Amended in Assembly August 18, 2016

Amended in Assembly August 1, 2016

Amended in Assembly June 27, 2016

Amended in Senate April 6, 2016

Senate Bill No. 1054

Introduced by Senator Pavley

February 16, 2016

An act to amend Section 2085.5 of, and to add Sections 2085.7 and 2085.8 to, the Penal Code, and to amend Section 19280 of the Revenue and Taxation Code, relating to restitution orders.

LEGISLATIVE COUNSEL’S DIGEST

SB 1054, as amended, Pavley. Restitution orders: collection.

(1)  begin delete Existing law, when end delete begin insert Under existing law, if end insert begin insert end insert a prisoner is punished in begin insert state prison or end insert a county jail for a begin delete felony, in any case in which the prisoner end delete begin insert felony and he or she end insert owes a restitution order or fine, begin delete permits end delete the begin insert end insert begin insert Department of Corrections and Rehabilitation or the end insert agency designated by the board of supervisors in the county where the prisoner is begin delete incarcerated to end delete begin insert incarcerated, as appropriate, may end insert deduct a minimum of 20% or the balance owing on the order amount, whichever is less, up to a maximum of 50% from begin insert the prisoner’s wages and trust account or end insert a county jail equivalent of wages and trust account deposits of a prisoner for transfer to the California Victim Compensation begin delete and Government Claims end delete Board. Existing law authorizes the begin insert department to deduct and retain an administrative fee from a prisoner, or the end insert agency to deduct and retain an administrative fee from a prisoner, parolee, or former begin delete prisoner end delete begin insert prisoner, end insert that totals 10% of any amount transferred to the board pursuant to these provisions. Existing law authorizes the collection of restitution fines or restitution orders from a person who has been released from a state prison or county jail and is subject to postrelease community supervision or mandatory supervision, as specified.

This bill would instead allow the begin insert department or the end insert designated agency to deduct and retain an administrative fee begin delete from a prisoner or parolee end delete begin insert as described end insert in an amount that covers the actual administrative cost of collection, not to exceed 10% of the total amount collected pursuant to the above provisions. The bill would authorize the collection of restitution fines or restitution orders, in a manner to be established by the county board of supervisors, by the county agency designated by the board from a person who has been released from a county jail without being subject to postrelease community supervision or mandatory supervision, as specified. The bill would require a county that elects to collect restitution fines and restitution orders pursuant to these provisions to coordinate efforts with the Franchise Tax Board, as specified. The bill would also make technical, nonsubstantive changes to the organization of the provisions.

(2) Existing law, unless the victim of the crime notifies the begin delete Department of Corrections and Rehabilitation end delete begin insert department end insert or county to the contrary, allows the department or county to refer a restitution order to the Franchise Tax Board for collection.

This bill would prohibit the department or county from referring the restitution order to the Franchise Tax Board if a county agency has been designated by the county board of supervisors to collect restitution from individuals who have been sentenced to a county jail for a felony, who are on mandatory supervision, or who are on postrelease community supervision, the designated county agency has an existing collection system and objects to collection by the board, and the designated county agency informs the department or county that it will collect the restitution order. If the crime victim entitled to restitution in the order notifies either the department or the designated county agency with regard to his or her preference of a collecting agency, the bill would require the collection to be performed in accordance with that preference.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 2085.5 of the Penal Code is amended to
read:

2085.5.  

(a)  begin delete In any case in which end delete begin insert If end insert a prisoner owes a restitution
fine imposed pursuant to subdivision (a) of Section 13967 of the
Government Code, as operative prior to September 29, 1994,
subdivision (b) of Section 730.6 of the Welfare and Institutions
Code, or subdivision (b) of Section 1202.4 of this code, the
secretary shall deduct a minimum of 20 percent or the balance
owing on the fine amount, whichever is less, up to a maximum of
50 percent from the wages and trust account deposits of a prisoner,
unless prohibited by federal law, and shall transfer that amount to
the California Victim Compensation Board for deposit in the
Restitution Fund. The amount deducted shall be credited against
the amount owing on the fine. The sentencing court shall be
provided a record of the payments.

