CITIZENS LE2UGUE RElPORT We Make It Too Easy for the Arsonist CITI1;ENS LEAGUE REPORT

We Make It Too Easy For the Arsonist

A proposal for reducing the incentives to commit arson . through better prevention, detection, investigation and practices.

Prepared by Citizens League Committee on Arson Sandra Berthene, Chairman ~. -.

Approved by Citizens League Board of Directors April 26,1978

Citizens League 84 South 6th Street Minneapolis, Minnesota 55402 Telephone: 338-0791 LE OF CON

INTRODUCTION ...... i

MAJOR IDEAS IN THE REPORT ...... ii

FINDINGS. CONCLUSIONS. RECOMMENDATIONS ...... 1

The Nature and Size of the Arson Problem ...... 1

Arson Prevention ...... 7

Arson Detection ...... 9

Criminal Investigation of Arson ...... 11

Prosecution of Arson ...... 13

Insuring Property ...... 15

Reimbursing Losses ...... 1.9

DISCUSSION OF RECOMMENDATIONS ...... 21

APPENDIX ...... 23 .

Trends: Fires Due to Arson and Suspicious Causes Minneapolis and St. Paul ...... 23

Reported Arson Offenses and Arrests Minnesota 1972-1976* ...... 24

GLOSSARY OF ORGANIZATIONS ...... 25

COMMITTEE ACTIVITY ...... 27 INTRODUCTION

Recent national attention to arson has changed to create three degrees of' been considerable. Articles in major arson and a statute for negligent national magazines have coined a fires. number of phrases to describe arson such as "the fastest growing crime" and Within this context, this study of arson "the malignant crime". Congress is was undertaken. The desire was to upder- debating the merits of re-classifying stand the nature of the state's arson arson in the FBI's system for tracking problem and whether the existing methods crime. Major advertising campaigns, for degling with arson are adequate. launched by the insurance industry, have been alerting the public to arson The following report is not a study of f~rprofit. Fraud schemes involving the quality of fire protection in the high level individuals have been state, although arson does involve the uncovered in a few major cities. fire service. It is not, salely, a report on . Thq All of these factors resulted in totality of arson encompasses far more increased attention to Minnesota's than arson for profit. It is nob an arson situation. In 1973, a number assessment of the criminal justice of arson investigators in the state system as a whole. Instead, each of formed the Minnesota Chapter of The these issues is exapined relative to International Association of Arson the arson problem in Minnesota. Investigators. The chapter attracted the interest and involvement of As discussions continue on ways to deal Minnesota's insurance industry. A with arson, this study should provide large fraud and arson seminar was held the basis'for understanding the nature by the chapter in 1976. Also, in the of the problem in Minnesata and for 1976 legislative session, laws developing sound solutions to reduce relating to the crime of arson were arson in the state. Knowledge of Minnesota's arson problem Is severely - should develop a mechanism for limited by inadequacies in the system for reporting identifying and recording motives fires and arson. for arson incidents.

-Arson is a serious problem. ..but -A statistically accurate sampling assessing the size and nature of method should be developed for the $he problem is a difficult task metropolitan area to gather in depth using available crime and fire information on the nature of the statistics. arson problem.

-No information is available on what Resources to reduce arson incidents have not been motive accounts for the commission maximized. of the crime. ( -Attempts to prevent arson have been A system must be devised to provide accurate ad limited. detailed information on the arson problem. -Undetected arson probably consti- -Individuals should be required tutes a major segment of the arson to report fires to fire depart- problem. ments before receiving insurance c.laims. -Detection of arson has been limited by non-involvement of the fire . . .-Fire departments should report all fighter in the determination of the arson incidents to local law enforce- cause of the fire. ment agencies for reporting to the state. -Responsibility for investigating arson is not clear in theory or in -The Bureau of Criminal Apprehension practice...... IN OUR REPORT

Steps should be taken to decrease the ability to -Fast payment of fraudulent insurance commit arson and get away with it. claims contributes to the incentives for arson. -To increase the likelihood that fire hazards will be eliminated, The potential to exploit the insurance system must be results of fire inspections reduced. should be shared with the insurer of the property and with the -Insurance companies should be public. required to examine properties physically before they are -Training of fire fighters should insured to guard against over- include training for assistance in insurance. determining the cause of the fire. -The application for property -Impediments to arson prosecution insurance should become a part of should be examined and methods to the policy ...any fraudulent make sure arson is prosecuted must information contained in the be put in place. application should be cause for voiding the policy or non-payment -Criminal investigation of arson of claims. should be performed by local law enforcement agencies ...fire -A method to make it possible, departments should be responsible to delay claims payments for determining the cause of the during criminal investigations fire. of argon for profit should be installed. The system for insuring property can create opportultie8 to burn for profit. -Insurance companies should be required to share certain factual -Inflated values on insurance policies informatibn relating to an can provide the incentives to burn insured's policy history with the for profit. criminal investigators. FINDINGS, CONCLUSIONS AND RECOMMJ2NDATIONS

- - Confusion about the arson problem can be attributed to the fact that arson cuts across so many aspects of the fire service, the criminal justice system, and the . insurance industry. To understand the arson situation requires an examination of each of these pieces which, together, provide the incentives or disincentives for committing arson. These aspects are reviewed in the following sections: the nature and size of the arson problem; arson prevention; arson detection; criminal investigation of arson; prosecution of arson; insuring property; and reimbursing losses.

THE NATURE AND SIZE OF THE property. This definition is based on ARSON PROBLEM the current Minnesota statutes relating to the crime of arson.

Findings Re~~lonafor committing arson include revenge, protest, pyromania, concdng other cdma, Deiinitona for arson vary greatly. recognition, vandalism, and profit.

