BILL ANALYSIS                                                                                                                                                                                                    �







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

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          SB 1299 (Wright)                                           9
          As Amended April 16, 2012
          Hearing date: April 24, 2012
          Government Code
          JM:dl

                         VICTIMS OF CRIME COMPENSATION PROGRAM  

                                       HISTORY

          Source:  Author

          Prior Legislation: AB 2413 (Spitzer) - Ch. 571, Stats. 2006
                       AB 105 (Cohn) - Ch. 539, Stats. 2006
                       SB 972 (Poochigian) - Ch. 238, Stats. 2005
                       SB 631 (McPherson) - Ch. 223, Stats. 2004
                       SB 1423 (Chesbro) - Ch. 1141, Stats. 2002
                       AB 2898 (Bowler) - Ch. 1077, Stats. 1996

          Support: California State Sheriffs' Association; California 
                   Commission on Aging; Crime Victims United of California

          Opposition:None known



                                      KEY ISSUES
           
          SHOULD A COUNTY SOCIAL WORKER BE AUTHORIZED TO FILE A CLAIM WITH 
          THE VICTIMS OF CRIME PROGRAM ON BEHALF OF VICTIM OF CHILD ABUSE 
          OR ELDER ABUSE?

          SHOULD CHANGES IN VICTIMS' COMPENSATION REIMBURSEMENT RATES NOT 




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          APPLY TO SERVICES PROVIDED FOR EXPENSES OR "LOSSES" INCURRED UP 
          TO SIX MONTHS AFTER THE EFFECTIVE DATE OF THE RATE CHANGES? 

                                                                (CONTINUED)



          SHOULD REIMBURSEMENT BE MADE FOR AN EXPENSE CLAIM SUBMITTED MORE 
          THAN THREE YEARS AFTER THE EXPENSE WAS INCURRED BY THE VICTIM IF 
          THE EXPENSE WAS INCURRED AS A DIRECT LOSS OF A CRIME FOR WHICH 
          AN APPLICATION HAS BEEN FILED AND APPROVED?

          SHOULD A FOR-PROFIT AGENCY BE ELIGIBLE TO BE A QUALIFIED MENTAL 
          HEALTH SERVICES PROVIDER?



                                       PURPOSE

          The purposes of this bill are 1) to provide that a social worker 
          can submit a claim to the Victims of Crime Program on behalf of 
          the victim of child abuse or elder abuse who cannot file the 
          claim; 2) to provide that rate changes shall not affect 
          reimbursement for services provided for losses incurred within 
          six months of the changes; 3) to provide that a claim for 
          expenses can be paid for expenses incurred more than three years 
          prior to the claim if the expenses were incurred as a direct 
          result of the crime for which an application was approved; and; 
          4) provide that a for-profit agency may be eligible to be a 
          qualified mental health services provider.

           Existing provisions in the California Constitution  state that 
          all persons who suffer losses as a result of criminal activity 
          shall have the right to restitution from the perpetrators of 
          these crimes.  Restitution shall be ordered in every case unless 
          compelling and extraordinary reasons exist to the contrary.  The 
          Legislature shall adopt provisions to implement this section 
          during the calendar year following adoption of this section.  
          (Ca. Const. Art. 1 � 28(b).)





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           Existing law  states legislative intent that a victim of crime 
          who incurs any economic loss as a result of the commission of a 
          crime shall receive restitution directly from any defendant 
          convicted of that crime.  (Pen. Code � 1202.4, subd. (a)(1).)

           Existing law  directs the court to order a defendant to make 
          restitution to the victim or victims of the defendant's crime.  
          The court shall order full restitution for the losses caused by 
          the defendant's crime unless the court finds and states 
          compelling and extraordinary reasons for not doing so.  (Pen. 
          Code � 1202.4, subd. (f).)
           
          Existing law  creates the Victims of Crime Program, administered 
          by the California Victim Compensation and Government Claims 
          Board<1>, 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 and .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<2>, 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 (VCBCB - board) 
          ---------------------------
          <1>  This entity was formerly known as the State Board of 
          Control.  (Govt. Code � 13900 amended by AB 2491 - Ch. 1016, 
          Stats. 2000.)
          <2> For purposes of brevity, the term "victim" includes a 
          "derivative victim" in this analysis where a distinction between 
          these terms is unnecessary. 



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          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 as specified.  The victim may 
            be reimbursed for the expense of his or her out-patient mental 
            health counseling in an amount not to exceed $10,000.  Victims 
            who are not eligible for the up to $10,000 of reimbursement 
            may be eligible to be 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 incurs as a direct result of the 
            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.