(b) (1) If a prisoner is punished by imprisonment in a county
jail pursuant to subdivision (h) of Section 1170 and owes a
restitution fine imposed pursuant to subdivision (a) of Section
13967 of the Government Code, as operative prior to September
29, 1994, subdivision (b) of Section 730.6 of the Welfare and
Institutions Code, or subdivision (b) of Section 1202.4 of this code,
the agency designated by the board of supervisors in a county
where the prisoner is incarcerated is authorized to deduct a
minimum of 20 percent or the balance owing on the fine amount,
whichever is less, up to a maximum of 50 percent from the county
jail equivalent of wages and trust account deposits of a prisoner,
unless prohibited by federal law, and shall transfer that amount to
the California Victim Compensation Board for deposit in the
Restitution Fund. The amount deducted shall be credited against
the amount owing on the fine. The sentencing court shall be
provided a record of the payments.

(2) If the board of supervisors designates the county sheriff as
the collecting agency, the board of supervisors shall first obtain
the concurrence of the county sheriff.

(c)  begin delete In any case in which end delete begin insert If end insert a prisoner owes a restitution order
imposed pursuant to subdivision (c) of Section 13967 of the
Government Code, as operative prior to September 29, 1994,
subdivision (h) of Section 730.6 of the Welfare and Institutions
Code, or subdivision (f) of Section 1202.4 of this code, the
secretary shall deduct a minimum of 20 percent or the balance
owing on the order amount, whichever is less, up to a maximum
of 50 percent from the wages and trust account deposits of a
prisoner, unless prohibited by federal law. The secretary shall
transfer that amount to the California Victim Compensation Board
for direct payment to the victim, or payment shall be made to the
Restitution Fund to the extent that the victim has received
assistance pursuant to that program. The sentencing court shall be
provided a record of the payments made to victims and of the
payments deposited to the Restitution Fund pursuant to this
subdivision.

(d) If a prisoner is punished by imprisonment in a county jail
pursuant to subdivision (h) of Section 1170 and owes a restitution
order imposed pursuant to subdivision (c) of Section 13967 of the
Government Code, as operative prior to September 29, 1994,
subdivision (h) of Section 730.6 of the Welfare and Institutions
Code, or subdivision (b) of Section 1202.4 of this code, the agency
designated by the board of supervisors in the county where the
prisoner is incarcerated is authorized to deduct a minimum of 20
percent or the balance owing on the order amount, whichever is
less, up to a maximum of 50 percent from the county jail equivalent
of wages and trust account deposits of a prisoner, unless prohibited
by federal law. The agency shall transfer that amount to the
California Victim Compensation Board for direct payment to the
victim, or payment shall be made to the Restitution Fund to the
extent that the victim has received assistance pursuant to that
program, or may pay the victim directly. The sentencing court
shall be provided a record of the payments made to the victims
and of the payments deposited to the Restitution Fund pursuant to
this subdivision.

(e) Except as provided in Section 2085.8, the secretary shall
deduct and retain from the wages and trust account deposits of a
prisoner, unless prohibited by federal law, an administrative fee
begin delete that totals 10 percent of any amount transferred to the California
Victim Compensation Board end delete begin insert to cover the actual administrative
cost of collection, not to exceed 10 percent of the amount collected end insert
pursuant to subdivision (a) or (c). The secretary shall deposit the
administrative fee moneys in a special deposit account for
reimbursing administrative and support costs of the restitution
program of the department. The secretary, at his or her discretion,
may retain any excess funds in the special deposit account for
future reimbursement of the department’s administrative and
support costs for the restitution program or may transfer all or part
of the excess funds for deposit in the Restitution Fund.

(f) Except as provided in Section 2085.8, if a prisoner is
punished by imprisonment in a county jail pursuant to subdivision
(h) of Section 1170, the agency designated by the board of
supervisors in a county where the prisoner is incarcerated may
deduct and retain from the county jail equivalent of wages and
trust account deposits of a prisoner, unless prohibited by federal
law, an administrative fee to cover the actual administrative cost
of collection, not to exceed 10 percent of the total amount collected,
pursuant to subdivision (b) or (d). The agency shall deposit the
administrative fee moneys in a special deposit account for
reimbursing administrative and support costs of the restitution
program of the agency. The agency may retain any excess funds
in the special deposit account for future reimbursement of the
agency’s administrative and support costs for the restitution
program or may transfer all or part of the excess funds for deposit
in the Restitution Fund.

