Anti-Car Theft Act of 1992 Hearings Committee Onthe
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ANTI-CAR THEFT ACT OF 1992 HEARINGS BEFORE THE SUBCOMMITTEEON CRIME AND CRIMINAL JUSTICE OF THE COMMITTEE ONTHE JUDICIARY HOUSE OF REPRESENTATIVES ONE HUNDRED SECOND CONGRESS FIRST AND SECOND SESSIONS ON H.R. 4542 ANTI-CAR THEFT ACT OF 1992 DECEMBER 9, 1991 AND MARCH 31, 1992 Serial No. 48 Printed for the use of the Committee on the Judiciary U.S. GOVERNMENT PRINTING OFFICE 57-808 CC WASHINGTON : 1992 For sale by theU.S. Government Printing Office Superintendent of Documents, Congressional Sales Office. Washington. DC 20402 ISBN 0-16-039199-7 COMMITTEE ON THE JUDICIARY JACK BROOKS, Texas, Chairman DON EDWARDS, California HAMILTON FISH, JR., New York JOHN CONYERS, JR., Michigan CARLOS J. MOORHEAD, California ROMANO L. MAZZOLI, Kentucky HENRY J. HYDE, Illinois WILLIAM J. HUGHES, New Jersey F. JAMES SENSENBRENNER, JR., MIKE SYNAR, Oklahoma Wisconsin PATRICIA SCHROEDER, Colorado BILL McCOLLUM, Florida DAN GLICKMAN, Kansas GEORGE W. GEKAS, Pennsylvania BARNEY FRANK, Massachusetts HOWARD COBLE, North Carolina CHARLES E. SCHUMER, New York LAMAR S. SMITH, Texas EDWARD F. FEIGHAN, Ohio CRAIG T. JAMES, Florida HOWARD L. BERMAN, California TOM CAMPBELL, California RICK BOUCHER, Virginia STEVEN SCHIFF, New Mexico HARLEY O. STAGGERS, JR., West Virginia JIM RAMSTAD, Minnesota JOHN BRYANT, Texas GEORGE ALLEN, Virginia MEL LEV1NE, California GEORGE E. SANGMEISTER, Illinois CRAIG A. WASHINGTON, Texas PETER HOAGLAND, Nebraska MICHAEL J. KOPETSKI, Oregon JACK REED, Rhode Island JONATHAN R YAROWSKY, General Counsel ROBERT H. BRINK, Deputy General Counsel ALAN F. COPPEY, JR., Minority Chief Counsel SUBCOMMITTEE ON CRIME AND CRIMINAL JUSTICE CHARLES E. SCHUMER, New York, Chairman WILLIAM J. HUGHES, New Jersey F. JAMES SENSENBRENNER, JR., EDWARD F. FEIGHAN, Ohio Wisconsin JOHN BRYANT, Texas STEVEN SCHIFF, New Mexico MEL LEVINE, California JIM RAMSTAD, Minnesota GEORGE E. SANGMEISTER, Illinois BILL McCOLLUM, Florida CRAIG A. WASHINGTON, Texas GEORGE W. GEKAS, Pennsylvania PETER HOAGLAND, Nebraska JAMES ROWE, Counsel DAVID YASSKY, Assistant Counsel ANDREW FOIS, Assistant Counsel LYLE NIRENBERG, Minority Counsel (II) CONTENTS HEARINGS DATES Page December 9, 1991 1 March 31, 1992 91 TEXT OF BILL H.R. 4542 92 OPENING STATEMENT Schumer, Hon. Charles E., a Representative in Congress from the State of New York, and chairman, Subcommittee on Crime and Criminal Justice 1 WITNESSES Adduci, Patricia B., commissioner, New York Department of Motor Vehicles, representing the American Association of Motor Vehicles Administrators 198 Brandau, Herman, associate general counsel, State Farm Insurance Cos., accompanied by Glenn R. Wheeler, staff consultant 217 Brown, Lee P., commissioner, New York City Police Department 3 Gillis, Jack, director of public affairs, Consumer Federation of America 231 Gribetz, Kenneth, Rockland County District Attorney 42 Hanna, Thomas H., president and chief executive officer, the Motor Vehicle Manufacturers Association of the United States, Inc. 187 Jeffares, Richard, chairman, New York-New Jersey Anti-Car Theft Committee 68 Keeney, John C, Deputy Assistant Attorney General, Criminal Division, Department of Justice, accompanied by Michael Kahoe, Section Chief, Violent Crimes and Major Offenses Section, Federal Bureau of Investigation; Arthur Norton, Senior Attorney, General Litigation-Legal Advice Section, Department of Justice; and Howard Apple, Chief, Interstate Theft Unit, Federal Bureau of Investigation 137 King, Barry, television producer, New York, NY 38 Montgomery, Robin L., Chief, Violent Crimes and Major Offenders Section, Criminal Investigative Division, Federal Bureau of Investigation, accom panied by Howard Apple, Unit Chief, Interstate Theft Unit, Donald Clark, Assistant Special Agent in Charge, New York Office 47 Price, Terry, Arthur Kill Correctional Facility 33 Robinson, Michael D., director, Michigan State Police, representing the International Association of Chiefs of Police 167 Schlossberg, Arnold, Jr., retired major general, and president and chief executive officer, National Insurance Crime Bureau 157 Simet, Peter J., detective, Milwaukee Police Department 181 Snyder, David F., senior counsel, the American Insurance Association 208 Thrash, Ron, commanding officer, auto crime division, New York City Police Department 27 LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING Adduci, Patricia B., commissioner, New York Department of Motor Vehicles, representing the American Association of Motor Vehicles Administrators: Prepared statement 201 (III) IV Page Brandau, Herman, associate general counsel, State Farm Insurance Cos.: Prepared statement 219 Brown, Lee P., commissioner, New York City Police Department: Prepared statement 7 Gillis, Jack, director of public affairs, Consumer Federation of America: Prepared statement 233 Gribetz, Kenneth, Rock land County District Attorney: Prepared statement 45 Hanna, Thomas H., president and chief executive officer, the Motor Vehicle Manufacturers Association of the United States, Inc.: Prepared statement ... 