BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2102
                                                                  Page  1

          Date of Hearing:   April 17, 2012
          Counsel:                Milena Blake


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                     AB 2102 (Hill) - As Amended:  March 29, 2012

           
          SUMMARY  :   Modifies the process by which the State Public Works 
          Board distributes funds for construction of local jail 
          facilities.  Specifically,  this bill  :  

          1)Requires a county that has been awarded funds for the 
            construction of local jail facilities to return those funds by 
            August 1, 2013 if those funds have not been encumbered and the 
            following conditions are not met by June 1, 2013:

             a)   The county has established a jail planning unit and a 
               project development team;

             b)   The county has completed a jail needs assessment;

             c)   A function plan has been completed for the proposed 
               jail;

             d)   The jail site has been identified and purchased;

             e)   An environmental impact report has been completed; and, 

             f)   The county board of supervisors has approved the jail 
               functional plans and scope of the jail.

          2)Specifies that funds returned to the state through the above 
            procedure must be used to fund county jail facilities and must 
            be distributed pursuant to existing provisions, as specified.

          3)Requires that a county that has met the above criteria, and 
            previously had been awarded funding, be given priority in 
            distributing these funds.  

           EXISTING LAW:  

          1)Authorizes the State Public Works Board to borrow funds for 








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            project costs related to prison construction, as specified.  
            (Government Code Section 15819.402.)

          2)Authorizes the State Public Works Board to issue revenue 
            bonds, negotiable notes, or negotiable bond anticipation notes 
            to finance the acquisition, design, and construction of prison 
            facilities.  (Government Code Section 15819.403.)

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   

          1)Author's Statement  : According to the author, "This legislation 
            is necessary to free up money that was awarded in Phase 1 but 
            has not been returned and has gone unused.  Other counties 
            have purchased land and are ready to begin construction on a 
            jail facility that will have an immediate benefit to the 
            state.  2017 is too long to wait for counties that were 
            awarded funds in 2008.  AB 2102 creates a competitive process 
            where counties can compete for unused funds only if they meet 
            specified milestones.

          "In 2007, the Legislature passed AB 900, which authorized $7.7 
            billion in lease-revenue bonds in order to relieve prison 
            overcrowding.  Several counties were awarded money under Phase 
            1 of AB 900 but returned their funding due to burdensome 
            conditions attached to the funding, specifically the 500-bed 
            state reentry facility requirement.  Other counties did not 
            return their funding and have been sitting on hundreds of 
            millions of unused Phase 1 dollars for years providing no 
            benefit to the state.  Under current law, counties that held 
            onto their AB 900 awards have not been required to demonstrate 
            need or an available site until 2017, compared to other 
            counties who gave their money back so it could be used more 
            quickly under Phase 2 of AB 900.  Phase 2 was created through 
            AB 94 and AB 111 last year which modified Phase 1 to address 
            the burdensome conditions and eliminated the re-entry bed 
            requirement.  Unfortunately, counties who were awarded money 
            in Phase 1 but returned it in order to free-up money for other 
            counties, were not awarded money in Phase 2."

           2)Background  : According to information provided by the author, 
            "In 2008 the County of San Mateo applied and won a $100 
            million award under Phase 1, AB 900 (state lease-revenue bonds 
            for reentry facilities).  After discussions with CDCR, it was 








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            determined that our site would not accommodate the County's 
            jail-bed needs and a 500-bed state reentry facility.  The 
            County offered to include a 125-bed state reentry facility as 
            part of the jail project but was rejected by CDCR.

            "As a result, the County relinquished the $100 million award 
            to enable another county that was able to accommodate the 
            required 500-bed minimum.  The counties that held onto their 
            AB 900 awards have not been required to demonstrate need or an 
            available site until 2017.  This has meant hundreds of 
            millions of state bond funds are going unspent until 2017.    

            "Phase II: San Mateo County submitted a statement of interest 
            to apply for Phase II funding under the changes outlined in AB 
            94 and AB 111. With the elimination of the re-entry bed 
            requirement as a condition of funding and the fact that it had 
            met other critical planning milestones, the county believed it 
            was in a good position to receive an award.   However, San 
            Mateo was not invited to apply for Phase II funding because of 
            the low number of state prisoner commitments. It seems the 
            county was punished for keeping low level offenders in the 
            county system for purpose of rehabilitation and treatment 
            rather than ship them off to state.  This despite the fact 
            that the County also demonstrated both good faith in 
            relinquishing their Phase 1 early in the process and 
            completing significant project milestones to show readiness.  

