Retail Theft: a Data-Driven Response for California

Retail Theft: A Data-Driven Response for California Report #280 | July 2024 Milton Marks Commission on California State Government Organization and Economy www.lhc.ca.gov LITTLE HOOVER COMMISSION Dedicated to Promoting Economy and Pedro Nava† Efficiency in California State Government Chair The Little Hoover Commission, formally known as the Milton Anthony Cannella* Marks “Little Hoover” Commission on California State Government Vice Chair Organization and Economy, is an independent state oversight agency. Dion Aroner By statute, the Commission is a bipartisan board composed of David Beier five public members appointed by the governor, four public Asm. Phillip Chen members appointed by the Legislature, two senators and Gil Garcetti two assemblymembers. José Atilio Hernández Jason Johnson In creating the Commission in 1962, the Legislature declared its purpose: Sen. Dave Min Asm. Liz Ortega ...to secure assistance for the Governor and itself in Janna Sidley promoting economy, efficiency and improved services in the Sen. Scott Wilk transaction of the public business in the various departments, agencies and instrumentalities of the executive branch of †Served as subcommittee chair the state government, and in making the operation of all *Served on study subcommittee state departments, agencies and instrumentalities, and all expenditures of public funds, more directly responsive COMMISSION STAFF to the wishes of the people as expressed by their elected Ethan Rarick representatives... Executive Director Tamar Foster The Commission fulfills this charge by listening to the public, consulting with the experts and conferring with the wise. In the Deputy Executive Director course of its investigations, the Commission typically empanels Krystal Beckham advisory committees, conducts public hearings and visits Daniel Harris-McCoy government operations in action. Ashley Hurley Shara McAlister Its conclusions are submitted to the Governor and the Legislature for their consideration. Recommendations often take the form Allie Powell of legislation, which the Commission supports through the legislative process. Contacting the Commission All correspondence should be addressed to the Commission Office: Little Hoover Commission 925 L Street, Suite 805, Sacramento, CA 95814 (916) 445-2125 | LittleHoover@lhc.ca.gov This report is available from the Commission’s website at www.lhc.ca.gov. 2 | LITTLE HOOVER COMMISSION Table of Contents EXECUTIVE SUMMARY ......................................................................5 RETAIL THEFT: A DATA-DRIVEN APPROACH FOR CALIFORNIA ..7 Introduction .....................................................................................................7 Impact ...............................................................................................................8 Definitions ........................................................................................................8 What Available Data Show .............................................................................9 Public Opinion ...............................................................................................14 Additional Government Initiatives to Combat Retail Theft .....................16 Recommendations ........................................................................................20 APPENDIX .........................................................................................22 NOTES ................................................................................................31 RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 3 Letter from the Chair July 11, 2024 The Honorable Gavin Newsom Governor of California The Honorable Mike McGuire The Honorable Brian Jones President pro Tempore of the Senate Senate Minority Leader and members of the Senate The Honorable Robert Rivas The Honorable James Gallagher Speaker of the Assembly Assembly Minority Leader and members of the Assembly DEAR GOVERNOR AND MEMBERS OF THE LEGISLATURE: In June 2023, the Commission received a request from the California state legislature to look at issues surrounding retail theft. The request letter, which was signed by 66 members of the legislature, referenced increasing reports of retail theft in the state and the heightened scrutiny of law enforcement’s ability to respond effectively to these crimes. In response, the Commission held a series of hearings examining how retail theft and corresponding arrests, filings, and convictions are reported and tracked, and whether there are improvements that could be made to better inform evidence-based decision-making. In this report, we examine the impact of retail theft, provide data about the frequency of reported theft, and review current government initiatives to combat these issues. We also offer suggestions on how to better tackle retail theft and its impacts through increased data collection and collaboration with research institutions. The Commission respectfully submits this work and stands prepared to help you take on this challenge. Sincerely, Pedro Nava, Chair Little Hoover Commission 4 | LITTLE HOOVER COMMISSION Executive Summary The Little Hoover Commission conducted an Geographic variations. Retail theft rates vary examination of California’s response to retail theft by region across California. It is difficult to detect following a request by 66 members of the state a consistent geographic pattern for shoplifting. legislature. This report outlines the available data Commercial burglary, a more serious crime than and offers recommendations to the Governor and shoplifting, has primarily, though not exclusively, Legislature on comprehensive data collection and increased in counties containing large urban areas. analysis. National comparison. Reported incidents of theft in Impact the other 49 states often, though not always, follow a similar trajectory to the California data. Any increase in retail theft has real-world impacts on businesses, consumers and others. Shrink rate changes. A common way the retail industry measures theft is through “shrink,” which Some businesses have cited theft as a reason for combines theft and other factors. Shrink rates have closing stores. Mom-and-pop businesses have a slightly increased over the past decade. smaller safety net than national retailers to recover from these losses. Losses due to theft are often Public Opinion recuperated through higher prices, a particular A poll by the Public Policy Institute of California found challenge for vulnerable populations. Frequent in 2023 that 8 percent of respondents identified incidents of theft can also lead to an unpleasant “crime, gangs, drugs” as the top issue confronting shopping experience. the state. About a third identified “jobs, economy, Retail theft also burdens the criminal justice system, inflation” as the most important issue, and a roughly as resources spent addressing retail theft could similar share identified housing and homelessness. be redirected towards more severe crimes. New Proposition 47 technologies also make it easier to resell stolen merchandise across multiple jurisdictions, which Proposition 47, passed by voters in 2014, reclassified further complicates investigating and prosecuting several theft and drug offenses from felonies and retail theft. wobblers to misdemeanors. It also limited the prior offenses that make it possible to charge someone Data with petty theft with a prior. Despite widespread Frequency of Reported Theft. Reported retail theft confusion on this point, Prop. 47 did not change the has