BILL ANALYSIS Ó
SB 542
Page 1
Date of Hearing: June 19, 2012
Counsel: Gabriel Caswell
ASSEMBLY COMMITTEE ON PUBLIC SAFETY
Tom Ammiano, Chair
SB 542 (Price) - As Amended: May 30, 2012
As Proposed to be Amended in Committee
SUMMARY : Expands the scope for which Inmate Welfare Fund (IWF)
money may be spent. Specifically, this bill :
1)Authorizes the use of IWF money for specified reentry
services, recreational supplies, and athletic supplies that
CDCR does not already provide and which CDCR is not required
to provide.
2)Specifies the reentry services for which the fund may be used
as to assist inmates in obtaining or reinstating benefits,
obtaining identification cards, linking inmates to services
related to obtaining housing upon release, providing education
and job training, coordinating contact with family members,
and providing information about how to connect to social
services, legal services, and connecting inmates with outside
community health care providers upon their release from
prison.
3)Requires the warden of each institution and stakeholders to
meet at least biannually to determine how the money is used in
that institution.
4)Specifies that these funds are to be used for inmates in CDCR
facilities.
5)Creates a sunset date of January 1, 2018.
EXISTING LAW :
1)States that all money in the Inmate Welfare Fund of the
Department of Corrections is hereby appropriated for
educational and recreational purposes at the various prison
camps established under this article and shall be expended by
SB 542
Page 2
the director upon warrants drawn upon the State Treasury by
the State Controller after approval of the claims by the
California Victim Compensation and Government Claims Board.
(Penal Code Section 2786.)
2)Provides that all moneys now held for the benefit of prisoners
including that known as the Inmate Canteen Fund of the
California Institution for Men, and the Inmate Welfare Fund of
the California Institution for Women, and the Trust Contingent
Fund of the State Prison at Folsom, and the S.P.L. Commissary,
Canteen Account, Hobby Association, Camp Account, Library
Fund, News Agency of the State Prison at San Quentin, the
Prisoners' Fund, and the Prisoners' Employment Fund, shall be
deposited in the Inmate Welfare Fund of the Department of
Corrections, in the State Treasury, which fund is hereby
created. The money in the fund shall be used for the benefit,
education, and welfare of inmates of prisons and institutions
under the jurisdiction of the Department of Corrections,
including but not limited to the establishment, maintenance,
employment of personnel for, and purchase of items for sale to
inmates at canteens maintained at the state institutions, and
for the establishment, maintenance, employment of personnel
and necessary expenses in connection with the operation of the
hobby shops at institutions under the jurisdiction of the
Department of Corrections. (Penal Code Section 5006.)
3)States that there shall be deposited in the Inmate Welfare
Fund all net proceeds from the operation of canteens and hobby
shops and any moneys which may be assigned to the state prison
by prisoners for deposit in the fund. The moneys in the fund
shall constitute a trust held by the Director of Corrections
for the benefit and welfare as herein defined of all of the
inmates of institutions and prisons under the jurisdiction of
the Department of Corrections. (Penal Code Section 5006.)
4)Provides that the Department of Finance shall conduct a
biennial audit of the Inmate Welfare Fund to include an audit
report which shall summarize expenditures from the fund by
major categories. At the end of each intervening fiscal year,
a statement of operations shall be prepared which shall
contain the same information as would be provided in the
biennial audit. At least one copy of any statement of
SB 542
Page 3
operations or audit report shall be placed in each library
maintained by the Department of Corrections and shall be
available there to any inmate. (Penal Code Section 5006.)
5)States that all moneys now held for the benefit of prisoners
including that known as the Inmate Canteen Fund of the
California Institution for Men, and the Inmate Welfare Fund of
the California Institution for Women, and the Trust Contingent
Fund of the State Prison at Folsom, and the S.P.L. Commissary,
Canteen Account, Hobby Association, Camp Account, Library
Fund, News Agency of the State Prison at San Quentin, the
Prisoners' Fund, and the Prisoners' Employment Fund, shall be
deposited in the Inmate Welfare Fund of the Department of
Corrections, in the State Treasury, which fund is hereby
created. The money in the fund shall be used for the benefit,
education, and welfare of inmates of prisons and institutions
under the jurisdiction of the Department of Corrections,
including but not limited to the establishment, maintenance,
employment of personnel for, and purchase of items for sale to
inmates at canteens maintained at the state institutions, and
for the establishment, maintenance, employment of personnel
and necessary expenses in connection with the operation of the
hobby shops at institutions under the jurisdiction of the
Department of Corrections. (Penal Code Section 5006.1.)
6)There shall be deposited in the Inmate Welfare Fund all net
proceeds from the operation of canteens and hobby shops and
any moneys which may be assigned to the state prison by
prisoners for deposit in the fund. The moneys in the fund
shall constitute a trust held by the Director of Corrections
for the benefit and welfare as herein defined of all of the
inmates of institutions and prisons under the jurisdiction of
the Department of Corrections. (Penal Code Section 5006.1)
7)The Department of Finance shall conduct a biennial audit of
the Inmate Welfare Fund to include an audit report which shall
summarize expenditures from the fund by major categories. At
the end of each intervening fiscal year, a statement of
operations shall be prepared which shall contain the same
information as would be provided in the biennial audit. At
least one copy of any statement of operations or audit report
SB 542
Page 4
shall be placed in each library maintained by the Department
of Corrections and shall be available there to any inmate.
(Penal Code Section 5006.1)
8)States that notwithstanding any provision in Penal Code
Section 5006, money in the Inmate Welfare Fund shall not be
expended to pay charges for any or all of the following
purposes: (Penal Code Section 5006.1)
a) Overtime for staff coverage of special events.
b) Television repair.
c) Athletic and recreation supplies.
d) Original complement of television sets and replacement
of television equipment.
