BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HUMAN SERVICES
                               Senator McGuire, Chair
                                2015 - 2016  Regular 

          Bill No:              SB 636
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          |Author:   |Liu                                                   |
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          |Version:  |April 7, 2015          |Hearing    |April 21, 2015   |
          |          |                       |Date:      |                 |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Mareva Brown                                          |
          |:         |                                                      |
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             Subject:  Homeless youth:  basic material needs assistance

            SUMMARY
          
          This bill creates the Homeless Youth Basic Material Needs  
          Assistance Program and requires that moneys appropriated by the  
          Legislature be allocated proportionally to counties based on the  
          number of homeless youth in each county. It authorizes a county  
          either to establish the program or to request the California  
          Department of Social Services (CDSS) to administer the county's  
          program, in which case CDSS would be required to directly  
          administer the program in that county. The bill would permit  
          counties to pool resources and jointly administer the program.  
          The bill requires each county program to solicit proposals from,  
          and contract with, nonprofit organizations providing basic  
          material needs assistance to homeless youth as specified, and  
          requires those nonprofit organizations to provide a minimum of  
          25 percent matching funds or in-kind services, as specified. The  
          bill requires each contracted nonprofit to prepare a report on  
          the program, as specified, and requires CDSS to issue a report  
          after three years identifying the number of youth served, a  
          description of assistance provided and to identify any  
          significant achievements.

            ABSTRACT
          
          Existing law: 
          
          1)Establishes, in federal law, the McKinney-Vento Homeless  
            Assistance Act, which provides federal funding for local  








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            homeless assistance projects.  (42 USC § 11301, et seq.)

          2)Includes in the McKinney-Vento Homeless Assistance Act,  a  
            definition of a homeless child or youth as one who lacks a  
            fixed, regular, and adequate nighttime residence including: 

             a)   Children and youth who are sharing the housing of other  
               persons due to loss of housing, economic hardship, or a  
               similar reason; are living in motels, hotels, trailer  
               parks, or camping grounds due to the lack of alternative  
               adequate accommodations; are living in emergency or  
               transitional shelters; are abandoned in hospitals; or are  
               awaiting foster care placement; 
             b)   Children and youth who have a primary nighttime  
               residence that is a public or private place not designed  
               for or ordinarily used as a regular sleeping accommodation  
               for human beings; 
             c)   Children and youth who are living in cars, parks, public  
               spaces, abandoned buildings, substandard housing, bus or  
               train stations, or similar settings; and
             d)   Migratory children living in the circumstances described  
               above. (42 USC § 11434a)

          1)Establishes the United States Interagency Council on  
            Homelessness to coordinate a federal response to homelessness  
            and create a national partnership at every level of government  
            and with the private sector to end homelessness.  (42 USC §  
            11311)

          2)States the intent of the Legislature that homeless youth are  
            entitled to a meaningful opportunity to meet the challenging  
            state pupil academic achievement standards to which all pupils  
            are held.  (EDC 48850(a)(1))

          3)Requires each state educational agency, pursuant to the  
            federal McKinney-Vento Homeless Assistance Act, to make  
            sub-grants to local educational agencies (LEAs), as specified,  
            for the purpose of facilitating the enrollment, attendance,  
            and success in school of homeless children and youths.  (42  
            U.S.C. § 11433)

          4)Requires each state to submit to the federal government a plan  
            to provide for the education of homeless children and youth,  
            as specified.  (42 U.S.C. § 11432(g))









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          5)Establishes in the state Treasury the School Supplies for  
            Homeless Children Fund to receive personal income tax  
            contributions to be distributed, in part, to the California  
            Department of Education (CDE) to provide school supplies and  
            health products to homeless children through a competitive  
            grant program.  (RTC 18895 et seq.)

          This bill:

             1)   Makes a series of findings and declarations including: 

               a)     During the 2013-14 academic year, 297,617 children  
                 and youth enrolled in local educational agencies in  
                 California were identified as homeless, as defined by the  
                 federal McKinney-Vento Homeless Assistance Act (42 U.S.C.  
                 Sec. 11301 et sec.). This population is several times  
                 more than that of any other state in the nation and  
                 equates to one homeless student in every classroom.

               b)     The federal definition of homelessness used by  
                 school, child nutrition and other programs includes  
                 children and youth who lack a fixed, regular, and  
                 adequate nighttime residence, including those who live in  
                 shelters, transitional housing, cars, campgrounds,  
                 motels, or who share the housing of others temporarily  
                 due to loss of housing, economic hardship, or similar  
                 reasons.

               c)     A significant barrier to success faced by homeless  
                 children and youth is access to basic materials including  
                 school supplies, shoes, hygienic and dental products, and  
                 other basic necessities. This and the accompanying low  
                 self-esteem lead to absenteeism and truancy, which  
                 prevents homeless youth from obtaining the education that  
                 is both their legal right and their best opportunity to  
                 escape poverty.

               d)     According to numerous homeless liaisons throughout  
                 California that represent more than 70 percent of  
                 California's homeless children and youth, the  
                 overwhelming majority of this population does not have  
                 their basic material needs met.










