BILL NUMBER: SB 863	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JUNE 19, 2014
	PASSED THE ASSEMBLY  JUNE 19, 2014
	AMENDED IN ASSEMBLY  JUNE 16, 2014
	AMENDED IN ASSEMBLY  JUNE 13, 2014
	AMENDED IN ASSEMBLY  JUNE 12, 2014

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 9, 2014

   An act to amend Sections 15820.92, 15820.921, and 15820.924 of,
and to add Chapter 3.131 (commencing with Section 15820.93) to Part
10b of Division 3 of Title 2 of, the Government Code, relating to
correctional facilities, and making an appropriation therefor, to
take effect immediately, bill related to the budget.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 863, Committee on Budget and Fiscal Review. Correctional
facilities: construction.
   (1) Existing law authorizes the Board of State and Community
Corrections (BSCC), a participating county, as defined, and the State
Public Works Board to acquire, design, and construct an adult local
criminal justice facility, as specified, and requires them to enter
into an agreement for each facility that provides related performance
expectations of the parties, guidelines and criteria for the use and
application of the financing instruments used to pay for the
facility, and ongoing maintenance and staffing responsibilities for
the term of the financing. Existing law also authorizes the State
Public Works Board and the BSCC to borrow funds from the Pooled Money
Investment Account or from another appropriate source for project
costs of an adult local criminal justice facility. Existing law
authorizes the BSCC and a participating county, with the consent of
the State Public Works Board, to enter into leases, contracts, or
other agreements for property use, maintenance, or operation of an
adult local criminal justice facility.
   This bill would also authorize the Department of Corrections and
Rehabilitation to participate in the financing program with
participating counties and the State Public Works Board for the
acquisition, design, and construction of adult local criminal justice
facilities, to enter into the required agreements, to borrow funds,
and to enter into leases, contracts, or other agreements for these
purposes, as specified.
   (2) Existing law authorizes the Board of State and Community
Corrections, the State Public Works Board, and a participating
county, as defined, to acquire, design, and construct an adult local
criminal justice facility approved by the Board of State and
Community Corrections, or to acquire a site or sites owned by, or
subject to a lease option to purchase held by, a participating
county. Existing law authorizes the State Public Works Board to issue
up to $500,000,000 in revenue bonds, notes, or bond anticipation
notes to finance the acquisition, design, and construction of
approved adult local criminal justice facilities. The funds derived
from those revenue bonds, notes, or bond anticipation notes are
continuously appropriated for those purposes.
   Existing law establishes the Department of Corrections and
Rehabilitation to oversee the state prison system. Existing law
authorizes the Department of Corrections and Rehabilitation to
design, construct, or renovate housing units, support buildings, and
programming space in order to add capacity to facilities under its
jurisdiction.
   This bill would enact provisions similar to the provisions
described above authorizing the Board of State and Community
Corrections or the department, the State Public Works Board, and a
participating county, as defined, to acquire, design, and construct
an adult local criminal justice facility, as defined. The bill would
authorize the State Public Works Board to issue up to $500,000,000 in
revenue bonds, notes, or bond anticipation notes to finance the
acquisition, design, and construction of approved adult local
criminal justice facilities, and would continuously appropriate the
funds for those purposes. The bill would establish procedures for
approving and funding these projects.
   (3)This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 15820.92 of the Government Code is amended to
read:
   15820.92.  For purposes of this chapter, "participating county"
means any county, or regional consortium of counties, within the
state that has been certified to the State Public Works Board (the
board) by the Board of State and Community Corrections (BSCC) as
having satisfied all of the requirements set forth in Section
15820.925 for financing an adult local criminal justice facility
pursuant to this chapter. For purposes of this chapter, an adult
local criminal justice facility may include any custodial housing,
reentry, program, mental health, or treatment space necessary to
manage the adult offender population consistent with the legislative
intent described in Sections 17.5 and 3450 of the Penal Code under
the jurisdiction of the sheriff or county department of corrections,
as may be applicable, to be further defined by the BSCC in duly
adopted regulations.
   (a) The BSCC or the Department of Corrections and Rehabilitation
(CDCR), a participating county, and the board are authorized to
acquire, design, and construct an adult local criminal justice
facility approved by the BSCC pursuant to Section 15820.925, or to
acquire a site or sites owned by, or subject to a lease or option to
purchase held by, a participating county. For the purposes of this
chapter, acquisition shall include, but is not limited to,
acquisition of completed facilities through a build-to-suit purchase.
Facilities financed pursuant to this chapter may be delivered
through either a design-bid-build or a design-build process. The
ownership interest of a participating county in the site or sites for
an adult local criminal justice facility shall be determined by the
board to be adequate for purposes of its financing in order to be
eligible under this chapter.
