BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 1197 (Pavley) - Restitution: collection by counties.
          
          Amended: April 28, 2014         Policy Vote: Public Safety 7-0
          Urgency: No                     Mandate: No
          Hearing Date: May 19, 2014      Consultant: Jolie Onodera
          
          This bill does not meet the criteria for referral to the  
          Suspense File.


          Bill Summary: SB 1197 would authorize counties to collect  
          restitution orders and restitution fines from any person on  
          postrelease community supervision (PRCS) following release from  
          state prison or mandatory supervision following custody from a  
          felony jail term, as specified.

          Fiscal Impact: 
              Potentially significant increases to the Restitution Fund,  
              dependent upon the level and rate of collection by those  
              counties choosing to collect restitution orders and fines.
              Potentially significant ongoing costs (Local) to local  
              agencies for workload related to the collection of  
              restitution for individuals on PRCS or mandatory  
              supervision. To the extent the authorized 10 percent  
              administrative fee on amounts collected does not fully cover  
              a county's total costs, any additional costs would need to  
              be covered with local funds.
              Minor ongoing costs to the Franchise Tax Board (FTB) for  
              debt collection activities, offset by administrative fee  
              reimbursement through revenues collected.
          
          Background: 2011 Public Safety Realignment provided that  
          individuals sentenced to non-serious, non-violent, or non-sex  
          offenses would serve their felony sentences in county jails  
          instead of state prisons and could be subject to a period of  
          locally-supervised mandatory supervision, as specified.  
          Additionally, 2011 Realignment provided for specified felons to  
          be supervised locally under PRCS instead of state parole  
          immediately following release from state prison. However, the  
          legislation implementing 2011 Realignment did not provide local  
          agencies with the authority to collect restitution fines and  
          orders from realigned felons while incarcerated in county jail  








          SB 1197 (Pavley)
          Page 1


          and subsequently while under local supervision. 

          SB 1210 (Lieu) Chapter 762/2012 provided the authority for  
          counties to collect restitution from offenders while in local  
          custody, but did not extend the authority for county officials  
          to collect and distribute unpaid restitution to include persons  
          released on PRCS following release from state prison or  
          mandatory supervision following custody from a felony jail term.  
          This bill seeks to provide this authority. 

          Proposed Law: This bill would authorize counties to collect  
          restitution orders and restitution fines from any person on PRCS  
          following release from a state prison term or mandatory  
          supervision following the custody portion of a split felony jail  
          term, as specified:
                 Provides that determination of whether a county will  
               collect restitution from persons on PRCS and mandatory  
               supervision shall be made by the board of supervisors,  
               which shall designate the agency to perform collections.
                 Provides a discretionary process for counties to collect  
               restitution orders and fines that parallels the system for  
               collection of restitution from prison inmates, as  
               specified.
                 Provides that payment of direct restitution and a  
               restitution fine shall be a condition of PRCS or mandatory  
               supervision.
                 At its discretion, provides that a county board of  
               supervisors may impose a fee to cover the actual  
               administrative cost of collecting the restitution, not to  
               exceed 10 percent of the amount collected, the proceeds of  
               which shall be deposited in the general fund of the county.

          Related Legislation: SB 1210 (Lieu) Chapter 762/2012, among  
          other provisions, authorizes the collection of restitution fines  
          and orders from realigned felons, as specified, by agencies  
          designated by local boards of supervisors in which offenders are  
          incarcerated. 

          Staff Comments: This bill establishes county authority to  
          collect outstanding restitution fines and orders for persons on  
          PRCS following release from state prison or mandatory  
          supervision following custody from a felony jail term. This bill  
          will result in an unknown but potentially significant amount of  
          increased revenue to the Restitution Fund. 








          SB 1197 (Pavley)
          Page 2



          Staff notes that this bill provides authority for counties to  
          collect restitution from persons released on PRCS, however this  
          authority currently exists with CDCR under RTC � 19280, as CDCR  
          may refer a restitution order to the FTB for any person subject  
          to a restitution order who is or has been under the jurisdiction  
          of the CDCR. In an effort to avoid the potential over-collection  
          of restitution owed from an offender, staff recommends an  
          amendment to require a county that elects to collect restitution  
          to coordinate with the FTB.

          Any additional costs to FTB associated with the provisions of  
          this bill are estimated to be minor and reimbursable through  
          administrative fee collections. FTB indicates the counties are  
          already set up to refer these debts.

          Recommended Amendments: To provide additional flexibility to  
          counties in their ability to collect outstanding restitution  
          fines and restitution orders, as well as to minimize the  
          potential for over-collection from persons on PRCS for whom CDCR  
          has referred the outstanding restitution for collection to FTB,  
          staff recommends the following amendments:

          Amend PC � 2085.6, to add a new subdivision (f)
           (f) A county that elects to collect restitution fines and  
          restitution orders pursuant to this section shall coordinate  
          efforts with the Franchise Tax Board pursuant to Section 19280  
          of the Revenue and Taxation Code.


           Amend Revenue and Taxation Code � 19280 as follows:  


          (a) (1) Fines, state or local penalties, bail, forfeitures,  
          restitution fines, restitution orders, or any other amounts  
          imposed by a juvenile or superior court of the State of  
          California upon a person or any other entity that are due and  
          payable in an amount totaling no less than one hundred dollars  
          ($100), in the aggregate, for criminal offenses, including all  
          offenses involving a violation of the Vehicle Code, and any  
          amounts due pursuant to Section 903.1 of the Welfare and  
          Institutions Code may, no sooner than 90 days after payment of  
          that amount becomes delinquent, be referred by the juvenile or  
          superior court, the county, or the state to the Franchise Tax  








          SB 1197 (Pavley)
          Page 3


          Board for collection under guidelines prescribed by the  
          Franchise Tax Board. Unless the victim of the crime notifies the  
          Department of Corrections and Rehabilitation  or county  to the  
          contrary, the Department of Corrections and Rehabilitation  or  
          county  may refer a restitution order to the Franchise Tax Board,  
          in accordance with subparagraph (B) of paragraph (2), for any  
          person subject to the restitution order who is or has been under  
          the jurisdiction of the Department of Corrections and  
          Rehabilitation  or county  .