BILL ANALYSIS                                                                                                                                                                                                    �







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              S
                             2011-2012 Regular Session               B

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          SB 1124 (Cannella)                                         4
          As amended April 9, 2012
          Hearing date: April 17, 2012
          Penal Code
          SM:mc

                       PRISONERS' PAYMENT FOR STATE PRISON COSTS  

                                       HISTORY

          Source:  Author

          Prior Legislation: SB 1364 (Harman) - 2010, returned to Sec. of 
          Senate pursuant to SJR 62(a) 
                       AB 113 (Andal) - Chapter 145, Statutes of 1994

          Support: California District Attorneys Association; Crime 
          Victims United

          Opposition:California Judges Association; California Public 
                   Defenders Association; Drug Policy Alliance; Friends 
                   Committee on Legislation; Legal Services for Prisoners 
                   with Children; California Attorneys for Criminal 
                   Justice


                                         KEY ISSUE
           
          SHOULD COURTS BE REQUIRED, IN EVERY CASE IN WHICH A DEFENDANT IS 
          SENTENCED TO COUNTY JAIL OR STATE PRISON, TO HOLD A HEARING TO 
          DETERMINE THE DEFENDANT'S ABILITY TO PAY THE COSTS OF THAT 
          INCARCERATION?





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                                       PURPOSE

          The purpose of this bill is to (a) require courts, in every case 
          in which a defendant is sentenced to county jail or state 
          prison, to hold a hearing to determine the defendant's ability 
          to pay the costs of that incarceration; and (b) require the 
          court to order the defendant, prior to that hearing, to file a 
          statement with the court setting forth his or her assets, 
          liabilities, and income. 

           Current law  provides that if a defendant is convicted of an 
          offense and ordered to serve a period of imprisonment in the 
          state prison, the court may, after a hearing, make a 
          determination of the ability of the defendant to pay all or a 
          portion of the reasonable costs of the imprisonment.  The 
          reasonable costs of imprisonment shall not exceed the amount 
          determined by the Director of Corrections to be the actual 
          average cost of imprisonment in the state prison on a per-day 
          basis.  (Penal Code � 1203.1m (a).)
          
           Current law  provides that the court may, in its discretion 
          before any hearing, order the defendant to file a statement 
          setting forth his or her assets, liability, and income under 
          penalty of perjury.  

           Current law  provides that at the hearing, the defendant shall 
          have the opportunity to be heard in person or through counsel to 
          present witnesses and other evidence and to confront and 
          cross-examine adverse witnesses.  A defendant who is represented 
          by counsel appointed by the court in the criminal proceeding 
          shall be entitled to representation at any hearing held pursuant 
          to this section.  If the court determines that the defendant has 
          the ability to pay all or a part of the costs, the court shall 
          set the amount to be reimbursed and order the defendant to pay 
          that sum to the Department of Corrections for deposit in the 
          General Fund in the manner in which the court believes 
          reasonable and compatible with the defendant's financial 
          ability.  Execution may be issued on the order in the same 
          manner as on a judgment in a civil action.  The order to pay all 




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          or part of the costs shall not be enforced by contempt.  (Penal 
          Code � 1203.1m (b).)
          
           Current law  provides that, at any time during the pendency of an 
          order made under this section, a person against whom the order 
          has been made may petition the court to modify or vacate its 
          previous order on the grounds of a change of circumstances with 
          regard to the person's ability to pay.  The court shall advise 
          the person of this right at the time of making the order.  
          (Penal Code � 1203.1m (c).)
          
           Current law  provides that, if the amount paid by the defendant 
          for imprisonment exceeds the actual average cost of the term of 
          imprisonment actually served by the defendant, the amount paid 
          by the defendant in excess of the actual average cost shall be 
          returned to the defendant within 60 days of his or her release 
          from the state prison.  (Penal Code � 1203.1m (d).)

