BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1197
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          Date of Hearing:   May 3, 2011
          Counsel: Milena Nelson


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                     AB 1197 (Hill) - As Amended:  March 31, 2011
           

          SUMMARY  :   Modifies the manner in which the California 
          Department of Corrections and Rehabilitation (CDCR) and the 
          Corrections Standards Authority (CSA) awards project funds.  
          Specifically,  this bill  :  

          1)States that county matching funds for local jail facilities 
            projects funded, as specified, shall be a minimum of 10%.

          2)Removes the funding preference for counties that assist 
            California in siting reentry facilities, as specified.

          3)Removes the funding preference for counties that assist 
            California in siting mental health day treatment and crisis 
            care, as specified, and to counties who provide a continuum of 
            care so that parolees with mental health and substance abuse 
            needs can continue to receive services at the conclusion for 
            their period of parole.  

          4)States that counties that applied for, and were awarded, 
            prison construction bond funds, as specified, shall be funded 
            in the amount awarded.

          5)States that after awarding previously promised funds from the 
            prison construction bond funds, as specified, funding 
            preference shall be given to counties that committed the 
            largest percentage of inmates to state custody in relation to 
            the total inmate population supervised by CDCR in 2010.  

           EXISTING LAW:

           1)Authorizes CDCR, a participating county, and the State Public 
            Works Board (SPWB) are authorized to acquire, design, and 
            construct a local jail facility approved by CSA, as specified, 
            or a site or sites owned by, or subject to a lease or option 
            to purchase held by, a participating county.  The ownership 








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            interest of a participating county in the site or sites for a 
            local jail facility must be determined by the SPWB to be 
            adequate for purposes of its financing in order to be eligible 
            under this chapter. �Government Code Section 15820.911(a).]

          2)Authorizes CDCR, a participating county, and SPWB to enter 
            into a construction agreement for these projects that shall 
            provide, at a minimum, performance expectations of the parties 
            related to the acquisition, design, construction, or 
            renovation of the local jail facility; guidelines and criteria 
            for use and application of the proceeds of revenue bonds, 
            notes, or bond anticipation notes issued by the SPWB to pay 
            for the cost of the approved local jail facility project; and 
            ongoing maintenance and staffing responsibilities for the term 
            of the financing.  �Government Code Section 15820.911(c).]

          3)Authorizes SPWB to issue up to $470 million in revenue bonds, 
            notes, or bond anticipation notes, as specified, to finance 
            the acquisition, design, or construction, and a reasonable 
            construction reserve, of approved local jail facilities, as 
            specified, and any additional amount to pay for the cost of 
            financing, as specified.  Proceeds from the revenue bonds, 
            notes, or bond anticipation notes may be used to reimburse a 
            participating county for the costs of acquisition, preliminary 
            plans, working drawings, and construction for approved 
            projects.  �Government Code Section 15820.913(a) and (b).]

          4)States that no state moneys shall be encumbered in contracts 
            let by let by a participating county until final architectural 
            plans and specifications have been approved by the CSA, and 
            subsequent construction bids have been received.  �Government 
            Code Section 15820.916(a).]

          5)States that participating county matching funds for projects 
            funded under the local jail facilities project shall be a 
            minimum of 25%.  The CSA may reduce matching fund requirements 
            for participating counties with a general population below 
            200,000 upon petition by a participating county to the CSA 
            requesting a lower level of matching funds. �Government Code 
            Section 15820.917(a).]

          6)Requires CDCR and CSA to give funding preference to counties 
            that assist California in siting reentry facilities, as 
            specified.  �Government Code Section 15820.917(b).]









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          7)Requires CDCR to give funding preference to counties that 
            assist California in siting mental health day treatment and 
            crisis care, as specified, and to counties who provide a 
            continuum of care so that parolees with mental health and 
            substance abuse needs can continue to receive services at the 
            conclusion of their period of parole. �Government Code Section 
            15820.917(c).]

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement  :  According to the author, "AB 1197 seeks 
            to further refine the allocation of 'AB 900 funds' for 
            construction of local jails.  Much progress has already been 
            made this session in eliminating some of the aspects of AB 900 
            that made it difficult for counties to access those funds.  
            However, there are still improvements that can be made to 
            ensure equitable access for all counties.  AB 1197 seeks to 
            strike a fair balance in the distribution of AB 900 funds."  

           2)Background  :  According to information provided by the author, 
            "Assembly Bill 900 (Chapter 7, Statutes of 2007) authorized 
            $1.2 billion in state lease revenue bond funding for the 
            construction of local jail facilities.  A number of counties 
            were awarded conditional funding in November of 2009 in the 
            first phase.  However, some of those counties were unable to 
            meet all of the imposed criteria for accepting the funds.   
            Much of original AB 900 funds, in part because of stringent 
            requirements, remained unallocated as of 2011.  

          "As part of the public safety realignment efforts approved by 
            the Governor and Legislature earlier this year, AB 111 
            (Chapter 16, Statutes of 2011) altered some of the 
            requirements for counties attempting to procure AB 900 funds.  
            The criteria enacted in AB 111 were further refined by AB 94 
            (Committee on Budget) which was pending on the Assembly Floor 
            as of this submission.  While these two efforts have made 
            great progress and eliminated some of the restrictive 
            provisions of AB 900, there remain inequities in the 
            allocation formulas that AB 1197 seeks to rectify to ensure 
            all counties have equal access to the remaining funds."

           3)Related Legislation  :









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             a)   AB 94 (Committee on Budget) modifies the manner in which 
               funds are awarded for local jail costs.  Specifically, AB 
               94 allows participating counties that received Phase I 
               conditional awards to relinquish the awards and reapply, 
               provided that no state moneys have been encumbered, adds a 
               funding preference to counties that relinquish their 
               conditional awards, provided that those counties continue 
               to assist the state in siting reentry facilities, reduces 
               county contribution of project costs from 25% to 10%, and 
               specifies that participating counties shall not receive 
               awards greater than $100 million.  AB 94 is pending the 
               Governor's signature.  

             b)   AB 111 (Committee on Budget), Chapter 16, Statutes of 
               2011, moved uncommitted jail construction funding, removed 
               reentry siting requirements for accessing Phase II funding, 
               removed benchmark requirements for accessing Phase II 
               funding, and added preference for counties that committed 
               the largest percentage of inmates to state custody in 
               relation to the total state inmate population in 2010.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None

           Opposition 
           
          California Coalition for Women Prisoners 
          Community United Against Violence
          Drug Policy Alliance
          Justice Now
          Legal Services for Prisoners with Children
           

          Analysis Prepared by  :    Milena Nelson / PUB. S. / (916) 
          319-3744















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