BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 1056


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          Date of Hearing:  April 29, 2015


               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT


                                   Ed Chau, Chair


          AB 1056  
          (Atkins) - As Amended April 20, 2015


          SUBJECT:  Second Chance Program


          SUMMARY:  Establishes the Second Chance Program (the Program) to  
          build safer communities by investing in community-based  
          programs, services, and initiatives for formerly incarcerated  
          individuals in need of mental health and substance use treatment  
          services.  Specifically, this bill:  


          1)Includes legislative findings.


          2)Directs the Board of State and Community Corrections (BSCC) to  
            administer the program. 


          3)Includes the following definitions: 


             a)   "Board" means the BSCC;


             b)   "Committee" means an Executive Steering Committee of the  
               board; 









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             c)   "Fund" means the Second Chance Fund; and


             d)   "Recidivism" means 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 of a previous criminal conviction.   


          1)Establishes Second Chance Fund (the Fund) within the State  
            Treasury.


          2)Provides that the BSCC is responsible for administering the  
            Fund.


          3)Continuously appropriates moneys in the Fund without regard to  
            fiscal year. 


          4)Directs the BSCC to deposit moneys disbursed to it by the  
            State Controller into the Fund.


          5)Provides that the Fund can receive moneys from any other  
            federal, state and local grants or any private donation or  
            grants.


          6)Provides that the BSCC cannot use moneys in the fund to  
            supplant funding to existing programs but can use moneys in  
            the fund to expand the capacity of existing programs. 


          7)Caps the amount the BSCC can spend on administrative costs at  
            5% annually. 









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          8)Requires BSCC to establish and implement a Program that  
            focuses on community-based solutions for reducing recidivism  
            and, at a minimum, does all of the following: 


             a)   Restricts eligibility to projects designed to serve  
               people who have been arrested, charged with, or convicted  
               of criminal offenses and have a history of mental health or  
               substance use problems;


             b)   Restricts eligibility to projects that offer mental  
               health services, substance use disorder treatment services,  
               misdemeanor diversion programs, or some combination of  
               those;


             c)   Prioritizes projects that advance principles of  
               restorative justice while demonstrating a capacity to  
               reduce recidivism;


             d)   Prioritizes projects that leverage other federal, state,  
               and local funds or other social investments, including but  
               not limited to the following sources:


                  i.        The Drug Medi-Cal Treatment Program;


                  ii.       Mental Health Services Act (MHSA);


                  iii.      Community Corrections Performance Incentives  
                    Act;


                  iv.       California Organized Investment Network (COIN)  








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                    and Community Development Financial Institutions  
                    (CDFI) Tax Credit Program;


                  v.        Department of Housing and Urban Development  
                    (HUD) Emergency Solutions Grant program;


                  vi.       Department of Veterans Affairs Supportive  
                    Services for Veterans Families program;


                  vii.      Social Innovation Funds established by the  
                    Corporation for National Community Service; and 


                  viii.     Edward Byrne Memorial Justice Assistance Grant  
                    Program. 


             a)   Ensures that Program guidelines and terms provide  
               threshold or scoring criteria, or both, that strongly  
               prioritize project applications that ensure provision of  
               the following:


                  i.        Mental health services, substance use disorder  
                    treatment services, misdemeanor diversion programs or  
                    some combination of those;


                  ii.       Housing-related assistance that utilizes  
                    evidence-based models including but not limited to  
                    those recommended by HUD, including but not limited  
                    to:


                    a.          Financial assistance, including security  
                      deposits, utility payments, moving-cost assistance  








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                      and up to 24 months of rental assistance;


                    b.          Housing stabilization assistance,  
                      including case management, relocation assistance,  
                      outreach and engagement, landlord recruitment,  
                      housing navigation and placement, and credit repair;  
                      and


                  i.        Other community-based and wrap-around  
                    services, including but not limited to, job skills  
                    training, case management, and civil legal services.


             a)   Promote proposals that place an emphasis on serving  
               persons arrested for, charged with or convicted of a less  
               serious offense, with minimal restrictions related to their  
               prior criminal history;


             b)   Promotes public and private partnerships;


             c)   Promotes proposals that include community-based  
               philanthropic and non-profit organizations;


             d)   Promotes interagency and regional collaborations;


             e)   Considers geographic diversity; and


             f)   Requires the BSCC to establish a committee consisting of  
               the following members, to assist in developing guidelines  
               for administering the program:










