BILL ANALYSIS
AB 1270
Page 1
Date of Hearing: April 21, 2009
Consultant: Larry Yee
ASSEMBLY COMMITTEE ON PUBLIC SAFETY
Jose Solorio, Chair
AB 1270 (Torrico) - As Introduced: February 27, 2009
SUMMARY : Requires the Victims Compensation and Government
Claims Board (VCGCB) to adopt written procedures and timeframes
for the timely processing of claims. Specifically, this bill
requires the VCGCB, for the purposes of meeting the requirement
for the timely processing of applications, to adopt written
procedures and timeframes for approving or denying applications
and specified procedures for use in communicating with entities
when verifying the required information.
EXISTING LAW :
1)Provides that the VCGCB shall approve or deny applications,
based on recommendations of the VCGCB staff, within an average
of 90 calendar days and no later than 180 calendar days of
acceptance by the VCGCB or victim center. [Government Code
Section 13958.]
a) If the VCGCB does not meet the 90-day average standard
prescribed in this subdivision, the VCGCB shall,
thereafter, report to the Legislature, on a quarterly
basis, its progress and its current average time of
processing applications. These quarterly reports shall
continue until the VDGCB meets the 90-day average standard
for two consecutive quarters. [Government Code Section
13958(a).]
b) If the VCGCB fails to approve or deny an individual
application within 180 days of the date it is accepted,
pursuant to this subdivision, the VCGCB shall advise the
applicant and his or her representative, in writing, of the
reason for the failure to approve or deny the application.
[Government Code Section 13958(b).]
2)States the Legislature finds and declares that it is in the
public interest to assist residents of the State of California
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in obtaining compensation for the pecuniary losses they suffer
as a direct result of criminal acts. [Government Code Section
13950.]
3)Defines the following [Government Code Section 13951]:
a) "Crime" is a crime or public offense, wherever it may
take place, which would constitute a misdemeanor or a
felony if the crime had been committed in California by a
competent adult.
b) "Crime" includes an act of terrorism, committed against
a resident of the state, whether or not the act occurs
within California.
c) "Derivative victim" is an individual who sustains
pecuniary loss as a result of injury or death to a victim.
d) "Pecuniary loss" is an economic loss or expense
resulting from an injury or death to a victim of crime that
has not been and will not be reimbursed from any other
source.
e) "Victim" is an individual who sustains injury or death
as a direct result of a crime.
4)Provides than an application for compensation shall be filed
with the VCGCB in the manner determined by the VCGCB.
[Government Code Section 13952(a).]
5)Provides that the application for compensation shall be
verified under penalty of perjury by the individual who is
seeking compensation, who may be the victim or derivative
victim, or an individual seeking reimbursement for burial,
funeral, or crime scene clean-up expenses pursuant specified
sections of the Government Code. [Government Code Section
13952(b)(1).]
6)States that except as provided by specified sections of the
Government Code, a person shall be eligible for compensation
when all of the following requirements are met [Government
Code Section 13955]:
a) The person from whom compensation is being sought is a
victim, a derivative victim, or a person who is entitled to
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reimbursement for funeral, burial or crime scene clean-up
expenses pursuant to specified sections of the Government
Code.
b) Either of the following conditions is met:
i) The crime occurred within California whether or not
the victim is a resident of California. This only
applies when the VCGCB determines that there are federal
funds available to the state for the compensation of
crime victims.
ii) Where or not the crime occurred within the State of
California, the victim was any of the following:
(1) A California resident.
(2) A member of the military stationed in
California.
(3) A family member living with a member of the
military station in California.
c) If compensation is being sough for derivative victim,
the derivative victim is t a resident of California or the
resident of another state who is any of the following:
i) At the time of the crimes was the parent,
grandparent, sibling, spouse, child or grandchild of the
victim.
ii) At the time of the crime was living in the household
of the victim.
iii) At the time of the crime was a person who had
previously lived in the house of the victim for a person
of not less than two years in relationship substantially
similar to a previously listed relationship.
iv) Another family member of the victim including, but
not limited to, the victim's fianc? or fianc?e, and who
witnessed the crime.
v) Is the primary caretaker of a minor victim, but was
not the primary caretaker at the time of the crime.
