BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1054| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SB 1054 Page 2 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).) SB 1054 Page 3 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. SB 1054 Page 4 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. SB 1054 Page 5 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. SB 1054 Page 6 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 **** END **** SB 1054 Page 7