BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 1480|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 1480
          Author:   Assembly Budget Committee 
          Amended:  6/25/12 in Senate
          Vote:     21

           
           SENATE BUDGET & FISCAL REVIEW COMMITTEE  :  10-2, 6/25/12
          AYES:  Leno, Alquist, DeSaulnier, Hancock, Liu, Lowenthal, 
            Negrete McLeod, Simitian, Wolk, Wright
          NOES:  Anderson, La Malfa
          NO VOTE RECORDED:  Emmerson, Evans, Fuller, Gaines

           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    Public Safety Realignment Budget Trailer Bill

           SOURCE  :     Author


           DIGEST  :    This bill provides an overall financing 
          structure for the 2011 Public Safety Realignment.  The 
          funding structure includes the creation of accounts and 
          rules that govern the flexibility of counties to transfer 
          monies between accounts.  This bill also directs the 
          allocation of funding among accounts, including the 
          allocation of growth funding.

           ANALYSIS  :    AB 118 (Assembly Budget Committee), Chapter 
          40, Statutes of 2011, enacted 2011 Public Safety 
          Realignment that transferred approximately $5.6 billion in 
          state fiscal responsibilities for public safety programs 
          from the state to local governments.  This realignment also 
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          designated 1.0625 of a state special fund sales and use tax 
          to support $5.1 billion of the realignment starting in the 
          2011-12 fiscal year and redirected $453.4 million in 
          vehicle license fee revenues in SB 89 (Senate Budget 
          Committee), Chapter 35, Statutes of 2011, from the state to 
          local governments to specifically support local law 
          enforcement programs previously funded by the state.  The 
          Schools and Local Public Safety Protection Act of 2012 is a 
          proposed constitutional amendment that is qualified for the 
          November 6, 2012 general election that will 
          constitutionally protect the revenues transferred to local 
          governments as part of the enactment of 2011 Public Safety 
          Realignment.  This constitutional amendment, among other 
          things, also provides various protections for the state and 
          counties and guidance related to cost sharing of future 
          changes to federal entitlement programs realigned to the 
          counties.  

          AB 118 which provided the framework for the 2011 
          Realignment provided for a temporary financing structure 
          for the 2011-12 fiscal year only.  AB 1480 enacts a 
          permanent financing structure for the 2011 Realignment, 
          including account structures, funding allocations among 
          accounts and counties, allocations of available growth 
          funding, and various other issues.  Specifically, this bill 
          does the following:

          1.  Creates Account Structure in the State Treasury  .  This 
             bill amends the current account structure created in the 
             Local Revenue Fund 2011 within the State Treasury and 
             directs the transfer of all remaining funds in the 
             original funds to designated successor funds.  
             Specifically, this bill abolishes all of the original 
             accounts in the Local Revenue Fund 2011 except for the 
             Mental Health Account.  This bill also creates and 
             designates permanent successor accounts.  It creates 
             three main accounts within the Local Revenue Fund - the 
             Support Services Account, the Law Enforcement Services 
             Account, and the Sales and Use Tax Growth Account. 

             The Support Services Account includes the Protective 
             Services Subaccount and Behavioral Health Subaccount and 
             this bill directs the deposit of funds from the original 
             subaccounts into the new subaccounts and special 

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             accounts as follows:


              ------------------------------------------------------- 
             |      Original Subaccount      | Successor Subaccount  |
             |-------------------------------+-----------------------|
             |Adult Protective Services      |Protective Services    |
             |Subaccount                     |   Subaccount          |
             |-------------------------------+-----------------------|
             |Foster Care Assistance         |                       |
             |   Subaccount                  |                       |
             |-------------------------------+-----------------------|
             |Foster Care Administration     |                       |
             |   Subaccount                  |                       |
             |-------------------------------+-----------------------|
             |Child Welfare Services         |                       |
             |   Subaccount                  |                       |
             |-------------------------------+-----------------------|
             |Adoptions Subaccount           |                       |
             |-------------------------------+-----------------------|
             |Adoption Assistance Program    |                       |
             |   Subaccount                  |                       |
             |-------------------------------+-----------------------|
             |Child Abuse Prevention         |                       |
             |   Subaccount                  |                       |
              ------------------------------------------------------- 


              ------------------------------------------------------- 
             |      Original Subaccount      | Successor Subaccount  |
             |-------------------------------+-----------------------|
             |Drug Court Subaccount          |Behavioral Health      |
             |                               |   Subaccount          |
             |-------------------------------+-----------------------|
             |Nondrug Medi-Cal Substance     |                       |
             |Abuse Treatment Services       |                       |
             |Subaccount                     |                       |
             |-------------------------------+-----------------------|
             |Drug Medi-Cal Subaccount       |                       |
             |-------------------------------+-----------------------|
             |Women and Children's           |Women's and Children's |
             |Residential Treatment Services |Residential Treatment  |
             |Subaccount                     |Services Special       |
             |                               |Account                |

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             |                               |                       |
              ------------------------------------------------------- 

             The successor Women's and Children's Residential 
             Treatment Services Special Account is created as a 
             special account within the Behavioral Health Subaccount. 
              The Support Services Account also includes the creation 
             of a new County Intervention Support Services 
             Subaccount.

             The Law Enforcement Services Account has the following 
             Subaccounts and this bill directs the deposit of funds 
             from the original funds into the new subaccounts and 
             special accounts as follows:


              -------------------------------------------------------- 
             |         Original Fund         |  Successor Subaccount  |
             |-------------------------------+------------------------|
             |Trial Court Security Account   |Trial Court Security    |
             |                               |Subaccount              |
             |-------------------------------+------------------------|
             |Local Community Corrections    |Community Corrections   |
             |Account                        |Subaccount              |
             |-------------------------------+------------------------|
             |Local Law Enforcement Services |Enhancing Law           |
             |Account                        |Enforcement Activities  |
             |                               |Subaccount              |
             |-------------------------------+------------------------|
             |District Attorney and Public   |District Attorney and   |
             |Defender Account               |Public Defender         |
             |                               |Subaccount              |
             |-------------------------------+------------------------|
             |Juvenile Justice Account       |Juvenile Justice        |
             |                               |Subaccount              |
             |-------------------------------+------------------------|
             |Youthful Offender Block Grant  |Youthful Offender Block |
             |Subaccount                     |Grant Special Account   |
             |-------------------------------+------------------------|
             |Juvenile Reentry Grant         |Juvenile Reentry Grant  |
             |Subaccount                     |Special Account         |
             |                               |                        |
              -------------------------------------------------------- 


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             The successor Youthful Offender Block Grant Special 
             Account and Juvenile Reentry Grant Special Account are 
             both created as special accounts within the Juvenile 
             Justice Subaccount.  The Vehicle License Fee revenues 
             dedicated to 2011 Realignment by SB 89 (Senate Budget 
             Committee), Chapter 35, Statutes of 2011, are deposited 
             directly in the Enhancing Law Enforcement Activities 
             Subaccount.

             This bill creates the Sales and Use Tax Growth Account 
             in the Local Revenue Fund 2011.  Within this Account is 
             created the Support Services Growth Subaccount and the 
             Law Enforcement Services Growth Subaccount.  The Support 
             Services Growth Subaccount contains two special 
             accounts, the Protective Services Growth Special Account 
             and the Behavioral Health Services Growth Special 
             Account.  The Law Enforcement Services Growth Subaccount 
             contains four special accounts, as follows - Trial Court 
             Security Growth Special Account, Community Corrections 
             Growth Special Account, District Attorney and Public 
             Defender Growth Special Account and Juvenile Justice 
             Growth Special Account.

             There is also created in the Enhancing Law Enforcement 
             Activities Subaccount an Enhancing Law Enforcement 
             Growth Special Account where any vehicle license fee 
             revenues allocated by SB 89 (Senate Budget Committee), 
             Chapter 35, Statues of 2011, are deposited above $489.9 
             million.

