BILL ANALYSIS                                                                                                                                                                                                    


          |SENATE RULES COMMITTEE            |                   AB 900|
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                                 THIRD READING

          Bill No:  AB 900
          Author:   Solorio (D) and Aghazarian (R), et al
          Amended:  4/26/07 in Assembly 
          Vote:     27 - Urgency


          ASSEMBLY FLOOR  :  69-0, 4/26/07 (Roll Call unavailable)

           SUBJECT  :    Prison construction

           SOURCE  :     Author

           DIGEST  :    The state prison system currently has 171,000  
          inmates in space designed to accommodate, with acceptable  
          overcrowding, approximately 155,000. The inmate population  
          is projected to increase to 190,000 by 2012. Therefore, by  
          2012, the system will face a bed deficiency of about  

          This bill authorizes up to 40,000 new state prison beds,  
          contingent upon significant program enhancements designed  
          to reduce recidivism.  This bill also provides the  
          California Department of Corrections and Rehabilitation  
          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. 

           ANALYSIS  :    Existing laws authorizes the financing and  


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          construction of state prison facilities using  
          lease-purchasing financing arrangements by means of the  
          issuance of state revenue bonds, as specified.
          Existing law authorizes the Department of Corrections and  
          Rehabilitation to establish pilot programs that provide  
          training and counseling for parolees to assist in their  
          successful reintegration into the community.
          Existing law provides that the Department of Corrections  
          and Rehabilitation shall prepare plans for, and construct  
          facilities and renovations included within, its master plan  
          for which funds have been appropriated by the Legislature.
          Existing law requires the department to submit a site plan  
          and projected planning guide to the Joint Legislative  
          Committee on Prison Construction and Operation for each  
          facility included in the master plan.
          Existing law provides that the Joint Legislative Prison  
          Committee shall be reimbursed, from funds appropriated to  
          the Department of Corrections and Rehabilitation for  
          support, for costs, as agreed to by the Department of  
          Corrections and Rehabilitation, incurred by the committee  
          in reviewing environmental assessment studies, as  
          Existing law provides that any court or other agency or  
          officer of this state having power to commit or transfer an  
          inmate to any institution for confinement may commit or  
          transfer that inmate to any institution outside this state  
          if this state has entered into a contract or contracts for  
          the confinement of inmates in the institution and the  
          inmate, if or she was sentenced under California law, has  
          executed a written consent to the transfer.
           This bill:
          1.  Phase I State Prison Bed Construction  
             A.    Authorizes $3.6 billion in lease-revenue bond  
                financing for 24,000 state prison beds: 
                (1)      12,000 "infill" beds - additional beds at  


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                   existing prisons- designed to eliminate so-called  
                   "bad beds," such as double and triple-bunking in  
                   gyms, and dayrooms ($1.8 billion).
                (2)      6,000 "re-entry" facility beds - smaller  
                   secure state facilities of up to 500 beds with  
                   concentrated rehabilitation services for inmates  
                   with less than one year left to serve ($975  
                (3)      6,000 medical/mental health beds - to  
                   address needs identified by the federal court  
                   Receiver, who will determine their use ($857  
          2.  Anti-Recidivism and Rehabilitation Efforts  
             A.    Requires all new state prison beds to include  
                substance abuse treatment, work programs, academic  
                and vocational education, and mental health care.
             B.    Requires implementation of 4,000 new dedicated  
                substance abuse treatment beds (CDCR currently  
                operates about 9,000 such beds) with post-release  
                aftercare treatment for parolees.
             C.    Requires individualized program needs assessments  
                for all inmates at reception.
             D.    Requires development of a prison-to-employment  
                plan to ensure programs provide sufficient skills to  
                assist in successful re-entry and employment.
             E.    Creates the "California Rehabilitation Oversight  
                Board" (C-ROB), as specified, to evaluate CDCR  
                rehabilitation and treatment programs, and recommend  
                changes to the Legislature and Governor.
             F.    Requires development of mental health day  
                treatment for parolees.   
             G.    Requires implementation of a system of incentives  
                designed to increase participation in education  
                programs and encourage inmates to complete  


