BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2787
                                                                  Page  1

          Date of Hearing:April 25, 2000
          Chief Counsel:            Bruce E. Chan


                        ASSEMBLY COMMITTEE ON PUBLIC SAFETY 
                               Carl Washington, Chair

                AB 2787 (Leonard) - As Introduced:  February 25, 2000
           
           
           SUMMARY  :  Authorizes the Department of Corrections (CDC) to  
          build a separate prison designed to incarcerate prisoners with  
          special needs due to age or HIV status.  Authorizes the sale of  
          San Quentin state prison and the relocation of its death row.   
          Specifically,  this bill  :  

          1)Authorizes CDC to build a prison facility designed for  
            incarcerating inmates with special health needs separate from  
            the general prison population.  

          2)States legislative findings that many inmates in CDC have  
            special health needs due to either advanced age or infection  
            with the HIV virus.  States that it is the Legislature's  
            intent to develop a prison facility that addresses these needs  
            in a manner consistent with CDC policy.

          3)Authorizes CDC to sell the California State Prison at San  
            Quentin and apply the proceeds from the sale to pay for  
            revenue bonds for the purpose of building a special needs  
            prison facility.

          4)Provides that the necessary funding for construction of the  
            prison facility may be obtained through lease-purchase  
            financing arrangements.  The Public Works Board (PWB) may  
            issue additional bonds in order to pay the costs of acquiring  
            and constructing or refinancing the special needs prison  
            facility.

          5)Authorizes the PWB to allocate additional amounts necessary to  
            establish a construction reserve and other costs associated  
            with the financing of construction.

          6)Authorizes closing the California State Prison at San Quentin  
            and to begin the process of searching for a site for  
            relocation of its inmates.  The director of CDC is authorized  








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            to prioritize the north Bay Area as a possible location for a  
            new facility to mitigate the reassignment of corrections  
            staff.

          7)Authorizes the director of CDC to designate another state  
            prison to house prisoners subject to the death penalty and  
            within which the judgement of death may be executed.

           EXISTING LAW:

           1)Provides that the PWB may finance prison construction using  
            lease-purchase arrangements by the issuance of bonds and may  
            authorize any additional amounts to pay the costs of  
            financing, including the interest accrued during construction  
            of the project and a reasonable reserve, with a total limit of  
            $650 million.  (Government Code Section 15819.3)

          2)Authorizes the CDC to enter into a lease with the BPW for  
            prison facilities. (Government Code  Section 15819.1)

          3)Provides for additional prisons through the enactment of new  
            Government Code sections for each additional prison.   
            (Government Code Section 15819 et seq.)

          4)Provides that the judgement of death shall be executed within  
            the walls of the California State Prison at San Quentin.   
            (Penal Code Section 3603.)

           FISCAL EFFECT  :  Unknown

           COMMENTS  : 

           1)Author's Statement:   According to the author, "This bill seeks  
            to address several issues facing California's correctional  
            system.  The San Quentin Correctional Facility is no longer  
            the optimal location for California's death row.  In fact, the  
            CDC has been having internal discussions about potential  
            locations to move death row.  However, state law designates  
            San Quentin as the sole facility for death row and it will  
            take a new law to move it.  AB 2787 authorizes this move.

          "The San Quentin facility is a 147 year old antiquated facility  
            that sits on a very valuable piece of bay frontage property in  
            Marin County.  By closing San Quentin and selling the  
            property, the state could use this new revenue stream to help  








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            finance the construction of a new correctional facility.

          "AB 2787 also sets forth a priority for the new facility to  
            serve inmates with special health needs including geriatric  
            and HIV and AIDS.  As of June 30, 1998 there were 1,859  
            inmates aged 60 and older in California's prisons and by 2025  
            it is estimated that there will be 7,079 aged inmates.   
            According to Jonathan Turley, founder and director of Project  
            for Older Prisoners, the cost of housing older offenders is  
            three times that of younger offenders.

          "By developing a facility that is constructed to accommodate  
            special needs prisoners the state of California can lower the  
            cost of care through economy of scale while at the same time  
            providing facilities that are appropriate for these inmates."

           2)The State Department of Corrections:   Currently, the CDC  
            operates 33 state prisons.  The CDC system also includes 13  
            reception centers to process newly committed prisoners, 16   
            community correctional centers, 38 fire and conservation  
            camps, the Richard A. McGee Correctional Training Center,  
            alternative sentencing programs, 136 parole offices in 70  
            locations, 8 prisoner mother facilities, and outpatient  
            psychiatric services for parolees and their families.   
            Included are contracts with local city and county governments  
            and private organizations for 7,648 beds for felons. The total  
            number of inmates in all prisons and camps as of March 1, 2000  
            is 160,846.  The total number of persons on parole is 118,136.

          The annual budget is $4.6 billion, 7.2% of the state General  
            Fund.  The average yearly cost per inmate is $21, 243.

           3)General Obligation And Lease-Revenue Bonds:   The Legislative  
            Analyst has described the  different bonds as follows:  
            "General obligation bonds require voter approval. The  
            principal interest (that is, debt service) of the bonds is  
            backed by the full faith and credit of the state's taxing  
            authority.  As a result, these bonds carry a lower rate of  
            interest than those that are not fully backed by the state.

