BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 118|
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                                 THIRD READING


          Bill No:  AB 118
          Author:   Assembly Budget Committee
          Amended:  6/28/11 in Senate
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT


           SUBJECT  :    Budget Act of 2011:  Public Safety Realignment

           SOURCE  :     Author


           DIGEST  :    This bill provides the statutory framework, 
          allocation methodology, and the majority of the dedicated 
          revenue to implement the Governors Public Safety 
          Realignment.  This bill and SB 89/AB 108 provide funding of 
          $5.6 billion to support local public safety 
          responsibilities being realigned from the state to local 
          governments.  By 2014-15, this dedicated revenue is 
          expected to grow to $6.8 billion, allowing for over $1 
          billion in potential funding to support these programs and 
          commensurate county costs.

          NOTE:  According to the Administration, the allocations 
          stipulated in this bill were developed in consultation with 
          the California State Association of Counties.

           Senate Floor Amendments  of 6/28/11 delete the prior version 
          of the bill expressing the intent of the Legislature to 
          enact statutory changes relating to the 2011 Budget Act and 
          place current language relevant to the public safety 
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          realignment into it.

           ANALYSIS  :    This bill implements the 2011 Public Safety 
          Realignment, which transfers $5.6 billion in state fiscal 
          responsibilities for public safety programs to local 
          governments.  This bill also creates the account structure 
          and allocations for some of this funding and redefines 
          1.0625 of the state sales and use tax as a local sales and 
          use tax to support $5.1 billion of the realignment for the 
          2011-12 fiscal year.  Specifically, this bill does the 
          following:

          1. Defines public safety services to be realigned from the 
             state to local governments as follows:

             A.    Employing public safety officials, prosecutors, 
                public defenders, and court security staff.

             B.    Managing local jails, housing and treating 
                youthful offenders, and providing services for, and 
                overseeing the supervised release of, offenders.

             C.    Preventing child abuse, providing services to 
                children who are abused, neglected, or exploited, 
                providing services to vulnerable children and their 
                families and providing adult protective services.

             D.    Providing mental health services to children and 
                adults in order to reduce the failure in school, harm 
                to themselves and others, homelessness, and 
                preventable incarceration.

             E.    Preventing, treating, and providing recovery 
                services for alcohol and drug abuse.

          2. Dedicates 1.0625 percent of the sales and use tax to the 
             Local Revenue Fund 2011, a continuously appropriated 
             fund, to be used exclusively for public safety services 
             realigned from the state to local governments.  In 
             2011-12, this percent is projected to generate $5.1 
             billion to support public safety realignment.

          3. Creates a Local Revenue Fund 2011 in the State Treasury 
             that will receive revenues from 1.0625 percent of the 

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             sales and use tax and from vehicle license fee revenues 
             redirected from the Department of Motor Vehicles, 
             cities, and Orange County, and other moneys that may be 
             appropriated to this fund.  Funds deposited in this 
             account shall be continuously appropriated.  This bill 
             also creates the following subaccounts within the Local 
             Revenue Fund 2011:

             A.    Trial Court Security Account.

             B.    Local Community Corrections Account.

             C.    Local Law Enforcement Services Account.

             D.    Mental Health Account.

             E.    District Attorney and Public Defender Account.

             F.    Juvenile Justice Account, including the Youthful 
                Offender Block Grant Subaccount and the Juvenile 
                Reentry Grant Subaccount.

             G.    Health and Human Services Account, including the 
                Adult Protective Services Subaccount, the Foster Care 
                Subaccount, the Child Welfare Services Subaccount, 
                the Adoptions Subaccount, the Adoption Assistance 
                Program Subaccount, the Child Abuse Prevention 
                Subaccount, the Women and Children's Residential 
                Treatment Services Subaccount, the Drug Court 
                Subaccount, the Non Drug Medi-Cal Substance Abuse 
                Treatment Services Subaccount, and the Drug Medi-Cal 
                Subaccount.

