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 11, 2016   |Consultant: Jolie Onodera       |
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          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,  







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            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  








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               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.







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