BILL ANALYSIS                                                                                                                                                                                                    Ó







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              A
                             2011-2012 Regular Session               B

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          AB 1445 (Mitchell)                                         5
          As Amended May 17, 2012 
          Hearing date:  June 12, 2012
          Penal Code
          SM:mc

                              COUNTY INMATE WELFARE FUNDS  

                                       HISTORY

          Source:  Los Angeles County Sheriff's Department

          Prior Legislation: AB 2574 (Emmerson) - Chapter 16, Statutes of 
          2008
                       SB 718 (Scott) - Chapter 251, Statutes of 2007
                       
          Support: California Council of Community Mental Health Agencies; 
                   California Communities United Institute; California 
                   Narcotic Officers' Association; California Peace 
                   Officers' Association; California Police Chiefs 
                   Association; California Public Defenders Association; 
                   California State Sheriffs' Association; Crime Victims 
                   Action Alliance; Drug Policy Alliance; Mental Health 
                   America of California; Napa County Board of 
                   Supervisors; National Association of Social Workers, 
                   California Chapter; Sacramento County Sheriff's 
                   Department; Ventura County Board of Supervisors

          Opposition:Friends Committee on Legislation; Legal Services for 
          Prisoners with Children

          Assembly Floor Vote:  Ayes  71 - Noes  0





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                                                         AB 1445 (Mitchell)
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                                         KEY ISSUE
           
          SHOULD A PILOT PROGRAM BE EXTENDED AND EXPANDED THAT ALLOWS SHERIFFS 
          TO USE INMATE WELFARE FUND MONEY TO PROVIDE REENTRY SERVICES FOR 
          FORMER COUNTY JAIL INMATES?



                                       PURPOSE

          The purpose of this bill is to (1) extend the operative period 
          for two years to January 1, 2015, for a pilot program allowing 
          specified county sheriffs to use inmate welfare fund money to 
          provide former county jail inmates with reentry services upon 
          their release; (2) add the counties of Marin, Napa, San Luis 
          Obispo, and Ventura to this pilot program to extend the period 
          of time in which inmate welfare fund money could be used for 
          these purposes from 14 to 30 days after the inmate's release; 
          and (3) provide that, for purposes of this pilot program, inmate 
          welfare fund money may not be used to provide services required 
          to be provided by the county or sheriff and may not supplant any 
          existing funding for services provided by the county or sheriff.
          
           Existing law  authorizes a county sheriff to establish, maintain 
          and operate a store in connection with the county jail and for 
          this purpose may purchase confectionary, tobacco and tobacco 
          users' supplies, postage and writing materials, and toilet 
          articles and supplies and sell these goods, articles, and 
          supplies for cash to inmates.  (Penal Code § 4025(a).)

           Existing law  provides that the sale prices of the articles 
          offered for sale at the store shall be fixed by the sheriff.  
          Any profit shall be deposited in the inmate welfare fund to be 
          kept in the treasury of the county.  (Penal Code § 4025(b).)

           Existing law  provides that any money, refund, rebate, or 
          commission received from a telephone company or pay telephone 
          provider shall be deposited in the inmate welfare fund when the 




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          money, refund, rebate, or commission is attributable to the use 
          of pay telephones which are primarily used by inmates while 
          incarcerated.  (Penal Code § 4025(d).)

           Existing law  provides that the money and property deposited in 
          the inmate welfare fund shall be expended by the sheriff 
          primarily for the benefit, education, and welfare of the inmates 
          confined within the jail.  Any funds that are not needed for the 
          welfare of the inmates may be expended for the maintenance of 
          county jail facilities.  Maintenance of county jail facilities 
          may include, but is not limited to the salary and benefits of 
          personnel used in the programs to benefit the inmates including, 
          but not limited to, education, drug and alcohol treatment, 
          welfare, library, accounting, and other programs deemed 
          appropriate by the sheriff.  Inmate welfare funds shall not be 
          used to pay required county expenses of confining inmates in a 
          local detention system, such as meals, clothing, housing, or 
          medical services or expenses, except that inmate welfare funds 
          may be used to augment those required county expenses as 
          determined by the sheriff to be in the best interests of 
          inmates.  An itemized report of these expenditures shall be 
          submitted annually to the board of supervisors.  (Penal Code § 
          4025(e).)