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           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, under compelling circumstances, may 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.

           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)
           
          Existing law  provides that the board shall approve or deny 
          applications, based on recommendations of the board staff, 
          within an average of 90 calendar days and no later than 180 
          calendar days of acceptance by the board or victim center.  
          (Gov. Code � 13958.)

                 If the board does not meet the 90-day average standard 
               prescribed in this subdivision, the board shall, 
               thereafter, report to the Legislature, on a quarterly 
               basis, its progress and its current average time of 
               processing applications.  These quarterly reports shall 
               continue until the board meets the 90-day average standard 
               for two consecutive quarters.  .  (Gov. Code � 13958, subd. 
               (a).)

                 If the board fails to approve or deny an individual 
               application within 180 days of the date it is accepted, 
               pursuant to this subdivision, the board shall advise the 
               applicant and his or her representative, in writing, of the 
               reason for the failure to approve or deny the application.  




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               .  (Gov. Code � 13958, subd. (b).)

           Existing law  states the Legislature finds and declares that it 
          is in the public interest to assist residents of the State of 
          California in obtaining compensation for the pecuniary losses 
          they suffer as a direct result of criminal acts.   (Gov. Code � 
          13950.)

           Existing law  (Gov. Code � 13951) defines the following terms:  

                 "Crime" is a crime or public offense, wherever it 
               occurs, which would be a misdemeanor or a felony if the 
               crime had been committed in California by a competent 
               adult.
                 "Crime" includes an act of terrorism, committed against 
               a resident of the state, whether or not the act occurs 
               within California.
                 "Derivative victim" is one who suffers pecuniary loss as 
               a result of injury or death to a victim.
                 "Pecuniary loss" is an economic loss or expense 
               resulting from an injury or death to a victim of crime that 
               has not been and will not be reimbursed from any other 
               source.
                 "Victim" is a person who sustains injury or death as a 
               direct result of a crime.  

           Existing law  provides than an application for compensation shall 
          be filed with the board in the manner determined by the board.  
          (Gov. Code � 13952, subd. (a).)

           Existing law  provides that the application for compensation 
          shall be verified under penalty of perjury by the individual who 
          is seeking compensation, who may be the victim or an individual 
          seeking reimbursement for burial, funeral, or crime scene 
          clean-up expenses pursuant specified sections of the Government 
          Code.  .  (Gov. Code � 13952, subd. (b)(1).)

           Existing law  (Gov. Code � 13955), with specified exceptions, 
          provides that persons eligible for compensation include a victim 
          or a person entitled to reimbursement for funeral, burial or 




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          crime scene clean-up expenses, as specified:

                 Existing law sets out the following specific conditions 
               and requirements for victim compensation.
                 The crime occurred within California whether or not the 
               victim is a resident of California.  This only applies when 
               the board determines that there are federal funds available 
               to the state for the compensation of crime victims.  

           Existing law  states that except as provided by specified 
          sections of the Government Code, a person shall be eligible for 
          compensation when all of the following requirements are met 
          (Gov. Code � 13955):

           The person from whom compensation is being sought is any of 
            the following (Gov. Code � 13955, subd. (a).):

             �    A victim (Gov. Code � 13955, subd. (a)(1).) or a 
               derivative victim.  (Gov. Code � 13955, subd. 
               (a)(2).)

             �    A person who is entitled to reimbursement for 
               funeral, burial or crime scene cleanup expenses 
               pursuant to specified sections of the Government 
               Code.  (Gov. Code � 13955, subd. (a)(3).)

             �    Either of the following conditions is met (Gov. 
               Code � 13955, subd. (b)): The crime occurred within 
               California whether or not the victim is a resident 
               of California.  This only applies when the Board 
               determines that there are federal funds available to 
               the state for the compensation of crime victims.  
               (Gov. Code � 13955, subd. (b)(1).)

             �    Whether or not the crime occurred within the 
               State of California, the victim was any of the 
               following: (Gov. Code � 13955, subd. (b)(2).):

                    o           A resident of the state.  
                      (Gov. Code � 13955, subd. (b)(2)(A).)




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               o      A member of the military stationed in 
                 California.  (Gov. Code � 13955, subd. 
                 (b)(2)(B).)

               o      A family member living with a member 
                 of the military station in California.  
                 (Gov. Code � 13955, subd. (b)(2)(C).)
               �      If compensation is being sought for 
                 derivative victim, the derivative victim is a 
                 resident of California or the resident of another 
                 state who is any of the following (Gov. Code � 
                 13955, subd. (c)): At the time of the crimes was 
                 the parent, grandparent, sibling, spouse, child or 
                 grandchild of the victim.  (Gov. Code � 13955, 
                 subd. (c)(1).)

