BILL ANALYSIS                                                                                                                                                                                                    







                      SENATE COMMITTEE ON PUBLIC SAFETY
                             Senator Mark Leno, Chair                A
                             2009-2010 Regular Session               B

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          AB 807 (Fuentes)                                            
          As Amended June 1, 2009 
          Hearing date:  July 7, 2009
          Penal Code
          JM:mc

                                 RESTITUTION CENTERS:

                      DIRECT PLACEMENT BY THE SENTENCING COURT  


                                       HISTORY

          Source:  California Public Defenders Association

          Prior Legislation: AB 1478 (Baugh) - Ch. 249, Stats. 2000
                       SB 615 (Maddy) - Ch. 372, Stats. 1995
                       SB 1656 (Maddy) - Ch. 1520, Stats. 1984
                       
          Support: Crime Victims United; California Peace Officers  
                   Association; California Police Chiefs Association

          Opposition:None known

          Assembly Floor Vote:  Ayes 75 - Noes 1


                                      KEY ISSUES
           
          SHOULD THE DEPARTMENT OF CORRECTIONS AND REHABILITATION BE  
          REQUIRED TO REOPEN THE CENTRAL AND THE LA CIENEGA RESTITUTION  
          CENTERS IN LOS ANGELES COUNTY?





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          SHOULD A DEFENDANT WHO OWES A RESTITUTION FINE BE ELIGIBLE FOR  
          PLACEMENT IN A RESTITUTION CENTER?

                                                                (CONTINUED)



          SHOULD DEFENDANTS WHO OWE DIRECT RESTITUTION TO VICTIMS RETAIN  
          PRIORITY FOR PLACEMENT IN RESTITUTION CENTERS?

          SHOULD THE MAXIMUM SENTENCE FOR A PERSON PLACED IN A RESTITUTION  
          CENTER BE EXPANDED FROM 32 MONTHS TO 60 MONTHS?

          SHOULD NUMEROUS FINDINGS CONCERNING THE BENEFITS OF RESTITUTION  
          CENTERS BE STATED?

          SHOULD A DEFENDANT WHO IS COMMITTED TO A RESTITUTION CENTER BY THE  
          COURT BE SENT DIRECTLY TO THE CENTER?

          SHOULD CLARIFYING AMENDMENTS BE MADE TO THE LIST OF CRIMES THAT  
          RENDER A DEFENDANT INELIGIBLE FOR PLACEMENT IN A RESTITUTION CENTER?



                                       PURPOSE

          The purposes of this bill are to 1) require the Department of  
          Corrections and Rehabilitation to reopen the Central Restitution  
          Center and the La Cienega Restitution Center in Los Angeles; 2)  
          allow defendants who owe restitution fines to be placed in  
          restitution centers; 3) provide that defendants who owe direct  
          restitution to victims shall have priority for placement in  
          restitution centers; 4) expand from 32 months to 60 months the  
          maximum sentence a defendant can receive and remain eligible for  
          placement in a restitution center; 5) make findings concerning  
          the benefits of restitution centers; 6) provide that a defendant  
          committed to restitution centers by the court shall be sent  
          directly to the center; and 7) make clarifying changes in the  
          list of crimes that disqualify a defendant from placement in a  
          restitution center.




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                                                           AB 807 (Fuentes)
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           Existing law  authorizes the California Department of Corrections  
          and Rehabilitation ("CDCR") to establish restitution centers for  
          inmates to provide a means for those sentenced to prison to be  
          able to pay their victims' financial restitution, as specified.   
          (Pen. Code  6220 and 6221.)

           Existing law  provides that a defendant is eligible for placement  
          in a restitution center if he or she:
                 has not served a prison term within the five years prior  
               to the present conviction;
                 does not have a criminal history of a conviction for the  
               sale of drugs or for a crime involving violence or sex; 
                 did not receive a sentence of more than 36 months;
                 presents no unacceptable risk to the community; and
                 is employable.  (Pen. Code  6228.)

