BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 423
                                                                  Page  1

          Date of Hearing:  April 23, 2013
          Counsel:       Sandy Uribe


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                     AB 423 (Torres) - As Amended: April 9, 2013
           
           
           SUMMARY  :  Requires the California Department of Corrections and  
          Rehabilitation (CDCR) to include in the Strategic Offender  
          Management System, or any other successor system maintained by  
          CDCR, information regarding restitution fines or orders for  
          inmates within its jurisdiction.  Specifically,  this bill  :  

           1)Requires CDCR to include in its computer system information on  
            restitution fines or orders imposed on inmates, including the  
            amount necessary to fulfill a fine or order, the amounts  
            collected, and the status of efforts to collect any remaining  
            balance.

          2)Requires CDCR to utilize that system to ensure that the  
            California Victim Compensation and Government Claims Board  
            (VCGCB) is given accurate and up-to-date information regarding  
            unfulfilled restitution fines and orders.

           EXISTING LAW  : 

          1)Requires the court to order the defendant to pay both a  
            restitution fine and restitution to the victim, if any, in  
            addition to any other penalty provided by law.  [Penal Code  
            Section 1202.4(a)(3).]

          2)Gives the court the discretion to set the amount of the  
            restitution fine commensurate with the seriousness of the  
            offense and other factors, as specified.  [Penal Code Section  
            1202.4(b)(1) and (d).]

          3)Mandates the restitution fine for felony offenses shall not be  
            less than $280 and not more than $10,000.  [Penal Code Section  
            1202.4(b)(1).]

          4)Requires full victim restitution for economic losses  
            determined by the court.  [Penal Code Section 1202.4(f).]








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          5)States that economic losses include, but are not limited to,  
            the following:  full or partial payment for the value of  
            stolen or damaged property; medical expenses; mental health  
            counseling expenses; wages or profits lost due to injury  
            incurred by the victim, and if the victim is a minor, wages or  
            profits lost by the minor's parent, parents, guardian, or  
            guardians, while caring for the injured minor; wages or  
            profits lost by the victim, and if the victim is a minor,  
            wages or profits lost by the minor's parent, parents,  
            guardian, or guardians, due to time spent as a witness or in  
            assisting the police or prosecution; noneconomic losses,  
            including, but not limited to, psychological harm, for felony  
            violations of Penal Code Section 288; interest at the rate of  
            10% per annum; actual and reasonable attorney's fees and other  
            collection costs; relocation expenses incurred by an adult  
            victim; expenses to install or increase residential security;  
            expenses to retrofit a residence or vehicle, or both, to make  
            the residence accessible to or the vehicle operational by the  
            victim, where the victim suffers permanent disability as a  
            direct result of the crime; and expenses to monitor and repair  
            the  credit report of a victim of identity theft.  [Penal Code  
            Section 1202.4(f).]

          6)Requires CDCR to make deductions from an inmate's wages and  
            trust account deposits of 20% or the amount of restitution  
            outstanding, whichever amount is less (and in no case to  
            exceed a 50% deduction), in order to enforce a restitution  
            fine or order.  [Penal Code Section 2085.5(a) and (c).]

          7)Authorizes CDCR to charge a 10% administrative fee from any  
            money that is collected from parolees, and from inmates' wages  
            and trust accounts to satisfy restitution fines and orders;.  
            [Penal Code Section 2085.5(e).]

          8)Exempts money for the purchase of food for unsupervised  
            overnight visits from restitution deductions by CDCR when an  
            inmate is housed at an institution requiring food to be  
            purchased from the institution canteen.  [Penal Code Section  
            2085.5(m).]

          9)Provides for the enforcement of fines, including restitution  
            fines, as specified, and provides that any portion of a  
            restitution order that remains unsatisfied after a defendant  
            is no longer on probation or parole is enforceable by the  








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            victim.  (Penal Code Section 1214.)