               �      At the time of the crime was living in the 
                 household of the victim.  (Gov. Code � 13955, 
                 subd. (c)(2).)

               �      At the time of the crime was a person who 
                 had previously lived in the house of the victim 
                 for a person of not less than two years in 
                 relationship substantially similar to a 
                 previously listed relationship.  (Gov. Code � 
                 13955, subd. (c)(3).)

               �      Another family member of the victim 
                 including, but not limited to, the victim's 
                 fianc� or fianc�e, and who witnessed the 
                 crime.  (Gov. Code � 13955, subd. (c)(4).)

               �      Is the primary caretaker of a minor victim, 
                 but was not the primary caretaker at the time of 
                 the crime.  (Gov. Code � 13955, subd. (c)(5).)

                                                             Other 
                                     specified requirements apply.  (Gov. 
                                     Code � 13955, subds. (d)-(g).)




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           Existing law  allows the following victims may be reimbursed for 
          outpatient mental health counseling in an amount not to exceed 
          $5,000.  (Gov. Code � 13957, subd. (a)(2)(B).):

                 A derivative victim not eligible for  reimbursement in 
               the category allowing up to  $10,000; and,
                 A direct victim of the crime of unlawful sexual 
               intercourse, where the victim is under 16 years old and the 
               defendant is over 21 years old; and,
                 A minor who suffers emotional injury as a direct result 
               of witnessing a violent crime and who is not eligible for 
               reimbursement of the costs of outpatient mental health 
               counseling.  To be eligible for reimbursement under this 
               clause, the minor must have been in close proximity to the 
               victim when he or she witnessed the crime.   

           Existing law  provides that when a victim dies as a result of 
          crime, the board may reimburse any individual who voluntarily, 
          and without anticipation of personal gain, pay or assumes the 
          obligation to pay any of the following expenses. .  (Gov. Code � 
          13957, subd. (a)(9).):

                 The medical expenses incurred as a direct result of the 
               crime in an amount not to exceed the rates or limitations 
               established by the board.
                 When the crime occurs in a residence, the reasonable 
               costs to clean the scene of the crime in an amount not to 
               exceed $1,000.
                 The funeral and burial expenses incurred as a direct 
               result of the crimes, not to exceed $7,500. 

           Existing law  provides that the total award to or on behalf of 
          each 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  provides that the board shall grant a hearing to an 
          applicant who believes he or she is entitled to compensation, to 
          contest a staff recommendation to deny compensation.  .  (Gov. 




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          Code � 13959, subd. (a).)

           Existing law  authorizes the board to order reconsideration of 
          its decision on its own motion or on the written request of the 
          applicant.  The board may not consider any request for 
          consideration more than 30 days after personal delivery, or 60 
          calendar days after the mailing, of the original decision.  . .  
          (Gov. Code � 13959, subd. (i).)

           Existing law  provides that no reimbursement may be made for any 
          expense that is submitted more than three years after it is 
          incurred by the victim.  However, reimbursement may be made for 
          an expense submitted more than three years after the date it is 
          incurred if the victim has affirmed the debt and is liable for 
          the debt at the time the expense is submitted for reimbursement, 
          or has paid the expense as a direct result of a crime for which 
          a timely application has been filed.  (Gov. Code � 13957.7, 
          subd. (a).)

           Existing law  provides that compensation made pursuant to this 
          chapter may be on a one-time or periodic basis.  If periodic, 
          the board may increase, reduce, or terminate the amount of 
          compensation according to the applicant's need, subject to the 
          maximum limits provided in this chapter.  (Gov. Code � 13957.7, 
          subd. (b).)

           This bill  provides that a county social worker who represents a 
          child victim or elder abuse victim may file a compensation claim 
          on behalf of the victim if the victim is unable to do so.  The 
          social worker shall not be required to provide personal 
          information about himself or herself as part of the application. 
           

           This bill  provides that changes in reimbursement rates shall not 
          apply to reimbursement for losses incurred up to six months 
          following adoption of the changes.  

           This bill  provides that a for-profit agency may apply to be a 
          qualified mental health service provider to victims.