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               e)     The local control funding formula does not  
                 specifically address the unmet basic material needs of  
                 homeless children and youth.

               f)     This act addresses this barrier to success by  
                 articulating a state policy framework to provide the most  
                 basic unmet material needs of homeless children and  
                 youth, while also utilizing matching resources and  
                 leveraging federal funds to ensure program stability and  
                 longevity. This act is designed to ensure that all  
                 homeless public school students have their basic material  
                 needs met so they can attend school on a more equal  
                 playing field with their peers.

               g)     States Legislative intent that funds appropriated by  
                 the Legislature for this program not exceed an average  
                 allocation of twenty-five dollars and twenty cents  
                 ($25.20) per pupil, with the assumption of a  
                 participation rate of not more than 297,619 homeless  
                 youth, or the number from the most recent count of  
                 homeless youth, whichever is lesser.

             1)   Adds a new chapter to the Welfare and Institutions code  
               commencing with Section 13710 entitled the Homeless Youth  
               Basic Material Needs Assistance Program.

             2)   Establishes definitions, including the following:

                  a.        "Additional material needs assistance" means  
                    clothes, blankets, and access to shelter, and "basic  
                    material needs assistance" means school supplies,  
                    dental supplies and other hygienic products, shoes,  
                    socks and underwear.

                  b.        "Administering entity" means one of the  
                    following:

                        i.             A county that elects to establish a  
                         program and does not join with another county, as  
                         defined.
                        ii.            A county designated as the lead  
                         county, if two or more counties elect to  
                         establish a program jointly.
                        iii.           CDSS, if a county declines to  









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                         establish a program or requests the department to  
                         administer the program.

                  c.        "Homeless youth" is defined as in federal  
                    statute, as specified; nonprofit organization means a  
                    nonprofit corporation qualified to do business in  
                    California and qualified under federal IRS code  
                    501(c)(3).

             3)   Requires CDSS to allocate money appropriated by the  
               Legislature to each county program in a proportionate  
               amount based on the county's respective number of homeless  
               youth to establish and operate a Homeless Youth Basic  
               Material Needs Assistance Program.

             4)   Permits a county to pool money and join with one or more  
               other counties to establish and administer the program.

             5)   Requires CDSS to directly administer a program for  
               homeless youth in any county that declines to establish a  
               program or requests the department to administer the  
               program, including contracting with a nonprofit  
               organization, as specified.

             6)   Requires administering agencies to do the following: 

                  a.        Solicit proposals from nonprofit organizations  
                    to administer a basic material needs assistance  
                    program for homeless youth, as specified. 

                  b.        Select and contract with one or more nonprofit  
                    organizations to participate in the program and to  
                    base selection criteria upon the following: 

                        i.             Demonstrated ability to form  
                         partnerships with Local Educational Agencies  
                         (LEAs).
                        ii.            Demonstrated ability to provide  
                         basic material needs assistance to homeless or  
                         low-income youth by working with LEAs.
                        iii.           Ability to work with the homeless  
                         liaison of each LEA, as specified.
                        iv.            Demonstrated ability to generate  
                         additional matching funds or in-kind resources  









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                         for similar programs.

                  c.        Requires each contracted nonprofit  
                    organization to notify the homeless liaison of a  
                    county office of education of the contractor's intent  
                    to enter into new partnership agreements or to renew  
                    an existing agreement with the LEAs in that county,  
                    and requires the contractor to form or maintain  
                    partnerships with LEAs for the purpose of providing  
                    basic material needs assistance to homeless youth,

                  d.        Additionally, requires the contracted  
                    nonprofit organization to provide basic material needs  
                    assistance to homeless youth, giving first priority to  
                    hygiene, dental, and school supply needs. A nonprofit  
                    organization may use other resources or demonstrated  
                    savings to provide additional material needs  
                    assistance.

                  e.        Requires the contracted nonprofit organization  
                    to provide at least a 25 percent match for all moneys  
                    received from the administering entity under this  
                    chapter. 

