BILL ANALYSIS
SB 73
Date of Hearing: May 25, 1993
Counsel: Judith M. Garvey
ASSEMBLY COMMITTEE ON PUBLIC SAFETY
Bob Epple, Chair
SB 73 (Hayden) - As Amended: April 1, 1993
ISSUE: SHOULD CRIMES AND PENALTIES RELATING TO MOTOR VEHICLE CHOP
SHOPS BE CREATED?
DIGEST
Urgency statute. 2/3 vote required.
Under current law:
1) Theft of a motor vehicle or motor vehicle part is a crime. However,
š the law does not make it a specific crime to own or operate a chop
shop. (Vehicle Code section 10851 and Penal Code section 487.)
2) Fraudulent acquisition or disposition of the vehicle identification
š number (VIN) is punishable by 16 months, two or three years in state
prison and/or a fine up to $10,000, or by imprisonment in county
jail between 90 days and one year and by a fine between $250 to
$5,000. (Vehicle Code section 10752.)
3) Unless the Department of Motor Vehicles (DMV) has assigned a new
š number, the knowing purchase, sale, offer for sale, receipt or
possession of any vehicle or component part from which the
manufacturer's serial or VIN has been removed, defaced, altered, or
destroyed is a misdemeanor, punishable by imprisonment in county
jail up to six months. (Vehicle Code section 10751.)
4) Altering or changing vehicle numbers without DMV authorization is a
š misdemeanor, punishable by imprisonment in the county jail up to six
months. (Vehicle Code section 10750.)
This bill:
1) Makes it an alternate felony/misdemeanor, punishable by two, three, or
four years in state prison and/or fine up to $50,000 or by up to one
year in county jail and/or a fine up to $1,000 to knowingly and
intentionally own or operate a chop shop.
2) Makes it an alternate felony/misdemeanor, punishable by 16 months,
š two, or three years in state prison and/or a fine not more than
$25,000 or by up to one year in the county jail and/or a fine up to
$1,000 if any person
- continued -
SB 73
Page 1
SB 73
knowingly alters, destroys, or removes a VIN, with a specified intent and
š purpose.
3) Makes it an alternate felony/misdemeanor, punishable by two, four, or
six years in state prison and/or a fine up to $60,000 or by up to
one year in county jail and/or a fine up to $1,000 to buy with
intent to resell, dispose of, sell more than one motor vehicle or
parts from more than one motor vehicle, with knowledge that the VIN
of the motor vehicles or parts have been altered or removed for the
purpose of preventing identification.
4) Makes it an alternate felony/misdemeanor, punishable by 16 months, two,
or three years in state prison and/or a fine up to $30,000, or by
imprisonment in county jail up to one year and/or a fine not more
than $1,000 to possess for the purpose of sale, transfer, import or
export more than one motor vehicle or parts from more than one motor
vehicle, with knowledge that the VIN has been altered or removed for
the purpose of misrepresenting the identity or preventing the
identification of the motor vehicles or parts.
COMMENTS
1) Purpose. According to the author:
It is my intent, in proposing this bill, to create a specific crime
of commercial auto theft to target those criminals who traffic
in stolen vehicles and vehicle parts. I believe that present
law fails to adequately differentiate between those persons who
steal a car for joy riding or to get a particular vehicle part
and those who have established sophisticated 'chop shops' that
steal, dismantle and export thousands of cars from California
each year.
2) Prior Legislation. This bill is virtually identical to AB 3396
š (Hayden, Ch. 931/92 and which did not become operative because it
was joined to SB 25 (Lockyer). SB 25 was vetoed by the Governor.
3) Definition of Chop Shop. A chop shop is defined as any building,
lot, or other premises where any person has been engaged in
altering, destroying, disassembling, dismantling, reassembling, or
storing any motor vehicle or motor vehicle part known to be
illegally obtained by theft, fraud, or conspiracy to defraud, in
order to do either of the following:
a) Alter, destroy, obliterate, or remove the VIN in order to
misrepresent the identity of the motor vehicle or part or to
prevent its identification;
b) Sell or dispose of the motor vehicle or motor vehicle part.
4) 1984 Motor Vehicle Theft Law Enforcement Act. According to the
National Automobile Theft Bureau (NATB) Annual Report of 1989, the
Act provided for the:
- continued -
SB 73
Page 2
SB 73
Placement of additional permanent identification numbers on up to 14
major vehicle parts of certain car lines. However, since this
parts-marking provision was not actually implemented until 1986,
and is restricted to certain makes and models, most major
components of vehicles on the road today are not uniquely
identified.
Because these parts are unmarked and therefore less traceable, they
are desirable to criminals trafficking in stolen parts. Body
shops and salvage yards can usually purchase stolen parts for
less money than it costs to buy new or used parts from
legitimate sources. Investigators and police officers often
locate parts which obviously are products of chop shop
operations but cannot be identified.
5) Problem. The Alliance of American Insurers believes SB 73 offers
š law enforcement authorities a key tool to help break up organized
crime rings that steal vehicles, disassemble them, and sell the
unidentifiable parts to legitimate repair shops, where they are used
to repair original equipment on vehicles. The business has grown
rapidly in California because the risk is low and the profits are
high. The recovery rate for stolen vehicles has declined
significantly during the last ten years, largely due to "chop
shops." Chop shops thus have placed a financial drain on Californians
through increased property losses, increased law enforcement costs,
and rising insurance rates.
6) Estimate. The City of Los Angeles estimates that 50% of vehicle
š theft in California falls into the "professional" thief definition;
15% in chop shops and VIN fraud; 15% for insurance fraud,
export/gang activity and criminal transportation. In 1991, a total
of 312,000 cars were reported stolen in California.
7) Application. This bill provides that some of its provisions do not
š apply to a motor vehicle scrap processor, who, in the normal legal
course of business and in good faith, processes a motor vehicle or
motor vehicle part by crushing, compacting, or other similar
methods, if any VIN is not removed from the motor vehicle or motor
vehicle part prior to or during the processing.
Some provisions do not apply to any owner or authorized possessor of a
motor vehicle or part which has been recovered by authorities after
having been stolen or if the condition of the VIN of the vehicle or
part is known to or has been reported to law enforcement
authorities.
8) Support.
a) California Highway Patrol (CHP). The CHP feels this bill will
provide a valuable tool to law enforcement in their effort to
curtail the growing number of automobile thefts in California.
- continued -
SB 73
Page 3
SB 73
b) California State Automobile Association (AAA). AAA believes that
by focusing on those who are responsible for dealing in stolen
motor vehicles and their parts, the real problem of vehicle
theft can be reduced.
c) City of Los Angeles (LA). LA supports this bill because auto
theft in the City of Los Angeles continues to rise. The Los
Angeles Police Department reports that in 1992, approximately
72,457 vehicles were reported stolen. While there are no
statistics in the number of "chop shops" in the city, the
Department believes that there has been an increase in these
shops which are located in legitimate businesses or in private
back yards. The number of "chop shops" is growing in that
the auto parts business has become lucrative and is a source of quick
šmoney.
SOURCE: The Attorney General
SUPPORT: Department of the California Highway Patrol
California State Sheriffs' Association
California Police Chiefs' Association
California Peace Officers' Association
The City of Los Angeles
The City of San Diego
California State Automobile Association
The Alliance of American Insurers
OPPOSITION: None on file
- continued -
SB 73
Page 4