Among the general citizenry the most -Arson motivated by revenge is done for common definitions of arson relate to retribution for a perceived or real the motive. Arson is thought of as the injustice. crime of burning property to collect a profit from insurance proceeds, or it -Protest motivated arson is related to is thought of as an act of vandalism. social cduses. This sort of burning Even among the experts there is a occurs during times of social unrest. difference in the definitions. Some call arson the willful and malicious -Pyromania is the compulsive setting of- burning of property and others consider f ires. any fire which is set by human hands to be arson. The latter definition would -An attempt to conceal other crimes with include the setting of fires by small fire may be done in connection with a children. According to the American burglary, embezzlement, murder or Heritage Dictionary of the English other crime where fire can damage Language, arson is defined as: the incriminating evidence. crime of maliciously burning the build- ing or property of another, or of -Those who burn to get recognition burning one's own for some improper will start fires, then report and purpose, as to collect insurance. extinguish the fire to be considered heroic. To avoid the necessity of interpreting the legalities of the words willful and -vandalistic arson is normally d malicious, arson could be thought of juvenile act...the senseless burning as the unlawful, intentional burning of of property for no clear reason. -Profit motivated arson is most suspicious fires totaled $563 million in commonly thought of as the burning of 1974 ...up nearly ten-fold from the property to collect excessive insur- estimated $60 million loss in 1964. ance proceeds. It can also include the burning of a property at a loss In this same time period, as estimated because, off in the future, the by NFPA, the number of fires in the owner sees that business won't be nation attributed to arson or suspicious profitable. In some cases, burning causes went from 30,000 to 144,000. may simply be the quickest way to These figures represent only the direct liquidate. And, burning for profit property losses from arson. Through a includes everything from a homeowner diminished tax base, loss of jobs, the intentionally damaging a small amount expense of operating fire departments, of property to get money for redeco- and other factors, total losses from the rating to the large commercial crime of arson exceed losses from business hiring a "torch", someone property damage alone. who burns buildings for pay, to eliminate an entire business. Locally, it is not clear if arson is increasing at the No matter what motive accounts for estimated national rate. the commission of the crime, the nature of fire is such that it can In Minneapolis, according to the annual damage far more than the arsonist reports from the fire department, the intended. In fact, the National Fire number of reported fires has remained Protection Association* (NFPA), a quite constant for the last ten years. private non-profit organization which Annually, since 1967 the number of provides the only source of national reported fires has been around 5,000. arson statistics, estimates that Reported arson incidents totaled 211 in 1,000 persons die and 10,000 persons 1967. A slight increase in fires are injured each year in fires set attributed to arson occurred in 1968, . by arsonists. then the number dipped to 182 incidents in 1970. From 1970 to 1973, the number of known arson ificidents doubled to 371 Arson is receiving a great deal of attention in the in 1973... the.highest number of national press. recorded arson incidents in Minneapolis in the last decade. Since then, the Numerous articles have appeared in number of reported arson incidents has national magazines and newspapers decreased to 202 in 1976. (See Appendix) reporting a large increase in the number of arson incidents and the The dollar loss attributed to arson and dollar losses from property damage suspicious fires showed a similar due to arson. The insurance pattern ...from just under $1 million in industry has, also, launched major 1967 to a high of just under $3 million advertising campaigns to alert the in 1973;.then a decrease occurred to public to the presence and magnitude 1.8 million in 1976. Adjusting :for of the crime. inflation eliminates some of the dis- parity between the figures from 1967 to These articles and advertisements 1976. Also, a single large loss fire usually point to estimates of the attributed to arson have a great impact National Fire Protection Association; on the ability to accurately spot trends that property loss from arson and from dollar loss figures.

*For fuller description of NFPA and other organizations mentioned in this report see Glossary on Page 24. The situation in St. Paul has been Reported fires, in the state, increased roughly comparable to that found in 25% in the last decade, but requests Minneapolis. According to the annual for investigations increased over 100% reports of the St. Paul Fire Depart- and determinations of suspicious or ment, the number of fires reported in arson fires had increased 65%. the last ten years is about 3,500 annually. The number of fires attri- Crime reports submitted by local law buted to arson and suspicious causes enforcement agencies to the State in 1967 totaled 170. The highest Bureau of Criminal Apprehension (BCA) , . number of fires due to arson and another division of the Department of suspicious causes was in 1974 with Public Safety, are another source of 371 recorded incidents. Since 1974 arson statistics. The cities of there has been a decrease in annual Minneapolis and St. Paul do not submit arson incidents to 283 in 1976. (See reports on arson incidents to the BCA. Appendix) For the remainder of the state, there were reports of 796 arson incidents in According to the figures available from 1976. In 1972, the earliest year with the State Fire Marshal's Office, a comparable reporting methods, 431 arson division of the Minnesota Department of incidents were reported to the BCA. Public Safety responsible for fire inspections, fire data and assistance Local law enforcement officials also to local fire departments in determin- report arrests to the bureau. In 1976, ing the cause of fires, there has been arson arrests totaled 322, as reported an increase in reported fires in the by local officials. In 1972, reported state in the last ten years. The State arson arrests totaled 179. Again these Fire Marshal receives reports on fires figures do not include Minneapolis and from the approximately 780 fire depart- St. Paul. (See Appendix) ments throughout the state. Before 1976, St. Paul and Minneapolis did nqt In Minneapolis arrests were made .in 27i have to report fires to the state, so of the 202 cases of arson in 1976. In the available figures do not include St. Paul, in the same year, 22 of the these two cities. 283 arson 'cases resulted in arrests.

In 1967, 5,354 fires were reported to Nationally, according to a study done the State Fire Marshal. In that year, for the Law Enforcement Assistance the State Fire Marshal received 300 Administration for every 100 fires requests from local fire departments classified as arson or suspicious, for assistance in investigating the only 9 persons are arrested, 2 convic- cause of fires. Subsequent investiga- ted and -7 incarcerated. These tions resulted in determination9 that figures were arrived at using informa- 68 of the fires were caused by arson tion from the Federal Bureau of and 81 were of suspicious origin for a Investigation information on arrests total of 149. and the State of California statistics for convictions and incarcerations. In 1976, the total number of fires reported to the State Fire Marshal's Office had increased to 7,465. Using available statistics, it is diffxult to tell how Requests for assistance from the State much arson is occurring. Fire Marsha1,totaled 667. These investigations resulted in a,determina- It is not known how many fires are tion that 134 of the fires were caused never even reported to a fire depart- by arson and 122 were attributed to ment. ..fires where the occupant suspicious origins for a total of 246. extincpishes the fire and does not : notify a fire department. According to Crime records for arson only include a 1975 household fire survey done for those incidents which the police or two federal agencies, the National Fire sheriff came into contact with. Because Prevention and Control Administration arson is usually identified by the fire (NFPCA) and the Consumer Products service, the information may not be Safety Commission, only 8%of household reported to the Bureau of Criminal fires are reported to fire departments. Apprehension.

If a fire is reported to a fire depart- National statistics on crime, kept by ment, it might not be reported to the the Federal Bureau of Investigation, do State Fire Marshal. Minnesota state not include arson. The FBI only requires law mandates that fire incidents be the reporting of certain crimes--called reported to the State Fire Marshal if Part I crimes by the FBI--and arson is the property loss from the fire exceeds currently classified as a Part I1 crime. $100. However, no incentives exist for A bill has been introduced in Congress to adhering to the law and the law change the classification of arson to a contains no enforcement provision. Part I crime. Arson would then be reported to the FBI on a regular basis. For purposes of reporting fires to the state, Minnesota recently began Currently, the insurance industry has no participation in the National Fire requirements to report fires by incident, Prevention and Control Administration's by cause, or by loss. Reporting trends Uniform Fire Reporting System. This on fires or settlements based on insur- system was designed as a fire planning ance records is not possible, under and management tool for local govern- present reporting mechanisms. ments. After a fire occurs, local fire departments fill out forms provided by Efforts underway by the insurance indus- the NFPCA and send them to the State try include the development of a Fire Marshal's Office. The information Property Loss Insurance Register National is forwarded to the NFPCA where it is to be operated by the Property Claims analyzed and the results are returned Services of the American Insurance to the state and locality. Association. The goal is to create a computerized register of property insur- In the first year of operation, 65% of ance claims which can enable insurers to t:le fire departments in the state spot potential signs of fraud such as participated. Reportedly, the multiple claims by an individual or complexity of the forms has kept some double insurance coverage. fire departments from taking part in t'lis system. In Minnesota, insurance companies have established a voluntary system for At this point a national system for notifying local fire departments that a reporting fire or arson does not exist. fire claim has been made. After an The national estimates of arson insurance company receives a claim, a incidents and dollar losses due to postcard is sent to the local fire arson, made by the National Fire department where the fire occurred. Protection Association, are based on The purpose of this system is to alert an annual mail survey of 2,000 fire the fire department if the insurance departments. After establishing per company has received a claim from a c3pita experience rates on fires and fire that the fire department didn't know d~llarlosses, projections are made about. Identifying the presence of for total United States population: double insurance coverage is another aim The NFPCA also uses data from supple- of this effort. Also, getting the name mentary sources as bench marks for of the insurer to the fire department these estimates. makes it possible for the fire department to make further investigations if dramatic increase in arson. In fact, needed. Although not all companies: are in Minneapolis and St. Paul, arson participating at this point, it is seen incidents have actually decreased as a first step in cooperation between since 1974. the insurance industry and the fire service.

