BILL ANALYSIS                                                                                                                                                                                                    







                      SENATE COMMITTEE ON PUBLIC SAFETY
                             Senator Mark Leno, Chair                A
                             2009-2010 Regular Session               B

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          AB 1847 (Furutani)                                         7
          As Amended May 11, 2010 
          Hearing date:  June 29, 2010
          Penal Code
          JM:mc

                                  RESTITUTION ORDERS  

                                       HISTORY


          Source:  Los Angeles City Attorney

          Prior Legislation: AB 2928 (Spitzer) - Ch. 752, Stats. 2008
                       SB 1685 (Kopp) - Ch. 629, Stats. 1996

          Support:  Association for Los Angeles Deputy Sheriffs; Los  
          Angeles County Probation                                     
          Officers Union; Riverside Sheriffs' Association; Crime Victims  
          United of                                                    
          California; Los Angeles County District Attorney; AFSCME,  
          AFL-CIO    

          Opposition:California Public Defenders Association; California  
          Attorneys for Criminal Justice 

          Assembly Floor Vote:  Ayes 74 - Noes 1


                                        KEY ISSUES
           
          SHOULD A PROSECUTOR, SUBJECT TO COURT APPROVAL, HAVE AUTHORITY TO  
          USE LIEN PROCEDURES, INCLUDING REAL PROPERTY LIENS, TO ENFORCE  




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          RESTITUTION ORDERS?

          SHOULD THE DISTRICT ATTORNEY OR PROBATION OFFICE HAVE AUTHORITY TO  
          ACT AS THE AGENCY RESPONSIBLE FOR COLLECTING RESTITUTION FROM  
          CRIMINAL DEFENDANTS WHERE NO OTHER AGENCY IN THE COUNTY HAS THAT  
          DUTY?


                                       PURPOSE

          The purposes of this bill are to 1) grant authority to a  
          prosecutor, upon court approval, to use lien procedures,  
          including real property liens, against a defendant to enforce  
          restitution orders, as specified; and 2) provide that where  
          there is no county agency responsible for collecting  
          restitution, the district attorney or probation office may carry  
          out those duties.

           Existing provisions in the California Constitution  state that  
          all persons who suffer losses as a result of criminal activity  
          shall have the right to restitution from the perpetrators of  
          these crimes.  Restitution shall be ordered in every case unless  
          compelling and extraordinary reasons exist to the contrary.  The  
          Legislature shall adopt provisions to implement this section  
          during the calendar year following adoption of this section.   
          (Ca. Const. Art. 1  28(b).)

           Existing law  states legislative intent that a victim of crime  
          who incurs any economic loss as a result of the commission of a  
          crime shall receive restitution directly from any defendant  
          convicted of that crime.  (Pen. Code  1202.4, subd. (a)(1).)

           Existing law  directs the court to order a defendant to make  
          restitution to the victim or victims of the defendant's crime.   
          The court shall order full restitution for the losses caused by  
          the defendant's crime unless the court finds and states  
          compelling and extraordinary reasons for not doing so.  (Pen.  
          Code  1202.4, subd. (f).)
           
          Existing law  provides that a criminal restitution order shall be  




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          enforceable as though it were a civil judgment.  (Pen. Code   
          1202.4, subd. (i).)  

          Existing law  provides that upon entry of a restitution order the  
          court shall enter a separate "order for income deduction" upon a  
          determination of the defendant's ability to pay.  The  
          determination of the ability to pay may include the defendant's  
          future earning capacity.  The defendant has the burden of  
          demonstrating his or her lack of ability to pay.  (Pen. Code   
          1202.42, subd. (a).)

           Existing law  specifies that the "order for income deduction"  
          shall be stayed until the agency in the county responsible for  
          collection of restitution determines that the defendant has  
          failed to meet his or her obligation under the restitution order  
          and the defendant has not provided the agency with good cause  
          for the failure.  (Pen. Code  1202.42, subd. (b)(1).)  