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7)Allows the following victims may be reimbursed for outpatient
mental health counseling in an amount not to exceed $5,000
[Government Code Section 13957(a)(2)(B)]:
a) A derivative victim not eligible for reimbursement in
the category allowing up to $10,000; and,
b) A direct victim of the crime of unlawful sexual
intercourse, where the victim is under 16 years old and the
defendant is over 21 years old; and,
c) A minor who suffers emotional injury as a direct result
of witnessing a violent crime and who is not eligible for
reimbursement of the costs of outpatient mental health
counseling. To be eligible for reimbursement under this
clause, the minor must have been in close proximity to the
victim when he or she witnessed the crime.
8)Provides that when a victim dies as a result of crime, the
VCGCB may reimburse any individual who voluntarily, and
without anticipation of personal gain, pay or assumes the
obligation to pay any of the following expenses [Government
Code Section 13957(a)(9)]:
a) The medical expenses incurred as a direct result of the
crime in an amount not to exceed the rates or limitations
established by the VCGCB.
b) When the crime occurs in a residence, the reasonable
costs to clean the scene of the crime in an amount not to
exceed $1,000.
c) The funeral and burial expenses incurred as a direct
result of the crimes, not to exceed $7,500.
9)Provides that the total award to or on behalf of each victim
or derivative victim may no exceed $35,000, except that this
amount may be increased to $70,000 if federal funds for that
increase are available. [Government Code Section 13957(b).]
10)Provides that the VCGCB shall grant a hearing to an applicant
who believes he or she is entitled to compensation, to contest
a staff recommendation to deny compensation. [Government Code
Section 13959(a).]
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11)Authorizes the VCGCB to order reconsideration of its decision
on its own motion or on the written request of the applicant.
The VCGCB may not consider any request for consideration more
than 30 days after personal delivery, or 60 calendar days
after the mailing, of the original decision. [Government Code
Section 13959(i).]
12)Provides that no reimbursement may be made for any expense
that is submitted more than three years after it is incurred
by the victim or derivative victim. However, reimbursement
may be made for an expense submitted more than three years
after the date it is incurred if the victim or derivative
victim has affirmed the debt and is liable for the debt at the
time the expense is submitted for reimbursement, or has paid
the expense as a direct result of a crime for which a timely
application has been filed. [Government Code Section
13957.7(a).]
13)Provides that compensation made pursuant to this chapter may
be on a one-time or periodic basis. If periodic, the VCGCB
may increase, reduce, or terminate the amount of compensation
according to the applicant's need, subject to the maximum
limits provided in this chapter. [Government Code Section
13957.7(b).]
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's Statement : According to the author, "In December
2008, the State Auditor listed several recommendations to
improve the Victims Compensation and Governmental Claims
Program. One recommendation was to develop written procedures
for managing the workload at the VCGCB as well as to develop a
comprehensive plan for priorities.
"In June 2008, the VCGCB began processing claims exclusively
through a new system, the Compensation and Restitution System
(CaRES).
"This bill will make it easier for victim's to file and receive
claims with the VCGCB by requiring for the VCGCB to have
written procedures and time frames in place."
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2)Background : According to background submitted by the author,
"A 2008 State Audit Report stated that the VCGCB needed to
improve on processing applications, correlating payments, and
develop specific procedures for staff when verifying entities
and to continue outreach efforts.
"Although there was a recent decline of claims filed by victims
to the VCGCB, the administration costs to run the program had
increased. The program had also failed to process
applications in a timely and efficient manner. In today's
fiscal climate, resources for victims are important to
protect.
"The goal of the VCGCB is to assist victim's who have suffered
crimes such as domestic violence, child abuse, physical and
sexual assault, homicide, driving under the influence and
vehicular manslaughter. Eligible services include medical and
dental care, mental health services, lost wages or support,
funeral or burial expenses and relocation.
