BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2102
                                                                  Page  1

          Date of Hearing:   April 25, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

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

          Policy Committee:                              Public 
          SafetyVote:  6-0 

          Urgency:      No                  State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill changes the process by which currently authorized 
          local jail bond funding is distributed. Specifically, this bill: 
           

          1)Requires a county that has been awarded funds for jail 
            construction 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 (EIR) has been completed. 

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

          1)Creates a Phase III for county jail bond fund awards, using 
            returned awards, and specifies that funds returned to the 
            state pursuant to this measure be used to fund county jail 
            facilities and be distributed pursuant to existing provisions 
            (Government Code Chapter 3.2.1.).

          2)Requires that a county that had been awarded funding under 
            Chapter 3.2.1 receive priority in receiving funds returned 
            pursuant to this measure.  









                                                                  AB 2102
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           FISCAL EFFECT  

          No new state cost. The intent of this bill is to redirect some 
          amount of the $1.2 billion in existing county jail bond 
          authorization, potentially in the hundreds of millions of 
          dollars. 

           COMMENTS  

           1)Rationale  . The author contends the current jail construction 
            bond awards disadvantage counties - particularly San Mateo 
            County - that relinquished initial grant awards in the $774 
            million Phase I of the $1.2 billion lease revenue bond 
            authorization for local jail construction contained in AB 900 
            (2007) and did not receive funding in Phase II. The author 
            argues there are counties that received Phase I awards that 
            have not shown sufficient progress to warrant maintaining 
            those awards.  

          The intent of the author and sponsor, the San Mateo County Board 
          of Supervisors, is to create a new set of criteria that could 
          result in a reversal of bond grant awards, making reverted funds 
          available to counties that did not receive an award. 

           2)Current Phase I and II awards  . All of the $1.2 billion in bond 
            authorization has been awarded. The following summary charts 
            are from the state Correctional Standards Authority (CSA).  

          CSA AB 900 Phase I Jail Construction Awards (November 2009)

           --------------------------------------------- 
          |County           |Amount          |Award     |
          |                 |Requested       |          |
          |-----------------+----------------+----------|
          |Large/Medium     |                |          |
          |Counties         |                |          |
          |-----------------+----------------+----------|
          |San Bernardino   |    $100,000,000|$100,000,0|
          |                 |                |        00|
          |-----------------+----------------+----------|
          |San Joaquin      |     $80,000,000|$80,000,00|
          |                 |                |         0|
          |-----------------+----------------+----------|
          |Kern             |    $100,000,000|$100,000,0|
          |                 |                |        00|








                                                                  AB 2102
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          |-----------------+----------------+----------|
          |Orange           |    $100,000,000|        $0|
          |-----------------+----------------+----------|
          |Santa Barbara    |     $56,295,000|$56,295,00|
          |                 |                |         0|
          |-----------------+----------------+----------|
          |San Diego        |    $100,000,000|$100,000,0|
          |                 |                |        00|
          |-----------------+----------------+----------|
          |Monterey         |     $80,000,000|        $0|
          |-----------------+----------------+----------|
          |Los Angeles      |    $100,000,000|        $0|
          |-----------------+----------------+----------|
          |San  Luis Obispo |     $25,125,630|$25,125,63|
          |                 |                |         0|
          |-----------------+----------------+----------|
          |San  Mateo       |    $100,000,000|        $0|
          |-----------------+----------------+----------|
          |Butte            |     $30,000,000|        $0|
          |-----------------+----------------+----------|
          |Placer           |      $9,389,606|        $0|
          |-----------------+----------------+----------|
          |Stanislaus       |     $39,790,500|        $0|
          |-----------------+----------------+----------|
          |Merced           |     $27,846,040|        $0|
          |-----------------+----------------+----------|
          |Solano*          |     $61,545,000|$61,545,00|
          |                 |                |         0|
          |-----------------+----------------+----------|
          |Subtotal         | $1,0009,991,776|$522,965,6|
          |                 |                |        30|
          |-----------------+----------------+----------|
          |Small Counties   |                |          |
          |-----------------+----------------+----------|
          |Yolo             |     $30,000,000|        $0|
          |-----------------+----------------+----------|
          |Kings            |     $30,000,000|        $0|
          |-----------------+----------------+----------|
          |Madera           |     $30,000,000|$30,000,00|
          |                 |                |         0|
          |-----------------+----------------+----------|
          |Calaveras        |     $26,387,591|$26,387,59|
          |                 |                |         1|
          |-----------------+----------------+----------|
          |Tuolumne         |     $30,000,000|        $0|