           Existing law  provides that the court may order the CDCR to place  
          an eligible defendant in a restitution center if the court makes  
          a restitution order or if a restitution agreement is entered  
          into by the victims and the defendant.  (Pen. Code  6227.)

           Existing law  provides that offenders shall perform all labor  
          necessary to maintain the restitution center and meet the  
          offenders' needs, unless the director finds that other persons  
          can better perform a particular task.  The director may employ  
          and pay compensation to offenders to perform work at a center.   
          (Pen. Code  6230, subds. (a)-(b).)

           Existing law  provides: 

                 The offender's wages earned shall be paid directly to  
               the CDCR, less any tax deductions.
                 Wages received by the CDCR shall be used to reimburse  
               the offender for direct employment costs, such as  
               transportation, tools, clothing, meals, union dues, and  
               other employee-mandated costs.  Of the remaining wages:
                  o         one-third goes to the CDCR to pay the costs of  
                    the restitution center;
                  o         one-third first goes to court ordered or  




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                    agreed upon restitution, and then the moneys are paid  
                    to the prosecuting jurisdiction to defray court costs  
                    and attorney fees incurred in prosecution, and then  
                    the moneys are paid to the local jurisdiction for  
                    crime prevention; and
                  o         one-third goes in a savings account for the  
                    offender, which can be used to provide support for the  
                    offender's immediate family, purchase items necessary  
                    for employment, or given to the offender to purchase  
                    personal accessories.  Upon release, the remaining  
                    money in the savings account is paid to the offender.   
                    (Pen. Code  6231, subds. (a) and (b)(3).) 

           Existing law  provides that an offender shall not leave a  
          restitution center except to go to work or when specifically  
          authorized and shall return to the restitution center  
          immediately after work or when required by the person in charge  
          of the restitution center. An offender who violates this section  
          is guilty of escape.  (Pen. Code  6233, subds. (a)-(b).)

           Existing law  establishes the Sex Offender Registration Act,  
          which requires all persons convicted in California, federal, or  
          military court, of specifically enumerated sex crimes to  
          register with the chief of police of the city in which he or she  
          is residing.  (Pen. Code  290.)

           Existing law  provides that a "serious felony" includes  
          manslaughter, flight from a peace officer, reckless driving, and  
          driving under the influence, when any of these offenses involve  
          the personal infliction of great bodily injury in any person  
          other than an accomplice, or the personal use of a dangerous or  
          deadly weapon.  (Pen. Code  1192.7.)

           Existing law  provides that a "violent felony" includes murder,  
          mayhem, rape, robbery, arson, attempted murder, kidnapping,  
          carjacking, extortion, and more.  (Pen. Code  667.5, subd.  
          (c).)

           This bill  revises what is included by the term "restitution" for  
          the purposes of restitution centers to include restitution fines  




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          and fees.

           This bill  provides that inmates who commit crimes involving a  
          direct victim shall receive priority placement in restitution  
          centers. 

           This bill  clarifies qualifications for placement in a  
          restitution center as concerns the defendant's prior  
          convictions.  In particular, the defendant must not have been  
          convicted of the following offenses:

                 the sale of drugs within the last five years; 
                 an offense requiring registration as a sex offender  
               pursuant to the Sex Offender Registration Act, Penal Code  
               Section 290;  
                 a serious felony as listed in Penal Code Section 1192.7;  
               or,
                 a violent felony as listed in Penal Code Section 667.5.

           This bill  provides that a defendant is not eligible for  
          placement in a restitution center if he was sentenced to a term  
          exceeding 60 months (five years).

           This bill  removes the requirement that a defendant is only  
          eligible for placement in a restitution center if he or she has  
          not served a prison term within the five years prior to the  
          present conviction.

           This bill  requires CDCR to reopen the Los Angeles County Central  
          Reception Center and the Los Angeles County La Cienega  
          Restitution Center no later than the 2010-11 fiscal year.
           