             As of September 15, 2012, all of the funds in the 
             original funds and subaccounts are transferred to the 
             successor subaccounts and special account.

          2.  Directs Creation of County Account Structure  .  This bill 
             directs the county treasurer to amend the current 
             account structure created in the County Local Revenue 
             Fund 2011.  The account structure largely mirrors the 
             subaccount and special account structure at the state 
             level, but does not direct the creation of the County 
             Intervention Support Services Subaccount.  This bill 
             also directs the creation of a Support Services Reserve 
             Subaccount in the Support Services Account.


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             The bill also directs the creation of a Contract Special 
             Account within the Protective Services Subaccount for a 
             designated county to support funding of multi-county or 
             statewide contracts.  The bill also directs the creation 
             of a Local Innovation Subaccount within the Law 
             Enforcement Services Account in 2015-16.  Starting in 
             2015-16, the funds deposited in this account will be 
             able to be used more flexibly for eligible public safety 
             related activities.

             This bill requires only the counties of Alameda, Los 
             Angeles, Marin, San Diego, San Francisco, and San 
             Joaquin to create County Women and Children's 
             Residential Treatment Services Special Accounts within 
             their Behavioral Health Subaccount.

             As of September 15, 2012, all of the funds in the county 
             original funds and subaccounts are transferred to the 
             county successor subaccounts and special accounts and 
             the original funds and on September 30, 2012, the 
             2011-12 subaccounts are abolished.  The accounts mirror 
             those created in the state treasury with the 
             aforementioned exceptions.

          3.  Transferability Between Subaccounts in Support Services 
             Account  .  This bill authorizes the counties to allocate 
             up to 10% between subaccounts in the Support Services 
             Account.  The 10% is based on the amount deposited in 
             the subaccount in the previous year with the lowest 
             balance.  The authorization to make this transfer must 
             occur in a regularly scheduled public hearing of the 
             board of supervisors and must be based on the most cost 
             effective use of available resources to maximize client 
             outcomes.  Any reallocations made shall only be in 
             effect for the fiscal year in which the allocation was 
             made and shall not be considered a permanent funding 
             allocation or a permanent funding source for any program 
             or service receiving the reallocation.  These transfers 
             must be documented annually to the State Controller and 
             reported to the Legislature.  This bill allows counties 
             authorized to operate an integrated and comprehensive 
             county health and human services system to not withstand 
             the transferability rules set up in this bill.


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          4.  Use of Support Services Reserve Account  .  This bill 
             authorizes a county's board of supervisors to reallocate 
             funds from the Protective Services Subaccount or 
             Behavioral Health Subaccount, or both to the Support 
             Services Reserve Subaccount.  The amount of these 
             transfers may not exceed 5% of the total funds allocated 
             to the Protective Services Subaccount or Behavioral 
             Health Subaccount in the State Treasury (excludes 
             growth).  The authorization to make allocations to the 
             Support Services Reserve Account must occur in a 
             regularly scheduled public hearing of the board of 
             supervisors.  The allocations to the reserve accounts 
             must be documented annually to the State Controller and 
             reported to the Legislature.

          5.  Specifies Eligible Uses for Funds Deposited in 2011 
             Realignment Subaccounts and Special Accounts  .  This bill 
             requires that all funds deposited in the County Local 
             Revenue Fund 2011 be used exclusively for public safety 
             services, as defined by this bill and Article XIII of 
             the Constitution as proposed in The Schools and Local 
             Public Safety Protection Act of 2012.  Existing law 
             restricts the expenditure of funds deposited in the 
             original funds and accounts created for 2011 
             Realignment.  This bill updates those accounts to the 
             new successor subaccounts and special accounts and 
             subjects these updated subaccounts and special accounts 
             to the same restrictions, including funding in the 
             various growth special accounts.

             In addition, this bill adds planning, implementation and 
             training costs for revocation proceedings as an eligible 
             use of funds deposited in the District Attorney and 
             Public Defender Subaccount and associated growth special 
             account.

             This bill also specifies that funding in the Enhancing 
             Law Enforcement Activities Subaccount and associated 
             growth special account shall be used to provide grants 
             and funding to local law enforcement as provided by 
             statute.

             This bill also specifies that funds deposited in the 
             Local Innovation Subaccount within the Law Enforcement 

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             Services Account shall be used to fund local needs, 
             which include any eligible expenditure in the Juvenile 
             Justice Subaccount, the District Attorney and Public 
             Defender Subaccount, the Community Corrections 
             Subaccount, and the Trial Court Security Subaccount.

             This bill defines that the counties have 100% of the 
             nonfederal share of costs of programs that are part of 
             2011 Realignment.  These costs shall be covered by funds 
             deposited in the Local Revenue Fund 2011.  Also 
             specifies that funds shall be expended in a manner that 
             maintains eligibility for federal funding.

             This bill adds Medi-Cal specialty health services, 
             including the Early and Periodic Screening, Diagnosis, 
             and Treatment Program and mental health managed care to 
             the list of programs funded from within 2011 
             Realignment.  These programs were funded outside of  
             2011 Realignment in 2011-12.

             This bill directs the expenditure of any residual funds 
             remaining in the Reserve Account and Undistributed 
             Account of the Local Revenue Fund 2011 to fund 
             entitlements for the 2011-12 fiscal year.  After these 
             accounts are liquidated they are abolished on January 1, 
             2013. 

          6.  Community Corrections Grant Program  .  This bill 
             specifies that the monies in the Community Corrections 
             Subaccount and the Community Corrections Growth Special 
             Account constitute funding for the Community Corrections 
             Grant Program established by AB 109 (Assembly Budget 
             Committee), Chapter 15, Statutes of 2011. 

          7.  Defines 2011 Realignment Legislation  .  This bill defines 
             "2011 Realignment Legislation" as legislation entitled 
             2011 Realignment and provides for the assignment to 
             local agencies responsibilities for public safety 
             services.  This legislation must be enacted by September 
             30, 2012.  Furthermore, this bill also provides that no 
             new program may be assigned to local agencies after 
             January 1, 2012, except for the Early and Periodic 
             Screening, Diagnosis, and Treatment program and mental 
             health managed care.  This statutory framework is 

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             provided until Article XIII of the Constitution is added 
             per The Schools and Public Safety Protection Act of 2012 
             on the November 6, 2012 statewide general election.

          8.  Mandate Protection for State  .  This bill provides 
             statutory guidance directing that any mandate of a new 
             program or higher level of service on a local agency 
             imposed by 2011 Realignment Legislation shall be paid 
             from the from funding provided in the Local Revenue Fund 
             2011.  This statutory framework is provided until 
             Article XIII of the Constitution is added per The 
             Schools and Public Safety Protection Act of 2012 on the 
             November 6, 2012 statewide general election.

          9.  County Protection against New State Imposed Costs for 
             Realigned Programs  .  This bill provides that any 
             legislation enacted after September 30, 2012, that has 
             the overall effect of increasing the costs for programs 
             or levels of service mandated by the 2011 Realignment 
             Legislation shall apply to local agencies only to the 
             extent that the State provides annual funding for the 
             cost increase.  This bill also provides that any 
             regulations, executive orders, or administrative 
             directives, implemented after October 9, 2011, that are 
             not necessary to implement 2011 Realignment and have the 
             overall effect of increasing the costs for programs or 
             levels of service mandated in 2011 Realignment shall 
             apply to local agencies only to the extent that he state 
             provides annually funding for the cost increase.  This 
             bill also limits the state from submitting to the 
             federal government any plans or waivers, or amendments 
             to those plans or waivers that have an overall effect of 
             increasing the cost by a local agency for programs or 
             levels of service mandated by 2011 Realignment except in 
             specified circumstances.  