9)The Director of Corrections may invest any money in the Inmate
Welfare Fund that in his opinion is not necessary for
immediate use, with the approval of the Department of Finance,
and interest earned and other increment derived from
investments made pursuant to this section shall be paid into
the Inmate Welfare Fund of the Department of Corrections.
(Penal Code Section 5007)
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's Statement : According to the author, "Senate Bill 542
is reflective of the Author's desire to address the issue of
providing inmates with needed educational, recreational and
re-entry services during incarceration and in preparation for
their release into the community. In the climate of
realignment, the Senator is concerned about the number of
inmates who are released on Post Release Community Supervision
without the life skills that are necessary for them to
successfully navigate their respective communities and avoid
SB 542
Page 5
re-offending. SB 542 would specify that the state IWF be
utilized for specific programs, including education,
recreation and re-entry, in order to support the welfare and
benefit of inmates. This bill will also establish an advisory
group at each state institution to advise the Warden in
identifying priority programs and services to be funded by the
IWF. Utilizing the IWF for education, recreation and re-entry
services ensures that all inmates are directly benefiting from
the monies that their families invest in the IWF during their
incarceration. Additionally, providing quality programs such
as re-entry programs can help to reduce recidivism among
inmates and provide relief to overburdened county legal and
health and human service systems."
2)2011 Audit of the Inmate Welfare Fund : The Department of
Finance, Office of State Audits and Evaluations, performed
this audit as required by sections 5005 and 5006 of the
California Penal Code. The purpose was to audit the
California Department of Corrections and Rehabilitation's
(Department) Combined Balance Sheet and related Statement of
Revenues, Expenses and Changes in Fund Balance of the Inmate
Welfare Fund (Fund) for the fiscal years ended June 30, 2009
and 2010. The audit objectives were to:
a) Express an opinion on the financial statements based on
our audit conducted in accordance with auditing standards
generally accepted in the United States of America and the
standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller
General of the United States.
b) Verify the financial statements were prepared in
conformity with the accounting practices for the Fund as
prescribed by the State of California and the Department,
which comprise a comprehensive basis of accounting other
than Generally Accepted Accounting Principles.
c) As necessary, report on internal control and compliance
weaknesses, and provide recommendations for improving
controls over Fund operations.
3)Audit Results (according to executive summary) :
a) Due to scope limitations, no opinion was issued on the
Combined Balance Sheet (statutory basis) as of June 30,
SB 542
Page 6
2009 and 2010.
b) The Combined Statement of Revenues, Expenses and Changes
in Fund Balance (statutory basis) is fairly stated and
materially correct for the fiscal years ended June 30, 2009
and 2010.
c) Material internal control weaknesses were identified
relating to the Department not performing reconciliations
of the financial statement accounts. In addition,
supporting documentation substantiating certain account
balances was unavailable.
d) Material compliance weaknesses were identified relating
to depreciation of equipment and amortization of intangible
assets as well as the Department's cost allocation
methodology.
e) Suggestions for improving the Fund's oversight and
operations are included in the Findings and Recommendations
section. Recommendations included the following:
i) Ensure monthly reconciliations of all account
balances are performed. Identified variances should be
timely researched and resolved.
ii) Perform a complete reconciliation of the
aforementioned accounts for fiscal year 2008-09 and
2009-10. Identified variances should be timely researched
and adjusted in the accounting records.
iii) Implement a policy to depreciate fixed assets and
amortize intangible assets. Until such policy is
implemented, the Department should obtain an exemption
from the Department of Finance, Fiscal Systems and
Consulting Unit.
4)Argument in Support : According to Mental Health America of
California, "SB 542 seeks to use money in the Inmate Welfare
Fund to provide post release linkage to services for inmates
living with a mental illness to receive mental health and
other stabilizing services. Providing the post release
linkage services proposed in SB 542 will provide much needed
supports for individuals living with a mental illness and will
lead to a decrease in recidivism, which will ultimately save
SB 542
Page 7
county dollars."
5)Argument in Opposition: According to Legal Services for
Prisoners with Children, "while we are supportive of providing
rehabilitative programming and re-entry services to prisoners,
in our estimation SB 542 presents a very slippery slope that
could create the expectation that the provision of these
services is the responsibility of the Inmate Welfare Fund.
This would essentially privatize rehabilitative and re-entry
services with funds that come from the disenfranchised and
economically disadvantaged family members of prisoners.
Family members of the incarcerated send money to their loved
ones trust accounts for the purposes of making canteen
purchases, supporting photographic services, hobby craft and
other modest amenities that make prison life a little less
unbearable."
6)Related Legislation: AB 1445 (Mitchell), deletes the January
1, 2013 sunset date on a program that authorizes the sheriff
in specified counties to expend money from the inmate welfare
fund to provide indigent inmates, after release from county
jails or any other adult detention facilities under the
jurisdiction of the sheriff, with assistance with the re-entry
process. AB 1445 awaits third reading on the Senate floor.
REGISTERED SUPPORT / OPPOSITION :
Support
California Center of Excellence for Trauma Informed Care
California Correctional Peace Officers Association
California Mental Health Planning Council
California Psychiatric Association
Life Support Alliance
Mental Health America of California
National Alliance on Mental Illness of California
National Association of Social Workers
Opposition
Friends Committee on Legislation of California
Legal Services for Prisoners with Children
Analysis Prepared by : Gabriel Caswell / PUB. S. / (916)
319-3744
SB 542
Page 8