BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2012| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AB 2012 Page 2 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, AB 2012 Page 3 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 AB 2012 Page 4 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; AB 2012 Page 5 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. AB 2012 Page 6 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 AB 2012 Page 7 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) AB 2012 Page 8 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 **** AB 2012 Page 9