             This bill clarifies that that the state is not required 
             to provide funds for a mandate that is imposed by the 
             state at the request of a local agency or to comply with 
             federal law.  This bill also makes it clear that any new 
             mandates imposed by the state shall not be funded from 
             2011 Realignment, ad valorem property tax, or 1991 
             Realignment.  This bill also clarifies that it is a 
             county option to provide a new program or a higher level 

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             of service, but it does not require a subvention of 
             funds from the state.

          10.   Cost Sharing Provisions for Unanticipated New Program 
             Costs  .  The 2011 Realignment includes realignment of 
             programs and funding for federal entitlement programs.  
             This bill provides that the state shall provide at least 
             50% of the nonfederal share of costs of changes in 
             federal statutes or regulations that alter the 
             conditions under which federal matching funds are 
             obtained.

             For the federal entitlement programs that are part of 
             2011 Realignment, this bill also requires the state to 
             pay for 50% on the nonfederal share of costs related to 
             federal, judicial or administrative orders that impose a 
             cost in the form of a monetary penalty.  Payment is not 
             required if the state determines that the settlement or 
             order relates to one or more local agencies failing to 
             perform a legal obligation in good faith.  This bill 
             states that judicial complaints related to a state or 
             local agency's failure to perform under 2011 Realignment 
             shall have priority over all other civil matters in 
             state judicial proceedings.

          11.  Conditions of Expenditure of 2011 Realignment Funds  .  
             This bill directs that funds deposited in the County 
             Local Revenue Fund 2011 be spent in a manner designed to 
             maximize the state's eligibility for federal matching 
             funds and ensure compliance with applicable federal 
             standards governing the provision of services included 
             in 2011 Realignment.

             Funds deposited in the County Local Revenue Fund 2011 
             may not be used by local agencies to supplant other 
             funding for public safety services.

          12.  Public Notification of Reductions to Optional and 
             Discretionary Programs  .  This bill requires that 
             significant reductions ("significant" defined as 10% in 
             one year or 25% over the previous three years) made to 
             optional or discretionary behavioral health, adult 
             protective services, and child welfare services programs 
             that are part of 2011 Realignment must be made in an 

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             open session of a duly noticed meeting of the board of 
             supervisors.

          13.  Share of Costs Definition  .  This bill specifies that for 
             the programs realigned as part of 2011 Realignment the 
             state shall not have a share of costs.  The funding 
             provided is specifically intended to be in an amount 
             sufficient to fund the cost of the state mandates.  This 
             bill requires that the county first exhaust funding 
             provided in 2011 Realignment and then 1991 Realignment 
             for any state mandated costs related to 2011 
             Realignment.  This statutory framework is provided until 
             Article XIII of the Constitution is added per The 
             Schools and Public Safety Protection Act of 2012 on the 
             November 6, 2012 statewide general election.

             This bill also specifies that that state does not have a 
             share of costs for programs described in 2011 
             Realignment that were originally funded by 1991 
             Realignment.  This provision shall become operative if 
             Article XIII of the Constitution is added per The 
             Schools and Public Safety Protection Act of 2012 on the 
             November 6, 2012 statewide general election.

          14.  Reporting by the State Controller  .  The State Controller 
             is required to post monthly the amounts received by the 
             Local Revenue Fund 2011.  The State Controller shall 
             also post the amounts allocated to every account, 
             subaccount and special account within the Local Revenue 
             Fund 2011.  Annually, the State Controller shall provide 
             detailed information as to the source of the funding 
             deposited in each account, subaccount and special 
             account.  Also, the State Controller is required to 
             report the highest amount ever allocated to the 
             subaccounts in the Local Revenue Fund 2011 and how much 
             growth funding may need to be provided as restoration in 
             a future fiscal year to achieve that level.  Annually, 
             the State Controller shall post a detailed report on how 
             much each county, city and city and county received in 
             each subaccount.

          15.  Clarifications on Entitlement Programs  .  This bill 
             clarifies that nothing in 2011 Realignment impacts in 
             any way the rights provided by federal entitlement 

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             programs.  This bill also specifies that counties shall 
             fund Medi-Cal Specialty Mental Health Services, 
             including Early and Periodic Screening, Diagnosis and 
             Treatment from monies received from the Behavioral 
             Health Subaccount and the Behavioral Health Growth 
             Special Account.  Funding for this program shall also 
             come from 1991 Realignment funds and to the extent 
             permissible under the Mental Health Services Act, the 
             Mental Health Services Fund.  This bill requires that 
             the provision of services for these mental health 
             programs be based on the requirement of law.

          16.  Technical Amendments to 2011-12 Funding Allocations  .  
             This bill makes technical amendments to the 2011-12 
             funding allocations for 2011 Realignment.  Mainly these 
             amendments clarify that cash for any given fiscal year 
             include cash received until August 15, 2012, to account 
             for the timing of sales tax revenues.

          17.  Makes 2012-13 Funding Allocations  .  This bill makes 
             funding allocations to the accounts and subaccounts 
             within the Local Revenue Fund 2011 for the 2012-13 
             fiscal year.  The first allocations made from the Local 
             Revenue Fund 2011 are as follows:

                                 (in Millions)

              -------------------------------------------------------- 
             |           Account            |         Amount          |
             |------------------------------+-------------------------|
             |Mental Health Account         |$1,120.6                 |
             |                              |                         |
              -------------------------------------------------------- 


              -------------------------------------------------------- 
             |           Account            |         Amount          |
             |------------------------------+-------------------------|
             |Enhancing Law Enforcement     |$489.9 from Vehicle      |
             |Activities                    |License Fee (VLF)        |
             |                              |revenues and if VLF      |
             |                              |revenues are not enough  |
             |                              |to reach this level      |
             |                              |additional funds from    |

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             |                              |sales tax revenues       |
             |                              |deposited in the Local   |
             |                              |Revenue Fund 2011        |
             |------------------------------+-------------------------|
             |Enhancing Law Enforcement     |Any remaining VLF        |
             |Growth Special Account        |revenue above $489.9     |
             |                              |                         |
              -------------------------------------------------------- 

             After the above allocations are made the remaining funds 
             deposited in the Local Revenue Fund 2011 are allocated 
             as follows for the 2012-13 fiscal year:

                                 (in Millions)

              -------------------------------------------------------- 
             |           Account            |         Amount          |
             |------------------------------+-------------------------|
             |Support Services Account      |64.1975% or up to        |
             |                              |   $2,604.9              |
             |------------------------------+-------------------------|
             |Law Enforcement Services      |35.8025% or up to        |
             |   Account                    |$1,452.7                 |
             |                              |                         |
              -------------------------------------------------------- 

             The following allocations are then made from the 
             accounts above to the following subaccounts for the 
             2012-13 fiscal year:

                                 (in Millions)

              -------------------------------------------------------- 
             |   Support Services Account   |         Amount          |
             |------------------------------+-------------------------|
             |Behavioral Health Subaccount  |37.0264% or up to $964.5 |
             |------------------------------+-------------------------|
             |Protective Services           |62.9736% or up to        |
             |   Subaccount                 |$1,640.4                 |
             |                              |                         |
              -------------------------------------------------------- 


              -------------------------------------------------------- 

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             |   Law Enforcement Services   |         Amount          |
             |             Account          |                         |
             |------------------------------+-------------------------|
             |Trial Court Security          |34.1721% or up to $496.4 |
             |   Subaccount                 |                         |
             |------------------------------+-------------------------|
             |Community Corrections         |58.0217% or up to $842.9 |
             |   Subaccount                 |                         |
             |------------------------------+-------------------------|
             |District Attorney and Public  |1.0050% or up to $14.6   |
             |Defender Subaccount           |                         |
             |------------------------------+-------------------------|
             |Juvenile Justice Subaccount   |6.8012% or up to         |
             |                              |$98.8                    |
             |                              |                         |
              -------------------------------------------------------- 

             From the Behavioral Health Subaccount an amount of $5.1 
             million is allocated to the Women and Children's 
             Residential Treatment Services Special Account.