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                  i.        A formerly incarcerated individual who has  
                    received mental health or substance use disorder  
                    treatment;


                  ii.       A mental health expert;


                  iii.      A substance use disorders expert;


                  iv.       A housing programs expert;


                  v.        A homelessness prevention expert;


                  vi.       Two community-based social service providers  
                    with experience in providing services to formerly  
                    incarcerated individuals and reducing recidivism;


                  vii.      A public safety expert;


                  viii.     An academic expert with a history of research  
                    and expertise on the best practices for reducing  
                    recidivism;


                  ix.       A member of the BSCC; and 


                  x.        An additional expert to be selected by the  
                    BSCC. 


          EXISTING LAW:  









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          1)Proposition 47: the Safe Neighborhood and Schools Act of 2014  
            (Proposition 47) requires a misdemeanor sentence instead of  
            felony for petty theft, receiving stolen property, and forging  
            or writing bad checks when the value or amount involved is  
            $950 or less. Requires a misdemeanor sentence instead of  
            felony for certain drug possession offenses. Allows a felony  
            sentence for these offenses if a person has a previous  
            conviction for crimes such as rape, murder or child  
            molestation, or is a registered sex offender. Requires  
            resentencing for persons serving felony sentences for these  
            offenses unless the court finds an unreasonable public safety  
            risk. Applies the savings to mental health and drug treatment  
            programs, K-12 schools, and crime victims 


          2)Establishes the Safe Neighborhoods and Schools Fund within the  
            State Treasury and continuously appropriates moneys in the  
            fund (Government Code 7599).


          3)Requires the Director of Finance to calculate the savings that  
            accrue to the state from the implementation of Proposition 47  
            (Government Code 7599.2).  


          4)Requires the State Controller to disburse moneys from the Safe  
            Neighborhoods and Schools Fund by August 15 of each fiscal  
            year beginning in 2016 as follows:


             a)   Twenty-five percent to the State Department of  
               Education, to administer a grant program to public agencies  
               aimed at improving outcomes for public school pupils in  
               kindergarten and grades one to twelve, inclusive, by  
               reducing truancy and supporting students who are at risk of  
               dropping out of school or are victims of crime.










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             b)   Ten percent to the California Victim Compensation and  
               Government Claims Board, to make grants to trauma recovery  
               centers to provide services to victims of crime pursuant to  
               Section 13963.1 of the Government Code.


             c)   Sixty-five percent to the BSCC, to administer a grant  
               program to public agencies aimed at supporting mental  
               health treatment, substance abuse treatment, and diversion  
               programs for people in the criminal justice system, with an  
               emphasis on programs that reduce recidivism of people  
               convicted of less serious crimes, such as those covered by  
               this measure, and those who have substance abuse and mental  
               health problems (Government Code 7599.2).


          FISCAL EFFECT:  Unknown. 


          COMMENTS:  


           Background  :  In response to prison overcrowding directives as  
          well as recent public safety reforms such as AB 109 (Budget  
          Committee), Chapter 15, Statutes of 2011 and Proposition 47,  
          unprecedented numbers of formerly incarcerated individuals are  
          returning to our communities.  Nationally, over half of people  
          in prisons or jails have experienced a mental health issue  
          within the last year, and over half of women in jail and 44% of  
          men in jail have a drug or alcohol dependency. As a result of  
          these factors, many detained in local jails are chronic  
          offenders who frequently cycle in and out of the jail facility  
          and other public crisis systems in part because of their long  
          histories of residential instability or homelessness, chronic  
          mental and physical health issues, and substance abuse  
          disorders.  A pilot study in Ohio placed ex-offenders reentering  
          the community into a comprehensive program which addressed their  
          mental health, substance abuse, and housing needs and provided  
          other wrap-around services.  The study found that risk of  








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          re-arrest decreased, time in the community between arrests  
          increased, and more behavioral health services could be  
          provided.   


