BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                               SB 1020
                                                               Page  1


       SENATE THIRD READING
       SB 1020 (Budget and Fiscal Review Committee)
       As Amended  June 25, 2012
       Majority vote.  Budget Bill Appropriation Takes Effect Immediately 

        SENATE VOTE  :Vote not relevant  
        
        Summary  :  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.  The bill also directs the allocation of 
       funding among accounts, including the allocation of growth funding.

       Proposed Law.  The 2011 Realignment legislation provided for a 
       temporary financing structure for the 2011-12 fiscal year only.  This 
       legislation 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  

       1)Creates Account Structure in 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, the bill abolishes all of the original accounts in the 
         Local Revenue Fund 2011 except for the Mental Health Account.  The 
         bill also creates and designates permanent successor accounts.  The 
         bill 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 Service 
         Subaccount and Behavioral Health Subaccount and this bill directs 
         the deposit of funds from the original subaccounts into the new 
         subaccounts and special accounts as follows:

        ----------------------------------------------------------- 
       |     Original Subaccount      |    Successor Subaccount    |
       |------------------------------+----------------------------|
       |Adult Protective Services     |    Protective Services     |
       |Subaccount                    |         Subaccount         |
       |------------------------------+----------------------------|
       |Foster Care Assistance        |                            |
       |Subaccount                    |                            |








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       |------------------------------+----------------------------|
       |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         |Residential Treatment       |
       |Services Subaccount           |Services Special Account    |
       |                              |                            |
        ----------------------------------------------------------- 

         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:









                                                               SB 1020
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        ------------------------------------------------------------ 
       |         Original Fund         |    Successor Subaccount    |
       |-------------------------------+----------------------------|
       |Trial Court Security Account   |Trial Court Security        |
       |-------------------------------+----------------------------|
       |Local Community Corrections    |Community Corrections       |
       |Account                        |Subaccount                  |
       |-------------------------------+----------------------------|
       |Local Law Enforcement Services |Enhancing Law Enforcement   |
       |Account                        |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             |
       |                               |                            |
        ------------------------------------------------------------ 

         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 are deposited directly in 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 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 








                                                               SB 1020
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         any vehicle license fee revenues above $489.9 million are deposited.

         As of September 15, 2012, all of the funds in both the original 
         funds and subaccounts are deposited in 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 mirrors 
         the subaccount and special account structure in the state fund, 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.

         The bill directs the creation of a Contract Special Account within 
         the Protective Services Subaccount for designated counties for the 
         funding of multi-state or statewide contracts.  The bill also 
         directs the creation of a Local Innovation Subaccount within the Law 
         Enforcement Services Account.  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 a 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 deposited in the county successor 
         subaccounts and special accounts and the original funds and 
         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 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 








                                                               SB 1020
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         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.

       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.  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 The Schools 
         and Local Public Safety Protection Act of 2012.  Current 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 Services Account 
         shall be used to fund local needs, which include any eligible 
         expenditure in the Juvenile Justice Subaccount, the District 








                                                               SB 1020
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         Attorney and Public Defender Subaccount, the Community Corrections 
         Subaccount, or 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 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 last year.

         This bill directs the expenditure of any residual funds remaining in 
         the Reserve Account and Undistributed Account 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 (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 of 
         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 will become inoperative 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.

       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 funding provided in the Local Revenue Fund 
         2011.  This statutory framework would become inoperative if Article 








                                                               SB 1020
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         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 the 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.  

       10)Cost Sharing Provisions for Unanticipated New Program Costs.  This 
         bill makes it clear 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 makes it clear that it is a county option to provide 
         a new program or a higher level of service, but it does not require 
         a subvention of funds from the state.

         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 costs of any 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 requires the state to pay for 50% on the 
         nonfederal share of costs related to 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 








                                                               SB 1020
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         legal obligation in good faith.  This bill states that judicial 
         complaints related to a state or local agency fail to perform a duty 
         or obligation under 2011 Realignment shall have priority over all 
         other civil matters.

       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 three years) 
         to optional or discretionary programs currently funded in behavioral 
         health, adult protective services, and child welfare services be 
         made in an open session, as an action item in 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.  The bill requires the county first exhaust funding 
         provided in 2011 Realignment and 1991 Realignment for any state 
         mandated costs related to 2011 Realignment.  This statutory 
         framework will become inoperative 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.

