Final report of the sunset review of the Arizona Automobile Theft Authority

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Rene Guillen
Legislative Research Analyst
(602) 926-3072
Arizona House of Representatives
House Majority Research
MEMORANDUM
1700 W. Washington
Phoenix, AZ 85007-2848
FAX (602) 417-3096
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To: JOINT LEGISLATIVE AUDIT COMMITTEE
cc: Senator Pamela Gorman, Co-Chair
Senator Thayer Verschoor, Co-Chair
Re: Sunset Hearing of the Arizona Automobile Theft Authority
Date: January 25, 2007
Attached is the final report ofthe sunset review ofthe Arizona Automobile Theft Authority, which was
conducted by the Senate Transportation and House of Representatives Transportation Committee of
Reference.
This report has been distributed to the following individuals and agencies:
Governor ofthe State ofArizona
The Honorable Janet Napolitano
President ofthe Senate
Senator Tim Bee
Senate Members
Senator Thayer Verschoor, Co-Chair
Senator Carolyn Allen
Senator Chuck Gray
Senator Rebecca Rios
Senator Victor Soltero
Speaker ofthe House of Representatives
Representative Jim Weiers
House Members
Senator Pamela Gorman, Co-Chair
Senator Meg Burton Cahill
Representative Russ Jones
Representative John Nelson
Representative Tom Prezelski
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Arizona Automobile Theft Authority
Department of Library, Archives & Public Records
Auditor General
Senate Republican Staff
Senate Research Staff
Senate Democratic Staff
Senate Resource Center
House Majority Staff
House Research Staff
House Democratic Staff
Chief Clerk
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Senate Transportation and House of Representatives Transportation Committee of
Reference Report
Arizona Automobile Theft Authority
Date: January 25, 2007
To: Joint Legislative Audit Committee
Senator Pamela Gorman
Senator Thayer Verschoor
Background
Pursuant to Arizona Revised Statutes (AR.S.) Section 41-2953, the Joint Legislative
Audit Committee (JLAC) assigned the sunset review of the Arizona Automobile Theft
Authority (AATA) to the Senate Transportation and House of Representatives
Transportation Committee of Reference.
The Arizona Automobile Theft Authority was originally created in 1992. Laws 1997,
Chapter 290 established the AATA in its present form under AR.S. § 41-3451. The
AATA is supported by the insurance industry with a one-dollar annual assessment fee on
automobiles insured in the State of Arizona and does not currently receive any general
fund money. As established by the Arizona Legislature, the AATA Board of Directors
consists of the following: two police chiefs or their designees, two sheriffs or their
designees, two county attorneys or their designees, two employees of insurers, two
members of the general public, the assistant director for the motor vehicle division in the
department of transportation or the assistant director's designee, and the director of the
department of public safety or the director's designee. There are also six members of the
AATA to carry out the policies and strategic plan of the AATA Board. The AATA's
mission is to deter vehicle theft through a statewide cooperative effort by supporting
relevant programs including law enforcement programs, a vertical prosecution program,
and public awareness/community education programs.
Committee ofReference Sunset Review Procedures
The committee of Reference held one public meeting on December 12,2006 to review
the AATA's responses to the sunset factors as required by AR.S. Section 41-2954,
subsections D and F, and to hear public testimony.
Committee ofReference Recommendations
The Committee of Reference recommends continuing the Arizona Automobile Theft
Authority for five years.
Attachments:
1. Letter from Sen. Pamela Gorman to AATA requesting information.
2. Sunset factors pursuant to AR.S. Section 41-2954, subsections D and F.
3. Meeting Notice.
4. Minutes of the Committee of Reference Meeting.
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J\ri;;:ouzt ~U$t of ~tprt$tutzttiut$
J41l:euix, J\rhllua 85007
July 25, 2006
Mr. Enrique Cantu
Executive Director
Arizona Automobile Theft Authority
1400 W. Washington Street, Suite 270
Phoenix, AZ 85007
Dear Director Cantu:
The sunset review process prescribed in Title 41, Chapter 27, Arizona Revised Statutes, provides
a system for the Legislature to evaluate the need to continue the existence of state agencies.
During the sunset review process, an agency is reviewed by a legislative committee of reference.
On completion ofthe sunset review, the committee of reference recommends to continue, revise,
consolidate or terminate the agency.
The Joint Legislative Audit Committee has assigned the sunset review of the Arizona
Automobile Theft Authority to the committee of reference comprised of members of the House
of Representatives' and the Senate's Committee on Transportation.
Pursuant to A.R.S. § 41-2954, the committee of reference is required to consider certain factors
in deciding whether to recommend continuance, modification or termination of an agency. Please
provide your response to those factors as provided below:
1. The objective and purpose in establishing the agency.
2. The effectiveness with which the agency has met its objective and purpose and the
efficiency with which it has operateq.
3. The extent to which the agency has operated within the public interest.
4. The extent to which rules adopted by the agency are consistent with the legislative
mandate.
5. The extent to which the agency has encouraged input from the public before adopting its
rules and the extent to which it has informed the public as to its actions and their
expected impact on the public.
6. The extent to which the agency has been able to investigate and resolve complaints that
are within its jurisdiction.
7. The extent to which the Attorney General or any other applicable agency of state
government has the authority to prosecute actions under the enabling legislation.
8. The extent to which the agency has addressed deficiencies in its enabling statues that
prevent it from fulfilling its statutory mandate.
9. The extent to which changes are necessary in the laws of the agency to adequately
comply with these factors.
10. The extent to which the termination of the agency would significantly harm the public
health, safety or welfare.
11. The extent to which the level of regulation exercised by the agency is appropriate and
whether less or more stringent levels of regulation would be appropriate.
12. The extent to which the agency has used private contractors in the performance of its
duties and how effective use of private contractors could be accomplished.
Additionally please provide written responses to the following:
1. An identification of the problem or the needs that the agency is intended to address.
2. A statement, to the extent practicable, in quantitative and qualitative terms, of the
objectives of such agency and its anticipated accomplishments.
3. An identification of any other agencies having similar, conflicting or duplicate objectives,
and an explanation of the manner in which the agency avoids duplication or conflict with
other such agencies.
4. An assessment of the consequences of eliminating the agency or of consolidating it with
another agency.
In addition to responding to the factors in A.R.S. § 41-2954, please provide the committee of
reference with a copy of your most recent annual report. Your response should be received by
October 16, 2006 so we may proceed with the sunset review and schedule the required public
hearing. Please submit the requested information to:
John Halikowski
Arizona House of Representatives
1700 West Washington
Phoenix, AZ 85007
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Thank you for your time and cooperation. If you have any questions, please feel free to contact
me at 602-926-4002 or John Halikowski, the Legislative Research Analyst for the House of
Representatives' Committee on Transportation, at 602-926-3147.
Sincerely,
Pamela Gorman
State Representative
Chair, Committee on Transportation Committee of Reference
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ARIZONA AUTOMOBILE
THEFT AUTHORITY
Sunset Factors
October 1, 2006
1. The objective and purpose in establishing the agency.
The Legislature established the Arizona Automobile Theft Authority (AATA) in its present form in 1997 which
consists of a twelve member board of directors. The purpose of the Authority is to combat and reverse the
incidence of vehicle theft throughout the State of Arizona. A.R.S. §41.3451, sections C3-7 identify the tasks of
the Authority:
Determine the scope of the problem of automobile theft, including areas of the state where the problem is
greatest.
Analyze the various methods of combating the problem of motor vehicle theft.
Develop and implement a plan of operation
Develop and implement a financial plan.
Solicit and accept gifts and grants.
Section G of A.R.S. §41.3451 defines how the Authority is to carry out its mission: "The automobile theft authority
shall allocate monies in the fund to public agencies for the purpose of establishing, maintaining and supporting
programs that are designed to prevent motor vehicle theft, including:
Financial support to law enforcement and prosecution agencies for programs that are designed to increase
the effectiveness of motor vehicle theft prosecution.
Financial support for programs that are designed to educate and assist the public in the prevention of motor
vehicle theft. (See Tab 1)
AATA Mission Statement
To deter vehicle theft through a statewide cooperative effort by supporting law enforcement activities,
vertical prosecution and public awareness &community education programs.
The objective and purpose of the AATA is to develop and fund programs designed to assist criminal justice
agencies and educate citizens on how to deter and reduce vehicle theft in the State of Arizona. The AATA
accomplishes its mission primarily by providing grants to criminal justice agencies and carrying out its own public
awareness and community education efforts. Grants are awarded in accordance with AATA grant policies and in
such a manner as to obtain the maximum impact on deterrence, investigation and prosecution of vehicle theft.
The grant approval process is completed in the spring, for the following fiscal year. This provides the AATA Board
of Directors; which is comprised of (2) police chiefs, (2) county attorneys, (2) sheriffs, (2) representatives from
the insurance industry, (2) private citizens as well as the Directors of MVD and DPS; with the most current
information available on the scope, localities and methods or current technology to allocate resources to combat
the vehicle theft problem in Arizona with the greatest flexibility, effectiveness and efficiency.
