BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 733
                                                                  Page  1

          Date of Hearing:   June 15, 2010
          Counsel:        Gabriel Caswell


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                    SB 733 (Leno) - As Amended:  January 26, 2010
           

                                        REVISED
           

          SUMMARY  :  Authorizes the California Victims Compensation and  
          Government Claims Board (CVCGCB) to evaluate applications and  
          award grants totaling up to $3 million, up to $1.7 million per  
          center, to multi-disciplinary trauma recovery centers (TRCs)  
          that provide specified services to and resources for crime  
          victims.    Specifically,  this bill  :  

          1)Requires the following services to be considered for an award  
            grant:  

             a)   Mental health services;

             b)   Community outreach services; and,

             c)   Coordination among medical personnel, mental health care  
               providers, law enforcement and social services.  

          2)Makes codified legislative declarations and findings regarding  
            the importance of providing treatment and services to victims  
            of crimes.    

           EXISTING LAW  :

          1)Requires the CVCGCB to enter into an interagency agreement  
            with the University of California, San Francisco (UCSF), to  
            establish a victims of crime recovery center at the San  
            Francisco General Hospital for the purpose of providing  
            comprehensive and integrated services to victims of crime,  
            subject to conditions set forth by the board.  [Government  
            Code Section 13974.5(a).]  

          2)States legislative intent to provide services to meet the  








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            needs of both victims and witnesses of crime through the  
            funding of local comprehensive centers for victim and witness  
            assistance.  [Penal Code Section 13835(f).]

          3)Finds that although the State of California has a fund for  
            needy victims of violent crimes, and compensation is available  
            for medical expenses, lost income or wages, and rehabilitation  
            costs, the application process may be difficult, complex, and  
            time-consuming, and victims may not be aware that the  
            compensation provisions exist.  [Penal Code Section 13835(f).]

          4)Declares that there is a need to develop methods to reduce the  
            trauma and insensitive treatment that victims and witnesses  
            may experience in the wake of a crime since all too often  
            citizens who become involved with the criminal justice system,  
            either as victims or witnesses to crime, are further  
            victimized by that system.  [Penal Code Section 13835(a).]  

          5)States that when a crime is committed, the chief concern of  
            criminal justice agencies has been apprehending and dealing  
            with the criminal; and that after police leave the scene of  
            the crime, the victim is frequently forgotten.  [Penal Code  
            Section 13835(b).]  

          6)Declares that victims often become isolated and receive little  
            practical advice or necessary care.  [Penal Code Section  
            13835(c).]  

          7)Declares that a large number of victims and witnesses are  
            unaware of both their rights and obligations.  [Penal Code  
            Section 13835(e).]  

          8)Creates the Victims of Crime Program, administered by the  
            CVCGCB, to reimburse victims of crime for the pecuniary losses  
            they suffer as a direct result of criminal acts.   
            Indemnification is made from the Restitution Fund, which is  
            continuously appropriated to the CVCGCB for these purposes.   
            (Government Code Sections 13950 to 13968.)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement  :  According to the author, "At any given  
            time, crime statistics suggest that there are many more  








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            victims of crime in California eligible for services from the  
            CVCGCB than actually seek it out.  Disadvantaged crime victims  
            have an especially difficult time gaining access to the  
            system.  A bureaucratic maze of paperwork effectively denies  
            them assistance and represents an inherent bias in the current  
            system of care.  Victims are required to produce as many as 10  
            supporting documents to establish eligibility before beginning  
            a waiting period - lasting up to three months or more - to  
            find out whether their application for compensation has been  
            accepted.  The goal of the state's victim services, and the  
            obligation of the state, is to serve victims, all victims, not  
            just those savvy enough to navigate the system. 

          "SB 733 offers victims an alternative by providing for the  
            establishment of a grant program within the CVCGCB which would  
            provide TRCs with the funding they need to offer expert  
            medical treatment directly to victims of crime. 

          "The grant program will be administered by the CVCGCB and would  
            fund programs that replicate the victim service model  
            developed at the San Francisco TRC (San Francisco General  
            Hospital/UCSF) which utilizes a multidisciplinary staff to  
            provide direct mental health services and treatment to victims  
            while coordinating services with law enforcement and other  
            social service agencies all under one roof.  This victim  
            service model has received national recognition for its  
            ability to cost effectively meet the special needs of crime  
            victims immediately following their trauma.

          "Unlike California's Victim Compensation Program (VCP), the  
            Trauma Recovery model allows for aggressive outreach to  
            vulnerable populations - those individuals that are most  
            susceptible to becoming victims of crime and also the least  
            likely to benefit from VCP services. 

          "Given the State Auditor's findings in the 2008 audit of the  
            CVCGCB, including a significant decline in payments to  
            victims, increased program costs, unprocessed claims, and  
            consistently poor community outreach, the importance of  
            implementing a sustainable alternative service model cannot be  
            overstated. 

          "By allowing Restitution Funds to flow directly to TRCs through  
            a clear and competitive process, SB 733 takes the first  
            important step toward achieving a more comprehensive,  








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            clinically cost-effective, approach to expanding the  
            availability of treatment services to victims throughout  
            California."

