BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          SB 636 (Liu) - Homeless youth:  basic material needs assistance
          
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          |Version: April 23, 2015         |Policy Vote: HUMAN S. 5 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 4, 2015       |Consultant: Jolie Onodera       |
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          This bill meets the criteria for referral to the Suspense File. 

          

          Bill  
          Summary:  SB 636 would create the Homeless Youth Basic Material Needs  
          Assistance Program, which would require the Department of Social  
          Services (DSS) to allocate moneys appropriated by the  
          Legislature to counties electing to establish a program for the  
          purposes of the statewide program. This bill would require the  
          DSS to administer a program for a county declining to establish  
          a program or requesting DSS to administer the program. This bill  
          would also require the DSS to issue a report, as specified,  
          three years after implementation of the program. 


          Fiscal  
          Impact:  
              Major future cost pressure (General Fund) in the tens of  
              millions of dollars annually to establish and administer  
              programs in all counties. While the extent of potential  
              costs would be at the discretion of the Legislature to  
              appropriate, in order to provide even 25 percent of the  
              297,470 homeless K-12 youth (74,367) with less than $20 per  







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              month over the school year to assist with basic material  
              needs would cost $17.8 million (General Fund). 
              Potentially significant ongoing administrative costs  
              (General Fund) to DSS as the "administering entity" for  
              counties declining to establish a program or requesting DSS  
              administration. Costs would be dependent on the number of  
              counties declining participation or requesting  
              administration, which is unknown at this time, and the  
              population of homeless youth in those specified counties. 
              One-time and ongoing costs potentially in excess of  
              $100,000 (General Fund) to the DSS to review proposals and  
              allocate funds to participating counties, to the extent  
              monies are appropriated for this program, and generate the  
              report.


          Background:  Existing federal law under the McKinney-Vento Homeless  
          Assistance Act, defines a homeless child or youth as one who  
          lacks a fixed, regular, and adequate nighttime residence  
          including:
               o      Children and youths 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.
               o      Children and youths 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.
               o      Children and youths who are living in cars, parks,  
                 public spaces, abandoned buildings, substandard housing,  
                 bus or train stations, or similar settings; and 
               o      Migratory children living in the circumstances  
                 described above.
               (42 U.S.C. § 11434a.)

          According to online data from kidsdata.org, there were 297,470  
          homeless school children in the 2013-14 educational year, with  
          nearly a quarter of the youth living in Los Angeles County. 

          Under existing law pursuant to SB 761 (DeSaulnier) Chapter  
          365/2014, the Personal Income Tax Law authorizes an individual  








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          to contribute amounts in excess of his or her tax liability for  
          the support of specified funds, including the School Supplies  
          for Homeless Children (SSHC) Fund. Existing law requires the  
          moneys deposited in the SSHC Fund to be allocated, upon  
          appropriation by the Legislature, to the DSS for the sole  
          purpose of assisting pupils in California pursuant to the  
          federal McKinney-Vento Homeless Assistance Act by providing  
          school supplies and health-related products to homeless children  
          through competitive grant programs. The SSHC Fund was originally  
          authorized by SB 1571 (DeSaulnier), Chapter 459/2012 to help  
          provide essential school supplies to homeless children. In 2013,  
          the SSHC Fund received $367,868 in valid contributions, and has  
          received $276,891 in contributions this year.   
                 
          This bill seeks to provide similar services to homeless youth  
          through a direct appropriation rather than through voluntary tax  
          contributions.


          Proposed Law:  
           This bill would create the Homeless Youth Basic Material Needs  
          Assistance Program, which would require the DSS to allocate  
          moneys appropriated by the Legislature for the purposes of the  
          statewide program. Specifically, this bill:
                 Includes uncodified legislative intent language  
               describing the maximum level of funds to be appropriated  
               for the program, as specified.
                 Defines "additional material needs assistance" as  
               clothes, blankets, and access to shelter.
                 Defines "administering entity" as a county that elects  
               to establish a program, counties that elect to establish a  
               program jointly, or the DSS if a county declines to  
               establish a program or requests DSS to administer the  
               program.
                 Defines "homeless youth" as having the same meaning as  
               the term defined in federal law under the McKinney-Vento  
               Homeless Assistance Act.
                 Defines "basic material needs assistance" as school  
               supplies, dental supplies, and other hygienic products,  
               shoes, socks, and underwear.
                 From moneys appropriated by the Legislature for the  
               program, requires DSS to allocate a proportional amount to  
               each county program based on the county's respective number  
               of homeless youth.