          This bill  states findings and declarations pertaining to  
          restitution centers and inmates:

                 Of the 125,000 inmates annually released from California  
               prisons, more than one-half will return to prison within  
               two years and more than 70 percent will return within three  
               years.
                 Incarceration costs have risen to $46,000 per inmate per  




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               year, not including the costs of programming for substance  
               abuse, mental health, or educational and vocational  
               training.
                 The vast majority of California prisons' inmates do not  
               participate in any prison programs. The majority of  
               released inmates will be unemployed with few job prospects.
                 The most successful models for preventing recidivism  
               include public-private partnerships among law enforcement,  
               government agencies, business and labor associations,  
               private employers, and community-based organizations formed  
               to create living wage employment opportunities for eligible  
               former offenders and to take advantage of existing programs  
               and incentives for hiring former offenders.
                 The restitution center concept is a model where inmates  
               serving time for non-violent, non-serious offenses can  
               fulfill obligations to pay restitution and other  
               court-related fines and fees in addition to obtaining and  
               maintaining employment.
                 Being employed is a key factor ensuring a lower  
               recidivism rate and thus reducing taxpayer burdens.
             
                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION
          
          California continues to face a severe prison overcrowding  
          crisis.  The Department of Corrections and Rehabilitation (CDCR)  
          currently has about 170,000 inmates under its jurisdiction.  Due  
          to a lack of traditional housing space available, the department  
          houses roughly 15,000 inmates in gyms and dayrooms.   
          California's prison population has increased by 125% (an average  
          of 4% annually) over the past 20 years, growing from 76,000  
          inmates to 171,000 inmates, far outpacing the state's population  
          growth rate for the age cohort with the highest risk of  












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          incarceration.<1>

          In December of 2006 plaintiffs in two federal lawsuits against  
          CDCR sought a court-ordered limit on the prison population  
          pursuant to the federal Prison Litigation Reform Act.  On  
          February 9, 2009, the three-judge federal court panel issued a  
          tentative ruling that included the following conclusions with  
          respect to overcrowding:

               No party contests that California's prisons are  
               overcrowded, however measured, and whether considered  
               in comparison to prisons in other states or jails  
               within this state.  There are simply too many  
               prisoners for the existing capacity.  The Governor,  
               the principal defendant, declared a state of emergency  
               in 2006 because of the "severe overcrowding" in  
               California's prisons, which has caused "substantial  
               risk to the health and safety of the men and women who  
               work inside these prisons and the inmates housed in  
               them."  . . .  A state appellate court upheld the  
               Governor's proclamation, holding that the evidence  
               supported the existence of conditions of "extreme  
               peril to the safety of persons and property."  
               (citation omitted)  The Governor's declaration of the  
               state of emergency remains in effect to this day.

               . . .  the evidence is compelling that there is no  
               relief other than a prisoner release order that will  
               remedy the unconstitutional prison conditions.

               . . .

               Although the evidence may be less than perfectly  
               ----------------------
          <1>  "Between 1987 and 2007, California's population of ages 15  
          through 44 - the age cohort with the highest risk for  
          incarceration - grew by an average of less than 1% annually,  
          which is a pace much slower than the growth in prison  
          admissions."  (2009-2010 Budget Analysis Series, Judicial and  
          Criminal Justice, Legislative Analyst's Office (January 30,  
          2009).)



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               clear, it appears to the Court that in order to  
               alleviate the constitutional violations California's  
               inmate population must be reduced to at most 120% to  
               145% of design capacity, with some institutions or  
               clinical programs at or below 100%.  We caution the  
               parties, however, that these are not firm figures and  
               that the Court reserves the right - until its final  
               ruling - to determine that a higher or lower figure is  
               appropriate in general or in particular types of  
               facilities.

               . . .

