BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1054|
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                                      CONSENT 


          Bill No:  SB 1054
          Author:   Pavley (D) 
          Amended:  4/6/16  
          Vote:     21 

           SENATE PUBLIC SAFETY COMMITTEE:  7-0, 4/5/16
           AYES:  Hancock, Anderson, Glazer, Leno, Liu, Monning, Stone

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SUBJECT:   Restitution orders:  collection


          SOURCE:    Author

          DIGEST:   This bill 1) clarifies that county collection entities  
          may deduct an administrative fee for collecting payments for  
          restitution orders and restitution fines from a jail inmate  
          prior to the inmate's release; 2) provides that if a county  
          collection agency objects to the referral, collection of direct  
          restitution from offenders shall not be referred to the  
          Franchise Tax Board, subject to the preference of the victim;  
          and 3) consistently provides that an administrative fee retained  
          by a county entity shall cover the actual costs of collection,  
          to a maximum of 10% of the total.

          ANALYSIS: 
           
          Existing law:

           1) Provides in the California Constitution, that all persons  
             who suffer losses as a result of criminal activity have the  
             right to restitution from the perpetrators of these crimes.   
             Restitution shall be ordered in every case unless compelling  
             and extraordinary reasons exist and the Legislature shall  








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             enact statutes to implement the constitutional restitution  
             provisions. (Cal. Const. Art. 1 § 28 (b).)

           2) States legislative intent that a victim of crime who incurs  
             any economic loss as a result of the commission of a crime  
             shall receive restitution directly from any defendant  
             convicted of that crime.  (Pen. Code § 1202.4, subd. (a)(1).)

           3) Provides that where a defendant is committed to prison and  
             subject to parole, the court shall impose a separate parole  
             restitution fine in the same amount as the restitution fine  
             itself.  This additional parole revocation restitution fine  
             is not subject to penalty assessments, as specified, or a  
             specified state surcharge, and shall be suspended unless the  
             person's parole is revoked.  Parole revocation restitution  
             fine moneys are deposited in the Restitution Fund in the  
             State Treasury.  (Pen. Code § 1202.45, subd. (a) and (c).)

           4) Provides that in every case where a person is convicted of a  
             crime and subject to either postrelease community supervision  
             (Pen. Code § 3451 - PRCS), or mandatory supervision as a  
             felon sentenced to a jail term pursuant to Penal Code Section  
             1170(h)(5), the court shall impose an additional supervision  
             revocation restitution fine and stay that fine until and  
             unless the person's supervision is revoked.  PRCS and  
             mandatory supervision revocation restitution fines are  
             deposited in the Restitution Fund in the State Treasury.   
             (Pen. Code § 1202.45, subd. (b)-(c).)

           5) Provides that where a person on PRCS or mandatory  
             supervision is incarcerated pursuant to a supervision  
             revocation, the person shall pay the fine previously ordered  
             and stayed by the court that shall be collected by the agency  
             designated by the board of supervisors of the county in which  
             the prisoner is incarcerated.  (Pen. Code § 1202.45, subd.  
             (b).)

           6) Provides that any "portion of a [direct] restitution order  
             that remains unsatisfied after a defendant is no longer on  
             probation, parole, mandatory supervision or PRCS is  
             enforceable by the victim" as though the order was a civil  
             judgment.  (Pen. Code § 1214, subd. (b).)








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           7) Provides for the Secretary of the California Department of  
             Corrections and Rehabilitation (CDCR) to make deductions from  
             an inmate's wages and trust account deposits and transferred  
             for deposit in the Restitution Fund where a prisoner owes a  
             restitution fine, as specified.  (Pen. Code § 2085.5.)

           8) Provides that the agency designated by the board of  
             supervisors in the county of incarceration may make  
             deductions from the wages and jail account of an inmate  
             serving a sentenced felony jail term pursuant to Penal Code  
             Section 1170 (h).

           9) Provides that that the agency designated by the board of  
             supervisors in the county of incarceration may collect  
             outstanding restitution orders and restitution fines from  
             persons on PRCS or mandatory supervision.  (Pen. Code §  
             2085.6.)

           10)Provides generally that the entity collecting criminal  
             fines, restitution fines and restitution orders may retain a  
             10 % administrative fee or an administrative fee that covers  
             the cost of collection, up to a maximum of 10%, as specified.  
              (Pen. Code § 2085.5-2085.6.)

           11)Provides that court-ordered restitution fines for criminal  
             offenses and juvenile adjudications may be referred to the  
             Franchise Tax Board (FTB) for collection, as specified.   
             (Rev. and Tax. Code § 19280.)  

          This bill:

           1) Authorizes the agency designated by the county to collect  
             restitution fines and orders from sentenced felony jail  
             inmates to retain an administrative fee to cover the actual  
             costs of collection, up to 10%.

