California Code of Regulations
Title 15 - Crime Prevention and Corrections
Division 3 - Adult Institutions, Programs and Parole
Chapter 1 - Rules and Regulations of Adult Operations and Programs
Subchapter 2 - Incarcerated Person Resources
Article 1.5 - Incarcerated Person Wages and Deductions
Section 3099 - Trust Account Interest

(a) Beginning January 1, 2009, interest earned on Trust Account deposits shall be distributed to qualifying incarcerated persons' trust accounts based upon the average daily balance in their trust account. A qualifying incarcerated person is one who has provided a Social Security Account Number or a Taxpayer ID Number and that number has been validated with either the Social Security Administration or Internal Revenue Service.

(b) Interest will be distributed in whole penny increments. (Interest will not be rounded up to the next penny).

(c) Trust Account funds shall be deposited into an interest bearing account within the California State Treasury.

(d) The State Treasury account bears interest quarterly. Operational costs shall be deducted from the interest earned on that account prior to disbursal of the remainder to qualifying trust accounts on a monthly basis. The interest rate paid to incarcerated persons will be determined by reducing the rate earned to a rate that will allow maximum distribution of available interest to qualifying incarcerated persons. The rate paid will not exceed the rate earned.

(e) Incarcerated persons with validated U. S. Social Security Account numbers or validated Tax ID numbers shall be eligible to receive interest.

(f) Incarcerated persons who have received $10 or more interest during a tax year shall have a Form 1099INT filed by CDCR.

(g) Interest distribution shall occur monthly and be subject to all normal debts and obligations including restitution.

(h) Costs for providing interest such as charges by Social Security Administration for validation of Social Security Numbers, cost of forms for reporting, and mailing costs will be deducted from the interest earned prior to distribution to incarcerated persons.

(i) The balance of the interest earned is the amount remaining after distribution of whole penny increments plus interest earned on non-qualifying trust accounts less cost of providing interest. The balance of interest earned remaining at the end of a fiscal year shall be deposited into the Incarcerated Welfare Fund for the benefit of all incarcerated persons.