(g) In any case in which a parolee owes a restitution fine
imposed pursuant to subdivision (a) of Section 13967 of the
Government Code, as operative prior to September 29, 1994,
subdivision (b) of Section 730.6 of the Welfare and Institutions
Code, or subdivision (b) of Section 1202.4 of this code, either the
secretary or, if a prisoner is punished by imprisonment in a county
jail pursuant to subdivision (h) of Section 1170, the agency
designated by the board of supervisors in the county where the
prisoner is incarcerated may collect from the parolee any moneys
owing on the restitution fine amount, unless prohibited by federal
law. The secretary or the agency shall transfer that amount to the
California Victim Compensation Board for deposit in the
Restitution Fund. The amount deducted shall be credited against
the amount owing on the fine. The sentencing court shall be
provided a record of the payments.

(h) In any case in which a parolee owes a direct order of
restitution, imposed pursuant to subdivision (c) of Section 13967
of the Government Code, as operative prior to September 29, 1994,
subdivision (h) of Section 730.6 of the Welfare and Institutions
Code, or paragraph (3) of subdivision (a) of Section 1202.4, either
the secretary or, if a prisoner is punished by imprisonment in a
county jail pursuant to subdivision (h) of Section 1170, the agency
designated by the board of supervisors in the county where the
prisoner is incarcerated or a local collection program may collect
from the parolee any moneys owing, unless prohibited by federal
law. The secretary or the agency shall transfer that amount to the
California Victim Compensation Board for direct payment to the
victim, or payment shall be made to the Restitution Fund to the
extent that the victim has received assistance pursuant to that
program, or the agency may pay the victim directly. The sentencing
court shall be provided a record of the payments made by the
offender pursuant to this subdivision.

(i) Except as provided in Section 2085.8, either the secretary
or, if a prisoner is punished by imprisonment in a county jail
pursuant to subdivision (h) of Section 1170, the agency designated
by the board of supervisors in the county where the prisoner is
incarcerated may deduct and retain from moneys collected from
parolees an administrative fee to cover the actual administrative
cost of collection, not to exceed 10 percent of the total amount
collected pursuant to subdivision (g) or (h), unless prohibited by
federal law. The secretary or the agency shall deposit the
administrative fee moneys in a special deposit account for
reimbursing administrative and support costs of the department or
agency’s restitution program, as applicable. The secretary, at his
or her discretion, or the agency may retain any excess funds in the
special deposit account for future reimbursement of the
department’s or agency’s administrative and support costs for the
restitution program or may transfer all or part of the excess funds
for deposit in the Restitution Fund.

(j) If a prisoner has both a restitution fine and a restitution order
from the sentencing court, the department shall collect the
restitution order first pursuant to subdivision (c).

(k) If a prisoner is punished by imprisonment in a county jail
pursuant to subdivision (h) of Section 1170 and that prisoner has
both a restitution fine and a restitution order from the sentencing
court, if the agency designated by the board of supervisors in the
county where the prisoner is incarcerated collects the fine and
order, the agency shall collect the restitution order first pursuant
to subdivision (d).

(l) If a parolee has both a restitution fine and a restitution order
from the sentencing court, either the department or, if the prisoner
is punished by imprisonment in a county jail pursuant to
subdivision (h) of Section 1170, the agency designated by the
board of supervisors in the county where the prisoner is
incarcerated may collect the restitution order first, pursuant to
subdivision (h).

(m) If an inmate is housed at an institution that requires food
to be purchased from the institution canteen for unsupervised
overnight visits, and if the money for the purchase of this food is
received from funds other than the inmate’s wages, that money
shall be exempt from restitution deductions. This exemption shall
apply to the actual amount spent on food for the visit up to a
maximum of fifty dollars ($50) for visits that include the inmate
and one visitor, seventy dollars ($70) for visits that include the
inmate and two or three visitors, and eighty dollars ($80) for visits
that include the inmate and four or more visitors.