2. The effectiveness with which the agency has met its objectives and purpose and the
efficiency with which it has operated.
In recent years the Uniform Crime Report (UCR) pUblished by the Federal Bureau of Investigation has shown
that vehicle theft in Arizona has been declining.
Total Vehicle Thefts: 1995-2005
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60,000
50,000
40,000
30,000
20,000
10,000
a
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
However, the UCR does not take the unique factors of Arizona into full account and the impact of the Authority's
effectiveness in fulfilling its objectives and purpose are not fully reflected by relying on this report alone. Further,
the theft rate is based on population estimates which are below actual population figures. The unique factors
which impact the vehicle theft problem in Arizona include the following:
Rapid population growth in Arizona
Proximity to the Mexican International Border and sea ports in California
Economy (vehicle theft rises during economic downturns)
Illegal immigration transportation issues
Unsecured border with Mexico
Dry climate
The following are the three initiatives funded by the Authority to combat and reduce vehicle theft in Arizona.
From 2002 to 2004, the vehicle theft rate declined by 6.8% due in part to the initiatives and programs
sponsored by the Authority.
LAW ENFORCEMENT ACTIVITIES
Although the crime of vehicle theft originates primarily in Maricopa and Pima Counties, the suspect(s) often
come from other jurisdictions and proceeds of the crime may ultimately go to yet another jurisdiction. Prior to the
creation of the AATA and the establishment of the Arizona Vehicle Theft Task Force, there were limited law
enforcement resources dedicated to vehicle theft and related criminal activity. There were only two "proactive"
vehicle theft enforcement squads in the State of Arizona, one employed by the Phoenix Police Department and
the other by the Arizona Department of Public Safety.
Only the larger metropolitan police departments and sheriff's offices have auto theft units. In most of the rural
counties, law enforcement agencies are fortunate if they have a property crimes detective, who is also
responsible for handling vehicle theft cases. The few agencies that have auto theft units are mostly responsive to
calls for service and are generally referred to as "case-carrying" units. There are no other vehicle theft related
task forces operating in the State of Arizona. (See Tab 2)
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• Theft of personal property, Le., vehicle theft, affects the quality of life for all citizens in the State of Arizona. In
many cases, victims of vehicle theft are economically disadvantaged and cannot afford the loss of their vehicle,
which may be a single means of transportation thereby causing serious hardship. The loss of one's vehicle in our
vehicle dependent society can mean the loss of income for a family who depends on their vehicle for
transportation to maintain a livelihood.
The following grants and charts document the effectiveness of the Authority's law enforcement programs.
Arizona Vehicle Theft Task Force
Inception to date Performance Results
Arizona Vehicle
Theft Task Force
Return On Funding
Performance Measures 1999 through 2006
Altered/Switched VIN's . 2,617
Stolen Vehicles Recovered ($ Value) $201,734,773
559
166
356
Adults . 2,09B
Juveniles ...•........... " ........•.
Insurance Fraud Cases ...•.........•..•..
Business Inspections .........•......•...
Total Felony Arrests 2,264
Stolen Vehicles Recovered (Number) . . . . . . . . 20,296
"Chop Shops' Investigated 301
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$~~
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For every dollar that the AATA has funded,
the Arizona Vehide Theft Task Force has
receovered more than $12.37 in stolen
property for the citizens ofArizona.
"'Ba.wJ d1l Kelly BIlle Book \lalru:.f.
VERTICAL PROSECUTION
Border Interdiction Programs ........•.....
PACE Programs .................•......
Training Provided .
Assist to Other Agencies
33
192
2B9
7,74B
Prior to the AATA's support of vertical prosecution through grants to County Attorney Offices, dedicated vehicle
theft focused prosecutorial efforts did not exist anywhere in the State of Arizona. Vehicle theft cases, including
those from the Task Force were submitted to the appropriate prosecutorial agency and were processed in
accordance to established policies, which did not include ''vertical prosecution." Vertical prosecution refers to the
concept of a single prosecutor handling a case from submission, (often during the investigation phase) through
trial. Although this is not a unique concept, it was rarely employed in vehicle theft related cases in Arizona. The
Authority has determined that this was a critical factor in the overall strategy to combat vehicle theft and related
criminal activity.
Effective prosecution of vehicle theft is a key deterrent of this serious crime that affects the quality of life for many
of our citizens. The AATA regards its working relationship with county attorneys as one of the most important
steps in dealing with the criminal element responsible for the expensive victimization of the public. Accordingly,
the Authority will look to expand its vertical prosecution program not only to additional counties to handle
expected increase in Task Force cases, but providing counties with resources to aggressively prosecute cases
from jurisdictions other than the Task Force.
Vertical Prosecution Results
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Inception
Performance Measure 2001 2002 2003 2004 2005 2006 To Date
Number of Participating Counties 3 3 6 6 6 6
Number of theft cases filed 165 304 588 477 644 816 2,994
Number of convictions 47 221 319 422 521 654 2,184
Convictions to cases closed (%) 98% 98% 94% 96% 91% 92% 95%
Amount of Restitution Ordered
(thousands) $202.60 $747.20 $818.20 $1,631.30 $1,318.00 $1,803.00 $6,520.30
Number of Training Sessions
Conducted 9 10 19 20 10 39 107
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PUBLIC AWARENESS
Because public education promotes prevention, public awareness programs are crucial to the success of any
crime prevention initiative. The AATA recognizes that an effective public awareness campaign is an important
component of its overall effort to reduce the vehicle theft rate in Arizona.
The goal of public awareness is to educate Arizona citizens to recognize the significance of automobile theft and
learn ways to protect their cars from theft. Very simply, vehicle theft is largely a preventable crime. Operators
must exercise greater care in protecting their property!
The Authority has determined it is cost effective to offer statewide pubiic awareness grants to criminal justice
agencies to champion vehicle theft prevention programs within each jurisdiction. The Authority will continue the
Public Awareness Grant Program, which began in 2001 to assist and encourage local law enforcement agencies
to develop and expand public awareness programs dealing with vehicle theft prevention. The following examples
document the efforts the Authority has made in educatinl;J the general public on the vehicle theft issue.
I. The Authority has developed, implemented and funded other programs which are proving to be effective in
combating vehicle theft and promoting public awareness and community education. These programs include:
The Watch Your Car Program and partnership with the Motor Vehicle Division
The Bait Vehicle Program (See Tab 3)
Mobile License Plate Readers
Sponsoring free VIN Etching and Watch Your Car Program events
Conducting Outreach to Community, Civic and Business Groups and providing free theft prevention
literature and promotional items to statewide partners (See Tab 4)
II. The Authority has shown its effectiveness in meeting its objectives and purpose in other ways:
Staff research has shown the Authority as being credited for reducing the vehicle theft rate in Arizona,
The Authority has been credited as responsible for increasing public awareness on vehicle theft
prevention, (See Tab 5)
Encourages networking opportunities and information sharing on vehicle theft issues,
Encourages development of public/private partnerships,
Encourages and funds the use of new technology in investigation of vehicle theft, i.e. such as bait cars
and mobile license plate readers,
Support of signed affidavits recommended as part of theft reports to police agencies,
Highly respected in the State of Arizona/national reputation with several states using the agency as a
model for their own theft prevention programs,
Through its proactive vehicle theft prevention programs, the Authority has helped build a relationship
between law enforcement and the general public.
III. The Authority has carried out its mission in an effective and efficient manner by seeking ways to reduce its
administrative and program costs through innovative combinations of technology, staff creativity and expertise
to perform as many functions as possible in-house. These efficiencies and cost savings include:
Writing, designing, and printing the Authority's Annual Report in-house (See Tab 6)
Developing and implementing the Watch Your Car (WYC) Scanner/Database for processing enrollments
in the WYC Program
Realizing efficiency savings by designing, maintaining and updating its website in-house
Increasing efficiency and customer service by standardizing its grant application processing and quarterly
reporting (See Tab 7)
Developing procedures to reduce cost customer service and increase customer satisfaction with citizens
enrolled in the Watch Car Program.
Capability of performing maintenance of computer hardware, databases and networks by agency
personnel
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• Utilizing bulk mail rates to reduce cost of large mailings
Developing, writing, producing and distributing PSAs utilizing staff talents and expertise
Eliminating the need to outsource public relation projects such as press releases or media events by
utilizing staff expertise. (See Tab 8)
Increasing revenue and reducing collection costs by maintaining an efficient revenue data base and
through collaboration with the Arizona Department of Insurance. (See Tab 9)
Eliminating outsourcing of all accounting and collection activities
Increasing efficiency savings through the effective use of agency specific or state purchasing contracts
for the purchase of certain promotional items and/or services.
3. The extent to which the agency has operated within the public interest.
The Authority acts in the public interest by sponsoring effective programs to support criminal justice efforts in the
investigation and prosecution of vehicle theft crimes. It has also acted in the public interest by sponsoring
programs to educate the public on ways to prevent vehicle theft.
