BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2587
                                                                  Page  1

          Date of Hearing:   April 17, 2012
          Counsel:        Gabriel Caswell


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                    AB 2587 (Knight) - As Amended:  April 12, 2012

           
          SUMMARY  :  Authorizes the California Department of Corrections 
          and Rehabilitation (CDCR) to enter into a long-term contract 
          with the City of Adelanto to finance and build a state prison 
          facility.  Specifically,  this bill  :  

          1)Authorizes the CDCR to enter into a long-term agreement not to 
            exceed 25 years, with the City of Adelanto to finance and 
            build a state prison facility for the incarceration of 
            medium-and maximum-security inmates.  

          2)Requires that the facility be staffed by CDCR.  

          3)Specifies that the inmates incarcerated in this facility are 
            subject to the rules and regulations of the CDCR Secretary.  

          4)Requires that CDCR take the following factors into 
            consideration in determining the reimbursement rate for a 
            long-term agreement for the City of Adelanto:

             a)   Cost incurred by the City of Adelanto for financing and 
               construction of the facility; and

             b)   Any other factors necessary and appropriate to fix these 
               obligations, responsibilities, and rights of the respective 
               parties.    

          5)Specifies the payment to the City of Adelanto shall include a 
            service fee component that takes into consideration the 
            investment, risk, and assistance of the city in siting, 
            financing, and constructing the facility.  

          6)States that CDCR may elect to contract with the City of 
            Adelanto to maintain the facility, including maintaining the 
            fixtures and improvements which comprise the facility.  









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          7)Finds and declares that a special law is necessary and that a 
            general law cannot be made applicable because of the unique 
            circumstances of the City of Adelanto that allow for the 
            needed prison to begin in a timely manner.  

           EXISTING LAW  :  

          1)The 1990 Prison Construction Committee is hereby created. The 
            committee shall consist of the Controller, the Treasurer, and 
            the Director of Finance, or their designated representatives. 
            A majority may act for the committee. The Treasurer shall 
            chair the committee. That committee shall be the "committee," 
            as that term is used in the State General Obligation Bond Law.

          When funds are appropriated to the Department of Corrections, 
            the Department of Corrections is the "board" for the purpose 
            of the State General Obligation Bond Law and this chapter. 
            When funds are appropriated to the Department of Youth 
            Authority, the Department of Youth Authority is the "board" 
            for the purpose of the State General Obligation Bond Law and 
            this chapter.  (Penal Code Section 7422.)  

          2)States that the 1990 Prison Construction Committee is hereby 
            created. The committee shall consist of the Controller, the 
            Treasurer, and the Director of Finance, or their designated 
            representatives. A majority may act for the committee. The 
            Treasurer shall chair the committee. That committee shall be 
            the "committee," as that term is used in the State General 
            Obligation Bond Law.  

            When funds are appropriated to the Department of Corrections, 
            the Department of Corrections is the "board" for the purpose 
            of the State General Obligation Bond Law and this chapter. 
            When funds are appropriated to the Department of Youth 
            Authority, the Department of Youth Authority is the "board" 
            for the purpose of the State General Obligation Bond Law and 
            this chapter.  (Penal Code Section 7423.)  

          3)Specifies that the committee is hereby authorized and 
            empowered to create a debt or debts, liability or liabilities, 
            of the State of California, in the aggregate principal amount 
            of four hundred fifty million dollars ($450,000,000), 
            exclusive of refunding bonds, in the manner provided in this 
            chapter. That debt or debts, liability or liabilities, shall 
            be created for the purpose of providing the fund to be used 








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            for the object and work specified.  (Penal Code Section 7424.)

          4)Provides the committee may determine whether or not it is 
            necessary or desirable to issue any bonds authorized under 
            this chapter, and if so, the amount of bonds then to be issued 
            and sold. The committee may authorize the Treasurer to sell 
            all or any part of the bonds herein authorized at such time or 
            times as may be fixed by the Treasurer.  (Penal Code Section 
            7425.)  

          5)State the moneys in the fund shall be used for the 
            acquisition, construction, renovation, remodeling, and 
            deferred maintenance of state youth and adult correctional 
            facilities.  (Penal Code Section 7426.)  

          6)Provides moneys deposited in the fund may also be used for the 
            refinancing of interim debt incurred for any of the purposes 
            specified.  (Penal Code Section 7426.5.)  

          7)States all bonds herein authorized, which shall have been duly 
            sold and delivered as herein provided, shall constitute valid 
            and legally binding general obligations of the State of 
            California, and the full faith and credit of the State of 
            California is hereby pledged for the punctual payment of both 
            the principal thereof and interest thereon.  �Penal Code 
            Section 7427(a).]