           Existing law  authorizes the sheriff to expend money from the 
          inmate welfare fund to provide indigent inmates prior to the 
          release from the county jail or other adult correctional 
          facility under the sheriff's jurisdiction with essential 
          clothing and transportation expenses.  (Penal Code § 4025(i).)

           Existing law  creates a pilot program in the counties of Alameda, 
          Kern, Los Angeles, Orange, Sacramento, San Bernardino, San 
          Francisco, San Diego, Santa Barbara, Santa Clara, and 
          Stanislaus.  In each county the sheriff, or, in the County of 
          Santa Clara, the chief of correction, may expend money from the 
          inmate welfare fund to provide indigent inmates after release 
          from the county jail or any other adult detention facility under 
          the jurisdiction of the sheriff, or, in the County of Santa 
          Clara, the chief of correction, assistance with the reentry 
          process within 14 days after the inmate's release.  The 




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          assistance provided may include, but is not limited to, work 
          placement, counseling, obtaining proper identification, 
          education, and housing.  This pilot program will expire on 
          January 1, 2013, unless extended.

           This bill  would add the counties of Marin, Napa, San Luis 
          Obispo, and Ventura to this pilot program.

           This bill  would extend the period of time in which inmate 
          welfare fund money could be used to provide former county jail 
          inmates with reentry services from 14 days to 30 days from the 
          date of their release.

           This bill  would provide that, for purposes of this pilot 
          program, inmate welfare fund money may not be used to provide 
          services required to be provided by the county or sheriff and 
          may not supplant any existing funding for services provided by 
          the county or sheriff.

           This bill  would extend the sunset on this program two years to 
          January 1, 2015.


                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION
                                      ("ROCA")
          
          In response to the unresolved prison capacity crisis, since 
          early 2007 it has been the policy of the chair of the Senate 
          Committee on Public Safety and the Senate President pro Tem to 
          hold legislative proposals which could further aggravate prison 
          overcrowding through new or expanded felony prosecutions.  Under 
          the resulting policy known as "ROCA" (which stands for 
          "Receivership/Overcrowding Crisis Aggravation"), the Committee 
          has held measures which create a new felony, expand the scope or 
          penalty of an existing felony, or otherwise increase the 
          application of a felony in a manner which could exacerbate the 
          prison overcrowding crisis by expanding the availability or 
          length of prison terms (such as extending the statute of 
          limitations for felonies or constricting statutory parole 
          standards).  In addition, proposed expansions to the 




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          classification of felonies enacted last year by AB 109 (the 2011 
          Public Safety Realignment) which may be punishable in jail and 
          not prison (Penal Code section 1170(h)) would be subject to ROCA 
          because an offender's criminal record could make the offender 
          ineligible for jail and therefore subject to state prison.  
          Under these principles, ROCA has been applied as a 
          content-neutral, provisional measure necessary to ensure that 
          the Legislature does not erode progress towards reducing prison 
          overcrowding by passing legislation which could increase the 
          prison population.  ROCA will continue until prison overcrowding 
          is resolved.

          For the last several years, severe overcrowding in California's 
          prisons has been the focus of evolving and expensive litigation. 
           On June 30, 2005, in a class action lawsuit filed four years 
          earlier, the United States District Court for the Northern 
          District of California established a Receivership to take 
          control of the delivery of medical services to all California 
          state prisoners confined by the California Department of 
          Corrections and Rehabilitation ("CDCR").  In December of 2006, 
          plaintiffs in two federal lawsuits against CDCR sought a 
          court-ordered limit on the prison population pursuant to the 
          federal Prison Litigation Reform Act.  On January 12, 2010, a 
          three-judge federal panel issued an order requiring California 
          to reduce its inmate population to 137.5 percent of design 
          capacity -- a reduction at that time of roughly 40,000 inmates 
          -- within two years.  The court stayed implementation of its 
          ruling pending the state's appeal to the U.S. Supreme Court.  