ticked up since 2019, but remains at roughly the threshold at which crimes could typically be charged same level it was during the 2010s and lower than it as grand theft, a felony. That threshold had been was in earlier decades. increased from $400 to $950 by the Legislature in 2010. Underreporting. Not all retail theft is reported, but by its nature underreporting is extremely difficult to Initiatives to Combat Retail measure. Little data is available. A federal study of Theft the reporting of household and personal property crimes shows a moderate downward trend in the California’s leaders created additional initiatives rate of reporting since 2010. to combat retail crime in the past few years. These include establishing specialized task forces, RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 5 promoting public-private partnerships, and creating an online reporting mechanism for suspected theft and reselling. Additionally, in the fall of 2023 the state awarded $267 million to aid law enforcement in combating organized retail theft. ◊ Property crime framework. In January 2024, Governor Newsom proposed a six-point property crime framework addressing many aspects of retail theft, including cracking down on professional thieves, increasing penalties for resellers and other steps. ◊ Bipartisan legislation. A bipartisan coalition introduced AB 2943, which would clarify and strengthen aggregation statutes and take other steps. Recommendations 1. The California Department of Justice should collect detailed data that includes but is not limited to the circumstances surrounding a crime, law enforcement’s response to the crime, demographic data about the people arrested and, if applicable, charged with the crime, whether and what charges the prosecutors file, the final disposition of the case, and the offender’s rehabilitation, reentry, and recidivism. 2. To better understand the complexities involved in the causes and effects of retail crime to develop evidence-based solutions, the State of California should fund studies on preventative measures, commercial victimization, the economic impact of retail theft, drivers of public perception, and the fencing of stolen goods. This research should be conducted by the University of California, the California State University, the California Community Colleges, independent universities, or other nonpartisan research institutions. 6 | LITTLE HOOVER COMMISSION Retail Theft: A Data-Driven Response for California Introduction All of these factors have contributed to an increased In June 2023, 66 members of California’s legislature degree of public fear and concern about theft, yet asked the Little Hoover Commission to examine these issues also point to a need for more and better retail theft. This report responds to that request. This data. report examines the impact of retail theft, provides data about the frequency of reported theft, and Impact makes recommendations on needed additional data. Any increase in retail theft has real-world impacts For many Californians, the evidence of retail theft on businesses, consumers and others, and it is is plain to see. Videos on social media and in news important to understand the concrete effect of this reports show brazen thefts of property, sometimes form of crime. by large or violent gangs. Retailers say that they rarely call law enforcement when theft occurs, and IMPACT ON BUSINESSES AND CONSUMERS some law enforcement officials say there are few Retail theft’s most direct consequences are the consequences even if citations are issued. Businesses losses experienced by businesses. Some businesses are locking up more items on their shelves. Public have cited theft as a reason for closing stores. Mom- officials have taken notice. Governor Gavin Newsom and-pop businesses, often operating on razor-thin awarded $267 million in extra funding to local law margins, have a smaller safety net than national enforcement to combat organized retail theft. The retailers to recover from these losses. Legislature created a new committee to address the issue, and a variety of bills were introduced. Local In addition to the immediate monetary losses, there leaders such as San Francisco Mayor London Breed are indirect costs associated with retail theft, such announced crackdowns. as enhanced security measures and an increase in insurance premiums. In extreme cases, these At the same time, available data show a more cumulative expenses can result in business closures, nuanced picture. Reports of retail theft increased subsequently affecting local employment. in 2022, but remain far below reported levels of the 1970s, 80s and 90s. Different regions of the The effects aren’t limited to businesses. Losses due state reflect different experiences of retail crime to theft are often recuperated through higher prices. – some increasing, others decreasing. The rate of This can be particularly challenging for economically “shrink” – the term used by the retail industry to vulnerable populations. Furthermore, frequent refer to theft and other inventory losses – shows a incidents of theft can lead to an unpleasant shopping modest increase. Perhaps most important, the rate experience, characterized by a visible security of under-reporting of theft to law enforcement, a presence, locking items away from customers, and crucial issue, is hotly debated. Retailers and some law other measures resulting in a perceived decline in enforcement officials suggest a substantial amount customer service. This, in turn, can lead consumers of under-reporting; scholars who study data about to shop elsewhere, further harming the store’s retail theft say it is difficult to assess the level of bottom line. under-reporting with any degree of certainty. RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 7 Figure 1: Reported Incidents of Shoplifting and Commercial Burglary in California, 1985 to 2022 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 5 7 9 1 3 5 7 9 1 3 5 7 9 1 3 5 7 9 1 8 8 8 9 9 9 9 9 0 0 0 0 0 1 1 1 1 1 2 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 Shoplifting Nonresidential Burglary Source: Federal Bureau of Investigation IMPACT ON THE CRIMINAL JUSTICE SYSTEM Definitions Retail theft also burdens the criminal justice system. Retail theft is a catch-all term that describes the act of Resources spent addressing retail theft could be stealing from a retailer. The Commission considered redirected towards more severe crimes. The legal the four crimes detailed below in its retail theft study. system must balance imposing penalties that act The study particularly focused on the misdemeanor as effective deterrents and managing the cost and of shoplifting. feasibility of prosecuting such offenses. Offenders may struggle with poverty and substance use 1. Shoplifting. Shoplifting is the act of entering a disorders that require more holistic solutions than business during regular business hours to steal, incarceration and probation alone can provide. or with the intent to steal, merchandise valued at $950 or less. It is a misdemeanor.1 Organized retail crime exacerbates these challenges, with criminal masterminds preying on the vulnerable 2. Commercial burglary. Commercial burglary is the to perform the tasks most likely to result in being act of entering a commercial establishment to caught. New technologies can make it easier commit, or with the intent to commit, grand theft. to unload stolen merchandise across multiple Typically, grand theft is committed when the jurisdictions while blending in with legitimate stolen value exceeds $950. Entering a commercial sellers, which further complicates investigating and establishment outside of business hours with the prosecuting retail theft. Balancing this wide spectrum intent to steal, regardless of the amount stolen, of needs while keeping up with ever-evolving also is a burglary. Burglary is a felony.2 technology strains law enforcement agencies and judicial resources, diverting attention from other critical areas of public safety and welfare. 