(n) (1) Amounts transferred to the California Victim
Compensation Board for payment of direct orders of restitution
shall be paid to the victim within 60 days from the date the
restitution revenues are received by the California Victim
Compensation Board. If the restitution payment to a victim is less
than twenty-five dollars ($25), then payment need not be forwarded
to that victim until the payment reaches twenty-five dollars ($25)
or when the victim requests payment of the lesser amount.

(2) If a victim cannot be located, the restitution revenues
received by the California Victim Compensation Board on behalf
of the victim shall be held in trust in the Restitution Fund until the
end of the state fiscal year subsequent to the state fiscal year in
which the funds were deposited or until the time that the victim
has provided current address information, whichever occurs sooner.
Amounts remaining in trust at the end of the specified period of
time shall revert to the Restitution Fund.

(3) (A) A victim failing to provide a current address within the
period of time specified in paragraph (2) may provide
documentation to the department, which shall verify that moneys
were collected on behalf of the victim. Upon receipt of that verified
information from the department, the California Victim
Compensation Board shall transmit the restitution revenues to the
victim in accordance with the provisions of subdivision (c) or (h).

(B) A victim failing to provide a current address within the
period of time specified in paragraph (2) may provide
documentation to the agency designated by the board of supervisors
in the county where the prisoner punished by imprisonment in a
county jail pursuant to subdivision (h) of Section 1170 is
incarcerated, which may verify that moneys were collected on
behalf of the victim. Upon receipt of that verified information from
the agency, the California Victim Compensation Board shall
transmit the restitution revenues to the victim in accordance with
the provisions of subdivision (d) or (h).

SEC. 2.  

Section 2085.7 is added to the Penal Code, to read:

2085.7.  

(a) When a prisoner who owes a restitution fine, or
any portion thereof, is released from the custody of a county jail
facility after completion of a term in custody pursuant to
subparagraph (A) of paragraph (5) of subdivision (h) of Section
1170, he or she has a continuing obligation to pay the restitution
fine in full. The balance of the restitution fine remaining unpaid
after completion of a term in custody pursuant to subparagraph
(A) of paragraph (5) of subdivision (h) of Section 1170 is
enforceable and may be collected, in a manner to be established
by the county board of supervisors, by the department or county
agency designated by the board of supervisors in the county in
which the prisoner is released. If a county elects to collect
restitution fines, the department or county agency designated by
the county board of supervisors shall transfer the amount collected
to the California Victim Compensation begin delete and Government Claims end delete
Board for deposit in the Restitution Fund.

(b) When a prisoner who owes payment for a restitution order,
or any portion thereof, is released from the custody of a county
jail facility after completion of a term in custody pursuant to
subparagraph (A) of paragraph (5) of subdivision (h) of Section
1170, he or she has a continuing obligation to pay the restitution
order in full. The balance of the restitution order remaining unpaid
after completion of a term in custody pursuant to subparagraph
(A) of paragraph (5) of subdivision (h) of Section 1170 is
enforceable and may be collected, in a manner to be established
by the county board of supervisors, by the agency designated by
the county board of supervisors in the county in which the prisoner
is released. If the county elects to collect the restitution order, the
agency designated by the county board of supervisors for collection
shall transfer the collected amount to the California Victim
Compensation begin delete and Government Claims end delete Board for deposit in the
Restitution Fund or may pay the victim directly. The sentencing
court shall be provided a record of payments made to the victim
and of the payments deposited into the Restitution Fund.

(c) The amount of a restitution order or restitution fine that
remains unsatisfied after completion of a term in custody pursuant
to subparagraph (A) of paragraph (5) of subdivision (h) of Section
1170 is to be enforceable by a victim pursuant to Section 1214
until the obligation is satisfied.

(d) Except as provided in Section 2085.8, at its discretion, a
county board of supervisors may impose a fee upon the individual
after completion of a term in custody pursuant to subparagraph
(A) of paragraph (5) of subdivision (h) of Section 1170 to cover
the actual administrative cost of collecting the restitution fine and
the restitution order, in an amount not to exceed 10 percent of the
amount collected, the proceeds of which shall be deposited into
the general fund of the county.

(e) If a county elects to collect both a restitution fine and a
restitution order, the amount owed on the restitution order shall
be collected before the restitution fine.

(f) If a county elects to collect restitution fines and restitution
orders pursuant to this section, the county shall coordinate efforts
with the Franchise Tax Board pursuant to Section 19280 of the
Revenue and Taxation Code.

