BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1657
                                                                  Page  1

          Date of Hearing:   May 9, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 1657 (Wieckowski) - As Amended:  March 22, 2012 

          Policy Committee:                              Public Safety 
          Vote:        5-0

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

           SUMMARY
           
          This bill creates an additional $1 penalty assessment on all 
          Vehicle Code violations, other than parking fines, to provide 
          additional support to the Roman Reed Spinal Cord Injury Fund for 
          spinal cord injury research at the University of California.  

          This bill requires collected penalties to be deposited with the 
          county treasurer for transfer to the State Treasurer, to be made 
          available upon appropriation by the Legislature, for allocation 
          to the Roman Reed Spinal Cord Injury Research Penalty Account 
          (created by this bill) within the existing Roman Reed Fund at 
          UC.
            
           FISCAL EFFECT  

           1)Potential increased revenue in the range of $14 million.  
            Extrapolating from about 7 million court abstracts with 
            convictions for typically multiple Vehicle Code violations, 
            which average about two per abstract, in 2009, a $1 penalty 
            assessment on each traffic fine would result in increased 
            revenue of about $14 million, assuming no diminishing returns 
            as a result of changes in judicial behavior, collections, or 
            ability to pay. 

           2)Proliferation of assessments and charges has driven fines 
            steadily upward  . For example, a $500 traffic fine with current 
            assessments is now $1,829, shocking defendants who think $500 
            means $500. A $100 fine is $479.









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           3)Increasing assessments may result in diminishing returns  . 
            Judges have the discretion to reduce the base fine, which then 
            reduces revenue to state and local governments, as well as to 
            assessments. As current penalty assessments quadruple the base 
            fine, increasing fines and assessments may have the unintended 
            consequence of reduced fine collections. In addition, indigent 
            defendants facing large fees may simply be unable to pay, and 
            as a result lose their license and car insurance.  

            As noted by the California Research Bureau (CRB) in its 2006 
            review of penalty assessments, "High penalty assessments may 
            result in higher rates of default by the guilty parties. Some 
            offenders may spend time in jail, or plea for community 
            service, rather than pay the fine and penalty assessment. The 
            end result may be that a substantial amount of fines, fees and 
            revenue is not collected." 


          4)One-time state trial court costs in the range of $200,000 for 
            programming costs.   

          COMMENTS  

           1)Rationale  . Proponents contend the value of funding spinal 
            injury research (the Roman Reed Spinal Cord Injury Research 
            Act) at UC merits an additional $1 penalty assessment. 
            According to the author, some 600,000 Californians live with 
            paralysis and almost half of all reported spinal cord injuries 
            are caused by traffic accidents. The disability, loss of 
            earning power, and loss of personal freedom resulting from 
            spinal cord injury is devastating for the injured individual, 
            and creates a huge financial burden for the State. 

            The Roman Reed Spinal Cord Injury Research Act was created in 
            2000 to fund promising research-driven therapies with the 
            potential to enhance the functionality of people with 
            paralysis. State funding for the Roman Reed Fund has been 
            eliminated, jeopardizing the research that this program 
            undertakes in spinal cord injuries and paralysis.  According 
            to the author, state funding of about $15 million since 2000 
            has leveraged about $60 million in federal research funds.

           2)The Roman Reed research program  was created by AB 750 (Dutra), 
            Statutes of 2000 to support spinal cord injury research. The 
            original five-year program sunset was extended to January 2011 








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            in 2004. State funding (primarily GF) was allocated to UC, and 
            administered by the Reeve-Irvine Research Center (Center) at 
            UC Irvine.

