BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1056| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1056 Author: Atkins (D), et al. Amended: 8/31/15 in Senate Vote: 27 SENATE PUBLIC SAFETY COMMITTEE: 6-0, 6/30/15 AYES: Hancock, Anderson, Glazer, Leno, Liu, Monning NO VOTE RECORDED: Stone SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen ASSEMBLY FLOOR: 78-0, 6/2/15 (Consent) - See last page for vote SUBJECT: Second Chance Program SOURCE: Author DIGEST: This bill enacts the Second Chance Program, which requires the Board of State and Community Corrections (BSCC) to administer a competitive grant program using savings resulting from the implementation of Proposition 47, the Safe Neighborhoods and Schools Act of 2014, and other fund sources, as specified. This bill also extends the sunset date on the Social Innovation Financing Program by two years, to January 1, 2022. ANALYSIS: Existing law: AB 1056 Page 2 1)Reflects the provisions of Proposition 47, also known as the Safe Neighborhoods and Schools Act, which was approved by the voters in November of 2014. Proposition 47 reduced the penalties for certain drug and property crimes and directed that the resulting state savings be directed to mental health and substance abuse treatment, truancy and dropout prevention, and victims' services, as specified. The initiative also made additional changes to criminal laws. 2)Requires, as enacted by Proposition 47, that by August 15 of each fiscal year beginning in 2016, the State Controller shall disburse moneys deposited in the Safe Neighborhoods and Schools Fund 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 1 to 12, inclusive, by reducing truancy and supporting students who are at risk of dropping out of school or are victims of crime. 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(a).) AB 1056 Page 3 4)Requires that, for each of these programs, the agency responsible for administering the programs shall not spend more than five percent of the total funds it receives from the Safe Neighborhoods and Schools Fund on an annual basis for administrative costs. 5)Requires the Controller to conduct an audit of these grant programs "to ensure the funds are disbursed and expended solely according to this chapter and shall report his or her findings to the Legislature and the public," as specified. 6)Requires that the funding established pursuant to this act "be used to expand programs for public school pupils in kindergarten and grades 1 to 12, inclusive, victims of crime, and mental health and substance abuse treatment and diversion programs for people in the criminal justice system. These funds shall not be used to supplant existing state or local funds utilized for these purposes." 7)Provides that local agencies are not obligated to provide programs or levels of service described in these provisions above the level for which funding has been provided. 8)Establishes the Social Innovation Financing Program, with a sunset date of January 1, 2020. (Gov't. Code § 97013.) This bill: 1)Extends the sunset date for the Social Innovation Financing Program to January 1, 2022. 2)Enacts the Second Chance Program, to be administered by the BSCC, as follows: AB 1056 Page 4 a) Restricts the program to supporting mental health treatment, substance use treatment, and diversion programs for persons in the criminal justice system, with an emphasis on programs that reduce recidivism of persons convicted of less serious crimes, such as those covered by the Safe Neighborhoods and Schools Act of 2014, and those who have substance use and mental health problems. b) Defines "public agency" to mean a county, city, whether a general law city or a chartered city, or city and county, the duly constituted governing body of an Indian reservation or rancheria, a school district, municipal corporation, district, political subdivision, or any board, commission, or agency thereof, entities that are legislative bodies of a local agency, as specified, a housing authority, a state agency, public district, or other political subdivision of the state, or 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 moderate income. 1)Creates the Second Chance Fund, to be administered by the BSCC, with moneys in the fund to be continuously appropriated without regard to fiscal year. 2)Requires the Controller, upon order of the Department of Finance, to transfer moneys made available to the BSCC to deposit the moneys disbursed pursuant to Proposition 47 into the Second Chance Fund. 3)Provides that the Second Chance Fund may receive moneys from any other federal, state, or local grant, or from any private donation or grant, for the purposes of this article. 4)Provides that the BSCC may not spend more than five percent annually of the moneys in the fund for administrative costs. AB 1056 Page 5 5)Requires the BSCC to administer a competitive grant program that focuses on community-based solutions for reducing recidivism. The grant program, at minimum, is required to do all of the following: a) Restrict eligibility to proposals designed to serve people who have been arrested, charged with, or convicted of a criminal offense and have a history of mental health or substance use disorders. b) Restrict eligibility to proposals that offer mental health services, substance use disorder treatment services, misdemeanor diversion programs, or some combination thereof. c) Restrict eligibility to proposals that have a public agency as the lead applicant. 