         The bill also specifies that that state does not have a share of 
         costs for programs described in 2011 Realignment that are 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 amount received by the Local Revenue 








                                                               SB 1020
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         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, 
         starting in 2014-15 the State Controller is required to report the 
         highest amount ever allocated to the Subaccounts in the Local 
         Revenue Fund 2011 and not how much growth funding may need to be 
         provided as restoration in a future fiscal year to achieve that 
         level.  Also annually, the State Controller shall make 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 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 
         federal 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 until August 15, 2012, to account for 
         the lag in receipt 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                      |
       |                              |                              |








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

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








                                                               SB 1020
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       |Protective Services           |62.9736% or up to             |
       |Subaccount                    |$1,640.4                      |
       |                              |                              |
        ------------------------------------------------------------- 

        ------------------------------------------------------------- 
       |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|
       |------------------------------+------------------------------|








                                                               SB 1020
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       |Enhancing Law Enforcement     |  $489.9 from Vehicle License |
       |Activities                    |Fee (VLF) revenues and if VLF |
       |                              |   revenues are not enough to |
       |                              |  reach this level from sales |
       |                              |tax revenues deposited in the |
       |                              |      Local Revenue Fund 2011 |
       |------------------------------+------------------------------|
       |Enhancing Law Enforcement     |    Any remaining VLF revenue |
       |Growth Special Account        |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   |
       |                              |                              |
        ------------------------------------------------------------- 

         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 Growth|
       |------------------------------+------------------------------|
       |Protective Services           |    63.2609% or up to 2012-13 |








                                                              SB 1020
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       |Subaccount                    |     amount + $20.4 + 2012-13 |
       |                              |Growth                        |
       |                              |                              |
        ------------------------------------------------------------- 

        ------------------------------------------------------------- 
       |Law Enforcement Services      |Amount                        |
       |Account                       |                              |
       |------------------------------+------------------------------|
       |Trial Court Security          |    30.8105% or up to 2012-13 |
       |Subaccount                    |       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 as AB 109 (Budget Committee), 
         Chapter 15, Statutes of 2011, is implemented.

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

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








                                                               SB 1020
                                                               Page  14


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

        ------------------------------------------------------------- 
       |Account                       |                        Amount|
       |------------------------------+------------------------------|
       |Enhancing Law Enforcement     |  $489.9 from Vehicle License |
       |Activities                    |Fee (VLF) revenues and if VLF |
       |                              |   revenues are not enough to |
       |                              |  reach this level from sales |
       |                              |tax revenues deposited in the |
       |                              |      Local Revenue Fund 2011 |
       |------------------------------+------------------------------|
       |Enhancing Law Enforcement     |    Any remaining VLF revenue |
       |Growth Special Account        |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 + |
           |                              |                2013-14 Growth|
           |------------------------------+------------------------------|
           |Law Enforcement Services      |     2013-14 amount - $66.1 + |
           |Account                       |     2013-14 Growth for Trial |
           |                              |Court Security Subaccount and |
           |                              |Juvenile Justice Subaccount   |
           |                              |                              |
            ------------------------------------------------------------- 

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

          (in Millions)








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






             ------------------------------------------------------------ 
            |Law Enforcement Services     |                        Amount|
            |Account                      |                              |
            |-----------------------------+------------------------------|
            |Trial Court Security         |    32.1286% or up to 2013-14 |
            |Subaccount                   |       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          |                              |
            |-----------------------------+------------------------------|
            |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 Chapter 559, 
         Statutes of 2010 (AB 12, Beall) 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 Chapter 15, Statutes of 2011 (AB 
         109, Budget) is implemented.

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









                                                               SB 1020
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         (in Millions)

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

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








                                                               SB 1020
                                                               Page  17


         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 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.









                                                               SB 1020
                                                               Page  18


         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 
         will annually prepare a schedule that provides the appropriate and 
         proportional allocations to direct the Controller's allocation if 
         funds are not sufficient to provide the intended allocations 
         described above. 

       21)Makes Allocations of 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 allocates 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.  For 2015-16 
         a permanent growth allocation methodology is established for 
         allocating most of the special accounts.

         For the 2012-13 fiscal year, the growth is allocated to two of the 
         subaccounts as follows:

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

         Starting in 2013-14 there is a definition of the amount necessary to 
         provide full base funding.  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 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 as follows:

            ------------------------------------------------------------- 
           |Support Services Account      |                        Amount|








                                                               SB 1020
                                                               Page  19


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

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

         Starting in 2014-15 the definition of the amount necessary to 
         provide full base funding 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 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 |








