BILL ANALYSIS                                                                                                                                                                                                    �







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              A
                             2013-2014 Regular Session               B

                                                                     2
                                                                     5
                                                                     4
          AB 2545 (Lowenthal)                                        5
          As Amended June 5, 2014
          Hearing date:  June 17, 2014
          Government Code
          JM:mc


                                 VICTIM COMPENSATION:

                      SEXUAL ASSAULT AGAINST MILITARY PERSONNEL  



                                       HISTORY

          Source:  California Coalition Against Sexual Assault

          Prior Legislation: None

          Support: Veterans Caucus of the California Democratic Party;  
                   American Legion, Department of California; AMVETS,  
                   Department of California; Military Officers Association  
                   of America, California Council of Chapters; Veterans of  
                   Foreign Wars, Department of California; Vietnam  
                   Veterans of California; California State Council;  
                   National Association of Social Workers, California  
                   Chapter

          Opposition:None known

          Assembly Floor Vote:  Ayes 73 - Noes 0






                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageB

                                      KEY ISSUES
           
          SHOULD CERTAIN DOCUMENTATION BE ALLOWED FOR CLAIMS MADE TO THE  
          VICTIMS OF CRIME PROGRAM BY MILITARY PERSONNEL?

                                                                (CONTINUED)



          FOR PURPOSES OF CRIME VICTIM COMPENSATION, SHOULD A PERPETRATOR  
          INCLUDE ACTIVE DUTY MILITARY PERSONNEL, A CIVILIAN MILITARY  
          EMPLOYEE, OR A CONTRACTOR OR AGENT OF A PRIVATE MILITARY OR SECURITY  
          COMPANY?



                                       PURPOSE

          The purpose of this bill is to 1) specify in statute that a  
          claim by a person in the military to the Victims of Crime  
          Program  for compensation for sexual assault recovery services  
          can be documented by a report to a military counselor or victim  
          services personnel, statements to a chaplain, attorney or  
          credible witness, a law enforcement report, a restraining order,  
          reports from a specified sexual counselor or licensed therapist,  
          or by other behavior consistent with sexual assault; and 2)  
          define a perpetrator of a sexual assault against a person in the  
          military to include active duty military personnel, or a  
          contractor or agent of a private military or security company.

           Existing law  states that all persons who suffer losses as a  
          result of criminal activity shall have the right to restitution  
          from the perpetrators.  (Cal. Const., art. I, � 28(b)(13).)

           Existing law  requires the court, to order a criminal defendant  
          to pay both a restitution fine and restitution to the victim or  
          victims, if any, in addition to any other penalty provided or  
          imposed under the law.  (Pen. Code � 1202.4, subd. (a)(3).)
           
           Existing law  establishes the Victims Compensation and Government  




                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageC

          Claims Board (VCGCB or board) to operate the California Victim  
          Compensation Program (CalVCP).  (Gov. Code 
          � 13950 et. seq.)  

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

           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 who is  
               any of the following:
                  o         A victim;
                  o         A derivative victim; or
                  o         A person who is entitled to reimbursement for  
                    funeral, burial or crime scene clean-up expenses  
                    pursuant to specified sections of the Government Code.


           Either of the following conditions is met:
                  o         The crime occurred within California, whether  
                    or not the victim is a resident of California.  This  
                    only applies when the VCGCB determines that there are  
                    federal funds available to the state for the  
                    compensation of crime victims; or 

                  o         Whether or not the crime occurred within the  
                    State of California, the victim was any of the  
                    following:
                       �              A California resident;
                       �              A member of the military stationed  
                         in California; or
                       �              A family member living with a member  
                         of the military stationed in California.  

                 If compensation is being sought for derivative victim,  
               the derivative victim is a resident of California, or the  




                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageD

               resident of another state who is any of the following:
                  o         At the time of the crimes was the parent,  
                    grandparent, sibling, spouse, child or grandchild of  
                    the victim;  
                  o         At the time of the crime was living in the  
                    household of the victim;  
                  o         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 a relationship  
                    substantially similar to a previously listed  
                    relationship;
                       �              Another family member of the victim  
                         including, but not limited to, the victim's  
                         fianc� or fianc�e, and who witnessed the crime;  
                         or  
                       �              Is the primary caretaker of a minor  
                         victim, but was not the primary caretaker at the  
                         time of the crime.