               Under the PLRA, any prisoner release order that we  
               issue will be narrowly drawn, extend no further than  
               necessary to correct the violation of constitutional  
               rights, and be the least intrusive means necessary to  
               correct the violation of those rights.  For this  
               reason, it is our present intention to adopt an order  
               requiring the State to develop a plan to reduce the  
               prison population to 120% or 145% of the prison's  
               design capacity (or somewhere in between) within a  
               period of two or three years.<2>

          The final outcome of the panel's tentative decision, as well as  
          any appeal that may be in response to the panel's final  
          decision, is unknown at the time of this writing.

           This bill  does not appear to aggravate the prison overcrowding  
          crisis outlined above.


                                      COMMENTS

          ---------------------------
          <2>  Three Judge Court Tentative Ruling, Coleman v.  
          Schwarzenegger, Plata v. Schwarzenegger, in the United States  
          District Courts for the Eastern District of California and the  
          Northern District of California United States District Court  
          composed of three judges pursuant to Section 2284, Title 28  
          United States Code (Feb. 9, 2009).



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          1.  Need for This Bill  

          According to the author:

               California's 33 state prisons are bursting at the  
               seams at 200% capacity, and California boasts the  
               highest recidivism rate in the country, at 70%.  There  
               is also a looming threat that thousands of inmates  
               will be released early, as a result of the prisons  
               system being in receivership.  The overwhelming  
               majority of inmates in state prison do not access  
               meaningful job training or other programming while  
               incarcerated and have no immediate employment  
               prospects upon release, which ensures that they will  
               be dependent on government aid.  Further, the cost per  
               day of housing a CDCR inmate in a Restitution Center  
               is approximately $50 compared to $97 per day to house  
               in state prison, which saves at least $17,000 per  
               inmate per year.  The Restitution Centers provide an  
               avenue for inmates to be housed in a less costly  
               community setting while still fulfilling their  
               obligations to pay restitution. 

               AB 807 would expand eligibility to those charged with  
               non-violent, and non-Section 290 registerable offenses  
               facing a maximum five-year sentence.  AB 807 would  
               further clarify that persons who owe restitution fines  
               and fees to the courts are eligible for placement in  
               Restitution Centers, but would prioritize admission to  
               those who owe restitution to individual victims.  The  
               goal of AB 807 is to ensure that bed capacity is  
               always filled at 100%.

          2.  Background Submitted by the Author and Sponsor

           According to the background submitted by the author:

               Citing budget costs, [CDCR] abruptly closed the Los  
               Angeles Central and the La Cienega Restitution Centers  
               on Thanksgiving Eve 2008 and indefinitely suspended  




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               contracts with the community provider.   All 74  
               enrolled offenders [were sent] to prison, without  
               informing their employers.  Placement in the centers  
               is contingent on a defendant obtaining and maintaining  
               full-time employment. 

               CDCR asserted that they were unable to fill all 110  
               beds under current criteria  At the time of closing,  
               the two facilities had a combined total of 36 empty  
               beds.  For many years, when eligibility for  
               restitution centers included defendants who owed  
               restitution fines and fees, the centers were filled to  
               capacity and had lengthy waiting lists.  CDCR adopted  
               a strict interpretation of restitution and excluded  
               candidates who only owed restitution fines and fees,  
               not direct restitution to victims.

               The Governor has mandated that inmates be sent to  
               community centers in order to reduce the number of  
               individuals sent to prison at the cost of $46,000 per  
               year. Re-opening the restitution centers makes good  
               fiscal sense, especially in light of California's dire  
               budget crisis and the lingering threat of the release  
               of thousands of inmates incident to the prison system  
               being in receivership.  The restitution center model  
               is an example of being smart on crime: it is based on  
               employment that pays for restitution as well as the  
               cost of program operating expenses.  The centers must  
               be reopened so that victims of nonviolent crime  
               continue to receive restitution.  While AB 807 gives  
               priority to defendants who owe direct restitution to  
               victims, the bill also authorizes courts to commit  
               defendants who owe only restitution fines to  
               restitution center.  This will ensure full capacity in  
               restitution centers.