           Current law  provides that, in determining a defendant's ability 
          to pay, the court shall consider the overall ability of the 
          defendant to reimburse all or a portion of the costs of 
          imprisonment in light of the defendant's present and foreseeable 
          financial obligations, including family support obligations, 
          restitution to the victim, and fines, penalties, and other 
          obligations to the court, all of which shall take precedence 
          over a reimbursement order made pursuant to this section.  
          (Penal Code � 1203.1m (e).)

           Current law  provides that in determining a defendant's ability 
          to pay, the court shall not consider the following:

                 The personal residence of the defendant, if any, up 
               to a maximum amount of the median home sales price in 
               the county in which the residence is located.
                 The personal motor vehicle of the defendant, if 
               any, up to a maximum amount of ten thousand dollars 
               ($10,000).
                 Any other assets of the defendant up to a maximum 
               amount of the median annual income in California.  
               (Penal Code � 1203.1m (f).)




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           This bill  would require judges in every case in which a 
          defendant is sentenced to county jail or state prison, to hold a 
          hearing to determine the defendant's ability to pay the costs of 
          that incarceration.

           This bill  would provide that the reasonable cost of imprisonment 
          in the county jail shall not exceed the amount determined by the 
          board of supervisors to be the actual average cost of 
          imprisonment in the county jail on a per day basis.  
           
           This bill  would require the judge to order the defendant, prior 
          to that hearing, to file a statement under penalty of perjury 
          setting forth his or her assets, liabilities, and income.


                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION
                                      ("ROCA")
          
          In response to the unresolved prison capacity crisis, since 
          early 2007 it has been the policy of the chair of the Senate 
          Committee on Public Safety and the Senate President pro Tem to 
          hold legislative proposals which could further aggravate prison 
          overcrowding through new or expanded felony prosecutions.  Under 
          the resulting policy known as "ROCA" (which stands for 
          "Receivership/Overcrowding Crisis Aggravation"), the Committee 
          has held measures which create a new felony, expand the scope or 
          penalty of an existing felony, or otherwise increase the 
          application of a felony in a manner which could exacerbate the 
          prison overcrowding crisis by expanding the availability or 
          length of prison terms (such as extending the statute of 
          limitations for felonies or constricting statutory parole 
          standards).  In addition, proposed expansions to the 
          classification of felonies enacted last year by AB 109 (the 2011 
          Public Safety Realignment) which may be punishable in jail and 
          not prison (Penal Code section 1170(h)) would be subject to ROCA 
          because an offender's criminal record could make the offender 
          ineligible for jail and therefore subject to state prison.  
          Under these principles, ROCA has been applied as a 
          content-neutral, provisional measure necessary to ensure that 




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          the Legislature does not erode progress towards reducing prison 
          overcrowding by passing legislation which could increase the 
          prison population.  ROCA will continue until prison overcrowding 
          is resolved.

          For the last several years, severe overcrowding in California's 
          prisons has been the focus of evolving and expensive litigation. 
           On June 30, 2005, in a class action lawsuit filed four years 
          earlier, the United States District Court for the Northern 
          District of California established a Receivership to take 
          control of the delivery of medical services to all California 
          state prisoners confined by the California Department of 
          Corrections and Rehabilitation ("CDCR").  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 January 12, 2010, a 
          three-judge federal panel issued an order requiring California 
          to reduce its inmate population to 137.5 percent of design 
          capacity -- a reduction at that time of roughly 40,000 inmates 
          -- within two years.  The court stayed implementation of its 
          ruling pending the state's appeal to the U.S. Supreme Court.  

          On May 23, 2011, the United States Supreme Court upheld the 
          decision of the three-judge panel in its entirety, giving 
          California two years from the date of its ruling to reduce its 
          prison population to 137.5 percent of design capacity, subject 
          to the right of the state to seek modifications in appropriate 
          circumstances.  Design capacity is the number of inmates a 
          prison can house based on one inmate per cell, single-level 
          bunks in dormitories, and no beds in places not designed for 
          housing.  Current design capacity in CDCR's 33 institutions is 
          79,650.