Understanding the arson problem is further limited in that no estimates of motivations for the crime are A system must be devised to provide accurate and recorded or reported. The number of detailed information on the number and nature of arson incidents by each motive is r.ot arson incidents. available.

To improve the methods for reporting fire, the Undetected arson probably constitutes a sizable part following actions should be taken: of the arson problem. -The Legislature should require that Even if the reporting of fires and individuals report any fires to causes of fires is performed with local fire departments before precision, some arson fires won't he receiving insurance claims. detected at all. These may end up in the "undetermined" category, or they Requiring the individual to report may be attributed to other causes. the fire may act as a deterrent to Arson experts are certain that many decorative arson...arson where the fires caused by arson escape the occupant burns--the property to attention of investigators, but it is defraud the insurance company but not known how much arson slips by. avoids contact with the fire depart- Estimates range as high as 50% of ment. This requirement will assist fires attributed to undetermined ct.uses in solving the problem of not may, in fact, be caused by arson. knowing how many fires are occurring

Responsibility for developing the Conclusions mechanism to ensure that fires are reported to fire departments should be placed with the State Fire The current system for reporting arson has severely Marshal and the State Insurance limited the ability to identify the size and nature c~fthe Commissioner. problem. -The State Fire Marshal's office Although it will always be difficult should take the lead role in making to know exactly how much arson is sure that all .fire departments are occurring, the current system for fully complying with fire reporting reporting arson has minimized the requirements including the reporting ability to identify the appropriate of causes of fires. level and type of resources which should be directed at the problem. The objective is to identify the Arson is a serious problem and un1c:ss parameters of the arson problem as the reporting system is improved, a function of total fire incidents. assessing how serious the problem j.s The State Fire Marshal should will continue to be perplexing. initiate a review process for pro- viding information to the National Available data, however, does not Fire Prevention and Control substantiate the presence of a Administration on changes which may be needed in the fire incident report- incidents then be reported to the ing form. Examination of possible Bureau of Criminal Apprehension. incentives for fire departments which have complied with reporting standards Arson does not have to be reclassi- should also be considered. fied as a Part I crime under the FBI's system to get accurate state- wide data on the crime's prevalence. To better understand the insurance aspects of the fire Achieving a level of accuracy in the problem, we recommend the following steps be taken. statewide statistics is possible if the crime is brought to the attention -The Insurance Commissioner should of law enforcement officials and is require that insurance companies routinely reported to the BCA. annually report the number of fire incidents and the resulting -The Bureau of Criminal Apprehension dollar loss from fires by locali- should take responsibility for ty. developing a mechanism for recording suspected motives in fires caused by -The Insurance Commissioner should arson. encourage insurance industry participation in the new national Understanding the motives responsible Property Loss Insurance Register. for the commission of the crime is essential for appropriately directing resources at the crime of arson. To improve the reporting of the crime of arson, we recommend the following specific actions. -A statistical sampling method should be developed by the Bureau of Criminal -The Legislature should require that Apprehension to get an in depth under- any company providing property standing of the arson problem in the insurance in the State of Minnesota metropolitan area. participate in the newly establish- ed postcard system for notifying Priority for funding this effort local fire departments that a claim should be established by the Criminal has been received. Justice ~dvisoryCommittee of the metropolitan area. The Criminal Notification that a claim has been Justice Advisory Committee sets made can alert the fire department priorities for the spending of federal to the presence of multiple insur- Law Enforcement Assistance Administra- ance coverage and can give the fire tion Funds. This effort should be department the name of the insurance undertaken to produce a statistically company if further investigation accurate profile of the arson problem of possible arson for profit is including information on what is being necessary. burned and who is responsible for the burning: This could be part of a -The Legislature should specifically larger system for developing an require that fire departments report understanding of other crimes or arson incidents to the local law could be carried out with a focus enforcement agencies and that the toward arson, specifically. ARSON PREVENTION Increased attention to arson and the investigation and prosecution of arson are considered to be major Findings deterrents to the commission of the crime of arson.

Attempts to prevent arson have been limited. Nationally, efforts are underway to develop mechanisms for alerting Very little is known about how arson officials to the potential for arson. can be prevented. Locally, the only In Seattle, Washington, the Seattle prevention efforts which have been Fire Department has developed a data directed specifically at arson are base on arson incidents, by census special inspections which are performed tract and other variables, which if there are suspicions that an owner enables the department to anticipate is contemplating arson. Alerting an where arson incidents are likely to owner that inspectors are suspicious occur. Although this system is not may discourage the owner from used extensively, it is intended to attempting arson. Of course, it is be used to effectively deploy difficult to tell what impact this has resources based onepredictionsof had on arson incidents and, apparently, where arson will occur. this kind of inspection is unusual. In Boston, Massachusetts a citizens Although not commonly directed at group has proposed a system for arson prevention, security improvements monitoring deterioration of property can act as preventive measures.-.par- and real estate transactions to ticularly against arson by vandals or ident'ify likely targets for profit arson which is motivated by revenge. motivated arson. The group has At least one insurance company, Factory developed a model of circumstances Mutual Systems, has developed arson which should point to arson prone loss prevention strategies directed property. The impact of these systems toward industrial and commerical prop- for preventing arson is not yet known. erty. Strategies include identifica- tion of preventive measures which Other local prevention efforts which should be taken in target locations-- impact on arson are routine inspections properties which might be particularly for fire hazards. Because buildings vulnerable to arsonists. Vulnerability, with few fire hazards are harder to according to Factory Mutual, can occur set on fire and afford less opportunity through a variety of circumstances to conceal the fact that a fire was including employee layoffs, strikes, set, these inspections have a bearing or through a business falling into on arson prevention. disfavor with a protest group. Factory Mutual has also outlined general pre- In Minnesota, inspections specifically cautions which can be taken at any for fire hazards are the responsibil- commercial or industrial site to ity of the State Fire Marshal. In protect against arson. 1977 the State Fire Marshal's Office performed just over 4,000 inspections. Locally, the Minnesota Chapter of the These resulted in the issuance of International Association of Arson 642 written orders where minimum fire Investigators, with the help of the standards were not met. Both St. Paul insurance industry, has started an and Minneapolis have inspectors for arson reward program for tips leading fire hazards. Also, many municipal- to the arrest of arsonists. Similar ities have inspections for fire campaigns have been launched in other hazards performed by off-duty fire cities as preventive efforts. fighters . Conclusions