                                                                  AB 2102
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          |-----------------+----------------+----------|
          |Shasta           |     $24,999,187|        $0|
          |-----------------+----------------+----------|
          |Amador           |     $22,712,000|$22,712,00|
          |                 |                |         0|
          |-----------------+----------------+----------|
          |El Dorado        |     $20,000,000|        $0|
          |-----------------+----------------+----------|
          |San Benito       |     $15,053,000|$15,053,00|
          |                 |                |         0|
          |-----------------+----------------+----------|
          |Sutter           |      $5,990,288|        $0|
          |-----------------+----------------+----------|
          |Subtotal         |    $23,142,0666|$94,152,59|
          |                 |                |         1|
          |-----------------+----------------+----------|
          |Total            |  $1,245,133,842|$617,118,2|
          |                 |                |        21|
          |-----------------+----------------+----------|
          |                 |                |          |
          |-----------------+----------------+----------|
          |Max Funding      |                |$750,000,0|
          |                 |                |        00|
          |-----------------+----------------+----------|
          |Remaining        |                |$132,881,7|
          |                 |                |79        |
           --------------------------------------------- 
          

          

          CSA AB 900 Phase II Jail Construction Awards (March 2012)

          
           ------------------------------------------------------------- 
          |              |      County    |Amount         |Award        |
          |              |                |Requested      |             |
          |--------------+----------------+---------------+-------------|
          |Large         |Los Angeles     |   $100,000,000| $100,000,000|
          |Counties      |                |               |             |
          |--------------+----------------+---------------+-------------|
          |              |Riverside       |   $100,000,000| $100,000,000|
          |--------------+----------------+---------------+-------------|
          |              |Orange          |   $100,000,000| $100,000,000|
          |--------------+----------------+---------------+-------------|








                                                                  AB 2102
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          |              |Sacramento      |   $100,000,000|             |
          |--------------+----------------+---------------+-------------|
          |              |Subtotal -      |   $400,000,000|             |
          |              |Large           |               |             |
          |--------------+----------------+---------------+-------------|
          |Medium        |Stanislaus      |    $80,000,000|  $80,000,000|
          |Counties      |                |               |             |
          |--------------+----------------+---------------+-------------|
          |              |Tulare          |    $60,000,000|  $60,000,000|
          |--------------+----------------+---------------+-------------|
          |              |Santa Barbara   |    $80,000,000|  $60,000,000|
          |--------------+----------------+---------------+-------------|
          |              |Monterey        |    $80,000,000|             |
          |--------------+----------------+---------------+-------------|
          |              |Yolo            |    $42,225,000|             |
          |--------------+----------------+---------------+-------------|
          |              |Sonoma          |    $43,000,000|             |
          |--------------+----------------+---------------+-------------|
          |              |Placer          |    $29,543,863|             |
          |--------------+----------------+---------------+-------------|
          |              |Subtotal-Medium |   $414,768,863|             |
          |              |                |               |             |
          |--------------+----------------+---------------+-------------|
          |Small         |Kings           |    $33,000,000|  $33,000,000|
          |Counties      |                |               |             |
          |--------------+----------------+---------------+-------------|
          |              |Shasta          |    $33,000,000|  $33,000,000|
          |--------------+----------------+---------------+-------------|
          |              |Sutter          |    $10,255,000|  $10,255,000|
          |--------------+----------------+---------------+-------------|
          |              |Madera          |     $3,000,000|   $3,000,000|
          |--------------+----------------+---------------+-------------|
          |              |Imperial        |    $33,000,000|  $23,626,000|
          |--------------+----------------+---------------+-------------|
          |              |Siskiyou        |    $27,778,940|             |
          |--------------+----------------+---------------+-------------|
          |              |Tuolumne        |    $33,000,000|             |
          |--------------+----------------+---------------+-------------|
          |              |Subtotal-Small  |   $173,033,940| $602,881,000|
          |--------------+----------------+---------------+-------------|
          |Relinquishing |                |               |             |
          |Preference    |                |               |             |
          |--------------+----------------+---------------+-------------|
          |Large County  |Kern            |   $100,000,000|  Shift from |
          |              |                |               |      Phase I|








