Amended in Assembly June 12, 2016

Amended in Assembly May 25, 2016

Senate BillNo. 844


Introduced by Committee on Budget and Fiscal Review

January 7, 2016


begin deleteAn act relating to the Budget Act of 2016. end deletebegin insertAn act to add Chapter 3.132 (commencing with Section 15820.94) to Part 10b of Division 3 of Title 2 of the Government Code, relating to correctional facilities, and making an appropriation therefor, to take effect immediately, bill related to the budget.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 844, as amended, Committee on Budget and Fiscal Review. begin deleteBudget Act of 2016. end deletebegin insertCorrectional facilities: construction: financing.end insert

begin insert

Existing law authorizes the Board of State and Community Corrections or the Department of Corrections and Rehabilitation, the State Public Works Board, and a participating county, as defined, to acquire, design, and construct an adult local criminal justice facility approved by the Board of State and Community Corrections, or to acquire a site or sites owned by, or subject to a lease option to purchase held by, a participating county. Existing law authorizes the State Public Works Board to issue up to $500,000,000 in revenue bonds, notes, or bond anticipation notes to finance the acquisition, design, and construction of approved adult local criminal justice facilities. The funds derived from those revenue bonds, notes, or bond anticipation notes are continuously appropriated for those purposes.

end insert
begin insert

This bill would enact provisions similar to the provisions described above authorizing the Board of State and Community Corrections or the Department of Corrections and Rehabilitation, the State Public Works Board, and a participating county, as defined, to acquire, design, and construct an adult local criminal justice facility, as defined. The bill would authorize the State Public Works Board to issue up to $270,000,000 in revenue bonds, notes, or bond anticipation notes to finance the acquisition, design, and construction of approved adult local criminal justice facilities, setting aside $20,000,000 to be awarded to Napa County, and would continuously appropriate the funds for those purposes. Because the bill would continuously appropriate funds for these purposes, it would make an appropriation. The bill would establish procedures for approving and funding these projects.

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This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

end insert
begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.

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Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertChapter 3.132 (commencing with Section
215820.94) is added to Part 10b of Division 3 of Title 2 of the end insert
begin insert3
Government Code
end insert
begin insert, to read:end insert

begin insert

4 

5Chapter  begin insert3.132.end insert Financing of Adult Local Criminal
6Justice Facilities - 2016
7

 

8

begin insert15820.94.end insert  

(a) For purposes of this chapter, “participating
9county” means a county, city and county, or regional consortium
10of counties, within the state that has been certified to the State
11Public Works Board (board) by the Board of State and Community
12Corrections (BSCC) as having satisfied all of the requirements set
13forth in this chapter for financing an adult local criminal justice
14facility pursuant to this chapter.

15
(b) (1) For purposes of this chapter, an adult local criminal
16justice facility may include improved housing with an emphasis
17on expanding program and treatment space as necessary to
18manage the adult offender population under the jurisdiction of the
19sheriff or county department of corrections, as may be applicable,
20consistent with the legislative intent described in Sections 17.5
P3    1and 3450 of the Penal Code, to be further defined by the BSCC in
2duly adopted regulations.

3
(2) For purposes of this chapter, an adult local criminal justice
4facility may also include custodial housing, reentry, program,
5mental health, or treatment space necessary to manage the adult
6offender population under the jurisdiction of the sheriff or county
7department of corrections, as may be applicable, consistent with
8the legislative intent described in Sections 17.5 and 3450 of the
9Penal Code, to be further defined by the BSCC in duly adopted
10regulations.

11

begin insert15820.940.end insert  

(a) The BSCC or the Department of Corrections
12and Rehabilitation (CDCR), a participating county, and the board
13are authorized to acquire, design, and construct an adult local
14criminal justice facility approved by the BSCC pursuant to Section
1515820.945, or to acquire a site or sites owned by, or subject to a
16lease or option to purchase held by, a participating county. For
17the purposes of this chapter, acquisition shall include, but is not
18limited to, acquisition of completed facilities through a build-to-suit
19purchase. Facilities financed pursuant to this chapter may be
20delivered through either a design-bid-build or a design-build
21process. The ownership interest of a participating county in the
22site or sites for an adult local criminal justice facility shall be
23determined by the board to be adequate for purposes of its
24financing in order to be eligible under this chapter.

