BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2012 (Bigelow) - Jail Industry Authority
          
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          |Version: June 28, 2016          |Policy Vote: PUB. S. 7 - 0      |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Jolie Onodera       |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  AB 2012 would authorize the creation of a Jail  
          Industry Authority within the county jail system, as specified.


          Fiscal  
          Impact:  
            Jail Industry Authority  :  One-time and ongoing  
            non-reimbursable costs potentially in excess of tens of  
            millions of dollars annually to establish and operate the  
            authority in the 10 specified counties, with ongoing operating  
            costs potentially offset and fully funded in future years  
            through Jail Industries Fund revenues. New enterprise start-up  
            costs (Local Funds*/General Fund**) for infrastructure,  
            equipment, materials, personnel, and training are likely to be  
            substantial. 
            Board of State and Community Corrections (BSCC)  :  Minor  
            ongoing costs (General Fund) to review and approve plans for  
            purchase from, and consultation with, the local jail industry  
            programs.  







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            Prison Industry Authority (PIA)  :  Unknown impact, if any, on  
            the PIA, including its existing contracts with local  
            governments and future operating revenues.
            Long-term impacts  :  Potential future cost savings (Local  
            Funds/General Fund) in jail operations, state and local agency  
            operating costs through the use of jail industry authority  
            products and services, and reduced recidivism. 
            Proposition 30  :  Exempts the State from mandate reimbursement  
            for realigned responsibilities for "public safety services"  
            including "managing local jails and providing housing,  
            treatment, and services for, and supervision of, juvenile and  
            adult offenders," however, legislation enacted after September  
            30, 2012, that has an overall effect of increasing the costs  
            already borne by a local agency for public safety services  
            apply to local agencies only to the extent that the State  
            provides annual funding for the cost increase. The provisions  
            of Proposition 30 have not been interpreted through the formal  
            court process to date, however, to the extent the local agency  
            costs resulting from this measure are determined to be  
            applicable under the provisions of Proposition 30, could  
            result in the provision of funds from the State.
            Proposition 47  :  Staff notes the funds to be disbursed to the  
            BSCC under the Safe Neighborhoods and Schools Act (65% of  
            calculated savings) that may be used to support diversion  
            programs for people in the criminal justice system, with  
            emphasis on programs that reduce recidivism of people  
            convicted of less serious crimes, could potentially be used  
            for the purposes specified in this measure.

          *Jail Industries Fund
          **Proposition 30 (2012) and Proposition 47 (2014)


          Background:  Existing law authorizes the board of supervisors of a county  
          to establish by ordinance a Jail Industry Commission for that  
          county. The Commission, if established, is to have the same  
          purposes, powers, and duties with respect to county jails as the  
          Prison Industry Authority (PIA) has for institutions under the  
          jurisdiction of the Department of Corrections and Rehabilitation  
          (CDCR).
          Under existing law, upon the establishment of the commission,  
          the board of supervisors shall establish a Jail Industries Fund,  
          which may be a revolving fund, for funding the operations of the  
          commission.  All jail industry income shall be deposited in, and  








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          any prisoner compensation shall be paid to the account of the  
          prisoner from, the Jail Industries Fund. Funds in a Jail  
          Industries Fund may only be used for the operation or expansion  
          of the jail industry program or to cover operating and  
          construction costs of county detention facilities, and may not  
          be transferred to the county general fund.


          Under existing law, no jail industry commission or any county  
          jail industry program conducted under the authority of a  
          commission, shall remain in existence for more than four years  
          from the date of its establishment.


          Proposed Law:  
           This bill would replace the existing authority for a county to  
          establish a Jail Industry Commission for that county with the  
          authority for the board of supervisors of the Counties of Los  
          Angeles, Sacramento, San Diego, San Joaquin, San Luis Obispo,  
          Sonoma, Stanislaus, Tulare, Tuolumne, and Ventura, by ordinance  
          or resolution, to have the sheriff or county director of  
          corrections to create a Jail Industry Authority within the  
          county jail system. This bill: 
                 Provides that the purpose of the Jail Industry Authority  
               includes all of the following:


                  o         To develop and operate industrial,  
                    agricultural, or service enterprises or programs  
                    employing prisoners in county correctional facilities  
                    under the jurisdiction of the sheriff or county  
                    director of corrections.


                  o         To create and maintain working conditions  
                    within the enterprises or programs as similar as  
                    possible to those that prevail in private industry.


                  o         To ensure prisoners have the opportunity to  
                    work productively and earn funds, if approved by the  
                    board of supervisors pursuant to Section 4019.3, and  
                    to acquire or improve effective work habits and  
                    occupational skills.








