BILL ANALYSIS                                                                                                                                                                                                    







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

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          SB 314 (Calderon)                                           
          As Amended April 2, 2009 
          Hearing date:  April 28 2009
          Government Code
          JM:mc

                               VICTIMS OF CRIME PROGRAM:

               COLLECTION OF RESTITUTION FINES; REIMBURSEMENT PAYMENTS  


                                       HISTORY

          Source:  Author

          Prior Legislation: AB 2928 (Spitzer) - Ch. 752, Stats. 2008
                       SB 1203 (Runner) - 2008, failed passage in Assembly  
          Public Safety
                       AB 105 (Cohn) - Ch. 539, Stats.  2006
                       AB 2413 (Spitzer) - Ch. 571, Stats. 2006
                       
          Support: Los Angeles County District Attorney; California  
                   Coalition Against Sexual Assault; Crime Victims United;  
                   Chief Probation Officers of California

          Opposition:None known



                                      KEY ISSUES
           
          SHOULD UNPAID RESTITUTION FINES BE DEDUCTED FROM A PERSON'S  
          INCOME TAX REFUND?




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                                                          SB 314 (Calderon)
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          SHOULD THE VICTIMS COMPENSATION AND GOVERNMENT CLAIMS BOARD BE  
          AUTHORIZED TO REIMBURSE A VICTIM FOR RELOCATION EXPENSES IN EXCESS  
          OF $2,000, IF THE ADDITIONAL FUNDS ARE DIRELY NEEDED TO PROTECT THE  
          VICTIM'S PHYSICAL OR EMOTIONAL WELL-BEING?

          SHOULD THE LEGISLATURE FIND AND DECLARE THAT THE VICTIMS OF CRIME  
          FUND SHOULD NOT BE USED FOR PURPOSES OTHER THAN REIMBURSEMENT OF AND  
          SERVICES TO VICTIMS?



                                       PURPOSE

          The purposes of this bill are to 1) direct the Controller to  
          deduct unpaid restitution fines from a person's income tax  
          refund; and 2) authorize the Victims Compensation and Government  
          Claims Board to authorize reimbursement of more than $2,000 -  
          the maximum allowed by statute - for a victim's relocation  
          expenses, where the additional money is necessary for the  
          victim's physical or emotional well-being.
           
          Existing statutes  require a minimum restitution fine of $200 in  
          all felony cases and $100 in all misdemeanor cases.  Courts may  
          set a maximum of $10,000 for felonies and $1,000 for  
          misdemeanors.  Restitution fines shall be imposed regardless of  
          the defendant's present ability to pay.  Restitution fines are  
          used to pay for the Victims of Crime Program.  (Penal Code   
          1202.4.)


           Existing law  provides for restitution orders - enforceable as a  
          civil judgment - to ensure that a victim of a crime who incurs  
          any economic loss shall receive restitution directly from any  
          defendant convicted of that crime.  If a restitution order is  
          made, the defendant has the right to a hearing before the court  




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                                                          SB 314 (Calderon)
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          to dispute the determination of the amount of the order.  A  
          restitution order may be modified upon motion of the district  
          attorney, the victim or victims, or the defendant.  (Penal Code  
           1202.4(f) and (i).)<1>

           Existing law  provides that in setting a felony restitution fine,  
          the court may determine the amount of the fine as the product of  
          $200 multiplied by the number of years of imprisonment the  
          defendant is ordered to serve, multiplied by the number of  
          felony counts of which the defendant is convicted.  The court  
          shall impose the restitution fine unless it finds compelling and  
          extraordinary reasons for not doing so, and states those reasons  
          on the record.  A defendant's inability to pay shall not be  
          considered a compelling and extraordinary reason not to impose a  
          restitution fine.  Inability to pay may be considered only in  
          increasing the amount of the restitution fine in excess of the  
          $200 or $100 minimum.  (Penal Code  1202.4, subd. (b)(1) and  
          (c).)

           Existing law  provides that where a defendant is placed on  
          probation, the court shall impose a probation revocation  
          restitution fine in the same amount as the standard restitution  
          fine.  The fine shall be stayed unless and until the defendant's  
          probation is revoked.  (Pen. Code  1202.44.)

           Existing law  provides that where a defendant is sentenced to  
          prison, the court shall impose a parole revocation restitution  
          fine in the same amount as the standard restitution fine.  The  
          fine shall be stayed unless and until the defendant's parole is  
          revoked.  (Pen. Code  1202.45.)