          8)Specifies there shall be collected annually in the same manner 
            and at the same time as other state revenue is collected that 
            sum, in addition to the ordinary revenues of the state, that 
            is required to pay the principal of and interest on those 
            bonds, and it is hereby made the duty of all officers charged 
            by law with any duty in regard to the collection of that 
            revenue to do and perform each and every act which shall be 
            necessary to collect that additional sum.  �Penal Code Section 
            7427(b).]  

          9)States all money deposited in the fund that has been derived 
            from premiums or accrued interest on bonds sold shall be 
            available for transfer to the General Fund as a credit to 
            expenditures for bond interest.  �Penal Code Section 7427(c).]

          10)Provides all money deposited in the fund pursuant to any 
            provision of law requiring repayments to the state that is 
            financed by the proceeds of the bonds authorized by this 








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            chapter shall be available for transfer to the General Fund. 
            When transferred to the General Fund that money shall be 
            applied as a reimbursement to the General Fund on account of 
            the principal of and interest on the bonds which have been 
            paid from the General Fund.  �Penal Code Section 7427(d).]  

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement  :  According to the author, "With the 2011 
            package of legislation passed last year, county governments 
            are now responsible for managing and supervising certain felon 
            offenders who were previously eligible for state prison due to 
            realignment.  The significant reduction in inmate population 
            in state prisons due to the transfer of the inmates from the 
            state to county jails leaves a larger population of 
            higher-security inmates that will require the need for 
            additional high-security beds.

            "Assembly Bill 2587 authorizes the Secretary of CDCR to enter 
            into a long-term agreement, no longer than 25 years, with the 
            City of Adelanto to finance and build a state prison facility. 
             This facility will be fully staffed with CDCR employees and 
            have the ability to hold up to 3000 high-security inmates.  I 
            believe this measure will help CDCR address the need to find 
            additional 6500 high-security beds by the year 2015 as the 
            City of Adelanto is prepared to begin construction upon this 
            legislation being signed by Governor Brown."

           2)On-Going Concerns for Prison Overcrowding  :  In November 2006, 
            plaintiffs in two ongoing class action lawsuits-Plata v. Brown 
            (involving inmate medical care) and Coleman v. Brown 
            (involving inmate mental health care)-filed motions for the 
            courts to convene a three-judge panel pursuant to the U.S. 
            Prison Litigation Reform Act.  The plaintiffs argued that 
            persistent overcrowding in the state's prison system was 
            preventing the California Department of Corrections and 
            Rehabilitation (CDCR) from delivering constitutionally 
            adequate health care to inmates.  The three-judge panel 
            declared that overcrowding in the state's prison system was 
            the primary reason that CDCR was unable to provide inmates 
            with constitutionally adequate health care.  In January 2010, 
            the three-judge panel issued its final ruling ordering the 
            State of California to reduce its prison population by 








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            approximately 50,000 inmates in the next two years.  
            �Coleman/Plata vs. Schwarzenegger (2010) No. Civ S-90-0520 LKK 
            JFM P/NO. C01-1351 THE.] 

          The United State Supreme Court upheld the decision of the 
            three-judge panel, declaring that "without a reduction in 
            overcrowding, there will be no efficacious remedy for the 
            unconstitutional care of the sick and mentally ill" inmates in 
            California's prisons.  �Brown v. Plata (2011) 131 S.Ct. 1910, 
            1939; 179 L.Ed.2d 969, 999.]

          According to a recent report by the Legislative Analyst's 
            Office, "Based on CDCR's current population projections, it 
            appears that it will eventually reach the court-imposed 
            population limit, though not by the June 2013 deadline."  �See 
            Refocusing CDCR After the 2011 Realignment (Feb. 23, 2012) 
            pp.3  
            .
            ]  "In particular, the projections show the state missing the 
            final population limit of no more than 110,000 inmates housed 
            in state prisons by June 2013.  Specifically, the projections 
            show the state exceeding this limit by about 6,000 inmates.  
            However, the projections indicate that the state will meet the 
            court-imposed limit by the end of 2014."  (Id. at p. 9.)

          "While the state has undergone various changes to reduce 
            overcrowding prior to the passage of the realignment 
            legislation-including transferring inmates to out-of-state 
            contract facilities, construction of new facilities, and 
            various statutory changes to reduce the prison population-the 
            realignment of adult offenders is the most significant change 
            undertaken to reduce overcrowding."  (Id. at p. 8.)   
           
           3)Prior Legislation  :  AB 900 (Solorio), Chapter 7, Statutes of 
            2008, authorized up to 40,000 new state prison beds, 
            contingent upon significant program enhancements designed to 
            reduce recidivism.  AB 900 also provides CDCR with temporary 
            authority to house up to 8,000 inmates out-of-state until new 
            construction is completed and the results of enhanced 
            anti-recidivism programming impact the inmate population. 
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           








                                                                  AB 2587
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          None

           Opposition 
           
          None
           

          Analysis Prepared by  :    Gabriel Caswell / PUB. S. / (916) 
          319-3744