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I. The Authority developed and funds several successful grants programs which are closely monitored and
have proven effective in reducing vehicle theft in Arizona:
The Law Enforcement Grant Program provides funds for statewide projects by law enforcement
agencies to investigate and reduce vehicle theft.
The Public Awareness Grant Program provides funds for community education through grants to
statewide law enforcement agencies.
The Vertical Prosecution Grant Program provides funds used for six County Attorney Offices to hire
prosecutors to focus exclusively on vehicle theft cases.
The Arizona Vehicle Theft Task Force is funded by the Authority, managed by DPS, with participation by
multiple law enforcement agencies has provided Arizona with a law enforcement task force to combat
vehicle theft with a statewide focus.
The Professional Training Grant Program provides funds for criminal justice personnel in Arizona to
attend training seminars relating to vehicle theft investigation.
Emergency Grant Program provides funds to criminal justice agencies for urgent needs to investigate or
prosecute vehicle theft case when other funding is not otherwise available.
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II. The Authority has further acted in the public interest by developing and implementing a Grant Policy to
effectively and fairly award funding to criminal justice agencies while also monitoring the results. Grant
applications are solicited from criminal justice agencies throughout the State of Arizona. The applications are
reviewed and grants awarded according to the AATA Grant Policy. This policy requires that:
Grant applications be reviewed by staff with recommendations submitted to the appropriate AATA Board
Subcommittee,
AATA Board Subcommittees review and evaluate grant applications with staff support, and report
recommendations to the full Board of Directors,
AATA Board members review Subcommittee recommendations and approve the final grant awards based
on the current scope of the vehicle theft problem and available resources,
• Staff prepares grant award letters and grant contracts, which include requirements for quarterly
performance measures and financial reports.
III. The Authority has acted in the public interest by taking steps to implement and to improve the tracking and
monitoring of its grants. These steps include a Grant Database which is currently being completed and will
allow the Authority to improve its tracking, monitoring and reporting of grant program and financial data from
its grants. In addition, the Authority has instituted a program of site visits and compliance audits of its grantee
agencies.
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IV. The Authority acts in the public interest by initiating public awareness and community education programs to
inform the public on how to protect their vehicles from theft. These efforts have included:
Co-sponsoring Public Awareness campaigns and free VIN Etching events in targeted communities, at
shopping malls, safety fairs, senior centers, home owners associations and neighborhood block watch
meetings,
Promoting vehicle theft prevention awareness through targeted advertising, (See Tab 10)
Promoting and maintaining partnerships with government, private and public sector entities,
Developing and promoting Public Service Announcements (PSA) throughout the State including an AATA
grant which funded a 30 second TV and Radio Public Service Announcement (PSA) developed by the
Tempe Police Department featuring the voice of AI McCoy, (See Tab 11)
Developing and promoting a uniform message throughout the State on vehicle theft prevention,
Developing a vehicle theft prevention curriculum for middle and high school students, (See Tab 12)
Developing media exposure of the AATA's mission and its public awareness vehicle theft prevention
message through the effective use of media releases,
Continued partnership with Motor Vehicle Division Service Centers, AAA Atti':ona Travel Offices,
apartment community and rental offices and other community organizations for distribution of Watch Your
Car Program enrollment forms and other theft prevention materials,
Initiated a corporate outreach program to local businesses in order to educate their employees about
vehicle theft prevention. The AATA has responded to numerous requests to conduct employee
presentations and host on-site safety fairs and/or VIN etching events from various companies including
Arizona Public Service, Bedford Group, Blue Cross and Blue Shield, Farmers Insurance, Farnam
Companies, Motorola, State Farm Insurance, Target, University of Phoenix and Honeywell, (See Tab 13)
The AATA has participated in greater outreach to the Hispanic community with the creation and printing
of Spanish Watch Your Car brochures and literature, and increased media relations with local Spanish
language newspapers, radio and television.
v. The Authority has acted in the public interest by sponsoring the Watch Your Car Program. The Watch Your Car
Program is a free, voluntary enrollment program designed to deter vehicle theft, assist in the recovery of stolen
vehicles, and apprehend auto thieves. After enrolling and signing an application form, participants in the program
affix Watch Your Car decals to their vehicle, which authorizes law enforcement officials to stop the vehicle
between the program hours of 1:00 AM and 5:00 AM vl'hen most vehicle thefts occur, or within one mile of the
international border. Enrollment forms are obtained by contacting the AATA by phone or accessing the information
The WYC Program - Active Enrollees
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90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
o
FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006
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The WYC Program - Total Enrollees
140,000
120,000
100,000
80,000
60,000
40,000
20,000
° FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006
at events and/or via the Internet at the Agency's web site at www.azwatchyourcar.com. The Watch Your Car
Program is free and available to all citizens with cars registered in the State of Arizona. By September 2006 there
were 90,000 vehicles enrolled statewide. This program has proven to be effective not only in preventing vehicle
theft but in apprehending vehicle theft criminals. (See Tab 14)
VI. The Authority has acted in the public interest by responding immediately to requests for assistance from
vehicle owners enrolled in the Watch Your Car Program. In addition it has been successful in lowering the
costs of maintaining the Watch Your Car Program with the utilization of technology thus realizing significant
program savings.
VII. The Authority has acted in the public interest by keeping the general public, news media and criminal justice
agencies informed of current events through the AATA's web site at www.azwatchyourcar.com. The AATA's
web site continues to be updated and enhanced for greater public accessibility and averages approximately
100 hits per day. The site provides information on the AATA, current auto theft statistics, theft prevention tips,
current community events, posting of all grant program application procedures and requirements, as well as
information for the insurance industry on the semi-annual insurance assessment and numerous relevant
links. For the public's convenience, an on-line Watch Your Car application form is available for easy
enrollment in the program. The AATA's website is continually updated to contain the most current motor
vehicle theft related information and upcoming special events. (See Tab 15)
VIII. The Authority has acted in the public interest in utilizing technology to the greatest extent possible to serve its
customers. This has been done by providing vehicle owners the capability to enroll in the Watch Your Car
Program through its website. In addition, grantee agencies access applications, grant information and
application forms needed to submit quarterly performance and financial reports and other information from
the AATA website. (See Tab 16)
IX. The Authority has acted in the public interest by standardizing its grant application, holding annual grant
writing workshops and reviewing grant applications at staff, Subcommittee and full Board levels. These grants
are available to all criminal justice agencies within Arizona,and all criminal justice agencies are notified in
writing when grants applications are solicited. (See Tab 17)
x. The Authority has acted in the public interest by complying with the State of Arizona Opening Meeting Law
and notifying the pUblic of its Subcommittee and Board of Directors meetings by posting meeting notices and
agendas at its office location as well as at the State Capital. The Authority has also acted in the public
interest by responding quickly to requests for public information.
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XI. The Authority has acted in the public interest by maintaining procedures for strict internal controls to safe
guard its financial resources and ensure that the assessment revenue is received when due. The Authority
has established procedures and developed a database for the tracking of revenue and collection of past due
assessments.
XII. The Authority has acted in the public interest by complying with A.R.S §41.3451.K requiring that certified
copies of audits of the Automobile Theft Authority Fund by a certified public accountant be submitted to the
Office of the Auditor General in a timely manner.
XIII. The Authority has acted in the pUblic interest by complying with the statutory mandate (A.R.S. §41.3451.H),
''The costs of administration shall not exceed ten percent of the monies in anyone year so that the greatest
possible portion of the monies available to the authority is expended on motor vehicle theft." For FY 2006
administrative costs were 6.88% of the fund.
XIV. The Authority has acted in the pUblic interest by exceeding the goal set by the Joint Legislative Budget
Committee of administrative expenses of 9% or less of total expenditures. In FY 2006 administrative costs
were 6.30% of total expenditures.
4. The extent to which rules and regulations promulgated by the agency are consistent
with the legislative mandate.
This factor is currently not applicable because the Authority does not have rules or regulatory authority.
5. The extent to which the agency has encouraged input from the public before promulgating
its rules and regulations, and the extent to which it has informed the public as to its
actions and their expected impact on the public.
The Authority currently has no authority to promulgate rules and regulations. However, it does keep the public,
Arizona criminal justice agencies and other stakeholders in both the public and private sector informed through
meetings that are open to the public and by maintaining its website. The Authority complies with Open Meeting
Laws by posting public meeting notices and agendas and ensures compliance by regularly consulting with its
counsel in the Attorney General's Office. The Authority also keeps the public informed on vehicle theft issues
through media releases, sponsoring public awareness events and pUblishing newsletters. It works closely with
criminal justice agencies within the State through active participation in organizations such as the Arizona Auto
Theft Investigators Association and North American Export Committee and by sponsoring the annual AATA Auto
Theft Summit, a seminar for theft investigators in law enforcement and the insurance industry. (See Tab 18)
6. The extent to which the agency has been able to investigate and resolve complaints
that is within its jurisdiction.
The AATA does not have law enforcement powers so that it does not conduct external investigations. However,
the AATA does conduct internal investigations of complaints by grantees or members of the pUblic. The AATA
seldom receives complaints; however, complaints received are quickly resolved.