8 | LITTLE HOOVER COMMISSION What Available Data Show 3. Robbery. Robbery is the act of taking property in the presence of its owner, against their will, Reported retail theft has ticked up since 2019, but through force or fear. It is a felony.3 remains at roughly the same level it was during the 4. Organized retail theft. There are four activities 2010s, and lower than it was reported in the 1970s, that the state defines as organized retail theft: 80s and 90s. Given the incomplete data issues caused by underreporting, additional studies would ◊ Two or more people steal merchandise from a be required to reach definitive conclusions about retailer (either brick-and-mortar or online) with retail theft trends.6 the intent to sell the stolen goods, or exchange NOT ALL RETAIL THEFT IS REPORTED, or return the items to the retailer for value. BUT BY ITS NATURE UNDERREPORTING IS ◊ Three or more people receive, purchase, or EXTREMELY DIFFICULT TO MEASURE. possess merchandise that is stolen or believed It’s important to note that the data in Figure 1 reflect to have been stolen. incidents of retail theft reported to the police. ◊ One or more people steal merchandise on Some share of retail theft goes unreported, but it behalf of someone else. is extremely difficult to estimate underreporting, and how it may or may not have changed through ◊ One or more people recruit, organize, or the years. Retailers and some law enforcement finance the theft or reception of stolen goods personnel report anecdotal evidence that for profit.4 underreporting has increased. Academic researchers Organized retail theft can be punished as a say they are unaware of statistical evidence of an misdemeanor or felony.5 increase in underreporting. Figure 2: Household and Personal Belongings Property Crime Reporting Rates, 2010 to 2022 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: Bureau of Justice Statistics, U.S Department of Justice RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 9 Few studies include information on the rate of crime Figure 3: California Counties reporting. However, the U.S. Department of Justice with an Increase in Reported Bureau of Justice Statistics Criminal Victimization Shoplifting in 2022 compared to Survey shows a moderate downward trend in the 2014 rate of reporting since 2010, from 39 percent to 31.8 percent, as reflected in Figure 2. The federal study is based on an annual survey asking Americans about reported and underreported crime. This study is not an ideal instrument to understand the underreporting rate for retail theft because the theft-related questions in the survey focus on crimes that occur in the household or to personal property outside of the home. The study also includes crimes such as motor vehicle theft that are not included in retail theft definitions.7 This type of study could serve as a model for victims of commercial theft. THE STATE CURRENTLY DOES NOT TRACK ORGANIZED RETAIL THEFT DATA. The Commission could not obtain data related Source: Public Policy Insititute of California to organized retail theft. In response to the Commission’s inquiry, the Department of Justice noted that, though it has statistical arrest and other data dating back to 1979, it does not collect or track Figure 4: California Counties with data specific to organized retail theft.8 It should be an Increase in Non-Residential noted that organized retail theft was delineated as a Burglary in 2022 compared to specific crime (instead of being charged generically via conspiracy statutes) in 2018 with an initial sunset 2014 date in 2021, which was later extended until 2026 – the law’s current sunset date.9 A current bill in the state legislature, AB 1802 (Jones-Sawyer), would permanently remove the sunset date from the crime’s designation.10 RATES OF PROPERTY CRIME VARY GEOGRAPHICALLY ACROSS CALIFORNIA. Different areas of the state have experienced widely different rates of property crime in recent years. The Public Policy Institute of California compared crime trends in California and found wide disparities by county. For example, reported shoplifting nearly doubled in San Mateo County between 2014 and 2022, but fell by 58 percent in Sacramento County during that same period.11 Source: Public Policy Insititute of California 10 | LITTLE HOOVER COMMISSION Using 2014 and 2022 as the years for comparison, Similarly, as seen in Figure 6, the general pattern for the counties highlighted in red in Figure 3 rates of reported robbery in California mirrors that of experienced increases in reported shoplifting the other 49 states – a slight uptick recently, but far incidents. Other counties either experienced a fewer robberies than occurred in earlier decades. decline, remained the same, or had no data.12 Interestingly, reported shoplifting incidents in the The Public Policy Institute of California also found other 49 states follow a somewhat different pattern, that reported commercial burglaries have primarily, declining slowly until 2006, and then increasing though not exclusively, increased in counties in more recent years to levels not seen in earlier containing large urban cities between 2014 and decades. 2022.13 Figure 4 highlights in blue the counties that SHRINK RATES HAVE SLIGHTLY INCREASED experienced increases in non-residential burglaries in OVER THE PAST DECADE.15 2022 compared to 2014.14 A common way the retail industry measures retail COMPARING CALIFORNIA TO THE REST OF crime is through “shrink,” meaning inventory loss. THE COUNTRY Shrink includes retail theft and other causes such Reported incidents of theft in the other 49 states as employee theft, vendor fraud, bookkeeping often, though not always, follow a generally similar errors, and transport accidents. Thus, external theft trajectory to the California data. For example, as seen of the kind assessed in this report is included in in Figure 5, the number of nonresidential burglary shrink, though it is only one of several components. incidents in the other 49 states increased slightly Shrink rates have increased slightly, though not in 2022, though remains lower than in previous dramatically, in recent years. decades. Figure 5: Nonresidential Burglary Reported Incidents in California and the Other 49 States, 1985 to 2022 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 5 7 9 1 3 5 7 9 1 3 5 7 9 1 3 5 7 9 1 8 8 8 9 9 9 9 9 0 0 0 0 0 1 1 1 1 1 2 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 Nonresidential Burglary Incidents Reported in California Nonresidential Burglary Incidents Reported in the Other 49 States Source: Author calculations using FBI Crime Data Explorer. Expanded property crime dataset. RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 11 Figure 6: Reported Number of Robberies in California and the Other 49 States, 1985 to 2022 600,000 500,000 400,000 300,000 200,000 100,000 0 5 7 9 1 3 5 7 9 1 3 5 7 9 1 3 5 7 9 1 8 8 8 9 9 9 9 9 0 0 0 0 0 1 1 1 1 1 2 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 California Reported Number of Robberies Other 49 States Reported Number of Robberies Note: These figures represent all robberies, regardless of location. Source: Author calculations using FBI Crime Data