Orange County Sheriff Sandra Hutchens has warned that her department could lose its $26 million federal contract to house immigrant detainees under a state bill aimed at restricting local police from aiding federal authorities in enforcing immigration laws.

Senate Bill 54, also known as the California Values Act, by state Sen. Kevin de Leon, D-Los Angeles, won approval from the state Senate on Monday, April 3, and is headed to the Assembly.

Orange County’s contract with Immigration and Customs Enforcement represents 5 percent of the department’s $520 million in revenue this fiscal year.

“Without this agreement, our budget will be significantly compromised,” Hutchens said in a March 3 letter to state Sen. Pat Bates, R-Laguna Niguel.

Bates issued a statement Monday claiming that Orange, Contra Costa, Yuba and Sacramento counties, which have contracts to house ICE detainees, might have to pull deputies off the street to balance their ledgers.

“These counties may have little choice but to lay off sheriff’s deputies, which would endanger citizens and immigrants alike,” Bates said.

De Leon, however, said the bill will actually save money for most local departments.

“Our precious local law enforcement resources will be squandered if police are pulled from their duties to arrest otherwise law-abiding maids, busboys, laborers, mothers and fathers. Trust will be lost. Crimes will go unreported for fear of deportation,” he said in a statement.

The bill bans local law enforcement from using their resources to investigate, detain or arrest persons for immigration reasons.

“If passed, SB 54 puts local law enforcement in the unenviable position of being in conflict with federal law,” Hutchens countered. “Sheriffs across California will have to choose whether to honor current agreements with the federal government or violate California law.”

Hutchens and Bates stressed that they agree local authorities should not enforce federal immigration laws. But sometimes the missions of local law enforcement and ICE intersect, they said.

“California’s public safety agencies interact with the federal government to protect the public,” Bates said. “SB 54 is not needed. It would lead to dangerous individuals falling through the cracks and being let out on the streets when they should have been deported instead.”

Hutchens explained that the Orange County jail notifies ICE when an undocumented immigrant is in custody for a serious crime, ranging from murder to driving under the influence. In 2016, 391 immigrant inmates in Orange County were reported to ICE.

“These offenders pose a significant risk to our communities and removing them is consistent with the department’s mission to enhance public safety,” Hutchens wrote.

De Leon, however, said jailed immigrants can still be reported to ICE under the bill.

“No one wants dangerous or violent criminals roaming our streets. The California Values Act allows state and local law enforcement to notify Immigration and Customs Enforcement before violent or dangerous criminals are released from incarceration and allows their transfer into federal custody for deportation,” de Leon said in a statement. “But Californians will not squander their precious public safety dollars to separate mothers from their children, to detain DREAMERS, or to deport honest, hardworking people who are so critical to our economy.”

Amendments to the bill allow local agencies to participate in task forces with ICE. However, the agencies must submit semi-annual reports to the state Department of Justice. Hutchens was not satisfied with the amendments.

“I am concerned that such requirements would hinder effectiveness, divert energies from investigative work and compromise the security of personnel who participate in undercover work,” Hutchens wrote.