          Proposition 47:   In 2014, the voters approved Proposition 47  
          which would reduce the penalties for certain non-violent,  
          nonserious drug and property crimes and require the resulting  
          state savings to be used to pay for mental health and substance  
          use services, truancy, dropout prevention, and victim crimes.  
          DOF will calculate the savings that accrue to the state from the  
          implementation of Proposition 47.  Proposition 47 requires the  
          savings be distributed among state agencies as follows:      


                 Twenty-five percent to the State Department of  
               Education, to administer a grant program to public agencies  
               aimed at improving outcomes for public school pupils in  
               kindergarten and grades one to twelve, inclusive, by  
               reducing truancy and supporting students who are at risk of  
               dropping out of school or are victims of crime.


                 Ten percent to the California Victim Compensation and  
               Government Claims Board, to make grants to trauma recovery  
               centers to provide services to victims of crime pursuant to  
               Section 13963.1 of the Government Code.


                 Sixty-five percent to the BSCC, to administer a grant  
               program to public agencies aimed at supporting mental  
               health treatment, substance abuse treatment, and diversion  
               programs for people in the criminal justice system, with an  
               emphasis on programs that reduce recidivism of people  
               convicted of less serious crimes, such as those covered by  
               Proposition 47, and those who have substance abuse and  
               mental health problems.










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          The Legislature has authority under the Proposition to determine  
          how the funds are used by the departments that receive them and  
          how much oversight to provide to determine if the funds are used  
          effectively.  The Legislative Analyst's Office (LAO) estimates  
          that the savings resulting from Proposition 47, while subject to  
          significant uncertainty, will likely range from $100 million to  
          $200 million beginning in 2016-17.    


          AB 1056 provides direction to the BSCC on how to spend the 65%  
          in savings directed to it to support mental health and substance  
          use treatment. The bill sets out minimum criteria that the BSCC  
          must use when creating the program and how to evaluate  
          applicants based on the types of people served, services that  
          should be funded, other funding sources that could be leveraged,  
          and the level of geographic diversity, among other factors.     


           Housing provisions of this bill  : AB 1056 would direct the BSCC  
          to ensure that the Program guidelines and terms provide  
          threshold or scoring criteria, or both, that strongly prioritize  
          project applications that include rapid re-housing services.  
          Modeled after the federal Homelessness Prevention and Rapid  
          Re-Housing Program (HPRP) program, these services can include  
          financial assistance, including security deposits, utility  
          payments, and moving-cost assistance.  In addition, projects may  
          provide housing stabilization assistance, including case  
          management, relocation assistance, outreach and engagement,  
          landlord recruitment, housing navigation and placement, and  
          credit repair.  The amount of rental assistance would be capped  
          at 24 months.  


          The bill also directs BSCC to prioritize through threshold or  
          scoring criteria, applications for projects that provide mental  
          health services, substance use disorder treatment services,  
          misdemeanor diversion programs, job skills training, case  
          management, and civil legal services. Applicants could provide  
          these services with the rapid re-housing services described  








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          above or without. 


          AB 1056 also requires the BSCC to establish a ten person  
          committee to help develop the guidelines for the program.  
          Included on the committee are two housing representatives: a  
          housing programs expert and a homelessness prevention expert. 


           Purpose of this bill  : According to the author, "people in the  
          criminal justice system and formerly incarcerated individuals  
          have difficulty securing housing and employment upon leaving  
          incarceration. These challenges are compounded for people who  
          live with mental health issues or substance use disorders.   
          California voters approved Proposition 47, known as the Safe  
          Neighborhood and Schools Act of 2014. The measure was enacted to  
          ensure that prison spending is focused on violent and serious  
          offenses, to maximize alternatives for non-serious, nonviolent  
          crime, and to invest the savings generated from Proposition 47  
          into prevention and support programs.  However, additional  
          guidance is needed on how to invest those savings to further the  
          goals of the Proposition.  AB 1056 provides guidance to the BSCC  
          on the establishment of a competitive grant program through  
          which 65% of the anticipated Proposition 47 savings (earmarked  
          for mental health, substance abuse, and diversion programs) will  
          be distributed to the community.  The grant program will promote  
          comprehensive, collaborative projects that serve people who have  
          been arrested, charged with, or convicted of an offense and have  
          a history of mental health issues."   


           Arguments in support  : Various organizations support AB 1056 and  
          the goal of establishing a stable housing source for formerly  
          incarcerated individuals. The National Association of Social  
          Workers writes, "housing supports provide a broad range of  
          services from financial assistance for rent and security  
          deposits to case management and legal services. Supporters also  
          include mental health, substance abuse, and employment services.  
          This is an important necessary step for these former offenders  








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          and it truly gives them a second chance at success."  


