BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2012 (Bigelow) - Jail Industry Authority ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 28, 2016 |Policy Vote: PUB. S. 7 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Jolie Onodera | | | | ----------------------------------------------------------------- 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. AB 2012 (Bigelow) Page 1 of ? 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 AB 2012 (Bigelow) Page 2 of ? 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. AB 2012 (Bigelow) Page 3 of ? 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. AB 2012 (Bigelow) Page 4 of ? 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. AB 2012 (Bigelow) Page 5 of ? 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. -- END -- AB 2012 (Bigelow) Page 6 of ?