Explorer. Crime dataset. Subcategory: Robbery Figure 7: Reported Shoplifting Incidents, California and the Other 49 States, 1985-2022 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 5 7 9 1 3 5 7 9 1 3 5 7 9 1 3 5 7 9 1 8 8 8 9 9 9 9 9 0 0 0 0 0 1 1 1 1 1 2 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 California Reported Shoplifting Incidents Other 49 States Reported Shoplifting Incidents Source: Author calculations using FBI Crime Data Explorer. Crime dataset. Subcategory: Robbery 12 | LITTLE HOOVER COMMISSION Figure 8: Retailer Shrink Rates 2014-2022 1.8% 1.62% 1.60% 1.60% 1.6% 1.44% 1.40% 1.38% 1.38% 1.38% 1.33% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: National Retail Security Survey Figure 9: Reported Causes of Shrink in 2015 and 2022 2022 2015 1% 6.1% 6% 6.8% 16.5% 38.0% 27.0% 36.0% 38.5% 29.0% External Theft Employee Theft Administrative/Paperwork Error Vendor Fraud or Error Unknown RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 13 Figure 10: Average Stolen Value of Reported California Shoplifting Incidents 1985-2022 600,000 500,000 400,000 300,000 200,000 100,000 0 5 7 9 1 3 5 7 9 1 3 5 7 9 1 3 5 7 9 1 8 8 8 9 9 9 9 9 0 0 0 0 0 1 1 1 1 1 2 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 Sources: FBI Crime Data Explorer. Expanded Property Crime Data. Subcategory: California. Subcategory: Larceny. https://cde.ucr.cjis.gov/LATEST/ webapp/#/pages/explorer/crime/property-crime. Inflation calculated using Bureau of Labor Statistics CPI Inflation Calculator for December of reporting year into February 2024 dollars. THE AVERAGE VALUE OF REPORTED Public Opinion ITEMS SHOPLIFTED FROM CALIFORNIA INCREASED FROM $240 IN 1985 TO $876 IN POLLING ON CALIFORNIANS’ TOP CONCERN 2022.16 A Public Policy Institute of California survey In 2022, retailers nationwide earned $4.9 trillion in conducted in November 2023 found that 8 percent sales,17 and experienced an estimated $112.1 billion of respondents identified “crime, gangs, drugs” as in lost sales due to inventory shrink.18 the top issue confronting the state. About a third identified “jobs, economy, inflation” as the state’s Though there are yearly fluctuations, the reported most important issue, and a roughly similar share primary causes of shrink – external and employee identified housing and homelessness. Compared to theft – have remained relatively stable in the recent crime, fewer respondents identified environmental past.19 concerns, immigration and the state budget as the top issue.20 The reasons for the recent increase in the average value of stolen goods are unclear. In interviews CONCERN ABOUT ORGANIZED RETAIL with Commission staff, researchers speculated THEFT AND ASSOCIATED VIOLENCE IS that possible causes could include the increased INCREASING AMONG RETAILERS. portability of expensive goods, such as computers, In its 2023 security survey, the National Retail or a more targeted approach to shoplifting. This Federation found that an increasing number of appears to be an area in which more research is retailers were concerned about organized retail required. 14 | LITTLE HOOVER COMMISSION crime. More than 78 percent of respondents Figure 11: Survey Question: considered organized retail crime to be more of a Thinking about the state as a priority than it was the year before. Nearly 69 percent whole, what do you think is the of respondents considered non-organized retail theft most important issue facing to be more of a priority than it was the year before.21 people in California today? Violence is a top concern for retailers. In its 2022 survey, the National Retail Federal found that 81 Percentage Issue percent of respondents experienced increased 31% Jobs, Economy, Inflation aggression and violence from perpetrators of 15% Housing costs, Availability organized retail crime – a rise from the 36 percent of retailers who reported an increase in violence and 14% Homelessness aggression the year before.22 8% Crime, Gangs, Drugs 6% Environment, Poluttion, Cllimate MEDIA ATTENTION TO RETAIL THEFT IS Change INCREASING. 4% Immigration (legal and illegal) The Center for Just Journalism tracked U.S. news stories on retail theft between 2018 and the end 3% State budget, Deficit, Taxes of June 2022, and found that the number of stories 3% Government in general, Problems jumped by 134 percent between 2020 and 2021. This, with elected officials, Political parties the researchers noted, corresponded with smash- 1% Water, Drought and-grab videos going viral in early 2021.23 Shoplifting 12% Other (Specify) and nonresidential burglary in California fell by 1.3 3% Don’t Know percent between 2020 and 2021.24 PROPOSITION 47 Figure 12: Annual News Stories California’s Proposition 47, passed by voters in 2014, by Keyword reclassified several theft and drug offenses from felonies and wobblers – meaning the crime can be “Organized charged as a felony or misdemeanor – into straight Retail Crime” misdemeanors. Previously, retail thefts had typically or “Organized “Smash-and- been charged either as petty theft or in some cases Year Retail Theft” Grab” as burglary, giving prosecutors the option of charging 2018 207 521 such crimes as misdemeanors or felonies. In the wake of the passage of Prop. 47, such crimes were 2019 206 436 generally classified as shoplifting and could only be 2020 171 480 charged as misdemeanors. 2021 645 880 2022 (First 541 925 Despite widespread confusion about this point, Prop. Half) 47 did not change the threshold at which crimes could typically be charged as grand theft, a felony. Source: Center for Just Journalism. “Retail Theft: What to Know and That threshold had been increased from $400 to Where to Go for More.” https://justjournalism.org/page/retail-theft. $950 by the Legislature in 2010.25 Accessed January 19, 2024. RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 15 However, Prop. 47 did increase the grand theft the threshold at which many experts believe jails can threshold for a few items, primarily agricultural be safely managed. Some counties have multiple and animal, that had been excluded from the 2010 jails, and individual jails can be above capacity, even legislation. if the county’s overall system is below capacity. About 19 percent of all jails in California were above Other crimes the proposition reclassified from capacity, the PPIC found, a sharp decrease from the felonies and wobblers to misdemeanors include: 61 percent of jails above capacity in October 2014.26 ◊ Check, bond, bank bill, note, cashier’s check, Despite most counties’ jails being below capacity, the traveler’s check or money order forgery where PPIC found that 23 counties reported releases due the value is $950 or less (does not apply if the to capacity constraints.27 More research is needed defendant is also convicted of identity theft). to understand the discrepancy between the rated ◊ Insufficient funds (cannot exceed $950). capacity of jails and capacity-constrained releases. More information on the PPIC’s work on California’s ◊ Receiving stolen property (cannot exceed $950) county jails can be found here. ◊ Possession of some controlled substances. Additional Government CALIFORNIA’S FELONY THEFT THRESHOLD Initiatives to Combat Retail California has one of the lowest felony theft thresholds in the nation, as shown in Figure 14. Theft However, Prop. 47 limited the prior offenses that California’s leaders created additional initiatives to make it possible to charge someone with petty theft combat retail crime in the past few years. These with a prior in California to violent and serious felony include: convictions, crimes that require offenders