            "The cost of the San Mateo County jail construction project is 
            $165 million.  It will take 35 months to complete with a start 
            date of June 2012.   This project is required to solve over 
            crowded conditions and create badly needed construction jobs 
            that will have a ripple effect in our economy. San Mateo 
            County's adult correctional facilities are severely 
            overcrowded with daily inmate populations that range up to 160 
            percent of rated capacity. Overcrowding has many consequences, 
            including putting at risk the maintaining of a safe and secure 
            facility, increased staffing costs, and reduced life 
            expectancy of the facility.  

            "After completing a comprehensive needs assessment and working 
            closely with the community, the Board of Supervisors acquired 
            4.85 acres of land in the Redwood City for the purpose of 
            constructing a new jail with close proximity to the Hall of 
            Justice.   









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            "Public Safety Realignment took effect October 2011, which 
            according to CDCR would eventually increase the average daily 
            population housed in San Mateo County jails by 241 inmates.  
            Yet, the realigned population is out pacing that estimate.  In 
            just the first five months, the San Mateo County jail has 
            received 304 inmates under realignment.     

            "The San Mateo County Board of Supervisors is working with the 
            Sheriff to ensure the new jail facility will support model 
            reentry and gender-responsive programming to reduce rates of 
            recidivism.  It will be built consistent with our 
            green-building ordinance to meet LEED certified ratings. 

            "On October 4, 2011, the Board approved the scope and size of 
            the jail project. A phased approach may be employed by 
            constructing a jail with 576 beds, which will include a 'warm 
            shell' for future growth.  The inmate beds are designated as a 
            Type II facility for the main housing unit and Type IV for the 
            transitional facility. The transitional facility will include 
            88 non-secure beds to help increase programming opportunities, 
            successful community re-integration, and reduce recidivism.  
            It's anticipated that the facilities will be two separate 
            buildings with connectivity between them.

            "After a competitive process, an architect and construction 
            management team has been retained.  A negative environmental 
            declaration has already been approved. The County of San Mateo 
            applied and won a $100 million award under Phase 1, AB 900 
            (state lease-revenue bonds for reentry facilities).  After 
            discussions with CDCR, it was determined that our site would 
            not accommodate the County's jail-bed needs and a 500-bed 
            state reentry facility.  The County offered to include a 
            125-bed state reentry facility as part of the jail project but 
            was rejected by CDCR.

            "As a result, the County relinquished the $100 million award 
            to enable another county that was able to accommodate the 
            required 500-bed minimum.  Other counties that held onto their 
            AB 900 awards but have no required milestone to demonstrate 
            need and a site until 2017.  That means hundreds of millions 
            of state bond funds are going unspent until 2017, when these 
            funds could be used now in our sluggish economy. San Mateo 
            County was not invited to apply for Phase II funding, yet the 
            County demonstrated both good faith and need; moreover, San 
            Mateo Count is ready to begin construction."








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           3)Legislative Analyst's Office Report  : The Legislative Analyst's 
            Office (LAO) recently released a report titled, "2012-13 
            Budget: Refocusing CDCR After the 2011 Realignment."    This 
            report included a discussion on the future construction of 
            prison beds.  

          "In 2007, the Legislature passed AB 900, in order to relieve the 
            significant prison overcrowding problem. Specifically, AB 900 
            authorized a total of $7.7 billion-$7.4 billion in 
            lease-revenue bonds and $300 million in General Fund 
            support-for a broad package of state prison and local jail 
            construction and rehabilitation initiatives, as follows:

             a)   $2.4 billion to construct infill beds intended to 
               replace so-called 'temporary' housing in gymnasiums, day 
               rooms, and other public spaces in prisons. (Infill beds are 
               housing units constructed on the grounds of existing 
               facilities.) Assembly Bill 900 did not specify the mix of 
               high- and low-security infill beds to be constructed.

             b)   $2.6 billion to construct 'reentry facilities' primarily 
               for inmates within one year of being released from custody.

             c)   $1.1 billion to construct inmate health care facilities.

             d)   $1.2 billion to help counties construct local jail 
               facilities.

             e)   $300 million to make various infrastructure improvements 
               at existing prisons.

            "At this time, over $5 billion authorized in AB 900 has not 
            been spent. However, CDCR has developed an AB 900 Integrated 
            Strategy Plan that lists the projects it plans to complete in 
            the next few years with these funds, as well as the number and 
            type of housing beds (such as lower security or higher 
            security) that will be built. In addition to the funds 
            authorized in AB 900, the Legislature has also provided CDCR 
            with $135 million for other prison construction and renovation 
            projects. At this time, however, the department has not 
            provided a revised statewide prison construction plan for both 
            of the above funding sources that reflects the recent 
            realignment of lower-level offenders to counties. The 
            administration indicates that it is currently in the process 








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            of reevaluating its plans."


           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          San Mateo County, Board of Supervisors (Sponsor)

           Opposition 
           
          None
           
          Analysis Prepared by  :    Milena Blake / PUB. S. / (916) 319-3744