           Existing law  states that when the agency responsible for the  
          collection of restitution receives information that the  
          defendant has failed to meet his or her obligation under the  
          restitution order, the agency shall request that the defendant  
          provide evidence indicating that timely payments have been made  
          or provide information establishing good cause for the failure.   
          If the defendant fails to either provide the agency with the  
          evidence or fails to establish good cause within five days of  
          the request, the agency shall immediately inform the defendant  
          of that fact, and inform the clerk of the court in order that an  
          income deduction order will be served following a 15-day appeal  
          period.  The defendant may apply for a hearing to contest the  
          lifting of the stay.  (Pen. Code  1202.42, subd. (b)(2).)

           Existing law  specifies that income deduction orders shall direct  
          a payer to deduct from all income due and payable to the  
          defendant the amount required by the court to meet the  
          defendant's obligation.  (Pen. Code  1202.42, subd. (c)(2).) 


           Existing law  specifies that the income deduction order shall be  
          effective as long as the order for restitution upon which it is  




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          based is effective or until further order of the court.  (Pen.  
          Code  1202.42, subd. (d).)  

           Existing law  states when the court orders the income deduction,  
          the court shall furnish to the defendant a statement of his or  
          her rights, remedies, and duties in regard to the income  
          deduction order.  The statement shall state all of the  
          following:

           All fees or interest that will be imposed;
           The total amount of income to be deducted for each pay period;
           That the income deduction order applies to current and  
            subsequent payers and periods of employment;
           That a copy of the income deduction order will be served on  
            the defendant's payer or payers;
           That enforcement of the income deduction order may only be  
            contested on the ground of mistake of fact regarding the  
            amount of restitution owed;
           That the defendant is required to notify the clerk of the  
            court within seven days after changes in the defendant's  
            address, payers, and the addresses of his or her payers; and
           That the court order will be stayed and that a hearing is  
            available.  (Pen. Code  1202.42, subd. (e).)

           Existing law  defines "good cause" for a defendant's failure to  
          meet an obligation or nonpayment as including the following:  

           There has been a substantial change in the defendant's  
            economic circumstances, such as involuntary unemployment,  
            involuntary cost-of-living increases, or costs incurred as the  
            result of medical circumstances or a natural disaster.
           The defendant reasonably believes there has been an  
            administrative error with regard to his or her obligation for  
            payment.
        Any other similar and justifiable reasons.

           This bill  provides for the following procedures for imposition  
          of an income deduction order against a defendant:

           Upon receiving notice that the defendant has failed to comply  




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            with the payment of restitution, the clerk of the court or  
            officer of the agency responsible for collection of  
            restitution shall serve an income deduction order and notice  
            to payer on the defendant's payer unless the defendant has  
            applied for a hearing to contest the enforcement of the income  
            deduction order.
           Service of the order shall be made in compliance and in the  
            manner prescribed for service upon parties in a civil action.
           The defendant may apply for a hearing to contest the  
            enforcement of the income deduction order on the ground of  
            mistake of fact regarding the amount of the restitution owed  
            or on the ground that the defendant has established good cause  
            for nonpayment.  The timely request for a hearing (within 15  
            days of notice) shall stay the service of an income deduction  
            order on all payers of the defendant until a hearing is held  
            and a determination is made as to whether the enforcement of  
            the income deduction order is proper.  (Pen. Code  1202.42,  
            subd. (f).)

           This bill  provides that a court may, upon the request of the  
          prosecuting attorney, order that the prosecuting attorney be  
          given authority to use lien procedures against a defendant,  
          including, but not limited to, a writ of attachment of property.  
           

           This bill  authorizes a prosecuting attorney or a county  
          probation office, if there is no agency in the county  
          responsible for the collection of restitution, to carry out the  
          functions and duties of such an agency specified for collection  
          of restitution.
          

                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION
          
          The severe prison overcrowding problem California has  
          experienced for the last several years has not been solved.  In  
          December of 2006 plaintiffs in two federal lawsuits against the  
          Department of Corrections and Rehabilitation sought a  
          court-ordered limit on the prison population pursuant to the  
          federal Prison Litigation Reform Act.  On January 12, 2010, a  




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          federal three-judge panel issued an order requiring the state to  
          reduce its inmate population to 137.5 percent of design capacity  
          -- a reduction of roughly 40,000 inmates -- within two years.   
          In a prior, related 184-page Opinion and Order dated August 4,  
          2009, that court stated in part:

               "California's correctional system is in a tailspin,"  
               the state's independent oversight agency has reported.  
               . . .  (Jan. 2007 Little Hoover Commission Report,  
               "Solving California's Corrections Crisis: Time Is  
               Running Out").  Tough-on-crime politics have increased  
               the population of California's prisons dramatically  
               while making necessary reforms impossible. . . .  As a  
               result, the state's prisons have become places "of  
               extreme peril to the safety of persons" they house . .  
               .  (Governor Schwarzenegger's Oct. 4, 2006 Prison  
               Overcrowding State of Emergency Declaration), while  
               contributing little to the safety of California's  
               residents . . .   California "spends more on  
               corrections than most countries in the world," but the  
               state "reaps fewer public safety benefits." . . .  .   
               Although California's existing prison system serves  
               neither the public nor the inmates well, the state has  
               for years been unable or unwilling to implement the  
               reforms necessary to reverse its continuing  
               deterioration.  (Some citations omitted.)

               . . .

               The massive 750% increase in the California prison  
               population since the mid-1970s is the result of  
               political decisions made over three decades, including  
               the shift to inflexible determinate sentencing and the  
               passage of harsh mandatory minimum and three-strikes  
               laws, as well as the state's counterproductive parole  
               system.  Unfortunately, as California's prison  
               population has grown, California's political  
               decision-makers have failed to provide the resources  
               and facilities required to meet the additional need  
               for space and for other necessities of prison  




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               existence.  Likewise, although state-appointed experts  
               have repeatedly provided numerous methods by which the  
               state could safely reduce its prison population, their  
               recommendations have been ignored, underfunded, or  
               postponed indefinitely.  The convergence of  
               tough-on-crime policies and an unwillingness to expend  
               the necessary funds to support the population growth  
               has brought California's prisons to the breaking  
               point.  The state of emergency declared by Governor  
               Schwarzenegger almost three years ago continues to  
               this day, California's prisons remain severely  
               overcrowded, and inmates in the California prison  
               system continue to languish without constitutionally  
               adequate medical and mental health care.<1>

          The court stayed implementation of its January 12, 2010, ruling  
          pending the state's appeal of the decision to the U.S. Supreme  
          Court.  On Monday, June 14, 2010, the U.S. Supreme Court agreed  
          to hear the state's appeal in this case.   

           This bill  does not appear to aggravate the prison overcrowding  
          crisis described above.


                                      COMMENTS

          1.  Need for This Bill  

          According to the author:

               Current law establishes a process for income deduction  
               for collection of restitution.  The court must enter  
               an order for income deduction at the same time  
               ----------------------
          <1>  Three Judge Court Opinion and Order, Coleman v.  
          Schwarzenegger, Plata v. Schwarzenegger, in the United States  
          District Courts for the Eastern District of California and the  
          Northern District of California United States District Court  
          composed of three judges pursuant to Section 2284, Title 28  
          United States Code (August 4, 2009).




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               restitution is ordered.  The order for income  
               deduction initially is put on hold to give the  
               defendant an opportunity to make payments on his/her  
               own.  If the defendant fails to meet the obligations  
               of the restitution order, the hold is lifted and  
               income deduction is initiated.  The defendant's  
               employer is instructed to automatically deduct regular  
               payments from the defendant's paychecks in the amount  
               established by the court to meet the restitution  
               obligation.  (Pen. Code  1202.42)

               Under the existing process established by Section   
               1202.42, a county agency determines whether the  
               defendant has failed to meet the restitution  
               obligations.  The agency is responsible for informing  
               the court of the intention to lift the hold on the  
               order for income deduction.  Section 1202.42 refers to  
               "the agency in the county responsible for collection  
               of restitution."  However, in some jurisdictions, no  
               such agency exists or it's not entirely clear what  
               agency bears this responsibility.  

               AB 1847 strengthens existing law by allowing  
               prosecuting attorneys to carry out the functions of  
               the county agency in the income deduction process.   
               For counties with no agency designated to handle  
               restitution, a prosecutor could determine that  
               restitution obligations are not being met and could  
               initiate income deduction.  AB 1847 would also allow  
               prosecutors to pursue lien procedures against a  
               defendant to help the victim collect court ordered  
               restitution in the event that the defendant does not  
               have a regular paycheck subject to wage garnishment.

               AB 1847 would not impact cases where the defendant has  
               no ability to pay.  In those cases, the court will  
               determine the restitution amount and make a finding  
               that the defendant does not have the ability to pay.