1. We recommend that a state law be Steps should be taken to maximize the communities' passed requiring the posting of fire arson prevention efforts. code violations or fire deficiencies in buildings open to the public whenever The potential deterrent effect of such deficiencies are detected by pxoperty inspections has not been inspectors. realized because the results of these inspections have not been rou- 2. The State Legislature should also tinely shared with the public or with mandate that information concerning vio- the insurance industry. We should lations and deficiencies be forwarded to not continue to limit the impact of the insurance company which insures the inspections. If the public and the property. company insuring the property are aware of the fire hazards additional To ensure that violations are fowarded pressure can be put on the owner of to the insurance company will require a the building to remove the hazards. provision in the law which mandates that The insurance company, particularly, a public inspector can ask and receive has a need to know if fire hazards the name of the insurance company from are present in a building. the insured. ARSON DETECTION burning or being extinguished may be the major inputs to assist the local fire chief in making a determinatipn. Findings As first on the scene, the fire fighter has a unique opportunity to gather this information, but current training Identifying the crime of anon begins with determining of fire fighters does not emphasize or the cause of the fire. focus on this important role.

State law mandates that the cause of Current training programs in the state, all fires be determined by the local including those provided through fire chief if the loss exceeded $100. vocational technical education, focus In addition, the state law provides on training of fire fighters for fire for on-call assistance from the State suppression. However, little uniformi- Fire Marshal's Office for determining ty exists in the training of fire the cause of a fire. Unless the cause fighters because there are no mandated of a fire is determined, positively, standards. Some departments have to be due to arson there will not adopted nationally recognized training be a criminal investigation of the standards but it is clear the number incident. of fire fighters actively involved in cause determination is small. Just how much arson goes undetected is unknown. The nature of fire is The Houston Fire Marshal's Office such that the evidence to indicate contends it has been successful adding arson may be burned in the fire or expertise and experience to arson destroyed when the fire is being investigations without increasing extinguished. Or, when cleaning the personnel through requiring all fire building, the evidence may be dis- department members to complete a twelve turbed. Also, it is to the arsonists' hour program in the fundamentals of advantage to have the cause of the arson detection. fire be undetermined or attributed to a cause other than arson. The arsonist may take extra effort to try Conclusions to limit the ability to determine the cause. We cannot continue to under-utilize and under-equip Much of the critical information that the fire fighter in determining the cause of the fire. would point to arson is only avail- able while the fire is burning. The Because determination of the cause color of the smoke may indicate the of the fire is essential for kinds of materials that are burning. creating a criminal case for arson, The way the fire travels may indicate it should involve the fire fighter. the presence of flammable liquids Also, advanced training for determin- which may have been used to increase ing the cause of fires should be . the speed of the fire. The presence available for personnel with ultimate of more than one fire also points to responsibility for cause determina- an arson cause and would only be tion. present while the fire is in its early stages but not after the fire had burned substantially. Recommendations In fact, for purposes of identifying 1. Determination of the cause of the the cause of g fire, the observations fire should continue to be the respon- that take place while the fire is sibility of the local fire chief with - on-call assistance from the State Fire training package for this purpose. Marshal. What should change is to The package must be low cost, easily l-.avethe fire fighter directly involved accessible for local fire departments in determining the cause of the fire. and must require a relatively short amount of time to complete. Funding 2. The Governor should direct the for this type of effort should be State Advisory Council on Fire Service given priority by the Criminal Justice E:ducation and Research to take the Advisory Committee. lead in getting cause determination training included in all the fire 4. The State Advisory Council on fighter training programs. Fire Service Education and Research should further examine possible methods 3. The State Advisory Council on for making advanced training available F'ire Service Education and Research for fire service personnel with final s,hould identify an organization responsibility for determining the which can develop and disseminate a cause of the fire. ~ - - - CRIMINAL INVESTIGATION OF access to police resources as needed. ARSON In other cities, the issue has been resolved by putting responsibility for investigating arson with the Findings police department and by giving the police department access to fire ser- vice resources. To date, no clear Criminal investigation of arson is carried out in a information exists on the relative variety of ways. merits of these different systems.

After the cause of a fire is determined to be arson or suspicious, the investi- Conclusions gation of the crime of arson can take many different forms. At times, the local fire chief will carry out the Local investigation of arson is limited by a lack of complete criminal investigation and will understanding of who is responsible for investigating get assistance from local law enforce- the crime. ment officials only if the case gets to the point where an arrest is needed. While it is essential the investi- Or, the State Fire Marshal might be gation of arson be flexible to allow called in by the local fire chief or by for the vast differences in the the local law enforcement agency to motives for the crime, it is of utmost assist in the criminal investigation of importance that the responsibility the crime. Sometimes only the local law for investigating arson be clear. An enforcement agency will investigate the urgent need exists for clarification crime or, at times, the assistance of of the responsibility for investigating the county sheriff will be added. The arson. The role of the State Fire Bureau of Criminal Apprehension may also Marshal, the local fire departments, be involved in criminal investigations-- the local law enforcement agencies and either as operators of the state's crime others is not clear in theory or in lab or to lend assistance to arson practice. Assessing how the lack of investigations. clarity of responsibility has affected the quality or thoroughness of arson In Minneapolis, the determination of investigation is difficult, but it is the cause of a fire and any subsequent clear the confusion must be eliminated. criminal investigations are, carried out by the Minneapolis Arson Squad, a division of the Minneapolis Fire Recommendations Department. The City of St. Paul is using a police-fire team approach. egisl la ti on must be enacted to establish Cause determination is performed by a consistent method for investigating fire personnel and criminal investi- the crime of arson. Without consistency, gation is performed by .the police with no assurances can be made that arson will the assistance of the fire personnel. be throughly investigated'by anyone.

Throughout the nation, local governments Specifically, we recommend: are struggling with the question of who should be responsible for the criminal 1. The Legislature should be explicit investigation of arson. In Seattle the in mandating that the responsibility issue has been resolved in a nationally for investigating the crime of arson acclaimed arson program. he Seattle be placed with the local law enforce- Fire Department has been given the ment agency unless the agency is granted responsibility for investigating the a waiver from the commissioner of crime of arson. The department has Public Safety. The fire service should continue to community has assigned staff specif- be responsible for determining the ically to arson investigation and this cause of fires and should assist in staff has criminal investigation investigations as needed by the law training. enforcement agency. But, responsi- bility for investigating the crime 2. The Legislature should further snould be with the law enforcement clarify that the local law enforcement agency. agency should utilize the assistance of the county sheriffs and the Bureau PROSECUTION OF ARSON circumstantial nature of arson cases, or the procedural requirements for any criminal case. Findings Hennepin County, has taken an active interest in the prosecution of It is not clear what impediments exist to the successful arson with the assignment of attorneys prosecution of arson. specifically to arson cases. It appears this is one possible method In the 1976 Minnesota Legislature for eliminating reticence toward arson Session, several changes were made in prosecution. the laws relating to arson which impact on the prosecution of the crime. Until then, the burning of one's own Conclusions property was not a criminal offense unless it was for the purpose of Prosecution of arson cases should not defrauding the insurer. In fact, the be limited by a lack of understanding most commonly used arson statutes in of what is needed for successful the nation are based on English Common prosecution. Similarly, prosecution Law which considered arson to be an should not be avoided because of short- act motivated by revenge rather than comings in the laws relating to the - profit. crime.

