BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           320 (Solorio)
          
          Hearing Date:  08/27/2009           Amended: 07/23/2009
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: Public Safety  
          7-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 320 gives counties seeking to provide existing  
          county jail beds for use as state prison reentry beds, as  
          specified, the same funding preference for jail financing under  
          Phase 2 of AB 900 as counties that assist the state in siting a  
          prison reentry facility. This bill specifies the requirements  
          for any agreements between the Department of Corrections and  
          Rehabilitation (CDCR) and counties. This bill contains an  
          urgency statute.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions             2009-10       2010-11                 
           2011-12                        Fund
           Change/implement                Out years: unknown costs,  
          possibly significant      General                                 
            
          new evaluation standards                                          
                            

          Inmate transfer to county jails         Unknown savings,  
          potentially significant      General

          Bond pressure            Pressure in the out-years, likely in  
          excess of $200,000       Bond
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.

          Existing law provides a system for funding county jail facility  
          construction through bonds approved in AB 900, in 2007. The  
          provisions of AB 900 contained certain general guidelines for  
          county jail construction funding proposals, but also gave the  
          Corrections Standards Authority (CSA) and CDCR the  
          responsibility of developing evaluation standards and a  










          determination process. AB 900 stated that "CDCR and CSA shall  
          give funding preference to counties that assist the state in  
          siting reentry facilities, pursuant to Section 6270," but the  
          departments actually created a rubric, point system, and  
          proposal standards to decide which counties would receive county  
          jail construction funding. This bill would require CDCR and CSA  
          to change their evaluation process to give coequal funding  
          preference to counties who will provide current or future space  
          in county jails for use as reentry facilities. The evaluation of  
          existing jail facilities, to the extent they are proposed for  
          reentry use, would also require a different process for  
          determining feasibility than evaluating a new site location on  
          which a facility could be constructed to meet CDCR and CSA's  
          reentry facility requirements. At a time when CDCR has sustained  
          extensive budget cuts, it is unclear whether this additional  
          workload could be fully absorbed without addition temporary  
          staff or, at a minimum, overtime for existing staff.

          This bill is intended to allow more counties to qualify for the  
          jail construction bond money approved in AB 900. Phase I of the  
          reentry facilities project is still incomplete, in large part,  
          because counties have been unable to meet the requirements to be  
          approved for bond money. Six counties that applied for funding  
          were denied, at least in 
          Page 2
          AB 320 (Solorio)

          part, because of an inability to assist CDCR in siting a new  
          reentry facility. More counties have opted not to apply because  
          they cannot, or do not want to, site new reentry facilities  
          within their counties. (Other counties have been denied funding  
          because of match requirements, or parolee services requirements,  
          not related to reentry facility siting). The provisions of this  
          bill will likely ensure jail construction funding for counties  
          that otherwise would not have been given funding under the  
          existing requirements.

          Easing requirements on counties creates bond pressure to expend  
          the full amount of approved bond funding in Phase II. This bill  
          came about as the result of counties finding it too difficult to  
          site reentry facilities, and looking for an easier alternative  
          to assist the state and still get the equivalent benefit of  
          having sited a reentry facility. To the extent that counties  
          will now cease to have construction money tied to siting a state  
          reentry facility, assisting the state in that lengthy process  
          will be disincentivized in favor of a sometimes easier option  










          that will receive coequal funding preference. Absent this bill,  
          if counties were still unable to assist CDCR in siting reentry  
          facilities, it is likely that some of the Phase II bond  
          authority would go unused. In 2017, the authority to issue Phase  
          II bonds ends. Any money that was not awarded by that time would  
          not be able to be awarded, and its debt would not be incurred by  
          the state. While it is true that a ceiling of Phase II money in  
          AB 900 has already been approved specifically for jail  
          construction, it was also approved with the specific funding  
          preferences written into the bill because it is difficult to  
          site a new reentry facility, and CDCR needed county assistance.  
          Under current regulations, about one half of the Phase I money  
          applied for was granted. This bill would make it easier to  
          expend Phase II money.

          To the extent that county jails provide reentry facility space  
          in their existing jails, this bill could save the state money.  
          Entering into long-term contracts with counties to use existing  
          space would allow inmates to be transferred much more quickly  
          than building a new facility. While reentry facilities are not  
          necessarily significantly less expensive than state prisons,  
          they are statutorily prohibited from being more expensive, and  
          their use would ease prison overcrowding. This bill, however,  
          does not require the use of existing facilities in order to  
          receive coequal funding preference. This bill specifically  
          provides for the option of using "future jail beds to be  
          constructed with funding made available under this chapter." To  
          the extent that counties seek jail construction funding for  
          future beds that, when built, will in part be used for reentry  
          facilities (owned by the county as part of the county jails),  
          there will be no short term savings.