          On January 6, 2012, CDCR announced that California had cut 
          prison overcrowding by more than 11,000 inmates over the last 
          six months, a reduction largely accomplished by the passage of 
          Assembly Bill 109.  Under the prisoner-reduction order, the 
          inmate population in California's 33 prisons must be no more 
          than the following:





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                 167 percent of design capacity by December 27, 2011 
               (133,016 inmates);
                 155 percent by June 27, 2012;
                 147 percent by December 27, 2012; and
                 137.5 percent by June 27, 2013.
               
           This bill  does not aggravate the prison overcrowding crisis 
          described above under ROCA.


                                      COMMENTS

          1.  Need for This Bill  

          According to the author:

               Under existing law, the court in a criminal case has 
               the option to request from a defendant sentenced to a 
               stay in state prison a statement declaring his or her 
               assets, liabilities, and income.  If the court 
               determines that the defendant is able to pay for a 
               portion or all of the costs associated with his or her 
               incarceration, it will set an amount to be reimbursed 
               to the Department of Corrections and Rehabilitation.  
               If it is determined that the person is unable to pay, 
               then no amount will be charged.

               Unfortunately, the court's authority to request a 
               statement and levy an appropriate charge is utilized 
               without any regularity.  Defendants who have the 
               ability to pay for their own stays in prison are not 
               being required to do so.  

               SB 1124 ensures that the court is provided with an 
               accurate assessment of each defendant's ability to 
               pay, so that it may make an appropriate determination 
               as to the amount, if any, to be paid.  This bill would 
               not require the court to assess a fee upon a convicted 
               defendant, nor would it proscribe to the court what 
               that amount should be.




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          2.  What This Bill Would Do  

          Existing law, as detailed above, provides that in cases where 
          the defendant is convicted of a felony and sentenced to state 
          prison, the court may, after a hearing, make a determination of 
          the ability of the defendant to pay all or a portion of the 
          reasonable costs of the imprisonment.  This bill would make such 
          a hearing mandatory in these cases as well as in every case in 
          which the defendant is sentenced to county jail.  If the court 
          determines the defendant has the ability to pay all or some of 
          the costs of their incarceration, the court would order the 
          defendant to pay that amount to the Department of Corrections 
          and Rehabilitation to be deposited in the general fund or to the 
          sheriff for deposit in the county general fund.  

          One issue this raises is whether the cost of holding these 
          hearings in every such case would exceed the amount of money the 
          state or county could ever expect to recover from the number of 
          defendants that the courts determine could pay any amount of the 
          cost of their incarceration.  Most criminal defendants are 
          indigent.  Therefore, in most cases, requiring a hearing would 
          simply add to the costs of the case borne by the state.  
          Additionally, even in those cases where a defendant might have 
          enough assets for the court to find they could pay some or all 
          of the costs of their confinement, any such payment would be 
          subordinate to any restitution payment ordered to the victim.  
          (Penal Code � 1203.1m(e).)  This would further reduce the number 
          of cases in which the state would actually recover any costs 
          from the offender.  

          WOULD REQUIRING COURTS TO ASSESS AN OFFENDER'S ABILITY TO PAY IN 
          EVERY CASE IN WHICH THE DEFENDANT IS SENTENCED TO PRISON END UP 
          COSTING MORE MONEY THAN IT RECOVERS FOR TAXPAYERS?

          3.  Charging Inmates for Room and Board  

          This bill would not require a court to impose any costs of 
          incarceration in any given case, but would require that a 
          hearing be held into the defendant's ability to pay the costs of 




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          their confinement in every case in which the court sentences the 
          defendant to imprisonment in either the county jail or state 
          prison.  Currently, it is left to the court's discretion to 
          determine when it is appropriate to hold such a hearing to 
          determine if these costs could reasonably be imposed.  This 
          raises the question whether there is any evidence that courts 
          are currently abusing their discretion in this regard to such a 
          degree that the Legislature needs to deprive courts of any 
          discretion in determining when it is warranted to hold such a 
          hearing.  

          ARE COURTS ABLE TO EXERCISE APPROPRIATE DISCRETION IN 
          DETERMINING WHEN SUCH HEARINGS SHOULD BE HELD?