The 1976 changes in the state laws relating to arson has eliminated this Recommendations problem, specifically, but it remains unclear whether this has impacted on The Minnesota Crime Control Planning the willingness of prosecutors to Board, in conjunction with the prosecute arson cases. It is not clear Minnesota County Attorney's Council, whether impediments to arson prosecution should examine impediments to arson are real or imagined. If impediments prosecution and recommend methods to are real, it is not clear if they ensure that arson will be prosecuted relate to the laws on arson, the success,fully. pp INSURING PROPERTY losses, these funds are not co-mingled. For example, if a significant increase occurs in commercial fires, the cost of Findings homeowner policies would not increase. The exception is the FAIR Plan. This plan is subsidized by the other insurance An understanding of property insurance is essential pools. for understanding the creation of incentives for arson for profit. The biggest factor in how much the property insurance costs is the loss A number of kinds of insurance policies level experienced by the company on is involved in any discussion of arson. that type of property in recent years. Also included in arriving at the rate -Homeowner insurance, which covers an for property insurance may be the rating owner against several perils of the fire department by the Insurance including fire, is the most common Services Office, a national organization insurance. for owner-occupied resi- established by the property and liability I dences . insurance industry to provide certain services to insurers. Many companies -Renter policies cover the contents of use these ratings to determine what rental units against fire. different rates should be paid by persons living in different cities. -Automobile coverage can include protection against loss from fire. The community ratings are based on an assessment of the fire protection -Commercial or business properties service, the water service, and other have a type of policy for the factors relating to fire defense. structure and contents. Not included in determining the.ratc -Business interruption insurance is an insured pays is that individual's available to insure against loss of loss record. Property insurance is not business in the event of a fire. like autbmobile insurance where higher rates are paid by persons who have -Builders risk insurance is used to more accidents. Generally, if an cover properties while they are being individual experiences several losses, built. the insurance company will try to solve the problem through higher In addition to these types of insurance or will cancel the policy. If an available in the private marketplace, owner cannot get property insurance a high risk pool for properties is through the.private market, because of available in 10 Minnesota cities. This past claims or other reasons, the owner pool is commonly called the FAIR Plan-- may then be eligible for coverage in Fair Access to Insurance Requirements. the FAIR Plan. This was established in the late sixties, mostly as a means of allowing On homeowner policies, the structural properties in riot prone areas to get property is insured to replacement insurance. value. The term, "replacement value", causes a great deal of confusion, but The boundaries for each of these insur- it should be interpreted as the ance pools is the state. Minnesota amount it would cost to replace the does not share the cost of 'its losses square footage of the property with a with other states. Each of these comparable quality of construction. types of insurance has its own pool of The contents under homeowner policies money and, for purposes of paying are insured to actual cash value. - Virtually all insurance policies, insure of the structure, the property is over for actual cash value of the structure insured. To reduce the ability to anti the contents of the property. The over-insure property, several area meaning of actual cash value isn't companies have instituted requirements always agreed on, but it is generally that all properties be inspected co~lsideredto be the replacement value before policies are written. Some of the property minus the depreciation. interpretations of an existing state In no case should actual cash value statute conclude that pre-inspection exceed what it would cost to replace or of property is required by law, but repair the loss with comparable evidence indicates that not all ma-zerials and quality. companies have been inspecting all properties.. Furthermore, some The amount of the total value of an companies will upgrade the value of is very significant an existing policy at the owners' because of a Minnesota Statute which word. states that in the event of a total loss, the insurance company cannot try Mortgage companies generally require to pay a smaller amount than the insurance coverage to the amount of amount on the policy. Even if there the mortgage making it common for is evidence that the property wasn't insurance companies to insure property worth the amount on the policy, the to the level of the financial invest- insurance company is bound to that ment in the property. In some cases amount. The declaration of the the insurance company may simply prl~pertyas a total loss is sometimes accept the owners' word as to the chdlenged by insurance companies as financial investment in the property. a way to avoid paying the total value of the policy. Problems are created when the financial investment includes the For partial losses, on commercial land as well as a structure and if pr~perties,the insurance companies the structure burns, the land is an3 insureds negotiate the actual still of value. cash value of the loss. Under replacement value policies, if Most insurance policies include a partial loss to the property occurs clause which states that the mortgage and the owner wants to move elsewhere, will be paid off if the property then the owner will only receive the burns. Even if the owner is respon- actual cash value of the loss. To sible for the fire, payment of the receive replacement value, the owner mortgage will occur. If the value must replace that which was lost in the of the property has been falsely fire. escalated using contracts for deed, and the insurance company has accepted these values for insurance purposes, A rnajor way to make a profit from the burning of a .all the phony interest holders will property is to have it insured for more than it is worth be paid off when the property burns. in I he marketplace. On commercial property, with the For properties other than those covered structure and the contents insured to by homeowner policies, over insurance actual cash value, to profit from occurs if the agents and underwriters the burning of the property requires of an insurance company agreed to insure having the property insured for more the property to a higher level than the than it is worth. With homeowner actual cash value of the property. On policies, where the owner can get the homeowners policies, if the value of structure replaced if it burns, the policy exceeds the replacement cost incentives to burn the property might -- exist if the property is old or in On residential property, where home- need of repair. The availability of owner insurance is desired, a repre- replacement value insurance probably sentative of the insurance company doesn't create an incentive to burn should actually see the property and a property which is relatively new or prepare a brief report on the character- in good shape. Then, the property's istics of the property. Because of the market value is likely to equal or potential incentive for arson if the exceed its replacement value. As the replacement value far exceeds the market property gets older, it might cost value, checks for current market value far more to replace the property than of the property may be neceessary and it is worth in the marketplace. How might include referring to the assess- much arson is occurring as a result of ment of the property on the tax records replacement coverage is not known. or confirming value with the lender. Certainly some decorative arson is occurring to get rooms redone but, the On commercial and business property, degree to which this is occurring is more extensive inspections should be not known. required and should include an assess- ment of the value of the business as An owner may also become over- well as the property. The value of the insured through fluctuations in insurance policy should then be closely market value. However, this area has tied to the value of the property in been fortunate to have not had any a fair market situation. For all substantial areas of the community properties, photos should be required lose market value over the last prior to insuring. Enforcement of such several years. In fact, recent changes law should be the responsibility of the in property values have probably Insurance Commissioner. caused properties to become under- insured. 2. To guard against future inappro- priate levels of insurance, the. law should require that property be Conclusions reinspected when requests to increase coverage exceed that which would be attributable to inflation. We must not continue to operate a system of insuring property which allows an owner to make more money If property is being improved through burning property than selling it. renovations and repairs, full value of those repairs should not be included The economic incentives-to commit on the insurance policy until the arson for profit must be lessened by- repairs have increased the value of decreasing the ability to over- the property or its contents. insure property. 3. State law should require that the actual application for property insur- Recommendations ance became a part of the policy and that any fraudulent information contained in the application should be 1. To reduce the ability to over- considered cause for voiding the policy insure a property we recommend that or non-payment of the claim in the state law explicitly mandate a event of the loss. review of properties before they can be insured ...this may involve clarify- Particularly appropriate would be to ing an existing provision of state gather information relating to all law. ownership interests in the property, all other insurers of the property, and made in the requirements of the lender past fire claims. and the ability of insurers to insure to this level. 4. The State Insurance Commissioner should examine the following issues: -The use of replacement cost policies. If evidence exists that replacement -Provisions in state law which require cost coverage may be inadvertantly, full payment of the policy amount creating the incentives for owners in the event of a total loss. If to burn property to have it replaced tlere is evidence these provisions of with a new structure, changes in the law have caused insurance settlements use of these policies may be needed. to exceed the actual value of the property, changes in the law should -Possible use of a different standard bc=recommended. insurance policy. If there is any reason to adopt certain provisions -T:he practice of providing insurance of other standard policies to decrease coverage to the level of the mortgage. possible incentives for arson, such If insuring to the mortgage level is changes should be made. One pro- cmsing properties to be over-insured vision which should be examined is bscause the mortgage includes the the ability of an insurance company cost of the land, changes should be REIMBURSING LOSSES fires to identify suspicious and arson fires. Insurance companies will, at times, perform investigations. This Findings is often the case in large loss fires. Small loss fires will usually be reviewed by an insurance company The method for reimbursing an insured after a loss adjuster. The insurance company will may create incentives to burn property. want to find out if there is an opportunity to collect for the loss Within thirty days after proof of loss, from another insurance company. the insurance company must pay the loss Establishing grounds for collecting unless it intends to deny the claim. from another company requires that the A company cannot try to deny a claim cause of the fire be determined. For unless it is willing to defend the example, if a faulty furnace caused denial in a civil suit which might be the fire, it might be possible to brought by the insured. The only time collect from the company that insures an insurance company would try to deny the manufacturer of the furnace. a claim would be in a situation where Increasingly, insurance adjusters have arson by the owner was suspected or been alerted to the potential of fraud where certain provisions in the policy fires. had been violated. Serious question exists concerning the Because insurance companies need to appropriate relationship between have reputations for prompt payment public investigators of fire and arson of claim, few claims are ever denied. and insurance company investigators. Unfortunately, prompt payment of The understanding of what information questionable claims may act as an can be exchanged, relative to privacy incentive to a potential arsonist. laws, is clouded. Confusion about Burning a property may prove to be a the impact of these laws has limited faster way of liquidating the structure the sharing of information between the and contents than selling the property. public and the private sector.

