BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2012


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2012 (Bigelow, et al.)


          As Amended  August 15, 2016


          Majority vote


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          |ASSEMBLY:  | 77-0 |(April 11,     |SENATE: | 39-0 |(August 17,      |
          |           |      |2016)          |        |      |2016)            |
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          |           |      |               |        |      |                 |
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          Original Committee Reference:  PUB. S.


          SUMMARY:  Replaces the authorization of the Jail Industry  
          Commission  (JIC) with an authorization for a Jail Industry  
          Authority (JIA), which will have similar purposes, powers and  
          duties as the Prison Industry Authority (PIA).  


          The Senate amendments add Lake, Madera, and San Luis Obispo to  
          the list of counties authorized to establish a JIA, state  
          legislative intent, and an additional purpose for establishment  
          of a JIA.


          EXISTING LAW:  


          1)Authorizes the Boards of Supervisors of counties of the 9th or  
            19th class, with the concurrence of the county sheriff to  
            establish, by ordinance, a JIC for that county.  The JIC, if  








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            established, shall have the same purposes, powers and duties  
            with respect to county jails as the PIA has for institutions  
            under the jurisdiction of the Department of Corrections.  
          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 Commission.  


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


          4)Sunsets the provision which states that no JIC program shall  
            remain in existence four years after it is established.  


          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.  
             


          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,  
            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  
            Prison Industry Authority's operations.  










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          7)Grants authority to the PIA to sell products and services to  
            states and local agencies.  


          8)Requires the PIA to fix a price schedule for all PIA products  
            and services.  


          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.  


          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.  


          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.  


          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.  


          13)Prohibits any person from selling products manufactured in  
            whole or in part by inmate labor.  


          14)Authorizes the PIA to allow inmates to make and sell small  
            articles of handiwork, as provided.  


          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.  








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          16)Allows the PIA to sell agricultural or animal husbandry  
            products to private persons.  


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


          AS PASSED BY THE ASSEMBLY, this bill:


          1)Replaced the authorization for Jail Industry Commissions with  
            an authorization for the Jail Industry Program. 
          2)Allowed the Boards of Supervisors of the counties of Los  
            Angeles, Sacramento, San Diego, San Joaquin, Sonoma,  
            Stanislaus, Tulare, Tuolumne, and Ventura to establish a Jail  
            Industry Program.  


          3)Stated 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;


             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)Eliminated the sunset provision for programs established by  








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            any Jail Industry Commission.
          5)Made technical and conforming changes. 


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee:


          1)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. 


          2)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.  


          3)Prison Industry Authority (PIA):  Unknown impact, if any, on  
            the PIA, including its existing contracts with local  
            governments and future operating revenues.


          4)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. 


          5)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  








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            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.


          6)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)


          COMMENTS:  According to the author, "Many counties across the  
          nation have realized enormous benefits from their jail industry  
          programs. 


          "Counties that operate jail industries agree that the programs  
          offer one of the few win-win opportunities in corrections.   
          Everyone benefits from a successful industry program-the jail,  
          taxpayers, communities, families, and inmates.  The public  
          benefits both financially (the program provides services or  
          products at low or no cost, and there is less vandalism and  
          property damage in the jail) and socially (the program increases  
          the likelihood of inmate success upon release and reduces  
          overcrowding).


          "Jail administrators and staff benefit from an improved jail  








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          environment (less tension, damage, and crowding) and are  
          provided with a management tool both to encourage positive  
          inmate behavior and to form a more visible and positive public  
          image.


          "Inmates clearly benefit from increased work activities,  
          experience, and, sometimes, earnings.  Further, as tension,  
          destruction, and crowding in the jail are reduced, inmates enjoy  
          a better living environment.  For some inmates, their experience  
          in the industries program breaks a lifetime pattern of failure  
          by helping them secure and maintain meaningful post release  
          employment.  Every county within the state of California should  
          have the authority to start a jail industries program within  
          their jail system."


          Please see the policy committee analysis for a full discussion  
          of this bill.


          Analysis Prepared by:                                             
                          Gregory Pagan / PUB. S. / (916) 319-3744  FN:  
          0004317