Brief Description: Requiring the projected costs of certain criminal justice legislation to be appropriated into accounts to be used for capital costs.

Sponsors: Representatives Kagi, Dunshee, Hankins and O'Brien.

Hearing Date: 2/28/05

Staff: Yvonne Walker (786-7841).

Background:

Fiscal Note. Fiscal notes identify the fiscal impact on the operating and capital budgets. Generally, the Office of Financial Management works in cooperation with appropriate legislative committees, for establishing procedures for the provision of fiscal notes on the expected fiscal impact of bills that increase or decrease state or local government revenue or expenditures. Fiscal notes showing an impact on state government must indicate by fiscal year the impact for the remainder of the biennium in which the bill or resolution will first take effect as well as a cumulative forecast of the fiscal impact for the succeeding four fiscal years. Fiscal notes showing an impact on a local government must indicate by fiscal year the total impact on the local governments involved for the fist two years the legislation would be in effect and also a cumulative forecast of the fiscal impact for the next six years.

Corrections Special Reserve Accounts. In 2002, the state of Virginia enacted legislation that required its Virginia Criminal Sentencing Commission to review all new proposed legislation to determine its fiscal impact on adult and juvenile correctional resources. The requirement for a fiscal impact statement included, but was not limited to, those bills which: 1) Added new crimes for which imprisonment or commitment is authorized; 2) increase the periods of imprisonment for existing crimes; 3) imposed minimum or mandatory minimum terms of imprisonment; or 4) modified the law governing the release of prisoners in such a way that the time served in incarceration would increase.

The amount of the estimated fiscal impact is required to be printed on the face of each criminal justice bill. For each law enacted which results in a net increase in periods of imprisonment in a correctional facility, a one-year appropriation must be transferred from the general fund to a Corrections Special Reserve Fund. Expenditures from the Corrections Special Reserve Account can only be used for capital expenses relating to correctional institutions.

Virginia's statute prohibits any proposed legislation with a correctional fiscal impact from being enacted unless necessary funding is appropriated to address estimated costs.

Summary of Bill:

Fiscal Note. The Office of Financial Management must prepare a fiscal note for any bill introduced before the Legislature that would result in a new increase in periods of incarceration in state or local correctional facilities that house juveniles or adult offenders. This applies to any bill that: 1) Adds a new crime which requires a period of incarceration; 2) Increases the periods of incarceration authorized for existing crimes; 3) Imposes or increases mandatory minimum terms of incarceration; or 4) Modifies any statute governing the release of adult or juvenile offenders in such a way that their incarceration time would be increased.

The Legislature must make a one-time transfer of funds from the general fund to either the State or the Local Corrections Special Reserve Account established in the State Treasury for any criminal justice bill enacted where a fiscal note is required. Generally, the required transfer of funds must be in an amount equal to the year containing the highest estimated increase in operating costs associated with the enacted law as stated in the fiscal note. However, the amount to be transferred may be determined by the Legislature if the fiscal note estimating the operating costs is indeterminate or if the Legislature's best estimate of the increased operating costs differs from the amount estimated in the fiscal note.

The state's expenditure limitations do not apply to transfers made to the Corrections Special Reserve Accounts.

Corrections Special Reserve Accounts. A Local and a State Corrections Special Reserve Account is created in the State Treasury. Revenues in each of the accounts consist of funds transferred from the general fund due to the enactment of criminal justice bills where fiscal notes were required, as well as any accrued interest.

Expenditures from the State Corrections Special Reserve Account may only be used for capital expenses relating to state correctional institutions, including the cost of planning or preplanning studies that may be required to initiate capital projects. Expenditures from the Local Corrections Special Reserve Account may only be used for reimbursement of local government capital expenses pursuant to a prioritized list of submitted local petitions that are recommended for funding by the Legislature.

Prioritized lists of Local Petitions. Local governments may submit petitions to the Department of Community, Trade and Economic Development (CTED) for the reimbursement of increased capital costs associated with enacted state statutes that have resulted in an increase in offender populations in locally operated adult or juvenile correctional facilities. The petitions may also include the cost of planning or preplanning studies that may be required to initiate capital projects.
   
The CTED, in consultation with the Washington Association of Sheriffs and Police Chiefs (WASPC), must develop procedures for processing, auditing the validity, and for prioritizing the petitions. Prioritization of the petitions must be based on, but not limited to, factors such as the disproportionate fiscal impact relative to the county budget, efficient use of resources, and whether the costs were mainly incurred because of changes in state criminal law.
   
Before January 1st of each year, the CTED, in consultation with the WASPC, must develop and submit to the appropriate fiscal committees of the Legislature a prioritized list of submitted petitions that are recommended for funding by the Legislature.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.