ARIZONA STATE SENATE
Forty-ninth Legislature, Third Special Session
FINAL AMENDED
FACT SHEET FOR H.B. 2010/S.B. 1021
criminal justice; budget reconciliation
Purpose
Makes necessary statutory and session law changes relating to the criminal justice system to implement the FY 2009-2010 budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
H.B. 2010 contains the budget reconciliation provisions for changes relating to criminal justice.
Provisions
Arizona Department of Corrections (ADC) Health Care Services
1. Requires, if a prisoner in a secure care facility requires health care services that ADC, the facility or a private prison provider contracted by ADC cannot provide, ADC to pay approved claims from a facility or provider that provides these services as follows:
a) For inpatient and outpatient hospital services, ADC to reimburse at a level that does not exceed the reimbursement methodology established by the Arizona Health Care Cost Containment System (AHCCCS) Administration for the reimbursement of hospitals.
b) For health and medical services, ADC to reimburse at a level that does not exceed the capped fee-for-service schedule that is adopted by the AHCCCS Administration and that is in effect at the time the services are delivered.
2. Requires, retroactive to October 1, 2009:
a) ADC, before October 1, 2009, to issue a request for information for privatization of all correctional health services, including all medical and dental services that are provided in a state owned and operated facility. Requires, before publication the request for information to be submitted for review to the Joint Legislative Budget Committee (JLBC).
b) ADC to issue a request for proposal (RFP) to privatize all correctional health services that are provided in a state owned and operated facility and award a contract to a private provider of correctional health services that will provide such services, including all medical and dental services, at a cost below the FY 2007-2008 total cost to the state for such services.
c) By January 1, 2010 and before issuance, the RFP to be submitted for review to JLBC. Requires ADC to award a contract by May 1, 2010.
d) Notwithstanding any other law, ADC to report actual FY 2008-2009, estimated FY 2009-2010 and requested FY 2010-2011 expenditures for each line item delineated in the FY 2009-2010 general appropriations act when ADC submits the FY 2010-2011 budget request. Requires the information submitted for each line item to contain as much detail as submitted in previous years for prior line items.
3. Allows, notwithstanding any other law, ADC to use any nonappropriated state monies for the payment of inmate health care expenditures incurred during FY 2007-2008.
ADC Concession Agreement
4. Requires, retroactive to October 1, 2009:
a) The Arizona Department of Administration (ADOA), before October 1, 2009, and in consultation with ADC, to issue a request for information for the purpose of identifying the feasibility of a concession agreement that allows a private vendor to operate a prison facility.
b) ADOA, in consultation with ADC, to issue an RFP for a concession agreement allowing private vendors to operate an Arizona State Prison complex other than the Arizona State Prison complex at Yuma.
c) An annual cost efficiency savings to this state that is equally divided between this state and the private vendor.
d) The RFP’s to be submitted for review to the Joint Committee on Capital Review (JCCR) not later than April 1, 2010, and before issuance.
e) The request for information to be submitted for review to the JCCR before publication and any proposed concession agreement to be submitted to JCCR before it is awarded.
5. Allows, retroactive to October 1, 2009, a private vendor to operate one or more prison complexes.
6. Specifies, retroactive to October 1, 2009, that the following does not apply to any concession agreement:
a) The requirement that the proposer of the contract allow the state to cancel the contract at any time after the first year of operation, without penalty to this state, on giving 90 days written notice.
b) The restriction that a contract to provide correctional services for an initial period cannot exceed ten years.
c) The option to renew for two subsequent renewal periods of five years each.
d) The use of a multiterm contract for materials or services or for job-order contracting construction services.
7. Specifies, retroactive to October 1, 2009 and except as otherwise provided, the following apply to any concession agreement:
a) Agreements with federal or private agencies and institutions.
b) Adult incarceration contracts for correctional services.
c) Private prison facility contracts.
d) Adult incarceration private contractors.
e) Reimbursing the county for prosecution expenses.
8. Contains an intent clause relating to the privatization of prison operations.
ADC Lease-Purchase Agreement
9. Requires, by June 30, 2010, ADOA to enter into one or more lease-purchase agreements through the sale and simultaneous lease-purchase of an ADC facility or any other state owned facility.
10. Requires, if the agreement involves an ADC facility, ADOA to enter into the agreement in consultation with ADC.
11. Requires the agreement or agreements to:
a) Result in net available proceeds of not more than $250,000,000 in the state General Fund before December 31, 2009 and a total amount of net available proceeds of not more than $735,419,300 in the state General Fund by June 30, 2010.
b) Be for a fixed term of not more than 20 years.
c) Require the initial lease-purchase payment to be in FY 2010-2011.