(g) Pursuant to Section 1214, the county agency selected by a
county board of supervisors to collect restitution fines and
restitution orders may collect restitution fines and restitution orders
after an individual has completed a term in custody pursuant to
subparagraph (A) of paragraph (5) of subdivision (h) of Section
1170.

(h) For purposes of this section, the following definitions shall
apply:

(1) “Restitution fine” means a fine imposed pursuant to
subdivision (a) of Section 13967 of the Government Code, as
operative prior to September 29, 1994, subdivision (b) of Section
730.6 of the Welfare and Institutions Code, or subdivision (b) of
Section 1202.4.

(2) “Restitution order” means an order for restitution to the
victim of a crime imposed pursuant to subdivision (c) of Section
13967 of the Government Code, as operative prior to September
29, 1994, subdivision (h) of Section 730.6 of the Welfare and
Institutions Code, or subdivision (f) of Section 1202.4.

SEC. 3.  

Section 2085.8 is added to the Penal Code, to read:

2085.8.  

(a) Compensatory or punitive damages awarded by
trial or settlement to any inmate, parolee, person placed on
postrelease community supervision pursuant to Section 3451, or
defendant on mandatory supervision imposed pursuant to
subparagraph (B) of paragraph (5) of subdivision (h) of Section
1170 in connection with a civil action brought against a federal,
state, or local jail, prison, or correctional facility, or any official
or agent thereof, shall be paid directly, after payment of reasonable
attorney’s fees and litigation costs approved by the court, to satisfy
any outstanding restitution orders or restitution fines against that
person. The balance of the award shall be forwarded to the payee
after full payment of all outstanding restitution orders and
restitution fines, subject to subdivision (c).

(b) The department shall make all reasonable efforts to notify
the victims of the crime for which that person was convicted
concerning the pending payment of any compensatory or punitive
damages. For any prisoner punished by imprisonment in a county
jail pursuant to subdivision (h) of Section 1170, the agency may
make all reasonable efforts to notify the victims of the crime for
which that person was convicted concerning the pending payment
of any compensatory or punitive damages.

(c) (1) The secretary shall deduct and retain from any prisoner
or parolee settlement or trial award an administrative fee that totals
5 percent of any amount paid from the settlement or award to
satisfy an outstanding restitution order or fine, unless prohibited
by federal law.

(2) The agency may deduct and retain from any settlement or
trial award of a person previously imprisoned in county jail an
administrative fee that totals 5 percent of any amount paid from
the settlement or award to satisfy an outstanding restitution order
or fine, unless prohibited by federal law.

(3) The secretary or the agency shall deposit the administrative
fee moneys in a special deposit account for reimbursing
administrative and support costs of the department’s or agency’s
restitution program, as applicable. The secretary, at his or her
discretion, or the agency may either retain any excess funds in the
special deposit account for future reimbursement of the
department’s or agency’s administrative and support costs for the
restitution program or may transfer all or part of the excess funds
for deposit in the Restitution Fund.

SEC. 4.  

Section 19280 of the Revenue and Taxation Code is
amended to read:

19280.  

(a) (1) (A) Fines, state or local penalties, bail,
forfeitures, restitution fines, restitution orders, or any other amounts
imposed by a juvenile or superior court of the State of California
upon a person or any other entity that are due and payable in an
amount totaling no less than one hundred dollars ($100), in the
aggregate, for criminal offenses, including all offenses involving
a violation of the Vehicle Code, and any amounts due pursuant to
Section 903.1 of the Welfare and Institutions Code may, no sooner
than 90 days after payment of that amount becomes delinquent,
be referred by the juvenile or superior court, the county, or the
state to the Franchise Tax Board for collection under guidelines
prescribed by the Franchise Tax Board. Except as specified in
subparagraph (B), the Department of Corrections and Rehabilitation
or county may refer a restitution order to the Franchise Tax Board,
in accordance with subparagraph (B) of paragraph (2), for any
person subject to the restitution order who is or has been under the
jurisdiction of the Department of Corrections and Rehabilitation
or the county.