to register as sex offenders, and theft crimes against vulnerable ◊ Legal definition and task force. In 2019, the state populations. Some other states retain more latitude legislature created the crime of organized retail in the types of crimes that underlie a charge of petty theft. At the same time, it created a property theft with a prior. This means that in those states, crimes task force headed by the California defendants might be charged more often with a Highway Patrol (CHP), in coordination with the felony even if the amount stolen is underneath the Department of Justice, to identify geographic areas threshold cited in Figure 14. experiencing increased property crimes and assist local law enforcement to combat them.28 Jail Capacity ◊ Online reporting. In 2022, the state created Though jail overcrowding often is suspected to an online reporting tool within the California be a reason why lower-level offenders are not Department of Justice that members of the public incarcerated for their full term, recent research by may use to report suspected retail theft.29 the Public Policy Institute of California shows that ◊ Public-private collaboration. In summer 2023, the population of most counties’ jails are not above Attorney General Rob Bonta announced a their jails’ rated capacity. Using September 2023 data, collaboration with large retailers to crack down on the PPIC found that three counties – Amador, Los retail theft. Retailers agreed to be more proactive Angeles, and Fresno – were above their jail system’s in reporting thefts, keep surveillance footage rated capacity. Another two counties – Yolo and for longer periods of time to aid in prosecution, Siskiyou – were above 90 percent capacity, which is 16 | LITTLE HOOVER COMMISSION Figure 13: The Most Common Statutes Related to Retail Theft LAWS FREQUENTLY CITED IN THE RETAIL THEFT DISCOURSE The Committee on Revision of the Penal Code shared the most common statutes related to retail theft.30 These included the following: Crime/Condition Misdemeanor Penal Code (PC) Description Section Shoplifting (Less than Felony PC §459.5 Stealing or intending to steal less than $950) $950 in value from a store during business hours. It is a misdemeanor and can carry up to six months in jail. Higher Value Thefts Felony PC §§ 460, 461, 487, 489 Stealing or intending to steal more than (More than $950) $950 of property can be charged with commercial burglary or grand theft. Sentences can be up to three years in jail. Multiple Thefts Felony PC § 487€ Stealing property over the course of distinct but related acts can be added together (“aggregated”) to reach the $950 felony threshold for grand theft. Multiple people Felony PC §§ 182, 490.4 Two or more people working together to steal or resell stolen goods can, in some circumstances, be charged with organized retail theft or conspiracy. Sentences can be up to three years in jail. Destroying Property Felony PC § 594(b) Destroying more than $400 in property, while Stealing e.g. smashing a window or display case, during a theft can make a person eligible for felony vandalism charges, with a sentence of up to 3 years in jail. Robbery (using force or Felony PC § 211 Taking property, regardless of value, fear while stealing) through force or fear. This is a “strike” offense and carries up to 5 years in prison. Prior Strike Felony PC §§ 669(a),1170.1(a) Committing a felony with a prior strike can result in the felony sentence being doubled, and must be served in prison. RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 17 designate points-of-contact for working with law 5. Eliminating the Organized Retail Crime Sunset enforcement, and create policies to help identify Provision. Currently, the Organized Retail Crime incidents of organized retail theft, among other Task Force, led by the CHP, is scheduled to provisions.31 sunset in 2026. This provision would eliminate that sunset date. ◊ Targeted funding. In fall 2023, the state awarded $267 million to aid law enforcement in combating 6. Increasing Penalties for Resellers.34 organized retail theft. 32 Forty-one law enforcement agencies will receive about $23.6 million dollars ◊ Bipartisan Legislation. Among several other bills addressing retail theft, a bipartisan coalition each over the next three years to create retail theft introduced AB 2943 (Zbur and Robert Rivas) in investigative units, install advanced surveillance 2024. If enacted, the bill would:35 technology, train loss prevention officers, create new task forces, increase cooperation with ◊ Clarify that similar acts against multiple victims businesses, and set up sting operations. This or in multiple counties can be aggregated into a funding also is to be used to crack down on vehicle grand theft charge. and catalytic converter theft. Thirteen district ◊ Allow the aggregation of three years’ worth of attorneys’ offices will receive about $2 million each stolen property found in the possession of a over the next three years to establish prosecution fence. units and county-wide intelligence centers for ◊ Add shoplifting to domestic violence, violating organized retail theft.33 a restraining order, and carrying a concealed ◊ Property crime framework. In January 2024, firearm in an airport to crimes for which law Governor Newsom proposed a six-point property enforcement can make a warrantless arrest crime framework addressing many aspects of without the offense occurring in their presence retail theft: if they have probable cause to believe the crime 1. Cracking Down on Professional Thieves. This occurred. would create new penalties for stolen goods ◊ Extend a provision in existing law that exempts resellers and those stealing with the intent to law enforcement from releasing with a resell. promise to appear in court someone arrested 2. Increasing Enforcement Tools. This would for misdemeanor organized retail theft. Set allow law enforcement to arrest retail theft to expire in 2026, that provision would be suspects even if they did not witness the crime extended to 2031. in progress. ◊ Increase the maximum probation ceiling for 3. Aggregating Theft Amounts. This would clarify those convicted of shoplifting or petty theft existing law that law enforcement may combine from one year to two years, and require courts the value of multiple thefts, across different to impose a minimum term of one year. victims, to reach the threshold for grand theft. ◊ State legislative intent to enact legislation 4. Fighting Auto Burglary. Auto burglary is the requiring sellers of specified products to type of property crime that has seen significant maintain chain of custody requirements. recent increases, and this would create new ◊ State legislative intent to require retail penalties for those who steal with the intent to businesses above a certain size to periodically resell. report theft data and to strengthen laws preventing stolen goods from being sold online. 