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 Page 2 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