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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, but another source of funds becomes available because of the same criminal incident, CalVCP is entitled to 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 Victim Compensation and Government Claims Board (VCGCB) administers the California Victim Compensation Program (CalVCP). All monies recovered during repayment are deposited into the Restitution Fund and are used to assist other victims of crime in California.

  • 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 because of 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 and 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

The VCGCB is required to prove that funds were paid to, or on behalf of, the injured worker related to the same incident or injuries for which victim compensation has been paid.

 

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.

The VCGCB has the right to subrogation, meaning the VCGCB can request repayment from third-parties, such as an insurance company, on behalf of the victim compensation recipient.

 

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 with the Attorney General’s Office.

The State Bar may be notified of any misconduct. Attorneys who represent victims of crime should consult with their clients to determine if they have received victim compensation.

Contact

Responsibility for Repayment Brochure

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 or e-mail.