12. Requires, notwithstanding the ADOA Director’s powers and duties relating to the acquisition of property, any lease-purchase agreement to provide that:
a) The state’s obligation to make any payment under the agreement is a current expense of ADOA, payable exclusively from the appropriated monies and is not a general obligation indebtedness of the state or ADOA.
b) If the Legislature fails to appropriate monies or ADOA fails to allocate such monies for any payment under the agreement, the agreement terminates at the end of the current term and the state and ADOA are relieved of any subsequent obligation under the agreement.
c) ADOA may covenant to use its best efforts to budget, obtain, allocate and maintain sufficient appropriated monies to make payments under the agreement, but the agreement shall acknowledge that appropriating state monies is a legislative act and is beyond the control of ADOA or any other party to the agreement.
13. Allows, notwithstanding any other law, ADOA to transfer some or all of the state’s interest in any ADC prison facility or any other state owned facility.
14. Specifies any agreements or transactions determined by ADOA to be necessary to comply with the requirements of the lease-purchase agreements are exempt from the Arizona Procurement Code.
15. Specifies the authority conferred is in addition to the powers conferred by any other law, without reference to any other law, and is full authority for the actions authorized, including entering into and performing agreements without regard to the requirements or procedures of any other law.
16. Requires the state to maintain operations at any facility and ADC or a private contractor to maintain operations at any prison facility that is sold pursuant to a lease-purchase agreement.
ADC Private Prison Contracts
17. Requires ADC to issue an RFP and contract for 5,000 private prison beds for new or existing private prisons in Arizona or at expansions of existing private prisons in Arizona.
18. Allows the private vendor to bid for all or a portion of the 5,000 beds and for ADC to award the contract to one or more private vendors.
19. Requires the RFP’s to specify the length of the contract period but prohibits the contract period to exceed 20 years.
20. Requires, by November 1, 2009 and before issuance, the proposed RFP’s to be submitted for review to the JLBC and for all contracts to be awarded by June 30, 2010.
21. Requires ADC to submit a report to JLBC on the status of the new beds each calendar quarter until all new beds are occupied.
22. Specifies that statutory restrictions relating to a 10-year initial contract, two subsequent contract renewals and multi-term contracts do not apply to the 5,000 private prison bed contracts.
23. Specifies, except as otherwise provided, the following apply to any private prison bed contract:
a) Agreements with federal or private agencies and institutions.
b) Adult incarceration contracts.
c) Private prison facility contracts.
d) Adult incarceration private contractors.
e) Reimbursing the county for prosecution expenses.
24. Allows, in FY 2009-2010 and notwithstanding any other law, ADC to use any nonappropriated monies for any start up and operating costs that are associated with the 4,000 new state beds that were authorized in 2007.
Probation
25. Increases, from $10 to $20, the surcharge levied on every fine, penalty and forfeiture imposed for criminal offenses and any civil penalty for a civil traffic violation, specified motor vehicle violations or for a violation of the game and fish statutes.
26. Increases, from 60 to 65, the maximum number of probationers that a deputy adult probation officer may supervise.
27. Allows an intensive probation team to consist of two adult probation officers.
28. Increases, from $50 to $75, the probation fees for a person on intensive probation and allows, instead of only any amount greater than $40, any amount of the fee to be used to supplement monies used for probation and surveillance officer salaries and for the superior court adult probation department’s support of programs and services.
29. Makes conforming changes relating to the increase of probation supervision fees for adult offenders and parolees and probationers who are being supervised under the Interstate Compact.
Courts
30. Changes, retroactively to July 1, 2009, for FY 2009-2010, in a county with a population of less than 1,500,000 persons, the payment of the compensation and employee related expenditures of a justice of the peace by reducing the state’s payment from 40 percent to 19.25 percent and increasing the county’s payment from 60 percent to 80.75 percent, and requires the county to pay the full amount of the employer contribution of the state retirement system or plan or any county health plan.
31. Continues, retroactive to July 1, 2009, the exclusion of state photo enforcement citations in the calculation of judicial productivity credits in FY 2009-2010.
32. Suspends, in FY 2009-2010, the provisions relating to supplanting of state monies contained in the State Aid to the Courts Fund, Local Courts Assistance Fund, Alternative Dispute Resolution Fund, Local Alternative Dispute Resolution Fund, Adult Probation Services Fund, Juvenile Probation Fund and Community Punishment Plan. Requires, the Arizona Supreme Court to report to the JLBC identifying any decrease in county funding related to these suspended provisions including the reasons for the decrease.
