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