          On May 23, 2011, the United States Supreme Court upheld the 
          decision of the three-judge panel in its entirety, giving 
          California two years from the date of its ruling to reduce its 
          prison population to 137.5 percent of design capacity, subject 
          to the right of the state to seek modifications in appropriate 
          circumstances.  Design capacity is the number of inmates a 
          prison can house based on one inmate per cell, single-level 
          bunks in dormitories, and no beds in places not designed for 
          housing.  Current design capacity in CDCR's 33 institutions is 
          79,650.





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          On January 6, 2012, CDCR announced that California had cut 
          prison overcrowding by more than 11,000 inmates over the last 
          six months, a reduction largely accomplished by the passage of 
          Assembly Bill 109.  Under the prisoner-reduction order, the 
          inmate population in California's 33 prisons must be no more 
          than the following:

                 167 percent of design capacity by December 27, 2011 
               (133,016 inmates);
                 155 percent by June 27, 2012;
                 147 percent by December 27, 2012; and
                 137.5 percent by June 27, 2013.
               
          This bill does not aggravate the prison overcrowding crisis 
          described above under ROCA.


                                      COMMENTS

          1.  Need for This Bill  

          According to the author:

               AB 1445 will extend and expand a pilot program to aid 
               re-entry of inmates released from county facilities 
               that will otherwise sunset January 1, 2013.  This 
               program provides that sheriffs in certain counties may 
               expend monies from their Inmate Welfare Fund to assist 
               released inmates with re-entry for up to 14 days after 
               release.  Post-release assistance has proven to be 
               extremely helpful to assist indigent inmates re-enter 
               society after being incarcerated.  Successful re-entry 
               reduces recidivism rates.

               Furthermore, realignment has placed a new felony 
               population in county jails, and these inmates will be 
               released without any supervision.  To better assist 
               these individuals, AB 1445 will extend the period of 
               assistance from 14 days to 30 days.





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          2.  Use of Inmate Welfare Fund Money for Reentry Services  

          This pilot program was initiated in 2007 at the request of the 
          Los Angeles County Sheriff's Department.  (SB 718 (Scott) - 
          Chapter 251, Statutes of 2007.)  However, the L.A. County 
          Sheriff's Department has informed Committee staff that to date, 
          in Los Angeles County, these funds have not been used for 
          reentry services, as authorized in this pilot program.  This is 
          due to the fact that community based organizations have been 
          willing to provide these re-entry services to county jail 
          inmates in connection with their existing contracts with the 
          Department of Corrections and Rehabilitation (CDCR) to provide 
          these services to state parolees.  Because the contracts with 
          CDCR have ended, Los Angeles County would now use this authority 
          to spend Inmate Welfare Fund money to contract with community 
          based and faith-based organizations to help newly released 
          county jail inmates to obtain housing, identification cards, 
          work placement, counseling, and education.  

          This bill would extend the period of time that these funds could 
          be used from 14 days after an inmate's release to 30 days, and 
          would add language restricting the use of these funds to 
          services that are not required to be provided by the sheriff or 
          the county.

          3.  Sources of Inmate Welfare Fund Money and Its Permissible Uses  

          Reentry services are essential to helping inmates reestablish 
          themselves in the community, and stabilizing inmates upon 
          release from custody can help reduce the chances of their 
          re-offending.  This bill raises the issue of whether providing 
          certain inmates with re-entry services upon their release is a 
          legitimate use of inmate welfare funds.  The Inmate Welfare Fund 
          (IWF) is generated from (1) any refunds, rebates, or commissions 
          received from a telephone company or pay telephone provider of 
          telephones which are primarily used by inmates while 
          incarcerated; (2) profit from "commissary" items, i.e., 
          confectionery, postage and writing materials, and toiletry 
          articles and supplies sold to inmates in the jail; and (3) 10% 
          of all gross sales of inmate hobbycraft.  (Penal Code § 4025.)  




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          The sheriff is free to establish the cost of commissary items 
          and negotiate the price of phone calls with the providers and 
          any "refund, rebate or commission" that will be payable to the 
          IWF.  Therefore, the sheriff is able to raise rates on these 
          items at will to generate proceeds for the IWF.  According to 
          the Los Angeles County Auditor-Controller, as of June 30, 2010, 
          the net assets of the IWF were over $45 million.<1>  

          Inmates are not allowed to handle money in jail but their 
          families can put money on account with the sheriff for the 
          inmates to use to buy commissary items.  Therefore, in essence, 
          the money in the IWF comes from inmate's families being charged 
          over-market rates for phone calls and commissary items.  This 
          bill raises the question, what are justifiable uses of these 
          funds?

