BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                UNFINISHED BUSINESS 


          Bill No:  SB 1054
          Author:   Pavley (D) 
          Amended:  8/18/16  
          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

           SENATE FLOOR:  39-0, 4/21/16 (Consent)
           AYES:  Allen, Anderson, Bates, Beall, Berryhill, Block,  
            Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,  
            Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,  
            Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,  
            Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Stone,  
            Vidak, Wieckowski, Wolk
           NO VOTE RECORDED:  Runner

           ASSEMBLY FLOOR:  80-0, 8/23/16 - See last page for vote

           SUBJECT:   Restitution orders:  collection


          SOURCE:    Los Angeles County District Attorney
          
          DIGEST:  This bill 1) authorizes a county agency designated by  
          the board of supervisors to collect restitution fines or  
          restitution orders from a person who has been released from a  
          county jail without being subject to postrelease community  
          supervision or mandatory supervision; 2) directs counties to  
          coordinate collection efforts with the Franchise Tax Board  
          (FTB); 3) authorizes a county collection agency to deduct the  
          actual costs of collection (up to 10%) at the time of  
          collection, not only upon an inmate's release; 4) prohibits the  








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          Department of Corrections and Rehabilitation (CDCR) or a county  
          from referring a restitution order to the FTB if a county agency  
          has been designated to collect restitution, as specified; 5)  
          requires that collection be performed in accordance with the  
          victim's preference; and 6) makes technical and organizational  
          changes in relevant statutory provisions.


          Assembly Amendments limit the administrative fee retained by  
          CDCR for collecting fines and restitution to the actual costs of  
          collection up to 10% of monies collected, rather than an  
          automatic 10% of the monies collected and make technical and  
          organizational changes. 


          ANALYSIS:   


          Existing law:


           1) Authorizes CDCR to collect restitution fines and restitution  
             orders from prisoners.  (Pen. Code, § 2085.5, subds. (a) &  
             (c).) 


           2) Allows the Secretary of CDCR to collect money from parolees  
             with an outstanding balance on a restitution fine or a victim  
             restitution order.  (Pen. Code, § 2085.5, subds. (g) & (h).)


           3) Requires CDCR to withhold an administrative fee totaling 10%  
             of money collected from the prisoner or parolee to be held in  
             a special deposit account for the purposes of reimbursing  
             administrative and support costs of the restitution program.   
             (Pen. Code, § 2085.5, subd. (i).)


           4) Authorizes 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  








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             fine or restitution order.  (Pen. Code, § 2085.5, subds.  
             (b)(1) & (c).)


           5) Allows the agency designated by the board of supervisors in  
             the county of incarceration to withhold an administrative fee  
             totaling 10% of money collected to be held in a special  
             deposit account for the purposes of reimbursing  
             administrative and support costs of the restitution program,  
             as specified.  (Pen. Code, § 2085.5, subd. (i).)


           6) Allows the agency designated by the board of supervisors to  
             collect money from inmates released from jail after serving a  
             sentencing under realignment who has an outstanding balance  
             on a restitution fine or a victim restitution order.  (Pen.  
             Code, § 2085.5, subds. (g) & (h).)


           7) Authorizes the agency designated by the board of supervisors  
             to collect unsatisfied restitutions fines and victim  
             restitution order from persons released on post-release  
             community supervision (PRCS) or mandatory supervision.  (Pen.  
             Code, § 2085.6, subds. (a) & (b).)


           8) Gives the board of supervisors discretion to impose an  
             administrative fee not to exceed 10% of the amount collected,  
             the proceeds of which shall be deposited into the county's  
             general fund.  (Pen. Code, § 2085.6, subd. (d).)


           9) Requires the Judicial Council to adopt guidelines for a  
             comprehensive program concerning the collection of moneys  
             owed for fees, fines, forfeitures, penalties, and assessments  
             imposed by court order.  (Pen. Code, § 1463.010, subd. (a).)


           10)Specifies that a restitution order is enforceable as a civil  
             judgment.  (Pen. Code, § 1202.4, subd. (i).)