               Assembly Bill 1847 helps to ensure that victims  




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               receive the restitution ordered by the court.  It  
               prevents defendants from avoiding restitution  
               obligations because of a disconnect in the process for  
               income deduction.

          2. Income Deduction Orders for Restitution

           Under current law, courts may issue income deduction orders when  
          a defendant is ordered to pay restitution.  Income deduction  
          orders may be used to give notice to the defendant's employers  
          or payers so that the agency responsible for the collection of  
          restitution may garnish the wages of a defendant to pay  
          restitution.

          Income deduction orders include a series of procedural  
          requirements to comply with due process.  Specifically, income  
          deduction orders are issued at the time the defendant is ordered  
          to pay restitution; however, the income deduction order is  
          stayed until the defendant has failed to meet his or her  
          obligations.  At the time the order is issued, the defendant is  
          informed of his or her rights as they pertain to the potential  
          enforcement of the income deduction order.

          When a defendant fails to pay restitution, the agency  
          responsible for collection of the restitution may seek to  
          enforce the income deduction order.  Notice is provided to the  
          defendant that the agency intends to enforce the income  
          deduction order and garnish the wages of the defendant.  The  
          defendant then has 15 days to object to the enforcement of the  
          order and provide "good cause" for failure to pay.

          The defendant is entitled to a hearing before a magistrate to  
          determine whether the agency may garnish his or her wages.  The  
          hearing turns on whether or not the defendant can establish  
          "good cause" for non-payment.  Although the statute does not  
          specifically assign the burden of proof or persuasion in the  
          hearing, it appears that the defendant has the burden of  
          establishing good cause.  The statute directs the magistrate to  
          consider whether or not there has been a substantial change in  
          the defendant's economic circumstances since the order was  




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          issued, such as involuntary unemployment, involuntary  
          cost-of-living increases, or costs incurred as the result of  
          medical circumstances or a natural disaster.  Further, the court  
          may determine whether the defendant reasonably believes there  
          has been an administrative error with regard to his or her  
          obligation for payment.  The court may also look at any other  
          similar and justifiable reasons.  (Pen. Code 1202.42, subd.  
          (g).)

          3.  Role of Prosecutor is to Represent the People and Seek Justice  

          Prosecutors are public officials who have a duty to seek  
          justice.  (Berger v. United States (1935) 295 U.S. 78.)   
          Prosecutors represent the People; they do not represent  
          individual victims.  (Haraguchi v. Superior Court (2008) 43  
          Cal.4th 706.)

          While prosecutors have duty to seek justice, they are advocates  
          in an adversarial system.  The parties to a criminal action are  
          the prosecutor, representing the People of the State of  
          California, and the defendant.  (Dix v. Superior Court (1991) 53  
          Cal.3d 442, 451-452.)  Courts recognize that a prosecutor may  
          have a motivation to seek increased punishment of a defendant  
          once the original judgment is imposed.  Courts thus enforce  
          rules and principles to prevent prosecutor's from pursuing such  
          acts improperly.  (In re Bower (1985) 38 Cal.3d 865, 874-879 - a  
          prosecutor cannot increase charges following a defendant's  
          successful appeal.)  Arguably, this bill could give prosecutors  
          the ability to essentially punish defendants after the court  
          imposed judgment.  It may be difficult for a prosecutor to  
          maintain objectivity in determining whether a defendant -- the  
          prosecutor's adversary in the underlying litigation -- has  
          willfully failed to pay restitution.

          The defendant must request a hearing to contest a determination  
          by the agency tasked with collecting restitution that he or she  
          has willfully failed to pay restitution.  It appears that in the  
          hearing the defendant has the burden of establishing that good  
          cause exists for non-payment.  It can thus be argued that this  
          bill allows one party in an adversarial proceeding (the  




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          prosecutor) to establish a presumption that the other party (the  
          defendant) has willfully failed to comply with court orders. 

