Majority
II. DISCUSSION
We granted J.G.'s petition for review.
A. The Court Did Not Err in Ordering Conversion of the Unpaid Restitution Balance to a Civil Judgment.
In 2000, California voters enacted the deferred entry of judgment procedure ( § 790 et seq. ) as part of Proposition 21, the Gang Violence and Juvenile Crime Prevention Act of 1998 (Act). Pursuant to this procedure, as to minors charged with criminal offenses in a section 602 petition who meet specified eligibility criteria, juvenile courts may, "in lieu of jurisdictional and disposition hearings," "grant a deferred entry of judgment with respect to any offense charged in the petition, provided that the minor admits each allegation contained in the petition and waives time for the pronouncement of judgment." (§ 791, subd. (a)(3).) A minor granted deferred entry of judgment is subject to mandatory probation for one to three years. (§§ 791, subd. (a)(3), 794.) If the minor "perform[s] satisfactorily" during that period, "the charge or charges in the wardship petition shall be dismissed and the arrest upon which the judgment was deferred shall be deemed never to have occurred and any records in the possession of the juvenile court shall be sealed ...." (§ 793, subd. (c).)
A minor granted deferred entry of judgment "may ... be required to pay restitution to the victim or victims pursuant to the provisions of" the Welfare and Institutions Code. (§ 794.) Given the facts of J.G.'s offenses, two restitution provisions of the Welfare and Institutions Code are potentially relevant: sections 730.6 and 742.16. The former, which we have called the "general" restitution statute ( Luis M. v. Superior Court (2014) 59 Cal.4th 300 , 307, 173 Cal.Rptr.3d 37 , 326 P.3d 969 ( Luis M. ) ), requires courts to order minors "found to be a person described in Section 602" to, among other things, pay "[r]estitution to the victim or victims." (§ 730.6, subd. (a)(2)(B).) It also mandates that a restitution order issued pursuant to the section "shall
J.G. concedes that section 794"incorporates sections 730.6 and 742.16 for purposes of imposing restitution as a condition of [deferred entry of judgment] probation." Indeed, we have recognized that, by virtue of section 794, restitution may be ordered under sections 730.6 and 742.16 in the deferred entry of judgment context. ( Luis M. , supra , 59 Cal.4th at p. 303, fn. 3, 173 Cal.Rptr.3d 37 , 326 P.3d 969 .) J.G. also concedes that sections 730.6 and 742.16 "contain provisions that allow unpaid restitution to be converted to a civil judgment." He asserts, however, that these conversion provisions do not apply in the deferred entry of judgment context in light of section 793, subdivision (c), which provides, "If the minor has performed satisfactorily during the period in which deferred entry of judgment was granted, at the end of that period the charge or charges in the wardship petition shall be dismissed and the arrest upon which the judgment was deferred shall be deemed never to have occurred and any records in the possession of the juvenile court shall be sealed." This language, J.G. asserts, "unambiguously prohibits conversion of unpaid restitution to a civil judgment," because "[d]eeming the underlying arrest never to have occurred and sealing all the related records - as section 793 commands - and converting unpaid restitution to a civil judgment, are mutually exclusive." For these actions "to coexist there would need to be some type of exception to the arrest deeming and record sealing language," but the statute lists "only one exception," and it applies to determining whether the minor is eligible for a future grant of deferred entry of judgment. "Listing that exception, but not another that allows unpaid restitution to be converted to a civil judgment, is [a] strong indicator that unpaid restitution cannot be converted to a civil judgment."
The United States Supreme Court has applied the relevant language of 42 U.S.C. section 407(a), in several cases, most notably for present purposes in Keffeler . At issue there was whether the State of Washington had violated 42 U.S.C section 407(a) by using SSI benefits it had received as a representative payee on behalf of children in foster care to reimburse itself for some of its foster care expenditures. ( Keffeler , supra , 537 U.S. at p. 375, 123 S.Ct. 1017 .) The key question in resolving this issue, the court stated, was whether Washington's "effort to become a representative payee, or its use of [the children's] Social Security benefits when it acts in that capacity, amounts to employing an 'execution, levy, attachment, garnishment, or other legal process' within the meaning of [ 42 U.S.C. ]§ 407(a)."