           Existing law  authorizes VCGCB to reimburse for pecuniary loss  
          for the following types of losses (Gov. Code � 13957, subd.  
          (a)):

                 The amount of medical or medical-related expenses  
               incurred by the victim, subject to specified limitations;
                 The amount of out-patient psychiatric, psychological or  
               other mental health counseling-related expenses incurred by  
               the victim, as specified, including peer counseling  
               services provided by a rape crisis center;
                 The expenses of non-medical remedial care and treatment  
               rendered in accordance with a religious method of healing  
               recognized by state law;
                 Compensation equal to the loss of income or loss of  
               support, or both, that a victim or derivative victim incurs  
               as a direct result of the victim's injury or the victim's  
               death, subject to specified limitations;
                 Cash payment to, or on behalf of, the victim for job  
               retraining or similar employment-oriented services;
                 The expense of installing or increasing residential  
               security, not to exceed $1,000, with respect to a crime  




                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageE

               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;
                 The expense of renovating or retrofitting a victim's  
               residence or a vehicle to make them accessible or  
               operational, if it is medically necessary; and
                 Expenses incurred in relocating, as specified, if the  
               expenses are determined by law enforcement to be necessary  
               for the personal safety or by a mental health treatment  
               provider to be necessary for the emotional well-being of  
               the victim.

           Existing law  limits the total award to or on behalf of each  
          victim to $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  states that an application shall be denied if VCGCB  
          finds that the victim or derivative victim failed to cooperate  
          reasonably with law enforcement.  However, in determining  
          whether cooperation was reasonable, VCGCB shall consider the  
          victim's or derivative victim's age, physical condition, and  
          psychological state, cultural or linguistic barriers and  
          compelling health and safety concerns.  These concerns include  
          but not limited to, reasonable fear of retaliation or harm  
          jeopardizing the well-being of the victim, victim's family,  
          derivative victim or derivative victim's family.  (Gov. Code �  
          13956, subd. (b)(1).)

           Existing law  provides that a domestic violence claim may not be  
          denied solely because the victim did not make a police report.   
          The board shall adopt guidelines to consider and approve  
          domestic violence claims based on evidence other than a police  
          report.  The evidence may include, but is not limited to,  
          relevant medical or mental health records, or the fact that the  
          victim has obtained a temporary or permanent restraining order.  
          (Gov. Code � 13956, subd. (b)(2).)

           Existing law  states that an application for a claim based on  




                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageF

          human trafficking, as defined, of the Penal Code may not be  
          denied solely because no police report was made by the victim.   
          VCGCB shall adopt guidelines that allow the board to consider  
          and approve applications for assistance based on human  
          trafficking relying upon evidence other than a police report to  
          establish that a human trafficking crime, as defined, has  
          occurred.  That evidence may include any reliable corroborating  
          information approved by the board, including, but not limited  
          to, the following (Gov. Code � 13956, subd. (b)(3)):

                 A Law Enforcement Agency Endorsement was issued, as  
               specified; 
                 A human trafficking caseworker has attested by affidavit  
               that the individual was a victim of human trafficking.

           Existing regulations  provide that a victim has the burden to  
          prove that a crime for which compensation may be paid occurred.   
          Medical or mental health records may not be sufficient to prove  
          the crime occurred.  (2 CCR � 649.38.)

           Existing regulations  provide the following as concerns the  
          responsibility of victims to cooperate with law enforcement:

               (a) A victim or derivative victim shall reasonably  
               cooperate with any law enforcement agency in its  
               investigation of the qualifying crime and the  
               apprehension and prosecution of any person involved in  
               the qualifying crime.
               (b) A victim or derivative victim who knowingly and  
               willingly failed to reasonably cooperate with a law  
               enforcement agency in the investigation of the  
               qualifying crime and the apprehension and conviction  
               of any person involved in the qualifying crime is not  
               eligible for assistance.
               (c) A victim or derivative victim who initially  
               cooperated with a law enforcement agency as required  
               by subsection (a), and was determined to be eligible  
               for assistance, and subsequently knowingly and  
               willingly failed to cooperate with a law enforcement  
               agency, may be found eligible for assistance only  




                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageG

               during the period the victim or derivative victim  
               cooperated with a law enforcement agency. ? (e)  
               Cooperation with a law enforcement agency includes,  
               but is not limited to:
               (1) reporting the qualifying crime;
               (2) completely and truthfully responding to requests  
               for information in a timely manner;
               (3) cooperating with identifying and apprehending any  
               person involved in the qualifying crime; and
               (4) testifying in all proceedings, including  
               restitution proceedings, as required.  (2 CCR �  
               649.59.)