25
(b) Notwithstanding Section 14951, the participating county
26may assign an inspector during the construction of the adult local
27criminal justice facility.

28
(c) The BSCC or the CDCR, a participating county, and the
29board shall enter into an agreement for each adult local criminal
30justice facility that shall provide, at a minimum, performance
31expectations of the parties related to the acquisition, design, and
32construction, including, without limitation, renovation, of the adult
33local criminal justice facility; guidelines and criteria for use and
34application of the proceeds of revenue bonds, notes, or bond
35anticipation notes issued by the board to pay for the cost of the
36approved adult local criminal justice facility; and ongoing
37maintenance and staffing responsibilities for the term of the
38financing.

39
(d) The agreement shall include a provision that the
40participating county agrees to indemnify, defend, and hold
P4    1harmless the State of California for any and all claims and losses
2arising out of the acquisition, design, and construction of the adult
3local criminal justice facility. The agreement may also contain
4additional terms and conditions that facilitate the financing by the
5board.

6
(e) The scope and cost of the adult local criminal justice
7facilities shall be subject to approval and administrative oversight
8by the board.

9
(f) For purposes of compliance with the California
10Environmental Quality Act (Division 13 (commencing with Section
1121000) of the Public Resources Code), the board, BSCC, and the
12CDCR are not a lead or responsible agency; the participating
13county is the lead agency.

14

begin insert15820.941.end insert  

Upon a participating county’s receipt of responsive
15construction bids or design-build proposals, or a participating
16county’s notification to the board of its intent to exercise a
17purchase option, and after the adult local criminal justice facility
18has been certified pursuant to Section 15820.94, the board and
19the BSCC or the CDCR may borrow funds for project costs from
20the Pooled Money Investment Account pursuant to Sections 16312
21and 16313, or from any other appropriate source. In the event any
22of the revenue bonds, notes, or bond anticipation notes authorized
23by this chapter are not sold, the BSCC or the CDCR shall commit
24a sufficient amount of its support appropriation to repay any loans
25made for an approved adult local criminal justice facility.

26

begin insert15820.942.end insert  

(a) The board may issue up to two hundred seventy
27million dollars ($270,000,000) in revenue bonds, notes, or bond
28anticipation notes, pursuant to Chapter 5 (commencing with
29Section 15830), to finance the acquisition, design, and construction,
30including, without limitation, renovation, and a reasonable
31construction reserve, of approved adult local criminal justice
32facilities described in Section 15820.940, and any additional
33amount authorized under Section 15849.6 to pay for the cost of
34financing.

35
(b) Proceeds from the revenue bonds, notes, or bond anticipation
36notes may be used to reimburse a participating county for the costs
37of acquisition, design, and construction, including, without
38limitation, renovation, for approved adult local criminal justice
39facilities.

P5    1
(c) Notwithstanding Section 13340, funds derived pursuant to
2this section and Section 15820.941 are continuously appropriated
3for purposes of this chapter.

4

begin insert15820.943.end insert  

In support of this state financing, the Legislature
5finds and declares all of the following:

6
(a) California’s current challenges in managing jail populations
7follow decades of overcrowded and aging jails, and piecemeal,
8erratic, and incomplete responses to dealing with these problems.
9Reversing course will require sustainable solutions that must
10include sound planning and implementation, and must be grounded
11in the principle that jail resources must be well-planned and
12employed efficiently and effectively to prevent overcrowding and
13promote public safety through the broader use of evidence-based
14practices and policies in the criminal justice system.

