BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 94| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 94 Author: Assembly Budget Committee Amended: 4/11/11 Vote: 27 - Urgency WITHOUT REFERENCE TO FILE PRIOR SENATE VOTES NOT RELEVANT SENATE BUDGET & FISCAL REVIEW COMMITTEE : Not available ASSEMBLY FLOOR : Not relevant SUBJECT : Criminal Justice Realignment: AB 900 Bond Funding for Jail Construction SOURCE : Author DIGEST : This bill makes technical changes to AB 111 (Assembly Budget Committee, Chapter 16, Statutes of 2011, pertaining to public safety realignment. These changes are intended to make it easier for locals to access and utilize jail construction funding authorized by AB 900 (Solorio), Chapter 7, Statutes of 2007, which established a two-phase construction plan for local jail facilities supported by $1.22 billion in bond authority. Adding jail capacity will help mitigate the impact of increased public safety responsibilities at the local level. Specifically, this bill (1) allows participating counties that received phase CONTINUED AB 94 Page 2 I conditional awards to relinquish the awards and reapply, provided that no state moneys have been encumbered; (2) adds a funding preference to counties that relinquish their conditional awards, provided that those counties continue to assist the state in siting reentry facilities; (3) reduces county contribution of project costs from 25 percent to 10 percent; and (4) specifies that participating counties shall not receive awards greater than $100 million. ANALYSIS : AB 900 (Solorio), Chapter 7, Statutes of 2007, authorized $1.2 billion in state lease revenue bond funding for the construction of local jail facilities. The original legislation split the funding into two phases. The first phase of funding was allocated as conditional awards in November 2009 and approximately $620 million was awarded to the following counties: San Bernardino San Joaquin Kern Santa Barbara San Diego San Luis Obispo Solano Madera Calaveras Amador San Benito Phase I originally included $750 million, but since only $620 million was awarded, the remaining funds were shifted to phase II in AB 111 (Budget). AB 111 also removed requirements that 4,000 local jail beds and 2,000 reentry beds be constructed prior to making the phase II jail funds available. AB 111 also changed the preferences for counties seeking jail construction funding to the counties that have the largest percentage of inmates in state prison in 2010. Previously preference had been given to counties that helped to site reentry facilities, establish mental health day treatment and crisis care, and establish continuum of care programs for parolees. AB 94 Page 3 Existing law authorizes the Department of Corrections and Rehabilitation (CDCR), participating counties, and the State Public Works Board (SPWB) to acquire, design, and construct local jail facilities approved by the Corrections Standards Authority (CSA). Existing law authorizes the SPWB to issue revenue bonds, notes, or bond anticipation notes in specified amounts to finance the acquisition, design, or construction, and a reasonable construction reserve, of approved local jail facilities, as specified. Existing law requires a minimum of 25% in county matching funds for projects funded under these provisions and requires the CDCR and CSA to give funding preference t counties that assist the state in siting reentry facilities, as specified. AB 111 of the 2011-12 Regular Session, if it becomes operative, instead requires that the CDCR and the CSA give funding preference to counties that committed the largest percentage of inmates to state custody in relation to the total inmate population of CDCR in 2010. This bill, if AB 111 of the 2011-12 Regular Session becomes operative, authorizes counties that have received a conditional award under one specified jail facilities financing program to relinquish that award and reapply for a conditional award under a separate financing program, as specified. This bill lowers to 10 percent the required county contribution and additionally requires the CDCR and CSA to give funding preference to those counties that relinquish those specified local jail construction conditional awards and agree to continue to assist the state in siting reentry facilities, as specified. This bill caps at $100,000,000 the amount a county may receive in proceeds from SPWB's issuance of bonds, notes, or bond anticipation notes under those specified provisions. This bill appropriates $1,000 from the General Fund to the CDCR for purposes of state operations to be used by the CSA in the 2011-12 fiscal year. This bill declares that it is to take effect immediately as an urgency statute and a bill providing for appropriations related to the Budget Bill. AB 94 Page 4 Comments This bill, along with AB 111 that was passed earlier this year, is intended to provide counties greater access to state bond funding for the construction of local jail facilities. These facilities will help counties deal with the inmates being transitioned from state prison to local jurisdictions by AB 109 public safety realignment. Prior Legislation AB 111 (Assembly Budget Committee), Chapter 16, Statutes of 2011, passed the Senate (25-14) on March 17, 2011. AB 109 (Assembly Budget Committee), Chapter 15, Statutes of 2011, passed the Senate (24-16) on March 17, 2011. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No This bill does not have a direct fiscal effect. However, lowering the county contribution for project costs may result in state bond funds being available for fewer projects than was the case with the higher county match. This may result in added fiscal pressure in future years if it is determined that additional local jail facilities are needed. RJG:mw 4/11/11 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END ****