                  f.        Requires that, if the nonprofit organization  
                    provides in-kind materials toward the 25-percent  
                    match, the value of the in-kind materials contributing  
                    to a 25-percent match shall be verified by the donor  
                    of the materials and shall not exceed the market value  
                    of the materials if sold at retail. Any amounts  
                    provided by the nonprofit organization that exceed the  
                    25-percent match constitute demonstrated savings, as  
                    defined.

                  g.        Requires the contracted nonprofit organization  
                    to consult with the children and families commission  
                    of the county or counties served to determine how to  
                    best provide basic material needs assistance to  
                    homeless youth from birth to five years of age, if the  
                    administering entity elects to include homeless youth  
                    of that age in its program.

                  h.        Requires each contracted nonprofit  
                    organization to prepare a report for the administering  









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                    entity following each distribution cycle, which shall  
                    include, but not be limited to, the number of homeless  
                    youth assisted, location and dates of distributions.  
                    Additionally requires the report include a letter from  
                    each LEA, shelter, or other partnering entity,  
                    verifying this information and original letters from  
                    all donors contributing any in-kind materials counting  
                    toward the required match.

             7)   Requires that CDSS issue a simplified report after three  
               years of operation of the program including the number of  
               homeless youth assisted each year, a description of the  
               assistance provided, a total leveraged match statewide and  
               by each county and a scanned or paper copy of the original  
               letters from each LEA, as specified. 

             8)   Requires the CDSS report to include any significant  
               achievements in absenteeism reduction, improved academic  
               outcomes, improved living or social outcomes, and any other  
               significant improvements.

            FISCAL IMPACT
          
          This bill has not been analyzed by fiscal committee. However, a  
          Senate Appropriations Committee analysis of AB 2591 in 2014,  
          which was substantially similar to this bill, indicated  
          potential ongoing costs in excess of $100,000 (General Fund) for  
          CDSS to review proposals and allocate funds to participating  
          counties. Additionally, the analysis of AB 2591 projected major  
          future cost pressure (General Fund) in the millions of dollars  
          to establish and administer programs in participating counties.  
          Based solely on the Legislative intent stated in this bill, the  
          cost would cap at $7.5 million (General Fund) annually.
            
          BACKGROUND AND DISCUSSION
          
          Purpose of the bill:
           
           According to the author, this bill addresses a significant  
          barrier to success for homeless children and youth, namely  
          access to basic materials such as school supplies, shoes,  
          hygienic and dental products and other necessities. Lack of  
          basic material needs accompanied by low self-esteem lead to  
          absenteeism and truancy, which prevent homeless students from  









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          obtaining the education that is both their legal right and their  
          best opportunity to escape poverty, the author writes. 

          By establishing the Homeless Youth Basic Material Needs  
          Assistance Act, and using matching resources and leveraging  
          federal funds to ensure resource stability and longevity, this  
          bill will ensure that all children and youth identified as  
          homeless in public schools have their basic material needs met  
          so they can attend school on a more equal playing field with  
          their peers, the author states.  
           
           Homelessness among children
          
          Homeless children and families began to be discussed as a  
          significant social problem in the mid-1980s, and the issue has  
          grown steadily and seen increasing numbers of homeless children  
          since then.<1> Homeless families with children are 37 percent of  
          the overall homeless population, according to data from the US  
          Department of Housing and Urban Development. In 2013, more than  
          1.2 million public school children were homeless, an increase of  
          roughly 25 percent from the 2009-10 school year, according to  
          various U.S. Department of Education data sources. Overall, 2.5  
          million children experienced homelessness nationally in 2013 -  
          or 1 in 30.

          There were nearly 270,000 homeless school children in the  
          2013-14 educational year, according to federal data. State data  
          from the prior year indicates nearly a quarter of them live in  
          Los Angeles County. Of the state's homeless children, more than  
          80 percent, or 224,161 children, were living in doubled-up  
          situations, which include cohabitating with other families,  
          "couch surfing," or living in a garage.  Another 17,844 were  
          living in shelters, 10,073 lived in motels and hotels, and 7,578  
          were unsheltered.  

          McKinney-Vento Homeless Assistance Act 
          
          The McKinney-Vento Homeless Assistance Act, passed in 1987, was  
          the first significant piece of federal legislation to address  
          homelessness. It provided funding for shelters, created an  
          interagency council on homelessness to coordinate government  
          nonprofit system efforts and addressed educational needs of  


          ---------------------------
          <1> "America's Youngest Outcasts, A Report Card on Child  
          Homelessness," American Institutes for Research, November 2014.








