BILL ANALYSIS                                                                                                                                                                                                    







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

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          AB 2218 (Fuentes)                                          8
          As Introduced February 18, 2010  
          Hearing date:  June 22, 2010
          Penal Code
          JM:mc

                                  RESTITUTION CENTERS  

                                       HISTORY

          Source:  California Public Defenders Association

          Prior Legislation: AB 807 (Fuentes) - 2009, Vetoed
                       AB 1478 (Baugh) - Ch. 249, Stats. 2000
                       SB 615 (Maddy) - Ch. 372, Stats. 1995
                       SB 1656 (Maddy) - Ch. 1520, Stats. 1984
                       
          Support: California Attorneys for Criminal Justice; Drug Policy  
                   Alliance; Taxpayers for Improving Public Safety;  
                   California Public Defenders Association

          Opposition:None known

          Assembly Floor Vote:  Ayes 62 - Noes 5


                                      KEY ISSUES
           
          SHOULD THE LEGISLATURE STATE INTENT TO CUT PRISON COSTS AND  
          REDUCE RECIDIVISM  THROUGH THE USE OF RESTITUTION CENTERS IN  
          WHICH INMATES CAN MAINTAIN EMPLOYMENT IN THE COMMUNITY TO EARN  
          MONEY TO PAY RESTITUTION TO VICTIMS, RESTITUTION FINES AND OTHER  
          OBLIGATIONS, INCLUDING PROGRAM COSTS?




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

          SHOULD THE MAXIMUM SENTENCE FOR A PERSON PLACED IN A RESTITUTION  
          CENTER BE EXPANDED FROM 36 MONTHS TO 60 MONTHS?

          IF OTHER ELIGIBILITY REQUIREMENTS ARE MET, SHOULD A DEFENDANT WHO  
          HAS NOT BEEN CONVICTED OF DRUG SALES WITHIN THE PREVIOUS FIVE YEARS  
          BE ELIGIBLE FOR RESTITUTION CENTER PLACEMENT?



                                       PURPOSE

          The purposes of this bill are to 1) state legislative intent to  
          reduce recidivism and assist in collection of restitution  
          through the use of restitution centers in which inmates can  
          maintain employment in the community to earn money to pay  
          restitution, restitution fines and other fines; 2) broaden  
          eligibility for restitution center placement to inmates with a  
          sentence of up to 60 months or who have not had a conviction for  
          sale of a controlled substance for five years - if the defendant  
          meets the other eligibility rules; and 3) to give priority in  
          placement for defendants who owe direct restitution to victims.

           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  




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               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         1/3 goes to the CDCR to pay the costs of the  
                    restitution center;
                  o         1/3 first goes to court ordered or agreed upon  
                    restitution, and the moneys are paid to the  
                    prosecuting jurisdiction to defray court costs and  
                    attorney fees incurred in prosecution and paid to the  
                    local jurisdiction for crime prevention; and
                  o         1/3 goes in a savings account for the  
                    offender, which can be used to provide support for the  
                    offender's immediate family, purchase items necessary  




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                    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  declares legislative intent to address recidivism by  
          using a restitution center concept 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, as specified.   


           This bill  provides that the purpose of a restitution center is  
          to allow inmates to pay their victims' financial restitution,  




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          including direct restitution to victims as well as restitution  
          fines and fees.

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

           This bill  expands eligibility for placement in a restitution  
          center to a defendant who does not have a conviction for the  
          sale of a controlled substance within the last five years, if  
          the defendant meets other eligibility requirements.

           This bill  expands eligibility for restitution center placement  
          to a defendant who was sentenced to a term of no more than 60  
          months, if other eligibility requirements are met.

                                          
                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION
          
          The severe prison overcrowding problem California has  
          experienced for the last several years has not been solved.  In  
          December of 2006 plaintiffs in two federal lawsuits against the  
          Department of Corrections and Rehabilitation sought a  
          court-ordered limit on the prison population pursuant to the  
          federal Prison Litigation Reform Act.  On January 12, 2010, a  
          federal three-judge panel issued an order requiring the state to  
          reduce its inmate population to 137.5 percent of design capacity  
          -- a reduction of roughly 40,000 inmates -- within two years.   
          In a prior, related 184-page Opinion and Order dated August 4,  
          2009, that court stated in part:

               "California's correctional system is in a tailspin,"  
               the state's independent oversight agency has reported.  
               . . .  (Jan. 2007 Little Hoover Commission Report,  
               "Solving California's Corrections Crisis: Time Is  
               Running Out").  Tough-on-crime politics have increased  
               the population of California's prisons dramatically  
               while making necessary reforms impossible. . . .  As a  
               result, the state's prisons have become places "of  
               extreme peril to the safety of persons" they house,  




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               (Governor Schwarzenegger's Oct. 4, 2006 Prison  
               Overcrowding State of Emergency Declaration), while  
               contributing little to the safety of California's  
               residents . . .   California "spends more on  
               corrections than most countries in the world," but the  
               state "reaps fewer public safety benefits." . . .  .   
               Although California's existing prison system serves  
               neither the public nor the inmates well, the state has  
               for years been unable or unwilling to implement the  
               reforms necessary to reverse its continuing  
               deterioration.  (Some citations omitted.)

               . . .