1)Requires the BSCC to create an executive steering committee (ESC) that "includes, but is not limited to, a balanced and diverse membership from relevant state and local government entities, community-based treatment and service providers, and the formerly incarcerated community. The ESC shall have expertise in homelessness and housing, behavioral health and substance abuse treatment, and effective rehabilitative treatment for adults and juveniles." The ESC shall make recommendations regarding the design, efficacy, and viability of proposals, and make recommendations on to develop guidelines for the submission of proposals, including threshold or scoring criteria, or both, that do all of the following: a) Prioritize proposals that advance principles of restorative justice while demonstrating a capacity to reduce recidivism. AB 1056 Page 6 b) Prioritize proposals that leverage other federal, state, and local funds or other social investments, as specified. c) Prioritize proposals that provide for all of the following: i) Mental health services, substance use disorder treatment services, misdemeanor diversion programs, or some combination thereof. ii) Housing-related assistance that utilizes evidence-based models, including, but not limited to, those recommended by the federal Department of Housing and Urban Development. Housing-related assistance may include, but is not limited to, financial assistance, including security deposits, utility payments, moving-cost assistance, and up to 24 months of rental assistance, and housing stabilization assistance, including case management, relocation assistance, outreach and engagement, landlord recruitment, housing navigation and placement, and credit repair. iii) Other community-based supportive services, such as job skills training, case management, and civil legal services. d) Prioritize proposals that leverage existing contracts, partnerships, memoranda of understanding, or other formal relationships to provide one or more of the services noted above. e) Prioritize proposals put forth by a public agency in partnership with a philanthropic or nonprofit organization. AB 1056 Page 7 f) Prioritize proposals that promote interagency and regional collaborations. g) Consider ways to promote services for people with offenses identical or similar to those addressed by the Safe Neighborhoods and Schools Act of 2014, without precluding assistance to a person with other offenses in his or her criminal history. h) Consider geographic diversity, appropriate limits for administrative costs and overhead, and consider proposals that provide services to juveniles. i) Permit proposals to expand the capacity of an existing program and prohibit proposals from using the fund to supplant funding for an existing program. FISCAL EFFECT: Appropriation: Yes Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee states: Minor workload impact to the BSCC to administer the specified grant program and establish the ESC, as Proposition 47 already requires the BSCC to administer a grant program. Potentially significant increase in annual grant awards issued (federal/state/private funds), as this bill creates a new fund, the Second Chance Fund, which is continuously appropriated, and may receive funds not only from the savings resulting from Proposition 47, but also from other federal, state, local, or private sources. Potential future cost pressure (Special Fund/General Fund) due to the extension of the sunset date. According to the BSCC, $5 million was appropriated from the Recidivism Reduction Fund for this program, with funding estimated to be fully allocated to the three local county projects by June 30, 2016. AB 1056 Page 8 SUPPORT: (Verified8/28/15) All of Us or None American Federation of State, County and Municipal Employees, AFL-CIO Area Congregations Together Berkeley City Council C & C Development Co. California Association of Code Enforcement Officers California Attorneys for Criminal Justice California Building Industry Association California Catholic Conference of Bishops California College and University Police Chiefs Association California Council of Community Mental Health Agencies California Housing Consortium California Labor Federation California Narcotic Officers Association California Police Chiefs Association California Rural Legal Assistance Foundation California State Association of Counties California State Council of the Service Employees International Union Californians for Safety and Justice Christian Church Homes Circulate San Diego City Heights Community Development Corporation City of Los Angeles City of Torrance City of West Hollywood Community Action North Bay Community Housing Opportunities Corporation Community HousingWorks Corporation for Supportive Housing County Behavioral Health Directors Association County of San Bernardino County Welfare Directors Association of California Drug Policy Alliance East Bay Housing Organizations Friends Committee on Legislation of California AB 1056 Page 9 Girls Think Tank Highridge Costa Investors, LLC Housing California Hunger Advocacy Network Iglesia Adventista del Septimo Dia Jewish Family Service of San Diego League of California Cities Legal Services for Prisoners with Children LINC Housing Los Angeles Community Action Network Los Angeles County Board of Supervisors MAAC Mental Health America of California Monterey County Board of Supervisors National Alliance on Mental Illness California National Association of Social Workers, California Chapter National Center for Youth Law Non-Profit Housing Association of Northern California Northern California Community Loan Fund Pacific Clinics PATH Rural Smart Growth Task Force St. Anthony Foundation San Diego Housing Federation San Diego and Imperial Counties Labor Council San Francisco Mayor Edwin Lee Santa Clara County Board of Supervisors Satellite Affordable Housing Associates South Bay Community Services Southern California Association of NonProfit Housing The Arc and United Cerebral Palsy California Collaboration The Hampstead Companies TransForm Wakeland Housing and Development Corporation Western Center on Law and Poverty Western Regional Advocacy Project Numerous individuals OPPOSITION: (Verified8/28/15) AB 1056 Page 10 None received ARGUMENTS IN SUPPORT: The author states in part, "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. AB 1056 provides important fiscal and policy direction by making the highest and best use of the savings accruing from Proposition 47, directing them toward diversion and collaborative programs that address the root causes of recidivism of those formerly incarcerated: the urgent need for housing, mental health services, and substance abuse treatment." ASSEMBLY FLOOR: 78-0, 6/2/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Chávez, Grove Prepared by:Alison Anderson / PUB. S. / 8/31/15 11:43:32 **** END **** AB 1056 Page 11