BILL ANALYSIS                                                                                                                                                                                                    

                                                                    AB 1056

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          Date of Hearing:  May 27, 2015


                                 Jimmy Gomez, Chair

          1056 (Atkins) - As Amended May 22, 2015

          |Policy       |Housing and Community          |Vote:|6 - 0        |
          |Committee:   |Development                    |     |             |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No

          SUMMARY:  This bill 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: 


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

          2)Establishes Second Chance Fund (the Fund) within the State  
            Treasury and provides that the BSCC is responsible for  
            administering the Fund.

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

          4)Provides that the Board 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. 

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

          6)Requires the Board to establish and implement a Program that  
            focuses on community-based solutions for reducing recidivism  
            and, specifies minimum requirements. 

          FISCAL EFFECT:

          1)Minor and absorbable costs to the Housing and Community  
            Development Department (HCD) to work with the Board to  
            administer the grant program.

          2)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.   The Department of  


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            Finance estimates are lower.


          1)Purpose. 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."   

          2)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:      


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             a)   25% to the California Department of Education, to  
               administer a grant program to reduce truancy and support  
               students who are at risk of dropping out of school or are  
               victims of crime.

             b)   10% to the California Victim Compensation and Government  
               Claims Board, to make grants to trauma recovery centers to  
               provide services to victims of crime.

             c)   65% to the Board, 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.

            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 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 Board 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 Board must use when creating the program and  
            evaluating 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.     


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          Analysis Prepared by:Jennifer Swenson / APPR. / (916)