BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2122 (Bocanegra) - Crimes: media piracy of audiovisual works  
          and audio recordings.
          
          Amended: As Introduced          Policy Vote: Public Safety 5-0
          Urgency: No                     Mandate: Yes
          Hearing Date: June 30, 2014                             
          Consultant: Jolie Onodera       
          
          This bill does not meet the criteria for referral to the  
          Suspense File.


          Bill Summary: AB 2122 would expand the alternate  
          felony/misdemeanor crime of media piracy involving at least 100  
          articles of specified recordings or audiovisual works to apply  
          in cases where the defendant's conduct involved the "commercial  
          equivalent" of 100 articles, as specified.

          Fiscal Impact: 
               Potential increase in non-reimbursable local costs for  
              enforcement, incarceration, and probation for misdemeanor  
              and jail felony convictions related to violations of the  
              expanded definition of media piracy. Local costs would be  
              offset to a degree by fine revenues to the extent fines are  
              imposed and collected.
               Likely minor increase in state incarceration costs  
              (General Fund) for additional felony convictions requiring a  
              state prison term under the expanded definition of media  
              piracy. There have been fewer than five commitments to state  
              prison over the past two years for this offense since 2011  
              Realignment. The annual cost for one additional contracted  
              bed is estimated at $31,000.

          Background: Existing law provides that a person is guilty of a  
          failure to disclose the origin of a recording or audiovisual  
          work if, for commercial advantage or private financial gain, he  
          or she knowingly advertises or offers to sell, rent, or  
          manufacture, or possess for those purposes, an illicit audio  
          recording or audiovisual work. The essence of this crime is that  
          the defendant fails to disclose the true name and address of the  
          manufacturer and the name of the artist. 









          AB 2122 (Bocanegra)
          Page 1


          A violation involving at least 100 articles of audio recordings  
          or 100 articles of audiovisual works is an alternate  
          felony/misdemeanor, punishable by a misdemeanor term of up to  
          one year in county jail, or a felony jail term of two, three, or  
          five years, a fine of up to $500,000, or both the fine and  
          imprisonment. 

          A first violation involving less than 100 articles is a  
          misdemeanor punishable by up to one year in county jail, by a  
          fine of up to $50,000, or both. Subsequent violations involving  
          less than 100 articles are punishable by up to one year in  
          county jail, a felony jail term of 16 months, two, or three  
          years, a fine of up to $200,000, or both the fine and  
          imprisonment.

          This bill seeks to address the illicit sale of single digital  
          storage devices (i.e., hard drives, memory cards, flash drives),  
          that while technically only consist of one item, may contain the  
          "commercial equivalent" of hundreds or thousands of audio  
          recordings or audiovisual works.

          Proposed Law: This bill would provide that the "true name and  
          address" audio recording and audiovisual works piracy alternate  
          felony/misdemeanor shall apply where the defendant's conduct  
          involved the "commercial equivalent" of at least 100 articles of  
          sound recordings or audiovisual works.

          Prior Legislation: SB 830 (Wright) Chapter 480/2010 expanded the  
          definition of a "recording" for the purposes of prosecution for  
          failing to disclose the origin of a recording when utilizing the  
          recording for financial gain, as specified. This bill specified  
          that "recordings" include memory cards, flash drives,  
          hard-drives, or data storage devices.

          AB 64 (Cohn) Chapter 9/2006 made the possession or sale of at  
          least 100 articles, rather than 1,000 articles, of audio  
          recordings punishable as an alternate felony/misdemeanor.

          Staff Comments: By expanding the definition of the alternate  
          felony/misdemeanor crime of media piracy to include the  
          commercial equivalent of 100 articles, the provisions of this  
          bill could result in an increase in non-reimbursable local costs  
          for enforcement, incarceration and probation, offset to a degree  
          by fine revenue.








          AB 2122 (Bocanegra)
          Page 2



          This bill provides that a felony conviction is punishable  
          pursuant to Penal Code � 1170(h). While felony convictions would  
          largely be sentenced to county jail, in cases where the  
          defendant has a prior or current conviction for a serious or  
          violent felony or is required to register as a sex offender, the  
          sentence would be served in state prison.
          
          It is estimated that the impact on state prisons would likely be  
          minor, as there have been fewer than five commitments to state  
          prison over the past two years for this offense since 2011  
          Realignment. The annual cost for one additional contracted bed  
          is estimated at $31,000 (General Fund).


          The U.S. Supreme Court has ordered the Department of Corrections  
          and Rehabilitation (CDCR) to reduce the prison population to  
          137.5 percent of the prison system's design capacity by February  
          28, 2016. Although public safety realignment has achieved  
          significant reductions in the prison population, and the 2014-15  
          Governor's Budget projects meeting the population cap in the  
          near-term, the analysis by the Legislative Analyst's Office  
          suggests that CDCR's long-term prison caseload will likely  
          exceed this cap. Because California's institutions already  
          exceed the population limit, any near-term and future increases  
          to the state's prison population would likely require the state  
          to pursue one of several options including contracting-out for  
          additional bed space or releasing current inmates early onto  
          parole.