BILL ANALYSIS                                                                                                                                                                                                    �







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              A
                             2013-2014 Regular Session               B

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          AB 423 (Torres)                                             
          As Amended: May 13, 2013 
          Hearing date:  June 18, 2013
          Penal Code
          JM:jr

                                    PRISON INMATES:

                      TRACKING PAYMENT OF RESTITUTION AND FINES

                                           
                                       HISTORY

          Source:   Crime Victims United of California

          Prior Legislation: SB 1210 (Lieu) - Chapter 762, Stats. 2012
                       AB 898 (Alejo) - Chapter 358, Stats. 2011
                       AB 1505 (La Suer) - Chapter 555, Stats.  2006
                       
          Support:  Crime Victims United (Sponsor); California District  
          Attorneys Association
                    Crime Victims Action Alliance; California Probation,  
                    Parole and Correctional Association

          Opposition:None known

          Assembly Floor Vote:  Ayes 70 - Noes 0



                                         KEY ISSUE
           
          SHOULD THE DEPARTMENT OF CORRECTIONS AND REHABILITATION USE ITS  




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                                                            AB 423 (Torres)
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          STRATEGIC OFFENDER MANAGEMENT COMPUTER SYSTEM TO TRACK INMATE  
          RESTITUTION FINES AND ORDERS TO INFORM THE VICTIMS COMPENSATION  
          PROGRAM ABOUT UNPAID RESTITUTION ORDERS AND FINES?




                                       PURPOSE

          The purposes of this bill are to 1) require the Department of  
          Corrections and Rehabilitation (CDCR) to include the amounts  
          inmates owe and have paid on direct restitution and restitution  
          fines in the CDCR Strategic Offender Management System (SOMS);   
          and 2) to require CDCR to use SOMS, or a combination of SOMS and  
          the Trust Restitution Accounting Canteen System (TRACS), to  
          inform to the Victims Compensation and Government Claims Board  
          about unpaid orders and fines owed by inmates.

           Existing provisions in the California Constitution  state that  
          all crime victims have the right to seek and secure restitution  
          from the perpetrators of these crimes.  A court must order the  
          defendant to pay restitution in each case.  Where a defendant  
          has been ordered to pay restitution, all money, or property  
          collected from the defendant must be first applied to satisfy  
          restitution orders.  (Cal. Const. Art. 1 � 28, subd.  
          (b)(13)(A)-(C).)
           
          Existing statutory law  requires the court to order the defendant  
          to pay restitution to the victim and a restitution fine, in  
          addition to any other penalty.  (Pen. Code � 1202.4, subd.  
          (a)(3).)

           Existing law  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.  (Pen. Code � 1202.4,  
          subds. (b)(1) and (d).)

           Existing law  mandates the restitution fine for felony offenses  
          shall not be less than $280 and not more than $10,000.  (Pen  
          Code � 1202.4, subd. (b)(1).)




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           Existing law  requires full victim restitution for economic  
          losses determined by the court.  (Pen. Code � 1202.4, subd.  
          (f).)

           Existing law  provides that when a defendant is sentenced to  
          state prison and owes a restitution fine or a restitution order,  
          the California Department of Corrections and Rehabilitation  
          shall deduct from 20% to 50% of the prisoner's wages and trust  
          account funds to satisfy these obligations.  The funds shall be  
          transmitted to the VCGCG for direct payment to a victim, for  
          deposit into the Restitution Fund for payments to qualifying  
          victims, and to reimburse the VCGCB for payments made to  
          victims.  (Pen. Code � 2085.5, subd. (a)-(c).)
           
          Existing law  authorizes CDCR to keep a 10% administrative fee  
          from restitution fines and orders collected from parolees and  
          from inmates' wages and trust accounts.  (Pen. Code � 2085.5,  
          subd. (e).)

           Existing law  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.  (Pen. Code �  
          2085.5, subd. (m).)

           Existing law  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 victim.  (Penal Code � 1214.)

           Existing law  specifies that a restitution order is enforceable  
          as a civil judgment.  (Pen. Code � 1202.4, subd. (i).)

           Existing law  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  




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          Board no sooner than 90 days after the payments become  
          delinquent.  (Rev. & and Tax. Code � 19280.)  
           
          This bill  requires CDCR to include in its Strategic Offender  
          Management [computer] System (SOMS) information on restitution  
          fines or orders imposed on inmates.  This information shall  
          include the amount necessary to fulfill a fine or order, the  
          amounts collected, and the status of efforts to collect any  
          remaining balance.

           This bill  requires CDCR to utilize SOMS, or a combination of  
          SOMS and the Trust Account Restitution Accounting Canteen System  
          (TRACS) 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.

           This bill  provides that the requirements for tracking  
          restitution fines and orders shall apply to any successor  
          computer systems used by CDCR.


                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION

          For the last several years, severe overcrowding in California's  
          prisons has been the focus of evolving and expensive litigation  
          relating to conditions of confinement.  On May 23, 2011, the  
          United States Supreme Court ordered California to reduce its  
          prison population to 137.5 percent of design capacity within two  
          years from the date of its ruling, subject to the right of the  
          state to seek modifications in appropriate circumstances.   

          Beginning in early 2007, Senate leadership initiated a policy to  
          hold legislative proposals which could further aggravate the  
          prison overcrowding crisis through new or expanded felony  
          prosecutions.  Under the resulting policy known as "ROCA" (which  
          stands for "Receivership/ Overcrowding Crisis Aggravation"), the  
          Committee held measures which created a new felony, expanded the  
          scope or penalty of an existing felony, or otherwise increased  
          the application of a felony in a manner which could exacerbate  
          the prison overcrowding crisis.  Under these principles, ROCA  




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          was applied as a content-neutral, provisional measure necessary  
          to ensure that the Legislature did not erode progress towards  
          reducing prison overcrowding by passing legislation which would  
          increase the prison population.  ROCA necessitated many hard and  
          difficult decisions for the Committee.

