BILL ANALYSIS Ó AB 1056 Page 1 Date of Hearing: May 27, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1056 (Atkins) - As Amended May 22, 2015 ----------------------------------------------------------------- |Policy |Housing and Community |Vote:|6 - 0 | |Committee: |Development | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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: AB 1056 Page 2 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 AB 1056 Page 3 Finance estimates are lower. COMMENTS: 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: AB 1056 Page 4 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. AB 1056 Page 5 Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081