          18.  Makes 2013-14 Funding Allocations  .  This bill makes 
             funding allocations to the accounts and subaccounts 
             within the Local Revenue Fund 2011 for the 2013-14 
             fiscal year.  The first allocations made from the Local 
             Revenue Fund 2011 are as follows:

                                 (in Millions)

              -------------------------------------------------------- 
             |           Account            |         Amount          |
             |------------------------------+-------------------------|
             |Mental Health Account         |$1,120.6                 |
             |                              |                         |
              -------------------------------------------------------- 


              -------------------------------------------------------- 
             |           Account            |         Amount          |
             |------------------------------+-------------------------|
             |Enhancing Law Enforcement     |$489.9 from Vehicle      |
             |   Activities                 |   License Fee (VLF)     |
             |                              |   revenues and if VLF   |
             |                              |   revenues are not      |

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             |                              |   enough to reach this  |
             |                              |   level additional      |
             |                              |   funds from sales tax  |
             |                              |   revenues deposited in |
             |                              |   the Local Revenue     |
             |                              |   Fund 2011             |
             |------------------------------+-------------------------|
             |Enhancing Law Enforcement     |Any remaining VLF        |
             |   Growth Special Account     |revenue above $489.9     |
             |                              |                         |
              -------------------------------------------------------- 

             After the above allocations are made the remaining funds 
             deposited in the Local Revenue Fund 2011 are allocated 
             as follows for the 2013-14 fiscal year:
                                 (in Millions)

              -------------------------------------------------------- 
             |           Account            |         Amount          |
             |------------------------------+-------------------------|
             |Support Services Account      |2012-13 amount + $20.4 + |
             |                              |                         |
             |                              |2012-13 Growth           |
             |------------------------------+-------------------------|
             |Law Enforcement Services      |2012-13 amount + $158.5  |
             |   Account                    |+                        |
             |                              |2012-13 Growth for Trial |
             |                              |Court Security           |
             |                              |Subaccount and Juvenile  |
             |                              |Justice Subaccount only  |
             |                              |                         |
              -------------------------------------------------------- 

             The following allocations are then made from the 
             accounts above to the following subaccounts for the 
             2013-14 fiscal year:

                                 (in Millions)

              -------------------------------------------------------- 
             |   Support Services Account   |         Amount          |
             |------------------------------+-------------------------|
             |Behavioral Health Subaccount  |36.7391% or up to        |
             |                              |2012-13 amount + 2012-13 |

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             |                              |Growth                   |
             |------------------------------+-------------------------|
             |Protective Services           |63.2609% or up to        |
             |   Subaccount                 |2012-13 amount + $20.4 + |
             |                              |2012-13 Growth           |
             |                              |                         |
              -------------------------------------------------------- 


              -------------------------------------------------------- 
             |   Law Enforcement Services   |         Amount          |
             |             Account          |                         |
             |------------------------------+-------------------------|
             |Trial Court Security          |30.8105% or up to        |
             |   Subaccount                 |2012-13 amount + 2012-13 |
             |                              |Growth                   |
             |------------------------------+-------------------------|
             |Community Corrections         |61.9960% or up to $998.9 |
             |   Subaccount                 |                         |
             |------------------------------+-------------------------|
             |District Attorney and Public  |1.0613% or up to $17.1   |
             |Defender Subaccount           |                         |
             |------------------------------+-------------------------|
             |Juvenile Justice Subaccount   |6.1322% or up to 2012-13 |
             |                              |amount + 2012-13 Growth  |
             |                              |                         |
              -------------------------------------------------------- 

             From the Behavioral Health Subaccount an amount of $5.1 
             million is allocated to the Women and Children's 
             Residential Treatment Services Special Account.

             The special adjustments made to the Protective Services 
             Subaccount adjust the base funding level for the 
             implementation of AB 12 (Beall), Chapter 559, Statutes 
             of 2010, that provides for supportive transitional 
             services to foster youth until the age of 21.  The 
             adjustments made to the Community Corrections Subaccount 
             and the District Attorney and Public Defender Subaccount 
             are based on caseload adjustments being made according 
             to the implementation of AB 109 (Assembly Budget 
             Committee), Chapter 15, Statutes of 2011.

          19.  Makes 2014-15 Funding Allocations  .  This bill makes 

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                                                               AB 1480
                                                                Page 
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             funding allocations to the accounts and subaccounts 
             within the Local Revenue Fund 2011 for the 2014-15 
             fiscal year.  The first allocations made from the Local 
             Revenue Fund 2011 are as follows:

                                 (in Millions)

              -------------------------------------------------------- 
             |           Account            |         Amount          |
             |------------------------------+-------------------------|
             |Mental Health Account         |$1,120.6                 |
             |                              |                         |
              -------------------------------------------------------- 


              -------------------------------------------------------- 
             |           Account            |         Amount          |
             |------------------------------+-------------------------|
             |Enhancing Law Enforcement     |$489.9 from Vehicle      |
             |   Activities                 |License Fee (VLF)        |
             |                              |revenues and if VLF      |
             |                              |revenues are not enough  |
             |                              |to reach this level      |
             |                              |additional funds from    |
             |                              |sales tax revenues       |
             |                              |deposited in the Local   |
             |                              |Revenue Fund 2011        |
             |------------------------------+-------------------------|
             |Enhancing Law Enforcement     |Any remaining VLF        |
             |Growth Special Account        |revenue above $489.9     |
             |                              |                         |
              -------------------------------------------------------- 

             After the above allocations are made the remaining funds 
             deposited in the Local Revenue Fund 2011 are allocated 
             as follows for the 2014-15 fiscal year:

                                 (in Millions)

              -------------------------------------------------------- 
             |           Account            |         Amount          |
             |------------------------------+-------------------------|
             |Support Services Account      |2013-14 amount + $15.3 + |
             |                              |                         |

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                                                               AB 1480
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             |                              |2013-14 Growth           |
             |------------------------------+-------------------------|
             |Law Enforcement Services      |2013-14 amount - $66.1 + |
             |   Account                    |                         |
             |                              |2013-14 Growth for Trial |
             |                              |Court Security           |
             |                              |Subaccount and Juvenile  |
             |                              |Justice Subaccount only  |
             |                              |                         |
              -------------------------------------------------------- 

             The following allocations are then made from the 
             accounts above to the following subaccounts for the 
             2014-15 fiscal year:

                                 (in Millions)

              -------------------------------------------------------- 
             |   Support Services Account   |         Amount          |
             |------------------------------+-------------------------|
             |Behavioral Health Subaccount  |36.5258% or up to        |
             |                              |2013-14 amount + 2013-14 |
             |                              |Growth                   |
             |------------------------------+-------------------------|
             |Protective Services           |63.4742% or up to        |
             |   Subaccount                 |2013-14 amount + $15.3 + |
             |                              |2013-14 Growth           |
             |                              |                         |
              -------------------------------------------------------- 


              -------------------------------------------------------- 
             |   Law Enforcement Services   |         Amount          |
             |             Account          |                         |
             |------------------------------+-------------------------|
             |Trial Court Security          |32.1286% or up to        |
             |   Subaccount                 |2013-14 amount + 2013-14 |
             |                              |Growth                   |
             |------------------------------+-------------------------|
             |Community Corrections         |60.4543% or up to $934.1 |
             |   Subaccount                 |                         |
             |------------------------------+-------------------------|
             |District Attorney and Public  |1.0226% or up to $15.8   |
             |Defender Subaccount           |                         |

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                                                               AB 1480
                                                                Page 
          19

             |------------------------------+-------------------------|
             |Juvenile Justice Subaccount   |6.3945% or up to 2013-14 |
             |                              |amount + 2013-14 Growth  |
             |                              |                         |
              -------------------------------------------------------- 

             From the Behavioral Health Subaccount an amount of $5.1 
             million is allocated to the Women and Children's 
             Residential Treatment Services Special Account.
             
