BILL ANALYSIS                                                                                                                                                                                                    







                      SENATE COMMITTEE ON PUBLIC SAFETY
                             Senator Mark Leno, Chair                S
                             2009-2010 Regular Session               B

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          SB 1325 (Harman)                                           5
          As Amended April 12, 2010 
          Hearing date:  April 20, 2010
          Penal Code
          JM:mc

                               SPECIAL MANDATORY FINES:

                     THEFT OF AGRICULTURAL PRODUCTS OR EQUIPMENT  


                                       HISTORY

          Source:  Tulare County District Attorney

          Prior Legislation: None directly on point

          Support: California Peace Officers' Association; California  
                   Police Chiefs Association; California State Sheriffs'  
                   Association; California District Attorneys Association;  
                   California Chamber of Commerce 

          Opposition:California Attorneys for Criminal Justice


                                        KEY ISSUES
           
          WHERE A DEFENDANT HAS BEEN CONVICTED OF THEFT OF AGRICULTURAL  
          COMMODITIES OR EQUIPMENT FOR A SECOND TIME, SHOULD THE COURT BE  
          DIRECTED TO IMPOSE A SPECIAL FINE OF $5,000, IN ADDITION TO ANY  
          OTHER PENALTY AUTHORIZED BY LAW?

          WHERE A DEFENDANT HAS BEEN CONVICTED OF THEFT OF AGRICULTURAL  




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                                                           SB 1325 (Harman)
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          COMMODITIES OR EQUIPMENT FOR A THIRD TIME, SHOULD THE COURT BE  
          DIRECTED TO IMPOSE A SPECIAL FINE OF $10,000, IN ADDITION TO ANY  
          OTHER PENALTY AUTHORIZED BY LAW?



                                       PURPOSE

          The purpose of this bill is to require persons convicted of  
          repeated thefts of agricultural commodities or equipment to pay  
          enhanced fines, including a $5,000 fine for a second conviction  
          and a $10,000 fine for a third conviction, in addition to any  
          other punishment.
          
           Existing law  provides that theft occurs where a person does any  
          of the following:

                 Steals, takes ? or drives away the personal property of  
               another;  
                  Fraudulently appropriates property which has been  
               entrusted to him or her;  
                  Knowingly and designedly, by any false or fraudulent  
               representation or pretense, defrauds another person of  
               money, labor or personal or real property;  
                  Causes or procures others to report falsely of his or  
               her wealth or mercantile character and by thus imposing  
               upon any person, obtains credit and thereby fraudulently  
               gets or obtains possession of money, or property or obtains  
               the labor or service of another.  (Penal Code  484.)  

          Existing law  (Penal Code  487) generally provides that theft is  
          a misdemeanor where the value of the property, labor or services  
          involved in the theft does not exceed $400.  Theft is grand  
          theft - an alternate felony-misdemeanor - where the value of the  
          property, labor, or services involved in the theft exceeds $400.  


           Existing law  provides that the defendant committed grand theft  
          where he or she took the property of the following specified  
          kinds or value, or under the following circumstances:




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                                                           SB 1325 (Harman)
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                 Domestic fowls, avocados, olives, citrus or deciduous  
               fruits, other fruits, vegetables, nuts, artichokes, or  
               other farm crops are taken of a value exceeding two hundred  
               fifty dollars ($250).
                 Fish, shellfish, mollusks, crustaceans, kelp, algae, or  
               other aquacultural products are taken from a commercial or  
               research operation which is producing that product, of a  
               value exceeding two hundred fifty dollars ($250).
                 Money, labor, or real or personal property is taken by a  
               servant, agent, or employee from his or her principal or  
               employer and aggregates nine hundred fifty dollars ($950)  
               or more in any 12 consecutive month period.
                 The property was taken from the person of another.
                 The property taken was any of the following:  An  
               automobile, horse, mare, gelding, any bovine animal, any  
               caprine animal, mule, jack, jenny, sheep, lamb, hog, sow,  
               boar, gilt, barrow, or pig.  
                 The property taken was a firearm.  (Penal Code  487.)

