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California Prisoners Now Able to Earn Interest on Funds Held In Their Trust Account

On August 1, 2008, California Governor Arnold Schwarzenegger signed Assembly Bill 439 into law. The bill, enacted in response to Schneider v. California Department of Corrections 345 F.3d 716 (9th Cir. 2003), amended Section 5008 of the Penal Code and requires the Secretary of the Department of Corrections and Rehabilitation to deposit prisoners' trust funds into interest-bearing accounts, and then to return the interest accrued on those accounts, less expenses incurred, back into individual prisoner trust accounts on a proportional basis depending on the size of each individual account.

In response to AB 439, the secretary adopted section 3099 of Title 15 of the California Code of Regulations on an emergency basis, effective December 16, 2008. See: Schneider v. California Department of Corrections, 345 F.3d 716 (9th Cir. 2003).

Other sources: AB 439; Cal. Code Regs., Tit. 15, section 3099.

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Related legal case

Schneider v. California Department of Corrections