Denial of claims in civil suits In the. State of Ohio, specific legisla- requires less proof than trying to tion was passed mandating that the establish a successful criminal insurance companies share certain . prosecution of an arsonist. Because information with the investigators denial of claims can effectively of fire and arson relative to an remove the profit motive, it is an insured's policy. The legislation important key in limiting arson for limits the insurance companies' profit. The insurance company can liability for sharing this information. defend a denial of a claim on It also attaches a penalty to the circumstantial evidence without the insurance company if information is need to prove beyond a reasonable nbt shared at the time a loss occurs. doubt. The Ohio legislation was passed to Another way to profit after a fire encourage and foster the exchange oE has occurred is to falsify that which information from the insurance was lost in the fire. If damage from companies to the public investigators the fire was extensive, this is but it does not allow for the move- especially possible. ment of information from the public fire investigators to the insurance Insurance companies largely depend companies. Insurance companies would on public, criminal investigations of like to have access to enough informa- tion.to know if there is a case I Conclusions for denying a claim payment.

Bezause of the way arson cuts The incentive to burn a property because across criminal and civil law, a it is a fast way to get money must be elh- federal law, passed in 1970, may inated. When there is suspicion of fraud, prwe to have a bearing on cases it is unwise to continue to encourage the relating to fraudulent arson insurance industry to settle claims quickly. involving organized parties. Criminal investigation of arson for profit The Racketeer Infiltrated and should not be limited by an inability to Corrupt Organizations Law (RICO) is receive information relating to the directed, mainly, at organized insured's policy history. The insurance crime infiltration of legitimate companies must be required to provide business but, the law also contains certain information to criminal investi- a .provision directed at any illegal gators of arson. operation run or managed as a racket. In addition to the benefits of being able to build criminal cases Recommendations with the assistance of the federal government, the law provides for civil penalties, allowing a victim 1. Legislation should be enacted allowing of racketeering to sue for three for criminal investigators to petition for tiines the damages incurred. Under a delay of claims payment in a civil pro- this provision, the City of Milwaukee ceeding to get injunctive relief until a has filed a suit against an arson criminal investigation is complete. t.c-mfor $750,000--three times the cost of extinguishing the fires. 2. Legislation should be passed requiring insurance companies to share information It appears that it may be possible with criminal investigators relating to an for others including insurance insured's policy history if a criminal co~npanies, to sue for damages investigation is'underway. The law should relating to the direct and indirect provide immunity from civil or criminal cost of the crime of arson. The prosecution for the furnishing of this law has a provision for freezing information. thz assets of the defendent until th,. suit has been resolved. Also, 3. The Attorney General's Office should ths law has a provision that the examine the desirability of legislation, defendant does not have to be which would allow criminal investigators cowicted of the criminal aspects of of arson to give factual infoxmation to the suit in order to be found respon- insurance companies relating to arson for sible for the civil side of the suit. profit cases. Judgment should be made Instead, only the requirement of concerning the balance between the a ?reponderance of evidence is interest of the community and the rights nezessary for the civil side of the of the individual in the exchange of this suit. information. DISCUSSION OF RECOMMENDATIONS

Is arson America's fastest growing crime? Proponents of making arson a Part I crime suggest that the re-classifica- According to the estimates of the tion will bring attention to the crime National Fire Protection Association, of arson. The findings in this report arson is the fastest growing crime of indicate national attention to the all major crimes in America. Locally, crime of arson is already considerable. the data doesn't indicate that it is. This report does conclude that it is In fact, in the cities of Minneapolis necessary to get an improved method and St. Paul, where a high level of for keeping statewide statistics on growth in arson might be expected, the arson. In doing this Minnesota's number of arson incidents has actually ability to direct resources at the crime decreased since 1974. of arson should be greatly enhanced.