          In January of 2013, just over a year after the enactment of the  
          historic Public Safety Realignment Act of 2011, the State of  
          California filed court documents seeking to vacate or modify the  
          federal court order issued by the Three-Judge Court three years  
          earlier to reduce the state's prison population to 137.5 percent  
          of design capacity.  The State submitted in part that the, ". .  
          .  population in the State's 33 prisons has been reduced by over  
          24,000 inmates since October 2011 when public safety realignment  
          went into effect, by more than 36,000 inmates compared to the  
          2008 population . . . , and by nearly 42,000 inmates since 2006  
          . . . ."  Plaintiffs, who opposed the state's motion, argue in  
          part that, "California prisons, which currently average 150% of  
          capacity, and reach as high as 185% of capacity at one prison,  
          continue to deliver health care that is constitutionally  
          deficient."  In an order dated January 29, 2013, the federal  
          court granted the state a six-month extension to achieve the  
          137.5 % prisoner population cap by December 31st of this year.  

          In an order dated April 11, 2013, the Three-Judge Court denied  
          the state's motions, and ordered the state of California to  
          "immediately take all steps necessary to comply with this  
          Court's . . . Order . . . requiring defendants to reduce overall  
          prison population to 137.5% design capacity by December 31,  
          2013."         

          The ongoing litigation indicates that prison capacity and  
          related issues concerning conditions of confinement remain  
          unresolved.  However, in light of the real gains in reducing the  
          prison population that have been made, although even greater  
          reductions are required by the court, the Committee will review  
          each ROCA bill with more flexible consideration.  The following  
          questions will inform this consideration:

                 whether a measure erodes realignment;




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                 whether a measure addresses a crime which is directly  
               dangerous to the physical safety of others for which there  
               is no other reasonably appropriate sanction; 
                 whether a bill corrects a constitutional infirmity or  
               legislative drafting error; 
                 whether a measure proposes penalties which are  
               proportionate, and cannot be achieved through any other  
               reasonably appropriate remedy; and
                 whether a bill addresses a major area of public safety  
               or criminal activity for which there is no other  
               reasonable, appropriate remedy.


                                      COMMENTS

          1.  Need for This Bill  

          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 offenders' 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  




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               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 of Direct Restitution and Restitution Fines  
          from Inmates

           CDCR is required to collect money for restitution obligations  
          from inmates housed in prisons, or those on active parole under  
          Penal Code Section 2085.5.  The Division of Juvenile Justice  
          (DJJ) of CDCR is also required to collect restitution and  
          restitution fines from persons housed in DJJ facilities.  (Welf.  
           & Inst. Code � 1752.81, subd. (a).) These provisions are akin  
          to garnishment statutes.  They call for deductions of from 20%  
          to 50% from an inmate's wages and trust account to enforce a  
          restitution fine or order.  (In re Betts (1998) 62 Cal.App.4th  
          821, 825.)  CDCR may retain up to 10% of the money collected as  
          an administrative fee.

          When an inmate arrives at CDCR, a trust account is established  
          for deposits and withdrawals of the inmate's earnings and other  
          funds, typically money deposited by family members and friends.   
          The trust account is also designed to track any and all  
          obligations that an offender may have, such as restitution fines  
          and direct restitution orders. <1>  

          For offenders who have been ordered to pay a fine and a direct  
          restitution order, direct restitution will be satisfied first.   
          Money collected from the inmate's trust deposits is transferred  
          to the Victims Compensation and Government Claims Board (VCGCB)  
          for disbursement to the victim.  Disbursements are made in  
          increments of $50 or every six months, whichever is reached  
          first.<2> 

          In calendar year 2011, 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  
          ---------------------------
          <1>  
          http://www.cdcr.ca.gov/victim_services/restitution_collections.ht 
          ml.
          <2> http://www.cdcr.ca.gov/victim_services/  
          restitution_collections.html.



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          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>  
           
          3.  SOMS - Strategic Offender Management Computer System  

          The Strategic Offender Management System - SOMS - encompasses  
          multiple applications along with a single offender database,  
          allowing CDCR to replace its current paper-based, disparate, and  

          duplicate systems with a single statewide system capable of  
          supporting all of CDCR's offender management needs.<4>

          SOMS will enable custody staff and other stakeholders to have  
          real-time information about an inmate's location and status.<5>   
          The two primary technological components of the project are the  
          Electronic Records Management System (ERMS)<6> and the  
          Electronic Offender Management Information System<7> (eOMIS).

          The 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 eOMIS product is a centralized, Web-based application.  This  
          application increases the availability of accurate, complete,  
          ---------------------------
          <3>  
          http://www.cdcr.ca.gov/victim_services/docs/AnnualCollections14.p 
          df.
          <4> http://www.cdcr.ca.gov/SOMS/index.html.
          <5> http://www.marquisware.com/index.php/california-soms/.
          <6> http://www.cdcr.ca.gov/SOMS/index.html.
          <7>  
          http://www.marquisware.com/index.php/testimonial-view/testimonial 
          -2/.











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          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 direct restitution order or restitution fine is enforceable as  
          though it were a civil or money judgment.  These fines and  
          orders are enforceable immediately and continue to be  
          enforceable by the VCGCB after termination of probation or  
          parole.  (Pen. Code �� 1202.4, subd. (i). and 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.  (Rev. & Tax. Code  
          � 19280.) 


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