BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 608| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 608 Author: DeSaulnier (D) Amended: As introduced Vote: 21 SENATE PUBLIC SAFETY COMMITTEE : 7-0, 4/12/11 AYES: Hancock, Anderson, Calderon, Harman, Liu, Price, Steinberg SENATE APPROPRIATIONS COMMITTEE : 6-3, 5/2/11 AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg NOES: Walters, Emmerson, Runner SUBJECT : Prison Industry Authority: sales to nonprofits SOURCE : K to College DIGEST : This bill authorizes the Prison Industry Authority to offer their goods and services for sale to nonprofit organizations. ANALYSIS : Existing law establishes the Prison Industry Authority (PIA) and states that the purposes of the authority are to: Develop and operate industrial, agricultural, and service enterprises employing prisoners in institutions under the jurisdiction of the Department of Corrections, which enterprises may be located either within those institutions or elsewhere, all as may be CONTINUED SB 608 Page 2 determined by the authority. Create and maintain working conditions within the enterprises as much like those which prevail in private industry as possible, to assure prisoners employed therein the opportunity to work productively, to earn funds, and to acquire or improve effective work habits and occupational skills. Operate a work program for prisoners which will ultimately be self-supporting by generating sufficient funds from the sale of products and services to pay all the expenses of the program, and one which will provide goods and services which are or will be used by the Department of Corrections, thereby reducing the cost of its operation. (Penal Code Section 2801.) Existing law authorizes the PIA to operate industrial, agricultural, and service enterprises which will provide products and services needed by the state, or any political subdivision thereof, or by the federal government, or any department, agency, or corporation thereof, or for any other public use. Products may be purchased by state agencies to be offered for sale to inmates of the department and to any other person under the care of the state who resides in state-operated institutional facilities. Fresh meat may be purchased by food service operations in state-owned facilities and sold for onsite consumption. (Penal Code Section 2807(a).) Existing law further states that all things authorized to be produced by the PIA shall be purchased by the state, or any agency thereof, and may be purchased by any county, city, district, or political subdivision, or any agency thereof, or by any state agency to offer for sale to persons residing in state-operated institutions, at the prices fixed by the PIA. State agencies shall make maximum utilization of these products, and shall consult with the staff of the PIA to develop new products and adapt existing products to meet their needs. (Penal Code Section 2807(b).) Existing law provides that notwithstanding Section 2807 of the Penal Code, the Director of the Department of General CONTINUED SB 608 Page 3 Services or his/her designee may procure goods from the private sector even though the goods may be available from the PIA, when in his/her discretion, it is cost beneficial to do so, and if the Director or his/her designee continues to include the PIA in soliciting quotations for goods. (Government Code Section 14612.) This bill provides that all goods and services provided by PIA could be offered for sale to a nonprofit organization. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee analysis: Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Increased sales to No new state costs; potential significant Grant nonprofits future costs savings due to reduced incarceration, potential personal income/sales tax revenue loss SUPPORT : (Verified 5/3/11) K to College (source) California Correctional Peace Officers Association Crime Victims Action Alliance Prison Industry Board ARGUMENTS IN SUPPORT : According to the author's office, under current law, only government organizations may purchase goods or services from PIA. This bill allows non-profit entities to purchase goods or services purveyed by the PIA. This change will support the philanthropic endeavors of California non-profits, who in many cases cannot afford to pay market prices. It also supports the rehabilitative and vocational-training efforts of PIA, which ultimately saves the state money by allowing more CONTINUED SB 608 Page 4 prisoners to earn sentence-reducing work credits. The sponsor of this bill, K to College, a non-profit based in the East Bay, provides free school supplies to students from disadvantaged backgrounds. Historically, K to College has used volunteers to assemble these school supply packets. However over time, volunteers were no longer able to meet the increasing demand for the school supply packets. In response, in 2009, K to College worked with Senator DeSaulnier's office to coordinate a program with PIA workers at Folsom State Prison. The Folsom State inmates were able to assemble 150,000 school supply packets, a project too large in scale to be accomplished by volunteers. In order to make this program and others like it sustainable, California statute must be amended in order to explicitly allow non-profits to work with PIA. RJG:do 5/3/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED