BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 2012|
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                                   THIRD READING 


          Bill No:  AB 2012
          Author:   Bigelow (R), Cooper (D), Jones-Sawyer (D), and Wilk  
                    (R), et al.
          Amended:  8/15/16 in Senate
          Vote:     21

           SENATE PUBLIC SAFETY COMMITTEE:  7-0, 6/21/16
           AYES:  Hancock, Anderson, Glazer, Leno, Liu, Monning, Stone
             
           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/11/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
             
           ASSEMBLY FLOOR:  77-0, 4/11/16 - See last page for vote

           SUBJECT:   Jail Industry Authority


          SOURCE:    Los Angeles County Sheriff
                     Tuolumne County Sheriff

          DIGEST:   This bill replaces the authorization of the Jail  
          Industry Commission with an authorization for a Jail Industry  
          Authority, which will have similar purposes, powers and duties  
          as the Prison Industry Authority, as specified.  


          ANALYSIS:  


          Existing law:


           1) Authorizes the Boards of Supervisors of counties of the 9th  








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             or 19th class, with the concurrence of the county sheriff to  
             establish, by ordinance, a Jail Industry Commission (JIC) for  
             that county.  The JIC, if established, shall 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.   
             (Penal Code §§ 4325 and 2800, et seq.; Government Code §§  
             28030 and 28040.)


           2) States the JIC shall be composed of nine members, with four  
             being appointed and serving at the pleasure of the Board of  
             Supervisors, with three being appointed by and serving at the  
             pleasure of the Sheriff, the Chairperson of the Board of  
             Supervisors and the Sheriff as the ex officio Chairperson of  
             the JIC.  (Penal Code § 4326.)


           3) Requires the Boards of Supervisors, upon establishing a JIC,  
             to establish a Jail Industries Fund to fund the operations of  
             the JIC, to serve as a depository for any jail industry  
             income, and to pay compensation for prisoner participants.   
             (Penal Code § 4327.)


           4) Sunsets the provision which states that no JIC program shall  
             remain in existence four years after it is established.   
             (Penal Code §§ 4325 and 4329.)


           5) States that the purposes of the PIA are:  to develop and  
             operate industrial, agricultural and service enterprises  
             employing prisoners under the jurisdiction of the Department  
             of Corrections, to create and maintain working conditions as  
             much like private industry as possible, to allow prisoners to  
             earn funds and improve work habits and skills, and to operate  
             programs which will ultimately be self-supporting  
             financially.  (Penal Code § 2801.)


           6) Grants the PIA:  jurisdiction over the operation of all  
             industrial, agricultural, and service operations formerly  
             under the jurisdiction of the Correctional Industries  
             Commission; authority to establish new industrial,  







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             agricultural and service enterprises; to initiate new  
             vocational training programs; to assume authority over  
             existing vocational training programs; and the power to buy  
             and sell all equipment, supplies and materials used in the  
             PIA's operations.  (Penal Code § 2805.)


           7) Grants authority to the PIA to sell products and services to  
             states and local agencies.  (Penal Code § 2807.)


           8) Requires the PIA to fix a price schedule for all PIA  
             products and services.  (Penal Code § 2807.)


           9) Allows the PIA to sell products and services to nonprofits  
             so long as they are 501(c)(3) organizations with a memorandum  
             of understanding with a local education agency who provides  
             public those products or services at no cost.  (Penal Code §  
             2807; 26 U.S.C. § 501(c)(3).)


           10)Gives the PIA board the same authority as the board of  
             directors of private corporations, including but not limited  
             to the ability to enter into contracts.  (Penal Code § 2808.)


           11)Grants the general manager of the board, with the approval  
             of the Department of Finance, to borrow funds for operations,  
             supply and equipment purchases, and construction and repair  
             of facilities.  (Penal Code § 2810.)


           12)Requires the PIA to adopt and maintain a compensation  
             schedule for inmate employees, with no compensation to exceed  
             half the minimum wage as specified.  (Penal Code § 2811;  
             Labor Code § 1182.)