          Proponents argue that despite what might be viewed as a tax on 
          inmate families to raise these funds, re-entry services are a 
          better use of these funds than many expenditures for which 
          sheriffs are already authorized to use IWF funds.  Current law 
          gives sheriffs broad authority in spending IWF funds.  (Penal 
          Code § 4025(e).)  "The money and property deposited in the 
          inmate welfare fund shall be expended by the sheriff primarily 
          for the benefit, education, and welfare of the inmates confined 
          within the jail.  Any funds that are not needed for the welfare 
          of the inmates may be expended for the maintenance of county 
          jail facilities."  This broad authority has led to questions 
          being raised over use of these funds in Sacramento County and, 
          in other counties, it has led to law suits.  

               "That money is supposed to go for the welfare of the 
               inmates," said Melanie Morgan, who teaches a domestic 
               violence awareness class to inmates as part of the 
               Incarcerated Men's Accountability Program, or IMAP. 


               ----------------------
          <1> County of Los Angeles- Sheriff's Department Inmate Welfare 
          Fund - Financial Statement and Independent Auditor's Report for 
          Year ending June 30, 2010, and transmittal letter to Board of 
          Supervisors dated October 27, 2011, on file with the Committee.



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               California's penal code allows jails to set up stores 
               where inmates can buy items such as cigarettes, 
               writing materials and toiletries.  Profits go to the 
               inmate welfare fund.  The fund is also fed by proceeds 
               from inmates' collect calls - often the commissions 
               paid by telephone companies to the jail.


               The money, according to the penal code, "shall be 
               expended by the sheriff primarily for the benefit, 
               education and welfare of the inmates confined within 
               the jail."


               This fiscal year, the fund totaled $4.8 million.  But 
               its budgeted expenses included $674,000 for security 
               cameras at the main jail, $260,000 for a 
               closed-circuit television system and $175,000 for 
               construction costs at the Rio Cosumnes Correctional 
               Center, according to budget documents.


               James Lewis, chief deputy and the head of corrections, 
               said the use of funds was within "the spirit and 
               letter of the law."


               Sheriff John McGinness said the only people who 
               profited from use of the funds were inmates.  "It 
               unequivocally contributes to the safety of the 
               facility and therefore to the welfare of the inmates 
               housed there," McGinness said.


               But Morgan said the money should have gone to people 
               programs, not mortar and brick.


               "Those kinds of things should be paid for outside with 
               a different source of money," she said.  "That's 




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               playing fast and loose with the intent when the 
               Legislature passed that code section."


               The controversy isn't exclusive to Sacramento.  Grand 
               juries in Orange and Los Angeles counties have 
               questioned how their sheriff's departments used inmate 
               welfare funds.


               A 2005 lawsuit in Santa Clara County accused that 
               county's department of corrections of improperly using 
               the inmate welfare fund for expenses the department 
               should have covered with general fund revenue, 
               according to a copy of the complaint.


               The county settled the suit last year.  It agreed to 
               return $1.5 million to the inmate welfare fund and 
               changed policies to limit its use, according to the 
               settlement agreement.


               "Part of our settlement is that money absolutely 
               cannot be used for security," said Kyra Kazantzis, 
               directing attorney of the Public Interest Law Firm, 
               which represented inmates in the Santa Clara lawsuit.


               Much of the controversy over inmate welfare funds 
               comes from vague wording that dictates their use, 
               Kazantzis said.


               The penal code says, "Any funds that are not needed 
               for the welfare of the inmates may be expended for the 
               maintenance of county jail facilities."


               That leaves too much room for interpretation, 




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               Kazantzis said.


               "It's incredibly poorly drafted," she said.  "If the 
               language was crystal clear, we probably wouldn't have 
               settled.  ?  We were confident enough in the language 
               that we filed a lawsuit."


               The issues in Santa Clara County arose when that 
               county was having serious budget problems, Kazantzis 
               said.


               Similarly, Sacramento County is grappling with a 
               projected general fund shortfall of almost $170 
               million in the fiscal year starting July 1.