           Existing law  provides that the restitution fine shall not be  
          subject to penalty assessments as provided in Section 1464, and  
          shall be deposited in the Restitution Fund in the State  
          Treasury.  (Penal Code  1202.4(e).)

          ---------------------------
          <1> Penal Code  1202.4(f)(2) further specifies that a  
          restitution order may also be paid directly to the Restitution  
          Fund to the extent that the victim has received assistance from  
          the Victims of Crime Program.



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           Existing law  provides that in any case in which a prisoner owes  
          a restitution fine or order the California Department of  
          Corrections and Rehabilitation (CDCR) shall deduct a minimum of  
          20 percent or the balance owing on the fine amount, whichever  
          is less, up to a maximum of 50 percent from the wages and trust  
          account deposits of a prisoner, unless prohibited by federal  
          law, and shall transfer that amount to the California Victim  
          Compensation and Government Claims Board (CVGCB) for deposit in  
          the Restitution Fund, as specified.  The CDCR shall deduct and  
          retain from the wages and trust account deposits of a prisoner,  
          unless prohibited by federal law, an administrative fee that  
          totals 10 percent of any amount transferred, as specified.   
          (Penal Code  2085.5, subds. (a)-(c).)

           Existing law  provides that where a parolee owes a restitution  
          fine, the Department of Corrections and Rehabilitation (CDCR)  
          may collect the fine unless prohibited by federal law.  CDCR  
          shall transfer that money to CVGCB for deposit in the  
          Restitution Fund.  (Pen. Code  2085.5, subds.(d)-(e).)

           Existing law  provides that where a parolee owes direct  
          restitution to a victim, CDCR may collect the fine unless  
          prohibited by federal law.  CDCR shall transfer that money to  
          CVGCB for direct payment to the victim.  (Pen. Code  2085.5,  
          subds. (d)-(e).)

           Existing law  provides that CDCR may retain an administrative fee  
          of 10 percent of any fine or restitution collected from an  
          inmate or parolee for transfer to CVGCB.  CDCR shall retain an  
          administrative fee of 5 percent of any settlement or trial award  
          paid to a parolee, where the settlement or award is used to  
          satisfy a restitution order or fine.  (Pen. Code  2085.5,  
          subds. (c ) and (e).)

          


          Deductions from Income Tax Refunds for Delinquent Accounts






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           Existing law  provides that the State Controller shall offset  
          delinquent accounts - deduct money from income tax refunds - In  
          the following priority:


                 Nonpayment of child or family support accounts enforced  
               by a local child support agency.

                 The nonpayment of child or family support accounts  
               enforced by someone other than a local child support  
               agency.

                 Nonpayment of spousal support accounts enforced by a  
               local child support agency.

                 Nonpayment of spousal support accounts enforced by  
               someone other than a local child support agency. 

                 The benefit overpayment accounts administered by the  
               Employment Development Department if no signed  
               reimbursement agreement exists, or if two consecutive  
               payments on a reimbursement agreement are delinquent at any  
               time.

                 Other offset accounts in the priority determined by the  
               Controller.  (Gov. Code  12419.3)
           
          This bill  directs the State Controller to offset "nonpayment of  
          penalties to the Restitution Fund" against the person's income  
          tax refund, with a priority beneath that of nonpayment of child  
          and spousal support orders.  

           Victims of Crime Fund Structure and Payments
           
          Existing law  creates the Victims of Crime Program, administered  
          by the California Victim Compensation and Government Claims  








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          Board<2>, to reimburse victims of crime for the pecuniary losses  
          they suffer as a direct result of criminal acts.   
          Indemnification is made from the Restitution Fund, which is  
          continuously appropriated to the California Victim Compensation  
          and Government Claims Board for these purposes.  (Gov. Code   
          13950-13968; note that  13969, .2, .5, and .7 related to a  
          one-time 9/11/01 payment and are repealed effective 1/1/04.)

           Existing law  authorizes reimbursement to a victim for "[t]he  
          medical or medical related expenses incurred by the victim?."   
          (Gov. Code  13957, subd. (a)(1).)

           Existing law  provides that the total award to or on behalf of  
          each victim or derivative victim may not exceed $35,000, except  
          that this amount may be increased to $70,000 if federal funds  
          for that increase are available.  (Gov. Code  13957, subd.  
          (b).)