5 Section 730.6, subdivision (h)(1), provides in part that "[a] minor's inability to pay shall not be considered a compelling or extraordinary reason not to impose a restitution order, nor shall inability to pay be a consideration in determining the amount of the restitution order." Notwithstanding this provision, throughout this case, the parties have treated J.G.'s ability to pay restitution as relevant under section 742.16, subdivision (a), which directs a court, if it imposes restitution, to (1) "make a finding of the amount ... that would be required to fully compensate the owner and possessor of the property for their damages," and (2) "order the minor or the minor's estate to pay that restitution ... to the extent the court determines that the minor or the minor's estate have the ability to do so , except in any case in which the court makes a finding and states on the record its reasons why full restitution would be inappropriate." (Italics added.) For purposes of this opinion, we therefore will assume that J.G.'s ability to pay restitution is relevant.
In reaching its conclusion, the Keffeler court distinguished two prior decisions in which it had found violations of 42 U.S.C. section 407(a) : Philpott v. Essex County Welfare Bd. (1973) 409 U.S. 413 , 93 S.Ct. 590 , 34 L.Ed.2d 608 , and Bennett v. Arkansas (1988) 485 U.S. 395 , 108 S.Ct. 1204 , 99 L.Ed.2d 455 . ( Keffeler , supra , 537 U.S. at p. 388, 123 S.Ct. 1017 .) These cases, the court explained, "involved forms of legal process expressly prohibited by [ 42 U.S.C.] § 407(a)," i.e., "judicial actions in which a State sought to attach a beneficiary's Social Security benefits as reimbursement for the costs of the beneficiary's care and maintenance." ( Ibid. , italics added.) Thus, "[i]n each case, ... the plain language of [ 42 U.S.C.] § 407(a) barred
Our conclusion is consistent with a number of decisions holding - sometimes based on Keffeler - that 42 U.S.C. section 407(a) or a similar anti-attachment provision does not preclude consideration of benefits in determining the recipient's ability to pay restitution or some other financial obligation. ( In re Lampart (2014) 306 Mich.App. 226 , 856 N.W.2d 192 , 200
III. DISPOSITION
For the foregoing reasons, the Court of Appeal's judgment is reversed and the matter is remanded for further proceedings consistent with this opinion.
We Concur:
CANTIL-SAKAUYE, C. J.
CORRIGAN, J.
LIU, J.
CUÉLLAR, J.
KRUGER, J.
McKINSTER, J.[1]
* Associate Justice of the Court of Appeal, Fourth Appellate District, Division Two, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.
7 In light of this analysis, we need not, and do not, address J.G.'s claim that the total amount of restitution violated the $20,000 per-tort-cap set forth in section 742.16, subdivision (n).
1 All further unlabeled statutory references are to the Welfare and Institutions Code.
O
n June 6, 2012, the Shasta County District Attorney filed a petition under section 602 alleging that J.G. was within the jurisdiction of the juvenile court because he had committed the following offenses: (1) vandalism ( Pen. Code, § 594, subd. (b)(2) ); (2) throwing an object at a vehicle ( Veh. Code, § 23110, subd. (b) ); (3) trespass and damage or removal of highway signs ( Pen. Code, § 602, subd. (f) ); and (4) trespass by entering and occupying property ( Pen. Code, § 602, subd. (m) ). In support of these charges, the petition alleged that J.G. had entered and occupied real property and a structure at Shasta State Historic Park and had defaced, damaged, and destroyed signs, brick walls, wood railings, skylights, and a roof at the park. Accompanying the petition was a filing indicating that J.G. was eligible for deferred entry of judgment. Several months later, the probation department recommended that the court grant deferred entry of judgment subject to several conditions, including J.G.'s payment of restitution in the amount of $30,156.
The court and the parties reached an agreement as to the matter's resolution, which was implemented at a hearing in January 2013. Pursuant to the agreement, J.G. admitted the allegations of an amended petition containing only the first and fourth counts of the original petition: vandalism and trespassing. After reviewing the probation department's proposed terms and conditions, J.G. acknowledged on the record that he had read and understood
At the end of the January hearing, the court also set a date to review J.G.'s performance on probation. Shortly before the January hearing, the probation department had requested a one year extension of J.G.'s probationary term so he could satisfy several unfulfilled probation conditions and the court could "determine a restitution amount." At a review hearing in July, the probation department reported that J.G. had satisfied all terms of probation other than payment of restitution. The court then asked, "How would you like to proceed with the restitution portion?" The prosecutor replied, "Convert to a civil judgment." When asked if she had "[a]ny objection to that," J.G.'s counsel responded: "None, Your Honor, with the understanding that we will be appealing .... I
The second potentially relevant restitution provision is section 742.16, subdivision (a), which provides in relevant part: "If a minor is found to be a person described in Section 602 of this code by reason of the commission of an act prohibited by Section 594... of the Penal Code, and the court does not remove the minor from the physical custody of the parent or guardian, the court as a condition of probation, except in any case in which the court makes a finding and states on the record its reasons why that condition would
J.G.'s arguments are unpersuasive. To begin with, unlike J.G., we find nothing "oblique" about section 794 's reference to "other provisions of" the Welfare and Institutions Code, and nothing "illogical" about concluding, for reasons already explained, that by providing in section 794 that minors granted deferred entry of judgment may be required to pay restitution "pursuant to" - i.e., in conformity with and according to - the provisions of the Welfare and Institutions Code, the Legislature expressly authorized unpaid restitution in the deferred entry of judgment context to be converted to an enforceable civil judgment, as specified in sections 730.6 and 742.16. What we do find illogical - and unpersuasive - is J.G.'s argument that section 793, which does not address restitution, somehow limits section 794 's express incorporation, without limitation, of the other sections in the Welfare and Institutions Code regarding restitution.
