Amended in Senate June 13, 2016

Amended in Assembly April 14, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1616

Introduced by begin delete Committee on Budget (Assembly Members Ting (Chair), Travis Allen, Bigelow, Bloom, Bonta, Campos, Chávez, Chiu, Cooper, Gordon, Grove, Harper, Holden, Irwin, Kim, Lackey, McCarty, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Rodriguez, Thurmond, Wilk, and Williams) end delete begin insert Committee on Budget (Assembly Members Ting (Chair), Bloom, Bonta, Campos, Chiu, Cooper, Gordon, Holden, Irwin, McCarty, Mullin, Nazarian, O’Donnell, Rodriguez, Thurmond, and Williams) end insert

January 7, 2016

begin delete An act relating to the Budget Act of 2016. end delete begin insert An act to add Chapter 3.132 (commencing with Section 15820.94) to Part 10b of Division 3 of Title 2 of the Government Code, relating to correctional facilities, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1616, as amended, Committee on Budget. begin delete Budget Act of 2016. end delete begin insert Correctional facilities: construction: financing. end insert

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Existing law authorizes the Board of State and Community Corrections or the Department of Corrections and Rehabilitation, the State Public Works Board, and a participating county, as defined, to acquire, design, and construct an adult local criminal justice facility approved by the Board of State and Community Corrections, or to acquire a site or sites owned by, or subject to a lease option to purchase held by, a participating county. Existing law authorizes the State Public Works Board to issue up to $500,000,000 in revenue bonds, notes, or bond anticipation notes to finance the acquisition, design, and construction of approved adult local criminal justice facilities. The funds derived from those revenue bonds, notes, or bond anticipation notes are continuously appropriated for those purposes.

end insert begin insert

This bill would enact provisions similar to the provisions described above authorizing the board of State and Community Corrections or the Department of Corrections and Rehabilitation, the State Public Works Board, and a participating county, as defined, to acquire, design, and construct an adult local criminal justice facility, as defined. The bill would authorize the State Public Works Board to issue up to $270,000,000 in revenue bonds, notes, or bond anticipation notes to finance the acquisition, design, and construction of approved adult local criminal justice facilities, setting aside $20,000,000 to be awarded to Napa County, and would continuously appropriate the funds for those purposes. Because the bill would continuously appropriate funds for these purposes, it would make an appropriation. The bill would establish procedures for approving and funding these projects.

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This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.

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Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Chapter 3.132 (commencing with Section
15820.94) is added to Part 10b of Division 3 of Title 2 of the end insert begin insert
Government Code end insert begin insert , to read: end insert

begin insert

 

Chapter   begin insert 3.132. end insert Financing of Adult Local Criminal
Justice Facilities - 2016

 

begin insert 15820.94. end insert   

(a) For purposes of this chapter, “participating
county” means a county, city and county, or regional consortium
of counties, within the state that has been certified to the State
Public Works Board (board) by the Board of State and Community
Corrections (BSCC) as having satisfied all of the requirements set
forth in this chapter for financing an adult local criminal justice
facility pursuant to this chapter.

(b) (1) For purposes of this chapter, an adult local criminal
justice facility may include improved housing with an emphasis
on expanding program and treatment space as necessary to
manage the adult offender population under the jurisdiction of the
sheriff or county department of corrections, as may be applicable,
consistent with the legislative intent described in Sections 17.5
and 3450 of the Penal Code, to be further defined by the BSCC in
duly adopted regulations.

(2) For purposes of this chapter, an adult local criminal justice
facility may also include custodial housing, reentry, program,
mental health, or treatment space necessary to manage the adult
offender population under the jurisdiction of the sheriff or county
department of corrections, as may be applicable, consistent with
the legislative intent described in Sections 17.5 and 3450 of the
Penal Code, to be further defined by the BSCC in duly adopted
regulations.

begin insert 15820.940. end insert   

(a) The BSCC or the Department of Corrections
and Rehabilitation (CDCR), a participating county, and the board
are authorized to acquire, design, and construct an adult local
criminal justice facility approved by the BSCC pursuant to Section
15820.945, or to acquire a site or sites owned by, or subject to a
lease or option to purchase held by, a participating county. For
the purposes of this chapter, acquisition shall include, but is not
limited to, acquisition of completed facilities through a build-to-suit
purchase. Facilities financed pursuant to this chapter may be
delivered through either a design-bid-build or a design-build
process. The ownership interest of a participating county in the
site or sites for an adult local criminal justice facility shall be
determined by the board to be adequate for purposes of its
financing in order to be eligible under this chapter.

(b) Notwithstanding Section 14951, the participating county
may assign an inspector during the construction of the adult local
criminal justice facility.

(c) The BSCC or the CDCR, a participating county, and the
board shall enter into an agreement for each adult local criminal
justice facility that shall provide, at a minimum, performance
expectations of the parties related to the acquisition, design, and
construction, including, without limitation, renovation, of the adult
local criminal justice facility; guidelines and criteria for use and
application of the proceeds of revenue bonds, notes, or bond
anticipation notes issued by the board to pay for the cost of the
approved adult local criminal justice facility; and ongoing
maintenance and staffing responsibilities for the term of the
financing.