          10)Specifies that a restitution order is enforceable as a civil  
            judgment.  [Penal Code Section 1202.4(i).]

          11)Provides that fines, state or local penalties, bail,  
            forfeitures, restitution fines, restitution orders, or any  
            other amounts imposed by the superior court for criminal  
            offenses can be referred to the Franchise Tax Board for  
            collection under guidelines prescribed by the Franchise Tax  
            Board no sooner than 90 days after the payments become  
            delinquent.  (Revenue and Taxation Code Section 19280.)  

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement  :  According to the author, "In 2009 the  
            California Department of Corrections and Rehabilitation (CDCR)  
            announced the award of a $245 million grant in an effort to  
            automate and streamline offender data systems.  The project,  
            known as the Strategic Offender Management System (SOMS), when  
            fully implemented will consolidate existing databases and  
            records, replacing manual paper processes, upgrading and  
            standardizing adult and juvenile data and population  
            management practices to further enhance staff, offender, and  
            public safety.  Partnered with the Trust Restitution,  
            Accounting, and Canteen System (TRACS), the new system will  
            share data that will make tracking of court ordered  
            restitution orders and payments more efficient and effective  
            for victim's, offenders, and offender's family members.

          "With the significant changes associated with AB 109  
            (realignment) that shifted many offenders to local custody,  
            the victim community is increasingly concerned about the  
            ability to collect on the restitution orders and fines imposed  
            on offenders by the courts.  As the state develops creative  
            solutions to address the issue of prison overcrowding, this  
            proposal simply ensures that victims do not bear the financial  
            burden of recovering and are not once again victimized by  
            their offender.   Ultimately, this program will lead to high  
            level continuity of rehabilitation and other programming for  
            offenders when they transition from custody into the  
            community."  
           








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           2)Collection from Inmates  :  CDCR has the authority to collect  
            money for restitution obligations from inmates housed in  
            prisons, or those on active parole under Penal Code Section  
            2085.5.  CDCR also has authority to collect from juvenile  
            housed at Division of Juvenile Justice.  [Welfare and  
            Institutions Code Section 1752.81(a).]  These provisions are  
            akin to garnishment statutes.  They call for deductions from  
            an inmate's wages and trust account deposits of 20% or the  
            amount of restitution outstanding, whichever amount is less,  
            and in no case to exceed a 50% deduction, in order to enforce  
            a restitution fine or order.  [In re Betts (1998) 62  
            Cal.App.4th 821, 825.]  In addition, a 10% fee may be charged  
            by the collecting agency for its administrative costs.

          When an inmate arrives at CDCR, an inmate trust account is  
            established to accommodate monetary deposits and/or  
            withdrawals.  It is also designed to track any and all  
            obligations that an offender may have, such as restitution  
            fines and direct orders.  Deposits into the account generally  
            consist of prison wages and deposits by family and friends.   
            (See CDCR's Web site:   
            .)

          For those offenders who have both a fine and a direct order, the  
            direct order obligation will be satisfied first.  Money  
            collected from the inmate's trust deposits is transferred to  
            the VCGCB for disbursement to the victim.  Disbursements are  
            made in increments of $50 or every six months, whichever is  
            reached first.  (.) 

          In the 2011 calendar year, CDCR collected $22,925,675.73 from  
            inmates and parolees.  Fifty one percent of this amount was  
            comprised of prison fines, whereas five percent was from  
            parolee fines.  Sixteen percent of the total collected was for  
            victim restitution orders from prisoners, and nineteen percent  
            was post-prison victim orders.  Finally, nine percent of the  
            monies collected went to administrative fees for CDCR.   
            ( 
           
           3)SOMS Project  :  SOMS encompasses multiple applications along  
            with a single offender database, allowing CDCR to replace its  
            current paper-based, disparate, and duplicate legacy systems  








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            with a single, strategic, statewide solution capable of  
            supporting all of CDCR's offender management needs.