          Committee amendments:


                1)     Page 7, line 2, after "disorders." insert "As a  
 
                 result, many formerly incarcerated people, especially  
 
                 those with mental health issues or substance use  
 
                 disorders, experience homelessness. Experiencing  
 
                 homelessness greatly increases the likelihood that a  
 
                 formerly incarcerated person recidivates."



               2)     Page 7, line 5 after "substance use treatment  
 
                 services," insert "housing,"



               3)     Page 7, line 7 strike "wrap-around social " and  
 
                 insert "supportive"



               4)     Page 7, line 13 after "substance use treatment  
 
                 services," insert "housing,"



               5)     Page 7, line 14 strike "wrap-around social " and  








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                 insert "supportive"



               6)     Page 8, line 2 after "administer a " insert "grant "



               7)     Page 8, line 11 insert "(d) "Public agency" means a  
 
                 county; city, whether general law or chartered; city and  
 
                 county; the duly constituted governing body of an Indian  
 
                 reservation or rancheria; school district; municipal  
 
                 corporation; district; political subdivision; or any  
 
                 board, commission or agency thereof; entities that are  
 
                 legislative bodies of a local agency pursuant to  
 
                 subdivisions (c) and (d) of Section 54952 of the  
 
                 Government Code; housing authority organized pursuant to  
 
                 Part 2 (commencing with Section 34200) of Division 24 of  
 
                 the Health and Safety Code, and also includes any state  
 
                 agency, public district or other political subdivision of  
 
                 the state, and any instrumentality thereof, which is  
 
                 authorized to engage in or assist in the development or  
 
                 operation of housing for persons and families of low or  
 








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                 moderate income."





               8)     Page 8, line 29 strike "(d) The Board shall not use  
 
                 moneys allocated to the Fund to supplant funding to  
 
                 existing programs, but may be used to expand the capacity  
 
                 of an existing program."





               9)     Page 8, line 31 strike "establish and implement a"  
 
                 and insert "administer a competitive grant"



               10)    Page 8, line 33 after "The" insert "grant"

               11)    Page 8, line 35 strike "projects" and insert  
 
                 "proposals"



               12)    Page 8, line 37 strike "problems" and insert  
 
                 "disorders"



               13)    Page 8 line 38 strike "projects" and insert  








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                 "proposals"



               14)    Page 8 line 40 after "combination theorof" insert 



                 "(3) Restrict eligibility to proposals that have a public  
 
                 agency as one of the applicants. 





                 (b) The Board shall create a Committee to develop  
 
                 guidelines for administration of this program, consistent  
 
                 with the purposes of this article. The Committee shall  
 
                 adopt guidelines for the submission of proposals,  
 
                 including threshold or scoring criteria or both, that do  
 
                 each of the following:"





               15)    Page 9 line 1 strike "projects" and insert  
 
                 "proposals"











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               16)    Page 9 line 3 strike "projects" and insert  
 
                 "proposals"



               17)    Page 9 line 17 after "Urban Development" insert  
 
                 "funds, such as the"



               18)    Page 9 line 27 strike "Ensure program guidelines and  
 
                 terms provide threshold or scoring criteria, or both,  
 
                 that strongly prioritize project applications that ensure  
 
                 provision of the following:" and insert "Prioritize  
 
                 proposals that provide for each of the following:" 



               19)    Page 10 line 5 strike "wrap around services,  
 
                 including but not limited to," and insert "supportive  
 
                 services such as"



               20)    Page 10, line 8 strike 



                 "Promote proposals that place an emphasis on servicing  
 
                 persons arrested for, charged with, or convicted of a  








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                 less serious offense, but with minimal restrictions  
 
                 related to their prior criminal history.





                 Promote public and private partnerships.





                 Promote proposals that include community-based  
 
                 philanthropic and non-profit organizations.





                 Promote interagency and regional collaborations.





                 Consider geographic diversity."





               21)    Page 10, line 8 insert 











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                 "Prioritize proposals that leverage existing contracts,  
                                                           
                 partnerships, memoranda of understanding or other formal  
 
                 relationships to provide one or more of the services  
 
                 prioritized in subsection (3). 





                 Prioritize proposals put forth by a public agency in  
 
                 partnership with philanthropic or nonprofit  
 
                 organizations.