15
(b) California needs a long-term, statewide strategy to effectively
16manage its jail population and jail resources. Without an ongoing
17analytical framework for taking into account factors such as
18population growth, criminogenic needs of the current and future
19jail populations, crime rates, custodial housing needs, and
20additional changes to realignment or sentencing laws and
21practices, California will continue to resort to reactive,
22fragmentary fixes to its jail condition and capacity problems
23instead of being fully prepared to develop an effective and
24sustainable system of local custodial facilities.

25
(c) The county adult criminal justice system needs improved
26housing with an emphasis on expanding program and treatment
27space to manage the adult offender population under its
28jurisdiction.

29
(d) Improved county adult criminal justice housing with an
30emphasis on expanding program and treatment space will enhance
31public safety throughout the state by providing increased access
32to appropriate programs or treatment.

33
(e) By improving county adult criminal justice housing with an
34emphasis on expanding program and treatment space, this
35financing will serve a critical state purpose by promoting public
36safety.

37
(f) This purpose represents valuable consideration in exchange
38for this state action.

39

begin insert15820.944.end insert  

With the consent of the board, the BSCC or the
40CDCR and a participating county are authorized to enter into
P6    1leases or subleases, as lessor or lessee, for any property or
2approved adult local criminal justice facility and are further
3authorized to enter into contracts or other agreements for the use,
4maintenance, and operation of the adult local criminal justice
5facility in order to facilitate the financing authorized by this
6chapter. In those leases, subleases, or other agreements, the
7participating county shall agree to indemnify, defend, and hold
8harmless the State of California for any and all claims and losses
9accruing and resulting from or arising out of the participating
10county’s use and occupancy of the adult local criminal justice
11facility.

12

begin insert15820.945.end insert  

(a) The BSCC shall adhere to its duly adopted
13regulations for the approval or disapproval of adult local criminal
14justice facilities. The BSCC shall also consider cost effectiveness
15in determining approval or disapproval. No state moneys shall be
16encumbered in contracts let by a participating county until one of
17the following occurs:

18
(1) Final architectural plans and specifications have been
19approved by the BSCC, and subsequent construction bids have
20been received.

21
(2) Documents prepared by a participating county pursuant to
22paragraph (1) of subdivision (a) of Section 22164 of the Public
23Contract Code have been approved by the BSCC, and subsequent
24design-build proposals have been received pursuant to that section.

25
(3) The participating county has notified the board of its intent
26to exercise an option to purchase the completed facility pursuant
27to Section 15820.941.

28
(b) The review and approval of plans, specifications, or other
29documents by the BSCC are for the purpose of ensuring the proper
30administration of moneys and the determination of whether the
31adult local criminal justice facility specifications comply with law
32and regulation. The BSCC may require changes in construction
33materials to enhance safety and security if materials proposed at
34the time of final plans and specifications are not essential and
35customary as used statewide for facilities of the same security
36level. Participating counties are responsible for the acquisition,
37design, construction, staffing, operation, repair, and maintenance
38of the adult local criminal justice facility.

P7    1
(c) The BSCC shall establish minimum standards, funding
2schedules, and procedures, which shall take into consideration,
3but not be limited to, the following:

4
(1) Certification by a participating county of control of the adult
5local criminal justice facility site through either fee simple
6ownership of the site or comparable long-term possession of the
7site, and right of access to the adult local criminal justice facility
8sufficient to ensure undisturbed use and possession.

9
(2) Documentation of the need for improved adult local criminal
10justice facility housing with an emphasis on expanded program
11and treatment space. A county shall not be required to submit a
12new needs assessment if the county previously submitted a needs
13assessment for a request under the financing program described
14in Chapter 3.131 (commencing with Section 15820.93).

15
(3) A written adult local criminal justice facility proposal.

16
(4) Submission of a staffing plan for the adult local criminal
17justice facility, including operational cost projections and
18documentation that the adult local criminal justice facility will be
19able to be safely staffed and operated within 90 days of completion,
20as may be applicable.

21
(5) Submission of architectural drawings, which shall be
22approved by the BSCC for compliance with minimum adult
23detention facility standards and which shall also be approved by
24the State Fire Marshal for compliance with fire safety and life
25safety requirements.