           Existing regulations  concerning proof of a domestic violence  
          crime for which the victim may be compensated provide:

               (a) Factors that may be considered as evidence of a  
               domestic violence qualifying crime include, but are  
               not limited to:
               (1) the perpetrator was prosecuted for the qualifying  
               crime;
               (2) the perpetrator was enrolled in a batterers'  
               program or its predecessor domestic violence diversion  
               program as a result of the qualifying crime;
               (3) a report from law enforcement concluded that a  
               domestic violence crime was committed against the  
               victim;
               (4) a report from a battered women's program  
               corroborates the allegation of domestic violence;
               (5) medical records document injuries consistent with  
               the allegation of domestic violence;
               (6) a law enforcement officer obtained an emergency  
               protective order under Family Code section 6250;
               (7) a report from a law enforcement officer or  
               prosecuting attorney concluded that a crime of  
               domestic violence occurred;
               (8) a violation of probation due to a domestic  
               violence qualifying crime against the victim.
               (b) For the purpose of this section, "domestic  
               violence" shall have the same meaning as in Penal Code  




                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageH

               section 13700(b).  (2 CCR � 649.44.)
           
          This bill  sets out factors that the Victims Compensation and  
          Government Claims Board (VCGCB) shall consider for purposes of  
          determining if a claim qualifies for compensation include, but  
          are not limited to, the evidence of the following:

                 Restricted or unrestricted reports to a military victim  
               advocate, sexual assault response coordinator, chaplain,  
               attorney, or other military personnel;
                 Medical or physical evidence consistent with sexual  
               assault;
                 A written or oral report from military law enforcement  
               or a civilian law enforcement agency concluding that a  
               sexual assault crime was committed against the victim;
                 A notarized report from a sexual assault counselor, as  
               defined in Section 1035.2 of the Evidence Code, licensed  
               therapist, or mental health counselor, stating that the  
               victim is seeking services related to the allegation of  
               sexual assault;
                 A credible witness to whom the victim disclosed the  
               details that a sexual assault crime occurred;
                 A restraining order from a military or civilian court  
               against the perpetrator of the sexual assault; and,
                 Other behavior by the victim consistent with sexual  
               assault.

           This bill  requires, for purposes of this subdivision, the sexual  
          assault at issue to have occurred during military service,  
          including deployment.

           This bill  states, for purposes of this subdivision, the sexual  
          assault may have been committed offbase.

           This bill  defines "perpetrator" as an individual who is any of  
          the following at the time of the sexual assault:

                 An active duty military personnel from the United States  
               Army, Navy, Marine Corps, Air Force, or Coast Guard;
                 A civilian employee of any military branch specified  




                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageI

               above, military base, or military deployment;
                 A contractor or agent of a private military or private  
               security company; or
                 A member of the California National Guard.

           This bill  defines "sexual assault" to include rape, spousal  
          rape, penetration by a foreign object, sodomy, oral copulation,  
          or forcible acts of penetration, as specified.


                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION

          For the last several years, severe overcrowding in California's  
          prisons has been the focus of evolving and expensive litigation  
          relating to conditions of confinement.  On May 23, 2011, the  
          United States Supreme Court ordered California to reduce its  
          prison population to 137.5 percent of design capacity within two  
          years from the date of its ruling, subject to the right of the  
          state to seek modifications in appropriate circumstances.   

          Beginning in early 2007, Senate leadership initiated a policy to  
          hold legislative proposals which could further aggravate the  
          prison overcrowding crisis through new or expanded felony  
          prosecutions.  Under the resulting policy, known as "ROCA"  
          (which stands for "Receivership/ Overcrowding Crisis  
          Aggravation"), the Committee held measures that created a new  
          felony, expanded the scope or penalty of an existing felony, or  
          otherwise increased the application of a felony in a manner  
          which could exacerbate the prison overcrowding crisis.  Under  
          these principles, ROCA was applied as a content-neutral,  
          provisional measure necessary to ensure that the Legislature did  
          not erode progress towards reducing prison overcrowding by  
          passing legislation, which would increase the prison population.  
            

          In January of 2013, just over a year after the enactment of the  
          historic Public Safety Realignment Act of 2011, the State of  
          California filed court documents seeking to vacate or modify the  
          federal court order requiring the state to reduce its prison  
          population to 137.5 percent of design capacity.  The State  




                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageJ

          submitted that the, ". . .  population in the State's 33 prisons  
          has been reduced by over 24,000 inmates since October 2011 when  
          public safety realignment went into effect, by more than 36,000  
          inmates compared to the 2008 population . . . , and by nearly  
          42,000 inmates since 2006 . . . ."  Plaintiffs opposed the  
          state's motion, arguing that, "California prisons, which  
          currently average 150% of capacity, and reach as high as 185% of  
          capacity at one prison, continue to deliver health care that is  
          constitutionally deficient."  In an order dated January 29,  
          2013, the federal court granted the state a six-month extension  
          to achieve the 137.5 % inmate population cap by December 31,  
          2013.  