Regarding J.G.'s reliance on the absence in the deferred entry of judgment statutes of the "express exception in section 786 that allows unpaid restitution to be converted to a civil judgment," we note first J.G.'s failure to respond to the People's argument that, contrary to the premise underlying J.G.'s argument, section 786 in fact applies in the deferred entry of judgment
For the preceding reasons, we reject J.G.'s argument that the juvenile court erred in converting the amount of unpaid restitution to a civil judgment.[3]
B. The Juvenile Court Did Not Violate Federal Law By Considering J.G.'s SSI Benefits.
J.G.'s second claim is that the juvenile court, in determining his ability to pay restitution, violated federal law by considering the SSI benefits he received.[4] He relies on
2 Our conclusion renders it unnecessary to address the People's claim that J.G.'s actions below estop him from arguing on appeal that the deferred entry of judgment statutes preclude conversion of unpaid restitution to a civil judgment. It also necessarily defeats J.G.'s related claim that, because the restitution obligation "ceases to exist" when the minor "completes" the deferred entry of judgment procedure, the court was required to set restitution in an amount that he could repay during the deferral period. Charles S. , which J.G. cites in support of his argument, is inapposite. There, we held that a probation officer abused his discretion by ordering restitution in an amount that rendered the minor ineligible for informal probation because it was "conceded[ly] ... beyond the family's ability to pay." ( Charles S. , supra , 32 Cal.3d at p. 751, 187 Cal.Rptr. 144 , 653 P.2d 648 .) Here, the total restitution amount the court ordered did not render J.G. ineligible for the deferred entry of judgment procedure.
3 J.G. also argues in his briefs that the juvenile court erred by considering the benefits his father received under the Social Security Disability Insurance Program (SSD). The record shows that he did not make this argument in the juvenile court. On the contrary, he argued that decisions involving SSD payments, as opposed to SSI payments, have "only marginal relevance to [his] case." Moreover, it was his own counsel who first elicited testimony regarding his father's SSD payments. Nor did J.G. raise the issue in the Court of Appeal, and the Court of Appeal's opinion consequently did not address it. We therefore decline to consider his argument.
In light of Keffeler , J.G.'s claim that consideration of his SSI benefits in determining his ability to pay constitutes "legal process" for purposes of applying 42 U.S.C. section 407(a) is unpersuasive.[7] Although such consideration did, "in the abstract," involve "legal process" ( Keffeler , supra , 537 U.S. at p. 384, 123 S.Ct. 1017 ) - a judicial proceeding in which a court determined J.G.'s ability to pay restitution - as Keffeler held, 42 U.S.C. section 407(a)"uses the term 'other legal process' far more restrictively" ( Keffeler , at p. 384, 123 S.Ct. 1017 ) - i.e., "process much like the processes of execution,
6 "For obvious reasons," J.G. "do[es] not contend" that considering his SSI benefits in determining his ability to pay restitution "involve[s] any execution, levy, attachment, or garnishment." ( Keffeler , supra , 537 U.S. at p. 383, 123 S.Ct. 1017 .) This act, like Washington's efforts in Keffeler , "do[es] not even arguably employ any of these traditional procedures." ( Ibid. )
J.G. cites several decisions to support his position, but they do not persuade us to adopt his view that 42 U.S.C. section 407(a) precludes all consideration of SSI benefits "for purposes of assessing a defendant's ability to pay restitution." In In re S.M. (2012) 209 Cal.App.4th 21 , 30, 146 Cal.Rptr.3d 659 , the court held that the juvenile court had erred by considering SSI benefits in determining a person's ability to pay legal fees in a dependency case. However, the court rested its decision entirely on a state statute and did not even cite 42 U.S.C. section 407(a) in its opinion. ( In re S.M. , at p. 570, 146 Cal.Rptr.3d 659 ["California law is clear that SSI benefits are not considered income for purposes of determining child support obligations."].) Thus, the court in In re S.M. did not, as J.G. asserts, hold that considering SSI benefits in determining ability to pay violates "the federal anti-attachment provisions."
