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 SB 733 Page 2 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 SB 733 Page 3 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, SB 733 Page 4 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. SB 733 Page 5 "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 Page 6 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 SB 733 Page 7 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 SB 733 Page 8 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, SB 733 Page 9 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 SB 733 Page 10 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