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 11, 2016 |Consultant: Jolie Onodera | | | | ----------------------------------------------------------------- Bill Summary: AB 2012 would authorize the creation of a Jail Industry Authority within the county jail system, as specified. *********** ANALYSIS ADDENDUM - SUSPENSE FILE *********** The following information is revised to reflect amendments adopted by the committee on August 11, 2016 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 12 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, AB 2012 (Bigelow) Page 1 of ? 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. 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) Author Amendments: Add Lake and Madera Counties to the JIA. Specify that one of the purposes of the JIA is "To AB 2012 (Bigelow) Page 2 of ? 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." Add the following legislative intent language: It is the intent of the Legislature in enacting this act to encourage counties that establish and operate jail industries to provide a program that will increase the likelihood of inmate success upon release and to decrease recidivism by obtaining long-term high-paying jobs. It is also the intent of the Legislature, upon implementation of the jail industry program, that small businesses and disabled veteran businesses be provided every opportunity to have equal and competitive opportunities to provide goods and services to facilitate the operations of the county-run jail facilities. -- END --