                                                                  AB 2102
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          |--------------+----------------+---------------+-------------|
          |Small County  |San Benito      |    $15,053,000|  Shift from |
          |              |                |               |Phase I      |
          |--------------+----------------+---------------+-------------|
          |Total         |                | $1,102,855,803|             |
          |              |                |               |             |
           ------------------------------------------------------------- 

           3)San Mateo's complaint  . San Mateo was awarded $100 million (the 
            maximum grant) in 2008 for a $165 million 506-bed jail in 
            Redwood City. The county board approved the project; a 
            negative declaration (not an EIR) was approved; an architect 
            and construction management team were retained. Ultimately, 
            however, the state determined the site could not accommodate 
            the jail and a 500-bed state re-entry facility, which was 
            required as part of every county proposal at that time. 

            As a result, San Mateo relinquished the grant.

            San Mateo then submitted a statement of interest regarding 
            Phase II jail bond funding. Because of difficulty siting state 
            re-entry facilities, Phase II was eventually amended to delete 
            the required re-entry facility as part of a county's 
            application, and San Mateo thought it was in good shape for a 
            Phase II award. Apparently due to a relatively low commitment 
            rate to state prison, however, the county did not receive a 
            Phase II award. (Phase II applications considered a county's 
            state prison commitment rate as part of the application 
            process.)

            The county contends it was essentially punished for having a 
            relatively low state prison commitment rate, even when the 
            county had completed significant project milestones. San Mateo 
            further contends other counties are sitting on bond awards 
            with little post-award progress. 
             
             Moreover, San Mateo notes that of the applying counties that 
            did not qualify for a Phase I award (Orange, Kern, Santa 
            Barbara, and San Benito), only San Mateo did not receive a 
            Phase II award.
             
          4)Several counties that applied for grants were also 
            unsuccessful  , including Sacramento, Monterey, Yolo, Sonoma, 
            Placer, Siskiyou and Tuolumne, Placer, Butte, Stanislaus, 
            Merced, Kings, Shasta, El Dorado, and Sutter.








                                                                  AB 2102
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            In addition, CSA notes it has received funding inquiries from 
            Santa Clara, San Francisco, Contra Costa, Alameda, Ventura and 
            Fresno Counties. 
           
          5)The proposed San Mateo fix raises several issues  . 

              a)   Requiring funds to be encumbered by June 1, 2013 could 
               jeopardize grants awarded to most, if not all counties  . 
               According to CSA, only San Bernardino, Madera and Calaveras 
               Counties have received Pooled Money Investment Board (PMIB) 
               loan approval (Solano County is expected to receive PMIB 
               approval soon), which means the rest of the Phase I awards, 
               and potentially all of the Phase II awards could revert if 
               progress stalls for various reasons and loans are not 
               approved by June 1, 2013.  

              b)   Funded counties already comply with the conditions 
               proposed in this bill.  According to CSA, all funded 
               counties already comply with (a) establishing a jail 
               planning unit and development team; (b) completing a jail 
               needs assessment; (c) board of supervisors approval; (d) 
               identifying and purchasing a jail site. (Moreover, not 
               every county needs to purchase a jail site.) 

               In addition, not every county/project requires an EIR; for 
               example, San Mateo County completed a negative declaration 
               in lieu of an EIR.

               Regarding the condition for a "functional plan" for a jail, 
               it is not clear what this means. 

              c)   The bill does not amend the proper Government Code 
               sites  , referencing the prison construction chapter rather 
               than county jail construction chapter, and does not 
               differentiate between Phase I and II. 

             Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081