BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 542
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     SB 542 (Price) - As Amended:  June 27, 2012 

          Policy Committee:                             Public 
          SafetyVote:4-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill expands the use of the Department of Corrections and 
          Rehabilitation's (CDCR) Inmate Welfare Fund (IWF). Specifically, 
          this bill:  

          1)Authorizes the use of the IWF, beyond the current statutory 
            authorization for inmate educational, recreational and canteen 
            purposes, to include specified reentry services and 
            recreational and athletic supplies CDCR is not required to 
            provide.  

          2)Specifies the re-entry services for which the fund may be used 
            include obtaining benefits, obtaining identification cards, 
            linking inmates to housing services,  providing education and 
            job training, coordinating contact with family members, and 
            providing information about how to access social services, 
            legal services and medical services connecting inmates with 
            outside community health care providers.

          3)Requires wardens to meet at least biannually with local and/or 
            state inmate advocacy groups and inmate representatives to 
            determine how the IWF would be best used by each prison. 

          4)Sunsets the expanded IWF effective January 1, 2018.  

           FISCAL EFFECT  

          Redirects an unknown amount of the IWF, which totals about $68 
          million as of July 2012, for additional purposes. 

          Virtually the entire IWF is funded by the proceeds of inmate 








                                                                  SB 542
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          canteen sales, largely a result of family financial support. 
          Over the past three years, annual IWF revenues have averaged 
          about $50 million, while annual expenditures have averaged about 
          $49 million. Over the years this differential created what is 
          now a reserve of about $19 million, assuming a reserve of about 
          5% of expenditures. 

          For 2012-13, only $2.1 million in inmate benefits are projected 
          to be funded by the IWF. More than 90% of IWF expenditures 
          involve canteen inventory, personnel services and operating 
          expenses. 

           COMMENTS

          1)Rationale.  According to the author's office this bill is 
            intended to provide additional services to inmates "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 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...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)Practical Fiscal Concerns  . 

             a)   The differential between IWF revenues and expenditures 
               has averaged about $1.5 million over the past three years, 
               which would not provide much in the way of ongoing re-entry 
               services for tens of thousands of inmates. 

             b)   As to the accumulated reserve of about $19 million, this 
               is not an ongoing funding source that can provide ongoing 
               services. This committee may wish to consider whether this 
               reserve should be used for inmate services or for some 
               other one-time need.  








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             c)   IWF monies are proceeds from the self-supporting prison 
               canteens. The relatively small profit margin (which 
               averages less than $300,000 per prison) has historically 
               been used to fund minor costs associated with inmate 
               recreation, such as hobby shops. This committee may wish to 
               consider whether the current IWF allocations should be 
               expanded in a more limited fashion, for example, to include 
               such things as athletic supplies - particularly now that 
               prison gyms are available for use as gyms as a result of 
               realignment - rather than opening up the entire IWF reserve 
               for ongoing state and local responsibilities. 

               This approach would address what has been a relatively 
               minor structural imbalance between IWF revenues and 
               expenditures, which amounts to tens of thousands of dollars 
               per prison, while allowing the Legislature to consider the 
               best use of the current reserve.  

          3)Opposition  . Legal Services for Prisoners with Children contend 
            this bill inappropriately uses inmate-generated canteen funds 
            traditionally used for minor inmate recreational amenities for 
            fundamental state and local re-entry responsibilities. 

            "SB 542 is 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." 

           4)This bill was a March 2012 gut-and-amend in the Assembly  .
           Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081