In In re Cranmer (10th Cir. 2012) 697 F.3d 1314 , 1315, the court held that a Chapter 13 bankruptcy debtor, in submitting a proposed repayment plan, may exclude SSI benefits in calculating his projected disposable income. However, the
In State v. Eaton (2004) 323 Mont. 287 , 99 P.3d 661 , 666, the court held that an order requiring the defendant to make restitution payments equal to 20 percent of his net monthly income "conflicted with" 42 U.S.C. section 407(a) insofar as it required his social security benefits to be included in his net income. The order, the court stated, "improperly burden[ed] [the defendant's] social security benefits" and constituted "an improper attempt to subject" them "to 'other legal process.' " ( Eaton , at p. 666.) In response to the state's view that the defendant could simply "raise this defense at the time [the state] would seek a levy," the court stated, "it is appropriate to eliminate the offending condition from the judgment in the first instance." ( Ibid. ) Given this response, it is unclear whether the Eaton court held that a court may not order a defendant to make payments with social security benefits - a proposition with which the People here do not disagree - or that a court may not consider SSI benefits in determining a defendant's ability to pay restitution - which is the proposition for which J.G. cites Eaton . Insofar as it speaks to the latter issue, its summary analysis is unpersuasive and out of step with the weight of authority, as set forth above.
Finally, in City of Richland v. Wakefield (2016) 186 Wash.2d 596 , 380 P.3d 459 , 461-467 ( Wakefield ), the court vacated an order requiring a homeless, disabled, and indigent defendant, whose only income was $710 per month in SSI payments, to pay $15 each month to reimburse the state for the cost of her prosecution. As J.G. observes, the court relied in part on 42 U.S.C. section 407(a). ( Wakefield , at pp. 465-466.) However, this discussion was dictum because it was preceded by the court's conclusion that the order violated state law in numerous ways ( id. at pp. 464-465 ) and was followed by the court's conclusion that substantial evidence did not support the factual findings on which the order was based ( id. at p. 466 ). Moreover, the entire opinion was advisory because the parties had agreed that, as a matter of state law, the order was erroneous and the defendant's reimbursement payments should be remitted, and they had asked the court to remand the case for entry of an order remitting the payments. ( Id. at pp. 461, 463.) The court itself explained that it was "nonetheless" ( id. at p. 463 ) discussing the claim's merits at the "request" of the parties "to provide guidance ... in the future" ( id. at p. 461 ).
We agree with the People that the record indicates the juvenile court "was contemplating the social security money as the source of the restitution payments." As earlier detailed, in its prefatory remarks, the court discussed only matters related to
The matter again came on for hearing on January 29, 2014. At the beginning of the hearing, the court announced its finding that J.G. had the ability to pay restitution, explaining: "[J.G.] receives ... approximately 750 dollars a month. It's between 733 and 766, depending on the testimony and records. He receives from SSI for his [attention deficit hyperactivity disorder (ADHD) ] and this sum is received monthly. [¶] After hearing the testimony, it revealed that the money was not provided with any restrictions on how it was to be spent. There is no requirement that he spend this money as the result of his ADHD for educational purposes, for treatment, whether it be psychological or medical, no requirement that he take any medications. And as a matter of fact, there is no requirement that this money be spent at all to alleviate the problems that he suffers from, from his ADHD. In fact, the testimony was that the money was spent by the parents for general household expenses. Some of it [is] spent on him, but basically whatever was necessary, it was spent on. And after having read and considered the briefs and arguments, I find that he does have the ability to pay."