                 Prioritize proposals that promote interagency and  
 
                 regional collaboration.





                 Consider ways to promote services for people with  
 
                 offenses identical to or similar to those addressed by  
 
                 the Safe Neighborhoods and Schools Act of 2014 without  
 
                 precluding assistance to people with other offenses in  
 
                 their criminal history.








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                 Consider geographic diversity.





                 Consider appropriate limits for administrative costs and  
 
                 overhead.





                 Consider proposals that provide services to juveniles.





                 Permit proposals to expand the capacity of an existing  
 
                 program but prohibit proposals from using the fund to  
 
                 supplant funding for an existing program."





               22)                                  Page 10,  
 
                 line 17 strike "board shall establish a  
 








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                 committee to assist in developing guidelines  
 
                 for administration of the program established  
 
                 pursuant to subdivision (a) consistent with  
 
                 this article. The " 

               23)                                  Page 10,  
 
                 line 20 strike "11" and insert "13"  

               24)    Page 10, line 22 after "treatment." insert  
 
                 " (2) A family member of a current or formerly  
 
                 incarcerated individual."

               25)    Page 10, line 23 after "expert" insert ",  
 
                 appointed by the California Senate."

               26)    Page 10, line 24 after "expert" insert ",  
 
                 appointed by the California Assembly."

               27)    Page 10, line 26 strike "A homelessness  
 
                 prevention expert."  and insert "An expert on  
 
                 homelessness."

               28)    Page 10, line 27 strike "social" and  
 
                 insert "supportive"

               29)    Page 10, line 30 strike "A public safety  
 
                 expert" and insert "A community supervision  








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                 expert"

               30)    Page 10, line 33 after "board." insert "A  
 
                 public agency administrator."



          REGISTERED SUPPORT / OPPOSITION:




          Support


          A Community of Friends
          Adobe Communities
          AFSCME, AFL-CIO
          All of Us or None
          Area Congregations Together
          BIA of Southern California Los Angeles/Ventura Chapter
          California Building Industry Association (CBIA)
          California Chamber of Commerce
          California Community Foundation
          California Council of Community Mental Health Agencies 
          California Housing Consortium
          California Immigrant Policy Center
          California Police Chiefs Association
          Californians for Safety and Justice
          City of San Francisco
          Coalition for Economic Survival
          Community Action North Bay
          Community Corporation of Santa Monica
          Community Housing Opportunities Corporation
          Community Resource Center
          Corporation for Supportive Housing
          County of San Francisco








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          Department of Housing and Community Development of Los Angeles
          Drug Policy Alliance
          East LA Community Corporation
          Enterprise Community Partners
          Heaven's Windows
          Highridge Costa Housing Partners, LLC
          Highridge Costa Investors, LLC
          Housing Authority of the City of Los Angeles
          Housing California
          Housing of Merit
          Hunger Advocacy Network
          Inquilinos Unidos
          Jewish Family Service of San Diego
          Legal Services for Prisoners with Children (LSPC)
          LINC Housing
          Los Angeles Business School
          Los Angeles Community Action Network (LA CAN)
          Mayor, City of Long Beach-Robert Garcia
          Mayor, City of Los Angeles-Eric Garcetti
          Mayor, City of Oakland-Libby Schaaf
          Mayor, City of Sacramento-Kevin Johnson
          Mayor, City of San Francisco-Ed Lee
          Mayor, City of San Jose-Sam Liccardo
          Mayor, City of Santa Ana-Miguel Pulido
          Mercy Housing California
          NAMI California
          National Association of Social Workers - California Chapter  
          (NASW-CA)
          National Center for Youth Law (NCYL)
          Non-Profit Housing Association of Northern California (NPH)
          PATH
          PATH Ventures
          Public Counsel
          Related California
          San Diego Housing Federation
          San Diego Hunger Coalition
          Santa Clara County Board of Supervisors
          Satellite Affordable Housing Association
          Skid Row Housing Trust








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          South Bay Community Services
          Southern California Association of NonProfit Housing
          St. Anthony Foundation
          TransForm
          United Way of Greater Los Angeles
          West Hollywood Community Housing Corporation
          Western Center on Law & Poverty
          Western Regional Advocacy Project (WRAP)
          WORKS





          Opposition


          None on file.




          Analysis Prepared by:Lisa Engel / H. & C.D. / (916) 319-2085