           This bill  includes the following definitions:

                 "Agricultural commodity" means any fruit, nut, citrus,  
               field, forage, nursery crop, or other farm crop, or apiary,  
               livestock, or poultry.
                 "Agricultural equipment" means any equipment used in  
               agricultural production, including, but not limited to, an  
               implement of husbandry, (Veh. Code  36000, 36005, and  
               36015), a farm trailer (Veh. Code  36010), an automatic  
               bale wagon (Veh. Code  36011), a cotton module mover,  
               (Veh. Code  36012), and a trap wagon, (Veh. Code  36016),  
               and any part of that equipment used in agricultural  
               production.

           This bill  provides that where a defendant has been convicted for  
          a second time of theft of agricultural commodities or equipment,  
          the court shall impose a mandatory fine of $5,000, in addition  
          to any other authorized penalty.

           This bill  provides that where a defendant has been convicted for  




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                                                           SB 1325 (Harman)
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          a third time of theft of agricultural commodities or equipment,  
          the court shall impose a mandatory fine of $10,000, in addition  
          to any other authorized penalty.

           This bill  provides that a "person" subject to the mandatory  
          fines imposed pursuant to this bill includes an individual,  
          partnership, firm, association, corporation, limited liability  
          company, or other legal entity.  

           This bill  provides that all fines collected pursuant to the bill  
          "shall be collected and distributed according to the penalty  
          assessment provisions Penal Code Sections 1463 and 1463.001."

          
                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION
          
          The severe prison overcrowding problem California has  
          experienced for the last several years has not been solved.  In  
          December of 2006 plaintiffs in two federal lawsuits against the  
          Department of Corrections and Rehabilitation sought a  
          court-ordered limit on the prison population pursuant to the  
          federal Prison Litigation Reform Act.  On January 12, 2010, a  
          federal three-judge panel issued an order requiring the state to  
          reduce its inmate population to 137.5 percent of design capacity  
          -- a reduction of roughly 40,000 inmates -- within two years.   
          In a prior, related 184-page Opinion and Order dated August 4,  
          2009, that court stated in part:

               "California's correctional system is in a tailspin,"  
               the state's independent oversight agency has reported.  
               . . .  (Jan. 2007 Little Hoover Commission Report,  
               "Solving California's Corrections Crisis: Time Is  
               Running Out").  Tough-on-crime politics have increased  
               the population of California's prisons dramatically  
               while making necessary reforms impossible. . . .  As a  
               result, the state's prisons have become places "of  
               extreme peril to the safety of persons" they house,  
               (Governor Schwarzenegger's Oct. 4, 2006 Prison  
               Overcrowding State of Emergency Declaration), while  
               contributing little to the safety of California's  




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               residents,   California "spends more on corrections  
               than most countries in the world," but the state  
               "reaps fewer public safety benefits." . . .  .   
               Although California's existing prison system serves  
               neither the public nor the inmates well, the state has  
               for years been unable or unwilling to implement the  
               reforms necessary to reverse its continuing  
               deterioration.  (Some citations omitted.)

               . . .

               The massive 750% increase in the California prison  
               population since the mid-1970s is the result of  
               political decisions made over three decades, including  
               the shift to inflexible determinate sentencing and the  
               passage of harsh mandatory minimum and three-strikes  
               laws, as well as the state's counterproductive parole  
               system.  Unfortunately, as California's prison  
               population has grown, California's political  
               decision-makers have failed to provide the resources  
               and facilities required to meet the additional need  
               for space and for other necessities of prison  
               existence.  Likewise, although state-appointed experts  
               have repeatedly provided numerous methods by which the  
               state could safely reduce its prison population, their  
               recommendations have been ignored, underfunded, or  
               postponed indefinitely.  The convergence of  
               tough-on-crime policies and an unwillingness to expend  
               the necessary funds to support the population growth  
               has brought California's prisons to the breaking  
               point.  The state of emergency declared by Governor  
               Schwarzenegger almost three years ago continues to  
               this day, California's prisons remain severely  
               overcrowded, and inmates in the California prison  
               system continue to languish without constitutionally  









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               adequate medical and mental health care.<1>

          The court stayed implementation of its January 12, 2010, ruling  
          pending the state's appeal of the decision to the U.S. Supreme  
          Court.  That appeal, and the final outcome of this litigation,  
          is not anticipated until later this year or 2011.

           This bill  does not appear to aggravate the prison overcrowding  
          crisis described above.


                                      COMMENTS

          1.  Need for This Bill  

          According to the author:

               Existing law provides that grand theft is committed  
               when farm crops are taken in an excess of $250.   
               Current law provides that this crime is punishable by  
               imprisonment in a county jail or state prison for up  
               to one year. 

