BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 542
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        SENATE THIRD READING
        SB 542 (Price)
        As Amended  August 20, 2012
        Majority vote 

         SENATE VOTE  :34-1  
         
         PUBLIC SAFETY       4-0         APPROPRIATIONS      16-0        
         
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        |Ayes:|Ammiano, Knight, Hagman,  |Ayes:|Gatto, Harkey,            |
        |     |Skinner                   |     |Blumenfield, Bradford,    |
        |     |                          |     |Charles Calderon, Campos, |
        |     |                          |     |Davis, Fuentes, Hall,     |
        |     |                          |     |Hill, Cedillo, Mitchell,  |
        |     |                          |     |Nielsen, Norby, Solorio,  |
        |     |                          |     |Wagner                    |
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         SUMMARY  :  Expands the list of services for which Inmate Welfare Fund 
        (IWF) money may be spent.  Specifically,  this bill  :  

        1)Provides that IWF funds may be utilized for the establishment, 
          maintenance, employment of personnel, for and purchase of items 
          for sale to inmates at canteens maintained at state institutions.

        2)Specifies that IWF funds may be used 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 California Department of Corrections and 
          Rehabilitation.

        3)States that IWF funds may be used for educational programs, hobby 
          and recreational programs, reentry programs and operational 
          expenses of the IWF which may include physical education 
          activities and hobby craft classes, inmate family visiting 
          services, leisure-time activities, and assistance with obtaining 
          photo identification from the Department of Motor Vehicles.

        4)Requires the warden of each institution and stakeholders to meet 
          at least biannually to determine how the IWF funds are to be used 
          in each institution.

         EXISTING LAW  :  








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        1)States that all money in the IWF 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 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.  


        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 IWF 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 IWF 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.  


        3)States that there shall be deposited in the IWF 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.  


        4)Provides that the Department of Finance shall conduct a biennial 
          audit of the IWF to include an audit report which shall summarize 
          expenditures from the fund by major categories.  At the end of 








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          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 shall be placed in each 
          library maintained by the Department of Corrections and shall be 
          available there to any inmate.  

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee, 
        additional annual expenditures from the IWF of about $1 million.

        Virtually the entire IWF is funded by the proceeds of inmate 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.

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

         COMMENTS  :  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 
        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."

        Please see the policy committee for a full discussion of this bill.
         








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        Analysis Prepared by  :    Gabriel Caswell / PUB. S. / (916) 319-3744 
        FN: 0005149