BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 324 (Buchanan)
          
          Hearing Date: 02/13/2012        Amended: 02/07/2012
          Consultant: Jolie Onodera       Policy Vote: Public Safety 6-0
          _________________________________________________________________
          ____
          BILL SUMMARY: AB 324, an urgency measure, would expressly 
          authorize the juvenile court to commit a delinquent ward to the 
          Department of Corrections and Rehabilitation (CDCR) Division of 
          Juvenile Facilities (DJF) if that ward has committed a 
          registerable sex offense, as specified. This bill would 
          authorize the chief of the DJF, with approval of the Director of 
          Finance, to enter into contracts with counties for DJF to 
          provide housing to a ward whose commitment was recalled pursuant 
          to the California Supreme Court's ruling in In re C.H. (2011) 53 
          Cal.4th 94.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2012-13      2013-14       2014-15     Fund
           
          Current DJF            No new state costs. Potentially 
          significant            General
          commitments (65 wards) foregone savings of $1,400 to $1,850
                                 per 10 wards retained at DJF; maximum
                                 one-time foregone savings of $12,000

          Prospective DJF        Potential first-year costs up to 
          $600,General
          commitments*           annual ongoing costs up to $2,300.
                                 Potential cost savings in averted 
          fitnessGeneral**/Local 
                                 hearings, jury trials, and incarceration

          *Annualized costs increase to $7.8 million if 2012-13 Governor's 
          Budget proposal is enacted.       
          **Trial Court Trust Fund
          _________________________________________________________________
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File. 








          AB 324 (Buchanan)
          Page 1



          This bill seeks to address the California Supreme Court's ruling 
          on December 12, 2011, in In re C.H. (2011) 53 Cal.4th 94, that 
          reversed the judgment of the Court of Appeal and ruled that a 
          juvenile court lacks the authority to commit a ward to the CDCR 
          DJF if that ward has never been adjudged to have committed a 
          serious or violent offense described in Welfare and Institutions 
          Code (WIC) section 707(b), even if his or her most recent 
          offense is a sex offense set forth in Penal Code (PC) section 
          290.008(c). 

          Existing law provides that a juvenile court may commit a ward to 
          the DJF if the ward has committed an offense described in WIC 
          section 707(b)  and  is not otherwise ineligible for commitment 
          under WIC section 733 (WIC section 731(a)(4)). Section 707(b) 
          enumerates over 30 serious and violent offenses but is not 
          inclusive of the registerable sex offenses listed in PC section 
          290.008(c). WIC section 733(c) specifies a ward is ineligible 
          for DJF commitment if the ward's most recent offense admitted or 
          found to be true by the court is not described in WIC section 
          707(b), unless the offense is a sex offense set forth in PC 
          section 290.008(c).

          The Supreme Court held that considered together, WIC sections 
          731(a)(4) and 733(c) limit the class of wards who may be 
          committed to the DJF to a ward who has committed an offense 
          listed in section WIC section 707(b)  and  then only if the ward's 
          most recent offense is either an offense enumerated under WIC 
          section 707(b) or a sex offense described in PC section 
          290.008(c). Because the ward identified in In re C.H. was never 
          adjudicated to have committed an offense listed in WIC section 
          707(b), the Court ruled that the juvenile court had no authority 
          to commit the ward to the DJF.

          Juvenile justice reform enacted under budget trailer bills SB 81 
          (Chapter 175/2007) and AB 191 (Chapter 257/2007) shifted 
          responsibility for juvenile court commitments to the counties 
          for all but the most serious youth offenders. Consistent with 
          the intent reflected in statements such as the following from 
          the SB 81 floor analysis, "Juvenile sex offenders are excluded 
          from this change and will not be impacted by this bill," the 
          courts have continued to commit wards to the DJF who have 
          committed sex offenses under PC section 290.008(c), even if the 
          ward has never been adjudged to have committed a WIC section 








          AB 324 (Buchanan)
          Page 2


          707(b) offense. To affect the statutory change expressly 
          authorizing eligibility for DJF commitment for juvenile sex 
          offenders, this bill amends current law to specify the court's 
          authority to commit a ward to the DJF to include a ward who has 
          committed an offense listed in either WIC section 707(b)  or  PC 
          section 290.008(c). 