   (b) Notwithstanding Section 14951, the participating county may
assign an inspector during the construction of the adult local
criminal justice facility.
   (c) The BSCC or the CDCR, a participating county, and the board
shall enter into an agreement for each adult local criminal justice
facility that shall provide, at a minimum, performance expectations
of the parties related to the acquisition, design, and construction,
including, without limitation, renovation, of the adult local
criminal justice facility; guidelines and criteria for use and
application of the proceeds of revenue bonds, notes, or bond
anticipation notes issued by the board to pay for the cost of the
approved adult local criminal justice facility; and ongoing
maintenance and staffing responsibilities for the term of the
financing.
   (d) The agreement shall include a provision that the participating
county agrees to indemnify, defend, and hold harmless the State of
California for any and all claims and losses arising out of the
acquisition, design, and construction of the adult local criminal
justice facility. The agreement may also contain additional terms and
conditions that facilitate the financing by the board.
   (e) The scope and cost of the adult local criminal justice
facilities shall be subject to approval and administrative oversight
by the board.
   (f) For purposes of compliance with the California Environmental
Quality Act (Division 13 (commencing with Section 21000) of the
Public Resources Code), the board, BSCC and the CDCR, are not a lead
or responsible agency, but the participating county is the lead
agency.
  SEC. 2.  Section 15820.921 of the Government Code is amended to
read:
   15820.921.  Upon a participating county's receipt of responsive
construction bids or design-build proposals, or a participating
county's notification to the board of its intent to exercise a
purchase option, the board and the BSCC or the CDCR may borrow funds
for project costs after the adult local criminal justice facility has
been certified pursuant to Section 15820.92 from the Pooled Money
Investment Account pursuant to Sections 16312 and 16313, or from any
other appropriate source. In the event any of the revenue bonds,
notes, or bond anticipation notes authorized by this chapter are not
sold, the BSCC or the CDCR shall commit a sufficient amount of its
support appropriation to repay any loans made for an approved adult
local criminal justice facility.
  SEC. 3.  Section 15820.924 of the Government Code is amended to
read:
   15820.924.  With the consent of the board, the BSCC or the CDCR
and a participating county are authorized to enter into leases or
subleases, as lessor or lessee, for any property or approved adult
local criminal justice facility and are further authorized to enter
into contracts or other agreements for the use, maintenance, and
operation of the adult local criminal justice facility in order to
facilitate the financing authorized by this chapter. In those leases,
subleases, or other agreements, the participating county shall agree
to indemnify, defend and hold harmless the State of California for
any and all claims and losses accruing and resulting from or arising
out of the participating county's use and occupancy of the adult
local criminal justice facility.
  SEC. 4.  Chapter 3.131 (commencing with Section 15820.93) is added
to Part 10b of Division 3 of Title 2 of the Government Code, to read:

      CHAPTER 3.131.  FINANCING OF LOCAL CRIMINAL JUSTICE FACILITIES


   15820.93.  (a) For purposes of this chapter, "participating county"
means a county, city and county, or regional consortium of counties,
within the state that has been certified to the State Public Works
Board (board) by the Board of State and Community Corrections (BSCC)
as having satisfied all of the requirements set forth in Section
15820.935 for financing an adult local criminal justice facility
pursuant to this chapter.
   (b) (1) For purposes of this chapter, an adult local criminal
justice facility may include improved housing with an emphasis on
expanding program and treatment space as necessary to manage the
adult offender population consistent with the legislative intent
described in Sections 17.5 and 3450 of the Penal Code under the
jurisdiction of the sheriff or county department of corrections, as
may be applicable, to be further defined by the BSCC in duly adopted
regulations.
   (2) For purposes of this chapter, an adult local criminal justice
facility may also include custodial housing, reentry, program, mental
health, or treatment space necessary to manage the adult offender
population, consistent with the legislative intent described in
Sections 17.5 and 3450 of the Penal Code, under the jurisdiction of
the sheriff or county department of corrections, as may be
applicable, to be further defined by the BSCC in duly adopted
regulations.
   15820.930.  (a) The BSCC or the Department of Corrections and
Rehabilitation (CDCR), a participating county, and the board are
authorized to acquire, design, and construct an adult local criminal
justice facility approved by the BSCC pursuant to Section 15820.935,
or to acquire a site or sites owned by, or subject to a lease or
option to purchase held by, a participating county. For the purposes
of this chapter, acquisition shall include, but is not limited to,
acquisition of completed facilities through a build-to-suit purchase.
Facilities financed pursuant to this chapter may be delivered
through either a design-bid-build or a design-build process. The
ownership interest of a participating county in the site or sites for
an adult local criminal justice facility shall be determined by the
board to be adequate for purposes of its financing in order to be
eligible under this chapter.
