SB 1035: Criminal procedure: fines, fees, and restitution.

The California Constitution entitles the victim of a crime to restitution. Existing law requires the court in each criminal case to order a convicted defendant to pay full restitution to the victim and a separate restitution fine, as specified. Existing law requires the order of restitution to include interest at the annual rate of 10%. Under existing law, certain delinquent payments, including payments for fines, fees, and restitution, may be referred to the Franchise Tax Board for collection. Existing law imposes interest on these delinquent payments.

This bill would change the annual interest rate on restitution orders and to the adjusted annual rate, as specified, and not to exceed 10%. The bill would cap the annual interest rate charged by the Franchise Tax Board on certain delinquent payments, including fines, fees, and restitution, to no more than 1%. The bill would additionally require the Franchise Tax Board, when issuing a withholding order for the purpose of fulfilling a restitution order, to use a sliding scale model that considers income and ability to pay to determine the amount to be withheld. The bill would also require an entity collecting money for restitution orders and fines to first use the money to fulfill any restitution order before using it to fulfill any restitution fine or any administrative costs of the agency.