          The Three-Judge Court then ordered, on April 11, 2013, the state  
          of California to "immediately take all steps necessary to comply  
          with this Court's . . . Order . . . requiring defendants to  
          reduce overall prison population to 137.5% design capacity by  
          December 31, 2013."  On September 16, 2013, the State asked the  
          Court to extend that deadline to December 31, 2016.  In  
          response, the Court extended the deadline first to January 27,  
          2014 and then February 24, 2014, and ordered the parties to  
          enter into a meet-and-confer process to "explore how defendants  
          can comply with this Court's June 20, 2013 Order, including  
          means and dates by which such compliance can be expedited or  
          accomplished and how this Court can ensure a durable solution to  
          the prison crowding problem."

          The parties were not able to reach an agreement during the  
          meet-and-confer process.  As a result, the Court ordered  
          briefing on the State's requested extension and, on February 10,  
          2014, issued an order extending the deadline to reduce the  
          in-state adult institution population to 137.5% design capacity  
          to February 28, 2016.  The order requires the state to meet the  
          following interim and final population reduction benchmarks:

                 143% of design bed capacity by June 30, 2014;
                 141.5% of design bed capacity by February 28, 2015; and
                 137.5% of design bed capacity by February 28, 2016. 

          If a benchmark is missed the Compliance Officer (a position  




                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageK

          created by the February 10, 2016 order) can order the release of  
          inmates to bring the State into compliance with that benchmark.   


          In a status report to the Court dated May 15, 2014, the state  
          reported that as of May 14, 2014, 116,428 inmates were housed in  
          the State's 34 adult institutions, which amounts to 140.8% of  
          design bed capacity, and 8,650 inmates were housed in  
          out-of-state facilities.   

          The ongoing prison overcrowding litigation indicates that prison  
          capacity and related issues concerning conditions of confinement  
          remain unresolved.  While real gains in reducing the prison  
          population have been made, even greater reductions may be  
          required to meet the orders of the federal court.  Therefore,  
          the Committee's consideration of ROCA bills -bills that may  
          impact the prison population - will be informed by the following  
          questions:

                 Whether a measure erodes realignment and impacts the  
               prison population;
                 Whether a measure addresses a crime which is directly  
               dangerous to the physical safety of others for which there  
               is no other reasonably appropriate sanction; 
                 Whether a bill corrects a constitutional infirmity or  
               legislative drafting error; 
                 Whether a measure proposes penalties which are  
               proportionate, and cannot be achieved through any other  
               reasonably appropriate remedy; and,
                 Whether a bill addresses a major area of public safety  
               or criminal activity for which there is no other  
               reasonable, appropriate remedy.


                                      COMMENTS

          1.  Need for this Bill  

          According to the author:





                                                                     (More)



          



                                                        AB 2545 (Lowenthal)
                                                                      PageL

               While existing law requires the California Victim  
               Compensation Program Board to deny an application if  
               they find that the victim failed to cooperate  
               reasonably with a law enforcement agency in the  
               apprehension and conviction of a criminal committing  
               the crime, it also specifies that an application for  
               compensation cannot be denied solely on the basis of  
               specified behavior by the victim, such as failure to  
               make a police report.  These provisions exist for  
               victims of domestic violence and victims of human  
               trafficking. 

               AB 2545 seeks to allow military sexual assault  
               survivors similar considerations to those provided to  
               victims of domestic violence and human trafficking  
               when they apply for restitution with the California  
               Victim Compensation Program.  Under this bill, a  
               report from a sexual assault counselor or licensed  
               therapist could be considered as part of the evidence  
               used to support a claim for restitution.

          2.  Basic Purpose and History of the Victims of Crime Program

           The victims' compensation program (CalVCP) in the Victims  
          Compensation and Government Claims Board (board) was created in  
          1965, the first such program in the country<1>.  VCGCB provides  
          compensation for victims of violent crime.  It reimburses  
          eligible victims for many crime-related expenses.  Funding for  
          the board comes from restitution fines and penalty assessments  
          paid by criminal offenders, as well as federal matching funds.  