             The special adjustments made to the Protective Services 
             Subaccount adjust the base funding level for the 
             implementation of AB 12 (Beall), Chapter 559, Statutes 
             of 2010, that provides for supportive transitional 
             services to foster youth until the age of 21.  The 
             adjustments made to the Community Corrections Subaccount 
             and the District Attorney and Public Defender Subaccount 
             are based on caseload adjustments being made as AB 109 
             (Assembly Budget Committee), Chapter 15, Statutes of 
             2011, is implemented.

          20.  Establishes Ongoing Annual Funding Allocation Starting 
             in 2015-16  .  This bill establishes funding allocations 
             to the accounts and subaccounts within the Local Revenue 
             Fund 2011 for the 2015-16 fiscal year and each 
             subsequent year thereafter.  The first allocations made 
             from the Local Revenue Fund 2011 are as follows:

                                 (in Millions)

              -------------------------------------------------------- 
             |           Account            |         Amount          |
             |------------------------------+-------------------------|
             |Mental Health Account         |$1,120.6                 |
             |                              |                         |
              -------------------------------------------------------- 


              -------------------------------------------------------- 
             |           Account            |         Amount          |
             |------------------------------+-------------------------|
             |Enhancing Law Enforcement     |$489.9 from Vehicle      |
             |Activities                    |License Fee (VLF)        |
                                                                            |                              |revenues and if VLF      |

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                                                               AB 1480
                                                                Page 
          20

             |                              |revenues are not enough  |
             |                              |to reach this level      |
             |                              |additional funds from    |
             |                              |sales tax revenues       |
             |                              |deposited in the Local   |
             |                              |Revenue Fund 2011        |
             |------------------------------+-------------------------|
             |Enhancing Law Enforcement     |Any remaining VLF        |
             |Growth Special Account        |revenue above $489.9     |
             |                              |                         |
              -------------------------------------------------------- 

             After the above allocations are made the remaining funds 
             deposited in the Local Revenue Fund 2011 are allocated 
             as follows for the 2015-16 fiscal year and each year 
             subsequent:

                                 (in Millions)

              -------------------------------------------------------- 
             |           Account            |         Amount          |
             |------------------------------+-------------------------|
             |Support Services Account      |Funding + Growth from    |
             |                              |immediately preceding    |
             |                              |fiscal year              |
             |------------------------------+-------------------------|
             |Law Enforcement Services      |Funding + Growth for all |
             |   Account                    |accounts from            |
             |                              |immediately preceding    |
             |                              |fiscal year              |
             |                              |                         |
              -------------------------------------------------------- 

             The following allocations are then made from the 
             accounts above to the following subaccounts for the 
             2014-15 fiscal year and each subsequent fiscal year:  

                                 (in Millions)

              -------------------------------------------------------- 
             |   Support Services Account   |         Amount          |
             |------------------------------+-------------------------|
             |Behavioral Health Subaccount  |Funding + Growth from    |
             |                              |immediately preceding    |

                                                           CONTINUED





                                                               AB 1480
                                                                Page 
          21

             |                              |fiscal year              |
             |------------------------------+-------------------------|
             |Protective Services           |Funding + Growth from    |
             |   Subaccount                 |immediately preceding    |
             |                              |fiscal year              |
             |                              |                         |
              -------------------------------------------------------- 


              -------------------------------------------------------- 
             |   Law Enforcement Services   |         Amount          |
             |             Account          |                         |
             |------------------------------+-------------------------|
             |Trial Court Security          |Funding + Growth from    |
             |   Subaccount                 |immediately preceding    |
             |                              |fiscal year              |
             |------------------------------+-------------------------|
             |Community Corrections         |Funding + Growth from    |
             |   Subaccount                 |immediately preceding    |
             |                              |fiscal year              |
             |------------------------------+-------------------------|
             |District Attorney and Public  |Funding + Growth from    |
             |Defender Subaccount           |immediately preceding    |
             |                              |fiscal year              |
             |------------------------------+-------------------------|
             |Juvenile Justice Subaccount   |Funding + Growth from    |
             |                              |immediately preceding    |
             |                              |fiscal year              |
             |                              |                         |
              -------------------------------------------------------- 

             From the Behavioral Health Subaccount an amount of $5.1 
             million is allocated to the Women and Children's 
             Residential Treatment Services Special Account.
             
             If there are insufficient funds in the Support Services 
             Account or the Law Enforcement Services Account to make 
             the allocations to the subaccounts described above the 
             State Controller shall allocate the funding based on a 
             proportional share that the subaccounts received in the 
             immediately preceding fiscal year.  The Department of 
             Finance (DOF) will annually prepare a schedule that 
             provides the proportional allocations to direct the 
             Controller's allocation if funds are not sufficient to 

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                                                               AB 1480
                                                                Page 
          22

             provide the intended allocations described above. 

          21.  Establishes Allocations for Growth Funding  .  Within the 
             Local Revenue Fund 2011 is the Sales and Use Tax Growth 
             Account.  This Account receives sales and use tax 
             revenue growth above the base allocations described in 
             this bill.  This bill establishes an allocation 
             methodology for these funds to the subaccounts and 
             special accounts within the Sales and Use Tax Growth 
             Account for fiscal years 2012-13, 2013-14, and 2014-15.  
             This bill also specifies a permanent growth allocation 
             methodology starting in 2015-16 for most of the special 
             accounts.

             For the 2012-13 fiscal year, the Growth is allocated to 
             the two subaccounts in the account as follows:


              -------------------------------------------------------- 
             |           Account            |                         |
             |------------------------------+-------------------------|
             |Support Services Growth       |65 percent               |
             |   Subaccount                 |                         |
             |------------------------------+-------------------------|
             |Law Enforcement Services      |35                       |
             |   Subaccount                 |percent                  |
             |                              |                         |
              -------------------------------------------------------- 

             Starting in 2013-14, there is a definition of the amount 
             necessary to provide full base funding and the growth 
             funds are allocated accordingly to provide full base 
             funding in each subaccount.  If there is not enough 
             funding to provide full base funding to the subaccounts, 
             the growth is distributed in the same proportion as the 
             base allocations were made for the 2013-14 fiscal year.  
             If there are additional growth monies after the amount 
             necessary to provide full base funding, these monies 
             will be allocated 65% to the Support Services Growth 
             Subaccount and 35% to the Law Enforcement Services 
             Subaccount.  The amounts necessary to provide full base 
             funding for each of the accounts is defined as follows 
             for the 2013-14 fiscal year:


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                                                               AB 1480
                                                                Page 
          23


              -------------------------------------------------------- 
             |   Support Services Account   |         Amount          |
             |------------------------------+-------------------------|
             |Behavioral Health Subaccount  |Maximum amount allocated |
             |                              |in 2012-13               |
             |------------------------------+-------------------------|
             |Protective Services           |Maximum amount allocated |
             |   Subaccount                 |in 2012-13               |
             |                              |                         |
              -------------------------------------------------------- 