          "Lease-payment bonds (commonly referred to as lease-revenue  
            bonds or Public Works Board bonds) do not require voter  
            approval.  The debt service on most of these bonds is paid  
            from the General Fund (usually through annual lease payments  
            made by the state agency using the facility), but is not  








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            backed by the full faith and credit of the state.    
            Lease-payment bonds are rated lower than general obligation  
            bonds and therefore are sold at a higher interest rate.  In  
            addition, these bonds typically require reserve funds for the  
            construction period, another reserve fund over the life of the  
            bonds, additional administrative costs, and in some cases  
            insurance costs.  As a result of all these factors,  
            lease-payment bonds cost more than general obligation bonds,  
            and therefore, use up more of the state's debt capacity  
            without providing any additional program benefits.

          "It is also important to note that, whenever the state chooses  
            to fund its needs by using bonds, the state is making an  
            additional long-term commitment of General Fund monies.  For  
            instance, for every $1 billion in general obligation bonds  
            sold, the state is committing to pay about $71 million in  
            annual debt service costs for the next 25 years.   
            Consequently, there is a trade-off between using bonds to fund  
            the state's infrastructure needs and funding the state's  
            ongoing General Fund programs.  It is, therefore, critical to  
            weigh the costs and benefits of these long-term investments  
            against the costs and benefits of providing other state  
            services."

           4)Statement In Opposition:   The California Attorneys for  
            Criminal Justice states, "Our primary concern is with the  
            potential relocation of death row inmates.  As you know,  
            capital appeals are lengthy and expensive.  The universe of  
            attorneys who can and will accept capital appeals is extremely  
            small.  It often takes years to find counsel.  Moving death  
            row out of its current geographical area will exacerbate the  
            problem, further lengthening the time and expense of the  
            appellate process.

          "? Motions, Petitions and applications must be filed with the  
            California Supreme Court and the 9th Circuit Court of Appeals,  
            both of which are located in San Francisco.  It makes sense to  
            keep death row near the lawyers who represent the inmates and  
            the judicial entities that must ultimately rule on last-minute  
            requests.

          "Fiscally, this measure is ill-advised.  The State of California  
            recently spent millions of dollars developing, among other  
            things, the Habeas Corpus Resource Center (located in San  
            Francisco).  The office of the State Public Defender employs a  








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            substantial number of attorneys in San Francisco.  Most  
            capital appellate lawyers are court-appointed, which means the  
            taxpayers pay their bills.  Moving death row will increase  
            governmental agency expenses."

          The Friends Committee on Legislation states, "We think it is not  
            wise to use public resources to construct large special  
            purpose institutions for these populations.  In fact, it would  
            be most economical, and serve the interest of public safety to  
            keep these prisoners in existing or more localized facilities.

          "Statistics from the CDC cast doubt on any need for additional  
            prison beds.  Most prison space is not devoted to inmates  
            serving sentences for violent offenses. And that many spaces  
            are occupied by parole violators.  We understand that many of  
            these individuals                                       could  
            have succeeded on parole if they had proper mentors to obtain  
            and maintain employment.  Before state and local governments  
            commit themselves to the longer-term costs required by high  
            rates of imprisonment, we recommend the vigorous exploration  
            of the more cost effective alternatives suggested by the  
            recent report of the Little Hoover Commission."        

          The AIDS Legal Referral Panel states, "While we understand the  
            need to address the special medical needs that aging prisoners  
            and people with HIV might have, AB 2787 does not do that.   
            Instead, it merely calls for these prisoners to be segregated.  
             We certainly do not believe that the best way to treat the  
            special medical needs of these prisoners is to quarantine them  
            within one institution.  In addition, there may be other  
            prisoners for whom particular attention is required in order  
            to adequately address their medical problems; prisoners with  
            special medical needs do not just fall into the categories of  
            advanced age and HIV.  If a hospice or facility for the  
            seriously or chronically ill is warranted, we would want to  
            see it be available to all prisoners who suffer from serious  
            or chronic conditions - with advanced medical care and  
            treatment provided.

          "Rather than quarantining prisoners with HIV or advanced age, we  
            would suggest fuller use of the current compassionate release  
            law.  California's Penal Code allows for this option and we  
            believe that it is a much more appropriate avenue through  
            which to address the seriously failing health of the  
            incarcerated population in general."








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           5)Similar Legislation:   AB 1535 (Florez), Chapter 54, Statutes  
            of 1999, authorized the construction of the Delano II state  
            prison, using lease-purchase financing arrangements.  $24  
            million was appropriated for site acquisition and planning.   
            $15.5 million was appropriated for new parole officers.

           6)Prior Legislation.   AB 2485 (Prenter) of the 1997-98  
            Legislative session failed passage in the Assembly Committee  
            on Public Safety.

           REGISTERED SUPPORT / OPPOSITION  :

           Support  

          Crime Victims United of California

           Opposition  

          AIDS Legal Referral Panel
          AIDS Project Los Angeles
          California Attorneys for Criminal Justice
          Friends Committee on Legislation of California
          HIV in Prison Committee

           
          Analysis Prepared by  :  Bruce Chan / PUB. S. / (916) 319-3744