BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1404 (Leno) - Victims of violent crimes: trauma recovery centers ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 26, 2016 |Policy Vote: HEALTH 9 - 0, PUB. | | | S. 7 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 9, 2016 |Consultant: Jolie Onodera | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 1404 would recognize the University of California, San Francisco General Hospital Trauma Recovery Center (UCSF TRC) as the State Pilot TRC, and would require the Victim Compensation and Government Claims Board (Board) to enter into an interagency agreement with the UCSF TRC to establish the State Pilot TRC as the state's trauma recovery center of excellence (TR-COE), as specified. This bill: Removes the restriction in existing law limiting TRC grant funding only from the Restitution Fund. Deletes the limitation in existing law restricting the number of grant awards to a specific TRC to no more than one grant for any period of time. Requires TRCs funded through the Safe Neighborhoods and Schools Fund (SNSF) to meet specified statutory requirements and standards. Specifies procedures and policies, including reporting requirements, for using funds from the SNSF created through SB 1404 (Leno) Page 1 of ? Proposition 47 (2014). Requires the Board to create an advisory committee to make recommendations on regulations governing TRC funding and the criteria for awarding grants. Fiscal Impact: Administrative costs : Annual costs of $925,000 (Special Fund*/General Fund**) to the Board to review and evaluate TRC grant applications, facilitate advisory committee activities, secure an evaluation contractor (potentially UC) and submit annual reports to the Legislature. Administrative costs payable from the SNSF would be limited to 5 percent of the SNSF funds received annually. TRC grants : Major future grant awards in the millions of dollars (Special Fund*/General Fund**) annually provided to TRCs meeting specified criteria, including the potential for the issuance of multiple awards to a single TRC with overlapping grant periods. In addition to the $2 million annual appropriation from the Restitution Fund, the LAO has projected annual disbursements from the SNSF to the Board in the range of $10 million to $20 million to fund TRC grants. The Restitution Fund is structurally imbalanced. In light of the dedicated funding source for TRCs provided by Proposition 47 (2014), removal or reduction of the annual appropriation from the Restitution Fund may be considered in the future. UC (TR-COE) activities : To the extent the UC resolves to enter into the agreement, significant ongoing costs (Private/Local Fund/Federal Fund/Special Fund*) to comply with the requirements of the agreement including but not limited to providing training materials, ongoing consultation to the Board and TRCs, and designing a multisite evaluation to measure effectiveness of TRCs. Staff notes the use of SNSF funds awarded as TRC grants may not be allowable for the aforementioned activities to the extent the activities do not "provide services to victims of crime," but are considered administrative in nature. *Restitution Fund ** Safe Neighborhoods and Schools Fund (annual transfer from the General Fund) SB 1404 (Leno) Page 2 of ? Background: Existing law creates the Victims of Crime Program, administered by the California Victim Compensation and Government Claims Board (Board), to reimburse victims of crime for the pecuniary losses they suffer as a direct result of criminal acts such as medical related expenses. Indemnification is made from the Restitution Fund, which is continuously appropriated to the Board for these purposes. Existing law requires the Board to enter into an interagency agreement with the UCSF to establish a recovery center for victims of crime at the San Francisco General Hospital for comprehensive and integrated services to victims of crime, subject to funding appropriated for that purpose. (Government Code (GC) § 13974.5.) Existing law provides for $2 million annually from the Restitution Fund to a grant program created in 2013 to replicate the successful TRC pioneered by UCSF. The TRC treatment model was developed in 2001 to address the multiple barriers victims face recovering from crime, and utilizes a comprehensive, flexible approach designed to meet the unique needs of crime victims suffering from trauma. TRCs utilize a multidisciplinary staff to provide direct mental health services and health treatment while coordinating services with law enforcement and other social service agencies, and all services are co-located with one coordinating point of contact for the victim. (GC § 13963.1.) Proposition 47, the Safe Neighborhoods and Schools Act of 2014 (Act), reclassifies controlled substance felony and alternate felony-misdemeanor crimes as misdemeanors, with exceptions for defendants convicted of a sex offense, a specified drug crime involving specified weights of volume of the drug, a crime where the defendant used or was armed with a weapon, a homicide, solicitation of murder, and any crime for which the sentence is a life term. The Act requires the Director of Finance (DOF), by August 15 of each fiscal year beginning in 2016, to calculate the savings from the reduced penalties and requires the Controller to distribute the amount of savings according to the following formula: 25 percent to the Department of Education for a grant program to public agencies to improve outcomes for SB 1404 (Leno) Page 3 of ? kindergarten through high school students at risk of dropping out of school or who are crime victims. 