J.G.'s counsel asked to "be heard" regarding the ruling, but the court denied the request and announced, "Now, we need to set a restitution hearing." J.G.'s counsel responded that she wanted to challenge the court's ruling on J.G.'s ability to pay through "an immediate writ" because she believed that federal law precluded using SSI payments to pay restitution. She then explained, "What I would like to do is provisionally agree to whatever amount, reserving the right to have a restitution hearing." She later added: "What I would
J.G. finds fault with this analysis. It is "illogical," he asserts, to conclude that " section 794 's oblique reference to 'other provisions of this code' somehow incorporated a restitution conversion provision that provides an additional exception to section 793's broad protections. When the drafters want[ ] to allow unpaid restitution to survive the dismissal of the 602 petition, they know how to say so clearly." J.G. points in particular to section 786, which provides in subdivision (a) that when "a person who has been alleged or found to be a ward of the juvenile court satisfactorily completes (1) an informal program of supervision pursuant to Section 654.2, (2) probation under Section 725, or (3) a term of probation for any offense, the court shall
J.G.'s argument is unpersuasive because reading section 793 to incorporate the conversion provisions of section 730.6 and 742.16 is fully consistent with the voters' intent, as disclosed by the statement on which J.G. relies, to further rehabilitation by holding minors "accountable" for their offenses. (Voter Information Guide, Primary Elec. (Mar. 7, 2000) text of Prop. 21, § 2, subd. (j), p. 119.) As we have explained, "[a]n order of direct victim restitution" under these provisions "acts to make the victim whole, rehabilitate the minor, and deter future delinquent behavior." ( Luis M ., supra , 59 Cal.4th at p. 305, 173 Cal.Rptr.3d 37 , 326 P.3d 969 ; see People v. Anderson (2010) 50 Cal.4th 19 , 34, 112 Cal.Rptr.3d 685 , 235 P.3d 11 [requiring payment of restitution "renders defendant accountable for the financial harm he caused and contributes to his reformation and rehabilitation"]; Charles S. v. Superior Court (1982) 32 Cal.3d 741 , 747, 187 Cal.Rptr. 144 , 653 P.2d 648 ( Charles S. ) ["a requirement of restitution may serve a rehabilitative function consistent with the purposes of Juvenile Court Law"].) "[R]estitution serves valid ... rehabilitative objectives by ... helping [offenders] appreciate the harm done to the victim" ( People v. Cookson (1991) 54 Cal.3d 1091 , 1097, 2 Cal.Rptr.2d 176 , 820 P.2d 278 ) and "holding [them] accountable for [their] actions" ( In re J.S. (2016) 6 Cal.App.5th 414 , 421, 211 Cal.Rptr.3d 405 ). Thus, contrary to J.G.'s argument, reading section 793 to incorporate the conversion provisions of sections 730.6 and 742.16 serves the voters' intent, as reflected by the statement J.G.
4 42 U.S.C. section 407 addresses payments made under Title II of the Social Security Act, which is the Old-Age, Survivors, and Disability Insurance plan of benefits. 42 U.S.C. section 1383(d) makes it applicable to SSI benefits paid under Title XVI of the Social Security Act.
Relying on Wakefield while ignoring In re Lampart , J.G. argues that "where, as here, an individual's only source of 'income' is Social Security benefits," "a distinction between treating Social Security benefits as income to assess an individual's ability to pay restitution and requiring their use to pay restitution ... is a distinction without a difference." The People respond that J.G.'s argument "overlooks the fact that, among other things, a court can consider ... a minor's future earning capacity, i.e., ability to obtain employment, when determining whether he or she has an ability to pay."
In light of developments at oral argument, we need not take a position on these competing views in order to dispose of this case. Refining their position, the People stated during oral argument that the ability to pay determination in this case would be "improper" if the juvenile court "was
Cases cited
- Luis M. v. Superior Court 59 Cal.4th 300 p. 832
- Washington State Department of Social & Health Services v. Guardianship Estate of Keffeler 123 S.Ct. 1017 p. 837, p. 838, p. 839, p. 880, p. 881, p. 1116, p. 1117, p. 1118
- Philpott v. Essex County Welfare Board 409 U.S. 413 p. 838
- Bennett v. Arkansas 485 U.S. 395 p. 838
- Rodriguez v. American Technologies, Inc. 136 Cal.App.4th 1110 p. 875
- Samarkand of Santa Barbara, Inc. v. County of Santa Barbara 216 Cal.App.2d 341 p. 875
- Traverso v. People ex rel. Department of Transportation 6 Cal.4th 1152 p. 877
- County of San Diego v. S.P. 209 Cal.App.4th 21 p. 882
- People v. Superior Court 13 Cal.4th 497 p. 1114
- People v. Anderson 50 Cal.4th 19 p. 1115
- Charles S. v. Superior Court 32 Cal.3d 741 p. 1115
- People v. Cookson 54 Cal.3d 1091 p. 1115
- People v. J.S. 6 Cal.App.5th 414 p. 1115