          SOMS will enable custody staff and other stakeholders to have a  
            real-time situational awareness of offender location and  
            status.  The two primary technological components of the  
            project are the Electronic Records Management System (ERMS)  
            and the Electronic Offender Management Information System  
            (eOMIS).

          The SOMS ERMS project includes the scanning of all offender  
            central fines and uploading them to a central records  
            depository.  Accessibility to the records is provided by an  
            enterprise-wide search and view application.  With offender  
            central files scanned into ERMS, all institutions and various  
            CDCR administrative locations statewide have real-time access  
            to the scanned offender files.  All active female offender  
            files have been scanned into ERMS.  CDCR began scanning male  
            offender files in February 2013.

            The SOMS eOMIS product is a centralized, Web-based  
            application.  This application increases the availability of  
            accurate, complete, and real-time offender information so that  
            CDCR can more efficiently manage inmates.  Full implementation  
            will automate offender processes such as reception center  
            intake, endorsement for transfer, movements, counts,  
            pre-release planning, and calculating pre-release dates.

           4)Enforcement of Restitution Orders and Fines after  
            Incarceration  :  A restitution order and a restitution fine are  
            enforceable as if those orders were civil judgments.  [Penal  
            Code Section 1202.4(i).]  The orders are enforceable  
            immediately and continue to be enforceable by the VCGCB after  
            termination of probation or parole.  [Penal Code Section  
            1214.]  In addition, restitution fines, restitution orders, or  
            any other amounts imposed by the superior court for criminal  
            offenses can be referred to the Franchise Tax Board for  
            collection under guidelines prescribed by the Franchise Tax  
            Board no sooner than 90 days after the payments become  
            delinquent.  (Revenue and Taxation Code Section 19280.)  

          Accordingly, just because an inmate is released from custody  
            does not mean that a victim will be unable to recover  
            outstanding victim restitution or that fines will not be  
            collected.  On the contrary, due to the fact that many inmates  








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            cannot work while they are incarcerated, and that those that  
            can are paid very little, it seems more likely that a criminal  
            defendant will be able to fulfill these obligations after he  
            or she is released and is able to seek employment.

           5)Argument in Support  :   Crime Victims United (the sponsor of  
            this bill) writes, "With the significant changes associated  
            with AB 109 (realignment) that shifted many offenders to local  
            custody and expedited their time served, the victim community  
            is increasingly concerned about the ability to collect on the  
            restitution orders and fines imposed on offenders by the  
            courts.  These offenders are being housed for less time making  
            it difficult to collect restitution to fulfill their  
            obligations prior to their release from custody and oversight.  
             Given the lesser time served by local offenders, the ongoing  
            difficulty of fulfilling restitution obligations of offenders  
            in state prison and the associated solvency impacts on the  
            Victims Restitution Fund, it is more critical than ever to  
            ensure there is a comprehensive system to track restitution  
            fines and direct orders to better assist in the proper  
            collection of these important obligations."

           6)Prior Legislation  :  

             a)   SB 1210 (Lieu), Chapter 762, Statutes of 2012,  
               authorized the agency designated by the board of  
               supervisors in the county of incarceration to deduct 20% to  
               50% from the wages and trust account deposits of a  
               county-jail inmate serving a sentence under realignment and  
               owing a restitution fine, and to transfer that amount to  
               the VCGCB for deposit in the restitution fund.  

             b)   AB 898 (Alejo), Chapter 358, Statutes of 2011, increased  
               the minimum restitution fine incrementally over a three  
               year period from $200 to $300 for a felony conviction and  
               from $100 to $150 for a misdemeanor conviction.

             c)   AB 1505 (La Suer), Chapter 555, Statutes of 2006,  
               required CDCR to collect restitution from inmates and  
               parolees.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           








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          Crime Victims United (Sponsor)
          California District Attorneys Association
          Crime Victims Action Alliance

           Opposition 
           
          None
           

          Analysis Prepared by  :    Sandy Uribe / PUB. S. / (916) 319-3744