18 | LITTLE HOOVER COMMISSION Figure 14: Felony Theft Threshold by State $0 $500 $1,000 $1,500 $2,000 $2,500 Texas Wisconsin Colorado Connecticut Pennsylvania South Carolina Alabama Delaware Georgia Iowa Kansas Maryland Montana Nebraska Rhode Island Utah Massachussettes Alaska Arizona Arkansas District of Colombia Idaho Louisiana Maine Michigan Minnesota Mississippi New Hampshire New York North Carolina North Dakota Ohio Oklahoma Oregon South Dakota Tennessese Virginia West Virginia Wyoming California Vermont Florida Hawaii Indiana Missouri Washington Nevada Illinois Kentucky New Mexico New Jersey RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 19 California Senate pro Tempore Mike McGuire is Recommendations leading a bipartisan, bicameral effort to prevent and respond to crime. Some of the bills related to As outlined above, the Legislature is considering retail theft under his Working Together for a Safer Penal Code changes as this report is being produced. California initiative include:36 Because we anticipate legislative action on those changes before the recommendations in this ◊ SB 982 (2024, Wahab). Similar to AB 1802, this bill report could be implemented, the Commission’s would remove the 2026 sunset to make organized recommendations focus on obtaining the necessary retail theft a permanent designation for this type data to allow policy- and lawmakers to construct of organized crime. evidence-based solutions in the long term, rather ◊ SB 1144 (2024, Skinner). This bill would require than immediate changes to the Penal Code. third-party sellers on online marketplaces to be California needs comprehensive data collection and certified, and would ban sellers suspected of analysis to better tackle retail theft and its impacts. criminal activities from selling on those platforms. California’s Department of Justice has made a fine ◊ SB 1242 (2024, Min). When sentencing defendants start in collecting criminal-justice related data, but convicted of arson, this bill would allow an this effort needs to be expanded significantly. State offender’s intent to use the fire to commit lawmakers should mandate and appropriately organized retail theft to be considered an fund the collection of detailed data that would aggravating factor. allow California leaders and researchers to better ◊ SB 1416 (2024, Newman). This bill would create a understand the circumstances around crime and sentencing enhancement of 1 to 4 years for high- the people involved in it. These data should be value thefts from commercial establishments or anonymized to protect individuals’ privacy. To for planning, reselling stolen items, or otherwise maximize the utility of this data, it should be made working with someone who committed or accessible in user-friendly formats, catering to both intended to commit a high-value theft. academic researchers and the general public, with Additionally, a ballot measure proposed for the tools for geographical and temporal mapping. November 2024 election would allow prosecutors In addition to expanding the data it collects, to charge a suspect with a felony, regardless of the California’s policymakers should collaborate with stolen item’s value, if the suspect has two or more the universities and other nonpartisan research prior theft convictions. The measure also provides for institutions to conduct in-depth studies around retail sentencing enhancements if the suspect acted with theft. This research would fill existing knowledge other people or if the value of goods stolen is large. gaps and guide the development of future solutions. The measure also contains several provisions related California can set a precedent for data-driven to drug-related crimes.37 criminal justice policy, paving the way for more informed, effective decision-making that benefits all Californians. 20 | LITTLE HOOVER COMMISSION Recommendation 1: The California Department d. This data should be made available to the of Justice should collect detailed data that includes public in formats friendly for both professional but is not limited to the circumstances surrounding researchers and the layperson. Ideally, this a crime, law enforcement’s response to the crime, should include options to map the data demographic data about the people arrested and, if geographically and temporally. applicable, charged with the crime, whether and what Recommendation 2: To better understand the charges the prosecutors file, the final disposition of complexities involved in the causes and effects of the case, and the offender’s rehabilitation, reentry, retail crime to develop evidence-based solutions, and recidivism. the State of California should fund studies on the a. The state should incorporate, to the extent following topics. This research should be conducted feasible, existing data, databases, and data by the University of California, the California State collection systems. University, the California Community Colleges, independent universities, or other nonpartisan b. The Legislature should appropriately fund this research institutions. initiative, including increased administrative costs. a. Retail theft preventative measures and c. The data collected should help policymakers effectiveness. This should include information and researchers respond to the following on the types and effectiveness of retail theft topics. Additionally, California Department of prevention programs, policies, and technologies. Justice officials should confer with policymakers b. Underreporting of retail theft. By examining the and researchers, as well as their own experts, frequency of underreporting and the degree to to determine what other topics should be which underreporting changes over time, this addressed via the data collected by the state study could resolve the most important gap in • Crime statistics. current data about retail theft. • Geographic data. c. Economic impact of retail theft. This should • Temporal data. include direct and indirect costs to businesses, insurance companies and premiums, taxpayers, • Demographic data. the community, and local and state government. • Response times. d. Causes of public perception of retail theft. In • Prosecution and Adjudication data addition to understanding what the public’s • Rehabilitation, Reentry, and Recidivism data. In perception of retail theft is, this study should addition to tracking the amount of time served investigate why the public believes what it does. and/or spent on probation, the state should e. Fencing of stolen goods. This study should look at track what resources were provided for an how and where stolen goods are disseminated to offender’s rehabilitation and, if incarcerated, consumers and who is purchasing them. reentry (e.g. education, substance use disorder rehabilitation, cognitive behavioral therapy, reentry wraparound services), as well as whether the individual reoffends. RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 21 Appendix 9 22 | LITTLE HOOVER COMMISSION 10 RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 23 11 24 | LITTLE HOOVER COMMISSION 13 RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA| 25 13 26 | LITTLE HOOVER COMMISSION 14 RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 27 15 28 | LITTLE HOOVER COMMISSION 16 RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 29 17 30 | LITTLE HOOVER COMMISSION Notes 1. California Penal Code §459.5. Statistics, U.S. Department of Justice. September 2014. Criminal Victimization, 2013: Revised. Table 6. https:// 2. California Penal Code §459, §459.5 §487. bjs.ojp.gov/redirect-legacy/content/pub/pdf/cv13.pdf. Accessed March 15, 2024. Also, Jennifer Truman, Lynn 3. California Penal Code §211. Langton, and Michael Planty, Bureau of Justice Statis- 4. California Penal Code §490.4(a). tics, U.S. Department of Justice. October 2013. Criminal Victimization, 2012. https://bjs.ojp.gov/redirect-legacy/ 5. California Penal Code §490.4(a). content/pub/pdf/cv12.pdf. Accessed March 15, 2024. Also, Jennifer L. Truman and Michael Planty, Bureau of 6. California Department of Justice Data Portal. Crimes & Justice Statistics, U.S. Department of Justice. October Clearances. All counties. Statistical years 1985 through 2012. Crime Victimization, 2011. Table 8. https://bjs.ojp. 2022. https://openjustice.doj.ca.gov/exploration/ gov/redirect-legacy/content/pub/pdf/cv11.pdf. Accessed crime-statistics/crimes-clearances. March 15, 2024. 