"The State Auditor listed several recommendations to improve the
program. One recommendation was to develop written procedures
for managing the workload at the VCGCB as well as to develop a
comprehensive plan for priorities.
"In June 2008, the VCGCB began processing claims exclusively
through a new system, the CaRES. The VCGCB has a goal of
improving processing time by 10% for applications and payments
by July 2009."
3)Victim Compensation Program (VCP) : The VCP provides
compensation for victims of crimes who are injured or
threatened with injury, and extends to victims, eligible
family members, and other specified persons. The VCP includes
medical and mental health services not covered by insurance.
The VCGCB administers the program. State law prescribes the
type of compensation the VCGCB can make.
4)VCP Inefficiencies : According to a report by the California
State Auditor on the Victim Compensation Program, " . . .
program compensation payments sustained a 50% decrease from
Fiscal Years 2001-02 through 2004-05 as a result of the VCGCB
members' attempts to maintain the fiscal viability of the
Restitution Fund. Compensation payments have increased since
Fiscal Year 2004-05, but not to the level they reached in
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Fiscal Year 2001-02. Despite the significant decline in
payments, the costs the VCGCB incurs to support the program
have increased. These costs - ranging from 26% to 42%
annually - account for a significant portion of Restitution
Fund disbursements. In addition, although the VCGCB generally
complied with state laws and regulations for determining
whether applicants are eligible for program benefits, it did
not always process applications and bills as promptly or
efficiently as it could have. The VCGCB's procedures for
following up with outside entities to obtain necessary
information to verify applications and bills are not
sufficiently detailed and contribute to inconsistencies in
staff efforts to obtain the information promptly.
"In late June 2006, the VCGCB began transitioning to its current
application and bill processing system. Although the VCGCB
expects to gain efficiencies and benefits from the use of the
new system, it generally has not developed benchmarks or
measured results. Further, the VCGCB has experienced numerous
problems with the transition. Most troubling was our
identification of payments that appeared to be erroneous.
Although VCGCB staff provided explanations, asserting that the
payments were appropriate and the data were flawed, the fact
that they were unaware of these items indicates the absence of
controls that would prevent erroneous payments from being
made. In addition, the VCGCB's current process for managing
its workload is informal: it has not established benchmarks,
performance measures, or formal written procedures for
workload management. Finally, the VCGCB has not established a
comprehensive outreach plan to assist it in appropriately
prioritizing its efforts and focusing on those in need of
program services." [Victim Compensation and Government Claims
Board: It Has begun Improving the Victim Compensation
Program, but More Remains to Be Done. California State
Auditor Report 2008-113 (December 2008).]
5)VCGCB Response : In a response letter to the audit report by
the California State Auditor, the VCGCB stated, " The audit
finds, and we agree, the VCGCB can make improvements in
processing time for applications and payments, developing
specific verification procedures, and maintaining
documentation.
"The VCGCB concurs with the recommendation to develop written
procedures and time frames for the appeals process. A new
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procedure manual, as discussed below, will include this
subject.
"The VCGCB's ability to process applications and pay bills in a
timely manner is dependent upon the timely submittal of key
information from verifying entities. To improve the VCGCB's
success at obtaining such information, the VCGCB plans to
develop a new procedure manual, which will provide specific
direction to staff for processing applications and bills in
CaRES. The manual will include specific time frames for
follow up with non-responsive verifying entities. Through our
statewide provider forums, the VCGCB has been communicating to
service providers the importance of prompt submittal of
requested information to the board so that we can process
their payment requests in a timely manner. Similarly, we are
reaching out to law enforcement during our numerous law
enforcement outreach seminars." [Victim Compensation and
Government Claims Board: It Has Begun Improving the Victim
Compensation Program, but More Remains to Be Done. California
State Auditor Report 2008-113 at 70, 71 (December 2008).]
REGISTERED SUPPORT / OPPOSITION :
Support
None
Opposition
None
Analysis Prepared by : Larry Yee / PUB. S. / (916) 319-3744