             Funds deposited in the Local Revenue Fund 2011 shall be 
             used exclusively for public safety services and shall be 
             available to reimburse the General Fund for moneys that 
             are advanced to the Local Revenue Fund 2011.  The funds 
             in the Local Revenue Fund 2011 shall also be available 
             to pay the state costs incurred resulting from phasing 
             in the implementation of AB 109 (Assembly Budget 
             Committee), Chapter 15, Statutes of 2011.

          4. Requires each appropriate local government entity to 
             create a County Local Revenue Fund 2011.  Within the 

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             County Local Revenue Fund 2011 the appropriate local 
             government entity shall create the following accounts:

             A.    Local Community Corrections Account

             B.    Trial Court Security Account

             C.    District Attorney and Public Defender Account

             D.    Juvenile Justice Account

             E.    Health and Human Services Account

             F.    Supplemental Law Enforcement Account

             The moneys in the County Local Revenue Fund shall be 
             used exclusively for public safety services.  The money 
             in the accounts and the various subaccounts is 
             restricted for specific purposes as defined in this 
             bill.

          5. Creates a Community Corrections Grant Program for the 
             purposes of funding AB 109 (Assembly Budget Committee), 
             Chapter 15, Statutes of 2011 as of October 1, 2011.  The 
             moneys in the Local Community Corrections Account within 
             the Local Revenue Fund 2011 shall be used to fund the 
             grant program.

          6. Any costs determined to be mandates by the Commission on 
             State Mandates must be first paid for out of the County 
             Local Revenue Fund 2011 to the fullest extent possible.

          7. Allocates realignment funds deposited in the Local Law 
             Enforcement Services Account consistent with how vehicle 
             license fee (VLF) local public safety programs were 
             funded in 2010-11 when programs were supported from the 
             proceeds of the 0.15 of the VLF, excluding the Vertical 
             Prosecution Grant Program.  

          8. Allocates the anticipated revenues from the sales and 
             use tax ($5.1 billion) to the Local Revenue Fund 2011.  
             Allocates the anticipated revenues from the vehicle 
             license fee to the Local Law Enforcement Services 
             Account.  However, also specifies that no more than 

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             $489.9 million shall be allocated out of the Local Law 
             Enforcement Services Account for the 2011-12 fiscal 
             year.

          9. Specifies the timing of the allocation of funds to each 
             account and the allocation among counties.  Also states 
             that it is the intention that allocations for many 
             accounts including the Local Law Enforcement Services 
             Account, the Juvenile Justice Account, and the Health 
             and Human Services Account be allocated in the same 
             manner as funding for these programs would have been 
             allocated in the 2011-12 fiscal year if not for the 
             passage of the realignment act.

          10.Modifies the Community Oriented Policing Services and 
             Juvenile Justice Crime Prevention Act funding to ensure 
             that allocations continue consistent with current law, 
             but are payable from the Local Law Enforcement Services 
             Account within the Local Revenue Fund 2011.  Also makes 
             technical adjustments to ensure a mechanism for 
             providing full funding for this program in the 2010-11 
             fiscal year.  Chapter 21, Statutes of 2011, temporarily 
             reduced VLF revenue while final decisions were made on 
             whether to maintain existing rates prior to July 1, 
             2011.

          11.Converts existing court security fee to a fee to assist 
             in funding court operations.  These funds are deposited 
             in the Trial Court Trust Fund and will continue to 
             support court operations.  The full funding required to 
             support costs associated with sheriffs providing court 
             security in the trial courts is being realigned to the 
             counties in this bill so this fee revenue is no longer 
             needed for that purpose.

          12.Dedicates funding provided to the 1991 Mental Health 
             Subaccount to the 1991 Social Services Account for the 
             purposes of paying an additional share of California 
             Work Opportunity and Responsibility to Kids grant costs. 
              The local mental health program costs would be 
             supported by 2011 Realignment funds deposited in the 
             Mental Health Account created by this bill.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes   

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          Local:  Yes


          DLW:kc  6/28/11   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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