26
(6) Documentation evidencing compliance with the California
27Environmental Quality Act (CEQA).

28
(7) Provisions intended to maintain the tax-exempt status of the
29bonds, notes, or bond anticipation notes issued by the board.

30

begin insert15820.946.end insert  

(a) The participating county contribution for adult
31local criminal justice facilities financed under this chapter shall
32be a minimum of 10 percent of the total project costs. The BSCC
33may reduce contribution requirements for participating counties
34with a general population below 200,000 upon petition by a
35participating county to the BSCC requesting a lower level of
36contribution.

37
(b) The BSCC shall determine the funding and scoring criteria
38consistent with the requirements of this chapter. Financing shall
39be awarded only to those counties that have previously received
40only a partial award or have never received an award from the
P8    1state within the financing programs authorized in Chapters 3.11
2(commencing with Section 15820.90) to 3.131 (commencing with
3Section 15820.93), inclusive. Notwithstanding this restriction,
4twenty million dollars ($20,000,000) of the amount authorized in
5Section 15820.942 shall be set aside and awarded to Napa County.
6The funding criteria shall include, as a mandatory criterion,
7documentation of the percentage of pretrial inmates in the county
8jail from January 1, 2015, to December 31, 2015, inclusive, and
9a description of the county’s current risk-assessment-based-pretrial
10release program. Funding preference shall also be given to
11counties that are most prepared to proceed successfully with this
12financing in a timely manner. The determination of preparedness
13to proceed shall include the following:

14
(1) Counties providing a board of supervisors’ resolution
15authorizing an adequate amount of available matching funds to
16satisfy the counties’ contribution and approving the forms of the
17project documents deemed necessary, as identified by the board
18to the BSCC, to effectuate the financing authorized by this chapter,
19and authorizing the appropriate signatory or signatories to execute
20those documents at the appropriate times. The identified matching
21funds in the resolution shall be compatible with the state’s lease
22revenue bond financing.

23
(2) Counties providing documentation evidencing CEQA
24compliance has been completed. Documentation of CEQA
25compliance shall be either a final Notice of Determination or a
26final Notice of Exemption, as appropriate, and a letter from county
27counsel certifying the associated statute of limitations has expired
28and either no challenges were filed or identifying any challenges
29filed and explaining how they have been resolved in a manner that
30allows the project to proceed as proposed.

31
(c) Funding consideration shall be given to counties that are
32seeking to replace compacted, outdated, or unsafe housing capacity
33that will also add treatment space or counties that are seeking to
34renovate existing or build new facilities that provide adequate
35space for the provision of treatment and rehabilitation services,
36including mental health treatment.

37
(d) A participating county may replace existing housing
38capacity, realizing only a minimal increase of capacity, using this
39financing authority if the requesting county clearly documents an
40existing housing capacity deficiency.

P9    1
(e) A participating county with a request resulting in any
2increase in capacity using this financing authority shall be required
3to certify and covenant in writing that the county is not, and will
4not be, leasing housing capacity to any other public or private
5entity for a period of 10 years beyond the completion date of the
6adult local criminal justice facility.

7
(f) Any locked facility constructed or renovated with state
8funding awarded under this program shall include space to provide
9onsite, in-person visitation capable of meeting or surpassing the
10minimum number of weekly visits required by state regulations for
11persons detained in the facility.

12
(g) Any county applying for financing authority under this
13program shall include a description of efforts to address sexual
14abuse in its adult local criminal justice facility constructed or
15renovated pursuant to this chapter.

end insert
16begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
17to the Budget Bill within the meaning of subdivision (e) of Section
1812 of Article IV of the California Constitution, has been identified
19as related to the budget in the Budget Bill, and shall take effect
20immediately.

end insert
begin delete

21

end delete
begin delete
22

SECTION 1.  

It is the intent of the Legislature to enact statutory
23changes, relating to the Budget Act of 2016.

end delete


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