          Whether imposing such costs on prisoners is cost-effective and 
          good for public safety in the long run is debatable.  As this 
          story in the Boston Globe describes, in these times of 
          cash-strapped local and state governments, charging prisoners 
          for the cost of their incarceration is an idea that has been 
          proposed in several state legislatures, and the responses have 
          varied.  Some that have imposed such fees have discovered that 
          the cost of collecting the money outweighs the amount they are 
          able to collect.  Others have rejected the idea after 
          considering long-term costs due to the burden such debt can 
          place on inmate's families and the obstacle it can be to the 
          inmates' ability to get back on their feet after they serve 
          their time.

               A one-night stay?  Ninety dollars.  Need to see a 
               doctor?  Ten bucks.  Want toilet paper?  Pay for it 
               yourself.


               In the ever-widening search for extra income during 
               desperate economic times, states across the nation are 
               embracing a new idea: making inmates pay their debt to 
               society not only in hard time, but also in cold, hard 
               cash.






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               In New York, Assemblyman James Tedisco introduced a 
               bill that would charge wealthy criminals $90 a day for 
               room and board at state prisons.  Dubbed the Madoff 
               Bill, after Ponzi schemer Bernard Madoff, the 
               legislation is designed to ease the $1 billion annual 
               cost of incarcerating prisoners.


               Several other states and some cities have gone to 
               great lengths to squeeze money from inmates.


               In Arizona's Maricopa County, which includes Phoenix, 
               Sheriff Joe Arpaio calls himself America's toughest 
               sheriff.  Earlier this year, he said inmates would be 
               charged $1.25 per day for meals.  His decision 
               followed months of food strikes staged by convicts who 
               complained of being fed green bologna and moldy bread.


               In Iowa's Des Moines County, where officials faced a 
               $1.7 million budget hole this year, politicians 
               considered charging prisoners for toilet paper, at a 
               savings of $2,300 per year.  The idea was ultimately 
               dropped.


               A New Jersey legislator introduced a bill similar to 
               New York's, this one based on fees charged by the 
               Camden County Correctional Facility, which bills 
               prisoners $5 a day for room and board and $10 per day 
               for infirmary stays, totaling an estimated $300,000 
               per year.


               In Virginia, Richmond's overcrowded city jail has 
               begun charging $1 per day, hoping to earn as much as 
               $200,000 a year.  In Missouri's Taney County, home to 
               Branson, the sheriff says charging inmates $45 a day 
               will help pay for a new jail.




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               Prisons and jails took some of the biggest cuts this 
               summer when legislators took machetes to their state 
               budgets, trying to slash their way out of an economic 
               morass exacerbated by dwindling tax revenues.  But to 
               civil rights advocates and some law enforcement 
               officials, trying to raise money by charging inmates 
               makes no sense.


               "The overwhelming number of people who end up in 
               prison are poor,'' said Elizabeth Alexander, director 
               of the American Civil Liberties Union's National 
               Prison Project.  Alexander also says such efforts only 
               amount to political window dressing.


               Collecting the fees covers a wide spectrum.  In 
               Richmond, they are deducted from a prisoner's personal 
               account, which contains whatever money relatives send 
               and any cash the suspect had when arrested.  In 
               Arizona, Arpaio, who makes inmates wear pink underwear 
               to increase the humiliation factor, also taps prisoner 
               accounts.  Inmates who have no money still receive 
               food, the sheriff says.


               Other authorities slap the prisoner with a bill upon 
               release from prison.  But it is often hard to collect. 
                In Kansas, Overland Park officials acknowledged 
               collecting only 39 percent of fees.  In Jackson 
               County, Mo., officials discovered they spent more 
               money trying to collect fees than they received from 
               inmates.


               In some cases, it is prisoners' families who shoulder 
               the financial burden.





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               "It's the spouses, children, and parents who pay the 
               fees; they are the people who contribute to prisoners' 
               canteen accounts,'' said Sarah Geraghty of the 
               Southern Center for Human Rights, which successfully 
               opposed an effort earlier this year in Georgia to bill 
               prisoners.

