BILL ANALYSIS                                                                                                                                                                                                    







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

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          SB 1338 (Harman)                                           8
          As Introduced February 19, 2010 
          Hearing date:  April 20, 2010
          Penal Code
          JM:mc

                        GRAND THEFT OF AGRICULTURAL PRODUCTS: 

                            METHOD OF DETERMINING VALUE  


                                       HISTORY

          Source:  Tulare County District Attorney

          Prior Legislation: None directly on point

          Support: California Chamber of Commerce; California Peace  
          Officers' Association;                                       
          California Police Chiefs Association

          Opposition:None known



                                         KEY ISSUE
           
          IN A GRAND THEFT PROSECUTION, SHOULD THE VALUE OF SPECIFIED  
          AGRICULTURAL PRODUCTS BE DETERMINED BY THE WHOLESALE VALUE OF SUCH  
          PRODUCTS ON THE DATE OF THE THEFT, AS IS THE CASE IN EXISTING LAW  
          FOR DETERMINING THE VALUE OF AVOCADOS AND CITRUS FRUITS?






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                                                           SB 1338 (Harman)
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                                       PURPOSE

          The purpose of this bill is to provide that in a grand theft  
          prosecution, the value of specified agricultural products shall  
          be determined as the wholesale value of the products on the day  
          of the theft, just as the value of citrus fruits and avocados  
          are determined under existing law.


           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:

                 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).




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                                                           SB 1338 (Harman)
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                 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.)

           Existing law  provides that the value of stolen property in a  
          grand theft prosecution is generally determined by the  
          "reasonable and fair market value" of the property at the time  
          and place of the theft.  (2 Witkin & Epstein, Cal. Crim. Law (3d  
          Ed.2000) Crimes against Prop.  8.)  

           Existing law  specifically provides the following as to  
          determining the value of avocados or citrus fruits:  The value  
          [of these products] may be shown by the ? evidence which  
          establishes that on the day of the theft avocados or citrus  
          fruit of the same variety and weight exceeded two hundred fifty  
          dollars ($250) in wholesale value.

           This bill  provides that the value of other agricultural products  
          -- domestic fowls, avocados, olives, citrus or deciduous fruits,  
          other fruits, vegetables, nuts, artichokes, or other farm crops  
          -- shall also be determined as the wholesale value of the  
          products on the day of the theft.
          

                    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  




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                                                           SB 1338 (Harman)
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          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  
               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  




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                                                           SB 1338 (Harman)
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               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 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.











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          <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).









          

                                      COMMENTS
         1.Need for This Bill

           As stated by the author:

               SB 1338 will provide consistency to Penal Code section  
               487 in regards to theft of agricultural commodities.  
               The measure is sponsored by the Tulare County District  
               Attorney's Office

               Previously, the section referred only to avocados or  
               citrus fruit and there was ambiguity as to whether the  
               section applied to other types of stolen agricultural  
               products, making it difficult to award restitution to  
               the victim in those cases.

               SB 1338 will assure that victims receive fair  
               restitution by guaranteeing that the method used to  
               determine the value of their stolen property is  
               clearly stated and applicable to all varieties of  
               crops. 

          2.  General Rules for Determining the Value of Stolen Property and  
            Special Rules for Agricultural Products - Policy Issues  

          As noted in the "Purpose" section above, the value of stolen  
          goods is generally calculated as the fair market value of  
          property at the place and time the property is taken.  It  
          appears that the special grand theft values that apply to theft  
          of agricultural products are intended to apply to products taken  
          from farms and through wholesale distribution.  In particular,  
          existing law specifically refers to the "wholesale value" of  
          avocados and citrus fruits.  (Penal Code  487, subd.  
          (b)(1)(B).)  The grand theft statute also refers to theft of  
          "farm crops."  (Penal Code  487, subd. (b)(1)(A).)  It should  
          also be noted in this regard that the paragraph defining grand  
          theft of  aquacultural products refers to theft of such products  
          from "a commercial or research operation."  (Penal Code  487,  




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                                                           SB 1338 (Harman)
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          subd. (b)(1)(2).)  A commercial or research operation would  
          appear to exclude a grocery store or similar shop. 

          Once avocados, citrus fruits, nuts and other food products are  
          offered for sale at a retail establishment, there is no reason  
          to distinguish these products from any other retail good.  While  
          it may be relatively easy to steal agricultural products from  
          isolated rural fields, barns and storehouses, no such  
          considerations apply to food products in grocery stores and  
          other retail businesses.

          FOR PURPOSES OF THE GRAND THEFT STATUTE, SHOULD THE VALUE  
          OF AGRICULTURAL PRODUCTS BE CLEARLY STATED TO BE THE  
          WHOLESALE VALUE OF THE PRODUCTS AT THE DATE AND TIME OF THE  
          THEFT?

          3.    Restitution Issues  

          The author notes that the purpose of this bill is to assist  
          victims of agricultural theft in obtaining restitution for their  
          losses.  The California Constitution and statutory law give  
          crime victims the right to restitution for economic losses.   
          (Ca. Const. Art. 1  28(b) Penal Code  1202.4, subd. (a)(1).)   
          Restitution ensures that amends . . . be made to society for the  
          breach of the law, enables people who suffer loss as a result of  
          criminal activity [to] be compensated for those losses, and acts  
          as a deterrent to future criminality . . . and to rehabilitate  
          the criminal."  (People v. Crow (1993) 6 Cal.4th 952, 958,  
          internal quotation marks omitted.)  As such, courts have broad  
          discretion to determine restitution and make restitution orders.  
           (People v. Baker (1005) 126 Cal.App.4th 463, 468; People v.  
          Prosser (2007) 157 Cal.App.4th 682, 690.)

          Arguably, this bill could provide relative certainty for courts  
          in determining the amount of restitution to be granted a victim.  
           Setting an explicit standard for restitution in agricultural  
          theft cases could streamline the applicable process and allow a  
          victim to concentrate his or her efforts on collecting the  
          restitution ordered by the court.













                                                           SB 1338 (Harman)
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          WOULD EXPLICITLY STATING IN STATUTE THAT THE VALUE OF STOLEN  
          AGRICULTURAL PRODUCTS IS THE WHOLESALE VALUE OF THE PRODUCTS AT  
          THE DATE AND PLACE OF THE THEFT ASSIST IN DETERMINING THE  
          RESTITUTION TO WHICH A VICTIM IS ENTITLED?


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