          The other core function of the board is to review claims against  
          the state and request payment of claims by the Legislature in  
          annual legislation.  A person must present a claim for damages  
          against the state to the board before filing a lawsuit.<2>

          3.  VCGCB Regulations on Proof of a Domestic Violence Crime are  
            Similar to the Provisions of this Bill Concerning Proof of  

          ---------------------------
          <1> http://www.vcgcb.ca.gov/board/.
          <2> http://www.vcgcb.ca.gov/claims/.



                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageM

            Sexual Assault Against Military Personnel  

          The board promulgates detailed regulations to implement the  
          governing statutes.  The regulations are generally written in  
          everyday English.  As noted above in the "Purpose" section  
          describing existing law, a victim generally must prove that a  
          crime for which compensation is allowed occurred, and the victim  
          must cooperated with law enforcement.

          The regulations concerning proof of domestic violence do not  
          explicitly provide an exception or relaxed standards for  
          cooperation with law enforcement.  Nevertheless, the evidence  
          allowed to prove a domestic violence crime includes a medical  
          report or a report from a battered women's program, in addition  
          to law-enforcement related reports or documentation.  As to  
          other crimes, regulations specifically state that medical  
          reports may not be sufficient to prove a crime.  It can be  
          implied that cooperation with law enforcement for domestic  
          violence might not need to be of the quantity or quality  
          required for other claims.

          Arguably, the expanded documentation required to establish  
          domestic violence reflects the reality that a domestic violence  
          perpetrator likely knows the victim's life so well as to be  
          particularly able to exact retribution for cooperation by the  
          victim with law enforcement.  Further, a domestic violence  
          victim may need to have ongoing interaction of some kind with  
          the perpetrator.  These could often include child custody and  
          care matters.  This bill essentially requires consideration of  
          similar factors in cases where military personnel seek  
          compensation for sexual assault.

          4.  Sexual Assault in the Military - Victims' Experiences and  
          Prosecution Procedures  

          Media reports and congressional proceedings have noted the  
          difficulties military sexual assault victims may have in  
          reporting and seeking justice.  Military law allows a commanding  






                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageN

          officer to dismiss a complaint.<3>  In May, 2014, a bill  
          authored by Senator Kirsten Gillibrand to remove authority over  
          sexual assault and other serious crime prosecutions from the  
          chain of command fell a few votes short of passage.<4> 

          There have been numerous reports of military sexual assault  
          victims being ostracized in their close-knit communities.  This  
          bill appears to provide some redress or compensation for  
          military sexual assault victims who may reasonably be reluctant  
          to make reports of assault because they might suffer additional  
          harm with little support.<5>  The military has instituted a new  
          program of sexual assault counselor-advocates<6>, and the number  
          of sexual assault reports has increased recently perhaps  
          indicating that victims now feel less reluctant to come forward.  
           

          5.    Condition of the Victims of Crime Fund and Payments
           
          Condition of the Restitution Fund and Reserves
          
          The balance and reserve of the Restitution Fund can fluctuate  
          widely.  The reserve for fiscal year 2011-2012 was $28.5  
          million, rising to $70 million in 2012-2013.  By the beginning  
          of 2013-2014, the fund had a reserve of $80 million.  

          The board now projects a structural deficit - defined as a  
          shrinking reserve - for the next two fiscal years.  The fund  
          projects a reserve of $71.5 million for the beginning of fiscal  
          ---------------------------
          <3>  
          http://www.npr.org/2014/03/06/286886153/senate-blocks-military-se 
          xual-assault-reforms.
          <4>  
          http://www.nytimes.com/2014/05/02/us/military-sex-assault-report. 
          html.
          <5>  
          http://www.nytimes.com/2014/03/03/us/military-sex-assault-trial-s 
          howcases-2-approaches-to-prosecution.html.
          <6>  
          http://www.nytimes.com/2014/05/02/us/military-sex-assault-report. 
          html.



                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageO

          2014-2015, dropping to an estimated $61.7 at the beginning of  
          2015-2016.  However, the board's prior projected reserve for  
          2013-14 of $55 million significantly under-projected the  
          reserve, as the actual reserve amount was $80 million.  Board  
          representatives explained that payments to victims and  
          administrative costs were $20 million and $5 million lower than  
          projected respectively.

