BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 105
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          SENATE THIRD READING
          SB 105 (Steinberg and Huff)
          As Amended  September 9, 2013
          Majority vote.  Budget Bill Appropriation Takes Effect  
          Immediately

           SENATE VOTE  :Vote not relevant  
           
           BUDGET              23-0                                        
           
           -------------------------------- 
          |Ayes:|Skinner, Gorell, Bloom,   |
          |     |Campos, Chávez, Chesbro,  |
          |     |Daly, Dickinson, Gordon,  |
          |     |Harkey, Jones-Sawyer,     |
          |     |Mansoor, Melendez,        |
          |     |Mitchell, Morrell,        |
          |     |Mullin, Muratsuchi,       |
          |     |Nazarian, Nestande,       |
          |     |Patterson, Stone, Ting,   |
          |     |Wagner                    |
           -------------------------------- 

           SUMMARY  :  Provides for statutory changes necessary to implement  
          the Governor's plan for immediate population reductions in  
          California State Correctional facilities and long-term solutions  
          that are cost effective and protect public safety.   
          Specifically,  this bill  :   

          1)Requires the Administration to immediately begin working with  
            stakeholders, including the Legislature, in developing  
            long-term cost effective solutions that protect public safety.  
             

          2)Requires the Administration to submit an interim report to the  
            Legislature on these solutions no later than April 1, 2014,  
            (approximately seven months from the expected enactment of  
            this bill), followed by a more comprehensive report no later  
            than January 10, 2015. (approximately 16 months from the  
            expected enactment of this bill).  

          3)Updates the California Community Performance Incentive Act of  
            2009, SB 678 (Leno), Chapter 608, Statutes of 2009, to address  
            significant reductions in prison diversion program funding  








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            levels triggered primarily by the Public Safety Realignment of  
            2011.  This change is expected to provide approximately $100  
            million to the state's probation departments supporting  
            increased utilization of evidence-based probation practices  
            intended to minimize prison commitments.

          4)Clarifies that the amount of funding the California Department  
            of Corrections and Rehabilitation may expend to procure  
            additional inmate housing capacity shall not surpass the level  
            necessary to adhere to federal court orders and avoid the  
            early release of prison inmates. 

          5)Creates the Recidivism Reduction Fund in the State Treasury to  
            be available for appropriation by the Legislature for  
            activities aimed at reducing the state's prison population,  
            including, but not limited to, reducing recidivism.  

          6)Requires the Department of Finance to report to the  
            Legislature, within 15 days, if the court grants California  
            reprieve from a pending order to reduce the state's prison  
            population to 137.5% of system-wide design capacity by  
            December 31, 2013.  The Department of Finance's report to the  
            Legislature must also include specific details on the  
            activities, including associated costs, necessary to comply  
            with the revised order. 
             
           7)Stipulates that if the amount of funding necessary to comply  
            with a revised court order is less than the $315 million  
            appropriated by this measure, the Director of Finance shall  
            direct the Controller to transfer the first $75 million of  
            such savings to the Recidivism Reduction Fund.  Any additional  
            savings shall be allocated as follows:  50% shall revert to  
            the General Fund and 50% shall be transferred to the  
            Recidivism Reduction Fund. 

          8)Authorizes the California Department of Corrections and  
            Rehabilitation to establish a correctional officer training  
            academy for the purpose of training correctional staff in  
            support of the California City Correctional Center.  This  
            provision is repealed effective January 1, 2017.

          9)Defines, temporarily, the California City Correctional Center,  
            located in California City, as an agency or jurisdiction.   
            This provision is repealed effective January 1, 2017.








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          10)Suspends the statutorily required closure of the California  
            Rehabilitation Center, located in Norco, California, pending a  
            review of inmate housing capacity needs conducted by the  
            Department of Finance and the California Department of  
            Corrections and Rehabilitation. 

          11)Clarifies that all state inmates who remain housed in county  
            jails are under the sole legal custody and jurisdiction of the  
            sheriff or corresponding official having jurisdiction over the  
            facility.  This provision is repealed effective January 1,  
            2017.

          12)Authorizes state inmates housed in local facilities to  
            participate in programs of the facility including, but not  
            limited to, work furlough rehabilitation programs upon notice  
            of the Secretary of Corrections.  This provision is repealed  
            effective January 1, 2017.

          13)Authorizes the state to act expeditiously in contracting with  
            private and public entities to house inmates inside of  
            California.  This provision is repealed effective January 1,  
            2017.

          14)Authorizes the state to act expeditiously in contracting with  
            private entities to house inmates outside of California.  This  
            provision is repealed effective January 1, 2017.

          15)Authorizes the state to act expeditiously in entering a lease  
            or operating agreement with private entities inside  
            California.  Clarifies that the provisions of Division 13  
            (commencing with Section 21000) of the Public Resources Code  
            (also known as the California Environmental Quality Act  
            (CEQA)) do not apply to this provision.  This provision is  
            repealed effective January 1, 2017.

