Amended in Assembly April 20, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1056


Introduced by Assembly Member Atkins

February 26, 2015


An act to addbegin delete Chapter 4 (commencing with Section 34650) to Part 2 of Division 24 of the Health and Safety Code,end deletebegin insert Article 5 (commencing with Section 6046) to Chapter 5 of Title 7 of Part 3 of the Penal Code,end insert relating tobegin delete housing assistance.end deletebegin insert recidivism reduction, and making an appropriation therefor.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1056, as amended, Atkins. begin deleteHousing assistance: formerly incarcerated tenants. end deletebegin insertSecond Chance Program.end insert

begin delete

(1) Existing federal law, the American Recovery and Reinvestment Act of 2009, allocated, until September 30, 2011, $1.5 billion to the federal Department of Housing and Urban Development for the Homelessness Prevention Fund, to be used for homelessness prevention and rapid rehousing. Existing law, the California Work Opportunity and Responsibility to Kids Act, provides housing supports to individuals if the administering county determines that the individual or his or her family is experiencing homelessness or housing instability that would be a barrier to self-sufficiency or child well-being, and declares that it is the intent of the Legislature that housing supports utilize evidence-based models, including those established in the federal Department of Housing and Urban Development’s Homeless Prevention and Rapid Re-Housing Program. The Housing Authorities Law establishes, in each county and city, a public body corporate and politic known as the housing authority of the county or city.

end delete
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This bill would authorize a housing authority, defined to include an entity created pursuant to the Housing Authorities Law or a housing-related entity created by a county, to develop a housing supports program, as defined. The bill would require a housing supports program to provide rental assistance for a specified period to persons who are formerly incarcerated, provide rapid rehousing services, and conduct an individual needs assessment for each prospective tenant to determine the level of services provided and length of assistance. The bill would authorize the housing authority to finance the program through grants provided by the Board of State and Community Corrections or the California Housing Finance agency, existing funding sources except as specified, establishment of a regional center under specified provisions, and a grant repayment component of the housing supports program.

end delete
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The bill would require the Board of State and Community Corrections to develop a request for proposal process for awarding grants to housing authorities that establish a housing supports program. The bill would require the California Housing Finance Agency to develop a similar request for proposal process for awarding grants to housing authorities located in small or rural counties, as defined. The bill would require the request for proposal process for both agencies to give preference to housing authorities that demonstrate the ability to attract matching funds or leverage existing funds and to give consideration to the geographic diversity of applicant housing authorities.

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(1) Existing law establishes the Board of State and Community Corrections as an entity independent of the Department of Corrections and Rehabilitation, and authorizes the board to carry out various powers and duties relating to providing advice and leadership on criminal justice issues.

end insert
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This bill would require the board to establish and implement a program that focuses on community-based solutions for reducing recidivism. The bill would establish minimum criteria for the program and would require the board to establish an Executive Steering Committee, composed of 11 members, as specified, to develop guidelines for the administration of the program. The bill would define recidivism, for the purposes of these provisions, as a conviction of a new felony or misdemeanor committed within three years of release from custody or committed within three years of placement on supervision for a previous criminal conviction.

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(2) The Safe Neighborhoods and Schools Act establishes within the State Treasury the Safe Neighborhoods and Schools Fund to receive moneys transferred from the General Fund in an amount equal to the savings resulting from the implementation of the act, as specified. The act requires that 65% of the moneys in the Safe Neighborhoods and Schools Fund be allocated the Board of State and Community Corrections to administer a grant program to public agencies aimed at supporting specified types of programs, including diversion programs, for people in the criminal justice system with an emphasis on programs that reduce recidivism, as specified.

This bill would create the Second Chance Fund in the Statebegin delete Treasury.end deletebegin insert Treasury for the purpose of funding the above-described recidivism reduction program.end insert The bill would require the Board of State and Community Corrections to depositbegin delete an amount equal to 33% ofend delete the above-described moneys it receives from the Safe Neighborhoods and Schoolsbegin delete Fund.end deletebegin insert Fund into the Second Chance Fund.end insert The bill would also authorize the Second Chance Fund to receive moneys from any other federal, state, or local grant, or from any private donation. The bill wouldbegin delete require that 90% of the moneys in the Second Chance Fund be allocated to the board and 10% to the California Housing Finance Agency to administer grants for housing supports programs, as specified.end deletebegin insert prohibit the board from using the moneys in the fund to supplant existing programs and from spending more than 5% per year of the total moneys in the fund for administrative purposes.end insert

The bill would require the board to administer these provisions, and moneys in the fund would be continuously appropriated to the board for expenditure for these purposes. By creating a continuously appropriated fund, this bill would make an appropriation.

(3) The Safe Neighborhoods and Schools Act provides that its provisions may be amended by a statute, passed by a 23 vote of each house of the Legislature and signed by the Governor, that is consistent with and furthers the intent of the act.

This bill would declare that its provisions further the intent of the Safe Neighborhoods and Schools Act.

Vote: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin delete
P3    1

SECTION 1.  

Chapter 4 (commencing with Section 34650) is
2added to Part 2 of Division 24 of the Health and Safety Code, to
3read:

 

P4    1Chapter  4. Second Chance Program
2

 

3

34650.  

For the purposes of this chapter, the following
4definitions shall apply:

5(a) “Housing authority” means a public corporation established
6pursuant to Chapter 1 (commencing with Section 34200) or a
7housing-related entity established by a county.

8(b) “Rural or small county” means a county with a population
9of not more than 750,000.

10(c) “Housing supports program” means a program for providing
11housing-related assistance to individuals that utilizes
12evidence-based models, including those established in the federal
13Department of Housing and Urban Development’s Homeless
14Prevention and Rapid Re-Housing Program. A housing supports
15program may include, but shall not be limited to, both of the
16following:

17(1) Financial assistance, including rental assistance, security
18deposits, utility payments, moving cost assistance, and motel and
19hotel vouchers.

20(2) Housing stabilization and relocation, including outreach and
21engagement, landlord recruitment, case management, housing
22search and placement, legal services, and credit repair.

23

34651.  

(a) (1) A housing authority may develop a housing
24supports program. A housing authority implementing a housing
25supports program established pursuant to this section shall, at
26minimum, do all of the following:

27(A) Provide rental assistance, for a period of not less than three
28months and not more than 24 months, to persons who are formerly
29incarcerated.

30(B) Provide rapid rehousing services, including housing location
31services.

32(C) Conduct an individual needs assessment for each prospective
33tenant to determine the level of services provided and the length
34of assistance.

35(2) A housing authority may include a grant-repayment
36component in its housing supports program requiring a tenant to
37repay a portion of the aid received over time.

38(b) A housing authority may finance a housing supports program
39by any of the following means:

P5    1(1) Grants from the Board of State and Community Corrections,
2as specified in Section 34652, or the California Housing Finance
3Agency, as specified in Section 34653.

4(2) Existing funding sources, except that the housing authority
5shall not utilize moneys received pursuant to the federal Housing
6Choice Voucher Program set forth in Section 8 of the United States
7Housing Act of 1937 (42 U.S.C. Sec. 1437f) unless the tenant
8receiving housing supports would otherwise qualify for assistance
9under that program.

10(3) Establishing, operating, and maintaining a regional center
11pursuant to the United States Citizenship and Immigration Services’
12EB-5 Investment Program, contained in Section 203(b)(5) of the
13Immigration and Nationality Act (8 U.S.C. Sec. 1153(b)(5)) and
14Section 204.6 of Title 8 of the Code of Federal Regulations, in
15accordance with the requirements of the California Foreign
16Investment Program (Chapter 4.2 (commencing with Section 6315)
17of Division 7 of Title 1 of the Government Code). If the housing
18authority establishes a regional center pursuant to this paragraph,
19it shall utilize not less than 50 percent of the moneys received
20pursuant to the EB-5 Investment Program for the purposes of
21administering a housing supports program.

22(4) A grant repayment component of the housing supports
23program, as specified in paragraph (2) of subdivision (a).

24

34652.  

The Board of State and Community Corrections shall
25develop a request for proposal process for awarding grants to
26housing authorities that establish a housing supports program
27pursuant to this chapter. In awarding grants, the board shall do
28both of the following:

29(a) Give preference to housing authorities that demonstrate the
30ability to attract matching funds or leverage existing funds.

31(b) Give consideration to the geographic diversity of the housing
32authorities applying for grants.

33

34653.  

The California Housing Finance Agency shall develop
34a request for proposal process for awarding grants to housing
35authorities that establish a housing supports program pursuant to
36this chapter and are located in a rural or small county. In awarding
37grants, the board shall do both of the following:

38(a) Give preference to housing authorities that demonstrate the
39ability to attract matching funds or leverage existing funds.

P6    1(b) Give consideration to the geographic diversity of the housing
2authorities applying for grants.

3

34654.  

(a) The Second Chance Fund is hereby created in the
4State Treasury. The Board of State and Community Corrections
5shall be the entity responsible for administering this section.
6Moneys in the fund are hereby continuously appropriated without
7regard to fiscal year for the purposes of this chapter.

8(b) (1) The Board of State and Community Corrections shall
9deposit an amount equal to 33 percent of the moneys disbursed to
10it pursuant to paragraph (3) of subdivision (a) of Section 7599.2
11of the Government Code into the Second Chance Fund.

12(2) The Second Chance Fund may receive moneys from any
13other federal, state, or local grant, or from any private donation or
14 grant, for the purposes of this chapter.

15(c) Moneys in the Second Chance Fund shall be disbursed as
16follows:

17(1) Ninety percent to the Board of State and Community
18Corrections for the purposes of administering the grant program
19described in Section 34652.

20(2) Ten percent to the California Housing Finance Agency for
21the purpose administering the grant program described in Section
2234653.

end delete
23begin insert

begin insertSECTION 1.end insert  

end insert
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The Legislature finds and declares all of the
24following:

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25(a) California voters approved Proposition 47, known as the
26Safe Neighborhoods and Schools Act of 2014. The measure was
27enacted to ensure that prison spending is focused on violent and
28serious offenses, to maximize alternatives for non-violent and
29non-serious crime, and to invest the resulting savings into
30prevention and support programs.

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31(b) Research has shown that people in the criminal justice
32system disproportionately suffer from mental health issues and
33substance use disorders. Nationally, over half of all people in
34prisons or jails have experienced a mental health issue within the
35last year, and over half of women and 44 percent of men in jail
36have a drug or alcohol dependency.

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37(c) People in the criminal justice system and formerly
38incarcerated individuals have difficulty securing housing and
39employment following their incarceration. These challenges are
P7    1compounded for people living with mental health issues or
2substance use disorders.

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3(d) Offering people in the criminal justice system and formerly
4incarcerated individuals meaningful access to mental health
5services, substance use treatment services, housing-related job
6assistance, job skills training, and other community-based
7wrap-around social services has been shown to decrease the
8likelihood of future contact with law enforcement and the criminal
9justice system.

end insert
begin insert

10(e) Prioritizing the state savings realized by the implementation
11of the Safe Neighborhoods and Schools Act of 2014 for projects
12that combine mental health services, substance use treatment
13services, housing-related job assistance, job skills training, and
14other community-based wrap-around social services will help the
15state meaningfully reduce recidivism.

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16(f) By prioritizing projects that offer comprehensive
17interventions, the Legislature intends for public agencies,
18non-profits, and other community-based providers of services to
19people in the criminal justice system and formerly incarcerated
20individuals to leverage additional federal, state, and local funds
21for social investment resources.

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begin insert

22(g) The Legislature intends to promote the use of restorative
23justice principles in addressing recidivism.

end insert
24begin insert

begin insertSEC. 2.end insert  

end insert

begin insertArticle 5 (commencing with Section 6046) is added to
25Chapter 5 of Title 7 of Part 3 of the end insert
begin insertPenal Codeend insertbegin insert, to read:end insert

begin insert

26 

27Article begin insert5.end insert  Second Chance Program
28

 

29

begin insert6046.end insert  

(a) The purpose of this article is to build safer
30communities by investing in community-based programs, services,
31and initiatives for formerly incarcerated individuals in need of
32mental health and substance use treatment services.

33(b) The program established pursuant to this article shall be
34restricted to supporting mental health treatment, substance use
35treatment, and diversion programs for persons in the criminal
36justice system, with an emphasis on programs that reduce
37recidivism of persons convicted of less serious crimes, such as
38those covered by the Safe Neighborhoods and Schools Act of 2014,
39and those who have substance use and mental health problems.

P8    1(c) The Board of State and Community Corrections shall
2administer a program established pursuant to this article.

3

begin insert6046.1.end insert  

For the purposes of this article, the following
4definitions shall apply:

5(a) “Board” means the Board of State and Community
6Corrections.

7(b) “Committee” means an Executive Steering Committee of
8the board.

9(c) “Fund” means the Second Chance Fund established
10pursuant to Section 6046.2.

11(d) “Recidivism” means a conviction of a new felony or
12misdemeanor committed within three years of release from custody
13or committed within three years of placement on supervision for
14a previous criminal conviction.

15

begin insert6046.2.end insert  

(a) The Second Chance Fund is hereby created in the
16State Treasury. The board shall be responsible for administering
17the fund. Moneys in the fund are hereby continuously appropriated
18without regard to fiscal year for the purposes of this article.

19(b) (1) The Board of State and Community Corrections shall
20deposit the moneys disbursed to it pursuant to paragraph (3) of
21subdivision (a) of Section 7599.2 of the Government Code into the
22Second Chance Fund.

