BILL ANALYSIS                                                                                                                                                                                                    







                      SENATE COMMITTEE ON PUBLIC SAFETY
                           Senator Carole Migden, Chair              A
                             2005-2006 Regular Session               B

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          AB 1022 (Bogh)                                             2
          As Amended June 7, 2006 
          Hearing date:  June 20, 2006
          Penal Code
          SM:mc

                                DIVERSION PROGRAM FEES  

                                       HISTORY

          Source:  Riverside County District Attorney's Office

          Prior Legislation: SB 1108 (Presley) - Chapter 1059, Statutes of  
          1985

          Support: California Peace Officers' Association; California  
          Police Chiefs' Association 

          Opposition:California Attorneys for Criminal Justice

          Assembly Floor Vote:   No longer relevant, this is a new bill as  
          of June 7, 2006  .



                                         KEY ISSUE
           
          SHOULD PERSONS PARTICIPATING IN PRETRIAL DIVERSION FOR WRITING BAD  
          CHECKS BE REQUIRED TO PAY THE COST OF CLASSES REQUIRED AS PART OF  
          THE DIVERSION PROGRAM?







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                                       PURPOSE
          
          The purpose of this bill is to require persons who participate  
          in a pretrial diversion program established by a district  
          attorney's office to pay the cost of any class or classes  
          required to successfully complete the program. 
          

           Existing law  prohibits writing bad checks as follows:

                 Any person who for himself or as the agent or  
               representative of another or as an officer of a  
               corporation, willfully, with intent to defraud, makes or  
               draws or utters or delivers any check, or draft or order  
               upon any bank or depositary, or person, or firm, or  
               corporation, for the payment of money, knowing at the time  
               of such making, drawing, uttering, or delivering that the  
               maker or drawer or the corporation has not sufficient funds  
               in, or credit with said bank or depositary, or person, or  
               firm, or corporation, for the payment of such check, draft,  
               or order and all other checks, drafts, or orders upon such  
               funds then outstanding, in full upon its presentation,  
               although no express representation is made with reference  
               thereto, is punishable by imprisonment in the county jail  
               for not more than one year, or in the state prison for 16  
               month, 2 or 3 years.  (Penal Code section 476a(a).)

                 However, if the total amount of all such checks, drafts,  
               or orders that the defendant is charged with and convicted  
               of making, drawing, or uttering does not exceed $200, the  
               offense is punishable up to one year in the county jail,  
               unless the defendant has been previously convicted of a  
               similar offense, as specified.  (Penal Code section  
               476a(b).)

                 A sheriff's department, police department, or other law  
               enforcement agency may collect a fee from the defendant for  
               investigation, collection, and processing of checks  
               referred to their agency for investigation of alleged  




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               violations of this section or Section 476. 

                 The amount of the fee shall not exceed $25 for each bad  
               check in addition to the amount of any bank charges  
               incurred by the victim as a result of the alleged offense.   
               If the sheriff's department, police department, or other  
               law enforcement agency collects any fee for bank charges  
               incurred by the victim pursuant to this section, that fee  
               shall be paid to the victim for any bank fees the victim  
               may have been assessed.  In no event shall reimbursement of  
               the bank charge to the victim pursuant to this section  
               exceed $10 per check.  (Penal Code section 476a(g).)

           Existing law  provides that upon the adoption of a resolution by  
          the board of supervisors declaring that there are sufficient  
          funds available to fund the program, the district attorney may  
          create within his office a diversion program pursuant to this  
          chapter for persons who write bad checks.  "Writing a bad check"  
          means making, drawing, uttering, or delivering any check or  
          draft upon any bank or depository for the payment of money where  
          there is probable cause to believe there has been a violation of  
          Section 476a.  The program may be conducted by the district  
          attorney or by a private entity under contract with the district  
          attorney.  (Penal Code section 1001.60.) 

           Existing law  provides that the district attorney may refer a bad  
          check case to the diversion program.  Except as provided in  
          Section 1001.64, (see below), this chapter does not limit the  
          power of the district attorney to prosecute bad check  
          complaints.  (Penal Code section 1001.61.)

           Existing law  provides that on receipt of a bad check case, the  
          district attorney shall determine if the case is one which is  
          appropriate to be referred to the bad check diversion program.   
          In determining whether to refer a case to the bad check  
          diversion program, the district attorney shall consider, but is  
          not limited to, all of the following:

                  The amount of the bad check.




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                  If the person has a prior criminal record or has  
                previously been diverted.