               A major factor affecting the bottom line of  
               California's agricultural sector is crime.  A study by  
               the Urban Institute found that offenders and potential  
               offenders modify their criminal behavior in response  
               both to changes in their risk of detection and capture  
               and to the expected severity of punishment.  SB 1325  
               seeks to reduce agricultural crime by addressing both  
               of these factors.

               SB 1325 will increase the severity of punishment by  
               ----------------------
          <1>   Three Judge Court Opinion and Order, Coleman v.  
          Schwarzenegger, Plata v. Schwarzenegger, in the United States  
          District Courts for the Eastern District of California and the  
          Northern District of California United States District Court  
          composed of three judges pursuant to Section 2284, Title 28  
          United States Code (August 4, 2009).




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               assessing monetary penalties to felons who are  
               convicted of multiple agricultural crimes. 

          2.  Background About California Agriculture Submitted by the  
          Author and Sponsor  

          California Agriculture Economic Facts
          
                 As of 2007, there were approximately 75,000 farms and  
               ranches in CA.
                 California's agricultural abundance includes more than  
               400 commodities.  The state produces about half of  
               U.S.-grown fruits, nuts and vegetables.  Many crops are  
               produced solely in California.
               The average farm or ranch operation in the state produced  
               nearly $488,000 in commodity sales during 2007, about 3  
               times higher than the U.S. average of $137,000 per farm.
                 California is home to the most productive agricultural  
               counties in the nation.  According to the 2002 Census of  
               Agriculture's ranking of market value of agricultural  
               products sold, nine of the nation's top 10, and 12 of the  
               top 20, producing counties are in California.  Source:  
               California Agricultural Resource Directory 2008-2009;  
               http://www.cdfa.ca.gov/statistics/files/CDFA_Sec2.pdf

          Agricultural Crime Statistics
           
                  Only about one in ten pieces of stolen equipment is ever  
               recovered.  
                 Many thefts are directly related to economic conditions.  
                For example, fuel thefts increase with rises in the price  
               for fuel.
                 A preliminary figure for losses due to rural crime in  
               eight Central Valley counties during 2006 is $13.2 million,  
               according to the Agricultural Crime Technology Information  
               and Operations Network Project (ACTION).  ACTION uses  
               technology and training to support law enforcement agencies  
               in solving, preventing and prosecuting agricultural crime.   
               (No government agency tabulates rural crime numbers on a  
               statewide basis, so that figure is not available.)




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                 The total value of goods stolen from rural properties in  
               ACTION's eight counties during 2006 increased by $2.3  
               million from the previous year's total of $10.9 million.   
               In 2004, the figure was $10.6 million. These figures sum up  
               losses for the following Central Valley counties: Fresno,  
               Kern, Kings, Madera, Merced, San Joaquin, Stanislaus and  
               Tulare.

                 Counties outside of the Central Valley including  
               Monterey, San Benito, San Luis Obispo, Santa Barbara and  
               Santa Cruz are in the process of forming their own regional  
               task force to address rural crime. Many of these coastal  
               counties have not yet released crime statistics; however,  
               in 2006, Monterey County reported that its rural crime  
               losses reached close to $1.3 million. 
                 According to the Farm Bureau, during 2006 the value of  
               metals stolen in the eight Central Valley counties reached  
               nearly $5 million.  Farmers suffered additional losses in  
               production because of the loss of metal equipment.  

          3.  Criminal Fines are Effectively Quadrupled by Mandatory Penalty  
          Assessments  

          Criminal fines are subject to mandatory penalty assessments.   
          The following chart shows a sample calculation for penalty  
          assessments for a fine of $10,000.  The actual fine varies by  
          county.  The calculation used by the Legislative Analyst  
          reflects an actual fine of $38,000 for a stated statutory fine  
          of $10,000:

            Base Fine:                         $10,000 

            Penal Code 1464 Assessment:             $10,000($10 for every  
            $10 in fines)
            Penal Code 1465.7 Assessment:                $  2,000(20%  
            surcharge)
            Penal Code 1465.8 Assessment:                $       20($20  
            fee per fine)
            Government Code 70372 Assessment:       $  5,000($5 for every  
            $10 in fines)




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            Government Code 70373 Assessment                  $       30    
                    ($30 fee per each conviction)
            Government Code 76000 Assessment:       $  7,000 ($7 for every  
            $10 in fines)
            Government Code 7600.5 Assessment:           $  2,000($2 for  
            every $10 in fines)
            Government Code 76104.6 Assessment:          $  1,000($1 for  
          every $10 in fines)

            Total Fine with Assessments:            $37,050

          If the maximum standard criminal fine of $10,000 is imposed in  
          addition to the special fine of $10,000 required by this bill,  
          the actual amount a defendant would be required to pay is  
          approximately $76,000 in a third conviction.  For a defendant  
          who has been convicted for a second time, the maximum fine would  
          be approximately $56,500.