(d) The agreement shall include a provision that the
participating county agrees to indemnify, defend, and hold
harmless the State of California for any and all claims and losses
arising out of the acquisition, design, and construction of the adult
local criminal justice facility. The agreement may also contain
additional terms and conditions that facilitate the financing by the
board.

(e) The scope and cost of the adult local criminal justice
facilities shall be subject to approval and administrative oversight
by the board.

(f) For purposes of compliance with the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code), the board, BSCC, and the
CDCR are not a lead or responsible agency; the participating
county is the lead agency.

begin insert 15820.941. end insert   

Upon a participating county’s receipt of responsive
construction bids or design-build proposals, or a participating
county’s notification to the board of its intent to exercise a
purchase option, and after the adult local criminal justice facility
has been certified pursuant to Section 15820.94, the board and
the BSCC or the CDCR may borrow funds for project costs from
the Pooled Money Investment Account pursuant to Sections 16312
and 16313, or from any other appropriate source. In the event any
of the revenue bonds, notes, or bond anticipation notes authorized
by this chapter are not sold, the BSCC or the CDCR shall commit
a sufficient amount of its support appropriation to repay any loans
made for an approved adult local criminal justice facility.

begin insert 15820.942. end insert   

(a) The board may issue up to two hundred seventy
million dollars ($270,000,000) in revenue bonds, notes, or bond
anticipation notes, pursuant to Chapter 5 (commencing with
Section 15830), to finance the acquisition, design, and construction,
including, without limitation, renovation, and a reasonable
construction reserve, of approved adult local criminal justice
facilities described in Section 15820.940, and any additional
amount authorized under Section 15849.6 to pay for the cost of
financing.

(b) Proceeds from the revenue bonds, notes, or bond anticipation
notes may be used to reimburse a participating county for the costs
of acquisition, design, and construction, including, without
limitation, renovation, for approved adult local criminal justice
facilities.

(c) Notwithstanding Section 13340, funds derived pursuant to
this section and Section 15820.941 are continuously appropriated
for purposes of this chapter.

begin insert 15820.943. end insert   

In support of this state financing, the Legislature
finds and declares all of the following:

(a) California’s current challenges in managing jail populations
follow decades of overcrowded and aging jails, and piecemeal,
erratic, and incomplete responses to dealing with these problems.
Reversing course will require sustainable solutions that must
include sound planning and implementation, and must be grounded
in the principle that jail resources must be well-planned and
employed efficiently and effectively to prevent overcrowding and
promote public safety through the broader use of evidence-based
practices and policies in the criminal justice system.

(b) California needs a long-term, statewide strategy to effectively
manage its jail population and jail resources. Without an ongoing
analytical framework for taking into account factors such as
population growth, criminogenic needs of the current and future
jail populations, crime rates, custodial housing needs, and
additional changes to realignment or sentencing laws and
practices, California will continue to resort to reactive,
fragmentary fixes to its jail condition and capacity problems
instead of being fully prepared to develop an effective and
sustainable system of local custodial facilities.

(c) The county adult criminal justice system needs improved
housing with an emphasis on expanding program and treatment
space to manage the adult offender population under its
jurisdiction.

(d) Improved county adult criminal justice housing with an
emphasis on expanding program and treatment space will enhance
public safety throughout the state by providing increased access
to appropriate programs or treatment.

(e) By improving county adult criminal justice housing with an
emphasis on expanding program and treatment space, this
financing will serve a critical state purpose by promoting public
safety.

(f) This purpose represents valuable consideration in exchange
for this state action.

begin insert 15820.944. end insert   

With the consent of the board, the BSCC or the
CDCR and a participating county are authorized to enter into
leases or subleases, as lessor or lessee, for any property or
approved adult local criminal justice facility and are further
authorized to enter into contracts or other agreements for the use,
maintenance, and operation of the adult local criminal justice
facility in order to facilitate the financing authorized by this
chapter. In those leases, subleases, or other agreements, the
participating county shall agree to indemnify, defend, and hold
harmless the State of California for any and all claims and losses
accruing and resulting from or arising out of the participating
county’s use and occupancy of the adult local criminal justice
facility.

begin insert 15820.945. end insert   

(a) The BSCC shall adhere to its duly adopted
regulations for the approval or disapproval of adult local criminal
justice facilities. The BSCC shall also consider cost effectiveness
in determining approval or disapproval. No state moneys shall be
encumbered in contracts let by a participating county until one of
the following occurs:

(1) Final architectural plans and specifications have been
approved by the BSCC, and subsequent construction bids have
been received.

(2) Documents prepared by a participating county pursuant to
paragraph (1) of subdivision (a) of Section 22164 of the Public
Contract Code have been approved by the BSCC, and subsequent
design-build proposals have been received pursuant to that section.

(3) The participating county has notified the board of its intent
to exercise an option to purchase the completed facility pursuant
to Section 15820.941.