                                                               SB 1020
                                                               Page  20


           |                              |         that could have been |
           |                              |  allocated in 2012-13 or the |
           |                              |     largest amounts received |
           |                              | (base + growth) in any prior |
           |                              |year beginning with 2013-14   |
           |------------------------------+------------------------------|
           |Protective Services           |Greater of the maximum amount |
           |Subaccount                    |that was allocated in 2012-13 |
           |                              |  and the maximum amount that |
           |                              |was allocated in 2013-14      |
           |                              |                              |
            ------------------------------------------------------------- 








































                                                               SB 1020
                                                               Page  21



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

         Starting in 2015-16 and for each subsequent year after the 
         definition of the amount necessary to provide full base funding 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 |








                                                               SB 1020
                                                               Page  22


           |                              |any prior year beginning with |
           |                              |                       2012-13|
           |------------------------------+------------------------------|
           |Protective Services           |Greater of the maximum amount |
           |Subaccount                    |        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                       |
           |                              |                              |
            ------------------------------------------------------------- 

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









                                                               SB 1020
                                                               Page  23


         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 the 2012-13 fiscal year.  Additional growth 
         funding is dedicated to child welfare services until the Director of 
         Finance 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%|
           |------------------------------+------------------------------|
           |Protective Services Growth    |                           40%|
           |Special Account for Child     |                              |
           |Welfare Services              |                              |
           |------------------------------+------------------------------|
           |Protective Services Growth    |                        42.03%|
           |Special Account               |                              |
           |------------------------------+------------------------------|
           |Behavioral Health Services    |12.97%                        |
           |Growth Special Account        |                              |
            ------------------------------------------------------------- 
             
            ------------------------------------------------------------- 
           |Law Enforcement Services      |                              |
           |Growth Subaccount             |                              |
           |------------------------------+------------------------------|
           |Trial Court Security Growth   |                           10%|
           |Special Account               |                              |
           |------------------------------+------------------------------|
           |Community Corrections Growth  |                           75%|
           |Special Account               |                              |
           |------------------------------+------------------------------|
           |District Attorney and Public  |                            5%|
           |Defender Growth Special       |                              |
           |Account                       |                              |
           |------------------------------+------------------------------|
           |Juvenile Justice Growth       |10%                           |
           |Special Account               |                              |
            ------------------------------------------------------------- 









                                                               SB 1020
                                                               Page  24


         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.  The allocations among the 
         special accounts in the Law Enforcement Services Growth Subaccount 
         are not proposed to be changed.

         This bill also specifies a different 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.  

            ------------------------------------------------------------- 
           |Support Services Growth       |                              |
           |Subaccount                    |                              |
           |------------------------------+------------------------------|
           |Mental Health Subaccount      |                            5%|
           |------------------------------+------------------------------|
           |Protective Services Growth    |                           40%|
           |Special Account for Child     |                              |
           |Welfare Services              |                              |
           |------------------------------+------------------------------|
           |Protective Services Growth    |                        21.81%|
           |Special Account               |                              |
           |------------------------------+------------------------------|
           |Behavioral Health Services    |33.19%                        |
           |Growth Special Account        |                              |
            ------------------------------------------------------------- 

         This bill states that once the Director of Finance 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 amount is changed as follows:



            ------------------------------------------------------------- 
           |Support Services Growth       |                              |
           |Subaccount                    |                              |
           |------------------------------+------------------------------|
           |Mental Health Subaccount      |                            5%|
           |------------------------------+------------------------------|
           |Protective Services Growth    |                           45%|
           |Special Account               |                              |
           |------------------------------+------------------------------|
           |Behavioral Health Services    |50%                           |








                                                               SB 1020
                                                               Page  25


           |Growth Special Account        |                              |
            ------------------------------------------------------------- 

       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, the State Controller to deposit 
         the portion of the county's allocation attributable to the effected 
         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 and every subsequent fiscal year as follows:

            ------------------------------------------------------------- 
           |Juvenile Justice Subaccount   |                              |
           |------------------------------+------------------------------|
           |Youthful Offender Block Grant |                       96.015%|
           |Special Account               |                              |
           |------------------------------+------------------------------|
           |Juvenile Reentry Grant        |3.085%                        |
           |Special Account               |                              |
            ------------------------------------------------------------- 









                                                               SB 1020
                                                               Page  26


       25)Directs Allocation of Funds from State to County and Among 
         Counties.  This bill specifies that the revenues collected on August 
         16 to August 15, inclusive, 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:

          a)   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.

          b)   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.  This allocation is based on the 2011-12 
            allocation adjusted for expected increased workload associated 
            with the implementation of AB 109 (Budget Committee), Chapter 15, 
            Statutes of 2011.

          c)   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:  i) caseload; ii) population 
            between 18 and 64; and, iii) the 2011-12 formula, which was based 
            on a weighted formula composed of caseload, population, and SB 
            678 probation incentive program success rate.  A new methodology 
            and schedule for allocating funds shall be developed by the 
            Department of Finance in consultation with the California State 
            Association of Counties commencing with the 2014-15 fiscal year.

          d)   Allocates funding 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 the Department of Finance in 
            consultation with the California State Association of Counties 
            commencing with the 2014-15 fiscal year.