               The money was to be collected by seizing cash in their 
               jail accounts or by filing lawsuits. The proposal also 
               would have denied parole to those who could not make 
               payments after being freed.  (Some States Are Charging 
               Inmates Fees For Prison Stay, Deborah Hastings, 
               Associated Press August 16, 2009.  
               http://www.boston.com/news/nation/articles/2009/08/16/s
               ome_states_charging_inmates_for_stay/)

                
          A recent study by the Brennan Center for Justice at the New York 
          University School of Law found that, while such "user fees" are 
          proliferating, there are many hidden costs to imposing them: 

               Many states are imposing new and often onerous "user 
               fees" on individuals with criminal convictions.  Yet 
               far from being easy money, these fees impose severe - 
               and often hidden - costs on communities, taxpayers, 
               and indigent people convicted of crimes.  They create 
               new paths to prison for those unable to pay their 
               debts and make it harder to find employment and 
               housing as well to meet child support obligations.














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               This report examines practices in the fifteen states 
               with the highest prison populations, which together 
               account for more than 60 percent of all state criminal 
               filings.  We focused primarily on the proliferation of 
               "user fees," financial obligations imposed not for any 
               traditional criminal justice purpose such as 
               punishment, deterrence, or rehabilitation but rather 
               to fund tight state budgets.

               Across the board, we found that states are introducing 
               new user fees, raising the dollar amounts of existing 
               fees, and intensifying the collection of fees and 
               other forms of criminal justice debt such as fines and 
               restitution.  But in the rush to collect, made all the 
               more intense by the fiscal crises in many states, no 
                                                                            one is considering the ways in which the resulting 
               debt can undermine reentry prospects, pave the way 
               back to prison or jail, and result in yet more costs 
               to the public.  
               (Bannon, Nagrecha, Diller, Criminal Justice Debt: A 
               Barrier to Reentry, 2010, Brennan Center for Justice 
               at New York University School of Law, page 1, 
               http://brennan.3cdn.net/c610802495d901dac3_76m6vqhpy.pd
               f)

          According to the Legislative Analyst's Office, the average cost 
          to incarcerate an inmate in a California state prison in 2009-10 
          was $46,700 per year.<1>  Therefore, a state prison inmate who 
          spent five years in prison could be released from prison owing 
          the state $233,500.  Members may wish to consider whether 
          imposing this type of debt, or even a small fraction of it, 
          would be an obstacle to an inmate successfully reintegrating 
          into society, and what implications this might have for public 
          safety.  

          On the issue of these so-called "pay-to-stay" laws, one 
          ---------------------------
          <1> 
          http://www.lao.ca.gov/reports/2011/calfacts/calfacts_010511.aspx




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          commentator observes:

               Foremost among the arguments against pay-to-stay is 
               that it places an additional financial burden upon 
               families already deprived of a wage-earner, especially 
               where these family members, as taxpayers, are already 
               subsidizing the cost of incarceration.  It is true 
               that some pay-to-stay programs take inmates' other 
               financial obligations into account before imposing 
               incarceration costs.  Nevertheless, the result of 
               saddling prisoners with debt, taken together with the 
               overall low level of education among the prison 
               population and the general trend away from providing 
               job training in prison, means that released inmates 
               will find it exceedingly difficult to support their 
               families.  The director of an association for inmate 
               families in Texas described the problem this way: 
               "When you're taking it 


               from the inmate, how are they �sic] going to have the 
               job or employment to do it?  Somebody suffers, and 
               it's going to be the families, the children on 
               welfare, the wife trying to hold down two jobs."  (13 
               Boston University Pub. Int. L.J. 187, 201.)

          DOES IMPOSING THESE FEES PLACE A FINANCIAL BURDEN ON INMATES AND 
          THEIR FAMILIES THAT COULD IMPEDE EFFORTS AT REINTEGRATION INTO 
          SOCIETY?

          WOULD ENCOURAGING COURTS TO IMPOSE THESE FEES ON INMATES MORE 
          OFTEN THAN THEY DO TODAY INCREASE PUBLIC SAFETY?  


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