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                  o         To allow inmates who participate in the  
                    enterprise or program the opportunity to earn  
                    additional time credits allowed under law, if  
                    authorized by the sheriff or county director of  
                    corrections.


                 Upon the establishment of the Jail Industry Program or  
               Jail Industry Authority, requires the board of supervisors  
               to establish a Jail Industries Fund, which may be a  
               revolving fund, for funding the operations of the program.   
               All jail industry income shall be deposited in, and any  
               prisoner compensation shall be paid to the account of the  
               prisoner from, the Jail Industries Fund.


                 In the design and planning of facilities whose  
               construction, reconstruction, or remodeling is financed  
               under the County Correctional Facility Capital Expenditure  
               and Youth Facility Bond Act of 1988, products for  
               construction, renovation, equipment, and furnishings  
               produced and sold by the Prison Industry Authority or local  
               Jail Industry Authorities shall be utilized in the plans  
               and specifications unless the county or city and county  
               demonstrates either of the following to the satisfaction of  
               the BSCC or the CDCR, Division of Juvenile Justice:


                  o         The products cannot be produced and delivered  
                    without causing delay to the construction of the  
                    property.


                  o         The products are not suitable for the facility  
                    or competitively priced and cannot otherwise be  
                    reasonably adapted.


                 Requires counties and cities and counties to consult  
               with the staff of the Prison Industry Authority or local  
               Jail Industry Authority to develop new products and adapt  
               existing products to their needs.








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                 Prohibits the BSCC or the CDCR, Division of Juvenile  
               Justice, from entering into any contract with any county or  
               city and county until that county's or city and county's  
               plan for purchase from and consultation with the Prison  
               Industry Authority or local jail industry program is  
               reviewed and approved by the BSCC or the CDCR, Division of  
               Juvenile Justice. 


                 Declares that a special law is necessary and that a  
               general law cannot be made applicable within the meaning of  
               Section 16 of Article IV of the California Constitution  
               because of the unique needs of the Counties of Los Angeles,  
               Sacramento, San Diego, San Joaquin, San Luis Obispo,  
               Sonoma, Stanislaus, Tulare, Tuolumne, and Ventura.




          Prior  
          Legislation:  SB 262 (Presley) Chapter 1303/1987 authorized the  
          board of supervisors of a county, with the concurrence of the  
          sheriff of the county, to establish by ordinance or resolution,  
          a Jail Industry Commission for that county, to have the same  
          purposes, powers, and duties with respect to the county jail as  
          the Prison Industry Authority with respect to institutions under  
          the jurisdiction of the CDCR.
          Staff Comments:  According to the CDCR, the Prison Industry  
          Authority (PIA) does not anticipate a fiscal impact associated  
          with this bill. However, staff notes that by creating an  
          authority akin to the state's PIA, this bill could, depending on  
          the types of services and products developed and offered through  
          the JIA, compliment or compete with PIA programs, which could  
          have an unknown impact on future PIA operating revenues. 


          This bill could increase workload to the BSCC, which is required  
          to review and approve a county's plan for purchase from local  
          jail industry programs prior to entering into contracts with  
          counties or cities. Any fiscal impact to the BSCC is anticipated  
          to be minor and absorbable.









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          Additionally, this bill could result in increased costs to local  
          jails to provide the alternative programming and/or require  
          additional capital outlay to support JIA programs. Although  
          these costs are not mandatory and therefore not reimbursable by  
          the state through the Commission on State Mandates, it is  
          unclear whether state funding for the costs to local agencies  
          resulting from the provisions of this bill could potentially  
          utilize funding under Proposition 30 (2012) and/or Proposition  
          47 (2014).

          Based on the experience to date of the state's PIA, the  
          provisions of this measure could result in positive long-term  
          outcomes, including potential future cost-savings in jail  
          operations, reductions in state and local agency operating costs  
          through the use of jail industry authority products and  
          services, and reduced recidivism. 

          Recommended Amendments:  Staff notes the purposes of the Jail  
          Industry Authority appear to be largely modeled after the  
          existing statutes for the state Prison Industry Authority  
          specified in Penal Code § 2801, with the exception of the  
          purpose of operating a self-supporting program. To the extent  
          this stated purpose of the PIA is shared in common with the Jail  
          Industry Authority, the author may wish to consider the  
          following amendment to subdivision (b) of Penal Code § 4325:


           (5) To operate a work program for inmates in county correctional  
          facilities 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  
          county correctional facilities, thereby reducing the cost of its  
          operation.
           




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