          3.  Additional Background from Media Reports on the Closure  
            of the two Los Angeles Centers
           
          In media reports in the Los Angeles Times and California  




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          Lawyer, CDCR representatives have argued that the VOA was  
          not willing to negotiate a satisfactory agreement for the  
          department.  The VOA stated that CDCR wanted the VOA  
          facilities to accept parole violators, which the VOA was  
          not willing to do.

          CDCR stressed that the centers had about 36 empty beds --  
          far short of capacity.  The restrictions on placement  
          greatly restricted the ability of CDCR to place inmates in  
          the centers.  Only inmates convicted of non-violent,  
          non-sex offenses, serving sentences of 32 months or less  
          who owed direct restitution to victims are eligible for  
          restitution center placement.  Closing the centers  
          eliminated $500,000 in contract expenses for CDCR.   
          Essentially, CDCR could not justify the expense of renting  
          empty space for inmates.

          CDCR was sharply criticized for closing the centers because  
          they are much cheaper to operate than prisons.  CDCR noted  
          that the residents of restitution centers would be placed  
          in fire camps and other low-security facilities that are  
          not expensive to operate.
           
          SHOULD ELIGIBILITY FOR RESTITUTION CENTERS BE EXPANDED?




















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          WILL EXPANDING ELIGIBILITY FOR RESTITUTION CENTER  
          PLACEMENTS ALLOW CDCR TO FILL RESTITUTION CENTERS IN A  
          COST-EFFECTIVE MANNER?

          ARE RESTITUTION CENTERS EFFECTIVE IN ALLOWING INMATES TO  
          MEET RESTITUTION OBLIGATIONS?

          4.  Current CDCR Reluctance to Open Restitution Centers in  
            Contemplation of the Release of Inmates who would be Eligible  
            for Restitution Center Placement  

          In discussions with Committee staff, CDCR representatives have  
          noted that proposed legislation would result in the release of  
          substantial numbers of non-violent offenders who have only  
          limited criminal records.  Release of such inmates would greatly  
          reduce the pool of inmates who are eligible for restitution  
          centers.  As such, the centers CDCR must open under this bill  
          would likely run far short of capacity.  The inability of CDCR  
          to find eligible inmates was the major reasons the two Los  
          Angeles facilities were closed in November, 2008.

          WOULD PROPOSED LEGISLATION UNDER WHICH NON-VIOLENT PRISONERS  
          WITH LIMITED CRIMINAL RECORDS WOULD BE RELEASED FROM PRISON  
          GREATLY LIMIT THE POOL OF INMATES ELIGIBLE FOR PLACEMENT IN  
          RESTITUTION CENTERS?

          SHOULD ENACTMENT OF THIS BILL, OR SIMILAR LEGISLATION, AWAIT THE  
          DETERMINATION OF WHICH INMATES, IF ANY, WILL BE RELEASED FROM  
          PRISON BECAUSE OF THE BUDGET CRISIS?

          5.  Directing CDCR to Open Particular Restitution Centers  

          This bill directs CDCR to "operate the Los Angeles County  
            Central Restitution Center and the Los Angeles County La Cienega  
          Restitution Center."  It can be argued that specifying the  
          particular restitution centers that CDCR must open is overly  
          restrictive and inefficient.  Under such a directive the party  
          or parties contracting with CDCR for opening the restitution  
          centers would have a great advantage.  Essentially, the party  




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          contracting with CDCR could dictate the terms of the contract. 

          SHOULD THE BILL SPECIFY THE PARTICULAR RESTITUTION CENTERS IN  
          LOS ANGELES THAT THE DEPARTMENT OF CORRECTIONS AND  
          REHABILITATION MUST OPEN?

          SHOULD THE BILL, INSTEAD, SIMPLY DIRECT CDCR TO OPEN TWO  
          RESTITUTION CENTERS IN LOS ANGELES, LEAVING CDCR THE DISCRETION  
          TO DETERMINE WHICH FACILITIES TO OPEN?


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