                  The number of bad check grievances against the person  
                previously received by the district attorney.

                  Whether there are other bad check grievances currently  
                pending against the person.

                  The strength of the evidence, if any, of intent to  
                defraud the victim.  

          (Penal Code section 1001.62.)

           Existing law  provides that on referral of a bad check case to  
          the diversion program, a notice shall be forwarded by mail to  
          the person alleged to have written the bad check which contains  
          all of the following:

                  The date and amount of the bad check.

                  The name of the payee.

                  The date before which the person must contact the  
                person designated by the district attorney concerning the  
                bad check.

                  A statement of the penalty for issuance of a bad check.

          (Penal Code section 1001.63.)

           Existing law  provides that the district attorney may enter into  
          a written agreement with the person to forego prosecution on the  
          bad check for a period to be determined by the district  
          attorney, not to exceed six months, pending all of the  
          following:

                  Completion of a class or classes conducted by the  




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                district attorney or private entity under contract with  
                the district attorney.

                  Full restitution being made to the victim of the bad  
                check.

                  Full payment of the collection fee, if any, specified  
                in Section 1001.65.

          (Penal Code section 1001.64.)

           Existing law  provides that:

                 A district attorney may collect a fee if his or her  
               office collects and processes a bad check.  The amount of  
               the fee shall not exceed thirty-five dollars ($35) for each  
               bad check in addition to the actual amount of any bank  
               charges incurred by the victim as a result of the offense.   
               (Penal Code section 1001.65(a).) 

                 Notwithstanding subdivision (a) (immediately above),  
               when a criminal complaint is filed in a bad check case  
               after the maker of the check fails to comply with the terms  
               of the bad check diversion program, the court, after  
               conviction, may impose a bad check collection fee for the  
               collection and processing efforts by the district attorney  
               of not more than thirty-five dollars ($35) for each bad  
               check in addition to the actual amount of any bank charges  
               incurred by the victim as a result of the offense, not to  
               exceed one thousand dollars ($1,000) in the aggregate.  The  
               court also may, as a condition of probation, require a  
               defendant to participate in and successfully complete a  
               check writing education class.  If so required, the court  
               shall make inquiry into the financial condition of the  
               defendant and, upon a finding that the defendant is able in  
               whole or part to pay the expense of the education class,  
               the court may order him or her to pay for all or part of  
               that expense.  (Penal Code section 1001.65(b).)





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                 If the district attorney elects to collect any fee for  
               bank charges incurred by the victim pursuant to this  
               section, that fee shall be paid to the victim for any bank  
               fees that the victim may have been assessed.  In no event  
               shall reimbursement of a bank charge to the victim pursuant  
               to subdivision (a) or (b) exceed ten dollars ($10) per  
               check.  (Penal Code section 1001.65(c).)

           Existing law  provides that at no time shall a defendant be  
          required to make an admission of guilt as a prerequisite for  
          placement in a precomplaint diversion program.  (Penal Code  
          section 1001.66.)

           Existing law  provides that no statement, or information procured  
          therefrom, made by the defendant in connection with the  
          determination of his or her eligibility for diversion, and no  
          statement, or information procured therefrom, made by the  
          defendant, subsequent to the granting of diversion or while  
          participating in the program, and no information contained in  
          any report made with respect thereto, and no statement or other  
          information concerning the defendant's participation in the  
          program shall be admissible in any action or proceeding.  (Penal  
          Code section 1001.67.)

           This bill  amends Penal Code section 1001.64 to add the  
          requirement that the person participating in the bad check  
          diversion program make full payment for the class or classes  
          required to complete the diversion agreement as well as a fee if  
          the District Attorney's office collected and processed any bad  
          check, not to exceed $35 per check.


                                      COMMENTS

          1.   Need for This Bill








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          According to the author:

               AB 1022 clarifies existing law.  Penal Code Section  
               1001.60 et seq. enables prosecutors to offer  
               precomplaint diversion to eligible bad check writers  
               believed to be in violation of Penal Code Section  
               476a.  Those defendants who chose to participate in  
               California's bad check diversion programs are required  
               to make full restitution to the victim, to pay various  
               fees and to successfully complete a diversion class.

               The intent of existing law is that all program costs  
               be borne by the participating defendants.  Whether a  
               particular program is operated by a local prosecutor  
               entirely in-house or through a partnership with a  
               private company under contract to administer the  
               program and to teach the diversion classes (as  
               specifically authorized by existing law), established  
               public policy relieves the taxpayer from funding these  
               diversion programs.