               The massive 750% increase in the California prison  
               population since the mid-1970s is the result of  
               political decisions made over three decades, including  
               the shift to inflexible determinate sentencing and the  
               passage of harsh mandatory minimum and three-strikes  
               laws, as well as the state's counterproductive parole  
               system.  Unfortunately, as California's prison  
               population has grown, California's political  
               decision-makers have failed to provide the resources  
               and facilities required to meet the additional need  
               for space and for other necessities of prison  
               existence.  Likewise, although state-appointed experts  
               have repeatedly provided numerous methods by which the  
               state could safely reduce its prison population, their  
               recommendations have been ignored, underfunded, or  
               postponed indefinitely.  The convergence of  
               tough-on-crime policies and an unwillingness to expend  
               the necessary funds to support the population growth  
               has brought California's prisons to the breaking  
               point.  The state of emergency declared by Governor  
               Schwarzenegger almost three years ago continues to  
               this day, California's prisons remain severely  
               overcrowded, and inmates in the California prison  
               system continue to languish without constitutionally  






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               adequate medical and mental health care.<1>

          The court stayed implementation of its January 12, 2010 ruling  
          pending the state's appeal of the decision to the U.S. Supreme  
          Court.  On Monday, June 14, 2010, the U.S. Supreme Court agreed  
          to hear the state's appeal in this case.

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


                                      COMMENTS

          1.  Need for This Bill  

          According to the author:

               AB 2218 reinforces principles of individual  
               accountability, public safety and long-term cost  
               savings to the taxpayers of California.  The bill  
               states legislative intent to re-open Restitution  
               Centers, where eligible and suitable non-violent state  
               prison inmates would be required to obtain and  
               maintain employment while also paying direct victim  
               restitution and other restitution fines and fees owed.  
                

               AB 2218 is an example of being smart on crime because  
               offenders who gain tangible life skills which include  
               vocational training and actual employment are much  
               more likely to successfully reintegrate into  
               communities and contribute to society instead of being  
               a drain to taxpayers.  Restitution Center participants  
               ----------------------
          <1>   Three Judge Court Opinion and Order, 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 (August 4, 2009).




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               often maintain the same employment upon being released  
               from state custody, thus providing a more seamless  
               transition.

          2.  Previous Restitution Center Program  







































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          In November 2008, the California Department of Corrections and  
          Rehabilitation (CDCR) closed the two restitution centers, both  
          in Los Angeles.  A restitution center is designed to house  
          non-serious, non-drug related offenders at a cost that is lower  
          than imprisonment.  Residents can earn money to pay rent.   
          Arguably an equally important purpose is to allow residents to  
          earn money to pay restitution to their victims.  In 2008, CDCR  
          announced that it could no longer afford the restitution center  
          program.

          In media reports, CDCR "pointed out that the centers had about  
          three dozen empty beds, and said the state could not afford to  
          carry a program not operating at full capacity.  The state could  
          not find enough eligible volunteers to fill all 110 beds.   
          Closing the centers eliminated $500,000 in contract costs for  
          the state."  (McGreevy, State Closes Restitution Centers for  
          White Collar Prisoners, Los Angeles Times, January 13, 2009.)

          To be eligible for admission into a restitution center, an  
          inmate must have owed restitution to a victim and have a  
          sentence of three years or less for a nonviolent, nonsexual  
          offense.  One-third of an offender's earnings is paid to the  
          State for the offender's upkeep, one-third is paid to victims,  
          and the final one-third is deposited into an account to pay for  
          job-related costs such as transportation.

          Crime victims' advocates argued that a group home costs the  
          state $50 per inmate per day whereas those same inmates are now  
          costing the state at least $97 per day in prison (according to  
          prison officials).  Based on the number of inmates, the  
          difference of having inmates placed in group homes versus prison  
          is about $1.2 million per year.  (Ibid.)

            3.  Little Hoover Commission Recommendations Relating to  
            Restitution Centers
           
          In its report, "Solving California's Corrections Crisis:  Time  
          is Running Out," (Jan. 2007) the Little Hoover Commission  
          recommended that the Governor and the Legislature enact  




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          legislation to promote the utilization of intermediate or  
          community based sanctions, including restitution centers, to  
          reduce prison costs.  (Little Hoover Commission, Solving  
          California's Corrections Crisis:  Time is Running Out (Jan.  
          2007) p. 31.)

          The 2007 report reiterated recommendations made by the Little  
          Hoover Commission in 1998.   "?[T]he Governor and the  
          Legislature enact legislation funding community-based  
          punishments like restitution center programs that improve public  
          safety over the long term by reducing recidivism and that  
          minimize the short-term added risks to the public when compared  
          with incarceration in state prison."  (Little Hoover Commission,  
          Behind Bars: Correctional Reforms to Lower Prison Costs and  
          Reduce Crime (Jan. 1998) p. 56.) 
           



          4.  Related Legislation in 2009 was Vetoed   

          AB 807 (Fuentes) would have revised the criteria for placement  
          of inmates in restitution centers by the CDCR.  AB 807 directed  
          CDCR to open two specific restitution centers in Los Angeles.   
          In discussions with Committees staff, CDCR representatives  
          expressed concerns about being given such a mandate.  AB 807 was  
          vetoed by the Governor for interfering with CDCR operations and  
          because of uncertainty surrounding the prison reform measures  
          that are currently being litigated.  

          This bill does not direct CDCR to open restitution centers.  The  
          bill essentially states legislative intent that centers should  
          be opened and eligibility for placement expanded.

          5.  Argument in Support  

          The California Public Defenders Association argues:

               Instead of serving their sentences in state prison,  
               eligible and suitable prisoners would serve their time  












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               at the Restitution Centers, where CDCR staff was  
               present.  The Restitution Centers provide an avenue  
               for inmates to be housed in a less costly community  
               setting while fulfilling their obligations to pay  
               restitution.  The cost per day of housing a CDCR  
               inmate in a restitution center would be approximately  
               $50 per day compared to $131 per day to house in state  
               prison, saving approximately $29,000 per inmate per  
               year in addition to the savings generated by the  
               percentage of wages allocated toward operating  
               expenses.


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