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                    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 
          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 




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          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:

                 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




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          1.    Need for This Bill  

          According to the author:

               The bill does a number of things to address problems 
               encountered by crime victims, their families and 
               providers of service, by the failure of the California 
               Victim Compensation and Government Claims Board 
               (board) to deliver consistent and timely financial 
               help.

          2.    Changes in this Bill to Victims of Crime Claim Procedures 
          and Policies  

          As introduced, this bill included sweeping and numerous changes 
          to many policies and procedures in the Victims of Crime 
          Compensation Program.  After discussions among the author's 
          staff, the board and representatives of victims' organizations, 
          the bill was amended to include provisions upon which all 
          parties could agree. 

          The provisions in the bill would assist victims in specific 
          circumstances.  First, the bill authorizes a county social 
          worker to file a claim on behalf of victim of child abuse or 
          elder abuse.  Completing an application for compensation and 
          assembling necessary documentation can be a daunting task for 
          any crime victim.  Victims of elder abuse and child abuse face 
          particular difficulties in this regard.  

          Victims' advocates have argued that changing reimbursement rates 
          can make it difficult to find and retain service providers.  The 
          bill extends the time before rate changes take effect, likely 
          easing the process of obtaining needed services for victims.  
          Similarly, allowing victims to obtain services from for-profit 
          entities could assist victims in finding and retaining 
          professional services.  

          3.  Ambiguity and Lack of Clarity in Provision Concerning 
            Effective Date of any Change in Rates of Reimbursement or 
            Service Limits  




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          The bill provides:  "Any changes in maximum rates or service 
          shall not affect payment or reimbursement of losses incurred 
          prior to six months after the adoption of any changes by 
          regulations."  (SB 1299, as Amended 4/16/2012, p. 16, lines 
          12-15.)  This provision is unclear, particularly as to what 
          "losses" means in this context.  

          The author's office has informed Committee staff the provision 
          is intended to apply to situations where a person has contracted 
          for services or has begun treatment with a provider prior to 
          changes in reimbursement rates or service limitations, such as 
          maximum visits for therapy.  This could cause a hardship or 
          serious inconvenience.  For example, a victim has been in 
          physical therapy for injuries suffered in a robbery.  The victim 
          has established a treatment plan and made appointments to 
          address pressing injuries.  A change in reimbursement rates or 
          limits on therapy appointments could seriously disrupt the 
          treatment, perhaps producing negative outcomes.  

          The intention of this bill is to provide that where a rate 
          change or service limit is adopted, the changes shall not affect 
          payments or services for six months after the changes are made.  
          It is suggested that the bill be amended to address the 
          intention of the author.

          SHOULD THE PROVISION IN THE BILL STATING THAT CHANGES IN 
          REIMBURSEMENT RATES AND SERVICE LIMITS ARE NOT EFFECTIVE FOR SIX 
          MONTHS AFTER A LOSS HAS BEEN INCURRED BE AMENDED TO REFLECT THE 
          INTENT OF THE AUTHOR THAT CHANGES WILL NOT BECOME EFFECTIVE FOR 
          SIX MONTHS AFTER AN EXPENSE HAS BEEN INCURRED?

          4.  Audit of the Victims of Crime Program  

          December 2008, the California State Auditor Report on the Victim 
          Compensation Program
          
          The report included the following highlights:

             From fiscal years 2001-02 through 2004-05, program 




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             compensation payments decreased from $123.9 million to $61.6 
             million-a 50 percent decline.
             Despite the significant decline in payments, the costs to 
             support the program have increased.
             These costs make up a significant portion of the Restitution 
             Fund disbursements-ranging from 26 percent to 42 percent 
             annually.
             The program did not always process applications and bills as 
             promptly or efficiently as it could have. We noted staff took 
             longer than 180 days to process applications in two instances 
             out of 49 and longer than 90 days to pay bills for 23 of 77 
             paid bills we examined.
             The program's numerous problems with the transition to a new 
             application and bill processing system led to a reported 
             increase in complaints regarding delays in processing 
             applications and bills.
             Some payments in CaRES appeared to be erroneous. Although 
             board staff provided explanations for the payments when we 
             brought the matter to their attention, the fact that they 
             were unaware of these items indicates an absence of controls 
             that would prevent erroneous payments.
             The board lacks the necessary system documentation for 
             CaRES.
             There are no benchmarks, performance measures, or formal 
             written procedures for workload management.
             Despite the board's efforts to increase awareness of the 
             program, several victim witness assistance centers do not 
             think the public is generally aware of program services. 
             Further, the board has not established a comprehensive 
             outreach plan.


