BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1054| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SB 1054 Page 2 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 SB 1054 Page 3 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).) SB 1054 Page 4 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. SB 1054 Page 5 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 SB 1054 Page 6 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 SB 1054 Page 7 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, SB 1054 Page 8 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 **** END ****