   (b) Notwithstanding Section 14951, the participating county may
assign an inspector during the construction of the adult local
criminal justice facility.
   (c) The BSCC or the CDCR, a participating county, and the board
shall enter into an agreement for each adult local criminal justice
facility that shall provide, at a minimum, performance expectations
of the parties related to the acquisition, design, and construction,
including, without limitation, renovation, of the adult local
criminal justice facility; guidelines and criteria for use and
application of the proceeds of revenue bonds, notes, or bond
anticipation notes issued by the board to pay for the cost of the
approved adult local criminal justice facility; and ongoing
maintenance and staffing responsibilities for the term of the
financing.
   (d) The agreement shall include a provision that the participating
county agrees to indemnify, defend, and hold harmless the State of
California for any and all claims and losses arising out of the
acquisition, design, and construction of the adult local criminal
justice facility. The agreement may also contain additional terms and
conditions that facilitate the financing by the board.
   (e) The scope and cost of the adult local criminal justice
facilities shall be subject to approval and administrative oversight
by the board.
   (f) For purposes of compliance with the California Environmental
Quality Act (Division 13 (commencing with Section 21000) of the
Public Resources Code), the board, BSCC, and the CDCR are not a lead
or responsible agency, the participating county is the lead agency.
   15820.931.  Upon a participating county's receipt of responsive
construction bids or design-build proposals, or a participating
county's notification to the board of its intent to exercise a
purchase option, and after the adult local criminal justice facility
has been certified pursuant to Section 15820.93, the board and the
BSCC or the CDCR may borrow funds for project costs from the Pooled
Money Investment Account pursuant to Sections 16312 and 16313, or
from any other appropriate source. In the event any of the revenue
bonds, notes, or bond anticipation notes authorized by this chapter
are not sold, the BSCC or the CDCR shall commit a sufficient amount
of its support appropriation to repay any loans made for an approved
adult local criminal justice facility.
   15820.932.  (a) The board may issue up to five hundred million
dollars ($500,000,000) in revenue bonds, notes, or bond anticipation
notes, pursuant to Chapter 5 (commencing with Section 15830) to
finance the acquisition, design, and construction, including, without
limitation, renovation, and a reasonable construction reserve, of
approved adult local criminal justice facilities described in Section
15820.930, and any additional amount authorized under Section
15849.6 to pay for the cost of financing.
   (b) Proceeds from the revenue bonds, notes, or bond anticipation
notes may be used to reimburse a participating county for the costs
of acquisition, design, and construction, including, without
limitation, renovation, for approved adult local criminal justice
facilities.
   (c) Notwithstanding Section 13340, funds derived pursuant to this
section and Section 15820.931 are continuously appropriated for
purposes of this chapter.
   15820.933.  In support of this state financing, the Legislature
finds and declares all of the following:
   (a) California's current challenges in managing jail populations
follow decades of overcrowded and aging jails, and piecemeal,
erratic, and incomplete responses to dealing with these problems.
Reversing course will require sustainable solutions that must include
sound planning and implementation, and must be grounded in the
principle that jail resources must be well-planned and employed
efficiently and effectively to prevent overcrowding and promote
public safety through the broader use of evidence-based practices and
policies in the criminal justice system.
   (b) California needs a long-term, statewide strategy to
effectively manage its jail population and jail resources. Without an
ongoing analytical framework for taking into account factors such as
population growth, criminogenic needs of the current and future jail
populations, crime rates, custodial housing needs, and additional
changes to realignment or sentencing laws and practices, California
will continue to resort to reactive, fragmentary fixes to its jail
condition and capacity problems instead of being fully prepared to
develop an effective and sustainable system of local custodial
facilities.
   (c) The county adult criminal justice system needs improved
housing with an emphasis on expanding program and treatment space to
manage the adult offender population under its jurisdiction.
   (d) Improved county adult criminal justice housing with an
emphasis on expanding program and treatment space will enhance public
safety throughout the state by providing increased access to
appropriate programs or treatment.
   (e) By improving county adult criminal justice housing with an
emphasis on expanding program and treatment space, this financing
will serve a critical state purpose by promoting public safety.
   (f) This purpose represents valuable consideration in exchange for
this state action.
   15820.934.  With the consent of the board, the BSCC or the CDCR
and a participating county are authorized to enter into leases or
subleases, as lessor or lessee, for any property or approved adult
local criminal justice facility and are further authorized to enter
into contracts or other agreements for the use, maintenance, and
operation of the adult local criminal justice facility in order to
facilitate the financing authorized by this chapter. In those leases,
subleases, or other agreements, the participating county shall agree
to indemnify, defend, and hold harmless the State of California for
any and all claims and losses accruing and resulting from or arising
out of the participating county's use and occupancy of the adult
local criminal justice facility.