33. Suspends, for FY 2009-2010, and requires, beginning July 1, 2011, electronic submittal of the following reports:
a) Juvenile Intensive Probation.
b) Community Punishment Program Evaluation.
c) Emancipation of Minors.
d) Drug Treatment and Education Fund.
e) Lengthy Trial Fund.
f) Child Support Committee.
g) Domestic Relations Committee.
Department of Public Safety (DPS)
34. Establishes, retroactive to July 1, 2009, the Crime Laboratory Operations Fund, administered by DPS and consisting of the $45 surcharge an individual pays for attending a defensive driving school, which is currently deposited in the state General Fund. Requires, subject to legislative appropriation, the monies to be used for crime laboratory services.
35. Requires, retroactive to July 1, 2009, on receipt of the $45 surcharge, the defensive driving school to transmit the surcharge to the State Treasurer for deposit as follows:
a) The first $10,400,000 in revenue annually in the Crime Laboratory Operations Fund.
b) All remaining money in the state General Fund.
36. Requires, for FY 2009-2010 and notwithstanding any other law, any monies distributed from the Criminal Justice Enhancement Fund (CJEF) to the state General Fund to be deposited in the Crime Laboratory Assessment Fund.
37. Specifies, notwithstanding the DPS quarterly distribution to political subdivisions that operate crime labs, monies distributed to the Crime Laboratory Assessment Fund are for use by DPS and exempt from distribution to political subdivisions.
38. Decreases, from $3,484,000 to $980,000, in FY 2009-2010 the appropriation to the Deoxyribonucleic Acid Identification System Fund.
39. Suspends, for FY 2009-2010 and notwithstanding the payment installment schedule by the Arizona Department of Transportation, the statutory caps limiting the level of Highway User Revenue Fund monies and State Highway Fund monies available to fund the DPS Highway Patrol costs.
Attorney General
40. Allows, for FY 2009-2010 and notwithstanding monies used for the consumer protection division, the Attorney General to use monies in the Consumer Protection-Consumer Fraud Revolving Fund for any operating expenses incurred by the Department of Law, including any cost or expense associated with the tobacco master settlement agreement arbitration.
41. Allows, for FY 2009-2010 and notwithstanding the use for collection of debts owed to the state, the Attorney General to use monies in the Collection Enforcement Revolving Fund for any operating expenses incurred by the Department of Law.
Board of Executive Clemency
42. Requires, retroactive to July 1, 2009 and for FY 2009-2010:
a) The chairman of the Board of Executive Clemency (Board) to also act as the executive director of the Board.
b) Notwithstanding any other law, the members of the Board, excluding the Chairman, to serve on a part-time basis.
43. Prohibits, retroactive to July 1, 2009, a part-time Board member from working more than 30 hours each week and from eligibility for paid leave or any benefits provided to state employees.
Retirement
44. Excludes, from the Public Safety Personnel Retirement System compensation, payments made directly or indirectly by the employer to the employee for work performed for a third party on a contracted basis or any other type of agreement under which the third party pays or reimburses the employer for the work performed by the employee for that third party, except for third party contracts between public agencies for law enforcement, training, wildfire and emergency management activities.
45. Restricts full-time dispatchers from participation in the Corrections Officer Retirement Plan to a person who was employed as a full-time dispatcher before the effective date of this amendment, if the governing body or agency of the employer of an eligible group enters into a joinder agreement with the fund manager to bring its full-time dispatchers into this plan before the effective date of this amendment.
Miscellaneous
46. Allows, notwithstanding any other law, any monies deposited in ADC’s Transition Office Fund to be used for any costs to operate transition programs.
47. Requires deposit of the 11.70 percent of the CJEF to be directly distributed or deposited to the county sheriffs, instead of allocation to ADC.
48. Requires, in FY 2009-2010, the Drug and Gang Prevention Resource Center (Resource Center) to enter into an agreement with the Arizona Criminal Justice Commission (ACJC) to provide $235,200 to ACJC from the Resource Center Fund to fund the Arizona Youth Survey.
49. Contains a conforming clause.
50. Makes technical changes and conforming changes.
51. Becomes effective on the general effective date, with retroactive provisions as noted.
Amendments Adopted by Committee
Senate Action on S.B. 1021 House Action on H.B. 2010
APPROP 7/30/09 DPA/SE 6-2-3-0 APPROP 7/29/09 DP 7-5-0-2-0
(H.B. 2010 was substituted for S.B. 1021 3rd Read 7/31/09 31-15-14-0
on 3rd Read)
3rd Read 8/12/09 17-8-5-0
Signed by the Governor 9/13/09
Chapter 6
Prepared by Senate Research
September 25, 2009
CEW/tam