           13)Prohibits any person from selling products manufactured in  
             whole or in part by inmate labor.  (Penal Code § 2812.)


           14)Authorizes the PIA to allow inmates to make and sell small  







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             articles of handiwork, as provided.  (Penal Code § 2813.)


           15)Allows the PIA to authorize inmates to rebuild or repair  
             salvaged or abandoned vehicles, subject to the Vehicle Code,  
             and requires the funds from these sales be deposited in the  
             Restitution Fund.  (Penal Code §§ 2054, 2808 and 2813.5;  
             Vehicle Code §§ 22851.3 and 24007.5.)


           16)Allows the PIA to sell agricultural or animal husbandry  
             products to private persons.  (Penal Code § 2814.)


           17)Allows the PIA to sell goods and services to foreign  
             governments, foreign corporations or individuals with agents  
             in foreign markets.  (Penal Code § 2815.)


          This bill:


           1) Replaces the authorization for JICs with an authorization  
             for the Jail Industry Program. 


           2) Allows the Boards of Supervisors of the Counties of Lake,  
             Los Angeles, Madera, Sacramento, San Diego, San Joaquin, San  
             Luis Obispo, Sonoma, Stanislaus, Tulare, Tuolumne, and  
             Ventura to establish a Jail Industry Program.  


           3) States the purpose of the Jail Industry Authority includes  
             the following:  


              a)    To develop and operate industrial, agricultural or  
                service enterprises or programs under the jurisdiction of  
                the Sheriff or Country Director of Corrections;


              b)    To create and maintain working conditions within the  
                enterprises as similar as possible to those in private  
                industry;







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              c)    To ensure prisoners have the opportunity to earn funds  
                and acquire work skills; and


              d)    To allow inmates to earn time credits if so  
                authorized.


           4) Eliminates the sunset provision for programs established by  
             any JIC.


           5) States that it is the Legislature's intent in passing the  
             this bill is 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.   
             Additionally, that 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.   



           6) Makes technical and conforming changes. 


          Background


          As stated above, this bill allows the Counties of Lake, Los  
          Angeles, Madera, Sacramento, San Diego, San Joaquin, San Luis  
          Obispo, Sonoma, Stanislaus, Tulare, Tuolumne, and Ventura to  
          create a Jail Industry Authority within the county jail system,  
          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.







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


           Ensure prisoners have the opportunity to work productively and  
            earn funds and to acquire or improve effective work habits and  
            occupational skills.


           Allow inmates who participate in the enterprise or program the  
            opportunity to earn additional time credits, if authorized by  
            the sheriff or county director of corrections.




          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          According to the Senate Appropriations Committee:


           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,  
            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.  


           PIA:  Unknown impact, if any, on the PIA, including its  







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            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:  Senate Appropriations 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 bill.


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


          SUPPORT:   (Verified8/11/16)


          Los Angeles County Sheriff (co-source)
          Tuolumne County Sheriff (co-source)







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          California Public Defenders Association
          California State Association of Counties
          California State Sheriffs' Association
          Los Angeles County Board of Supervisors
          Sacramento County Sheriff's Department
          San Diego County Sheriff's Department
          San Luis Obispo County Sheriff's Office
          Stanislaus County Sheriff's Office
          Tulare County Sheriff's Office
          Ventura County Sheriff's Office 


          OPPOSITION:   (Verified8/11/16)




          Coalition of Small & Disabled Veteran Businesses 


          ASSEMBLY FLOOR:  77-0, 4/11/16
          AYES:  Achadjian, Alejo, Travis Allen, Atkins, Baker, Bigelow,  
            Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos,  
            Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh,  
            Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher,  
            Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gordon,  
            Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin,  
            Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark  
            Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams,  
            Wood
          NO VOTE RECORDED:  Gonzalez, Rendon

          Prepared by:Jessica  Devencenzi / PUB. S. / 
          8/15/16 20:10:13


                                   ****  END  ****


          








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