commit a crime, or specified other acts, and takes any  
          overt act towards its commission is guilty of conspiracy.  A  
          person convicted of felony conspiracy to commit identity theft  
          can be fined up to $25,000.  (Pen. Code  182.)

           Existing law  provides that where the victim of identity theft  
          (involving the improper use of identifying information to obtain  
          goods et cetera) is an elder or dependent adult, and the amount  
          of loss exceeds $400, the crime is an alternate  
          felony-misdemeanor, with a felony penalty of 2, 3, or 4  years  
          in prison.  (Pen. Code  368, subds. (d)-(e).)

           This bill  creates a new form of the alternate felony-misdemeanor  
          of use of another's personal identifying information to obtain  
          goods, services or medical information where the victim is a  
          minor.  The only element that is different in the new crime is  
          the age of the victim.

           This bill  provides that the felony penalty for the new form of  
          identity theft is 2, 3, or 4 years in prison.

                                      COMMENTS

          1.  Need for This Bill
           
          According to the author:

              Identity thieves are increasingly targeting children  
              - the thieves are parents, family members and  
              strangers.  Currently, child identity theft makes up  
              4% of the total identity theft complaints.  In 2003,  
              6,512 identity theft reports were filed on behalf of  




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              victims under 18 years old.  Last year, the number  
              was 11,601.  The Identity Theft Resource Center  
              estimates that two-thirds of child identity theft  
              cases involve relatives.

              Children are an ideal target because a child's social  
              security number is often not used until the child  
              reaches their teens, at which point the damage is  
              already done.  MSNBC.com's, The Red Tape Chronicles,  
              reported on the problem in a February 10, 2006  
              article,  Do you know where your child's SSN is?    
              After this article was posted, 43 readers responded,  
              below are three from California in summary.

               San Diego, CA
              Son's SSN number was used by another student for  
              school/insurance purposes.




                  Fountain Valley, CA
              Employee with a health insurance company, staff sees  
              duplicate SSN frequently, their only recourse is to  
              call the subscribers and inform them about the  
              duplicate entry and encourage them to contact their  
              local Social Security Office.

                  Southern CA
              Parents used her husband's SSN to get a telephone  
              line when he was a child in the 80s and did not pay  
              his bill.  To date the issue has not been resolved  
              and the couple has a phone line under her maiden  
              name.









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              Under all circumstances of identity theft the victim  
              is put into a difficult situation - this situation is  
              made worse when the victim is a child and even more  
              difficult when the offender is a parent.  Parental  
              identity theft is a tough crime for authorities to  
              prosecute.  Once the victim becomes of age, most  
              young adults know it is wrong and realize the  
              ramifications of what has been taken from them.  But,  
              the perpetrator is still a parent and the  
              parent-child bond often prevents the child from  
              filing a complaint.  The child may feel guilty about  
              prosecuting their own parent, especially if the  
              parent used the accounts or money to purchase items  
              for the child or provide other benefits for the child  
              such as cable TV, electricity, or cell phones.

          2.  Related Bill - SB 1387 (Poochigian) Creates a Two-Year  
            Enhancement (not a separate crime) where the Victim of  
            Fraudulent Use of Another's Identifying Information or  
            Possession of Identifying Information with Intent to Defraud  
            was a Minor  

          SB 1387 (Poochigian) - also before this Committee on April 18,  
          2006 - defines a new two-year sentence enhancement that applies  
          where the defendant is convicted of identity theft and the  
          victim was a minor, a senior (65 years or older), a dependent  
          adult or a member of the armed services.  This bill (SB 1495)  
          defines a new crime that includes all of the elements of use of  
          personal information to obtain goods, services or medical  
          information, with the additional element that the victim is a  
          minor.

          The new offense defined by this bill is an alternate  
          felony-misdemeanor, with a prison triad (lower, middle or upper  
          term) of 2, 3 or 4 years.  Under existing law, the prison triad  
          for other forms of identity theft is a prison term of 16 months,  
          2 years or 3 years.   (However, when charged under Penal Code  
          Section 368 - elder abuse - identify theft where the victim is  
          an elderly person or dependent adult can be punished with a  




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          prison term of 2, 3, or 4 years.  Effectively, this bill  
          enhances the punishment for identity theft where the victim is a  
          minor by one year for each of the lower, middle or upper term.

          Unlike SB 1387, this bill does not increase punishment where the  
          defendant did not actually use the victim's personal identifying  
          information to obtain goods or services, but rather possessed or  
          retained the information with the intent to defraud.  As such,  
          SB 1387 has a broader application and imposes greater penalties  
          in comparison with this bill.  (SB 1387 would also make the  
          existing crime of possession of identifying information with  
          intent to defraud an alternate felony-misdemeanor.)

          It can be argued that creating a new crime for identity theft  
          against minors could cause problems in the development of the  
          law in future years.  In a common law jurisdiction such as  
          California, the law develops through appellate decisions over  
          time.  Where parallel forms of identity theft are separately  
          defined as crimes depending on the status of the victim, each  
          form of identity theft can develop separately over time.  This  
          can cause confusion for defendants, victims, attorneys and the  
          courts.  Fewer such problems arise where additional penalties  
          are imposed because of the status of the victim through  
          enhancements, as the underlying crimes do not change over time  
          for each class of victim.  Further, the Legislature may amend  
          one crime and not another, exacerbating any confusion from the  
          proliferation of crimes.  (Problems and confusion have arisen  
          from the existence of parallel provisions concerning special  
          penalties for crimes against the elderly and dependent persons  
          that are found in separate codes.)

          WHERE ADDITIONAL PENALTIES BASED ON THE STATUS OF THE VICTIM ARE  
          PRESCRIBED THROUGH THE CREATION OF SEPARATE CRIMES, RATHER THAN  
          THROUGH ENHANCEMENTS OF SENTENCE FOR A SINGLE UNDERLYING CRIME,  
          CAN CONFUSION AND CONFLICTS ARISE OVER TIME?

          3.  Policy Issues Raised by Prescribing Higher Penalties for  
            Identity Theft against Minors as Compared to Identity Theft in  
            which the Victim is an Adult  











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          It can be argued that minors are less vulnerable to financial  
          losses due to identity theft than adults because they typically  
          have less to lose.  An adult with children to support may be  
          particularly hard-hit by identity theft.  An adult may have  
          great difficulty obtaining home loans and mortgage lines of  
          credit, sources of funds that are particularly important in  
          today's economy.  The adult may not know his or her identity has  
          been stolen and his or her credit ruined until a crisis causes  
          him or her to seek a loan.

          The major harm to a minor may be harm to credit and other  
          problems, although the problems created by identity theft can be  
          very substantial.  Arguably, a minor's lack of resources subject  
          to loss could partially offset the harm caused to the person's  
          credit upon reaching adulthood.  As such, a minor is arguably no  
          more vulnerable than an adult victim of identity theft.

          SHOULD A SEPARATE ALTERNATE FELONY-MISDEMEANOR OF IDENTITY THEFT  
          BE DEFINED FOR CASES IN WHICH THE VICTIM IS A MINOR, AND SHOULD  
          THIS CRIME HAVE A HIGHER PENALTY?



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