           2)Background  :  According to the background submitted by the  
            author, "As with any serious health issue - cancer, stroke,  
            bodily injury - early treatment is critical for a good  
            outcome.  Unfortunately, the state's current system of victim  
            services achieves the opposite.  Instead of rapid  
            intervention, victims must:  (a) find out on their own that  
            the State offers compensation for certain health and support  
            services and then obtain those services, (b) victims must then  
            navigate a highly bureaucratic paperwork process which  
            requires them to produce as many as ten documents for  
            verifying agencies including birth certificates, police  
            reports, etc., before (c) beginning a waiting period - lasting  
            up to three months or more - to find out whether their  
            application for compensation from the CVCGCB has been  
            accepted.

          "The current fee-for-service approach cannot - by its very  
            design - provide timely support to California's crime victims.

          "The State Auditor confirmed in the 2008 report, 'Victim  
            Compensation and the Government Claims Board:  It has begun  
            improving the Victim Compensation Program, but More Remains to  
            be Done,' that the current system has failed to adequately  
            meet the needs of California's crime victims.

          "  Our Broken System - Facts from the CA State Auditor's Report  :

             a)   "Over a four-year period, CVCGCB decreased the amount of  
               payments distributed to victims by 50% - from $123.9  
               million to $61.6 million 

             b)   "Despite the significant decline in payments, program  
               costs have increased.

             c)   One-in-three victims failed to receive their claim  
               within 30 days, and 23 of the 77 paid bills examined took  
               longer than 90 days to be processed.

             d)   "Many victims are unaware of the existence of support  
               services due to the CVCGCB's consistently poor community  
               outreach.








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            "It's clear we need a different way of doing business.  SB 733  
            offers victims an alternative by authorizing the use of  
            Restitution Fund money for exactly what it was intended for -  
            providing services to crime victims.  

            "By allowing CVCGCB to administer up to $3 million annually  
            from the Restitution Fund for grants to trauma recovery  
            programs that can demonstrate improved treatment and services  
            for crime victims, SB 733 begins to implement a more  
            cost-effective, nationally recognized model that meets the  
            special needs of crime victims immediately following their  
            crime-related trauma."

           3)Condition of the Victims Compensation Fund; Funding for TRCs  :   
            Concerns have been raised about whether TRCs should be funded  
            by the Victims Compensation Fund.  As noted in the author's  
            statement and in the text of this bill, many - if not most -  
            of the services provided by a TRC are eligible for  
            reimbursement from the VCP.  Further, the TRC model arguably  
            provides particularly cost-effective and efficient services.   
            The UCSF TRC model would appear likely to be replicated  
            without undue strain on the Victim Compensation Fund.

          A summary (expressed in millions of dollars) of the condition of  
            the fund (from the 2007 2008 CVCGC report) follows:

          Beginning Fund Balance                                       
            136.2

           Revenue  

          Restitution Fines and Fees                                     
            63.1
          Penalty Assessments                                            
            54.0
          Restitution Orders                                               
            7.0 
          Civil or Criminal Violations                                     
            1.9 
          Liens on Civil Suits                                             
            1.2 
          Federal VOCA Grant                                             
            32.1 
          Miscellaneous Revenue                                            








                                                                 SB 733
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            1.2  

          Subtotal FY 2007-08 Revenue                                  
            160.50

          Total Reserves and FY 2007-08 Revenue                        
            296.70

           Expenditures

           Adjusted Claims Payments                                       
            82.10

          Program Costs:

          Salaries and Benefits                                          
            21.70
          Joint Powers Contracts                                         
            11.10
          Criminal Restitution Compact Contracts                           
            2.90
          Interagency and Other Contracts                                  
            1.80
          Facilities Operations and Pro Rata                               
            3.80
          Data Center and Processing                                       
            4.00
          Operating Expenses                                               
            1.50

          Total Program Costs                                            
            46.80

          Special Appropriations:

          Department of Justice                                            
            6.70
          Office of Emergency Services                                   
            10.20
          Ten-Percent Rebate Program                                       
            5.70
          State Controller's Office                                         
            0.03
          County Special Elections Costs                                   
            2.60  








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          Total Special Appropriations                                   
            25.20

          Total Expenditures                                           
            154.10

          Ending Fund Balance                                          
            142.60

          2008-2009 Transfer to General Fund                          -  
            80.00

           4)Argument in Support  :  

             a)   According to the  California Emergency Nurses Association  
               (CalENA)  , "CalENA members understand and witness the  
               tragedies that befall victims who are admitted to trauma  
               centers.  Services and financial assistance that can  
               address critical needs and provide rehabilitation programs  
               is a much needed resource for victims and their families.  

             "California trauma centers help victims face reality on a  
               daily basis as it pertains to their health conditions.   
               Improving the outreach efforts to educate victims of crime  
               will empower them to become rehabilitated back into society  
               as healthy beings.  When victims understand their rights  
               and the services available to them, they transition back  
               into the workplace at a higher rate, as well as participate  
               with local law enforcement and the District Attorney's  
               office to eliminate crime in their neighborhood and  
               communities.  

