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 Page 2 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. SB 542 Page 3 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