           3)Existing Penalty Assessments  . Existing law provides for a 
            series of intertwined and complex penalty assessments. As 
            noted by the CRB, "California now has dedicated funding 
            streams for over 269 separate court fines, fees, forfeitures, 
            surcharges and penalty assessments that may be levied on 
            offenders and violators." The major assessments include: 

              a)   A state penalty assessment  of $10 for every $10 on every 
               fine, penalty or forfeiture imposed and collected by the 
               courts for all criminal offenses, including vehicle 
               offenses except parking fines. Of the funds collected, 70% 
               goes to the state and 30% to the county. The state portion 
               is distributed as follows: 

                 i)       Fish and Game Preservation Fund: .33% 
                 ii)                                Restitution Fund: 
                   32.02%
                 iii)                               Peace Officers 
                   Training Fund: 23.99%              
                 iv)                                          Driver 
                   Training Penalty Assessment Fund: 25.70%     
                 v)       Corrections Training Fund: 7.88% 
                 vi)      Local Public Prosecutors and Public Defenders 
                   Fund: .78%, not to exceed $850,000
                 vii)     Victim-Witness Assistance Fund: 8.64%
                 viii)    Traumatic Brain Injury Fund: .66%. 

              b)   A county penalty assessment  of $7 for every $10 on every 
               fine, penalty, or forfeiture imposed and collected by the 
               courts for criminal offenses, including vehicle offenses, 
               except parking fines. Proceeds are distributed to funds 
               established by county boards of supervisors: Courthouse 
               Construction, Criminal Justice Facilities Construction, 
               Automated Fingerprint Identification, Emergency Medical 
               Services, DNA.  


             c)   A state surcharge of 20%  on every base fine collected by 
               the court, deposited in the GF.  










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             d)   A State Court Facilities Construction penalty assessment  
               of up to $5 for every $10 upon every fine, penalty or 
               forfeiture collected by the courts for criminal offenses.  


             e)   A court security fee  of $40 on every conviction for a 
               criminal offense for court security.  


             f)   A $4 penalty assessment on every $10  in fines and 
               forfeitures resulting from criminal and traffic offenses 
               and dedicates these revenues to state and local governments 
               for DNA identification and databank implementation.  


             g)   The EMS Fund  provides supplemental financing for local 
               emergency services via a $2 penalty assessment for each $10 
               of traffic fines.  


             h)   An additional $30 for every felony or misdemeanor 
               criminal conviction and $35  for every criminal infraction, 
               including traffic offenses, but not including parking 
               offenses, for the Immediate and Critical Needs Account 
               (ICNA) within the existing State Court Facilities 
               Construction Fund (SCFCF).  


             i)   Emergency air ambulance transportation  assessment of $4.

           4)The CRB found that 86% of penalty assessments are paid by 
            Vehicle Code violators  . Criminal defendants who committed more 
            serious offenses are less likely to have the ability to pay 
            any fines assessed in addition to other punishments such as 
            county jail or state prison sentences.
           5)Judicial Council Evaluating Penalty Assessments  . Pursuant to a 
            2010 budget trailer bill, the Judicial Council has convened a 
            Court-Ordered Debt Task Force to identify and evaluate the 
            fees, fines, forfeitures, penalties, and assessments currently 
            in place. Final recommendations may be available this summer. 

           6)Support  includes UC, which states "The Roman Reed Spinal Cord 
            Injury Research Act has been of enormous importance in terms 
            of advancing research on spinal cord injury and bringing new 
            funding to the state from the National Institutes of Health 








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            (NIH) and other entities."

          7)Opposition includes the California Public Defenders 
            Association, which states, "While there are individual 
            criminal acts that result in spinal cord injury, there is no 
            nexus between such injury and all of the crimes to which this 
            $3 assessment would attach.? 

            "An inevitable side effect of these ballooning fines is that 
            fewer and fewer criminal defendants can afford to pay them. 
            Three quarters of misdemeanor defendants and 90% of felony 
            defendants are indigent, as indicated by the fact they are 
            represented by public defenders or other appointed counsel.  
            When defendants cannot pay the fine it is unconstitutional to 
            imprison them for their poverty, so the fine goes uncollected. 
             

            "In other cases defendants who are already sentenced to jail, 
            but can't afford the monetary portion of their sentence will 
            simply opt to convert the fine to additional jail time, which 
            results in more cost to the government rather than more money 
            in their coffers.  For this reason multiplying penalty 
            assessments are often ineffective as revenue raisers, and 
            sometimes counterproductive." 

           8)Similar legislation by the author, with a $3 surcharge, was 
            held on this committee's Suspense File last year.

          Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081