7. The extent to which the attorney general or any other applicable agency of state
government has the authority to prosecute actions under the enabling legislation.
The Authority does not have investigative, regulatory or oversight authority and consequently the factor would not
apply except for A.R.S §41.3453, which authorizes the following provisions for the collection of past due
assessment revenue:
A. The automobile theft authority shall notify the director of the department of insurance of an insurer's failure to
pay the fee prescribed by section 41-3451, subsection J. On receiving notice of an insurer's failure to pay the
fee, the director may suspend the insurer's certificate of authority or impose a civil penalty of not more than
one hundred twenty per cent of the amount due, or both. The insurer shall pay the civil penalty to the director.
The director shall deposit, pursuant to sections 35-146 and 35-147, the civil penalty in the automobile theft
authority fund. (Refer to Tab 9)
B. For the purposes of this section "insurer" means an insurer that writes motor vehicle insurance in this state,
including reciprocal insurers, mutual companies, mutual associations and lloyd'S plans.
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Because of the effectiveness of the Authority's revenue collection procedures, this provision has only been
implemented once in the last five years.
8. The extent to which the agency has addressed deficiencies in the enabling statutes
that prevent it from fulfilling its statutory mandate.
The Authority has experienced difficulty meeting a quorum in order to conduct its business and in the 2006
Legislative Session the legislature passed SB1181, which permits six Board members: (2) police chiefs, (2)
sheriffs, and (2) county attorneys to have designees attend meetings on their behalf. This legislation became
effective on September 21, 2006 and the first Board meeting after this enabling legislation occurred on
September 29, 2006. It is anticipated this legislative change to ARS 41-3451 will assist the Board in easily
meeting its required quorum.
9. The extent to which changes are necessary in the laws of the agency to adequately
comply with the factors listed in the Sunset Laws..
The Authority is not currently recognized as a criminal justice agency. Only criminal justice agencies have access
to law enforcement data and are able to use this information to conduct analytical studies in their respective areas
of interest. ARS 41-3451 which creates the Authority mandates the agency determine the scope of the auto theft
problem, analyze the various methods of combating the problem, and develop and implement a plan of operation.
In order to successfully accomplish this legislative mandate, the Authority needs access to stolen vehicle data
gathered by law enforcement agencies. The Authority has relied on the Arizona Vehicle Theft Task Force and the
Arizona Criminal Justice Commission to provide us with information or contracted with them to conduct
comprehensive stolen vehicle studies.
The AATA has it own internal staff that is able to conduct studies which would allow us to use funding resources
to combat vehicle theft elsewhere in the program.
Adequately funding the Arizona Vehicle Theft Task Force is a growing concern that can be partially addressed by
removing the fee exemption from vehicles or vehicle combinations with a declared gross vehicle weight of more
than twenty-six thousand pounds and providing language that requires self-insured vehicles licensed in Arizona
to pay a semi-annual fee to the AATA.
10.The extent to which the termination of the agency would significantly harm the public
health, safety or welfare.
The termination of the Arizona Automobile Theft Authority would have a negative effect on the public safety and
welfare of Arizona's communities due primarily to the reduction in resources and abilities of Arizona criminal
justice agencies to continue the successful efforts in reducing the impact and economic costs of vehicle theft.
Vehicle theft and related criminal activity is an epidemic in the State of Arizona, the nation and throughout the
world. It accounts for significant economic losses and affects the overall quality of life in our State.
Vehicle theft is more than just a nuisance crime; it is a gateway crime to other serious felonies. The real impact is
the victimization often caused in our mobile society in terms of lives lost for economic gain. According to the
2005 Crime in the United States Report by the Federal Bureau of Investigation (FBI), there were nearly 1.2
million motor vehicle thefts in the United States in 2005, with an estimated value of $7.6 billion. According to the
Arizona Department of Public Safety (DPS), there were 53,198 vehicles reported stolen in the State of Arizona in
2005, with an estimated value of $343 million. This translates to nearly 146 motor vehicle thefts every 24 hours in
Arizona. Arizona has been one of the leading states in the nation in vehicle theft per capita for the past ten
years. The Phoenix metropolitan area is identified by the National Insurance Crime Bureau (NICB) as having one
of the highest motor vehicle theft rates in the nation. Fortunately, statistical information indicates that the total
number of vehicle thefts has decreased in the State of Arizona (-3.9%), and with the increase in population our
theft rate dropped in 2005 (-4.9%). We attribute the decrease in the vehicle theft rate to the combined efforts of
our criminal justice partners and ongoing public awareness and community education campaigns.
Vehicles are stolen for a variety of reasons. Criminals often steal vehicles simply for a means of transportation or
to facilitate other more egregious crimes such as armed robberies, drive-by shootings, smuggling activities and
so forth. Professional thieves steal vehicles for economic benefit. They operate "chop-shops" where vehicles are
stripped and component parts are sold to unsuspecting buyers or unscrupulous auto repair shops. Thieves also
9
attempt to conceal the identity of stolen vehicles by "VIN-switching" with wrecked or salvaged vehicles in an
attempt to sell them to unsuspecting buyers. The "VIN" is the vehicle identification number and is unique to only
one vehicle. Vehicles are also stolen and smuggled out of the country. There is a growing trend of carjacking due
in part to anti-theft technology advances and automobile thieves resort to stealing cars when they are occupied.
There are a number of factors that contribute to the vehicle theft problem in Arizona. Arizona has experienced a
dramatic population increase over the past 15 to 20 years. Current census information indicates that Arizona's
population is approximately 6,240,000. This reflects an increase of more than 1,110,000 people since 2000.
Arizona's population continues to grow at a phenomenal rate, and this trend is expected to continue. Also there is
a rather transient nature in our communities, with many people living in multi-family housing units such as
apartment complexes and condominiums, etc. In these types of residential areas, vehicles are at a greater risk
for theft. Because of the dry moderate climate in Arizona, our vehicles tend to maintain a higher value than in
other areas of the country. This single factor alone is·why chop shops can make more money by selling old
automobile parts rather than selling the entire vehicle.
The greatest influence on Arizona's vehicle theft rate is most likely due to the state's proximity to Mexico. The
National Insurance Crime Bureau (NICB) indicates that motor vehicle theft is highest in major metropolitan areas
and vicinities near seaports or international borders. There are seven official ports-of-entry along the 354-mile
Arizona - Mexico border and major California seaports are less than eight hours away. One of the biggest
problems with most vehicle thefts occurring at night is that victims typically discover their vehicle is gone several
hours after the crime has occurred. A stolen vehicle can be stripped for parts, used to facilitate other crimes or
smuggled into Mexico before the owner realizes that it is missing.
The vehicle theft problem has steadily increased since 1987. By 1994, Arizona had become the highest-ranking
state in vehicle theft per capita. It should be noted that a Department of Justice study reported that 60% of
vehicle thefts are related to other crimes including drug and human trafficking, illegal weapons, drive-by
shootings, burglary, credit card fraud and theft. Statistics indicate that vehicle theft significantly impacts residents
and visitors. Vehicle theft leaves thousands of Arizona citizens feeling violated and without transportation. In
some cases, such as car-jackings, the victim faces direct confrontation with violent offenders leaving the victim
terrified, injured or killed. (See Tab 19)
Vehicle theft not only affects the quality of life of our citizens, but impacts businesses and insurance companies.
A vehicle is no longer considered a luxury, but a necessity for Arizona residents. The growth throughout Arizona,
particularly the metropolitan cities of Phoenix and Tucson areas, along with the lack of reliable and convenient
mass transit systems, promotes dependency upon personal vehicles as a main source of transportation.
Personal vehicles are a necessary component to quality of life and economic survival. The higher cost of
vehicles, insurance deductibles, and potential 30 day waiting periods for insurance settlements creates a
financial hardship for many auto theft victims. Those victims with only liability coverage suffer a total loss if their
vehicle is not recovered or recovered with severe damage.
The high rate of vehicle theft in Arizona over the past several years has been partially attributed to Arizona's
proximity to the international border with Mexico as well as to the successful anti-vehicle theft programs
implemented by other states such as California, Texas, Illinois and Michigan. Additionally, the Federal
government deployed significant resources to both California and Texas to deter smuggling activities, which has
resulted in the unintended consequence of redirecting smuggling activities to the Arizona border region. There is
evidence that the success of these programs has caused the migration of criminal activity to Arizona.
Stolen vehicles from the U.S. and other affluent countries end upin developing countries such as Asia, Eastern
Europe, the Middle East, Mexico, Central and South America. The continuing decline in the recovery rate of
stolen vehicles indicates greater organized criminal activity. Additionally. the international intelligence community
!Interpol) has identified vehicle theft and related criminal activity. including insurance fraud. as a primary illicit
fund-raising source for supporting international terrorism.