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                educational goals.  
             H.    Authorizes CDCR to use portable buildings for  
                inmate rehabilitation and treatment - and housing -  
                to ensure sufficient space is available.
             I.    Requires development of "staffing pipeline" plan  
                to fill vacant prison staff positions, obtain  
                treatment services from local governments, and  
                increase the number of rehabilitation and treatment  
                personnel with proper education and credentials.
             J.    Appropriates an additional $50 million for  
                rehabilitation and treatment enhancement in 2007-08.   
             K.    Addresses management deficiencies by requiring  
                CDCR to develop and implement plans to address  
                management deficiencies within the department.
          3.  Phase II State Prison Bed Construction Subject to  
             Program Benchmarks  
             A.    Authorizes $2.5 billion in lease-revenue bond  
                financing for 16,000 state prison beds.
                (1)      4,000 "infill" beds - additional beds at  
                   existing prisons- designed to eliminate so-called  
                   "bad beds," such as double and triple-bunking in  
                   gyms, and dayrooms ($600 million).
                (2)      10,000 "re-entry" facility beds - smaller  
                   secure state facilities of up to 500 beds with  
                   concentrated rehabilitation services for inmates  
                   with less than one year left to serve ($1.6  
                (3)      2,000 medical/mental health beds - to  
                   address need identified by the federal court  
                   Receiver, who will determine their use ($286  
             B.    Funding will be available for Phase II only if the  
                following conditions and benchmarks are met and  


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                verified by a three-member panel comprising the State  
                Auditor, the Inspector General and an appointee of  
                the Judicial Council:
                (1)      4,000 of the 12,000 "infill" beds authorized  
                   in Phase I are under construction or sited,  
                   including rehabilitation programming space. 
                (2)      2,000 of the 4,000 drug treatment slots  
                (3)      New individualized assessment procedures in  
                   place for six months.
                (4)      Specified levels of parolees being served in  
                   mental health day treatment centers.
                (5)      The California Rehabilitation Oversight  
                   Board (C-Rob) in operation for one year.
                (6)      Implementation of a management deficiency  
                (7)      A 10% increase in educational program  
                   participation from April 2007.
                (8)      A vacancy rate for rehabilitation service  
                   positions no greater than the average vacancy rate  
                   for state employees. 
          4.  Phase I Local Jail Construction  
             A.    Authorizes $750 million in lease-revenue bond  
                financing for 8,000 county jail beds.
             B.    Requires 25 percent county match.
             C.    Establishes a funding preference for counties that  
                help the state site re-entry facilities, increase  
                mental health and substance abuse services for  
                parolees, and help the state site mental health day  
                treatment for parolees.
          5.  Phase II Local Jail Construction, Subject to Program  


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             A.    Authorizes $470 million in lease-revenue bond  
                financing for 5,000 county jail beds. 
             B.    Funds available for Phase II only if the following  
                conditions and benchmarks are met, as verified by the  
                three member panel:
                (1)      50% of Phase I jail beds (4,000) are under  
                   construction or sited.
                (2)      50% of Phase I state re-entry beds (3,000)  
                   are under construction or sited.
          6.  Authority to Temporarily House State Prison Inmates  
             A.    Authorize CDCR to house up to 8,000 inmates in  
                out-of-state contract facilities for up to four  
                years.  This authority would expire in July 2011.  
                Excludes inmates with serious medical or mental  
                health problems, or those who have a pending habeas  
                petition or appeal. 
          7.   Authorizes a correctional peace officer training  
             academy in southern California.

            Federal Court Intervention  

          Moreover, the state faces three federal court cases based  
          on existing court orders. These cases now seek overcrowding  
          relief and could result in federal orders to control and/or  
          cap the inmate population. The three cases and current  
          action dates are:
          1.  Plata v. Schwarzenegger  regarding inmate medical care,  
             Judge Thelton Henderson, Robert Sillen, Receiver. 
             A.    May 16:  Receiver to report to court "his best  
                assessment of the manner, and extent to which,  
                overcrowding is interfering with his ability to  
                successfully remedy the constitutional violations at  


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             B.    May 16:  State to report to court regarding:  

                (1)      Measures the state is taking to reduce the  
                   prison population by March 1, 2008 and March 1,  
                   2009, including identifying the number of inmates  
                   confined in out-of-state facilities.

                (2)      When the governor will be able to rescind  
                   his October 2006 state-of-emergency proclamation.   
                   The inmate population as of this date.