          6.  Audit of the Victims of Crime Program  

          2008 California State Auditor Report on the Victim Compensation  
          Program
          
          The Bureau of State Audit (BSA) report in 2008 included the  
          following highlights:

           From fiscal years 2001-02 through 2004-05, program  
            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  
            increased.
           Administrative 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.  Board 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.
           The board did not adequately investigate alternative sources  
            of funding for victim reimbursement, such as insurance and  
            public aid.
           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<7> appeared to be erroneous.   
            Although board staff provided explanations for the erroneous  
            payments, the fact that they were unaware of these items  


          --------------------------
          <7> Claim review computer system.



                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageP

            indicated 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.

          2010 Update and Progress Report 
          
          In 2010, BSA found that the program had partially corrected five  
          of the problems noted in the audit and corrected five others.   
          The BSA urged the board to continue correcting the problems  
          noted in the report, for example:

           The board reduced administrative costs, but processing times  
            for claims had increased.
           The board increased collections, but it had not determined  
            whether outreach programs had been successful and  
            satisfaction with the program had increased.  
           The board implemented better training program for employees  
            who examined claims submitted by crime victims.
           The board developed an inventory monitoring system and set  
            performance benchmarks.  The monitoring should improve  
            identification and understanding of eligibility  
            requirements.
           Board training includes an emphasis on alternative funding  
            sources.
           The board completed a chapter on appeals of denials in its  
            manual.
           The board improved its use of the CaRES computer system.   
            However, claims were still more quickly processed in the  
            local agencies with which the board contracts.

          It appears that the BSA has not issued a progress report or  
          update on the program since 2010.  It is not clear what the  
          board has done to address the issues raised in the BSA audit  
          since that time.  Many, if not most, of these issues affect the  
          ability of the board to timely and adequately compensate  
          victims, including the ability to compensate elderly and  
          dependent adult victims of fraud.  The issues will also be  




                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageQ

          addressed in the Appropriations Committee.











































                                                                     (More)










          Payments to Victims in Recent Years
          
          In fiscal years 2006-07 and 2007-08, the board paid victims  
          between $72 million and $79 million.<8>  Victim payments for  
          2008-09 through 2010-2011 rose to $95 million per year.  In  
          fiscal year 2011-2012, the amount fell to approximately $70.5  
          million.  In fiscal year 2012-2013, the board paid victims $64  
          million.  In 2011, the board reduced maximum payments and  
          payment rates for some categories of reimbursement, including  
          funeral expenses and mental health services. 

          7.  Audit of the Victims of Crime Program  

          2008 California State Auditor Report on the Victim Compensation  
          Program
          
          The Bureau of State Audit (BSA) report in 2008 included the  
          following highlights:

           From fiscal years 2001-02 through 2004-05, program  
            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  
            increased.
           Administrative 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.  Board 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.
           The board did not adequately investigate alternative sources  
            of funding for victim reimbursement, such as insurance and  
            public aid.
           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  

          --------------------------
          <8> These dollar amounts are approximated or rounded to the  
          nearest  million.



                                                                     (More)







                                                        AB 2545 (Lowenthal)
                                                                      PageS

            applications and bills.
           Some payments in CaRES<9> appeared to be erroneous.   
            Although board staff provided explanations for the erroneous  
            payments, the fact that they were unaware of these items  
            indicated 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.

          2010 Update and Progress Report 
          
          In 2010, BSA found that the program had partially corrected five  
          of the problems noted in the audit and corrected five others.   
          The BSA urged the board to continue correcting the problems  
          noted in the report, for example:

           The board reduced administrative costs, but processing times  
            for claims had increased.
           The board increased collections, but it had not determined  
            whether outreach programs had been successful and  
            satisfaction with the program had increased.  
           The board implemented better training program for employees  
            who examined claims submitted by crime victims.
           The board developed an inventory monitoring system and set  
            performance benchmarks.  The monitoring should improve  
            identification and understanding of eligibility  
            requirements.
           Board training includes an emphasis on alternative funding  
            sources.
           The board completed a chapter on appeals of denials in its  
            manual.
           The board improved its use of the CaRES computer system.   
            However, claims were still more quickly processed in the  
            local agencies with which the board contracts.

          It appears that the BSA has not issued a progress report or  
          update on the program since 2010.  It is not clear what the  



          ---------------------------
          <9> Claim review computer system.











                                                        AB 2545 (Lowenthal)
                                                                      PageT

          board has done to address the issues raised in the BSA audit  
          since that time.  Many, if not most, of these issues affect the  
          ability of the board to timely and adequately compensate  
          victims, including the ability to compensate elderly and  
          dependent adult victims of fraud.  The issues will also be  
          addressed in the Appropriations Committee.


                                   ***************