              -------------------------------------------------------- 
             |   Law Enforcement Services   |         Amount          |
             |             Account          |                         |
             |------------------------------+-------------------------|
             |Trial Court Security          |Greater of 2011-12       |
             |   Subaccount                 |amount or 2012-13 amount |
             |                              |+ 2012-13 growth         |
             |------------------------------+-------------------------|
             |Community Corrections         |Maximum amount allocated |
             |   Subaccount                 |in 2012-13               |
             |------------------------------+-------------------------|
             |District Attorney and Public  |Maximum amount allocated |
             |Defender Subaccount           |in 2012-13               |
             |------------------------------+-------------------------|
             |Juvenile Justice Subaccount   |Greater of 2011-12       |
             |                              |amount or 2012-13 amount |
             |                              |+ 2012-13 growth         |
             |                              |                         |
              -------------------------------------------------------- 

             Starting in 2014-15, the definition of the amount 
             necessary to provide full base funding for each 
             subaccount is provided in the table below.  If there is 
             not enough funding to provide full base funding, the 
             growth is distributed in the same proportion as the base 
             allocations were made for the 2014-15 fiscal year.  If 
             full base funding is available for each subaccount then 
             additional growth monies will be allocated 65% to the 
             Support Services Growth Subaccount and 35% to the Law 
             Enforcement Services Subaccount.  The amounts necessary 
             to provide full base funding for each of the accounts is 

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                                                               AB 1480
                                                                Page 
          24

             as follows for the 2014-15 fiscal year:


              -------------------------------------------------------- 
             |   Support Services Account   |         Amount          |
             |------------------------------+-------------------------|
             |Behavioral Health Subaccount  |Greater of the maximum   |
             |                              |amount that could be     |
             |                              |allocated in 2012-13 or  |
             |                              |the largest amounts      |
             |                              |received (base + growth) |
             |                              |in any prior year        |
             |                              |beginning with 2012-13   |
             |------------------------------+-------------------------|
             |Protective Services           |Greater of the maximum   |
             |   Subaccount                 |amount that was          |
             |                              |allocated in 2012-13 or  |
             |                              |the maximum amount that  |
             |                              |was allocated in 2013-14 |
             |                              |                         |
              -------------------------------------------------------- 


              -------------------------------------------------------- 
             |   Law Enforcement Services   |         Amount          |
             |             Account          |                         |
             |------------------------------+-------------------------|
             |Trial Court Security          |Greater of 2011-12       |
             |Subaccount                    |amount or the largest    |
             |                              |amounts received (base + |
             |                              |growth) in any prior     |
             |                              |year beginning with      |
             |                              |2012-13                  |
             |------------------------------+-------------------------|
             |Community Corrections         |Greatest amount          |
             |Subaccount                    |allocated in a single    |
             |                              |year beginning with      |
             |                              |2012-13                  |
             |------------------------------+-------------------------|
             |District Attorney and Public  |Greatest amount          |
             |Defender Subaccount           |allocated in a single    |
             |                              |year beginning with      |
             |                              |2012-13                  |
             |------------------------------+-------------------------|

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                                                               AB 1480
                                                                Page 
          25

             |Juvenile Justice Subaccount   |Greater of 2011-12       |
             |                              |amount or the largest    |
             |                              |amounts received (base + |
             |                              |growth) in any prior     |
             |                              |year beginning with      |
             |                              |2012-13                  |
             |                              |                         |
              -------------------------------------------------------- 

             Starting in 2015-16, and for each subsequent year, after 
             the definition of the amount necessary to provide full 
             base funding for each subaccount is provided in the 
             table below.  If there is not enough funding to provide 
             full base funding, the growth is distributed in the same 
             proportion as the base allocations were made for the 
             2015-16 fiscal year and for each subsequent year.  If 
             there are additional growth monies after the amount 
             necessary to provide full base funding, these monies 
             will be allocated 65% to the Support Services Growth 
             Subaccount and 35% to the Law Enforcement Services 
             Subaccount.  The amounts necessary to provide full base 
             funding for each of the accounts is as follows:


              -------------------------------------------------------- 
             |   Support Services Account   |         Amount          |
             |------------------------------+-------------------------|
             |Behavioral Health Subaccount  |Greater of the maximum   |
             |                              |amount that was          |
             |                              |allocated in 2012-13 or  |
             |                              |the largest amounts      |
             |                              |received (base + growth) |
             |                              |in any prior year        |
             |                              |beginning with 2012-13   |
             |------------------------------+-------------------------|
             |Protective Services           |Greater of the maximum   |
             |   Subaccount                 |amount that was          |
             |                              |allocated in 2012-13,    |
             |                              |the maximum allocated in |
             |                              |2013-14, or the largest  |
             |                              |amounts received (base   |
             |                              |and growth) in any prior |
             |                              |year beginning with      |
             |                              |2012-13                  |

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                                                               AB 1480
                                                                Page 
          26

             |                              |                         |
              -------------------------------------------------------- 


              -------------------------------------------------------- 
             |   Law Enforcement Services   |         Amount          |
             |             Account          |                         |
             |------------------------------+-------------------------|
             |Trial Court Security          |Greater of 2011-12       |
             |Subaccount                    |amount or the largest    |
             |                              |amounts received (base + |
             |                              |growth) in any prior     |
             |                              |year beginning with      |
             |                              |2012-13                  |
             |------------------------------+-------------------------|
             |Community Corrections         |Greater amount (base +   |
             |Subaccount                    |growth) in a single year |
             |                              |beginning with 2014-15   |
             |                              |or highest amount        |
             |                              |authorized to receive in |
             |                              |any single fiscal year   |
             |                              |beginning with 2012-13   |
             |------------------------------+-------------------------|
             |District Attorney and Public  |Greater amount (base +   |
             |Defender Subaccount           |growth) in a single year |
             |                              |beginning with 2014-15   |
             |                              |or highest amount        |
             |                              |authorized to receive in |
             |                              |any single fiscal year   |
             |                              |beginning with 2012-13   |
             |------------------------------+-------------------------|
             |Juvenile Justice Subaccount   |Greater of 2011-12       |
             |                              |amount or the largest    |
             |                              |amounts received (base + |
             |                              |growth) in any prior     |
             |                              |year beginning with      |
             |                              |2012-13                  |
             |                              |                         |
              -------------------------------------------------------- 

             This bill also specifies growth allocation to the 
             special accounts within the Support Services Growth 
             Subaccount and the Law Enforcement Services Growth 
             Subaccount in the Sales and Use Tax Growth Account for 

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                                                               AB 1480
                                                                Page 
          27

             the 2012-13 fiscal year.  Additional growth funding is 
             dedicated to child welfare services until the Director 
             of DOF certifies that $200 million has been allocated to 
             the Protective Services Growth Special Account.  The 
             allocations are as follows:


              -------------------------------------------------------- 
             |   Support Services Growth    |                         |
             |           Subaccount         |                         |
             |------------------------------+-------------------------|
             |Mental Health Subaccount      |5 percent                |
             |------------------------------+-------------------------|
             |Protective Services Growth    |40 percent               |
             |Special Account for Child     |                         |
             |Welfare Services              |                         |
             |------------------------------+-------------------------|
             |Protective Services Growth    |42.03 percent            |
             |Special Account               |                         |
             |------------------------------+-------------------------|
             |Behavioral Health Services    |12.97                    |
             |Growth Special Account        |percent                  |
             |                              |                         |
              -------------------------------------------------------- 
            

              -------------------------------------------------------- 
             |   Law Enforcement Services   |                         |
             |      Growth Subaccount       |                         |
             |------------------------------+-------------------------|
             |Trial Court Security Growth   |10 percent               |
             |Special Account               |                         |
             |------------------------------+-------------------------|
             |Community Corrections Growth  |75 percent               |
             |Special Account               |                         |
             |------------------------------+-------------------------|
             |District Attorney and Public  |5 percent                |
             |Defender Growth Special       |                         |
             |Account                       |                         |
             |------------------------------+-------------------------|
             |Juvenile Justice Growth       |10                       |
             |Special Account               |percent                  |
             |                              |                         |
              -------------------------------------------------------- 

                                                           CONTINUED





                                                               AB 1480
                                                                Page 
          28


             Growth will not be added to the base to create a 
             "rolling base" for the Community Corrections Subaccount 
             and the District Attorney and Public Defender Subaccount 
             until 2015-16.  