In 2003, the statewide Arizona Vehicle Theft Task Force, which is fUlly funded by the AATA, investigated and
exposed a vehicle theft ring involved in the theft of expensive vehicles, Operation Wounded Jaguar. After a year
of investigation, which included cooperation with law enforcement agencies in other states and the Federal
Government, 19 indictments were filed in Federal Court. Of the 19 indictments, only one was an American citizen
who worked for the Arizona Motor Vehicle Department. The other 18 were all foreign nationals, some from
Eastern Europe, but most were from the Middle East. While there has never been any official confirmation of the
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fact, the possibility clearly exists that this successful investigation exposed a terrorist finance ring. Operation
Wounded Jaguar also demonstrates the capability of the Arizona Automobile Theft Authority in sponsoring
programs which will improve the ability of the State of Arizona to shut down the flow of stolen vehicles to foreign
countries for the possible benefit of criminal or terrorist organizations. (Refer to Tab 2)
Accordingly, without the joint statewide efforts, focus and leadership of the Authority, working with its criminal
justice partners and concerned citizens; vehicle theft would greatly increase and result in negative impact to the
pUblic safety, welfare and economy.
11. The extent to which the level of regulation exercised by the agency is appropriate and
whether less or more stringent levels of regulation would be appropriate.
This factor does not apply to the Authority since the Arizona Automobile Theft Authority is not a regulatory
agency and therefore has no regulatory authority.
12. The extent to which the agency has used private contractors iii the performance of its
duties and effective
Section G of A.R.S. §41.3451 defines how the Authority is to carry out its mission: 'The automobile theft authority
shall allocate monies in the fund to public agencies for the purpose of establishing, maintaining and supporting
programs that are designed to prevent motor vehicle theft, including":
Financial support to law enforcement and prosecution agencies for programs that are designed to increase
the effectiveness of motor vehicle theft prosecution.
Financial support for programs that are designed to educate and assist the public in the prevention of motor
vehicle theft.
While the Authority has always considered ways to utilize private contractors to effectively and efficiently fulfill its
mission, the focus of the fight against vehicle theft must be waged through the efforts of public sector criminal
justice agencies within the State of Arizona. These efforts are funded through grant funding from the Authority.
Authority grants or funding are not available to private sector entities.
11
ARIZONA AUTOMOBILE THEFT AUTHORITY
Sunset Factors - Additional Questions
October 1, 2006
1. An identification of the problem or the needs that the agency is intending to address.
As mentioned earlier, vehicles are stolen for a variety of reasons. Vehicles may be stolen simply as a means of
transportation. Criminals often steal vehicles in order to facilitate other crimes, such as armed robberies,
kidnappings, drive-by shootings, smuggling activities and so forth. Professional auto thieves steal vehicles for
economic benefit. They operate "chop shops," where vehicles are stripped and component parts are sold to
unsuspecting buyers, or unscrupUlous auto repair shops. They also attempt to conceal the identity of stolen
vehicles by "VIN-switching" with wrecked or salvaged vehicles and then sell them to unsuspecting buyers. The
"VIN" is the vehicle identification number and is unique to only one vehicle.
Thieves gain access to vehicles in many ways. Unfortunately, the most common way thieves are able to gain
access to a vehicle occurs when the owner does not properly secure their vehicle, often leaving the keys in the
ignition and/or the vehicle left running. Thieves have learned to gain access to vehicles using a device known as
a "slim jim" to unlock doors or through the use of'jiggle keys or master keys. Common tools used in lock-smithing
are also readily available. In some cases, doors are forced open or windows are broken to gain access to a
vehicle. Once inside the vehicle, thieves are also able to use ignition key blanks to force the ignition. Many of the
items used by auto thieves to aid in the theft of a vehicle can be purchased on the Internet or obtained from local
criminal sources. In some instances, the auto thief may resort to towing the vehicle away.
For many years, auto theft has been a low risk, high profit crime for thieves. If vehicle theft were a legitimate
business it would be list in the top 250 companies of the Fortune 500. According to the Crime in the United States
Report by the Federal Bureau of Investigation (FBI), there were nearly 1.3 million motor vehicle thefts in the
United States in 2004, with an estimated value of $8.6 billion. According to the Arizona Department of Public
Safety (DPS), there were 53,198 vehicles reported stolen in the State of Arizona in 2005, with an estimated value
of $343 million. This translates to nearly 146 motor vehicle thefts every 24 hours in Arizona. Arizona has been one
of the leading states in the nation in vehicle theft per capita for the past ten years. The Phoenix metropolitan area
is identified by the National Insurance Crime Bureau (NICB) as having one of the highest motor vehicle theft rates
in the nation. Fortunately, statistical information indicates the total number of vehicle thefts decreased in the State of
Arizona (-2.21%) in 2005. The Authority attributes the decrease in the vehicle theft rate to the combined efforts of our
criminal justice partners and ongoing public awareness and community education campaigns.
Criminals are known to follow the path of least resistance. As vehicle theft is commonly referred to as a property
crime by law enforcement agencies. The reality is that the law enforcement community must prioritize calls for
service. In most, if not all instances, there are insufficient resources to adequately address the investigation of all
criminal activity. Due to the priority of resources of vehicle theft as a property crime, it falls to the bottom of the
priority crimes list and does not receive the attention needed to reverse its affect on our state. In summary, local
authorities do not have the means (funding) to focus on this insidious and far-reaching crime.
The continuing vehicle theft problem and growing population in Arizona requires a coordinated statewide effort to
develop, implement and sustain successful programs and inter-agency cooperation to combat vehicle theft in the
state. Arizona's proximity to Mexico, the declining recovery rate and homeland security concerns mandate
employing partnerships on a national and international level to curtail vehicle theft by organized criminal groups
and deter exportation of stolen vehicles to finance other criminal activities and international terrorism.
The Authority believes its current initiatives, programs and partnerships are beginning to take hold and have an
impact on Arizona's vehicle theft rate. Although the Agency is encouraged by the reduction, a great deal of work
remains to continue to reduce Arizona's vehicle theft rate. The AATA remains committed to reducing the incidence
of vehicle theft in the state with support from the insurance industry, criminal justice agencies, community
organizations, and business partners, and looks forward to continued service to the citizens of Arizona.
2. A statement, to the extent practicable, in quantitative and qualitative terms, of the
objectives of such agency and its anticipated accomplishments.
The Authority's Operational Plan outlines the various methods the Authority has determined will best combat
vehicle theft in the State of Arizona. (See Tab 20)
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• A. Law enforcement activities:
I. The Arizona Vehicle Theft Task Force
In November 1996, the AATA approved a grant proposal by the Arizona Department of Public Safety
(DPS) to establish a statewide, multi-agency vehicle theft task force. The AATA Board of Directors
supported the concept of a unified and collaborative approach to combat the problem of vehicle theft in
the State of Arizona. Upon reviewing existing programs in other states, it was determined that a state task
force would be most efficient and cost effective. This offered the greatest control and accountability, with
the lowest associated administrative cost. The Arizona Vehicle Theft Task Force also referred to as the
RADLER (Regional Auto Theft Team Law Enforcement Response) Task Force, commenced limited
operation in January 1997. By the end of December 2001, the Task Force consisted of three enforcement
squads located in Maricopa County, Pima County, and two "border" enforcement squads, with personnel
located throughout the southern counties bordering Mexico. Task Force personnel are currently located in
Cochise, Maricopa, Mohave, Pima, Pinal, Santa Cruz, Yavapai and Yuma Counties and represent
fourteen different law enforcement agencies. The Task Force will continually evaluate its deployment
strategies. (Refer to Tab 2)
The deployment of AATA funded resources is based upon the vehicle theft rates in OUf counties; along
with where it is determined the greatest return on investment will be made. Generally 75% to 80% of
vehicle thefts occur in Maricopa County; with 15% to 20% occurring in Pima County and 5% to 10%
occurring in the remaining 13 Arizona counties (refer to attachments 2 and 3). Since the overwhelming
majority of vehicle thefts occur in Maricopa and Pima Counties, most of the Task Force's resources have
been directed there.
•
*Arizona Vehicle Thefts By County
2004
Pima, 8,097,
15%
Yavapai - 367
Graham -49
La Paz- 34
Apache - 25
Greenlee. 0, 0%
Cochise - 471
Coconino - 242
Yuma -479
Santa Cruz - 168
Mohave -497
Pinal- 794
Navajo. 115
~ =~==---Gila- 92
Other, 4,972, 9% Maricopa,
41,446,76%
• •Source: Arizona Department of Public Safety· Crime in Arizona 2004 .
13
This does not mean that the AATA or Ta.sk Force discounts the impact that vehicle theft has on our
citizens in the other counties. The Task Force currently has personnel in Arizona counties with the highest
number of vehicle thefts, and/or border counties. Upon request, the Task Force routinely responds
statewide to provide investigative support and technical expertise to local law enforcement agencies. It is
ultimately the desire of the AATA to have Task Force personnel located in every Arizona county.
