BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 703
                                                                  Page  1

          Date of Hearing:   August 4, 2004

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                    SB 703 (Florez) - As Amended:  June 23, 2004 

          Policy Committee:                              Public  
          SafetyVote:  4-1

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill increases the penalties for theft of diesel fuel.  
          Specifically, this bill:

          1)Defines theft of more than $100 of diesel fuel as grand theft,  
            punishable by up to one year in county jail, or 16 months, 2,  
            or 3 years in state prison. (Under current law, theft of less  
            than $400 of diesel fuel is a misdemeanor.)  

          2)Provides that upon a conviction of theft of diesel fuel or  
            possession of stolen diesel fuel, if the offender used a motor  
            vehicle to commit the offense, the court may declare the  
            vehicle, if owned by the offender, a nuisance and subject it  
            to forfeiture, subject to specified procedures of the Vehicle  
            Code related to forfeiture and impoundment of vehicles. 
            
           FISCAL EFFECT  

          1)Unknown annual GF cost for increased state prison commitments,  
            likely in excess of $150,000. About 3,500 persons were  
            sentenced to state prison for grand theft in 2002-03; an  
            increase of just 0.25 percent would result in annual GF costs  
            in excess of $250,000.

          2)Unknown, likely minor, local revenue gain. The proceeds of the  
            sale of a forfeited vehicle go first to satisfy towing  
            charges, then to the legal owner to satisfy indebtedness, then  
            to the holder of any subordinate liens, then to any other  
            person who can establish an interest in the vehicle, including  
            a community property interest. If there are remaining  
            proceeds, they are divided between local agencies and the  








                                                                  SB 703
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            state. 

             COMMENTS  

           1)Rationale  . According to the author, "According to the  
            California Farm Bureau Federation, fuel theft in the San  
            Joaquin Valley has quadrupled over the past year. Statistics  
            from the Agricultural Crime Technology Information and  
            Operations Network show that in an eight-county radius  
            including Madera, Merced, San Joaquin, Stanislaus, Fresno,  
            Kern and Kings Counties, the amount of diesel fuel theft has  
            gone up from 33,380 gallons in 2003 to 41,065 gallons between  
            January and April 2004. The overall number of thefts reported  
            has risen from 26 in the entire 2003 calendar year to 47 in  
            just the first four months of this year?. The Kern County  
            Sheriff's Department has stated that the recent rise in diesel  
            fuel prices is one of many factors causing the increase in  
            farm diesel thefts. Stolen diesel from farms is resold to  
            truckers on the black market for a cheaper price, costing  
            farmers tens of thousands of dollars each year."
           2)Current law  provides that grand theft is theft of any property  
            exceeding $400 in value, except in specified cases, including:
           
              a)   Theft of domestic fowls, avocados, olives, citrus and  
               other specified farm crops with a value exceeding $100.
             b)   Theft of fish, shellfish, mollusks, crustaceans, kelp,  
               algae or other aquacultural products from a commercial or  
               research operation with a value exceeding $100.
             c)   Theft of a car, horse, bovine, any caprine animal, mule,  
               sheep, lamb, hog, pig, or a gun.
             d)   Theft of the carcass of specified animals.

           3)Forfeiture Issues  . Vehicle forfeiture raises a number of  
            concerns when the vehicle is community property. Even if the  
            forfeited vehicle is owned by only the fuel thief, that  
            vehicle may in fact be a household vehicle used by family  
            members or partners completely innocent of the crime of theft  
            of diesel fuel. Forfeiture and sale of a vehicle because it  
            was used in the commission of a crime poses potential  
            significant hardships on other innocent persons who depend on  
            that vehicle for transportation, notwithstanding the fact that  
            they may not be legal owners. 

           4)Suggested Amendment  . This bill does not apply only to theft of  
            diesel fuel on farm property, but to any theft of diesel fuel.  








                                                                  SB 703
                                                                  Page  3

            The previous version of the bill required the theft to occur  
            on agricultural property in order to qualify as grand theft.    



           Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081