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                 Provides that moneys allocated to the county shall be  
               used to establish and operate a Homeless Youth Basic  
               Material Needs Assistance Program for the county.
                 Provides if a county declines to establish a program or  
               requests DSS to administer the program, the DSS is to  
               retain the county's share of funds and is directly  
               administer a program for homeless youth in that county,  
               including contracting with a nonprofit and performing all  
               duties specified in the bill.
                 Requires each administering entity to do all of the  
               following:
                  o         Solicit proposals from nonprofit organizations  
                    for the purpose of providing basic material needs  
                    assistance to homeless youth in the manner directed by  
                    the administering entity, as specified.
                  o         Select and contract with one or more nonprofit  
                    organizations to participate in the program based on  
                    the proposals solicited. Selection to be based on  
                    various factors, including the nonprofit  
                    organization's demonstrated ability to form  
                    partnerships with LEAs, demonstrated ability to  
                    generate additional matching funds or in-kind  
                    resources for similar programs.
                  o         Requires each nonprofit organization  
                    contracted to do all of the following:
                       §              Assist homeless youth through LEA  
                         partnerships.
                       §              Notify the homeless liaison of a  
                         county office of education each time a program  
                         commences or is renewed.
                       §              Provide basic material needs  
                         assistance to homeless youth, giving first  
                         priority to hygiene, dental, and school supply  
                         needs. 
                       §              Authorizes a nonprofit to use other  
                         resources or demonstrated savings to provide  
                         additional material needs assistance.
                       §              Provide at least a 25 percent match  
                         for all moneys received from the administering  
                         entity. Specifies in-kind materials count toward  
                         the match, and any amounts provided by a  
                         nonprofit that exceed the 25-percent match  
                         constitute demonstrated savings that may be used  
                         to provide clothes, blankets, and access to  








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                         shelter.
                       §              Consult with the children and  
                         families commission of the county, as specified.
                       §              Prepare a report for the  
                         administering entity, as specified.
                  o         Requires the DSS to issue a report after three  
                    years of operation of the program, to include the  
                    number of homeless youth assisted each year, a  
                    description of the assistance provided, the total  
                    match leveraged and the match leveraged by each  
                    county, copies of the original letters from each LEA,  
                    as specified, and any significant achievements in  
                    absenteeism reduction, improved academic outcomes,  
                    improved living or social outcomes, and any other  
                    significant improvements.


          Prior  
          Legislation:  AB 2591 (Weber) 2014 was substantially similar to  
          this measure. This bill was held on the Suspense File of this  
          Committee.
          SB 761 (DeSaulnier) Chapter 365/2014 requires funds appropriated  
          by the Legislature from the School Supplies for Homeless  
          Children Fund to be allocated to the DSS instead of CDE for  
          distribution to a tax-exempt nonprofit organization to provide  
          school supplies and health-related products to partnering LEAs  
          for distribution to homeless children. This bill requires a  
          minimum 100 percent match for all funds received. 




          Staff  
          Comments:  To the extent monies are appropriated by the Legislature for  
          the statewide program, the DSS would incur one-time and ongoing  
          costs (General Fund) of an unknown but potentially significant  
          amount in excess of several hundred thousand dollars to review  
          proposals, allocate funds to counties, administer the program  
          for counties declining to establish a program or requesting DSS  
          to administer the program, and to prepare and issue the required  
          report.  

          This bill does not mandate an appropriation by the Legislature,  
          but to the extent the Legislature appropriates funds for the  








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          purposes of this program in any one year, costs could  
          potentially be in the millions of dollars to establish and  
          administer programs in all counties. While the extent of  
          potential costs would be at the discretion of the Legislature to  
          appropriate, in order to provide even 25 percent of the 297,470  
          homeless K-12 youth (74,367) with less than $20 per month over  
          the school year to assist with "basic material needs" would cost  
          $17.8 million (General Fund).


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