BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 118
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 118 (Budget Committee)
          As Amended  June 28, 2011
          Majority vote.  Budget Bill Appropriation Takes Effect 
          Immediately
           
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          |ASSEMBLY:  |     |(February 22,   |SENATE: |24-15|(June 28,      |
          |           |     |2011)           |        |     |2011)          |
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                    (vote not relevant)           

           SUMMARY  :  Implements the 2011 Public Safety Realignment, 
          transferring the equivalent of $5,559 million of annual state 
          fiscal responsibilities for public safety programs to counties.  
          This bill also creates the account structure and allocations for 
          some of this funding, and dedicates 1.0625% of existing state 
          sales tax revenue to fund these local costs in 2011-12.

           The Senate amendments  delete the Assembly version of this bill, 
          and instead:

          1)Define public safety programs as local responsibilities.  
            These programs are:

             a)   Employing and training public safety officials, public 
               defenders, and court security staff;

             b)   Managing local jails housing, treatment, 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; and,

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









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          2)Dedicate 1.0625% of the existing state sales and use tax to 
            pay for the local public safety costs.  In 2011-12, this 
            percent is projected to yield $5,105.7 million in revenue for 
            local realignment costs.

          3)Establish the Local Revenue Fund 2011 that will receive the 
            dedicated sales and use tax and Vehicle License Fee (VLF) 
            revenues through a continuous appropriation.  This includes 
            establishing the fund account structure for the public safety 
            realignment. The accounts are:

             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 Subaccount, the Adopts Subaccount, the 
               Adoptions Assistance Subaccount, the Child Abuse Prevention 
               and Treatment Subaccount, the Woman and Children's 
               Residential Treatment Services, the Drug Court Subaccount, 
               and the Drug Medi-Cal Subaccount; and,

             h)   Reserve Account.

          4)Require local county treasurers to create a parallel account 
            structure.

          5)Allocate the anticipated $5,559 million of revenue between the 
            various accounts, and subaccounts.

          6)Specify allocation methodology or the process for establishing 
            the allocation of funding for the various accounts and 
            subaccounts to counties. 









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          7)Modify 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.  SB 94 (Budget and Fiscal 
            Review Committee), 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.

          8)Convert 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.

          9)Create a Community Corrections Grant Program for the purposes 
            of funding AB 109 (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.

          10)State that 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.

          11)Dedicate funding provided to the 1991 Mental Health 
            Subaccount to the 1991 Social Services Account for the 
            purposes of paying an additional share of the California Work 
            Opportunities and Responsibilities to Kids (CalWORKs) grant 
            costs.  The local mental health program costs supported by the 
            funds that are transferred will be instead be supported by 
            revenue provided by the Mental Health Account created by this 
            bill.

          12)Add an appropriation allowing this bill to take effect 
            immediately upon enactment.

           COMMENT  :  This bill provides the statutory framework, allocation 
          methodology, and most of the dedicated revenue to implement the 
          Governor's Public Safety Realignment.  When combined with 
          companion measure SB 89/AB 108, this bill provides local funding 








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          for $5,559 million of public safety responsibilities that would 
          shift to counties.  By 2014-15, this dedicated revenue is 
          expected to grow to $6.8 billion, allowing for over $1 billion 
          of potential funding for program growth.

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

           Analysis Prepared by  :    Christian Griffith / BUDGET / (916) 
          319-2099


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