           2) Clarifies that the agency designated by the county to  
             collect restitution fines and orders from sentenced felony  
             jail inmates may retain the administrative fee at the time  
             the restitution order or fine is collected.









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           3) Provides that if a county agency has been designated to  
             collect restitution orders from sentenced felony jail  
             inmates, persons on PRCS or mandatory supervision, and the  
             county agency objects to referral of the order to FTB for  
             collection, neither CDCR nor the county shall refer the order  
             to FTB.  The victim entitled to the restitution may designate  
             the agency that will collect the restitution.  

          Background 
          
          SB 1054 addresses statutory ambiguities in the collection of  
          victim restitution fines from inmates sentenced to jail pursuant  
          to Penal Code Section 1170(h) and inmates released from prison  
          to PRCS.  It is unclear when a county sheriff is authorized to  
          collect a state authorized administrative fee.  Consequently,  
          sheriffs may be unable to collect administrative fees to pay for  
          restitution collection from sentenced 1170 (h) inmates.  In  
          addition, because of an anomaly in current law, an individual on  
          PRCS can be subject to restitution collection by FTB despite  
          being on local supervision.  This dual state-local authority  
          could lead to unfair restitution collection.  SB 1054 specifies  
          that counties that supervise criminal populations can collect  
          the restitution and related administrative costs.  This bill  
          provides fairness in collecting restitution from criminal  
          offenders released to PRCS, who at the present time may be  
          ordered to pay the same restitution fines to the state and the  
          county.      

          In 2012, the Legislature authorized the collection of  
          restitution from accounts of sentenced Penal Code section  
          1170(h) inmates.  Since then, there has been confusion regarding  
          the collection of administrative fees by county sheriffs  
          pursuant to this statute.  Some counties (Monterey, San Diego  
          and Sacramento) believe that the collection of the fee is not  
          authorized until release.  However, inmates may empty out their  
          account to prevent the county sheriff from collecting an  
          administrative fee upon their release.  The California  
          Department of Corrections and Rehabilitation has always  
          interpreted the language to allow for immediate collection of  
          the administrative fee, but not all counties agree. This bill is  
          consistent with recent legislation and clarifies the issue for  
          counties. 








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          CDCR may refer a former prison inmate to the FTB for collection  
          of restitution.  An individual on Post Release Community  
          Supervision (PRCS) can be referred to the FTB, despite the fact  
          that their supervision is local.  AB 109 transferred supervision  
          of inmates to county entities.  It is inconsistent for the State  
          to collect restitution from an individual who is being  
          supervised at the county level.  Current law could lead to  
          unfair double collection, hindering the successful reentry of an  
          individual back into the community. 

          SB 1054 will clearly express that a county sheriff can collect  
          the 10% administrative fee at the time restitution is collected  
          and by amending the Revenue and Tax Code to allow a county that  
          is collecting restitution from an individual on PRCS to have  
          primary authority to do so.  After an individual is released  
          from PRCS the county would then transfer responsibility to the  
          FTB to collect remaining restitution. 

          This bill does not set new policy.  It is largely a technical  
          bill to conform restitution collections procedures to the Public  
          Safety Realignment of 2011 and make administrative fee  
          procedures consistent.  

          Realignment provided for some felons to be supervised locally on  
          PRCS upon release from prison.  In sentencing an inmate to a  
          realignment felony jail term, the court may stay a portion of  
          the sentence and place the person on "mandatory supervision."

          Agencies charged with collecting restitution orders and  
          restitution fines from sentenced felony jail inmates generally  
          may retain an administrative fee of 10% of the amount collected.  
           Agencies charged with collecting restitution orders and  
          restitution fines from persons on PRCS or mandatory supervision  
          may retain an administrative fee that covers the cost of  
          collection up to 10%.  This bill provides that the amount  
          collected as an administrative fee shall cover the actual cost  
          of collection and not exceed 10%.  Further, this bill addresses  
          an apparent inconsistency in the law and clarifies that the  
          administrative fee may be collected at the time the order or  
          fine is collected, not only upon release of the inmate from  
          jail. 








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          This bill also provides that if a county has designated an  
          agency for the collection of restitution orders and the agency  
          has a collection system, the following shall apply:  neither  
          CDCR nor a county shall not refer collection of a restitution  
          order to FTB if the designated agency objects to referral of the  
          order to FTB.  However, the victim may choose which agency shall  
          collect the order.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified  4/18/16)


          California District Attorneys Association
          California Public Defenders Association
          California State Sheriffs' Association
          Los Angeles County District Attorney's Office


          OPPOSITION:   (Verified  4/18/16)


          None received





          Prepared by:Jerome McGuire / PUB. S. /
          4/20/16 16:13:27


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