          Victim Compensation and Government Claims Board Response to the 
          Audit

          In a response letter to the audit report by the California State 
          Auditor, the board stated:







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               The audit finds, and we agree, the �board] can make 
               improvements in processing time for applications and 
               payments, developing specific verification procedures, 
               and maintaining documentation.

               The �board] concurs with the recommendation to develop 
               written procedures and time frames for the appeals 
               process.  A new procedure manual, as discussed below, 
               will include this subject.

               The board's ability to process applications and pay 
               bills in a timely manner is dependent upon the timely 
               submittal of key information from verifying entities.  
               To improve �receipt of] such information, the �board] 
               plans to develop a new procedure manual, �with] 
               specific direction to staff for processing 
               applications and bills in CaRES.  The manual will 
               include specific time frames for follow up with 
               non-responsive verifying entities.  ?�T]he �board] has 
               �told] ? service providers the importance of prompt 
               submittal of requested information to the board so 
               that �payments can be timely processed].  Similarly, 
               we are reaching out to law enforcement during our 
               numerous law enforcement outreach seminars.  (Victim 
               Compensation and Government Claims Board:  It Has 
               Begun Improving the Victim Compensation Program, but 
               More Remains to Be Done.  California State Auditor 
               Report 2008-113 at 70, 71 (December 2008).)

          2012 Update of by the State Auditor of the Victims Compensation 
          Program
          
          On January 12, 2012, the State Auditor published an extensive 
          update of its audit of the Victims Compensation Program.  The 
          updated audit noted that many of the recommendations from the 
          2008 audit report had not been implemented.  The report included 
          the following highlights:

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                                                           SB 1299 (Wright)
                                                                      PageQ

          |From January 2005 through October 2010, the State Auditor's               |
          |Office issued 98 reports for audits of state agencies requested           |
          |through the Joint Legislative Audit Committee, legislation, or as         |
          |a result of an investigation. Based on the most recent responses          |
          |from state agencies, we reported the following:                           |
          |                                                                          |
          |                                                                          |
          |       There were 990 recommendations to the audited state agencies in   |
          |     those reports. Although                                              |
          |     state agencies implemented approximately 83 percent of our           |
          |     recommendations, we identified                                       |
          |     168 recommendations made to 32 state agencies that had been          |
          |     outstanding at least one year,                                       |
          |     of which 97 were included in last year's Accountability Act report   |
          |     published in January 2011.                                           |
          |                                                                          |
          |                                                                          |
          |       Based on the most recent responses obtained from state agencies,  |
          |     40 of the 168                                                        |
          |     recommendations outstanding at least one year, and some as long as   |
          |     five years, have                                                     |
          |     now been fully implemented.                                          |
          |                                                                          |
          |       Although some agencies reported that they will begin or           |
          |     continue fully implementing the recommendations within six           |
          |     months, others did not provide an implementation date. Still         |
          |     other agencies either reported that they do not plan to              |
          |     fully implement certain recommendations for several years or         |
          |     they will not implement the recommendations at all. For              |
          |     nearly 16 percent of the recommendations that have not been          |
          |     fully implemented, the department responsible has expressed          |
          |     that it will not implement the recommendation.                       |
          |                                                                          |
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          DO IMPROVEMENTS STILL NEED TO BE MADE IN THE OPERATION OF THE 
          VICTIMS OF CRIME PROGRAM IN ORDER TO BETTER SERVE VICTIMS?

          DO THE PROVISIONS IN THIS BILL PROVIDE SOME RELIEF OR BENEFITS 
          TO CRIME VICTIMS SEEKING ASSISTANCE FROM THE PROGRAM?













                                                           SB 1299 (Wright)
                                                                      PageR

          5.    Fund Balance Issues  

          Disagreements about the condition of the Victims of Crime Fund 
          are common.  Some of the confusion or disagreement about the 
          fund can be traced to the fact that the cash balance in the fund 
          does not reflect the payments the board has approved but not 
          made and payments and expense that the board anticipates it will 
          need to pay over the months ahead. 

          The Legislative Analyst has noted in a recent e-mail to 
          interested parties "that there is a significant difference 
          between the fund balance reported in the budget ($28.4 million 
          at the end of 10-11, $19.3 million projected for the end of 
          11-12) and the cash balance reported by the Controller ($62.2 
          million as of 3/8/12). This was apparently due, at least in 
          part, to an accounting error by DGS<3> (whom the Board contracts 
          with for accounting services.   DGS has reviewed everything and 
          has accounted for most if not all of the discrepancy."



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          <3> Department of General Services