23(2) The Second Chance Fund may receive moneys from any
24other federal, state, or local grant, or from any private donation
25or grant, for the purposes of this article.

26(c) The board shall not use moneys in the fund to supplant
27funding to existing programs, but may use moneys in the fund to
28expand the capacity of an existing program.

29(d) The board shall not spend more than 5 percent annually of
30the moneys in the fund for administrative costs.

31

begin insert6046.3.end insert  

(a) The board shall establish and implement a program
32to carry out the purposes of this article that focuses on
33community-based solutions for reducing recidivism. The program
34shall, at minimum, do all of the following:

35(1) Restrict eligibility to projects designed to serve people who
36have been arrested, charged with, or convicted of criminal offense
37and have a history of mental health or substance use problems.

38(2) Restrict eligibility to projects that offer mental health
39services, substance use disorder treatment services, misdemeanor
40diversion programs, or some combination thereof.

P9    1(3) Prioritize projects that advance principles of restorative
2justice while demonstrating a capacity to reduce recidivism.

3(4) Prioritize projects that leverage other federal, state, and
4local funds or other social investments, including, but not limited
5to, the following sources of funding:

6(A) The Drug Medi-Cal Treatment Program (22 Cal. Code
7Regs. 51341.1, 51490.1, and 51516.1).

8(B) The Mental Health Services Act, enacted by Proposition 63
9at the November 2, 2004, general election, as amended.

10(C) Funds provided for in connection with the implementation
11of Chapter 15 of the Statutes of 2011.

12(D) The Community Corrections Performance Incentives Act
13(Stats. 2009, Ch. 608; Chapter 3 (commencing with Section 1228)
14of Title 8 of Part 2).

15(E) The tax credits established pursuant to Sections 12209,
1617053.57, and 23657 of the Revenue and Taxation Code.

17(F) The federal Department of Housing and Urban Development
18Emergency Solutions Grant program (42 U.S.C. Sec. 11371 et
19seq.).

20(G) The federal Department of Veterans Affairs Supportive
21Services for Veteran Families program (38 U.S.C. Sec. 2044).

22(H) Social Innovation Funds established by the Corporation
23for National and Community Service pursuant to Section 12653k
24of Title 42 of the United States Code.

25(I) The Edward Byrne Memorial Justice Assistance Grant
26Program (42 U.S.C. Sec. 3750 et seq.).

27(5) Ensure program guidelines and terms provide threshold or
28scoring criteria, or both, that strongly prioritize project
29applications that ensure provision of the following:

30(A) Mental health services, substance use disorder treatment
31services, misdemeanor diversion programs, or some combination
32thereof.

33(B) Housing-related assistance that utilizes evidence-based
34models, including, but not limited to, those recommended by the
35federal Department of Housing and Urban Development.
36Housing-related assistance may include, but is not limited to, the
37following:

38(i) Financial assistance, including security deposits, utility
39payments, moving-cost assistance, and up to 24 months of rental
40assistance.

P10   1(ii) Housing stabilization assistance, including case
2management, relocation assistance, outreach and engagement,
3landlord recruitment, housing navigation and placement, and
4credit repair.

5(C) Other community-based wrap-around services, including,
6but not limited to, job skills training, case management, and civil
7legal services.

8(6) Promote proposals that place an emphasis on servicing
9persons arrested for, charged with, or convicted of a less serious
10offense, but with minimal restrictions related to their prior criminal
11history.

12(7) Promote public and private partnerships.

13(8) Promote proposals that include community-based
14philanthropic and non-profit organizations.

15(9) Promote interagency and regional collaborations.

16(10) Consider geographic diversity.

17(b) The board shall establish a committee to assist in developing
18guidelines for administration of the program established pursuant
19to subdivision (a) consistent with this article. The committee shall
20consist of 11 members and shall be composed as follows:

21(1) A formerly incarcerated individual who has received or is
22receiving mental health or substance use disorder treatment.

23(2) A mental health expert.

24(3) A substance use disorders expert.

25(4) A housing programs expert.

26(5) A homelessness prevention expert.

27(6) Two community-based social service providers with
28experience in providing services to formerly incarcerated
29individuals and reducing recidivism.

30(7) A public safety expert.

31(8) An academic expert with a history of research and expertise
32on the best practices for reducing recidivism.

33(9) A member of the board.

34(10) An additional expert, to be selected by the board.

end insert
35

begin deleteSEC. 2.end delete
36begin insertSEC. 3.end insert  

The Legislature finds and declares that this act furthers
37the intent of the Safe Neighborhoods and Schools Act enacted by
38Proposition 47 at the November 4, 2014, general election.



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