The Task Force is administered by the AZ. DPS and includes both sworn and civilian personnel, and is
almost entirely funded by the AATA. The DPS Vehicle Theft Investigations squad, (including a sworn
supervisor and six detectives) was incorporated into the Task Force. All of the other FTE's in the Task
Force (excluding the NICB special agents, MVD investigators and border liaison personnel) are funded by
the AATA grant.
The Task Force serves as a statewide resource for the investigation of property crimes involving vehicles,
related components and insurance fraud. It provides technical expertise, training and investigative support
to law enforcement agencies targeting vehicle theft and related crimes. The unit is comprised of local,
state and federal law enforcement agencies, along with other entities participating in a concerted effort to
identify, apprehend and prosecute individuals and criminal organizations that profit from motor vehicle
theft or related criminal activity, and insurance fraud.
The Task Force provides a vital mission on behalf of the AATA to reduce vehicle theft in the State of
Arizona through public awareness and community education, and the deterrence of criminal activity
through aggressive, proactive enforcement and prosecution. Without funding by the AATA, the Vehicle
Theft Task Force would not exist and it does not appear that any other agencies or funding sources are
readily available to support this valuable program.
Based on the significant results of the Task Force since its inception, the AATA approved continuation and
expansion of this grant through June 30, 2007.
II. Other Law Enforcement Grants
As a philosophical policy matter, the AATA Board of Directors is committed to supporting the multi­agency,
statewide law enforcement Task Force concept. The other law enforcement grants that are
available generally support specific tasks and applications, such as training, equipment and promoting
the Agency's pUblic awareness and community education activities. All Arizona criminal justice agencies
are eligible to apply for AATA grants. These grants will be available for investigation of vehicle theft
crimes, purchase of equipment for vehicle theft investigations, and training of vehicle theft investigators.
(See Tab 21)
The Authority has approved the follOWing grant programs to Arizona Law Enforcement agencies
to combat vehicle theft through law enforcement investigation:
Law Enforcement Grants - awarded to law enforcement agencies to promote more efficient and
effective law enforcement activities of vehicle theft investigation, enforcement and prevention within their
jurisdiction. Law enforcement agencies in the State of Arizona will be notified of the availability and
purpose of grant funds and will be continue to be eligible to submit applications for grants provided they
comply with the terms and conditions of the grant. The Authority will continue to use this grant program to
assist police agencies around the state to combat vehicle theft through proven strategies such as bait
vehicles, mobile license plate readers and overtime funding.
Professional Training Grants - awarded to law enforcement and prosecutorial agencies to promote
professional training and development of its law enforcement officers or prosecutors. Agencies and
prosecutorial offices within the State of Arizona will be notified of the availability and purpose of grant
funds and will be eligible to submit applications for grants provided they comply with the terms and
conditions of the grant. Awards will be based on the evaluation of the training requested as well as
the impact the training will have on the statewide effort to combat vehicle theft. The AATA staff and
subcommittee of the AATA Board will evaluate requests, with final approval given by the full Board.
Both tuition and travel expenses will be considered (See Grant Policy & Procedure ATA 705).
• Emergency Assistance Grants - Any law enforcement agency in the State of Arizona may contact
the Executive Director of the Arizona Automobile Theft Authority for assistance with training,
investigation or funding of any immediate need relating to combating vehicle theft in Arizona. Each
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such request will be handled individually, based on urgency, merit, and available resources. Requests
may be forwarded to the Arizona Vehicle Theft Task Force.
Vertical Prosecution
The County Attorney Offices have primary jurisdiction over vehicle theft related cases in the State of
Arizona. In fiscal year 2002, the AATA awarded grants to the Maricopa, Pima and Pinal County Attorney's
Offices to support vertical prosecution. In fiscal year 2003, grants were awarded to the Cochise, Mohave
and Santa Cruz County Attorney's Offices to support part-time vertical prosecution. The Authority
currently funds six grants that provide dedicated Vertical Prosecutors in Cochise, Maricopa, Mohave,
Pima, Pinal and Santa Cruz counties. In addition to handling cases, these prosecutors also provide
technical expertise and training to law enforcement personnel and other prosecutors throughout the state.
(See Tab 22)
The Authority plans to expand this program to other counties in the future and continues to support the
imposition of the maximum penalty permitted by law as well supporting payment of restitution by those
convicted of vehicle theft crimes. The grants are awarded with the understanding that cases brought by
the Task Force will take priority and will be subject to vertical prosecution. In addition to the prosecution
process, the attorney will work with the Task Force to offer legal training and provide advice on cases
under investigation.
Public Awareness
A vital component in the AATA's mission statement is the public awareness and education area. The
Authority increases public awareness by educating Arizona citizens about vehicle theft prevention through
use of media campaigns and community events throughout the state. The AATA collaborates with law
enforcement agencies and several other community partners to increase awareness of Arizona's vehicle
theft rate as well as preventative measures that should be practiced by all Arizona residents.
Watch Your Car Program
The Watch Your Car Program will continue to be promoted as a means of disseminating vehicle theft
prevention information to the citizens of Arizona. This program is designed to assist law enforcement in
checking vehicles found on the street between 1 AM and 5 AM, when the owner is typically not operating
their vehicle, or when the vehicle is in close proximity to an international border. Information on this
program will be made available to the citizens of Arizona by:
1. The AATA website (www.azwatchyourcar.com)
2. Statewide law enforcement agencies receiving AATA public awareness grants, as well as those not
receiving AATA grant funding
3. Public awareness events sponsored by the AATA
4. Newspaper, radio and television news stories, advertisements and PSA's
5. Homeowner associations, civic groups, and insurance companies
6. Mailings by MVD and local communities
Public Awareness Grants to statewide law enforcement agencies
Grants to law enforcement agencies will be awarded by the AATA to promote public awareness of vehicle
theft prevention strategies and the Watch Your Car Program. Criminal justice agencies in the State of
Arizona will be notified of the availability and purpose of grant funds and will be eligible to submit
applications for grants provided they comply with the terms and conditions of the grant. Awards will be
based on the evaluation of the grant proposal by the AATA staff and subcommittee of the AATA Board,
with final approval given by the full Board of Directors. (See Tab 23)
Continuation of the partnership with the Motor Vehicle Division for the mailing of vehicle theft
prevention materials to every registered vehicle owner in the state.
Develop and implement an auto theft prevention curriculum for middle and high school students
in the state.
15
According to the Department of Public Safety, in 2004, approximately 15% of vehicles were stolen by
juveniles. In reviewing the vehicle theft problem, the AATA will address resources to educating students in
middle school and high school on the facts regarding vehicle theft. (Refer to Tab 12)
Utilization of the AATA website
The Authority will continue to utilize its website to provide easy access to the AATA and its programs. The
agency website will include:
1. Information on available AATA grants
2. Vehicle theft prevention information and on-line enrollment form for the Watch Your Car Program
3. Listing of current events sponsored by the AATA and its law enforcement partners
4. Information for insurance companies addressing frequently asked questions concerning the semi­annual
assessment requirements
5. Statistical data on vehicle theft (Refer to Tab 15)
Expansion of AATA media and advertising efforts
The Authority will continue to disseminate vehicle theft prevention and Watch Your Car Program
information via press releases through coordinated media outreach efforts. In addition, development of
Public Service Announcements (PSA's) will be distributed to broadcast media outlets throughout the
state. (Refer to Tabs 11 &8)
3. An identification of any other agencies having a similar, conflictrng or duplicate
objectives, and an explanation of the manner in which the agency avoids duplica­tion
or conflicts with other such agencies.
There does not appear to be any duplication of efforts performed by the Authority in regards to activities
currently performed by other agencies. By statute, the Authority is the agency mandated to administer
programs related to vehicle theft prevention and deterrence in the State of Arizona. This is accomplished by
developing and supporting comprehensive anti-vehicle theft programs and by providing financial resources
to assist criminal justice agencies to fulfill this mission.
4. Assessment of the consequences of elimination of the agency or of consolidating
it with another agency.
I. Assessment of the consequences of eliminating the agency
Eliminating the Authority would essentially do away with the collaborative partnerships fostered by the
AATA and those existing within the Arizona Vehicle Theft Task Force comprised of multiple law
enforcement agencies in various counties. The Task Force is fully funded by the AATA bUdget and has
been recognized in 2006 by the International Association of Chief's of Police as the top premier vehicle
theft task force in the country. In addition, funding providing for vertical prosecution and community
awareness theft prevention programs would be abolished. Florida State eliminated their Automobile Theft
Prevention Authority because of the success it had experienced and today they are looking to re-establish
this agency because of the growing automobile theft problem.
The effects of eliminating the Authority could include the following:
Vehicle theft would significantly increase
The recovery rate of stolen vehicles would decrease, the international exportation of stolen Arizona
vehicles would increase
Criminal justice (3.gencies would not have additional resources to combat vehicle theft or to invest in
new technology such as bait vehicles and mobile license plate readers
The vertical prosecution programs would disappear and the State of Arizona would experience a
reduction in harsher imposed sentences for vehicle theft cases,
Funding for public awareness/community education on how the general public can and should protect
their vehicles would be eliminated,
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Without the funding provided by the Authority, the statewide efforts of the Arizona Vehicle Theft Task
Force would be discontinued,
Arizona citizens would pay higher insurance premiums due to an increase in the automobile theft
rate.