          The DJF currently houses 65 offenders from over 20 counties 
          whose commitment to DJF could be impacted under the In re C.H. 
          ruling. The cost to retain the 65 wards in DJF throughout their 
          terms is estimated to range from $16 million to $24 million 
          General Fund, based on data from the CDCR Office of Research 
          indicating an estimated average number of months remaining in 
          confinement of 17 to 25 months and an average monthly cost of 
          $14,833. The existing DJF caseload reflects current practice and 
          therefore inclusion in near-term budget projections. 
          Consequently, there are no new state costs to retain the 65 
          wards currently committed to DJF. 

          This bill authorizes the chief of the DJF, with the approval of 
          the Director of Finance (DOF), to enter into contracts with 
          counties to house wards whose commitment is recalled pursuant to 
          In re C.H. The bill does not specify a contract rate per ward, 
          and the CDCR has indicated they are not anticipating any costs 
          or charges to the counties to have DJF furnish housing for these 
          wards. Further, as these wards' commitments will have been 
          recalled, the requirement under current law (SB 92 (Budget and 
          Fiscal Review), Chapter 36/2011) for county payment to the state 
          of $125,000 per ward committed to DJF would not apply. If DOF 
          approval is granted, a level of foregone General Fund savings 
          could be incurred to the extent wards are retained at DJF under 
          contract at no additional cost to the counties but would have 
          otherwise been released to local custody pursuant to In re C.H. 
          and funded through a combination of local and state funds. 

          At this time, it is unknown how many counties may choose to 
          contract back with DJF, as multiple factors specific to each 
          individual case will affect a county's decision to retain or 
          transfer a youth (such as the ward's age and length of time to 
          projected release, sex offender treatment currently provided at 
          DJF, and the availability of comparable treatment and capacity 
          at the local level). Based on the estimated average confinement 
          time remaining at DJF noted above, every 10 wards contracted 
          back to DJF could result in one-time foregone savings of 








          AB 324 (Buchanan)
          Page 3


          approximately $1.4 million to $1.85 million General Fund, up to 
          a maximum of approximately $12 million for all affected wards. 
          This estimate assumes total foregone savings attributable to DJF 
          commitment costs alone would be offset in part by an increase in 
          Youthful Offender Block Grant (YOBG) funds allocated to counties 
          in the absence of this measure for wards retained at the local 
          level. Under current law, the YOBG is funded through a 
          percentage of state sales tax revenues in 2011-12, but will be 
          funded through a transfer from the General Fund in 2012-13 and 
          years thereafter. 

          This bill poses potentially significant future General Fund 
          costs for increased state DJF terms to the extent prospective 
          wards are prosecuted as juveniles and committed to DJF rather 
          than county-level facilities. Clarifying the eligibility 
          criteria for DJF commitment will expand the class of wards 
          eligible for DJF placement due to a PC section 290.008(c) 
          offense who would have been otherwise ineligible pursuant to the 
          In re C.H. ruling. The fiscal impact is uncertain because future 
          costs are dependent upon the behavior and decisions of 
          individual juvenile court judges and district attorneys, the 
          number, age, and prior delinquent history of juvenile offenders, 
          and a specific county's ability and decision to house and treat 
          wards locally in lieu of DJF commitment.

          Based on CDCR data for the prior three years (2009-2011), 22 
          wards per year have been committed to the DJF under PC section 
          290.008(c) absent a WIC section 707(b) offense. The estimated 
          annual per capita cost for a DJF commitment is $178,000 General 
          Fund. Under current law, effective January 1, 2012, counties are 
          required to pay the state an annual rate of $125,000 per ward 
          committed to the DJF. This results in an annual net General Fund 
          cost of $53,000 per ward. First-year costs assuming a steady 
          phase-in of 22 wards over the year would approximate $600,000 
          General Fund. Based on an average length of stay of 23.72 months 
          for these wards (CDCR Office of Research data as of December 31, 
          2011), annualized costs of up to $2.3 million could be incurred 
          for wards who would have been otherwise ineligible for DJF 
          commitment. 

