BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 621 (Hertzberg) - Mentally ill offender crime reduction  
          grants
          
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          |Version: February 27, 2015      |Policy Vote: PUB. S. 7 - 0      |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: April 20, 2015    |Consultant: Jolie Onodera       |
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          This bill meets the criteria for referral to the Suspense File.




          Bill  
          Summary:  SB 621 would expand the authorized use of funds from  
          the Mentally Ill Offender Crime Reduction (MIOCR) grant program  
          to include "diversion programs" that offer appropriate mental  
          health treatment and services. 


          Fiscal  
          Impact:  
           Major future cost pressure in the millions of dollars (General  
            Fund/Special Fund) to the extent adding diversion programs as  
            an authorized use of MIOCR grant funds results in additional  
            funding appropriated and subsequently awarded for these  
            programs. 
           To the extent the level of existing MIOCR grant funding  
            remains unchanged or decreases in future years, expanding the  
            authorized use of funds could result in a shift of grant  







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            awards to diversion programs, thereby reducing available grant  
            funding for alternative custody programs. 


          Background:  In 1998, the Legislature, under SB 1485 (Rosenthal) Chapter  
          501/1998, authorized the MIOCR grant program to fund innovative  
          local programs targeting mentally ill offenders. The MIOCR grant  
          program provided more than $80 million to 30 projects in 26 of  
          California's 58 counties. Although an evaluation of the MIOCR  
          grant program in 2005 indicated generally favorable outcomes,  
          the program was defunded in 2008.

          Pursuant to SB 1054 (Steinberg) Chapter 436/2014, the Board of  
          State and Community Corrections (BSCC) is to administer MIOCR  
          grants on a competitive basis to counties that expand or  
          establish a continuum of timely and effective responses to  
          reduce crime and criminal justice costs related to mentally ill  
          offenders. Under existing law, the grants are to be divided  
          equally between adult and juvenile MIOCR grants in accordance  
          with the funds appropriated for each type of grant. The grants  
          are required to support prevention, intervention, supervision,  
          and incarceration-based services and strategies to reduce  
          recidivism and to improve outcomes for mentally ill juvenile and  
          adult offenders. (Penal Code (PC) § 6045.)


          Existing law specifies that the BSCC shall award grants that  
          provide funding for three years based on four-year program plans  
          submitted by counties, and that funding must be used to  
          supplement, rather than supplant, funding for existing programs.  
          Counties are required to contribute resources of at least 25  
          percent of the amount of the grant, which may include in-kind  
          contributions. In awarding grants, priority or preference is to  
          be given to those grant applications that include documented  
          match funding that exceeds 25 percent of the grant. Existing law  
          further specifies that funds may be used to fund specialized  
          alternative custody programs that offer appropriate mental  
          health treatment and services. (PC § 6045.4.)


          The Budget Act of 2014 included $18 million appropriated to the  
          BSCC from the Recidivism Reduction Fund for the MIOCR grant  
          program. The BSCC has indicated 35 applications for MIOCR  
          projects requesting nearly $32.6 million in grant funds have  








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          been received. While no grants have been awarded to date, the  
          BSCC has indicated award recommendations will be presented to  
          the BSCC Board in June 2015.




          Proposed  
          Law:  This bill would expand the authorized use of funds for the  
          MIOCR grant program to include "diversion programs" that offer  
          appropriate mental health treatment and services.


          Related  
          Legislation:  SB 1054 (Steinberg) Chapter 436/2014 made  
          technical amendments to the MIOCR grant program which was  
          re-established in the Budget Act of 2014-15. SB 1054 shortened  
          the timeframe of the MIOCR grant funding period from four years  
          to three years, clarified the funds are to be divided equally  
          between juvenile and adult programs, and revised the BSCC  
          reporting requirement timeframes.
          SB 1485 (Rosenthal) Chapter 501/1998 established the MIOCR grant  
          program which required the Board of Corrections to administer  
          and award grants on a competitive basis to counties that expand  
          or establish a continuum of swift, certain, and graduated  
          responses to reduce crime and criminal justice costs related to  
          mentally ill offenders. The bill required funding for the  
          program to be provided, upon appropriation by the Legislature,  
          in the annual Budget Act. 




          Staff  
          Comments:  Under current law, MIOCR grants are required to  
          support various types of services, including but not limited to  
          prevention services, to reduce recidivism and to improve  
          outcomes for mentally ill juvenile and adult offenders. While  
          diversion programs clearly fall under the category of prevention  
          services, and are consistent with the intent of MIOCR grant  
          program goals, existing law restricts the  use  of MIOCR grant  
          funds to alternative custody programs. 

          Expanding the authorized use of MIOCR grant funds to include  








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          "diversion programs" would create future cost pressure in the  
          millions of dollars to the extent additional funding is  
          appropriated for these programs. While the $18 million included  
          in the 2014 Budget was appropriated from the Recidivism  
          Reduction Fund, these funds are limited, and any future  
          appropriations would likely be from the General Fund unless  
          other Special Funds are identified. To the extent the existing  
          funding level of $18 million for the MIOCR grant program remains  
          unchanged or decreases in future years, expanding the authorized  
          use of funds to include diversion programs could result in a  
          shift of grant awards to diversion programs, thereby reducing  
          the amount of available grant funding potentially awarded to  
          alternative custody programs.



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