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SB-1222 Detention facilities: contracts.(2019-2020)

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Date Published: 03/25/2020 09:34 PM
SB1222:v98#DOCUMENT

Amended  IN  Senate  March 25, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1222


Introduced by Senator Durazo

February 20, 2020


An act to amend Section 2060 of the Insurance Code, relating to insurance. An act to add Section 679.75 to the Insurance Code, and to amend Sections 5003.1 and 6031.6 of the Penal Code, relating to detention facilities.


LEGISLATIVE COUNSEL'S DIGEST


SB 1222, as amended, Durazo. Homeowners’ insurance. Detention facilities: contracts.
Existing law establishes the Board of State and Community Corrections to promote effective state and local efforts and partnerships in California’s adult and juvenile criminal justice system and requires the board to inspect each local detention facility in the state biennially. Existing law requires a privately operated local detention facility responsible for the custody and control of a local prisoner to operate pursuant to a contract with the city, county, or city and county, as appropriate. Existing law requires each contract to include a provision whereby the private agency or entity agrees to operate in compliance with all appropriate state and local building, zoning, health, safety, and fire statutes, ordinances, and regulations, and with specified minimum jail standards established by regulations adopted by the board. Existing law provides that the failure of a privately operated local detention facility to comply with the appropriate health, safety, and fire laws, or with the minimum jail standards adopted by the board may be grounds for the termination of the contract.
This bill would, among other changes, make these provisions also applicable to facilities responsible for the custody and control of civil detainees and require the contract to include a provision whereby the private agency or entity agrees to operate in compliance with Federal Performance-Based Detention Standards and to maintain specified insurance coverages, including general, automobile, and umbrella liability, and workers’ compensation. The bill would also require an insurer providing the insurance to require the facility to comply with the standards and to notify the director of the facility and the Insurance Commissioner of deficiencies and that the contract will be canceled if the deficiencies are not corrected within 60 days, among other duties.

Existing law generally regulates classes of insurance, including homeowners’ insurance. Existing law requires an insurer, in the event of a loss under a homeowners’ insurance policy for which the insured has made a claim for additional living expenses, to provide an insured with a list of items it believes may be covered as additional living expenses.

This bill would make a technical, nonsubstantive change to that provision.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 679.75 is added to the Insurance Code, to read:

679.75.
 (a) To reduce underwriting risk and ensure solvency, any insurer providing insurance coverage pertaining to a private detention facility as defined in subdivision (b) of Section 9500 of the Penal Code shall require both of the following:
(1) That the facility fully comply with all of the standards set forth in subdivision (b) of Section 6031.6 of the Penal Code.
(2) That the facility provide the insurer and the commissioner with an initial compliance report within 60 days of obtaining coverage and provide quarterly updates thereafter.
(b) If the insured is not in compliance with the requirements of subdivision (b) of Section 6031.6 of the Penal Code, the insurer shall notify the director of the facility and the commissioner of the deficiencies and that the insurance contract will be canceled if the identified deficiencies are not corrected within 60 days.

SEC. 2.

 Section 5003.1 of the Penal Code is amended to read:

5003.1.
 (a) On or after January 1, 2020, the department shall not enter into a contract with a private, for-profit prison facility located in or outside of the state to provide housing for state prison inmates.
(b) On or after January 1, 2020, the department shall not renew an existing contract with a private, for-profit prison facility located in or outside of the state to incarcerate state prison inmates.
(c) After January 1, 2028, a state prison inmate or other person under the jurisdiction of the department shall not be incarcerated in a private, for-profit prison facility.
(d) As used in this section, “private, for-profit prison facility” does not include a facility that is privately owned, but is leased and operated by the department.
(e) Notwithstanding subdivisions (a) and (b), the department may renew or extend a contract with a private, for-profit prison facility to provide housing for state prison inmates in order to comply with the requirements of any court-ordered population cap.
(f) Any contract renewal or extension pursuant to subdivision (e) shall comply with the requirements of Section 6031.6.

SEC. 3.

 Section 6031.6 of the Penal Code is amended to read:

6031.6.
 (a) Any A privately operated local detention facility responsible for the custody and control of any local prisoner a local prisoner or a civil detainee shall, as required by subdivision (a) of Section 1208, operate pursuant to a contract with the city, county, or city and county, as appropriate.