               Currently, these programs are being challenged because  
               the existing law does not explicitly spell out that  
               the program costs are to be borne by the participating  
               defendants and not the taxpayers.  AB 1022 is  
               necessary to clarify what has been a fundamental  
               premise upon which these diversion programs have  
               operated for over two decades.  This bill will make it  
               clear that the participating defendants, and not the  
               taxpayers, shall bear the costs of the diversion  
               program including any classes they attend.

          2.   Origin of This Bill  

          This bill has not previously been heard in any committee.  The  
          subject of this bill was previously penalties for child abuse.   
          The bill had failed in this committee and was granted  
          reconsideration when the previous language of the bill was  
          removed and replaced with the bill's current language.  This  




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          bill is also being proposed by a different author than when the  
          bill was heard in its previous incarnation.

          3.   Payment of Reasonable Costs  
           
           The existing statute proposed to be amended by this bill is part  
          of a statutory scheme found at Penal Code sections 1001.60, et  
          seq.  The section which authorizes district attorneys' offices  
          to establish a pretrial diversion program for persons suspected  
          of having written bad checks states as follows with respect to  
          the costs of the program, "Upon the adoption of a resolution by  
          the board of supervisors declaring that there are sufficient  
          funds available to fund the program, the district attorney may  
          create within his office a diversion program pursuant to this  
          chapter for 
          persons who write bad checks."  (Penal Code section 1001.60.)   
          Does the phrase, "to fund the program" include the cost of the  
          classes required of persons participating in the program?  The  
          author argues that it does not.  

          Clearly, the language means, at a minimum, that the county would  
          only be authorized to establish such a diversion program after  
          the county board of supervisors found there were sufficient  
          funds available to pay for the costs of running the program, but  
          the statute is silent on the specific issue of whether the cost  
          of the required classes should be considered part of the costs  
          of running the program.  It may be instructive to note that most  
          diversion programs do require that participants pay for such  
          classes with the important proviso that this requirement is  
          conditioned on the participant's ability to pay, as determined  
          by the court.  (See e.g., Penal Code section 1000.3 (drug  
          diversion); 1000.17 (child abuse and neglect diversion); 1001.15  
          (felony diversion fees); 1001.16 (misdemeanor diversion fees);  
          1001.53 (misdemeanor diversion).)  Under the current language of  
          this bill, the participant would be required to pay whatever  
          costs the District Attorney's office determines for the required  
          classes, regardless of the participant's ability to do so.  

          Failing to include language that conditions the payment  











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          requirement on the participant's ability to pay has profound  
          policy implications because it would establish that where a  
          person is suspected of having committed the offense of writing  
          bad checks, the opportunity to avoid having criminal charges  
          filed will depend, at least in part, on the financial resources  
          of the alleged offender.  Additionally, under the bill, the  
          district attorney would have the authority to require the  
          participant to pay any amount it decides to charge for the  
          classes required to successfully complete the program.  Without  
          any mechanism for participants to seek review of the amount  
          charged for these classes, this creates a situation that is ripe  
          for abuse.  

          A diversion program such as this one, which is made available  
          before any criminal complaint has been filed, presents a  
          different situation that a diversion program which diverts a  
          case out of the criminal justice system at some point after the  
          filing of the complaint.  The difference here is that, where  
          there is no case before a court, there is no easy mechanism to  
          determine the reasonableness of the costs charged and the  
          participant's ability to pay those costs.  Therefore, this  
          determination would have to be made at a hearing to be held in  
          the event the participant is deemed to have failed the program  
          due to the failure to pay the required costs.  The author may  
          wish to consider whether the bill should be amended to provide  
          for a hearing to be held in such circumstances to allow the  
          court to determine what it is reasonable to expect a given  
          participant to pay.

          SHOULD THE BILL BE AMENDED TO PROVIDE THAT PARTICIPANTS IN BAD  
          CHECK DIVERSION PROGRAMS, AS SPECIFIED, BE REQUIRED TO PAY,  
          ACCORDING TO THEIR ABILITY, THE REASONABLE COSTS ASSOCIATED WITH  
          THE REQUIRED CLASSES AND TO PROVIDE FOR A HEARING ON THESE  
          MATTERS IF THE PARTICIPANT IS FOUND TO HAVE FAILED THE PROGRAM  
          BASED ON FAILURE TO PAY THESE COSTS?

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