7. U.S. Department of Justice. National Crime Victimization 8. California Department of Justice. August 18, 2023. Email Survey. NCVS-1 Basic Screen Questionnaire. Implementa- to Commission staff. tion Date 1/12022. OMB No. 1121-0111. https://bjs.ojp. gov/content/pub/pdf/ncvs22_bsq.pdf. Accessed March 9. AB 1065 (2018, Jones-Sawyer). Chapter 803, Statutes 15, 2024. Alexandra Thompson and Susannah N. Tapp, of 2018. https://leginfo.legislature.ca.gov/faces/billTex- Bureau of Justice Statistics, U.S. Department of Justice. tClient.xhtml?bill_id=201720180AB1065. Also, AB 331 September 2023. Criminal Victimization, 2022. Table 4. (2021, Jones-Sawyer). Chapter 113, Statutes of 2021. https://bjs.ojp.gov/document/cv22.pdf. Accessed March https://leginfo.legislature.ca.gov/faces/billNavClient. 15, 2024. Also, Alexandra Thompson and Susannah N. xhtml?bill_id=202120220AB331. Also, Assembly Floor Tapp, Bureau of Justice Statistics, U.S. Department of Jus- Analysis. April 8, 2024. AB 1802. Pages 5-6. https://legin- tice. September 2022. Rev. July 5, 2023. Criminal Victim- fo.legislature.ca.gov/faces/billAnalysisClient.xhtml?bill_ ization, 2021. Table 4. https://bjs.ojp.gov/content/pub/ id=202320240AB1802#. pdf/cv21.pdf. Accessed March 15, 2024. Also, Rachel E. Morgan and Alexandra Thompson, Bureau of Justice 10. AB 1802 (Jones-Sawyer). https://leginfo.legis- Statistics, U.S. Department of Justice. October 2021. lature.ca.gov/faces/billTextClient.xhtml?bill_ Criminal Victimization, 2020. Table 4. https://bjs.ojp.gov/ id=202320240AB1802. content/pub/pdf/cv20sst.pdf. Accessed March 15, 2024. 11. Magnus Lofstrom, Policy Director and Senior Fellow, Also, Rachel E. Morgan and Jennifer L. Truman, Bureau Public Policy Institute of California. January 25, 2024. of Justice Statistics, U.S. Department of Justice. Septem- Written testimony to the Commission. Slide 4. Available ber 2020. Criminal Victimization, 2019. Table 6. https:// at https://lhc.ca.gov/wp-content/uploads/Lofstrom_Tes- bjs.ojp.gov/redirect-legacy/content/pub/pdf/cv19.pdf. timony-slides_LHC_Jan-25-2024_final.pdf. Accessed March 15, 2024. Also, Rachel E. Morgan and Barbara A. Oudekerk, Bureau of Justice Statistics, U.S. 12. Data back to 1985 shared by the California Department Department of Justice. September 2019. Criminal Victim- of Justice. November 19, 2023. Written communication ization, 2018. Table 5. https://bjs.ojp.gov/redirect-lega- with Commission staff. Also, Magnus Lofstrom, Poli- cy/content/pub/pdf/cv18.pdf. Accessed March 15, 2024. cy Director and Senior Fellow, Public Policy Institute Also, Rachel E. Morgan and Jennifer L. Truman, Bureau of California. January 25, 2024. Written testimony to of Justice Statistics, U.S. Department of Justice. Decem- the Commission. Slide 4. Available https://lhc.ca.gov/ ber 2018. Criminal Victimization, 2017. Table 6. https:// wp-content/uploads/Lofstrom_Testimony-slides_LHC_ bjs.ojp.gov/redirect-legacy/content/pub/pdf/cv17.pdf. Jan-25-2024_final.pdf. Accessed March 15, 2024. Also, Rachel E. Morgan and Grace Kena, Bureau of Justice Statistics, U.S. Department 13. Magnus Lofstrom, Policy Director and Senior Fellow, of Justice. October 2018. Criminal Victimization 2016: Public Policy Institute of California. January 25, 2024. Revised. Table 4. https://bjs.ojp.gov/redirect-legacy/ Written testimony to the Commission. Slide 5. Available content/pub/pdf/cv16re.pdf. Accessed March 15, 2024. at https://lhc.ca.gov/wp-content/uploads/Lofstrom_Tes- Also, Jennifer L. Truman and Rachel E. Morgan, Bureau timony-slides_LHC_Jan-25-2024_final.pdf. of Justice Statistics, U.S. Department of Justice. October 2016. Criminal Victimization, 2015. Table 4. https:// 14. California Department of Justice. Data Portal. Crimes and bjs.ojp.gov/redirect-legacy/content/pub/pdf/cv15.pdf. Clearances. https://data-openjustice.doj.ca.gov/sites/ Accessed March 15, 2024. Also, Jennifer L. Truman and default/files/dataset/2023-06/Crimes_and_Clearanc- Lynn Langton, Bureau of Justice Statistics, U.S. Depart- es_with_Arson-1985-2022.csv. Also, Magnus Lofstrom, ment of Justice. August 2015. Criminal Victimization, Policy Director and Senior Fellow, Public Policy Institute 2014. Table 6. https://bjs.ojp.gov/redirect-legacy/con- of California. January 25, 2024. Written testimony to tent/pub/pdf/cv14.pdf. Accessed March 15, 2024. Also, the Commission. Slide 5. Available at https://lhc.ca.gov/ Jennifer L. Truman and Lynn Langton, Bureau of Justice wp-content/uploads/Lofstrom_Testimony-slides_LHC_ Jan-25-2024_final.pdf. RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 31 15. National Retail Federation. National Retail Security 24. California Department of Justice Data Portal. Crimes & Surveys. https://nrf.com/research-insights/national-re- Clearances. All counties. Statistical years 1985 through tail-security-survey. Accessed December 7, 2023 2022. https://openjustice.doj.ca.gov/exploration/ crime-statistics/crimes-clearances. California experi- 16. Federal Bureau of Investigation Crime Data Explorer. enced a reported 151,680 incidents of shoplifting and California. Expanded Property Crime. Larceny Offense nonresidential burglary in 2020, and 149,723 such inci- Analysis. Current Year for each year from 1985 through dents in 2021. 2022. https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/ explorer/crime/property-crime. Adjusted for inflation us- 25. AB 2372 (2010, Ammiano). Chapter 693, Statutes of ing the U.S. Bureau of Labor Statistics CPI Calculator for 2010. Also, J. Richard Couzens, Judge of the Superior January 2022 buying power. https://www.bls.gov/data/ Court, County of Placer (Ret.) and Tricia A. Bigelow, inflation_calculator.htm. Presiding Justice, Court of Appeal, 2nd Appellate District, Div. 8. May 2017. “Proposition 47: The Safe Neighbor- 17. National Retail Federation. “NRF 2023 Annual Retail hood and Schools Act.” Page 33. Available here: https:// Sales Forecast FAQ.” https://nrf.com/nrf-2023-annual- www.courts.ca.gov/documents/Prop-47-Information.pdf. retail-sales-forecast-faq. Accessed February 21, 2023. Purchases at automotive dealers, gasoline stations, and 26. Brandon Martin and Magnus Lofstrom, Public Policy restaurants are not included in NRF sales figures. Institute of California. February 15, 2024. “Falling Jail Populations Have Eased Overcrowding in Most County 18. National Retail Federation. September 26, 2023. “Na- Jails.” https://www.ppic.org/blog/falling-jail-popula- tional Retail Security Survey 2023.” https://cdn.nrf.com/ tions-have-eased-overcrowding-in-most-county-jails/. sites/default/files/2023-09/NRF_National_Retail_Securi- Accessed March 7, 2024. ty_Survey_2023.pdf. 27. Brandon Martin and Magnus Lofstrom, Public Policy 19. National Retail Federation and the Loss Prevention Institute of California. February 15, 2024. “Falling Jail Research Council. 2022 Retail Security Survey. Page 6. Populations Have Eased Overcrowding in Most County https://nrf.com/research/national-retail-security-sur- Jails.” https://www.ppic.org/blog/falling-jail-popula- vey-2022. Accessed December 7, 2023. Also, National tions-have-eased-overcrowding-in-most-county-jails/. Retail Federation. 2018 National Retail Security Survey. Accessed March 7, 2024. Page 5. https://cdn.nrf.com/sites/default/files/2018-10/ NRF-NRSS-Industry-Research-Survey-2018.pdf. Please 28. Assembly Committee on Public Safety. July 15, 2021. AB note: The 2015 figures were taken from a chart spanning 331 Bill Analysis. https://leginfo.legislature.ca.gov/fac- the past 3 years included in the 2018 National Retail Se- es/billAnalysisClient.xhtml?bill_id=202120220AB331#. curity Survey. These figures differ slightly from the data Accessed September 8, 2023 published in 2016 (which covered the year 2015). Staff have chosen to use the most recently-published figures. 