* Allocates $460,000,000 annually to improve and expand treatment programs for persons convicted of drug and other offenses.
* Limits court authority to incarcerate offenders who commit certain drug crimes, break drug treatment rules or violate parole.
* Substantially shortens parole for certain drug offenses; increases parole for serious and violent felonies.
* Divides Department of Corrections and Rehabilitation authority between two Secretaries, one with six year fixed term and one serving at pleasure of Governor. Provides five year fixed terms for deputy secretaries.
* Creates 19 member board to direct parole and rehabilitation policy.

Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact:

* Increased state costs over time potentially exceeding $1 billion annually primarily for expanding drug treatment and rehabilitation programs for offenders in state prisons, on parole, and in the community.
* State savings over time potentially exceeding $1 billion annually due primarily to reduced prison and parole operating costs.
* Net one-time state savings on capital outlay costs for prison facilities that eventually could exceed $2.5 billion.
* Unknown net fiscal effect on county operations and capital outlay.