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          homeless youth. The Act requires homeless children to be able to  
          attend their school of origin, have free transportation to and  
          from school, enroll in school even without all required  
          paperwork, among other rights. It also requires school districts  
          to appoint local educational liaisons for homeless children. 

          The Act defines homelessness more broadly than the previously  
          used HUD definition. It includes individuals and families who  
          lack a fixed, regular, and adequate nighttime residence,  
          including those who live in shelters, transitional housing,  
          cars, campgrounds, motels, or who share the housing of others  
          temporarily due to loss of housing, economic hardship, or  
          similar reasons. 

          Comparison to other states

          The National Center on Family Homelessness at the American  
          Institutes for Research created a report card on child  
          homelessness, ranking states on the extent of homelessness  
          adjusted for state population, child well-being, risk for child  
          homelessness and state policy and planning efforts. 

          California ranked 48th overall, just above Mississippi and  
          Alabama, respectively. It ranked 48th in the extent of child  
          homelessness, just above New York and Kentucky, based on HUD  
          data showing that nearly 530,000 children were homeless in  
          California in 2012-13, an increase of 20,000 children from one  
          year prior and of nearly 90,000 from two years earlier.

          California also ranked second-to-last in policy and planning  
          efforts, above only Wyoming. Despite positive marks for having a  
          state housing trust fund, California continues to have poor  
          access to housing for children and their families: Just 1,650  
          emergency shelter beds for families, 4,602 transitional housing  
          units and 5,064 permanent supportive housing units statewide.

          Effects on children
           
           Researchers have found that the vast majority of homeless  
          families are headed by a single mother with children under the  
          age of 6. The families tended to move frequently, often staying  
          in substandard housing and in dangerous neighborhoods, and were  
          without transportation or adequate child care. Children  
          experiencing homelessness were more often hungry, sick, and  









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          worried about whether they would eat or where they would sleep.  
          Children often developed more slowly and struggled in school,  
          repeating grades, missing school and dropping out at higher  
          rates. Researchers found that mental health problems for  
          homeless children were significantly worse than for similarly  
          aged poor children.<2>
           

           Related legislation
           
           AB 2591 (Weber, 2014) was substantially similar to this bill,  
          but did not include data reporting requirements. 
          
          SB 761 (DeSaulnier, Chapter 369, Statutes of 2014) required the  
          state Department of Education to designate a tax-exempt,  
          nonprofit organization to use the School Supplies for Homeless  
          Children Fund to provide school supplies and health-related  
          products to local education agencies for distribution to  
          homeless children, and to provide a 100 percent match for all  
          funds received.  
          
          SB 1571 (DeSaulnier, Chapter 459, Statutes of 2012), established  
          the School Supplies for Homeless Children Fund and tax check off  
          to provide school supplies to homeless children through a  
          competitive grant program.
          
          SB 608 (DeSaulnier, Chapter 307, Statutes of 2011), authorized  
          the Prison Industry Authority to offer their goods and services  
          for sale to nonprofit organizations that have entered into MOUs  
          with LEAs if the products and services are provided to public  
          school students at no cost to the students or their families.
           
           COMMENTS
          
          This bill is substantially similar to AB 2591 (Weber, 2014)  
          which was held in the Senate Appropriations Committee. The  
          author has narrowed the scope of the bill by clarifying the  
          items included in the definition of material needs, requiring  
          nonprofits and the state to report the numbers of children  
          served and the supplies provided. It additionally requires the  
          state to retain the funding of any county that elects not to  
          participate in the program and to directly contract with  
          nonprofits to run the program in that county. This version also  



          ---------------------------
          <2> Ibid, p. 9-10








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          increases the required match by contracted nonprofit  
          organizations from 20 percent to 25 percent, but permits that  
          match to be made by  in-kind donations. 

          This bill additionally includes a series of findings and  
          declarations which define the federal act and provide 2013-14  
          data, make various statements about the necessity of the bill  
          and state Legislative intent to institute a $7.5 million cap on  
          annual expenditures. Staff recommends the author amend this bill  
          to remove unnecessary findings and declarations (a) through (f),  
          retaining the Legislative fiscal intent in (g), as follows: 

          On page 2, delete lines 1 through 20. On page 3, delete lines 1  
          through 17. 

            POSITIONS
                                          
          Support:
               Ktocollege (Co-Sponsor)
               California State PTA (Co-Sponsor)
               California Catholic Conference

          Oppose:
               None.     


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