           Existing law  (Gov. Code  13957, subd. (a)) provides that the  
          Victims Compensation and Government Claims Board may grant a  
          crime victim's claim for pecuniary loss for the following  
          purposes: 

           Reimbursement for the amount of medical or medical-related  
            expenses incurred by the victim including, but not limited to,  
            eyeglasses, hearing aids, dentures, or any prosthetic device  
            taken, lost, or destroyed during the commission of the crime,  
            or the use of which became necessary as a direct result of the  
            crime.
           Reimbursement for the amount of out-patient psychiatric,  
            psychological or other mental health counseling-related  
            expenses incurred by the victim or derivative victim, as  
            specified.  The victim or derivative victim, as specified, may  
            be reimbursed for the expense of his or her out-patient mental  
            health counseling in an amount not to exceed $10,000.  Victims  
            and derivative victims, as specified, who are not eligible for  
            up to $10,000 of reimbursement may be eligible to be  
          ---------------------------
          <2>  This entity was formerly known as the State Board of  
          Control.  (Govt. Code  13900 amended by AB 2491 - Ch. 1016,  
          Stats. 2000.)



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            reimbursed for the expense of their out-patient mental health  
            counseling in an amount not to exceed $3,000.
           Reimbursement for the expenses of non-medical remedial care  
            and treatment rendered in accordance with a religious method  
            of healing recognized by state law.
           Compensation equal to the loss of income or loss of support,  
            or both, that a victim or derivative victim incurs as a direct  
            result of the victim's or derivative victim's injury or the  
            victim's death.
           Cash payment to, or on behalf of, the victim for job  
            retraining or similar employment-oriented services.  
            Reimbursement for the expense of installing or increasing  
            residential security, not to exceed $1,000, with respect to a  
            crime that occurred in the victim's residence, upon  
            verification by law enforcement to be necessary for the  
            personal safety of the victim or by a mental health  treatment  
            provider to be necessary for the emotional well being of the  
            victim.
           Reimbursement for the expense of renovating or retrofitting a  
            victim's residence or a vehicle, or both, to make the  
            residence, the vehicle, or both, accessible or the vehicle  
            operational by a victim upon verification that the expense is  
            medically necessary for a victim who is permanently disabled  
            as a direct result of the crime, whether the disability is  
            partial or total.
           Cash payment or reimbursement not to exceed $2,000 to a victim  
            for expenses incurred in relocating if the expenses are  
            determined by law enforcement to be necessary for the personal  
            safety of the victim or by a mental health treatment provider  
            to be necessary for the emotional well being of the victim.   
            The board may authorize more than one relocation per crime if  
            necessary for the well-being of the victim, as defined,  
            although total reimbursement may not exceed $2,000.
           The board, under compelling circumstances, may award  
            reimbursement for moving expenses to the same victim for a  
            second crime if both of the following conditions are met:
                   The crime occurs more than three years from the date  
                of the crime giving rise to the initial relocation cash  
                payment or reimbursement; and,
                   The crime does not involve the same offender.




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           Existing law  authorizes the board to "establish maximum rates  
          and service limitations for medical and medical-related  
          services, and for mental health and counseling services ?"   
          (Gov. Code  13957.2)
          
           This bill  provides that the board may approve reimbursement in  
          excess of $2,000 for expenses incurred by a victim in relocating  
          his or her residence where justified by "unusual, dire or  
          exceptional circumstances." 

           This bill  makes the following findings and declarations:

               The Legislature should not borrow or otherwise use  
               funds from the Restitution Fund to offset other  
               expenses or to supplement the state's budget, because  
               funds dedicated for the victims of crime should be  
               reserved for that sole purpose, and continuous raiding  
               of the Restitution Fund for purposes unrelated to the  
               victims of crime have threatened the solvency of the  
               Restitution Fund.
          

                    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.<3>

          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.

               . . .


               ----------------------
          <3>  "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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               Although the evidence may be less than perfectly  
               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.<4>

          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

          ---------------------------
          <4>  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
           
            The author states:

               The Victims' Restitution Fund receives most of its  
               revenue from fines and penalties collected from  
               criminal offenders.  Under current law, State agencies  
               may order that the Franchise Tax Board (FTB) divert  
               tax return money to agencies that are owed outstanding  
               debt. Different types of debt are assigned different  
               priority levels in order to determine their order of  
               payment.
               SB 314 puts payments to the Restitution Fund from the  
               FTB at a higher priority than payments to other  
               entities. Secondly, SB 314 recognizes that continuous  
               raiding by the Governor and/or Legislature has left  
               the Victims Restitution Fund (housed under the VCGCB)  
               threatened with insolvency. SB 314 makes clear that  
               the purpose of the VCP is for payment for services  
               directly administered to victims of violent crimes. 
























