BILL ANALYSIS                                                                                                                                                                                                    �



                                                                     SB 608
                                                                     Page  1

        SENATE THIRD READING
        SB 608 (DeSaulnier)
        As Amended  June 9, 2011
        Majority vote 

         SENATE VOTE  :26-8  
         
         PUBLIC SAFETY       7-0         APPROPRIATIONS      16-0         
         
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        |Ayes:|Ammiano, Knight, Cedillo, |Ayes:|Fuentes, Harkey,          |
        |     |Hagman, Hill, Mitchell,   |     |Blumenfield, Bradford,    |
        |     |Yamada                    |     |Charles Calderon, Campos, |
        |     |                          |     |Donnelly, Gatto, Hall,    |
        |     |                          |     |Hill, Lara, Mitchell,     |
        |     |                          |     |Nielsen, Norby, Solorio,  |
        |     |                          |     |Wagner                    |
        |     |                          |     |                          |
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         SUMMARY  :  Authorizes the Prison Industry Authority (PIA) to offer 
        their goods and services for sale to nonprofit organizations.  
        Specifically,  this bill  provides that the nonprofit organizations 
        must meet all of the following conditions:

        1)The nonprofit organization is located in California and is exempt 
          from taxation under specified federal tax laws.

        2)The nonprofit organization has entered into a memorandum of 
          understanding with a local education agency, which is defined as a 
          school district, county office of education, state special school, 
          or charter school.

        3)The products and services are provided to public school students 
          at no cost to students or their families.

         EXISTING LAW  :

        1)Authorizes PIA to operate industrial, agricultural, and service 
          enterprises which will provide products and services needed by the 
          state, or any political subdivision thereof, or by the federal 
          government, or any department, agency, or corporation thereof, or 
          for any other public use.  Products may be purchased by state 
          agencies to be offered for sale to inmates of the department and 
          to any other person under the care of the state who resides in 
          state-operated institutional facilities.  Fresh meat may be 








                                                                     SB 608
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          purchased by food service operations in state-owned facilities and 
          sold for onsite consumption.  

        2)States that all things authorized to be produced by PIA shall be 
          purchased by the state, or any agency thereof, and may be 
          purchased by any county, city, district, or political subdivision, 
          or any agency thereof, or by any state agency to offer for sale to 
          persons residing in state-operated institutions, at the prices 
          fixed by PIA.  State agencies shall make maximum utilization of 
          these products, and shall consult with the staff of PIA to develop 
          new products and adapt existing products to meet their needs.  

        3)States that the purposes of PIA are to:

           a)   Develop and operate industrial, agricultural, and service 
             enterprises employing prisoners in institutions under the 
             jurisdiction of the California Department of Corrections (CDC), 
             which enterprises may be located either within those 
             institutions or elsewhere, all as may be determined by PIA;

           b)   Create and maintain working conditions within the 
             enterprises as much like those which prevail in private 
             industry as possible, to assure prisoners employed therein the 
             opportunity to work productively, to earn funds, and to acquire 
             or improve effective work habits and occupational skills; and,

           c)   Operate a work program for prisoners which will ultimately 
             be self-supporting by generating sufficient funds from the sale 
             of products and services to pay all the expenses of the 
             program, and one which will provide goods and services which 
             are or will be used by CDC, thereby reducing the cost of its 
             operation.  

        4)States that notwithstanding any other provision of existing law, 
          products and byproducts of agricultural and animal husbandry 
          enterprises, except nursery stock, may be sold to private persons, 
          at public or private sale, under rules prescribed by the Prison 
          Industry Board.  

        5)Provides that notwithstanding provisions of existing law, the 
          director of the Department of General Services or his or her 
          designee may procure goods from the private sector even though the 
          goods may be available from the PIA, when in his or her 
          discretion, it is cost beneficial to do so, and if the director or 
          his or her designee continues to include PIA in soliciting 








                                                                     SB 608
                                                                     Page  3

          quotations for goods.  

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee:
         
        1)No state cost. 

        2)Unknown potential state savings to the extent that additional PIA 
          activity provides work for inmates that ultimately results in 
          sentence credits and reduced recidivism.

         COMMENTS  :  According to the author, "K to College, a non-profit 
        based in the East Bay, provides free school supplies to students 
        from disadvantaged backgrounds.  Historically, K to College has used 
        volunteers to assemble these school supply packets.  However over 
        time, volunteers were no longer able to meet the increasing demand 
        for their services.  In response, in 2009, K to College worked with 
        Senator DeSaulnier's office to coordinate a program with PIA workers 
        at Folsom State Prison.  The Folsom State inmates were able to 
        assemble 150,000 school supply packets, a project too large in scale 
        to be accomplished by volunteers.  In order to make this program and 
        others like it sustainable, California statute must be amended in 
        order to explicitly allow non-profits to work with PIA.  This bill 
        not only supports the philanthropic endeavors of California 
        non-profits, but also supports the rehabilitative and vocational 
        efforts of PIA.

        "By 2012, K to College hopes to distribute as many as 500,000 school 
        packets across the state.  Working with PIA is the only viable way 
        for these packets to be assembled and reach the students who so 
        desperately need them."

        Please see the policy committee analysis for a full discussion of 
        this bill.
         

        Analysis Prepared by  :    Stella Choe / PUB. S. / (916) 319-3744 

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