10 percent to the Board, to make grants to TRCs to provide services to victims of crime pursuant to Section 13963.1 of the Government Code. 65 percent to the Board of State and Community Corrections for a grant program to public agencies for mental health and drug abuse treatment and diversion programs, with an emphasis on reducing recidivism. (GC §§ 7599-7599.2.) Existing law provides that the agency responsible for administering the programs noted above shall not spend more than 5 percent of the total funds it receives from the Safe Neighborhoods and Schools Fund (SNSF) on an annual basis for administrative costs. Existing law requires the Controller to transfer from the General Fund to the SNSF the total amount of savings calculated by the DOF. Moneys in the SNSF are continuously appropriated for the purposes of the Act. Notably, the funds transferred to the SNSF are to be used exclusively for the purposes specified in the Act and are not subject to appropriation or transfer by the Legislature for any other purpose. The funds in the SNSF may additionally be used without regard to fiscal year. Proposed Law: This bill would recognize the UCSF TRC as the State Pilot TRC, and would require the Board to enter into an interagency agreement with the UCSF TRC, provided that the UC agrees to the bill's provisions through a resolution, to establish the State Pilot TRC as the state's trauma recovery center of excellence, as specified. Additionally, this bill: Requires the Board to use the evidence-based Integrated Trauma Recovery Services (ITRS) model developed by the State Pilot TRC when selecting, establishing, and implementing TRCs, as specified. Removes the prohibition in existing law limiting TRC grant funding only from the Restitution Fund. Deletes the limitation in existing law restricting the number SB 1404 (Leno) Page 4 of ? of grant awards to a specific TRC to no more than one grant for any period of time. Requires TRCs funded through the Safe Neighborhoods and Schools Fund (SNSF) to meet numerous specified statutory requirements and standards. Adds case managers and peer counselors to the list of multidisciplinary staff of clinicians that a TRC must have as a resource to crime victims. Specifies procedures and policies, including reporting requirements, for using funds from the SNSF, as follows: o Prohibits the Board from spending more than 5 percent annually of the money appropriated to it from the SNSF for administrative costs. o Requires the Board to annually report to the Legislature on the funding received from the SNSF with a detailed summary of the programs funded by the moneys allocated to it from the SNSF. Requires the Board to create an advisory committee to make recommendations on regulations governing TRC funding, the criteria for awarding grants to TRCs. Includes numerous uncodified and codified legislative findings and declarations. Prior Legislation: SB 518 (Leno) 2015 was substantially similar to this measure. SB 518 was held on the Suspense File of the Assembly Appropriations Committee. SB 854 (Committee on Budget and Fiscal Review) Chapter 28/2014, the state and local government budget trailer bill, among its numerous provisions revised the provision conditioning TRC grants upon appropriation of the Legislature to instead state the intent of the Legislature to annually appropriate $2 million per year from the Restitution Fund for TRC grants. SB 71 (Committee on Budget and Fiscal Review) Chapter 28/2013, the state government budget trailer bill, among its numerous SB 1404 (Leno) Page 5 of ? provisions required that upon appropriation by the Legislature, the VCGCB award TRC grants totaling up to $2 million per year to be funded only from the Restitution Fund. Staff Comments: The Board has estimated the provisions of this measure would result in annual costs of $925,000. These costs include funding to facilitate the interagency agreement with UC, additional staffing to meet the operational and reporting requirements resulting from expansion of the program, data collection and software needs, and the funding to secure an evaluation contractor ($490,000). The contractor costs are estimated to constitute ten percent of the projected amount of grant funds to be distributed (currently $2 million Restitution Fund and $2.9 million estimated SNSF). Staff notes the SNSF funds available for administrative costs to the Board are limited to five percent of the total funds received by the Board from the SNSF on an annual basis ($145,000 based on the current estimate of total SNSF funds to the Board of $2.9 million in FY 2016-17). The remainder of expenditures would be supported by the Restitution Fund, which staff notes is structurally imbalanced. The UCSF TRC currently receives approximately $1 million in local funding, $400,000 from the Federal Office on Refugee Resettlement, and about $400,000 from the Board (as a result of SB 71 noted above). SB 71 (Chapter 28/2013) established six TRC's in California based on the UCSF model and appropriated $2 million annually from the Restitution Fund to fund the TRCs (UCSF, Long Beach, Solano, Stockton, and two in Los Angeles). To the extent UC resolves to enter into the agreement, annual costs to provide the level of services required would likely be in the low millions of dollars to provide the training materials, technical assistance, and ongoing consultation to the Board and other TRCs as required under the agreement. Additionally, the agreement requires the UC to design a multisite evaluation to measure adherence to the practice and effectiveness of each TRC. This bill would allow the Board to award multiple grants to single TRCs with overlapping terms utilizing different grant fund sources. It is unclear whether this allowance will result SB 1404 (Leno) Page 6 of ? in unnecessary complexities in reporting and documentation requirements for both TRCs and the Board. Recommended Amendments: (1)This bill contains numerous legislative findings and declarations. Albeit uncodified, staff recommends the following amendments to more accurately reflect the language of Proposition 47 (2014) which specifies grant funds are to be used to provide services to victims of crime: On page 3, lines 21-23: (e) The Safe Neighborhoods and Schools Act of 2014 requires 10 percent of the moneys in the Safe Neighborhoods and Schools Fund to be allocated to the California Victim CompensationProgramand Government Claims Board toadminister a grant program to establishmake grants to trauma recovery centers to provide services to victims of crimemodeled after the UCSF TRC. (2)As noted in the Background section of this analysis, SNSF funds are continuously appropriated, and are disbursed by the Controller to relevant agencies pursuant to the provisions of Proposition 47 (2014). Consequently, staff recommends an amendment on line 9 of page 8 to strike the phrase "appropriated to it" and replace with "it receives" to be consistent with the verbiage in GC § 7599.2(b) to enable the BSCC to utilize the SNSF funds disbursed by the Controller for administrative purposes. On page 8, lines 8-10: SB 1404 (Leno) Page 7 of ? (b) The board shall not spend more than 5 percentannually of the moneys appropriated to it from the Safe Neighborhoods and Schools Fund for administrative costs.of the total funds it receives from the Safe Neighborhoods and Schools Fund on an annual basis for administrative costs . -- END --