Amended in Senate August 31, 2015

Amended in Assembly May 21, 2015

Amended in Assembly April 30, 2015

Amended in Assembly April 20, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1056


Introduced by Assembly Member Atkins

(Principal coauthor: Senator De León)

February 26, 2015


An act tobegin insert amend Sections 97013 and 97015 of the Government Code, and toend insert add Article 5 (commencing with Section 6046) to Chapter 5 of Title 7 of Part 3 of the Penal Code, relating to recidivism reduction, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 1056, as amended, Atkins. Second Chance Program.

(1) Existingbegin delete 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 deletebegin insert law, until January 1, 2020, establishes the Social Innovation Financing Program, and requires the Board of State and Community Corrections to administer the program. Existing law, among other things, authorizes the board, upon appropriation of funds by the Legislature for deposit into the Recidivism Reduction Fund, to award grants in amounts of not less than $500,000 and not more than $2,000,000 to each of 3 counties, selected as specified, for the purpose of entering into a pay for success or social innovation financing contract, pursuant to which private investors agree to provide financing to service providers to achieve social outcomes agreed upon in advance and the government agency that is a party to the contractual agreement agrees to pay a return on the investment to the investors if successful programmatic outcomes are achieved by the service provider. Existing law limits the total amount of the grants awarded to $5,000,000. Existing law requires each county receiving an award to report annually to the Governor and Legislature on the status of its program. Existing law requires the board to compile the county reports and submit a summary report to the Governor and the Legislature annually.end insert

begin insert

This bill would extend the operation of that program and the reporting requirements until January 1, 2022.

end insert

This bill wouldbegin insert alsoend insert require the board to administer a competitive grant program that focuses on community-based solutions for reducing recidivism. The bill would establish minimum criteria for the grant program and would require the board to establish anbegin delete Executive Steering Committee, composed of 13 members,end deletebegin insert executive steering committee,end insert as specified, tobegin delete adoptend deletebegin insert make recommendations regarding the design, efficacy, and viability of proposals and to make recommendations onend insert guidelines for the submission of proposals for the grant program, including threshold or scoring criteria, or both. Among other things, the bill would require those guidelines to prioritize proposals that advance principles of restorative justice while demonstrating a capacity to reduce recidivism, and that leverage certain other federal, state, and local funds or social investments. The bill would define recidivism, for the purposes of these provisions, as a conviction of a new felony or misdemeanor committed within 3 years of release from custody or committed within 3 years of placement on supervision for a previous criminal conviction.

(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 State Treasury for the purpose of funding the above-described recidivism reduction program. The bill would require thebegin delete Board of State and Community Corrections to deposit the above-described moneys it receivesend deletebegin insert Controller, upon order of the Director of Finance, to transfer the moneys available to the Board of State and Community Correctionsend insert from the Safe Neighborhoods and Schools Fund into the Second Chance Fund. 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 would 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.

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:

P3    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) California voters approved Proposition 47, known as the
4Safe Neighborhoods and Schools Act of 2014. The measure was
5enacted to ensure that prison spending is focused on violent and
6serious offenses, to maximize alternatives for nonviolent and
7nonserious crime, and to invest the resulting savings into prevention
8and support programs.

9(b) Research has shown that people in the criminal justice system
10disproportionately suffer from mental health issues and substance
11use disorders. Nationally, over one-half of all people in prisons or
12jails have experienced a mental health issue within the last year,
P4    1and over one-half of women and 44 percent of men in jail have a
2drug or alcohol dependency.

3(c) People in the criminal justice system and formerly
4incarcerated individuals have difficulty securing housing and
5employment following their incarceration. These challenges are
6compounded for people living with mental health issues or
7substance use disorders. As a result, many formerly incarcerated
8people, especially those with mental health issues or substance
9abuse disorders experience homelessness. Experiencing
10homelessness greatly increases the likelihood that a formerly
11incarcerated person will recidivate.

12(d) Offering people in the criminal justice system and formerly
13incarcerated individuals meaningful access to mental health
14services, substance use treatment services, housing, housing-related
15job assistance, job skills training, and other community-based
16supportive services has been shown to decrease the likelihood of
17future contact with law enforcement and the criminal justice
18system.

19(e) Prioritizing the state savings realized by the implementation
20of the Safe Neighborhoods and Schools Act of 2014 for projects
21that combine mental health services, substance use treatment
22services, housing, housing-related job assistance, job skills training,
23and other community-based supportive services will help the state
24meaningfully reduce recidivism.

25(f) By prioritizing projects that offer comprehensive
26interventions, the Legislature intends for public agencies,
27 nonprofits, and other community-based providers of services to
28people in the criminal justice system and formerly incarcerated
29individuals to leverage additional federal, state, and local funds
30for social investment resources.

31(g) The Legislature intends to promote the use of restorative
32justice principles in addressing recidivism.

33begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 97013 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
34read:end insert

35

97013.  

(a) Each county receiving an award shall report
36annually to the board on the status of its ongoing social innovation
37financing program. The report shall also contain an accounting of
38the moneys awarded.

39(b) The board shall compile the county reports and submit a
40summary report to the Governor and Legislature annually.

P5    1(c) A report made pursuant to this section shall be made in
2accordance with the requirements of Section 9795.

3(d)  This section shall remain in effect only until January 1,
4begin delete 2020,end deletebegin insert 2022,end insert and as of that date is repealed, unless a later enacted
5statute, that is enacted before January 1,begin delete 2020,end deletebegin insert 2022,end insert deletes or
6extends that date.

7begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 97015 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
8read:end insert

9

97015.  

This title shall remain in effect only until January 1,
10begin delete 2020,end deletebegin insert 2022,end insert and as of that date is repealed, unless a later enacted
11statute, that is enacted before January 1,begin delete 2020,end deletebegin insert 2022,end insert deletes or
12extends that date.

13

begin deleteSEC. 2.end delete
14begin insertSEC. 4.end insert  

Article 5 (commencing with Section 6046) is added
15to Chapter 5 of Title 7 of Part 3 of the Penal Code, to read:

16 

17Article 5.  Second Chance Program
18

 

19

6046.  

(a) The purpose of this article is to build safer
20communities by investing in community-based programs, services,
21and initiatives for formerly incarcerated individuals in need of
22mental health and substance use treatment services.

23(b) The program established pursuant to this article shall be
24restricted to supporting mental health treatment, substance use
25treatment, and diversion programs for persons in the criminal
26justice system, with an emphasis on programs that reduce
27recidivism of persons convicted of less serious crimes, such as
28those covered by the Safe Neighborhoods and Schools Act of 2014,
29and those who have substance use and mental health problems.

30(c) The Board of State and Community Corrections shall
31administer a grant program established pursuant to this article.

32

6046.1.  

For the purposes of this article, the following
33definitions shall apply:

34(a) “Board” means the Board of State and Community
35Corrections.

begin delete

36(b) “Committee” means an Executive Steering Committee of
37the board.

end delete
begin delete

38(c)

end delete

39begin insert(end insertbegin insertb)end insert “Fund” means the Second Chance Fund established pursuant
40to Section 6046.2.

begin delete

P6    1(d)

end delete

2begin insert(end insertbegin insertc)end insert “Public agency” means a county, city, whether a general
3law city or a chartered city, or city and county, the duly constituted
4governing body of an Indian reservation or rancheria, a school
5district, municipal corporation, district, political subdivision, or
6any board, commission, or agency thereof, entities that are
7legislative bodies of a local agency pursuant to subdivision (c) or
8(d) of Section 54952 of the Government Code, a housing authority
9organized pursuant to Part 2 (commencing with Section 34200)
10of Division 24 of the Health and Safety Code, a state agency, public
11district, or other political subdivision of the state, or any
12instrumentality thereof, which is authorized to engage in or assist
13in the development or operation of housing for persons and families
14of low or moderate income.

begin delete

15(e)

end delete

16begin insert(end insertbegin insertd)end insert “Recidivism” means a conviction of a new felony or
17misdemeanor committed within three years of release from custody
18or committed within three years of placement on supervision for
19a previous criminal conviction.

20

6046.2.  

(a) The Second Chance Fund is hereby created in the
21State Treasury. The board shall be responsible for administering
22the fund. Moneys in the fund are hereby continuously appropriated
23without regard to fiscal year for the purposes of this article.

24(b) (1) Thebegin delete Board of State and Community Corrections shall
25deposit the moneys disbursed to itend delete
begin insert Controller, upon order of the
26Director of Finance, shall transfer moneys available to the Board
27of State and Community Correctionsend insert
pursuant to paragraph (3) of
28subdivision (a) of Section 7599.2 of the Government Code into
29the Second Chance Fund.

30(2) The Second Chance Fund may receive moneys from any
31other federal, state, or local grant, or from any private donation or
32grant, for the purposes of this article.

33(c) The board shall not spend more than 5 percent annually of
34the moneys in the fund for administrative costs.

35

6046.3.  

(a) The board shall administer a competitive grant
36program to carry out the purposes of this article that focuses on
37community-based solutions for reducing recidivism. The grant
38program shall, at minimum, do all of the following:

39(1) Restrict eligibility to proposals designed to serve people
40who have been arrested, charged with, or convicted ofbegin insert aend insert criminal
P7    1offense and have a history of mental health or substance use
2disorders.

3(2) Restrict eligibility to proposals that offer mental health
4services, substance use disorder treatment services, misdemeanor
5diversion programs, or some combination thereof.

6(3) Restrict eligibility to proposals that have a public agency as
7the lead applicant.