          DO THE MANDATORY FINES CREATED BY THIS BILL FOR REPEATED  
          CONVICTIONS OF AGRICULTURAL THEFT PROVIDE APPROPRIATE  
          PUNISHMENT, OR ARE THE FINES EXCESSIVE?

          4.  Deterrence and Collection Issues  

          As noted, the fines in existing law are effectively quadrupled  
          by penalty assessments.  If thieves are not deterred by existing  
          fines, the question is raised as to whether simply adding  
          special fines to the existing criminal fines will deter thieves.  
           Committee staff is not aware of any studies that would assist  
          the Committee in determining whether the increased fines would  
          or would not deter potential offenders.

          It may be difficult to collect criminal fines.  At some point,  
          the cost of collecting from defendants exceeds what government  
          entities could hope to net.  Many defendants are indigent. Even  
          where convicted defendants have resources, counties may have  
          difficulty tracking assets and collecting money.  Each county  
          typically has an office that essentially acts as a collection  
          agency.  A 2006 study by the California Research Bureau noted  
          that the system for collecting and distributing fines and  




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          penalty assessments is extremely complicated and inefficient.   











































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          IN LIGHT OF THE RELATIVELY HIGH FINES AND PENALTIES THAT MAY BE  
          IMPOSED UNDER EXISTING LAW, WOULD THE FINES IN THIS BILL LIKELY  
          DETER AGRICULTURAL THIEVES?

          WOULD THE ADDITIONAL FINES AND PENALTIES IMPOSED PURSUANT TO  
          THIS BILL BE COLLECTIBLE?

          5.  Technical Drafting Issues

           Application of the Bill in Cases Where the Defendant Has Been  
          Convicted of Agricultural Theft for a Fourth or Subsequent Time
          
          This bill requires the sentencing court to impose a special fine  
          of $5,000 where a defendant has been convicted of agricultural  
          theft for a second time.  The bill requires the court to impose  
          a fine of $10,000 for a third such conviction.  The bill does  
          not specifically provide that the $10,000 fine shall be imposed  
          for a third "or subsequent" conviction for theft of agricultural  
          commodities or equipment.  As such, a defendant could argue that  
          upon a fourth, fifth, or subsequent conviction for agricultural  
          theft, no special fine shall be imposed.  Such cases are,  
          however, likely to be relatively rare. 

          If the author intends that defendants convicted at least three  
          times of theft of agricultural commodities or equipment shall  
          receive a special, mandatory fine of $10,000, the bill should  
          state that the fine applies to a third or subsequent conviction.

          DOES THE AUTHOR INTEND THAT THE SPECIAL FINES REQUIRED BY THIS  
          BILL WOULD APPLY WHERE A DEFENDANT IS CONVICTED OF AGRICULTURAL  
          THEFT FOR A FOURTH OR SUBSEQUENT TIME?

          Likely Unnecessary Reference to Penal Code Sections 1463 and  
          1463.001
          
          Criminal fines are generally subject to penalty assessments  
          unless the governing statute provides a specific exception.  For  
          example, Penal Code Section 1202.4, subdivision (e) specifically  
          provides that restitution fines are not subject to penalty  




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          assessments.  This bill states that the special fines required  
          by this bill are to be collected and distributed according to  
          the formulas for penalty assessments.  It appears likely that  
          this reference is redundant or unnecessary.  Numerous court  
          decisions have held that the Legislature should avoid the use of  
          unnecessary terms in a statute. 

          IS THE REFERENCE IN THE BILL TO CODE SECTIONS (PEN. CODE  1463  
          AND 1463.001) THAT SET OUT THE FORMULAS FOR DISTRIBUTING  
          CRIMINAL FINES UNNECESSARY AND PERHAPS CONFUSING?


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