             C.    May 29:  Parties may file supplemental or new  

             D.    June 11:  Oral arguments.

          2. Coleman vs. Schwarzenegger regarding inmate mental  
             health care, Judge Lawrence Karlton.   

             A.    June 4:  Court to continue hearing on motion to  
                convene 3-judge panel.

          3. Armstrong v. Schwarzenegger regarding Americans with  
             Disabilities Act compliance. 

             A.    June 8:  Court to continue oral argument on prison  
                cap motion and on motion to enforce permanent  
           County Jail Construction  . According to the Corrections  
          Standards Authority (CSA), the capacity of all county jails  
          statewide is about 75,000. The average daily population is  
          about 82,000 with a 2006 peak of 87,000 inmates. Twenty  
          jails are currently under court-ordered population caps and  
          twelve more have self-imposed caps. In 2005 alone,  
          according to the CSA , 235,000 persons avoided  
          incarceration or were released early from jail sentences  
          due to a lack of jail space. 
          This bill funds up to 13,000 county jail beds, contingent  
          upon a 25% local match and specified construction schedules  
          and improvements in re-entry services for parolees.     


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           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Budget and Fiscal Review Committee  

          1. Appropriates $300 million (GF) for infrastructure  
             improvements at existing prisons necessary to address  
             water, wastewater, and other infrastructure problems. 
          2. Appropriates $50 million (GF) for enhanced  
             rehabilitation services. Additional GF costs in the tens  
             of millions of dollars in out-years as CDCR develops and  
             implements enhanced programming. 
          3.  Issuing $7.4 billion in lease-revenue bonds will  
             require annual debt service (GF) payments of about $600  
             million for 25 years, assuming a 5.5% interest rate,  
             though the timing of the bond sales will likely lower  
             this amount and spread it over additional years. 
             A.    State facilities
                (1)        Phase I:  $3.6 billion.
                    (a)   $1.8 billion for 12,000 infill beds  
                       ($150,000 per bed).
                    (b)   $975 million for 6,000 re-entry beds  
                       ($163,000 per bed).
                    (c)   $857 million for 6,000 medical beds  
                       ($143,000 per bed).
                (2)       Phase II:  $2.5 billion.
                    (a)   $600 million for 4,000 infill beds  
                       ($150,000 per bed).
                    (b)   $1.6 billion for 10,000 re-entry beds  
                       ($163,000 per bed).
                    (c)   $286 million for 2,000 medical/mental  
                       health beds ($143,000 per bed).
             B.     Local facilities:
                (1)      Phase 1:  $750 million plus 25% match  


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                   requirement for 8,000 beds ($94,000 per bed).
                (2)      Phase 2 :  $470 million plus 25% match for  
                   5,000 beds ($94,000 per bed).

           SUPPORT  :   (Verified  4/26/07)


           OPPOSITION  :    (Verified  4/26/07)

          California Correctional Peace Officers Association

           ARGUMENTS IN OPPOSITION  :    The California Correctional  
          Peace Officers Association states:
             "  In-Fill Beds  .  As we understand it, the package proposes  
            that a significant number of beds be built at the sites  
            of currently overcrowded and severely understaffed  
            prisons.  While the beds-whenever they finally come on  
            line-purportedly eliminate the 'dirty beds' they will not  
            solve the overcrowding problem.  This plan will do  
            nothing but postpone the need to address serious systemic  
            problems associated with the overcrowding. 

            "In addition, construction of these beds on existing  
            prison footprints will insure that many of these prisons  
            never have the facilities necessary for rehabilitative  
            programs for the existing population since most of the  
            space will become occupied with housing units. As you  
            know, most of our current prisons have grossly inadequate  
            program space for meaningful rehabilitation programs to  
            be provided to any significant percentage of the inmate  
            population. Construction of the in-fill beds will insure  
            that this deficiency will not be corrected for the  
            population housed in the existing beds at many of the  

            "Finally, given the lack of management ability within the  
            CDCR, as clearly demonstrated in Senator Machado's budget  
            subcommittee hearings this year, the department will be  
            unable to bring these beds on line within budget or a  
            reasonable time frame.


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            "  Out-of-State Housing  . As we understand it, this proposal  
            authorizes the CDCR to send 8,000 inmates out of state.   
            As demonstrated just yesterday in New Castle, Indiana, a  
            facility already contracted to house California inmates,  
            this proposal is extremely dangerous to staff, inmates  
            and the public.  Forcing inmates to transfer to far away  
            prisons is simply a recipe for disaster.  Not only will  
            problems like those that happened yesterday in Indiana  
            occur, it could be catalyst to a horrendous prison  

            "  Conclusion  .  The current proposal does not address the  
            important issues in CDCR. It will exacerbate the  
            long-term shortage of rehabilitative facilities and does  
            nothing to address the severe shortage of staff occurring  
            at many of the existing prisons.  In fact, in many cases,  
            it will make matters much worse for staff, inmates and  
            the public."

          RJG:mw  4/26/07   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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