II. Assessment of the consequences of consolidating the Authority with another Agency.
Consolidating the Authority with another agency would not serve in the best interest of Arizona's citizens.
Funding for the Authority comes solely from the insurance industry and investment income. In addition,
the Authority's administrative costs remain low; 6.31% of total expenditures for FY 2006; the performance
target set by the Joint Legislative Budget Committee (JLBC) for an administrative cost was 9%.
Consolidating the Authority with another state agency would add another layer of bureaucracy that would
lessen the AATA's ability to affect public policy impacting this state's automobile theft problem. The
Arizona Automobile Theft Authority currently serves as a model agency that several other states are
attempting to copy and create to combat auto theft. Other States that have an Automobile Theft
Prevention Authority that is under the umbrella of another state agency has not been as effective as
Arizona. In addition, the insurance industry has expressed concerns that if the Authority were to be
placed under the control of another agency, its funding may be used for other, non-auto theft programs.
17
•
Interim agendas can be obtained via the Internet at http://www.azleg.state.az.us/lnterimCommittees.asp
ARIZONA STATE LEGISLATURE
INTERIM MEETING NOTICE
OPEN TO THE PUBLIC
SENATE TRANSPORTATION AND HOUSE OF REPRESENTATIVES TRANSPORTATION
COMMITTEE OF REFERENCE FOR THE SUNSET HEARING OF
THE ARIZONA AUTOMOBILE THEFT AUTHORITY AND
PERFORMANCE AUDIT OF
THE PINAL COUNTY TRANSPORTATION EXCISE TAX
Date:
Time:
Place:
Tuesday, December 12, 2006
9:30 A.M.
HHR3
AGENDA
•
1. Call to Order
2. Opening Remarks
3. Sunset Review of the Arizona Automobile Theft Authority
• Presentation by the Arizona Automobile Theft Authority
• Public Testimony
• Discussion
• Recommendations by the Committee of Reference
4. Performance Audit of the Pinal County Transportation Excise Tax
• Presentation by the Office of the Auditor General
• Public Testimony
• Discussion
• Recommendations by the Committee of Reference
5. Adjourn
Members:
Senator Thayer Verschoor, Co-Chair
Senator Carolyn Allen
Senator Chuck Gray
Senator Rebecca Rios
Senator Victor Soltero
Representative Pamela Gorman, Co-Chair
Representative Meg Burton Cahill
Representative Russ Jones
Representative John Nelson
Representative Tom Prezelski
• 12/6/06
jmb
People with disabilities may request reasonable accommodations such as interpreters,
alternative formats, or assistance with physical accessibility. If you require accommodations,
please contact the Chief Clerk's Office at (602) 926-3032, TOO (602) 926-3241.
Page 1 of 1
• ARIZONA STATE LEGISLATURE
Forty-seventh Legislature - Second Regular Session
SENATE TRANSPORTATION AND HOUSE OF REPRESENTATIVES
TRANSPORTATION COMMITTEE OF REFERENCE FOR THE
SUNSET HEARING OF THE ARIZONA AUTOMOBILE THEFT
AUTHORITY AND THE PERFORMANCE AUDIT OF THE
PINAL COUNTY TRANSPORTATION EXCISE TAX
Minutes of Meeting
Tuesday, December 12,2006
House Hearing Room 3 -- 9:30 a.m.
Chairman Gorman called the meeting to order at 9:35a.m. and attendance was noted by the
secretary.
Members Present
•
Senator Chuck Gray
Senator Rebecca Rios
Senator Victor Soltero
Senator Thayer Verschoor, Cochair
Senator Carolyn Allen
Representative John Nelson
Representative Pamela Gorman, Cochair
Members Absent
Representative Meg Burton Cahill
Representative Russ Jones
Representative Tom Prezelski
Speakers Present
•
Rene Guillen, Assistant Majority Research Analyst
Anne Hunter, Office of the Auditor General (AG)
Shannon Ortiz, Town Clerk, Town ofMammoth
Terry Doolittle, Manager, Pinal County
Enrique Cantu, Executive Director, Arizona Automobile Theft Authority (AATA)
Mikel Longman, Chief, Criminal Investigations, Department of Public Safety (DPS)
Don Isaacson, representing State Farm Insurance Company
Brian Salata, Prosecuting Attorney, Pinal County
John Wintersteen, Chief, Paradise Valley Police Department
Ralph Ogden, Sheriff, Yuma County
Names of persons who did not speak (pages 5 and 7)
Senate Transportation and House
of Representatives Transportation
Committee of Reference
December 12,2006
Chairman Gorman announced that the Committee will hear discussion on the Arizona
Automobile Theft Authority. In addition, the Office of the Auditor General will give a •
presentation on the Pinal Excise Tax audit. She announced that no action will be taken on the
Pinal County Transportation Excise Tax.
PRESENTATIONS:
Rene Guillen, Assistant Majority Research Analyst, advised that the purpose of today's meeting
is to review the Arizona Automobile Theft Authority (AATA). The Committee has the option to
either terminate the agency, continue the agency for a number of years, or to continue the agency
with additional recommendations. In addition, in June of this year, the Office of the Auditor
General conducted an audit of the Pinal County Transportation Excise Tax. A performance audit
is required of every transportation excise tax in the State. The first audit occurs after the first ten
years and then subsequently every five years. With the Office of the Auditor General
Performance Audit, the Committee is not required to take any action.
PERFORMANCE AUDIT OF THE PINAL COUNTY TRANSPORTATION EXCISE
TAX:
Anne Hunter, Office of the Auditor General (AG), presented information from the Auditor
General's performance audit of the Pinal County transportation excise tax which was completed
in June, 2006 (Attachment 1). A copy of the performance audit was distributed as well as report
highlights of the audit (Attachments 2 and 3). Statute requires that the Auditor General conduct •
a performance audit in the tenth year that a transportation excise tax is in effect and then every
five years thereafter. The AG is required to determine whether the excise tax revenues are used
for street and highway purposes or transportation projects, review past and future planned
expenditures, and determine the impact of those expenditures on solving transportation
problems. The one-half cent excise tax was established in 1987 by the voters and has generated
more than $107 million dollars. The tax is shared with the 10 incorporated cities and towns in
Pinal County and distribution is based on population. The excise tax was re-authorized in a
special election held in November, 2005, and will remain in effect until 2026. It is expected to
generate approximately $951 million in the next 20 years. The excise tax has allowed Pinal
County and the cities and towns to address a variety oftransportation needs.
The audit identified the following findings:
• It was found that two cities can more effectively demonstrate the impact of the
transportation tax. The City of Coolidge should apply the results of a recently completed
capital improvement plan and a small area transportation study that is underway to
identify and prioritize tra..'1sportation projects; and the Town of Mammoth should
formalize its planning process and keep a record of routine maintenance and any
completed transportation projects that are funded with excise tax monies.
• The incorporated cities and towns that receive excise tax revenues need to implement
policies and procedures to help ensure that they appropriately spend the revenues and .•.
comply with the excise tax's statutory requirements. A sample of 43 of Pinal County's
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excise tax expenditures were reviewed and it was determined that the expenditures
complied with the tax's statutory restrictions. A sample of 52 expenditures from the City
of Apache Junction's road fund was reviewed and two minor, inappropriate expenditures
were identified, both less than $50 each. A sample of 31 expenditures from the Town of
Mammoth's road fund showed inappropriate or unsupported expenditures totaling less
than $500. In the Town of Superior, 29 expenditures were reviewed. One inappropriate
expenditure that was less than $30 was identified and one cost of $322 was incorrectly
charged to its road fund.
Ms. Hunter advised that the audit showed that although the incorporated cities and towns in Pinal
County rely on a variety of mechanisms to help ensure that excise tax monies are used
appropriately, all the cities and towns lack written policies and procedures that specifically
address the expenditure of statutorily restricted road monies, including excise tax monies. She
said this may have contributed to the inappropriate, unsupported and incorrectly recorded
expenditures identified by the AG's office. It was recommended that all cities and towns
develop and implement written policies and procedures that specifically address restricted road
monies. It was further recommended that when policies and procedures are adopted, they be
provided to public works officials and others who are responsible for approving expenditures.
Shannon Ortiz, Town Clerk, Town of Mammoth, advised that the Town of Mammoth is in the
process of implementing all the recommendations made by the audit team. The Auditor
General's Office is working with the Town to address the issues raised by the audit.
Terry Doolittle, Manager, Pinal County, testified that in 2005 the voters reauthorized the
extension of the transportation excise tax for another 20 years. The County has been able to
convert many miles of dirt roads to paved roads with the extension ofthe excise tax.
Senator Verschoor queried whether the County is doing anything to ensure that the monies are
being properly used. Mr. Doolittle related that the countywide policies are being developed.
