BILL ANALYSIS �
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UNFINISHED BUSINESS
Bill No: SB 365
Author: Wolk (D), et al.
Amended: 9/11/13
Vote: 21
PRIOR VOTES NOT RELEVANT
SENATE BUDGET & FISCAL REVIEW COMMITTEE : 14-0, 9/12/13
(pursuant to Senate Rule 29.10) (ROLL CALL NOT AVAILABLE)
ASSEMBLY FLOOR : Not available
SUBJECT : Jail construction: funding
SOURCE : Author
DIGEST : This bill makes changes to jail construction and
juvenile facility funding which is allocated by the Board of
State Community Corrections (BSCC).
Assembly Amendments delete the Senate version of the bill, which
dealt with corporation taxes, and add the current language.
ANALYSIS :
Existing law:
1.Authorizes the Department of Corrections and Rehabilitation
(CDCR), a participating county, and the State Public Works
Board (SPWB) to acquire, design, and construct a local jail
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facility approved by the Corrections Standards Authority (CSA,
now the BSCC), as specified, or a site or sites owned by, or
subject to a lease or option to purchase held by, a
participating county. The ownership interest of a
participating county in the site or sites for a local jail
facility must be determined by the SPWB to be adequate for
purposes of its financing in order to be eligible under this
chapter.
2.Authorizes the SPWB to issue up to $445.771 million in revenue
bonds, notes, or bond anticipation notes, as specified, to
finance the acquisition, design, or construction, and a
reasonable construction reserve, of approved local jail
facilities, as specified, and any additional amount to pay for
the cost of financing, as specified. Proceeds from the revenue
bonds, notes, or bond anticipation notes may be used to
reimburse a participating county for the costs of acquisition,
preliminary plans, working drawings, and construction for
approved projects.
3.Allows a participating county that has received a conditional
award under this financing program to relinquish its
conditional award, provided that no state moneys have been
encumbered in contracts let by the county, and may reapply for
a conditional award under the financing program set forth in
this chapter.
4.Authorizes the SPWB to issue up to $774.229 million in revenue
bonds, notes, or bond anticipation notes, to finance the
acquisition, design, or construction, and a reasonable
construction reserve, of approved local jail facilities, as
specified, to pay for the cost of financing. Proceeds from the
revenue bonds, notes, or bond anticipation notes may be used
to reimburse a participating county for the costs of
acquisition, preliminary plans, working drawings, and
construction for approved projects.
5.Authorizes the SPWB to issue up to $300 million in revenue
bonds, notes, or bond anticipation notes to finance the
acquisition, design, renovation, or construction, and a
reasonable construction reserve, of approved local youthful
offender rehabilitative facilities.
6.Establishes the BSCC, abolishes the CSA, and states that
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references in statute to the CSA shall now refer to the BSCC.
This bill:
1.Moves $80 million from AB 900 Phase I funding to AB 900 Phase
II funding.
2.Allows a county which has been conditionally awarded financing
to construct a juvenile facility to apply to the BSCC for
redirection of the conditional award to another county that
will be the lead county if the original county determines that
joint participation in a shared regional facility would
benefit the needs of the counties involved.
3.Authorizes BSCC to redirect the conditional award if it
determines that redirection would result in cost savings,
regional efficiencies, increased services, and improved
outcomes.
4.Specifies that redirection may only be considered prior to any
approval or establishment of the project by the board.
Background
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. AB 900 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, and 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 Committee). 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
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parolees.
Subsequent legislation, AB 94 (Budget Committee, Chapter 23,
Statutes of 2011) allowed participating counties that received
Phase 1 conditional awards to relinquish the awards and reapply,
provided that no state moneys have been encumbered. AB 94 also
added a funding preference to counties that relinquish their
conditional awards, provided that those counties continue to
assist the state in siting reentry facilities.
Most recently, under SB 1022 (Budget Committee), Chapter 42,
Statutes of 2012, up to $500 million in financing authority is
conditionally available. The BSCC released a request for
proposals regarding use of SB 1022 jail construction money in
July 2013. (See SB 1022 - Request for Proposals Background,
.)
SB 1022 also shifted $171.3 million from AB 900 Phase I to Phase
II.
This bill reduces the Phase I authorization to $365.771 million
and increase the Phase II authorization to $854.229 million;
effectively shifting $80 million from Phase I to Phase II.
These funds became available because San Joaquin County recently
relinquished an award of $80 million.
SB 81 (Budget Committee, Chapter 175, Statutes of 2007)
authorized $100 million in lease revenue bonds for the
construction of new local facilities for youthful offenders.
The purpose of this financing program was to support the
rehabilitation of youthful offenders at the local level. As
such, rehabilitation must be a core component of the operational
philosophy of the facility subject to construction, expansion or
renovation. In 2010, AB 1628 (Budget Committee, Chapter 729,
Statutes of 2010) added $200 million in lease-revenue bond
financing authority to this construction financing program.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 9/12/13)
Chief Probation Officers of California
Monterey County Board of Supervisors
Monterey County Sheriff's Office
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Sonoma County Board of Supervisors
Sutter County Board of Supervisors
Yuba County Board of Supervisors
ARGUMENTS IN SUPPORT : According to the author, "The
amendments to SB 365 would free-up some funds that are currently
stranded for county public safety projects.
"The Board of State and Community Corrections (BSCC) has
authority to issue lease-revenue bonds to fund the construction
of county jails. As you know, many counties received funds under
AB 900. However, one county that was awarded funds later decided
to relinquish their award.
"The relinquishing of AB 900 funds occurred after both phases of
AB 900 awards had occurred. Due to the timing, these returned
funds are now stranded, as the BSCC has no authority under
existing law to reissue these funds.
"The first provision of the proposed amendments would adjust the
amount of lease revenue bonds that the BSCC can issue, to
reflect the relinquished funds and repurposing them. According
to the BSCC, the immediate beneficiaries of this provision would
be Monterey and Sonoma Counties, as those counties are next in
line to receive awards as funds become available. This would not
allow any county to 'jump the line' - just the opposite, the
BSCC would simply keep working down their existing list of
potential grantees.
"The second provision of SB 365 would authorize a county that
was awarded funds from SB 81 for juvenile facilities to pool
resources with one or more other counties to build a regional
facility to serve juveniles. The bill also authorizes the funds
to be used outside of the recipient county, if the regional
facility would improve and enhance services. Colusa County was
awarded such a grant but the juvenile justice realignment has
resulted in very few juvenile wards being in custody, making the
construction of a Colusa-only facility inefficient from a cost
and programming perspective. Yuba and Sutter Counties already
operate a joint facility. Section 2 of the bill would allow
Colusa to join the Yuba-Sutter JPA and pool their county
resources to expand and upgrade the joint facility in Yuba to
serve all three counties. This facility may also be able to
serve juveniles from other parts of the state as well.
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"At this crossroads in the County-State fiscal relationship with
regard to public safety, prison overcrowding and realignment,
the proposed amendments to SB 365 will free -up already
appropriated funding and provides counties autonomy to work
together to address capacity is deeply appreciated and much
needed."
JG:nk 9/12/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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