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           11)Prioritizes the order in which delinquent court-ordered debt  
             received is to be satisfied. The priorities are a) victim  
             restitution, b) state surcharge, c) restitution fines,  
             penalty assessments, and other fines, with payments made on a  
             proportional basis to the total amount levied for all of  
             these items, and d) state/county/city reimbursements, and  
             special revenue items.  (Pen. Code, § 1203.1d.)


          This bill:


           1) Authorizes the agency designated 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% of monies collected, rather than an automatic 10%  
             of the monies collected.


           2) Authorizes CDCR to retain an administrative fee to cover the  
             actual costs of collection up to 10% of monies collected,  
             rather than an automatic 10% of the monies collected.


           3) 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.


           4) 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.


           5) Provides that the victim entitled to the restitution may  
             designate the agency that will collect the restitution.  










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           6) Makes technical, non-substantive changes.


          Background


          According to the author:


             SB 1054 addresses legal ambiguities in the collection of  
             victim restitution fines from inmates sentenced to  
             county jail pursuant to Penal Code Section 1170(h) and  
             inmates released from state prison to Post-Release  
             Community Supervision (PRCS).  Because of statutory  
             inconsistencies, 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 PC 1170(h) inmates.  In addition, because of an  
             anomaly in current law, an individual on PRCS can be  
             referred to the state Franchise Tax Board for collection  
             of restitution, despite being on local supervision.   
             This dual state-local authority could lead to unfair  
             restitution collection from an individual released to  
             PRCS.  SB 1054 would specify that counties that  
             supervise criminal populations can collect the  
             restitution and related administrative costs and thus  
             help victims receive restitution.  The bill provides  
             fairness in collecting restitution from criminal  
             offenders released to PRCS, who at the present time may  
             be overcharged restitution fines from both the state and  
             the county.


             In 2012, the Legislature authorized the collection of  
             restitution from county jail inmate accounts from  
             prisoners sentenced pursuant to Penal Code section  
             1170(h).  Since that time, there has been confusion  
             regarding the collection of administrative fees by  
             county sheriffs pursuant to this statute.  Because of  
             this confusion, some counties such as Monterey, San  
             Diego and Sacramento, believe that the collection of the  








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             fee is not authorized until the release of the inmate.   
             However, inmates may empty out their account to prevent  
             the county sheriff from collecting their administrative  
             fee upon their release.  The California Department of  
             Corrections and Rehabilitation (CDCR) 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.


             Existing law authorizes the CDCR to refer any former  
             prison inmate to the Franchise Tax Board (FTB) for  
             collection of restitution.  Currently 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 local control.  It is inconsistent with AB  
             109 for the State to continue to collect restitution  
             from an individual who is being supervised at the county  
             level.  Current law could lead to unfair double  
             collection of restitution, hindering the successful  
             reentry of an individual back into the community.


             SB 1054 will resolve these issues to clearly express  
             that a county sheriff can collect the 10% administrative  
             fee at the time restitution is collected on behalf of  
             the victim, 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.


          Because Penal Code Section 2085.5, subdivision (f) states, in  
          part, "Upon release from custody ? the agency is authorized to  
          charge a fee to cover the actual administrative cost," several  
          counties have interpreted this to mean that the administrative  
          fee cannot be collected until the inmate's release.  In fact,  
          this language was intended to give the county agency continuing  








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          authority to collect the administrative fee after the inmate's  
          release.  


          In order to clarify this ambiguity, this bill deletes the  
          confusing language in Penal Code Section 2085.5, subdivision (f)  
          and enacts a statute on collection procedures applicable when an  
          inmate is released from county jail without a supervisory tail.


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

          According to the Assembly Appropriations Committee, minor  
          recoverable costs to collection agencies.  


          SUPPORT:   (Verified8/23/16)


          Los Angeles County District Attorney (source)
          California District Attorneys Association
          California Public Defenders Association
          California State Sheriffs' Association
          Chief Probation Officers Association of California


          OPPOSITION:   (Verified8/23/16)


          None received


           ASSEMBLY FLOOR:  80-0, 8/23/16
           AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth  
            Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,  
            Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim,  
            Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,  








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            Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

          Prepared by: Jerome McGuire / PUB. S. / 
          8/23/16 20:19:21


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