BILL ANALYSIS
Appropriations Committee Fiscal Summary
SB1978 (Hayden)
Hearing Date:5/25/00 Amended:5/1/00
Consultant: Lisa Matocq Policy Vote:Pub Saf 4-0
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BILL SUMMARY:
SB 1978 provides that any contract to provide telephone
services to wards of the Department of the Youth Authority
(DYA) or to inmates of the Department of Corrections (DOC)
shall be awarded based on providing the lowest possible
costs to wards and inmates, and that profits to these
departments shall not be a basis for awarding a contract,
as specified.
Fiscal Impact (in thousands)
Major Provisions 2000-01 2001-02
2002-03 Fund
Telephone services Unknown loss of revenues, potentially
General
$29,000 annually
STAFF COMMENTS: SUSPENSE FILE.
Among other things, this bill:
makes legislative findings that state in part, "Billing
rates for collect telephone calls from prisons include a
33 to 43 percent commission beyond the provider's costs,
which in 1998 generated $16 million for the General Fund
of the state", and
requires that any contract to provide telephone services
to wards or inmates shall be negotiated and awarded in a
manner to provide the lowest cost for inmates and wards,
to pay for related costs of the department(s), as well as
for the reasonable costs of the Department of General
Services (DGS) for establishing and administering any
contract, and that profits to these departments or the
state shall not be a basis for awarding such contracts.
DGS staff estimate a potential General Fund revenue loss of
$29 million annually. STAFF NOTES that the contract for
telephone services for DOC inmates and DYA wards apparently
includes telephone services for other state and local
governmental agencies and institutions.