BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 542|
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                              UNFINISHED BUSINESS


          Bill No:  SB 542
          Author:   Price (D)
          Amended:  8/20/12
          Vote:     21

           
          PRIOR SENATE VOTES NOT RELEVANT

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    Inmate Welfare Fund

           SOURCE  :     Author


           DIGEST  :    This is a new bill.  The provisions dealing with 
          regulatory boards were deleted in the Assembly.  As amend, 
          this bill expands the list of services for which Inmate 
          Welfare Fund (IWF) money may be spent.  

           ANALYSIS  :    

          Existing Law:  

          1. States that all money in the IWF of the Department of 
             Corrections (DOC) 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.  
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          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 DOC, 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 
             DOC, 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 DOC. 
              

          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 
             DOC for the benefit and welfare as herein defined of all 
             of the inmates of institutions and prisons under the 
             jurisdiction of the DOC.  

          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 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 DOC and shall be 
             available there to any inmate.  

          This bill:  

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          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 DOC.

          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.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes   
          Local:  No

          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.


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           SUPPORT  :   (Verified  8/22/12)

          AFSCME
          California Center of Excellence for Trauma Informed Care
          California Correctional Peace Officers Association
          California Mental Health Planning Council
          California Psychiatric Association
          Life Support Alliance
          Los Angeles County Sheriffs
          Mental Health America
          National Alliance on Mental Illness of California
          National Association of Social Workers


          ARGUMENTS IN SUPPORT  :    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."


          RJG:k  8/22/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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