BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1130|
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THIRD READING
Bill No: SB 1130
Author: Aanestad (R), et al
Amended: 5/26/10
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 7-2, 4/13/10
AYES: Wright, Calderon, Denham, Negrete McLeod, Oropeza,
Price, Wyland
NOES: Florez, Yee
NO VOTE RECORDED: Harman, Padilla
SENATE APPROPRIATIONS COMMITTEE : 5-4, 5/17/10 (FAIL)
AYES: Cox, Alquist, Denham, Walters, Wyland
NOES: ehoe, Leno, Wolk, Yee
NO VOTE RECORDED: Corbett, Price
SENATE APPROPRIATIONS COMMITTEE : 7-3, 5/24/10
AYES: Cox, Alquist, Corbett, Denham, Leno, Walters, Wyland
NOES: Kehoe, Wolk, Yee
NO VOTE RECORDED: Price
SUBJECT : Corrections: Prison Industry Authority
SOURCE : Author
DIGEST : This bill provides that the requirements on
state agencies to purchase Prison Industry Authority (PIA)
products shall not restrict the Department of Corrections
and Rehabilitation from entering into contracts with
private entities or other public agencies for locally
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produced perishable goods provided at a lower price than
the price available from PIA.
ANALYSIS : 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 allows the California Department of Corrections
and Rehabilitation (CDCR) to purchase locally produced
perishable goods 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 CDCR to enter into
contracts with other entities, without having to go through
the PIA waiver process.
Comments
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 when many programs are being
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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 does not impact "good time" credits for inmates.
SB X3 18 (Ducheny), Chapter 28, Statutes of 2009-10 Third
Extraordinary Session, 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee analysis:
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
SUPPORT : (Verified 5/25/10)
Humboldt County Board of Supervisors
Del Norte County Board of Supervisors
Humboldt Creamery (Fortuna California)
Regional Council of Rural Counties
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OPPOSITION : (Verified 5/25/10)
SEIU 1000
Prison Industry Authority
ARGUMENTS IN SUPPORT : According to the Humboldt County
Board of Supervisors, "Humboldt County's businesses need to
have the ability to continue competing for these contracts;
it is vital to our local economy. One specific example
would be the continuation of milk and dairy product sales
to Pelican Bay State Prison (PBSP). Humboldt Creamery and
Bolman Distributors have a long-standing relationship and
have provided milk to Pelican Bay State Prison at a very
competitive price. 25% of Bolman's annual revenue comes
from the sale of milk to PBSP. In addition, Humboldt
Creamery employs an excess of 100 people and further loss
of wages and employment opportunities here on the North
Coast would be devastating. The opportunity for local
businesses to compete for PBSP contracts is a significant
step in ensuring local financial security. SB 1130 will
ensure that local vendors have the same opportunities to
compete for state agency contracts."
ARGUMENTS IN OPPOSITION : According to the Prison
Industry Authority (CALPIA)," The adoption of SB 1130 in
its current form would result in a reduction of annual
revenues to CALPIA of up to $62 million, and the
elimination of over 1,100 inmate rehabilitative position.
Approximately 780 of those positions would be within our
industries that produce perishable goods. As CALPIA
reinvests our profits into the provisions of Career
Technical Education (CTE), including Carpentry, Iron
Working, and Labor, as well as Commercial Diving, the loss
of these revenues would result in the elimination of an
additional 300 CTE inmate rehabilitative positions in the
most successful programs within CDCR - programs with a
documented recidivism rate of 10 percent.
"The loss of both the perishable goods portion of CALPIA
business and the CTE program would result in the
elimination of 95 staff positions within the CALPIA, a
majority of which reside in the Central Valley. Lastly,
CALPIA purchases substantial raw materials, goods, and
services to support these perishable food enterprises and
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our CTE programs. Because of SB 1130, there would be a
significant reduction in the purchase of raw materials from
California companies - at least $25 million annually."
TSM:do 6/1/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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