(B) The Department of Corrections and Rehabilitation or the
county shall not refer a restitution order to the Franchise Tax Board
if a county agency has been designated by the county board of
supervisors to collect restitution from individuals who (i) are
serving a sentence in a county jail pursuant to subdivision (h) of
Section 1170 of the Penal Code, (ii) are on mandatory supervision
pursuant to paragraph (5) of subdivision (h) of Section 1170 of
the Penal Code, or (iii) are on postrelease community supervision
pursuant to Title 2.05 (commencing with Section 3450) of Part 3
of the Penal Code, the designated county agency has an existing
collection system and objects to collection by the Franchise Tax
Board, and the designated county agency informs the Department
of Corrections and Rehabilitation or the county that it will collect
the restitution order.

(C) If the crime victim entitled to restitution in the order notifies
either the Department of Corrections and Rehabilitation or the
designated county agency with regard to his or her preference of
a collecting agency, that preference shall be honored and the
collection shall be performed in accordance with the preference
of the victim.

(2) For purposes of this subdivision:

(A) The amounts referred by the juvenile or superior court, the
county, or the state under this section may include an administrative
fee and any amounts that a government entity may add to the
court-imposed obligation as a result of the underlying offense,
trial, or conviction. For purposes of this article, those amounts
shall be deemed to be imposed by the court.

(B) Restitution orders may be referred to the Franchise Tax
Board only by a government entity, as agreed upon by the
Franchise Tax Board, provided that all of the following apply:

(i) The government entity has the authority to collect on behalf
of the state or the victim.

(ii) The government entity shall be responsible for distributing
the restitution order collections, as appropriate.

(iii) The government entity shall ensure, in making the referrals
and distributions, that it coordinates with any other related
collection activities that may occur by superior courts, counties,
or other state agencies.

(iv) The government entity shall ensure compliance with laws
relating to the reimbursement of the Restitution Fund.

(C) The Franchise Tax Board shall establish criteria for referral
that shall include setting forth a minimum dollar amount subject
to referral and collection.

(b) The Franchise Tax Board, in conjunction with the Judicial
Council, shall seek whatever additional resources are needed to
accept referrals from all 58 counties or superior courts.

(c) Upon written notice to the debtor from the Franchise Tax
Board, any amount referred to the Franchise Tax Board under
subdivision (a) and any interest thereon, including any interest on
the amount referred under subdivision (a) that accrued prior to the
date of referral, shall be treated as final and due and payable to the
State of California, and shall be collected from the debtor by the
Franchise Tax Board in any manner authorized under the law for
collection of a delinquent personal income tax liability, including,
but not limited to, issuance of an order and levy under Article 4
(commencing with Section 706.070) of Chapter 5 of Division 2
of Title 9 of Part 2 of the Code of Civil Procedure in the manner
provided for earnings withholding orders for taxes.

(d) (1) Part 10 (commencing with Section 17001), this part,
Part 10.7 (commencing with Section 21001), and Part 11
(commencing with Section 23001) shall apply to amounts referred
under this article in the same manner and with the same force and
effect and to the full extent as if the language of those laws had
been incorporated in full into this article, except to the extent that
any provision is either inconsistent with this article or is not
relevant to this article.

(2) Any information, information sources, or enforcement
remedies and capabilities available to the court or the state referring
to the amount due described in subdivision (a) shall be available
to the Franchise Tax Board to be used in conjunction with, or
independent of, the information, information sources, or remedies
and capabilities available to the Franchise Tax Board for purposes
of administering Part 10 (commencing with Section 17001), this
part, Part 10.7 (commencing with Section 21001), or Part 11
(commencing with Section 23001).

(e) The activities required to implement and administer this part
shall not interfere with the primary mission of the Franchise Tax
Board to administer Part 10 (commencing with Section 17001)
and Part 11 (commencing with Section 23001).

(f) For amounts referred for collection under subdivision (a),
interest shall accrue at the greater of the rate applicable to the
amount due being collected or the rate provided under Section
19521. When notice of the amount due includes interest and is
mailed to the debtor and the amount is paid within 15 days after
the date of notice, interest shall not be imposed for the period after
the date of notice.

(g) A collection under this article is not a payment of income
taxes imposed under Part 10 (commencing with Section 17001)
or Part 11 (commencing with Section 23001).