(b) The review and approval of plans, specifications, or other
documents by the BSCC are for the purpose of ensuring the proper
administration of moneys and the determination of whether the
adult local criminal justice facility specifications comply with law
and regulation. The BSCC may require changes in construction
materials to enhance safety and security if materials proposed at
the time of final plans and specifications are not essential and
customary as used statewide for facilities of the same security
level. Participating counties are responsible for the acquisition,
design, construction, staffing, operation, repair, and maintenance
of the adult local criminal justice facility.

(c) The BSCC shall establish minimum standards, funding
schedules, and procedures, which shall take into consideration,
but not be limited to, the following:

(1) Certification by a participating county of control of the adult
local criminal justice facility site through either fee simple
ownership of the site or comparable long-term possession of the
site, and right of access to the adult local criminal justice facility
sufficient to ensure undisturbed use and possession.

(2) Documentation of the need for improved adult local criminal
justice facility housing with an emphasis on expanded program
and treatment space. A county shall not be required to submit a
new needs assessment if the county previously submitted a needs
assessment for a request under the financing program described
in Chapter 3.131 (commencing with Section 15820.93).

(3) A written adult local criminal justice facility proposal.

(4) Submission of a staffing plan for the adult local criminal
justice facility, including operational cost projections and
documentation that the adult local criminal justice facility will be
able to be safely staffed and operated within 90 days of completion,
as may be applicable.

(5) Submission of architectural drawings, which shall be
approved by the BSCC for compliance with minimum adult
detention facility standards and which shall also be approved by
the State Fire Marshal for compliance with fire safety and life
safety requirements.

(6) Documentation evidencing compliance with the California
Environmental Quality Act (CEQA).

(7) Provisions intended to maintain the tax-exempt status of the
bonds, notes, or bond anticipation notes issued by the board.

begin insert 15820.946. end insert   

(a) The participating county contribution for adult
local criminal justice facilities financed under this chapter shall
be a minimum of 10 percent of the total project costs. The BSCC
may reduce contribution requirements for participating counties
with a general population below 200,000 upon petition by a
participating county to the BSCC requesting a lower level of
contribution.

(b) The BSCC shall determine the funding and scoring criteria
consistent with the requirements of this chapter. Financing shall
be awarded only to those counties that have previously received
only a partial award or have never received an award from the
state within the financing programs authorized in Chapters 3.11
(commencing with Section 15820.90) to 3.131 (commencing with
Section 15820.93), inclusive. Notwithstanding this restriction,
twenty million dollars ($20,000,000) of the amount authorized in
Section 15820.942 shall be set aside and awarded to Napa County.
The funding criteria shall include, as a mandatory criterion,
documentation of the percentage of pretrial inmates in the county
jail from January 1, 2015, to December 31, 2015, inclusive, and
a description of the county’s current risk-assessment-based-pretrial
release program. Funding preference shall also be given to
counties that are most prepared to proceed successfully with this
financing in a timely manner. The determination of preparedness
to proceed shall include the following:

(1) Counties providing a board of supervisors’ resolution
authorizing an adequate amount of available matching funds to
satisfy the counties’ contribution and approving the forms of the
project documents deemed necessary, as identified by the board
to the BSCC, to effectuate the financing authorized by this chapter,
and authorizing the appropriate signatory or signatories to execute
those documents at the appropriate times. The identified matching
funds in the resolution shall be compatible with the state’s lease
revenue bond financing.

(2) Counties providing documentation evidencing CEQA
compliance has been completed. Documentation of CEQA
compliance shall be either a final Notice of Determination or a
final Notice of Exemption, as appropriate, and a letter from county
counsel certifying the associated statute of limitations has expired
and either no challenges were filed or identifying any challenges
filed and explaining how they have been resolved in a manner that
allows the project to proceed as proposed.

(c) Funding consideration shall be given to counties that are
seeking to replace compacted, outdated, or unsafe housing capacity
that will also add treatment space or counties that are seeking to
renovate existing or build new facilities that provide adequate
space for the provision of treatment and rehabilitation services,
including mental health treatment.

(d) A participating county may replace existing housing
capacity, realizing only a minimal increase of capacity, using this
financing authority if the requesting county clearly documents an
existing housing capacity deficiency.

(e) A participating county with a request resulting in any
increase in capacity using this financing authority shall be required
to certify and covenant in writing that the county is not, and will
not be, leasing housing capacity to any other public or private
entity for a period of 10 years beyond the completion date of the
adult local criminal justice facility.

(f) Any locked facility constructed or renovated with state
funding awarded under this program shall include space to provide
onsite, in-person visitation capable of meeting or surpassing the
minimum number of weekly visits required by state regulations for
persons detained in the facility.

(g) Any county applying for financing authority under this
program shall include a description of efforts to address sexual
abuse in its adult local criminal justice facility constructed or
renovated pursuant to this chapter.

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begin insert

begin insert SEC. 2. end insert   

end insert begin insert

This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.

end insert begin delete

end delete

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the 2016 Budget Act.

end delete

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CORRECTIONS:

Heading--Lines 1, 2, 3, 4, and 5.

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