             This bill also specifies the growth allocation to the 
             special accounts within the Support Services Growth 
             Subaccount in the Sales and Use Tax Growth Account for 
             the 2013-14 fiscal year as follows:  


              -------------------------------------------------------- 
             |   Support Services Growth    |                         |
             |           Subaccount         |                         |
             |------------------------------+-------------------------|
             |Mental Health Subaccount      |5 percent                |
             |------------------------------+-------------------------|
             |Protective Services Growth    |40 percent               |
             |Special Account for Child     |                         |
             |Welfare Services              |                         |
             |------------------------------+-------------------------|
             |Protective Services Growth    |21.81 percent            |
             |Special Account               |                         |
             |------------------------------+-------------------------|
             |Behavioral Health Services    |33.19                    |
             |Growth Special Account        |percent                  |
             |                              |                         |
              -------------------------------------------------------- 
            
             This bill states that once the Director of DOF has 
             certified that $200 million in funding has been provided 
             to county child welfare services programs and the 
             Protective Services Growth Special Account, the 
             allocation to the special accounts and subaccounts of 
             the Support Services Growth Subaccount are as follows:


              -------------------------------------------------------- 
             |   Support Services Growth    |                         |
                                             |           Subaccount         |                         |
             |------------------------------+-------------------------|
             |Mental Health Subaccount      |5 percent                |
             |------------------------------+-------------------------|

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                                                               AB 1480
                                                                Page 
          29

             |Protective Services Growth    |45 percent               |
             |Special Account               |                         |
             |------------------------------+-------------------------|
             |Behavioral Health Services    |50                       |
             |Growth Special Account        |percent                  |
             |                              |                         |
              -------------------------------------------------------- 

          22. Creates System of State Intervention for Medi-Cal 
             Programs in 2011 Realignment  .  The bill authorizes a 
             process and procedure for the Department of Health Care 
             Services to intervene if the department determines that 
             a county is failing to perform functions and could 
             jeopardize the receipt of federal funds for these 
             programs.  This bill authorizes, after notification, 
             that the State Controller deposit the portion of the 
             county's allocation attributable to the affected program 
             into the County Intervention Support Services 
             Subaccount.  The amounts deposited in this Subaccount 
             will then be used by the Department to fund the program 
             or programs in the county where the county was failing 
             to perform necessary functions to maintain federal 
             funds.

          23.  Protection for Counties if Funding Supporting 
             Realignment is Reduced or Repealed  .  This bill requires 
             the state to annually provide moneys to the Local 
             Revenue Fund 2011 in an amount equal to or greater than 
             the aggregate amount that otherwise would have been 
             provided by the taxes supporting 2011 Realignment if the 
             taxes are reduced or eliminated.  If the state fails to 
             annually appropriate that amount, the State Controller 
             shall transfer that amount from the General Fund.  A 
             process for this backfill of funding satisfies a 
             requirement of Article XIII of the Constitution to be 
             added per The Schools and Public Safety Protection Act 
             of 2012 on the November 6, 2012 statewide general 
             election.

          24.  Provides Juvenile Justice Subaccount Allocations  .  This 
             bill makes technical amendments to the allocation of 
             funding within the Juvenile Justice Subaccounts for the 
             2011-12 fiscal year.  This bill also proposes to 
             allocate these funds to the special accounts in 2012-13 

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                                                               AB 1480
                                                                Page 
          30

             and every subsequent fiscal year as follows:


              -------------------------------------------------------- 
             | Juvenile Justice Subaccount  |                         |
             |------------------------------+-------------------------|
             |Youthful Offender Block Grant |96.15 percent            |
             |Special Account               |                         |
             |------------------------------+-------------------------|
             |Juvenile Reentry Grant        |3.85                     |
             |   Special Account            |percent                  |
             |                              |                         |
              -------------------------------------------------------- 

          25.  Directs Allocation of Funds from State to County and 
             Among Counties  .  This bill specifies that the revenues 
             collected between August 16 of a year and August 15 of 
             the following year constitutes a fiscal year for the 
             purposes of 2011 Realignment.  This bill specifies 
             allocation of the funds to the counties as follows:

             Funds in the Mental Health Account shall be allocated on 
             the 20th of each month to the local Mental Health 
             Subaccount that was created in 1991 Realignment.

             Funds in the Trial Court Security Subaccount shall be 
             allocated by the State Controller on the 27th of each 
             month.  Money in the Trial Court Security Subaccount 
             cannot be used to pay for general county administrative 
             expenses.  This bill also provides for an allocation of 
             the Trial Court Security Subaccount among the counties.  


             Allocates funding from the Community Corrections 
             Subaccount to the counties for the 2012-13 and 2013-14 
             fiscal years only.  This allocation was developed by the 
             California State Association of Counties and allowed 
             counties to pick the most favorable formula from three 
             formulas that included (a) caseload; (b) population 
             between 18 and 64; and (c) the 2011-12 formula, which 
             was based on a weighted formula composed of caseload, 
             population, and the SB 678 probation incentive program 
             success rate.  A new methodology and schedule for 
             allocating funds shall be developed by DOF in 

                                                           CONTINUED





                                                               AB 1480
                                                                Page 
          31

             consultation with the California State Association of 
             Counties commencing with the 2014-15 fiscal year.

             Allocates funding from the from the District Attorney 
             and Public Defender Subaccount to the counties for the 
             2012-13 and 2013-14 fiscal years only.  A new 
             methodology and schedule for allocating funds shall be 
             developed by DOF in consultation with the California 
             State Association of Counties commencing with the 
             2014-15 fiscal year.

             Funds deposited in the Enhancing Law Enforcement 
             Activities Subaccount are allocated among counties 
             according to current law.

             On August 25 of each year, funds allocated to the 
             Enhancing Law Enforcement Activities Growth Special 
             Account shall be allocated as follows:  (a) 38.40% to 
             the Juvenile Probation and Camps Funding program; (b) 
             27.08% to the Community Oriented Policing Services 
             Program; (c) 27.08% to the Juvenile Justice Crime 
             Prevention Act program; and (d) 7.44% to the Juvenile 
             Camps and Ranches program.

             Directs the monthly allocation of funds from the 
             Protective Services Subaccount to the County Protective 
             Services Subaccount.  For the 2012-13 fiscal year the 
             distribution to each county shall be the same as that 
             used to distribute funds in the 2011-12 fiscal year 
             adjusted to reflect updated expenditures on Foster Care 
             Assistance and Adoptions Assistance Program payments and 
             for the distribution of the estimated funding for 
             implementation of AB 12 (Beall), Chapter 559, Statutes 
             of 2010.  For the 2013-14 fiscal year, and each year 
             subsequent, DOF may develop a schedule in consultation 
             with the California State Association of Counties per 
             criteria.  This bill authorizes up to $32,721,000 
             annually to be transferred to a Contract Special Account 
             of a designated county. 

