BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1130 (Aanestad)
Hearing Date: 05/24/2010 Amended: 05/12/2010
As proposed to be
amended by RN 13493
Consultant: Jacqueline Wong-HernandezPolicy Vote: G.O. 7-2
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BILL SUMMARY: SB 1130 provides that the requirements on state
agencies to purchase Prison Industry Authority (PIA) products
shall not restrict the Department of Corrections and
Rehabilitation (CDCR) from entering into contracts with private
entities or other public agencies for products provided at a
lower price than the price available from PIA.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12
2012-13 Fund
Expands CDCR contract options:
CDCR:
Potentially significant ongoing savings General
PIA:
Unknown potential revenue loss General
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STAFF COMMENTS: This bill failed passage (5-4) on May 17th.
Reconsideration was granted (9-0). For Vote Only.
Existing law requires all state agencies to make maximum use of
PIA products, and to purchase all products that can be produced
by PIA from that agency. State agencies can be granted a waiver
by PIA to purchase products elsewhere that PIA cannot provide,
but waivers are granted at the discretion of PIA. This bill
would allow CDCR to purchase products from private entities or
other public agencies if they are provided at a lower price than
the price available from PIA. This bill applies only to CDCR,
and does not require CDCR to change any of its contracts,
purchasing policies, or practices. It simply allows the
department to enter into contracts with other entities, without
having to go through the PIA waiver process.
PIA is a self-sufficient program that provides vocational
training to approximately 6,900 CDCR inmates, and raises its own
revenue to fund its operations. CDCR is the largest purchaser of
PIA products, and the department that most directly benefits
from CDCR programming. Moreover, the Secretary of CDCR is the
Chair of the Prison Industry Board. Considering CDCR's stated
position that PIA is a valuable program for producing products,
providing training, and reducing recidivism, the department is
unlikely to contract with other entities for products that could
be provided by PIA.
CDCR has also indicated that any reduction of PIA contracts
could result in a reduction of programming, and that CDCR would
have to provide alternate vocation training from its operating
budget. While making a choice to provide alternate vocational
training would actually be at CDCR's discretion (the department
would not be required by either statute or regulations to
replace PIA programming), and a very unlikely choice at a time
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SB 1130 (Aanestad)
when many programs are being reduced or eliminated, CDCR would
likely take programming impacts into consideration when deciding
whether or not to enter into non-PIA contracts. In the event
that CDCR did decide to contract with another entity for
particular products available for lower prices, there would be
direct savings to CDCR.
This bill would not impact "good time" credits for inmates. SB
X3 18 (Ducheny, 2009), which specified CDCR changes and
reductions, changed the way that good time credits are awarded
to CDCR inmates. Because inmates are now eligible for time
credits regardless of participation in vocational programming
(they can be on a waiting list for a program), even the unlikely
loss of PIA contracts and possible reduction in PIA's work force
will be unlikely to increase inmates' incarceration time. CDCR
would not have to incur additional costs for either extended
incarceration or for new vocational programming, in order to
maximize time credits.
The proposed amendments would further limit CDCR to entering
into contracts with private entities or other public agencies
for "locally produced perishable goods"provided at a lower price
than the price available from PIA.