SUNSET HEARING OF THE ARIZONA AUTOMOBILE THEFT AUTHORITY:
Enrique Cantu, Executive Director, Arizona Automobile Theft Authority fAATA), provided
background information on the Arizona Automobile Theft Authority (AATA) for its sunset
review (Attachment 4). He related that the AATA provides vital information to the citizens of
Arizona. Since its creation in 1992, it has been very successful in combating vehicle theft. In
1997 the Legislature established the AATA in its present form which consists of a twelve­member
board of directors. The purpose of the Authority is to combat vehicle theft throughout
the State. The AATA is funded by revenues collected by the insurance industry; it does not
receive any General Fund monies. The Authority supports programs that effectively deter and
prevent vehicle theft:
•
• Law Enforcement Program:
1. Arizona Vehicle Theft Task Force
2. Law Enforcement, Professional Training and Emergency Assistance Grants
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3. Statewide Bait Vehicle Program
4. License Plate Reader Program
• Vertical Prosecution Program:
1. Vertical Prosecution, Professional Training and Emergency Assistance Grants
• Public Awareness/Community Education Programs:
1. Public Awareness Grant
2. Watch Your Car Program
3. Vehicle Identification Number (YIN) Etching Program
4. Partnerships with statewide law enforcement, criminal justice and community
partners to promote vehicle theft prevention
5. Advertising and media campaigns
•
Mr. Cantu provided 2005 statistics. He advised that 90 percent of Arizona thefts occurred in
Maricopa and Pima Counties, which suppOlis the national trend of automobile thefts occurring in
major metropolitan areas. The Phoenix Metropolitan area ranked sixth in the top ten of u.s.
metropolitan areas with the highest vehicle theft rate; approximately 150 vehicles are stolen
every day in the State. About 65 percent of stolen vehicles are recovered. Those not recovered
are often shipped overseas; driven across U.S. borders; stripped by chop shops and resold as
parts; or hidden or destroyed by owners to collect an insurance settlement. Stolen vehicles are •
frequently used to commit other criminal acts, including robberies, illegal drug and human
trafficking and drive-by shootings. He asked the Committee of Reference to support a five-year
continuance of the Arizona Automobile Theft Authority.
Senator Soltero asked the number of people employed by ATA. Mr. Cantu advised that the
AATA has six staff employees. He said there are 50 full-time employees on the task force.
In response to Senator Soltero, Mr. Cantu related that the task force is administered by the
Department of Public Safety and is fully funded by the AATA.
Senator Verschoor questioned the length of time the 131 individuals who have been prosecuted
involving the use of bait cars stay in jail. Mr. Cantu replied that he is not sure; however, stiff
sentences are being asked for. Senator Verschoor asked whether any of these individuals have
been caught more than once. Mr. Cantu said he does not know.
Senator Verschoor asked about license plate scanners. Mr. Cantu noted that they are
manufactured to be either placed in vehicles so they are mobile or placed at fixed sites.
Senator Gray wondered whether insurance rates have gone down as a result of the work of the
AATA. Mr. Cantu answered that is a complex question. He explained that the majority of
money paid for insurance goes for liability. Comprehensive coverage is a small portion of rates. •
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Senator Gray stated that the Authority has the opportunity to be a resource to the Legislature to
address issues that will help lower insurance rates. He said he would like to see how the task
force's work in reducing and deterring theft is affecting rates.
Mikel Longman, Chief, Criminal Investigations, Department of Public Safety (DPS), advised
that the Department of Public Safety (DPS) administers the task force through grants that come
from the Arizona Automobile Theft Authority. The task force began limited operations in
January, 1998 and has grown substantially since that time. Along with other programs, he stated
it is seriously making a dent on auto theft. The task force consists of approximately 50 people
from 16 to 22 agencies statewide. He related that vehicle theft is a tough crime to fight because
the theft may occur in one jurisdiction and the person may go to a different jurisdiction to
commit another crime. Stolen vehicles are used in facilitating other crimes, such as smuggling
drugs and people. He noted that Arizona is a major smuggling port.
Senator Soltero said he has heard that vehicle theft is a low priority for law enforcement. He
asked what happens when a car is stolen. Chief Longman advised that when a person informs
the local jurisdiction of a theft, the information is entered into both a statewide and national
computer system. He revealed that 54,000 cars are stolen in Arizona annually.
Senator Soltero again said he has heard that the priority given to stolen vehicles is not what it
should be. Chief Longman responded that law enforcement has to prioritize calls. Violent
crimes receive the highest level of response. He said that automobile theft is a major crime and
it is given significant attention by law enforcement.
Senator Gray asked for suggestions that the Legislature can do, using the AATA as a resource, to
help deter vehicle theft. Chief Longman recommended enhanced penalties, making a concerted
effort to track down predators, and coming up with a statewide strategy to address this problem.
He mentioned hiring more DPS officers, a greater prosecutorial effort and placing more attention
on insurance fraud.
Senator Gray asked about working with the tribes on the reservations to address crossing
jurisdictions. Chief Longman said he has had no experience with that. Senator Gray queried
whether the tribes have representation on the task force. Chief Longman replied in the negative.
Persons in support of the continuation of the AATA who did not speak:
Rares Almasan, Arizona Automobile Theft Authority (AATA)
Eric Hitchcock, Arizona Automobile Theft Authority (AATA)
Robert Ticer, Arizona Department of Public Safety (DPS)
Matt Reed, State Farm Insurance Company
Joe Brocus, Arizona Automobile Theft Authority (AATA)
Don Isaacson, representing State Farm Insurance Company, expressed support of the Arizona
Automobile Theft Authority (AATA). He stated that over the years, State Farm has come to
recognize that states that have an Automobile Theft Authority are three times more effective in
the reduction of vehicle thefts. He advised that auto theft is under the comprehensive coverage
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of insurance coverage. Any time there is a decrease in the incidence of theft, there is a decrease •
in the overall rate component of comprehensive coverage, and that helps reduce rates.
In response to Senator Gray, Mr. Cantu reviewed the membership of the Authority: two police
chiefs, two sheriffs, two county attorneys, two employees of insurers, two members of the
general public, the assistant director of the Motor Vehicle Division, and the Director of the
Department of Public Safety. The task force is comprised mainly of representatives of 18
different law enforcement agencies.
Brian Salata, Prosecuting Attorney, Pinal County, spoke about the Vertical Prosecution Program.
Under this program, a single prosecutor is involved in the case all the way through sentencing.
70 percent of the cases are prosecuted and the conviction rate is over 95 percent. He related that
about 35 percent of stolen vehicles are not recovered; they are exported out of the country or
chopped up and sold for parts. Approximately 90 percent of the stolen vehicles in Pinal County
are mob-related and are used in the commission of other crimes, such as drug or human
smuggling.
Senator Verschoor moved that the Committee of Reference make the
recommendation to continue the Arizona Automobile Theft Authority for five years.
The motion carried by a roll call vote of 6-0-0-4 (Attachment 5).
Senator Soltero wondered whether automobile manufacturers can do anything to reduce auto
theft. Mr. Salata pointed out that they have come up with the STAR technology to make
recovery easier and quicker. He advised that other countries are using microdot technology to •
identify specific parts as a means of tracing stolen parts. He also brought up the use of bait cars
and the license plate reader.
Senator Gray asked the percentage of auto theft prosecutions that are vertical. Mr. Salata
answered that 100 percent of cases in Pinal County are vertical prosecutions. Senator Gray
wondered whether vertical-type prosecution would be successful in other areas of crime. Mr.
Salata said that is his belief.
John Wintersteen, Chief, Paradise Valley PoliCe Department, spoke about the prevention
component of automobile thefts. He related that theft in Paradise Valley has been reduced by 70
percent since the Arizona Automobile Theft Authority'S participation. Without the AATA, this
reduction could not have been accomplished. He advised that the Paradise Valley Police
Department is involved in Vehicle Identification Number (VIN) etching. He stated that VIN
etching is requested by communities.
Chairman Gorman asked whether communities can request VIN etching. Chief Wintersteen
answered that Phoenix is funded to do VIN etching. Chairman Gorman queried whether Home
Owners Associations ca..'1 request VIN etching or whether the request must go through a police
department. Chief Wintersteen stated that it is better to go through law enforcement.
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Ralph Ogden, Sheriff, Yuma County, stated that the Arizona Automobile Theft Authority is a
great program. All law enforcement agencies work together so these cases can be prosecuted.
He said the program is very effective.
In response to Senator Gray's question concerning recommendations to the Legislature, Sheriff
Ogden asked the Legislature to continue to support the program, require both front and back
license plates on vehicles and have the vehicle license plate stay on the vehicle. He pointed out
that Yuma County works closely with law enforcement counterparts in Mexico to recover stolen
vehicles and with law enforcement counterparts in other states.
Persons in support of the continuation of the AATA who did not speak:
Mel Kogal, Paradise Valley
Ellen Poole, Board Member, Arizona Automobile Theft Authority (AATA)
Without objection, the meeting adjourned at 11: 13 a.m.
(Original minutes, attachments and tape on file in the Chief Clerk's Office)
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