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          2.    Condition of the Victims of Crime Fund  

                     2007- 2008 Financial summary (in millions)
          
          Beginning Fund Balance                            136.2 
          Revenue 
          Restitution Fines and Fees                        63.1 
          Penalty Assessments                               54.0 
          Restitution Orders                                 7.0 
          Civil or Criminal Violations                       1.9 
          Liens on Civil Suits                               1.2 
          Federal VOCA Grant                                32.1 
          Miscellaneous Revenue                              1.2 
          Subtotal FY 2007-08 Revenue                       160.5 
          Total Reserves and FY 2007-08 Revenue             296.7 
           
          Expenditures 
          Adjusted Claims Payments                          82.1 
          Program Costs 
          Salaries and Benefits                             21.7 
          Joint Powers Contracts                            11.1 
          Criminal Restitution Compact Contracts              2.9 
          Interagency and Other Contracts                     1.8 
          Facilities Operations & Pro Rata                    3.8 
          Data Center and Processing                          4.0 
          Operating Expenses                                  1.5 
          Total Program Costs                                46.8 
           
          Special Appropriations 
          Department of Justice                              6.7 
          Office of Emergency Services                      10.2 
          Ten Percent Rebate Program                         5.7 
          State Controllers Office                                        
          .03 
                                                                                        County Special Elections Costs                      2.6 
          Total Special Appropriations                       25.2 
          Total Expenditures                                154.1 
           
          Ending Fund Balance                               142.6 




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          The fund balance will be reduced by more than  pursuant to the  
          recent budget agreement:

          2008-2009 Transfer to General Fund                - 80
          
          3.  Transfer of $80 Million to the General Fund from Victims Fund  

          As is noted at the end of the tables of the financial condition  
          of the fund, $80 million has been or will be transferred from  
          the Victims of Crime Fund to the General Fund because of the  
          ongoing fiscal-budget crisis.  Further, increased awareness of  
          the fund by victims, better victim assistance in local agencies  
          with "joint powers" agreements with the fund and other pressures  
          on the fund arguably demonstrates a need for more aggressive and  
          complete collection of restitution fines and orders.

          This bill will direct the Controller to deduct delinquent  
          restitution fine amounts from a person's income tax refunds.   
          Child, spousal and family support orders will have greater  
          priority for deductions from a person's income tax refund.   
          Arguably, this bill will allow more efficient and thorough  
          collection of restitution fines without harming the dependents  
          of persons with delinquent restitution fines.




















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          SHOULD THE LEGISLATURE DECLARE THAT MONEY FROM THE VICTIMS OF  
          CRIME FUND SHOULD NOT BE TRANSFERRED TO SUPPORT OTHER PROGRAMS  
          AND THAT VICTIM COMPENSATION FUNDS SHOULD BE DEDICATED TO VICTIM  
          SERVICES?

          IN LIGHT OF PRESSURES ON THE VICTIMS FUND - INCLUDING TRANSFER  
          OF $80 MILLION TO THE GENERAL FUND AS PART OF THE REVISED  
          2008-2009 BUDGET, SHOULD PROVISIONS FOR INCREASING COLLECTION OF  
          DELINQUENT RESTITUTION FINES BE ADOPTED?

          SHOULD SUCH PROVISIONS INCLUDE DEDUCTING DELINQUENT AMOUNTS FROM  
          INCOME TAX REFUNDS?

          4.  Increased Relocation Expenses  

          Under existing laws and rules, a victim may receive a maximum of  
          $70,000 in compensation from the compensation program.  However,  
          there are limits for specific expenses, including a maximum of  
          $2,000 for relocation expenses.  A victim can be compensated for  
          moving twice in response to a single crime.  Further, a victim  
          who has received compensation for relocation after one crime can  
          receive compensation for relocation where necessary after a new  
          crime, if the second crime was committed by a different  
          perpetrator.

          Arguably, circumstances will arise where a victim has reasonably  
          incurred more than $2,000 in relocation expenses.  This bill  
          would allow a victim to receive more than $2,000 in  
          reimbursement in "unusual, dire or exceptional circumstances."   
          The bill does not entitle a crime victim to the additional  
          reimbursement.  The board would determine if such circumstances  
          have been established.

          SHOULD A CRIME VICTIM BE ELIGIBLE FOR REIMBURSEMENT FOR  
          RELOCATION EXPENSES IN EXCESS OF $2,000 IF THE EXPENSES WERE  
          JUSTIFIED BY "UNUSUAL, DIRE OR EXCEPTIONAL CIRCUMSTANCES?"


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