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

          f)   On August 25 of each year, funds allocated to the Enhancing 
            Law Enforcement Activities Growth Special Account shall be 








                                                               SB 1020
                                                               Page  27


            allocated as follows: i) 38.40% to the Juvenile Probation and 
            Camps Funding program; ii) 27.08% to the Community Oriented 
            Policing Services Program; iii) 27.08% to the Juvenile Justice 
            Crime Prevention Act program; and, iv) 7.44% to the Juvenile 
            Camps and Ranches program.

          g)   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 those 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 the 
            Department of Finance may develop a schedule in consultation with 
            the California State Association of the 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:


            ------------------------------------------------------------- 
           |Growth Account                |Local Account                 |
           |------------------------------+------------------------------|
           |Protective Services Growth    |Protective Services           |
           |Special Account               |Subaccount                    |
           |------------------------------+------------------------------|
           |Behavioral Health Services    |Behavioral Health Subaccount  |
           |Growth Special Account        |                              |
           |------------------------------+------------------------------|
           |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 Public  |
           |Defender Growth Special       |Defender Subaccount           |
           |Account                       |                              |
           |------------------------------+------------------------------|








                                                               SB 1020
                                                               Page  28


           |Juvenile Justice Growth       |Juvenile Justice Subaccount   |
           |Special Account               |                              |
            ------------------------------------------------------------- 

         The 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 
         the Department of Finance 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% of the 
         moneys received during a fiscal year from each of the following 
         state accounts:

          a)   Trial Court Security Growth Special Account;

          b)   Community Corrections Growth Special Account;

          c)   District Attorney and Public Defender Growth Special Account; 
            and, 

          d)   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 Section 10609.9 of the Welfare and Institutions Code.  This 
         determination will be made as of August 1 with data from the prior 
         fiscal year.  Small counties are exempt from this provision 
         according to this bill.  This bill also allocates this growth 
         funding among the counties per a schedule.

       29)Community Corrections Growth Allocation.  This bill requires the 
         Department of Finance 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:  i) minimum allocations for each county; ii) 








                                                               SB 1020
                                                               Page  29


         establishment of appropriate small county minimum allocations; iii) 
         adjustments for average daily population variations; iv) other 
         factors; and, v) implementation of 2011 Public Safety Realignment 
         consistent with cost effective evidence based practices.  This bill 
         requires that the Department of Finance 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 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 would dedicate money to these 
         programs in the future.  Funding is allocated to Alameda County, 
         Marin County, Los Angeles County, San Diego County, San Francisco 
         City and County, and San Joaquin County.

       32)Contract Back with State Allowance.  This bill allows the counties 
         to contract with the State 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 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:

          a)   The Private Agency Adoptions Reimbursement Program;

          b)   The Chafee Post Secondary Education and Training Voucher 
            Program;









                                                               SB 1020
                                                               Page  30


          c)   Health Care Oversight for Children in Foster Care; 

          d)   Training, technical assistance, and other contracts of 
            statewide benefits; and, 

          e)   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.  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.

       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 current law the Director of Finance determines 
         allocations that are distributed monthly to the counties.

       35)Reporting.  This bill requires transmittal of all schedules 
         developed by the Department of Finance pursuant to this chapter and 
         transmitted to the Controller for allocation of funding to also be 
         transmitted to the fiscal committees of the Legislature.

       36)1991 Realignment Funding Swap.  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 in the counties 
         CalWORKS Maintenance of Effort Subaccount up to $1,120,551,000.  
         Growth associated with 1991 realignment funding should continue to 
         accrue to the 1991 Mental Health Subaccount. 

       37)Contains an appropriation allowing this bill to take effect 
         immediately upon enactment.

        COMMENTS  :  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 








                                                               SB 1020
                                                               Page  31


       local governments.  This realignment also redefined 1.0625 of the 
       state sales and use tax as a local 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 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 Constitutional 
       Amendment that is qualified for the November 2012 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 
       mandate protections for the state and guidance related to cost sharing 
       of future changes to federal entitlement programs realigned to the 
       counties.


        Analysis Prepared by  :    Nicole Vazquez / BUDGET / (916) 319-2099


                                                                   FN: 
       0004200