BILL ANALYSIS                                                                                                                                                                                                    �



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          SENATE THIRD READING
          SB 347 (Beall)
          As Amended  May 7, 2013
          Majority vote 

           SENATE VOTE  :39-0  
           
           HUMAN SERVICES      7-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Stone, Maienschein,       |Ayes:|Gatto, Harkey, Bigelow,   |
          |     |Ammiano,                  |     |Bocanegra, Bradford, Ian  |
          |     |Ian Calderon, Garcia,     |     |Calderon, Campos,         |
          |     |Grove, Hall               |     |Donnelly, Eggman, Gomez,  |
          |     |                          |     |Hall, Holden, Linder,     |
          |     |                          |     |Pan, Quirk, Wagner, Weber |
          |     |                          |     |                          |
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           SUMMARY  :  Amends the Youth Center and Youth Shelter Bond Act of  
          1988 (Act) to allow counties awarded funds to re-purpose funds  
          for future youth shelters.  Specifically,  this bill  :

          1)Revises the Act to permit a county to repurpose unexpended  
            bond funds initially awarded for the construction of shelters  
            for abused and neglected children and use those funds for  
            shelters for runaway or homeless youth.

          2)Exempts counties from repaying bond funds if the money was  
            initially allocated for shelters for abused and neglected  
            children and later used for shelters for runaway or homeless  
            youth.

          3)Permits counties to use funds awarded under the Act to provide  
            grant awards to private nonprofit entities for the  
            acquisition, renovation, construction, or purchase of  
            equipment for a youth shelter.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:  
          

          1)Near-term loss of revenue of at least $1 million (General  
            Fund) from the recent sale proceeds of property in Santa Clara  
            County subject to repayment provisions under current law.  The  








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            actual repayment amount, which has yet to be determined, would  
            be the proportion of the current value of the property equal  
            to the proportional share of state funds contributed to the  
            original cost of the project.

          2)Potential future loss of revenue of at least $1 million  
            (General Fund) for funds awarded to San Diego County should  
            the county violate its contract obligations prior to September  
            2014.

           COMMENTS  :  In the 1980s and into the 1990s, California voters  
          considered a number of state obligation bonds to fund the  
          construction or renovation of county and state operated  
          correctional facilities to address issues related to  
          overcrowding.  The number of bonds was fairly substantial,  
          totaling over $4 billion in general obligation bonds approved  
          over a nine year period.

          Of the bonds adopted, only Proposition 86 in 1988 provided  
          funding for the development or renovation of youth shelters and  
          centers.  Recognizing the need to provide alternative and  
          preventative services for youth who were at-risk of becoming  
          involved with the juvenile justice system, $25 million was  
          allocated for youth centers and shelters. 

           Repurposing of funds  :  Nearly 15 years has passed since the  
          adoption of Proposition 86 in 1988, and only a handful of  
          counties have been able to benefit from the limited amount of  
          funds made available through this bond act.  Recognizing that  
          many youth shelters and centers are operated by local nonprofit  
          agencies on minimal budgets that rely on philanthropic  
          donations, grants, and volunteers, removing a needed resource  
          for services to at-risk, homeless, or runaway youth could have a  
          detrimental effect.

           Understanding the supply and demand for homeless youth services  :  
           Established by the California Research Bureau (CRB) in 2006, in  
          collaboration with the Council on Youth Relations (CYR), the  
          Homeless Youth Project (HYP) is a multi-year research and policy  
          initiative tasked with highlighting and raising awareness about  
          the homeless youth population and its challenges, and presenting  
          solutions to help address California's homeless youth  
          population.  









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          According to the HYP, based on national survey estimates and  
          California's youth population, it is estimated that there are  
          200,000 youth under the age of 18 and potentially thousands of  
          persons aged 18-24 who are homeless.  While this is an  
          approximation of the number of homeless youth in California, the  
          number is likely to be greater given the challenges involved in  
          the identification of homeless youth.  For purpose of this  
          population, "homeless youth" typically describes minors under  
          the age of 18, and 18 to 24-year-olds, who are economically or  
          emotionally detached from their families and have an unstable  
          and inadequate living environment, or are periodically or  
          chronically homeless.

          The causes of youth homelessness are varied and complex.  They  
          range from runaway youth to emancipated foster youth to  
          disengaged youth due to the lack of an adult figure in their  
          life or a lack of access to appropriate services.  Due to their  
          unique circumstances, research has shown that homeless youth are  
          at a greater risk of physical and sexual abuse, sexual  
          exploitation, alcohol and drug abuse, mental health  
          disabilities, and death.  Additionally, the social, emotional,  
          medical, economic and personal challenges homeless youth face,  
          when coupled with the lack of effective, coordinated services to  
          help them find and keep stable housing and reach  
          self-sufficiency, can lead to ongoing and chronic cycles of  
          homelessness throughout their lifetime. 

          In a 2010 survey of local, state and federal programs, the HYP  
          was able to identify 53 programs that offered just over 1,000  
          beds for homeless youth throughout the state.  Given that the  
          current estimate of homeless youth amounts to more than 200,000  
          individuals, this demonstrates a significant gap between the  
          size of California's homeless youth population and the number of  
          programs and services available to meet their needs. 


           Analysis Prepared by  :    Chris Reefe / HUM. S. / (916) 319-2089 


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