Some of the increase in estimated arson After the issues of who should report incidents is probably due to the and investigate arson are resolved by increased awareness of the crime over individual states, it may be appropri- the last several years. Better identica- ate to set up a system for gathering tion and reporting of the crime certainly nationwide statistics on arson would impact on the statistics. In at incidents. least one Twin Cities' suburb, no arson incidents had ever been reported until the community hired an arson investiga- How do the proposals in this report compare with the tor. Then the community discovered that 1978 legislative changes concerning the operation of it does have an arson problem. It is the State Fire Marshal's Office and the Bureau of clear that this area is not experiencing Criminal Apprehension? a level of arson similar to that experienced in the South Bronx or The law passed at the end of the other major deteriorating urban areas 1978 session does relate to the where fires caused by arson have proposals in this report in four gutted entire blocks. different areas:

1. The new law mandates that the Should anon be classified as a Part I crime by the BCA and the State Fire Marshal's FBI? Office resolve the discrepancies in the reporting of arson. The rec- Considering the diverse definitions of ommendations in this report should arson and the diverse methods for prove to be a method for, accomplish- reporting and investigating arson, it ing this. isn't clear what would be accomplished by making arson a Part I crime. By ensuring that the local law enforce- Statistics on the crime of arson would ment agency is notified of all arson be kept on a national basis, but these incidents and that the law enforce- statistics would have little meaning if ment agency as well as the fire discrepancies in reporting arson departments report these incidents to aren't first resolved on a state level. the state, the statistics should - match up. There will be some problem if the BCA deems supervision of an if both the local police and the arson investigation necessary, it county sheriff report a single incident is likely this would be due to the to the Bureau of Criminal Apprehension, presence of a possible fraud fire hut this problem is common to reporting and it is appropriate the BCA of all crime. supervise such an investigation. It is not necessary to seek BCA 2. The new law also provides for an assistance for investigating small increased number of fire inspections arson fires which were not motivated to be performed by the State Fire by prof it. Ilarshal's Office or by localities. A <.rester number. of inspections will increase the impact of the recommended Shouldn't the insurance of property be tied to the zction that results of inspection be individual's experience rating with fire instead of shared with the insurance industry communities' capability to extinguish fires? and the general public. It is not likely the lack of 3. Contrary to the recommendations experience ratings for insurance contained in this report which call impact significantly on incentives for for the training of fire fighters and arson. Profit motivated arsonists fiire service personnel in the determin- who have had other fire claims probably ation of cause of the fire, provisions' wouldn't be too concerned about the in the new legislation call for making possibility of paying higher insurance investigation training courses avail- rates than owners who have had no able to members of the fire service. losses. The one area where this change might impact on arson would be in I'his report recommends that the crimi- the incentives for an owner to keep rial investigation of arson be carried property secured from possible vandal- out by local law enforcement agencies. ism, protest, or revenge motivated . , "he recommendations here suggest that arson. Currently, higher deductibles the role of the fire service be are used as a means of encouraging iinalagous to the role of the coroner... owners with repe'ated losses to keep the coroner determines what killed the property protected. person, but does not investigate r~urder. ~iriilarj-y, this report recommends the fire service determine Doesn't this report direct most recommendations to what caused the fire, but that it not the problem of arson for profit? investigate the crime of arson. No. All of the recommendations relating 4. The 1978 law calls for the State to keeping track of how much arson is ]?ire Marshal to notify the Bureau of occurring will impact on the under- Criminal Apprehension if there is evi- standing of the total arson problem ... dence indicating arson has occurred. not just arson for profit. Also, the The law states that the BCA may recommendations for preventing,,detec- :supervise and direct any subsequent ting, investigating, and prosecuting investigations. arson will affect arson caused by all motivations. The recommendations The recommendations of this report call for the insurance system are directed, for the BCA to be notified of all primarily, at profit motivated arson. incidents of arson through the crime Arson for profit, the insidious part of reporting system and involved in the arson problem, can only be investigations upon request from local attacked by reducing the incentives in law enforcement agencies. However, the insurance system. APPENDIX

TRENDS: FIRES DUE TO ARSON AND SUSPICIOUS CAUSES

MINNEAPOLIS: FIRES 1967-76 total fire$ //

fires with a loss ' -- \--. - - .-- 1 suspicious and incendiary -- -- C --C - -c-__*---d------_ 67 68 69 70 71 72 73 74 75 76 Year Source: Minneapolis Fire Department; Annual Report

ST. PAUL: FIRES 1967-76

total building fires -c / ------c.zz suspicious and incendiary __-______L__3----____-_ --__ 67 68 69 70 71 72 73 74 75 76 Year Source: St. Paul Fire Department; Annual Report 7 REPORTED ARSON OFFENSES AND ARRESTS: MINNESOTA 1972-1976*

TOTAL URBAN RURAL Offenses Arrests Offenses Arrests Offenses Arrests 1976 796 322 589 265 207 57

1975 670 257 479 201 191 56

1974 619 242 432 203 187 39

1973 527 248 386 216 141 32

1972 4 31 179 308 157 123 22

*These figures do not inclqde Source : Minneapolis and St. Paul. Bureau of Criminal Apprehension Uniform Crime Reports 1972-1976 GLOSSARY OF ORGANIZATIONS

Bureau of Criminal Apprehension (BCA) - International Association of Arson A division of the Minnesota Department Investigators, Minnesota Chapter -

of Public Safety responsible for gather- Established in 1973 by- area arson ing criminal justice information for investigators to educate its members the state, operation of the state's crime in arson investigation and prevention. laboratory, training of peace officers, The chapter has also attracted the and investigation of certain crimes interest of insurance companies in ' upon request from localities. the state in the steps that can be taken to limit arson for profit. Criminal Justice Advisory Committee of the Metropolitan Council - Sets priori- Minnesota Crime Control Planning ties for the expenditure of federal Board - Established by statute as Law Enforcement Assistance Administration the state agency responsible for funds in the metropolitan area. Also administering the federal Law acts as the planning body for metropoli- Enforcement Assistance Administration tan criminal justice matters. grants in aid program. Also, advises the State Legislature and acts Division of Fire Marshal - The State as a state-wide planning organization Fire Marshal's Office, a division of the on crime related matters. Minnesota Department of Public Safety, is charged with inspection and investi- National Fire Prevention and Control

gation of certain occupancy and use Administration--.--~ (NFPCA) - Established types of structures and with fire code in 1973 as an agency of the United enforcement. The division is responsible States Department of Commerce. The for investigation of certain fires and NFPCA is 'charged with national fire related deaths and injuries. In coordination of planning, research, addition, the division is charged with and training for fire protection and fire prevention through tabulation of prevention. fire statistics and provision of some education programs for localities. National Fire Protection Association (NFPA) - A private non-profit member Insurance Services Office (ISO) - A supported organization of representa- 1 .. national organization estqblished by the tives of fire related businesses, insurance industry to provide insurance public safety officials, insurance services to member and subscribing com- companies, and others with an interest panies. IS0 was formed in 1971 through in fire safety information. The the consolidation of several insurance NFPA serves as a clearinghouse for industry service organizations. IS0 fire information and establishes provides a wide range of services includ- advisory standards on many aspects ing actuarial, community ratings, rate of fire protection and prevention. making, and research services. Locally, The NFPA provides the only current IS0 provides the management of the high source of nationwide statistics on risk pool for properties (Fair Plan). arson. -State Advisory Council on Fire Education the fire service and on the develop- and Research - Formally established in ment and provision of coordinated 1969 to advise the governor, the programs of education and training for legislature and others on the needs of the fire service. COMMITI'EE ACTIVITY