          26.  Directs Deposit of Growth Funds in County Accounts  .  
             This bill directs the growth funds in state growth 
             special accounts to the appropriate county accounts as 
             follows:

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                                                               AB 1480
                                                                Page 
          32



              -------------------------------------------------------- 
             |        Growth Account        |      Local Account      |
             |------------------------------+-------------------------|
             |Protective Services Growth    |Protective Services      |
             |Special Account               |Subaccount               |
             |------------------------------+-------------------------|
             |Behavioral Health Services    |Behavioral Health        |
             |Growth Special Account        |Subaccount               |
             |------------------------------+-------------------------|
             |Trial Court Security Growth   |Trial Court Security     |
             |Special Account               |Subaccount               |
             |------------------------------+-------------------------|
             |Community Corrections Growth  |Community Corrections    |
             |Special Account               |Subaccount               |
             |------------------------------+-------------------------|
             |District Attorney and Public  |District Attorney and    |
             |Defender Growth Special       |Public Defender          |
             |Account                       |Subaccount               |
             |------------------------------+-------------------------|
             |Juvenile Justice Growth       |Juvenile Justice         |
             |Special Account               |Subaccount               |
             |                              |                         |
              -------------------------------------------------------- 

             This bill further directs that the growth funds shall be 
             allocated to the local subaccounts in the percentages 
             provided.  However, if the allocation methodology is not 
             specified in this bill, the growth funds shall be 
             allocated in accordance with schedules developed by DOF 
             in consultation with the California State Association of 
             Counties and in accordance with any criteria contained 
             in this bill.

          27.  Creates Local Innovation Subaccount  .  Starting in 
             2015-16, each county shall transfer to the Local 
             Innovation Subaccount 10 percent of the moneys received 
             during a fiscal year from each of the following state 
             accounts:

                   Trial Court Security Growth Special Account
                   Community Corrections Growth Special Account
                   District Attorney and Public Defender Growth 

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                Special Account
                   Juvenile Justice Growth Special Account

          28.  Incentive Funding from Protective Services Growth 
             Special Account  .  Starting in 2012-13, 10% of the growth 
             funding from the Protective Services Growth Special 
             Account shall only be allocated to counties that have 
             expended in that fiscal year an amount at least 
             equivalent to that which the county would have had to 
             spend in the absence of 2011 Realignment Legislation to 
             access augmentation funding pursuant to Welfare and 
             Institutions Code Section 10609.9.  This determination 
             will be made as of August 1 of each year with data from 
             the prior fiscal year.  This bill exempts small counties 
             from this provision.  This bill also allocates this 
             growth funding among the counties per a schedule.

          29.  Community Corrections Growth Allocation  .  This bill 
             requires DOF to develop a schedule for allocating the 
             growth funding in the Community Corrections Growth 
             Special Account.  The schedule shall reflect priorities 
             that promote the effective implementation of the 2011 
             Public Safety Realignment including the following:  (a) 
             minimum allocations for each county; (b) establishment 
             of appropriate small county minimum allocations; (c) 
             adjustments for average daily population variations; (d) 
             other factors; and (e) implementation of 2011 Public 
             Safety Realignment consistent with cost effective 
             evidence based practices.  This bill requires that DOF 
             consider a county's commitment to continuing, expanding, 
             or initiating community corrections practices, programs 
             and strategies that manage felony offender populations 
             most cost effectively by using evidence-based practices 
             when developing this formula to allocate the growth over 
             the next two years.

          30.  Re-Enacts Definitions Related to Child Welfare Services  . 
              This bill re-enacts definitions related to child 
             welfare services that were realigned in the 2011 
             Realignment.  This provision of law is related to 2011 
             Realignment.

          31.  Women and Children's Residential Treatment Services 
             Program  .  This bill authorizes six counties to establish 

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             the Women and Children's Residential Treatment Services 
             Special Account within their Behavioral Health 
             Subaccount.  These six counties currently have 
             established programs and this bill dedicates money to 
             these programs in 2012-13 and ongoing.  Funding is 
             allocated to Alameda County, Marin County, Los Angeles 
             County, San Diego County, San Francisco City and County, 
             and San Joaquin County for this purpose.

          32.  Contract Back with State Authorization  .  This bill 
             authorizes counties to contract with the Department of 
             Health Care Services or the Department of Social 
             Services to provide or administer the Drug Medi-Cal 
             Treatment Program and the Agency adoptions program.  
             Contracts would be exempt from certain aspects of the 
             Public Contract Code and contracts shall include 
             reimbursement to the state for the cost of providing the 
             services or activities.

          33.  Creates Contract Special Account  .  This bill authorizes 
             that up to $32,721,000 may be allocated annually to the 
             Contract Special Account of a designated county.  This 
             account would be used to contract directly with the 
             Department of Social Services for the following 
             programs, services, and functions:

                 The Private Agency Adoptions Reimbursement Program.

                 The Chafee Post Secondary Education and Training 
               Voucher Program.

                 Health Care Oversight for Children in Foster Care.

                 Training, technical assistance, and other contracts 
               of statewide benefits.

                 Other contracts that counties, in consultation with 
               the Department of Social Services determine are in the 
               best interests of counties and the state.

             Funds in this account shall not be subject to the 
             reallocation rules.  If the funding is not fully 
             expended in a given fiscal year it shall be retained in 
             the fund for expenditure in the subsequent fiscal year.  

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             After consultation with the Department of Social 
             Services and the California State Association of 
             Counties, funding may be redistributed back to all 
             counties in the proportion that it was provided to the 
             Contract Special Account if it is determined it is not 
             needed to support the activities described above.

          34.  Allocations of the Youthful Offender Block Grant and 
             Juvenile Justice Reentry Grant  .  This bill directs the 
             allocation of the Youthful Offender Block Grant Special 
             Account and the Juvenile Justice Reentry Special Account 
             to each county according to current law.  Under existing 
             law, the Director of DOF determines allocations that are 
             distributed monthly to the counties.

          35.  Reporting  .  This bill requires transmittal of all 
             schedules developed by DOF for the allocation of funding 
             that are transmitted to the State Controller also be 
             transmitted to the fiscal committees of the Legislature.

          36.  Mental Health Funding  .  The 2011 Realignment interacts 
             with 1991 Realignment by providing $1,120,551,000 from 
             2011 Realignment to fund mental health services that 
             were previously funded by 1991 Realignment.  The 1991 
             Realignment funding that is no longer supporting these 
             mental health funds is transferred at the county to the 
             county CalWORKS Maintenance of Effort Subaccount in an 
             amount up to $1,120,551,000.  Growth associated with 
             1991 realignment funding should continue to accrue to 
             the 1991 Mental Health Subaccount per current law and 
             practice. 

           Comments  

          This bill provides an ongoing statutory framework and 
          financing structure for 2011 Realignment.  By 2014-15, the 
          2011 Realignment is expect to grow to over $6.8 billion, 
          which will provide counties with about $1 billion in 
          additional resources to cover necessary costs related to 
          2011 Realignment.  

          According to the Administration, the financing structure 
          and the allocation methodology for base allocations and 
          growth allocations were developed in consultation with the 

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          California State Association of Counties.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Budget and Fiscal Review Committee:

            Legislation that enacted 2011 Realignment shifted 
            approximately $5.6 billion in state revenues and funding 
            responsibilities to local governments.  This bill 
            furthers the implementation of the 2011 Realignment.  To 
            the extent that the revenues realigned to the local 
            governments are growing beyond the natural growth of 
            caseload and costs related to the entitlement programs 
            realigned the counties may be accruing additional funding 
            beyond what would have reasonably been provided for by 
            the state in the annual budget act.  However, conversely 
            if revenues are not performing at the level expected when 
            2011 Realignment was enacted the state may be saving 
            additional costs that would have otherwise been provided 
            in the budget act because the county is being required to 
            manage unfunded program growth in entitlements from 
            within the designated allocations.

            This bill may have minor costs for the State Controller 
            and the Department of Finance related to creating and 
            publishing various schedules for allocation of funding as 
            directed by this bill.

            The 2011 Realignment clarifies that reasonable costs 
            borne by local governments in implementing 2011 
            Realignment are required to be funded from 2011 
            Realignment funds.  Therefore, this bill does not create 
            new mandates on local governments.  




          RJG:m  6/26/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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