(b)(1)Each contract shall include, but not be limited to, a

(b) Each contract shall include, but not be limited to, all of the following:
(1) A provision whereby the private agency or entity agrees to operate in compliance with all appropriate state and local building, zoning, health, safety, and fire statutes, ordinances, and regulations, and with the minimum jail standards established by regulations adopted by the Board of Corrections, as set forth in Subchapter 4 (commencing with Section 1000) of Chapter 1 of Division 1 of Title 15 of the California Code of Regulations. regulations, and the Federal Performance-Based Detention Standards.
(2) The A provision requiring the private agency or entity shall to select and train its personnel in accordance with selection and training requirements adopted by the Board of State and Community Corrections as set forth in Subchapter 1 (commencing with Section 100) of Chapter 1 of Division 1 of Title 15 of the California Code of Regulations.
(3) A provision whereby the private agency or entity agrees to maintain the following insurance coverages, which shall be obtained from an admitted insurer:
(A) General liability, including directors’ and officers’ liability, medical professional liability, and liability for civil rights violations, with minimum coverage limits of not less than five million dollars ($5,000,000) per occurrence and twenty-five million dollars ($25,000,000) in aggregate.
(i) The city, county, or city and county, as appropriate, shall be included as a named insured on the policy.
(ii) The policy shall require the private agency or entity to comply with the requirements of paragraphs (1) and (2) of subdivision (b), provide the insurer and Insurance Commissioner with an initial compliance report and subsequent quarterly compliance updates, and grant the insurer the rights of notice and termination if compliance is not maintained as required.
(B) Automobile liability, with minimum coverage limits of not less than five million dollars ($5,000,000) per occurrence. The city, county, or city and county, as appropriate, shall be included as a named insured on the policy.
(i) The city, county, or city and county, as appropriate, shall be included as a named insured on the policy.
(ii) The policy shall require the private agency or entity to comply with the requirements of paragraphs (1) and (2) of subdivision (b), provide the insurer and Insurance Commissioner with an initial compliance report and subsequent quarterly compliance updates, and grant the insurer the rights of notice and termination if compliance is not maintained as required.
(C) Umbrella liability, with minimum coverage limits of not less than twenty-five million dollars ($25,000,000) per occurrence and twenty-five million dollars ($25,000,000) in aggregate. The state, city, county, or city and county, as appropriate, shall be included as a named insured on the policy.
(i) The city, county, or city and county, as appropriate, shall be included as a named insured on the policy.
(ii) The policy shall require the private agency or entity to comply with the requirements of paragraphs (1) and (2) of subdivision (b), provide the insurer and Insurance Commissioner with an initial compliance report and subsequent quarterly compliance updates, and grant the insurer the rights of notice and termination if compliance is not maintained as required.
(D) Workers’ compensation, as required by law. Notwithstanding subdivision (b) of Section 3700 of the Labor Code, self-insurance does not satisfy this requirement.
(i) The city, county, or city and county, as appropriate, shall be included as a named insured on the policy.
(ii) The policy shall require the private agency or entity to comply with the requirements of paragraphs (1) and (2) of subdivision (b), provide the insurer and insurance commissioner with an initial compliance report and subsequent quarterly compliance updates, and grant the insurer the rights of notice and termination if compliance is not maintained as required.

(3)The

(4) A provision that the failure of a privately operated local detention facility to comply with the appropriate health, safety, and fire laws, or with the minimum jail standards adopted by the Board of Corrections, may the Federal Performance-Based Detention Standards, and with the insurance coverage requirements of this section, shall constitute grounds for the termination of the contract.
(c) Upon the discovery of a failure of a privately operated local detention facility to comply with the requirements of subdivision (b), the local governmental entity shall notify the director of the facility that sanctions shall be applied or the contract shall be canceled if the specified deficiencies are not corrected within 60 days.

SECTION 1.Section 2060 of the Insurance Code is amended to read:
2060.

In the event of a loss under a homeowners’ insurance policy for which the insured has made a claim for additional living expenses, the insurer shall provide the insured with a list of items the insurer believes may be covered under the policy as additional living expenses. The list may include a statement that the list is not intended to include all items covered under the policy, but only those that are commonly claimed, if this is the case. If the department develops a list for use by insurers, the insurer may use that list.