          Staff notes the 2012-13 Governor's Budget proposes to delay 
          collection of the $125,000 fee per ward imposed under SB 92 
          (Chapter 36/2011). Should the proposal be approved by the 
          Legislature and enacted, the State would bear the full cost per 








          AB 324 (Buchanan)
          Page 4


          ward of $178,000 until the delay is lifted, resulting in 
          first-year costs of nearly $2 million and annualized costs of up 
          to $7.8 million General Fund. 

          In the absence of this measure, no increase in YOBG allocations 
          to counties for prospective wards is assumed. Current law 
          specifies the YOBG Average Daily Population (ADP) formula to 
          include wards not committed to DJF pursuant to WIC sections 
          733(c). Consistent with the In re C.H. ruling, prospective wards 
          would not be committed due to their ineligibility under WIC 
          section 733(c) but rather would not be committed by way of not 
          being eligible pursuant to WIC section 731(a)(4). A YOBG 
          adjustment for the existing 65 wards is assumed pursuant to 
          existing law that authorizes inclusion of wards in the ADP 
          formula who have had their DJF commitment recalled.
          This bill may also result in future cost savings to the courts 
          and county jails to the extent that motions in juvenile court to 
          remand cases to adult court are avoided. Cost savings in averted 
          fitness hearings, potential jury trials, extended time in county 
          jail pending court time, and subsequent incarceration could be 
          significant. Minors age 16 years or older accused of committing 
          a felony offense may be tried in adult court subject to various 
          circumstances including age and prior criminal history. Based on 
          age alone, prosecutors could potentially bring a motion in 
          juvenile court to remand the case to adult court for 
          approximately 75 percent of prospective cases. Fewer court 
          resources would be required to adjudicate a juvenile court 
          delinquency matter absent a fitness hearing, regardless of 
          whether the case transfers to criminal court or remains in 
          delinquency court. The magnitude of the fiscal impact would be 
          determined by the behavior of individual prosecutors, the number 
          of fitness hearings held, and the number, duration, and 
          disposition of the cases ultimately transferred to adult court.

          It is unknown at this time the extent to which comparable sex 
          offender treatment is available at the county level for all 
          affected wards. In the absence of this measure, for a county 
          lacking such programming, the interruption of sex offender 
          treatment for existing wards and/or the inaccessibility of 
          adequate treatment for prospective wards could lead to poorer 
          outcomes and risks of future costs associated with recidivism, 
          both at the state and local level.
          
          Under current law, wards committed to DJF who have been 








          AB 324 (Buchanan)
          Page 5


          adjudicated for a registerable sex offense are subject to 
          lifetime sex offender registration. To the extent the current 65 
          DJF commitments are recalled, these wards may be relieved of 
          this requirement, resulting in minor cost savings to the 
          Department of Justice, the courts, and counties related to 
          enforcement. Prospective wards committed to DJF subject to 
          lifetime registration who otherwise would not have been so 
          required absent this bill could place a degree of future cost 
          pressure on local law enforcement, the courts, and local jails 
          related to violations for failure to register over their 
          lifetimes. 
          
          Staff notes the 2012-13 Governor's Budget proposes to cease 
          admissions to DJF effective January 1, 2013. Should the 
          Governor's proposal be approved by the Legislature and enacted, 
          the provisions of this bill enabling future DJF commitments 
          would appear to be rendered inoperable.

          Prior Legislation. SB 81 (Committee on Budget and Fiscal Review) 
          Chapter 175/2007 enacted juvenile justice reform to stop the 
          intake of youthful offenders adjudicated for non-violent, 
          non-serious offenses to the state DJF effective September 1, 
          2007. Juvenile sex offenders were not to be impacted by the 
          realignment to local care and custody. 

          AB 191 (Committee on Budget) Chapter 257/2007 made various 
          modifications to SB 81 (Chapter 175/2007) to ensure that none of 
          the juvenile justice reforms contained in the 2007 Corrections 
          trailer bill affected juveniles adjudicated of specified sex 
          offenses.