BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                       AB 1056|
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                                   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

           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           ASSEMBLY FLOOR:  78-0, 6/2/15 (Consent) - See last page for  

           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,  


          Existing law:


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          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).)


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          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:


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             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.


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          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  

             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  

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


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             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  

               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  

             d)   Prioritize proposals that leverage existing contracts,  
               partnerships, memoranda of understanding, or other formal  
               relationships to provide one or more of the services noted  

             e)   Prioritize proposals put forth by a public agency in  
               partnership with a philanthropic or nonprofit organization.


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             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.


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          SUPPORT:   (Verified8/28/15)

          All of Us or None
          American Federation of State, County and Municipal Employees,  
          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  
          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


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          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
          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
          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
          Wakeland Housing and Development Corporation
          Western Center on Law and Poverty
          Western Regional Advocacy Project
          Numerous individuals

          OPPOSITION:   (Verified8/28/15)


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          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  

          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

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