   15820.935.  (a) The BSCC shall adhere to its duly adopted
regulations for the approval or disapproval of adult local criminal
justice facilities. The BSCC shall also consider cost-effectiveness
in determining approval or disapproval. No state moneys shall be
encumbered in contracts let by a participating county until one of
the following occur:
   (1) Final architectural plans and specifications have been
approved by the BSCC, and subsequent construction bids have been
received.
   (2) Documents prepared by a participating county pursuant to
paragraph (1) of subdivision (d) of Section 20133 of the Public
Contract Code have been approved by the BSCC, and subsequent
design-build proposals have been received pursuant to that section.
   (3) The participating county has notified the board of its intent
to exercise an option to purchase the completed facility pursuant to
Section 15820.931.
   (b) The review and approval of plans, specifications, or other
documents by the BSCC are for the purpose of ensuring the proper
administration of moneys and the determination of whether the adult
local criminal justice facility specifications comply with law and
regulation. The BSCC may require changes in construction materials to
enhance safety and security if materials proposed at the time of
final plans and specifications are not essential and customary as
used statewide for facilities of the same security level.
Participating counties are responsible for the acquisition, design,
construction, staffing, operation, repair, and maintenance of the
adult local criminal justice facility.
   (c) The BSCC shall establish minimum standards, funding schedules,
and procedures, which shall take into consideration, but not be
limited to, the following:
   (1) Certification by a participating county of control of the
adult local criminal justice facility site through either fee simple
ownership of the site or comparable long-term possession of the site,
and right of access to the adult local criminal justice facility
sufficient to ensure undisturbed use and possession.
   (2) Documentation of the need for improved adult local criminal
justice facility housing with an emphasis on expanded program and
treatment space.
   (3) A written adult local criminal justice facility proposal.
   (4) Submission of a staffing plan for the adult local criminal
justice facility, including operational cost projections and
documentation that the adult local criminal justice facility will be
able to be safely staffed and operated within 90 days of completion,
as may be applicable.
   (5) Submission of architectural drawings, which shall be approved
by the BSCC for compliance with minimum adult detention facility
standards and which shall also be approved by the State Fire Marshal
for compliance with fire safety and life safety requirements.
   (6) Documentation evidencing compliance with the California
Environmental Quality Act (CEQA).
   (7) Provisions intended to maintain the tax-exempt status of the
bonds, notes, or bond anticipation notes issued by the board.
   15820.936.  (a) The participating county contribution for adult
local criminal justice facilities financed under this chapter shall
be a minimum of 10 percent of the total project costs. The BSCC may
reduce contribution requirements for participating counties with a
general population below 200,000 upon petition by a participating
county to the BSCC requesting a lower level of contribution.
   (b) The BSCC shall determine the funding and scoring criteria. The
BSCC may consider award history in Chapters 3.11 to 3.13, inclusive,
in its scoring of adult local criminal justice facilities
applications. The funding criteria shall include, as a mandatory
criterion, documentation of the percentage of pretrial inmates in the
county jail from January 1, 2013, to December 31, 2013, inclusive,
and a description of the county's current risk-assessment-based
pretrial release program. Funding preference shall also be given to
counties that are most prepared to proceed successfully with this
financing in a timely manner. The determination of preparedness to
proceed shall include the following:
   (1) Counties providing a board of supervisors' resolution
authorizing an adequate amount of available matching funds to satisfy
the counties' contribution and approving the forms of the project
documents deemed necessary, as identified by the board to the BSCC,
to effectuate the financing authorized by this chapter, and
authorizing the appropriate signatory or signatories to execute those
documents at the appropriate times. The identified matching funds in
the resolution shall be compatible with the state's lease revenue
bond financing.
   (2) Counties providing documentation evidencing CEQA compliance
has been completed. Documentation of CEQA compliance shall be either
a final Notice of Determination or a final Notice of Exemption, as
appropriate, and a letter from county counsel certifying the
associated statute of limitations has expired and either no
challenges were filed or identifying any challenges filed and
explaining how they have been resolved in a manner that allows the
project to proceed as proposed.
   (c) Funding consideration shall be given to counties that are
seeking to replace compacted, outdated, or unsafe housing capacity or
are seeking to renovate existing or build new facilities that
provide adequate space for the provision of treatment and
rehabilitation services, including mental health treatment.
   (d) A participating county may replace existing housing capacity,
realizing only a minimal increase of capacity, using this financing
authority if the requesting county clearly documents an existing
housing capacity deficiency.
  SEC. 5.  This act is a bill providing for appropriations related to
the Budget Bill within the meaning of subdivision (e) of Section 12
of Article IV of the California Constitution, has been identified as
related to the budget in the Budget Bill, and shall take effect
immediately.