29. AB 1700 (2022, Maienschein). Chapter 855, Statutes of The original data can be viewed on page 9 in the 2016 2022. Reporting page can be found here. National Retail Security Survey, available here: https:// 30. California Office of the Attorney General. June 20, 2023. cdn.nrf.com/sites/default/files/2018-10/NRF_2016_ Joint Statement of Principles. https://oag.ca.gov/system/ NRSS_restricted-rev.pdf. files/attachments/press-docs/Final%20ORC%20Mark-Up- 20. Public Policy Institute of California. December 2023. %5B2%5D.pdf. Accessed November 8, 2023 “PPIC Statewide Survey: Californians and Their Gov- 31. Rick Owen, Senior Staff Counsel, Committee on Revision ernment.” Page 33. https://www.ppic.org/publication/ of the Penal Code. January 25, 2024. Written testimony ppic-statewide-survey-californians-and-their-govern- to the Commission. Pages 4-5. Available on the Commis- ment-december-2023/. Accessed January 19, 2024. sion’s website. 21. National Retail Federation. September 26, 2023. “Na- 32. Office of the Governor. September 14, 2023. “State tional Retail Security Survey 2023.” Page 4. https://cdn. Makes Largest-Ever Investment to Combat Smash-and- nrf.com/sites/default/files/2023-09/NRF_National_Re- Grabs.” https://www.gov.ca.gov/2023/09/14/california- tail_Security_Survey_2023.pdf. makes-largest-ever-investment-to-combat-smash-and- 22. National Retail Federation and the Loss Prevention grabs/. Accessed September 8, 2023 Research Council. 2022 Retail Security Survey. Page 23. 33. Office of the Governor. September 14, 2023. “State https://nrf.com/research/national-retail-security-sur- Makes Largest-Ever Investment to Combat Smash-and- vey-2022. Accessed December 7, 2023. Grabs.” https://www.gov.ca.gov/2023/09/14/california- 23. Source: Center for Just Journalism. “Retail Theft: What makes-largest-ever-investment-to-combat-smash-and- to Know and Where to Go for More.” https://justjournal- grabs/. Accessed September 8, 2023 ism.org/page/retail-theft. Accessed January 19, 2024. 32 | LITTLE HOOVER COMMISSION 34. Office of Governor Gavin Newsom. January 9, 2024. “Governor Newsom Calls for Legislation Crack- ing Down on Property Crime.” https://www.gov. ca.gov/2024/01/09/property-crime-framework/. Ac- cessed January 19, 2024. 35. AB 2943. (Zbur and Robert Rivas) See https://leginfo. legislature.ca.gov/faces/billNavClient.xhtml?bill_ id=202320240AB2943. 36. Mike McGuire, California State Senator, District 2. “Work- ing Together for a Safer California.” https://sd02.senate. ca.gov/safer-california-plan. Accessed May 30, 2024. 37. Ballot Initiative 23-0017A1. Status as of May 24, 2024. Text available here: https://elections.cdn.sos.ca.gov/ ballot-measures/pdf/1959-25percentnotice-01-24-24. pdf. Initiative and Referendum Qualification Status can be checked here: https://www.sos.ca.gov/elections/bal- lot-measures/initiative-and-referendum-status. RETAIL THEFT: A DATA-DRIVEN RESPONSE FOR CALIFORNIA | 33 Little Hoover Commission Members CHAIR PEDRO NAVA | Santa Barbara JOSÉ ATILIO HERNÁNDEZ | Burbank Appointed to the Commission by Speaker of the Assembly Appointed by Speaker of the Assembly Anthony Rendon John Pérez in April 2013 and reappointed by Speaker in April 2023. Founder and CEO of IDEATE California, a of the Assembly Anthony Rendon in 2017 and again public relations and policy management firm. Also, founder in 2021. Government relations advisor. Former State and Board Chairman of ideateLABS. Former Director for Assemblymember from 2004 to 2010, civil litigator, External Affairs and Community Relations for ConnectEd: deputy district attorney and member of the state Coastal The California Center for College and Career. Commission. Elected chair of the Commission in March 2014. JASON JOHNSON | Napa Appointed by Governor Newsom in June 2023. Member VICE CHAIR ANTHONY CANNELLA | Ceres of the Land Trust of Napa County Board of Trustees and Appointed to the Commission by the Senate Rules Horary Commander of Travis Air Force Base. Former Committee in March 2022. Civil engineer and principal with Managing Partner at Founders Den. Founder and former Northstar Engineering Group. Former State Senator from CEO at August Home Inc. 2010 to 2018. Previously served on the Ceres City Council and was twice elected mayor of that city. Elected Vice Chair SEN. DAVE MIN | Irvine of the Commission in July 2023. Appointed to the Commission by the Senate Rules Committee in September 2021. Elected in November 2020 DION ARONER | Berkeley to represent the 37th Senate District. Represents Anaheim Appointed to the Commission by the Senate Rules Hills, Costa Mesa, Huntington Beach, Irvine, Laguna Beach, Committee in April 2019. Partner for Aroner, Jewel, and Laguna Woods, Lake Forest, Newport Beach, Orange, Ellis. Former State Assemblymember from 1996 to 2002, Tustin, and Villa Park. chief of staff for Assemblymember Tom Bates, social worker for Alameda County, and the first female president ASM. LIZ ORTEGA | San Leandro of Service Employees International Union 535. Appointed to the Commission by Speaker of the Assembly Anthony Rendon in March 2023. Elected in November DAVID BEIER | San Francisco 2022 to represent the 20th Assembly District. Represents Appointed to the Commission by Governor Edmund G. Hayward, San Leandro, most of Union City, portions Brown Jr. in June 2014 and reappointed in January 2018. of Dublin and Pleasanton, and several unincorporated Managing director of Bay City Capital. Former senior officer communities. of Genentech and Amgen, and counsel to the U.S. House of Representatives Committee on the Judiciary. JANNA SIDLEY | Los Angeles Appointed to the Commission by Governor Edmund G. ASM. PHILLIP CHEN | Yorba Linda Brown Jr. in April 2016 and reappointed in February 2020. Appointed to the Commission by Speaker of the Assembly Partner at Ichor Strategies and appointed to the Board Anthony Rendon in October 2021. Elected in November of the Los Angeles City Employee Retirement System 2016 to represent 55th District. Represents portions of Los (“LACERS”). Former general counsel at the Port of Los Angeles, Orange and San Bernardino counties and the Angeles and city attorney at the Los Angeles City Attorney’s cities of Brea, Chino Hills, Diamond Bar, La Habra, Industry, Office. Placentia, Rowland Heights, Walnut, West Covina and Yorba Linda. SEN. SCOTT WILK | Santa Clarita Appointed to the Commission by the Senate Rules GIL GARCETTI | Los Angeles Committee in April 2023. Elected in November 2016 to Appointed to the Commission by Governor Gavin Newsom represent the 21st Senate District. Represents communities in November 2021. Professional photographer and author in the Antelope, Santa Clarita, and Victor Valleys. of ten books. Former Los Angeles County District Attorney, Full biographies are available on the Commission’s teaching Fellow at Harvard University’s Kennedy School, website at www.lhc.ca.gov. and president of the California Science Center Foundation’s Board of Trustees. 34 | LITTLE HOOVER COMMISSION “DEMOCRACY ITSELF IS A PROCESS OF CHANGE, AND SATISFACTION AND COMPLACENCY ARE ENEMIES OF GOOD GOVERNMENT.” By Governor Edmund G. “Pat” Brown, addressing the inaugural meeting of the Little Hoover Commission, April 24,1962, Sacramento, California Milton Marks Commission on California State Government Organization and Economy www.lhc.ca.gov