8(b) The board shallbegin delete create a committee to develop guidelines
9for administration of the grant program, consistent with the
10purposes of this article. The committee shall adoptend delete
begin insert form an
11executive steering committee that includes, but is not limited to, a
12balanced and diverse membership from relevant state and local
13government entities, community-based treatment and service
14providers, and the formerly incarcerated community. The
15committee shall have expertise in homelessness and housing,
16behavioral health and substance abuse treatment, and effective
17rehabilitative treatment for adults and juveniles. The committee
18shall make recommendations regarding the design, efficacy, and
19viability of proposals, and make recommendations onend insert
guidelines
20for the submission of proposals, including threshold or scoring
21criteria, or both, that do all of the following:

22(1) Prioritize proposals that advance principles of restorative
23justice while demonstrating a capacity to reduce recidivism.

24(2) Prioritize proposals that leverage other federal, state, and
25local funds or other social investments, such as the following
26sources of funding:

27(A) The Drug Medi-Cal Treatment Program (22 Cal. Code Regs.
2851341.1, 51490.1, and 51516.1).

29(B) The Mental Health Services Act, enacted by Proposition 63
30at the November 2, 2004, general election, as amended.

31(C) Funds provided for in connection with the implementation
32of Chapter 15 of the Statutes of 2011.

33(D) The Community Corrections Performance Incentives Act
34(Stats. 2009, Ch. 608; Chapter 3 (commencing with Section 1228)
35of Title 8 of Part 2).

36(E) The tax credits established pursuant to Sections 12209,
3717053.57, and 23657 of the Revenue and Taxation Code.

38(F) The federal Department of Housing and Urban Development
39funds, such as the Emergency Solutions Grant program (42 U.S.C.
40 Sec. 11371 et seq.).

P8    1(G) The federal Department of Veterans Affairs Supportive
2Services for Veteran Families program (38 U.S.C. Sec. 2044).

3(H) Social Innovation Funds established by the Corporation for
4National and Community Service pursuant to Section 12653k of
5Title 42 of the United States Code.

6(I) The Edward Byrne Memorial Justice Assistance Grant
7Program (42 U.S.C. Sec. 3750 et seq.).

8(3) Prioritize proposals that provide for all of the following:

9(A) Mental health services, substance use disorder treatment
10services, misdemeanor diversion programs, or some combination
11thereof.

12(B) Housing-related assistance that utilizes evidence-based
13models, including, but not limited to, those recommended by the
14federal Department of Housing and Urban Development.
15Housing-related assistance may include, but is not limited to, the
16following:

17(i) Financial assistance, including security deposits, utility
18payments, moving-cost assistance, and up to 24 months of rental
19assistance.

20(ii) Housing stabilization assistance, including case management,
21relocation assistance, outreach and engagement, landlord
22recruitment, housing navigation and placement, and credit repair.

23(C) Other community-based supportive services, such as job
24skills training, case management, and civil legal services.

25(4) Prioritize proposals that leverage existing contracts,
26partnerships, memoranda of understanding, or other formal
27relationships to provide one or more of the services prioritized in
28paragraph (3).

29(5) Prioritize proposals put forth by a public agency in
30partnership with a philanthropic or nonprofit organization.

31(6) Prioritize proposals that promote interagency and regional
32collaborations.

33(7) Consider ways to promote services for people with offenses
34identical or similar to those addressed by the Safe Neighborhoods
35and Schools Act of 2014, without precluding assistance to a person
36with other offenses in his or her criminal history.

37(8)  Consider geographic diversity.

38(9) Consider appropriate limits for administrative costs and
39overhead.

40(10) Consider proposals that provide services to juveniles.

P9    1(11) Permit proposals to expand the capacity of an existing
2 program and prohibit proposals from using the fund to supplant
3funding for an existing program.

begin delete

4(c) The committee shall consist of 13 members and shall be
5composed as follows:

6(1) A formerly incarcerated individual who has received or is
7receiving mental health or substance use disorder treatment.

8(2) A family member of a current or formerly incarcerated
9individual.

10(3) A mental health expert, appointed by the Senate Committee
11on Rules.

12(4) A substance use disorders expert, appointed by the Speaker
13of the Assembly.

14(5) A housing programs expert.

15(6) An expert on homelessness.

16(7) Two community-based supportive service providers with
17experience in providing services to formerly incarcerated
18individuals and reducing recidivism.

19(8) A community supervision expert.

20(9) An academic expert with a history of research and expertise
21on the best practices for reducing recidivism.

22(10) A member of the board.

23(11) A public agency administrator.

24(12) An additional expert, to be selected by the board.

end delete
25

begin deleteSEC. 3.end delete
26begin insertSEC. 5.end insert  

The Legislature finds and declares that this act furthers
27the intent of the Safe Neighborhoods and Schools Act enacted by
28Proposition 47 at the November 4, 2014, general election.



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