             "CalENA is pleased to support you in your effort to establish  
               a grant program that will streamline cost effective  
               intervention programs and offer comprehensible services to  
               victims of crime.  The program will not only provide the  
               victim with medical treatment in a timely fashion but also  
               heal communities and reduce crime."    

             b)   According to the  Los Angeles District Attorney's Office  ,  
               "Los Angeles County, as the largest county in the State,  
               has the greatest need for trauma centers to be available to  
               provide medical assistance, especially emergency  
               assistance, to victims suffering injury from sexual  








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               assault, domestic violence, physical assault, shooting,  
               stabbing and vehicular assault.  The recent closing of the  
               Martin Luther King Medical facility has placed stresses on  
               County's medical.  SB 733 provides an incentive for  
               hospitals to provide trauma services that are much needed  
               and should always be readily available to victims of  
               crime."   
              
           5)Argument in Opposition  :  

             a)   According to the  California Victim Compensation and  
               Government Claims Board (CVCGCB)  , "[t]his bill requires the  
               CVCGCB to administer a grant program supporting trauma  
               centers, which would be funded through future  
               appropriations of up to $3 million per year from the  
               Restitution Fund.  The Restitution Fund will not be in a  
               position to absorb such appropriations in the projectable  
               future and without these appropriations, the bill has no  
               effect.  Factors that contribute to the CVCGCB's oppose  
               position are as follows.  

             "In 2007, the Governor vetoed AB 1669, which would have  
               authorized funds from the Restitution Fund to be used for  
               grants supporting trauma centers, stating that: 'the use of  
               the Restitution Fund to replicate and fund programs of this  
               type presents a significant concern to its ongoing ability  
               to support the compensation of crime victims for which it  
               was established.

             "The Restitution Fund balance at the end of Fiscal Year (FY)  
               07-08 was $133.1 million.  Due to a transfer of $80 million  
               to the General Fund and steadily increasing payouts, the  
               fund balance is projected to be $31 million and the end of  
               FY 09-10 and $6.5 million at the end FY 10-11.  The  
               Restitution Fund projects to be insolvent before the end of  
               FY 11-12.  

             "The Victim Compensation Program paid out $82.1 million to  
               compensate victims in FY 07-08, and payouts for FY 08-09  
               increased to $94 million.  

             "The Restitution Fund provided $3.1 million in FY 06-07 to  
               fund the San Francisco Trauma Recovery Center as a result  
               of AB 50.  Only $106,380 of that $1.3 million was eligible  
               for our annual federal VOCA (Victims of Crime Act) grant,  








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               which matches 60 percent of eligible payouts."   
              
             b)   According to the  California Coalition Against Sexual  
               Assault  , "AB 733 would, upon appropriation of the  
               Legislature, authorize the CVCGCB to administer a $3  
               million grant program for trauma centers.  The funds would  
               be appropriated from the State Restitution Fund, which is  
               the key funding source for compensation paid to victims of  
               violent crime through the California Victim's Compensation  
               Program (VCP).  The Restitution Fund receives the majority  
               of its revenue from fines and penalties paid by criminal  
               offenders.  

             "SB 733 threatens the long-term financial stability of the  
               State Restitution Fund in its attempt to appropriate $3  
               million for grants to trauma centers.  For FY 2010-11, the  
               Restitution Fund is projected to have its lowest  
               end-of-year balance in the several years ($6.5M).  Any  
               future fiscal pressures may jeopardize the fiscal viability  
               of the fund, thereby undermining the original intent to  
               help victims of violent crimes and their families deal with  
               the emotional, physical and financial aftermath of crime.  

             "This fund is essential to victims throughout the state and  
               this time we must join with others in opposing this  
               legislation until the Restitution Fund is restored to a  
               stable balance."   
              
           6)Prior Legislation  :  

             a)   AB 1669 (Leno), of the 2007-08 Legislative Session,  
               would have appropriated $1.5 million for the TRC at the San  
               Francisco General Hospital.  AB 1669 was vetoed.

             b)   AB 50 (Leno), Chapter 884, Statutes of 2006,  
               appropriated $1.3 million for the TRC at the San Francisco  
               General Hospital.
           
          REGISTERED SUPPORT / OPPOSITION :   

           Support 
           
          California Catholic Conference
          California Crime Victims for Alternatives to the Death Penalty 
          California Emergency Nurses Association 








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          California Protective Parents Association 
          City and County of San Francisco 
          City of Albany 
          County of San Bernardino
          Justice for Homicide Victims, Inc. 
          Law Enforcement Chaplaincy-Sacramento 
          Los Angeles District Attorney's Office 
          Northern California Psychiatric Society 
          San Mateo Medical Center 
          One private individual

           Opposition 
           
          California Coalition Against Sexual Assault 
          Crime Victims Action Alliance 
          California Victim Compensation and Government Claims Board 
           

          Analysis Prepared by  :    Gabriel Caswell / PUB. S. / (916)  
          319-3744