               In tough times, sheriff's departments need to find 
               ways to cover costs, McGinness said.


               "I'd clearly accept general fund money if it was 
               available," he said.  "As budgets get more challenged, 
               the potential for creativity is something we have to 
               be real careful about."


               The inmate welfare fund is an important pot of money 
               that should help rehabilitate inmates, not pay for 
               equipment or construction costs, said Mark 
               Throckmorton, director of Manalive-Sacramento Inc., an 
               anti-violence program for inmates and probationers.


               "The programs this fund is intended to provide for 
               greatly increase public safety," Throckmorton said.






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               And it's not taxpayers' money, he added.


               "This is money that literally comes from the inmates 
               and their families," Throckmorton said.


               Morgan said she fears the Sheriff's Department might 
               shutter her IMAP program and HALT, the Housing 
               Alternatives and Living in Transition program at Rio 
               Cosumnes.  The inmate fund pays for HALT and IMAP and 
               other rehabilitation and recreational programs.  The 
               department already shut down the Center for 
               Corrections Alternative Programs last fall because of 
               a state-funding shortfall.


               Sheriff's officials, however, said there are no plans 
                      to shut down Morgan's program or HALT.


               Morgan said she plans to contact the state attorney 
               general's office about the sheriff's use of inmate 
               welfare money.


               "All we really want is someone to look into it," 
               Morgan said.  (Misuse of Fund to Help Inmates Alleged, 
               Sacramento Bee, Mar. 16, 2009, 
               http://www.sacbee.com/302/story/1702175.html.)

          4.  Argument in Support  












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          The California Public Defenders Association states:

               The inmate welfare fund re-entry pilot project 
               operating in 11 counties under Penal Code section 
               4025.5 was created to provide post-release assistance 
               to indigent inmates the areas of work placement, 
               counseling, education, housing and obtaining 
               identification cards.  Such areas are absolutely 
               essential to paving the way for formerly incarcerated 
               persons to become self-sufficient and contributing 
               members of the community.  Helping an indigent inmate 
               obtain an identification card prior to or shortly 
               after release makes smart fiscal sense and will 
               enhance public safety.  The extension of inmate 
               welfare fund use from 14 days post-release to 30 days 
               increases the likelihood of a seamless transition in 
               crucial areas of housing and employment thereby 
               reducing the risk of homelessness. 

               Many job applications and public benefits, including 
               SSI, Medi-Cal and Medi-Caid, as well as CalFRESH, 
               CalWorks and public housing vouchers, all require 
               presentation of a valid California ID in order to 
               process requests.  The process of obtaining an 
               identification card in custody is cumbersome and does 
               not happen on a regular basis prior to release.  Even 
               when forms are filled out properly, the processing of 
               applications for a California ID can take months.  
               Many other applications for identification cards are 
               kicked back months later because a certain space was 
               not filled out or is illegible.  The risk of 
               homelessness is reduced if a formerly imprisoned 
               person is able to present identification when seeking 
               to rent an apartment, reside in a sober living home, 
               or participate in a residential drug treatment 
               program. 

          5.  Argument in Opposition  





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          The Friends Committee on Legislation states:

               While we are very supportive of assisting indigent 
               prisoners with re-entry, we think that funding these 
               services from the Inmate Welfare Fund is 
               inappropriate.  As incarceration first and foremost 
               involves the deprivation of personal liberty, we 
               believe there is a moral and ethical obligation for 
               local jails to fund these essential services.  Monies 
               deposited into the Inmate Welfare Fund derive from the 
               disenfranchised and economically disadvantaged family 
               members of the incarcerated in the form of 
               exorbitantly expensive rates they pay on collect phone 
               calls from their incarcerated loved ones.

               If county Inmate Welfare Funds are enjoying large cash 
               surpluses, we should consider reducing the costs of 
               these collect calls.  Under realignment some local 
               prisoners will be serving lengthy jail sentences.  
               Therefore, there is certain to be considerable need 
               for those modest amenities that make life in jail a 
               little less unbearable.

               AB 1445 presents a slippery slope.  We are in essence 
               privatizing the provision of re-entry services and 
               creating the expectation that the Inmate Welfare Fund 
               is a potential funding source for a whole range of 
               services.


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