Responsibility for Repayment of Victim Funds
According to California law, CalVCP can only reimburse victims for crime-related expenses if there are no other sources of reimbursement. If CalVCP reimburses a victim for losses and another source of funds becomes available due to the same criminal incident, CalVCP must be reimbursed.
This information is intended to help CalVCP claimants and attorneys understand the requirements for repaying victim compensation when another source of reimbursement has become available (i.e. workers' compensation, vehicle insurance or lawsuit settlement, etc.).
Repayment Details
The VCGCB is entitled to be repaid when a recipient of victim compensation funds receives a judgment, award or settlement for their crime-related expenses. The amount of repayment will not exceed the amount of compensation granted.
The VCGCB must be given notice and opportunity to collect repayment before the related settlement funds are disbursed.
If a recipient of victim compensation receives reimbursement from another source due to the same criminal incident, or initiates a lawsuit for monetary damages or reimbursement through an insurance claim, the recipient or his or her attorney must notify the VCGCB within 30 of filing any action or submitting a claim.
California law gives the VCGCB statutory lien rights on any settlement or funds received by the compensation recipient that are related to the same criminal incident.
In order to apply for and receive victim compensation, all applicants must agree to the above reporting requirements.
Payments to the VCGCB should be sent to:
VCGCB
Attn: Accounting Section
P.O. Box 1348
Sacramento, CA 95812-1348
For more information about what to do when the VCGCB has indicated repayment is required, select the link below:
Civil Lawsuits
The recipient of victim compensation or his or her attorney must notify the VCGCB within 30 days of initiating any civil lawsuit that is related to the crime for which victim compensation has been or is being paid.
Written notification to the VCGCB must contain the following information and documents:
- Names and addresses of all parties named in the lawsuit, except for those persons represented by an attorney, in which case include only the name and address of the attorney.
- The nature of the claim asserted or action brought.
- The full title of the case, including the identity of the court or agency, the county where the lawsuit is filed, and case or docket number.
- Settlement documents.
The victim compensation recipient or attorney will be mailed information explaining the necessary steps and options available to satisfy the payment obligation, if any.
Workers’ Compensation Claims
The VCGCB must be provided with proper notice of any workers’ compensation claim related to the same incident or injuries for which victim compensation has been paid or is being paid.
All forms of workers’ compensation may be subject to repayment and/or a lien, including but not limited to:
- Temporary disability
- Permanent disability
- Proceeds of a compromise and release (C&R)
- The far end of the Stipulation with Request for Award (STIP)
Vehicle Insurance Claims
The VCGCB must be provided with proper notice of any vehicle insurance (automotive, boat, motorcycle, aircraft, etc.) claim related to the same injuries for which victim compensation has been paid or is being paid.
- Notification of intent to file a vehicle insurance claim must include the following:
- Names and addresses of all parties in the claim.
- Names and addresses of all insurance companies.
- Nature of the claim or action brought.
Insurance company information must also include the names of the adjustors, addresses, phone numbers and all policy/claim numbers.
Special Note to Attorneys
Attorneys and/or victim compensation recipients who receive crime-related reimbursements including, but not limited to, civil lawsuits, workers’ compensation, or vehicle insurance, must contact the VCGCB Revenue Recovery Section within 30 days of filing an action.
- If the settlement or reimbursement has been distributed and the obligation to repay the VCGCB is disregarded, then it will be considered an overpayment. The VCGCB has contracted with the California Franchise Tax Board (FTB) to recover the money through garnishment and will pursue all legal remedies available.
- Attorneys who participate in the distribution of crime-related settlement proceeds without first giving the VCGCB notice and reasonable opportunity to perfect and satisfy the VCGCB’s lien, may be held liable for the loss and subject to litigation. The State Bar may also be notified.
For More Information
For more information about which documents to include for notification, questions about repayment , a lien or a demand letter call the VCGCB Revenue Recovery Section at (916) 491-3766, e-mail us at liens@vcgcb.ca.gov, or view and print the "Responsibility for Repayment of Victim Funds" brochure.