          The basic function of the prosecutor is to bring charges against  
          a defendant, to prove those charges and argue for the sentence  
          the prosecutor believes is appropriate.  Judgment, sentencing  
          and punishment are core judicial functions.  The court imposes  
          the sentences, including setting the terms of probation,  
          restitution and other matters.  (People v. Tenorio (1970) 3  
          Cal.3d 89 - functions of court and prosecutor generally,  
          dismissal or charges specifically.)  Having prosecutors monitor  
          and supervise a defendant's payment of restitution could violate  
          the separation of powers between the judicial and executive  
          branches of government.  Further, the prosecutor may have  
          strongly objected to the court's sentence and be motivated to  
          take action against a defendant in regards to sentencing  
          obligations. 



























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          4.  Argument in Support
           
          Crime Victims United of California argues in support of AB 1847:

               AB 1847 would provide that if there is no agency in  
               the county responsible for the collection of  
               restitution, the county probation office or  
               prosecuting attorney may carry out the functions and  
               duties of such an agency as to income deduction  
               orders.  Additionally, if the defendant fails to meet  
                                                                                   obligations under the restitution order and has not  
               provided good cause for failure, the court would be  
               authorized to order the prosecuting attorney to be  
               given authority to use lien procedures to include a  
               writ of attachment of property.

               Crime victims may be unfamiliar with the legal process  
               and may not realize that they must use their own means  
               to collect the civil judgment that is owed to them.   
               Often times, victims will not have the resources to  
               pursue a civil action, and the restitution order may  
               go unpaid.  Prosecutors should have the ability, when  
               appropriate, to directly advocate for methods to  
               ensure a victim receives the restitution ordered by  
               the court.  This should include access to tools such  
               as wage garnishment and writs of attachment. 

          5.  Argument in Opposition  

          The California Public Defenders Association argues in opposition  
          to AB 1847:  

                AB 1847 would provide that where a defendant has  
               failed to comply with a restitution order, the court  
               may authorize the prosecutor to use lien procedures  
               applicable to the defendant, including but not limited  
               to, a writ of attachment of property.  The bill also  
               provides that if there is no agency in the county  
               responsible for the collection of restitution, the  




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               prosecuting attorney may carry out the functions and  
               duties of such an agency in regard to the income  
               deduction orders.  

               This would be the first time that prosecuting agencies  
               are statutorily permitted to take such an active role  
               in collection of restitution.  The only other  
               statutory provision concerning prosecuting agencies  
               and restitution-collection is Penal Code 1202.4,  
               subdivision (h), added effective 1997.  (SB 1685  
               (Kopp) Ch. 629, Stats. 2006.)  That provision does not  
               go as far as AB 1847.  This existing provision only  
               permits the district attorney to "... request an order  
               of examination ... to determine the defendant's  
               financial assets for ... collecting on a restitution  
               order."  
                 
               We are deeply concerned that [this bill] may [give a  
               prosecutor] an incentive to inflate the actual figures  
               of damage or injury.  Collection agencies get paid a  
               percentage of what is collected--the higher the  
               restitution amount, the higher the amount paid to the  
               collection agency.  Accordingly, a clear conflict of  
               interest arises where the prosecutor acts as both  
               arbiter and collector.   

               We are equally concerned regarding direct access to  
               both represented and unrepresented defendants,  
               particularly those still on probation, by the  
               prosecutor.  All forms requiring signature for  
               purposes of restitution determination and collection  
               will most likely be required to be signed under  
               penalty of perjury.  Failure to adequately understand  
               such forms may lead defendants, without benefit of  
               counsel, to be subjected to more serious charges than  
               the original prosecution.  

               Further, nothing in this measure requires defense  
               counsel to be apprised of any communication with  
               defendants by prosecutors, nor does it require that  












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               defense counsel be advised of information requested of  
               or collected from defendants, or of any forms to be  
               signed by Defendants.  Accordingly, these  
               communications may occur with, and this information  
               may be gathered from, defendants who are on active  
               probation.  Yet these contacts occur where defendants  
               have no guarantee of consultation with or advisement  
               by appointed counsel.  We contend this is not only in  
               violation of  a defendant's 6th Amendment right to  
               counsel, and 5th Amendment right against self  
               incrimination, but also, that this may lead to  
               defendants being subject to probation violations.   
               While we appreciate that the bill requires that a  
               defendant be informed of his right to a hearing in the  
               event there is a mistake of fact or good cause for  
               failure to pay, such rights are afforded the defendant  
               after the prosecutor has been in contact with the  
               defendant and has made determinations regarding  
               restitution.


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