          16)Authorizes the Secretary of the California Department of  
            Corrections and Rehabilitation to waive any process,  
            regulation, requirement, reviews, or approvals required under  
            statutes related to procurement.  This provision is repealed  
            effective January 1, 2017.

          17)Specifies that all contractual obligations are subject to  
            legislative appropriation.








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          18)Requires a report be submitted to the Department of Finance  
            and the Legislature detailing the number of inmates housed in  
            leased and contracted beds, inside and outside of the state,  
            pursuant to the provisions of this act.  Further, the report  
            shall provide the specific number of inmates moved to each  
            facility and shall identify all costs associated with housing  
            these inmates.  This report must be submitted no later than  
            April 15, 2014, and again by April 15, 2015. 

          19)Contains a $315 million (General Fund) appropriation allowing  
            this bill to take effect immediately upon enactment.
           
          FISCAL EFFECT  :  This bill contains a $315 million (General Fund)  
          appropriation to the California Department of Corrections and  
          Rehabilitation to fund the provisions of the bill.

           COMMENTS  :  Pursuant to the June 20, 2013, order from the Federal  
          Three Judge Panel presiding over the Plata/Coleman v. Brown,  
          Case Nos. C01-1351 TEH (N.D. Cal.) and 2:90-cv-0520 LKK JFM P  
          (E.D. Cal.), California is required to reduce its prison  
          population to 137.5% of system-wide design capacity by December  
          31, 2013.  

          In response, the Governor proposed an immediate plan to comply  
          with the court's order, without relying on the early release of  
          prison inmates.  In the days since the Governor released his  
          plan, there have been indications that the Three Judge Panel may  
          wish to modify the existing order rather than see the state  
          immediately expand inmate housing to comply with the existing  
          court order.   

          This bill contains the Governor's original plan to procure  
          additional inmate housing capacity in order to comply with the  
          Court's order to reduce California's prison population to 137.5%  
          of system-wide design capacity by December 31, 2013.  This bill  
          also includes provisions added to ensure the state's ability to  
          quickly pivot if the court modifies the aforementioned capacity  
          limit and/or deadline.  Specifically, the added provisions would  
          require the state to pinpoint savings realized from a reduced  
          need to procure additional inmate housing capacity and redirect  
          those savings toward efforts to reduce California's prison  
          population, including reducing recidivism.









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          Moreover, if a modified order is issued by the panel, the  
          Administration would be required to report to the Legislature  
          within 15 days of an updated court order on how the plan would  
          be adjusted to comply with the court order - including updated  
          cost estimates.  Further, within 45 days of receiving a modified  
          court order, the Director of Finance would be required to shift  
          the first $75 million of savings to the Recidivism Reduction  
          Fund to support prison population and recidivism reduction  
          efforts.  Any remaining savings balance would be split equally  
          between the Recidivism Reduction Fund and the General Fund. 

          Absent a modified court order, the Governor's immediate plan  
          will solve a gap of approximately 12,500 inmates.  This will be  
          accomplished with the following:

          1)Maintaining, in out-of-state facilities, approximately 4,000  
            inmates that are currently out-of-state;

          2)Housing approximately 1,100 inmates in Community Correctional  
            Facilities in California;

          3)Housing approximately 1,000 inmates at the California City  
            Correctional Facility, a private facility in California City,  
            California; 

          4)Housing approximately 600 inmates at county jails; and,

          5)Housing the balance necessary in out-of-state facilities.

          The goal will be to house as many inmates in state as possible.   
          However, in order to increase the housing capacity as soon as  
          possible, it is likely that inmates will first be transferred  
          out of state before the in state options are fully available.

          Regardless of whether the court order is modified or not, a much  
          broader discussion is needed to completely eliminate prison  
          overcrowding.  The long term planning process will begin  
          immediately.  It will include a process involving stakeholders  
          and the Legislature assessing the state prison system including  
          capacity needs, population levels, recidivism rates, and factors  
          affecting crime levels.  The Administration is required to  
          report to the Legislature in 16 months (January 10, 2015) on  
          balanced solutions that are cost effective and protect public  
          safety.  In addition to the required January 10, 2015, report,  








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          this bill requires the administration to provide an April 1,  
          2014, "interim" report, intended to identify those proposals  
          that are fit to be included in the 2014-2015 Budget. 

          This bill also updates an existing prison diversion program,  
          authorized by SB 678 (Leno), Chapter 608, Statutes of 2009, by  
          providing additional incentive funding to counties in support of  
          supervision and services intended to further reduce prison  
          commitments.   

          It is important to note that the California prison population  
          has been reduced by 42,000 inmates since 2006, with most of this  
          reduction occurring after 2010.


           Analysis Prepared by  :    Marvin Deon / BUDGET / (916) 319-2099


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