BILL ANALYSIS                                                                                                                                                                                                    Ó







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              S
                             2011-2012 Regular Session               B

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          SB 542 (Price)                                              
          As Amended August 20, 2012 
          Hearing date:  In accordance with SR 29.10(d)
          Penal Code
          SM:mc


                                  INMATE WELFARE FUND  



                                      COMMENTS


          Please see the attached Senate Floor analysis.  This bill is 
          before the Committee pursuant to Senate Rule 29.10(d).  The 
          Committee, by a majority vote of the membership, may:

             1.   hold the bill; or 
             2.   return the bill to the Senate Floor for consideration of 
               the bill as amended in the Assembly.




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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  :  78-0, 8/23/12 - See last page for vote


           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.  




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           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.  

          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 




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             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:  

          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






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          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.

           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 




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          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."


           ASSEMBLY FLOOR  :  78-0, 8/23/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, 
            Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, 
            Chesbro, Conway, Cook, Davis, Dickinson, Eng, Feuer, Fletcher, 
            Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Garrick, 
            Gatto, Gordon, Gorell, Grove, Hagman, Halderman, Hall, Harkey, 
            Hayashi, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, 
            Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, 
            Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, 
            Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, 
            Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, 
            Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Donnelly, Roger Hernández


          RJG:km  8/24/12   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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