189 Jeffares, Richard, chairman, New York-New Jersey Anti-Car Theft Committee: Prepared statement 71 Keeney, John C, Deputy Assistant Attorney General, Criminal Division, Department of Justice: Prepared statement 141 Montgomery, Robin L., Chief, Violent Crimes and Major Offenders Section, Criminal Investigative Division, Federal Bureau of Investigation: Prepared statement 50 Robinson, Michael D., director, Michigan State Police, representing the International Association of Chiefs of Police: Prepared statement 169 Schlossberg, Arnold, Jr., retired major general, and president and chief executive officer, National Insurance Crime Bureau: Prepared statement 159 Simet, Peter J., detective, Milwaukee Police Department: Prepared statement 183 Snyder, David F., senior counsel, the American Insurance Association: Prepared statement 210 APPENDIX Additional material submitted for the hearings 249 ANTI-CAR THEFT ACT OF 1992 MONDAY, DECEMBER 9, 1991 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON CRIME AND CRIMINAL JUSTICE, COMMITTEE ON THE JUDICIARY, New York, NY. The subcommittee met, pursuant to notice, at 10:45 a.m., in the Police Auditorium, 1 Police Plaza, New York, NY, Hon. Charles E. Schumer (chairman of the subcommittee) presiding. Also present: David Yassky, assistant counsel; Teresa Faunce, clerk; and Lyle Nirenberg, minority counsel. OPENING STATEMENT OF CHAIRMAN SCHUMER Mr. SCHUMER. The hearing will come to order, hearing of the Crime and Criminal Justice Subcommittee, oversight field hearing on the auto theft crisis. The Chair has received a request to cover this hearing in whole or in part by television broadcast, radio broadcast, still photog raphy or by other similar methods. In accordance with committee rule 5 permission will be granted unless there is objection. Without objection. Good morning. What epidemic is costing Americans billions of dollars in increased insurance premiums and lost time from work, and claims a new victim every 20 seconds? It's not a communicable disease, it isn't cancer but it's spreading like one. It's auto klep tomania and it's sweeping the Nation. What the police used to call grand theft auto has increased 34 percent since 1986 and now touches incredibly 1 in ever 50 Amer ican households. Thoreau once said upon the invention of a car, that man has built himself a coach and lost the use of legs. Now man is losing his coach as well to auto thieves. A myth that we'll attempt to shatter here today is that auto theft is a so-called victimless crime. Auto thieves are robbing all of us blind whether you've ever had a car stolen or not. Stolen cars ac count for more than 50 percent of the value lost to property crime, near $9 billion. For people whose cars have been stolen their insurance coverage rarely reimbursed them for the value of their car. Their premiums usually increase after the theft and no one pays them back for the headache of renting a new car, buying a new car, and all the lost work and leisure time. The rest of us are victimized every time we pay for automobile insurance. Here in New York, for example, on leading carrier esti mates that 88 percent of its comprehensive auto insurance pre (1) 2 mium is attributable to theft claims. And who knows how much money is spent every year on sophisticated alarm systems, J-bars, ignition locks and other antitheft gadgets. Auto theft is a serious business. The teenage kids who rip off a car for an afternoon joyride have graduated and become technothieves who run chop-shops. They skillfully strip a car to its bare bones and sell the parts for twice the original price of the whole car. Another sector of the auto theft industry forges new, clean titles for the cars, and sells them whole. A third sector is reducing our trade imbalance, shipping stolen cars overseas or driving them across the borders to sell to foreigners. If car theft were a legitimate enterprise, as Leslie said down- stairs, it would rank in the top 50 on the Fortune 500 list. In fact, if New York could tax the billions of dollars made on auto theft, Governor Cuomo would be in New Hampshire right nowcampaign ing for President because his budget headaches would disappear. The cops are losing the battle to auto robbers. Fewer than one theft in 50 leads to a conviction. The courts aren't helping.Seventy five percent of sentences handed down to car thieves are probation or jail time of less than 1 year. Take New York as an example. As of October only 194 inmates in the entire New York State prison system are doing time for auto