The Citizens League Board of Directors, avid R. Moe in June, 1977, authorized creation of John D. Rukavina the study committee on arson. The Richard L. Simpson committee's charge from the League Irma Sletten Board was : Gordon A. Stephenson Ron Wilmot Arson is our fastest-growing crime. More than one-half of all fires are Staff assistance for the committee was intentionally set. In 1973, dollar provided by Judith Alnes. Paula losses nationally from arson were three Werner provided secretarial support. times as great as dollar losses from robbery. Arson appears to be growing The committee held a total of 23 particularly fast in suburban and rural meetings from November 2, 1977, to communit.ies with the fewest arson April 19, 1978, an average of one per investigators. About 36% of fire week. For the convenience of committee insurqnce premiums can be attributed to members and resource persons, meetings arson settlements. Nevertheless, there were held in both Minneapolis and appears to be little public understand- St. Paul. ing or awareness of the arson problem. The committee shall review (a) the As is always the case with Citizens extent of the problem in the Twin League reports, the work of this Cities metropolitan area; (b) the committee could not have been , adequacy of existing systems for possible without the important partici- investigating arson; (c) the impact of pation of a number of resource persons. recent state legislation on controlling We offer dur sincere thanks to the arson; and (d) the relationship between following persons who acted as resource arson and insurance, including incen- persons for our arson committee. The tives to commit arson to collect titles and positions shown are the ones insurance. they held at the time they spoke to our committee. A total of 27 League members originally signed-up for the committee, with 14 Thomas Bauer, assistant county attorney, actively participating in the work of Hennepin County Attorney ' s' Office. the committee. The active members of Jim Carlson, chief investigator, * the committee were: Minneapolis Arson Squad. John Carruth, fire claims supervisor, Sandra Berthene, chairman State Farm Fire and Casualty Clifford Carlson Company. Jim Carlson Lieutenant Jerry Dolan, St. Paul Police Richard T. Cox Department. Scotty Gillette Mike Goettsche, fire investigator, Robert E. Hannon Bloomington Fire Department, presi- William Hoogestraat dent, Minnesota Chapter, International Fred Landgraf Association of Arson Investigators. Lieutenant Brian Bolzer, Burnsville Tom Polacek, insurance adjuster, Public Safety Department. Supornick and Associates. -Bill Howard, special assistant attorney Bob Provost, president, Minnesota general, State Attorney General's Insurance Information Center. Office, Commerce Division. Terry Reinhardt, branch underwriting -P3ul Lindholm, assistant county manager, American Family Insurance attorney, Ramsey County Attorney's Company. Off ice. Walt Shimek, fire marshal, St. Paul -D3ve McCullough, coordinator, adult Fire Department. programs, State Department of Paul Tschida, superintendent, Bureau Vocational Technical Education. of Criminal Apprehension, Department -Don Minnick, claims manager, Liberty of Public Safety. Mutual Insurance Company. Wes Werner, state fire marshal, -Rick Myre, fire inspector, Edina Fire Division of Fire Marshal, Department Department. of Public Safety. -D,x~g Peterson, underwriting super- intendent, commercial property, In addition, the committee reviewed State Farm Fire and Casualty several documents and articles on the company. national arson problem and on aspects -Stan Pittman, general adjuster, St. of Minnesota's system for addressing Paul Companies. arson. THE CITIZENS LEAGUE . . . Formed in 1952, is an independent, nonpartisan, non-profit, educational corporation dedicated to improving 1ocal government and to providing 1eaders hip in solving the complex problems of our metropol itan area. Vol unteer research comni ttees of the CITIZENS LEAGUE devel op recommendations for solutions to public problems after months of intensive work.

Over the years, the League's research reports have been among the most helpful and re1iabl e sources of information for governmental and civic leaders, and others concerned with the problems of our area.

The League is supported by membership dues of individual members and membership contributions from businesses, foundations, and other organizations throughout the metropol itan area.

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Officers (1977-78) Directors (1977-78) Past Presidents

Pres ident Dale E. Beihoffer Charles H. Be1 lows Eleanor Col born Francis M. Boddy Francis M. Boddy W. Andrew Boss Charles H. Clay Vice Presidents A1 lan R. Boyce Wai te D. Durfee Roll in H. Crawford Lloyd L. Brandt John F. Finn Virginia Greenman Fred C. Cady Richard J. FitzGerald Roger Palmer John Cairns * Walter S. Harris, Jr. Wayne G. Popham Roll in H. Crawford Peter A. Heegaard Mary Lou Wi1 1 ianis Gerald R. Dillon James L. Hetland, Jr. Joseph L. Easley Verne C. Johnson Secretary Leo Fol ey Stuart W. Leck, Sr. Paul Magnuson Joan Forester Greer E. Lockhart David Graven John W. Mooty Treasurer Virginia Greenman Arthur Naftalin Dale E. Beihoffer Mary Ellen Grika Norman L. Newhall , Jr. Paul Hilstad Wayne H. Olson 5. Kristine Johnson *Leslie C. Park Paul Magnuson Malcolm G. Pfunder Staff Harry Neimeyer James R. Pratt Martha Norton Leonard F. Ramberg Execut ive Director Wayne H. Olson Char1 es T. Si.1verman Ted Kolderie Robert D. Owens Archi bal d Spencer Medora Perlman Frank Wal ters Associate Director Daniel K. Peterson *~ohnW. Windhorst Paul A. Gilje Roger Palmer ' Roll in Crawford Wayne G. Popham Membershi p Director Rosemary Rockenbach Calvin W. Clark John Rollwagen A. Kent Shamblin * Deceased Research Associates Marvin Trannnel Margo Stark Imogene Treichel Berry Richards Robert W. Wall ace William Blazar James L. Weaver Judy Alnes Mary Lou Wi11 i ams John Yngve WHAT-.- THE CITIZENS LEAGUE DOES

Study Committees Community Leadership Breakfasts

-- 6 major studies are in progress -- Minneapol is Community Leadership regularly. Breakfasts are held each Tuesday at -- Additional studies will begin soon. the Grain Exchange Cafeteria, -- Each committee works 23 hours per 7:30-8:30 a.m. from September to week, normally for 6-10 months. June. -- Annually over 250 resource persons -- St. Paul Community Leadership made presentations to an average of Breakfasts are held on alternate 25 members per session. Thursdays at the Pilot House Restau- -- A fulltime professional staff of 7 rant in the First National Bank Bldg., provides direct committee assistance. 7:30-8:30 a.m. -- An average in excess of 100 persons -- An average of 35 persons attend the follow committee hearings with sum- 55 breakfasts each year. mary minutes prepared by staff. -- The breakfast programs attract good -- Full reports (normal ly 40-75 pages) news coverage in the daily press, are distributed to 1,000-3,000 radio, and television. persons, in addition to 3,000 sum- maries provided through the CL NEWS. Ouestion-and-Answer Luncheons Citizens League NEWS -- Feature national or local authorities, who respond to questions from a panel -- 6 pages; published twice monthly, ex- on key public policy issues. cept once a month in June, July, August -- Each year several Q & A luncheons are and December; mailed to all members. held throughout the metropolitan area. -- Reports activities of the Citizens League, meetings, publications, studies Public Affairs Directory in progress, pending appointments. -- Analysis, data and general background -- A directory is prepared following even- information on pub1 ic affairs issues year general elections, and distributed in the Twin Citie~~metropolitanarea. to the membership.'

Public Affairs Information Assistance

-- Members of League study committees -- The League responds to many requests have been called on frequently to for information and provides speakers pursue the work further with govern- to community groups on topics. studied. mental or non-governmental agencies.

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