BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2591 (Weber) - Homeless youth: basic material needs  
          assistance.
          
          Amended: May 23, 2014           Policy Vote: Human Services 4-0
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Jolie Onodera       
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: AB 2591 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 for the purposes of the program,  
          to counties electing to establish a program, as specified.  

          Fiscal Impact: 
              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.
              Major future cost pressure (General Fund) in the millions  
              of dollars to establish and administer programs in  
              participating 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  
              270,000 homeless K-12 youth (67,500) with less than $20 per  
              month over the school year to assist with basic material  
              needs would cost over $12 million (General Fund).

          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:
                     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.
                     Children and youths who have a primary nighttime  
                 residence that is a public or private place not designed  






          AB 2591 (Weber)
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                 for or ordinarily used as a regular sleeping  
                 accommodation for human beings.
                     Children and youths who are living in cars, parks,  
                 public spaces, abandoned buildings, substandard housing,  
                 bus or train stations, or similar settings; and 
                     Migratory children living in the circumstances  
                 described above.
               (42 U.S.C. � 11434a.)

          According to data provided by the Department of Education (CDE),  
          there were nearly 270,000 homeless school children in the  
          2012-13 educational year, with nearly a quarter of them living  
          in Los Angeles County. 

          Under existing law, the Personal Income Tax Law authorizes an  
          individual 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 CDE 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 program, to counties electing to establish a  
          program, as follows:
                 Defines an administering entity as a county that elects  
               to establish a program or counties that elect to establish  
               a program jointly.
                 Defines "homeless youth" as the 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,  






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               shoes, clothes, blankets, and other basic material needs.
                 From moneys appropriated by the Legislature for the  
               program, requires DSS to allocate a proportional amount to  
               each participating county based on the county's respective  
               number of homeless youth.
                 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.
                 Requires each program established to do all 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, subject to requirements of  
                    this measure.
                  o         Contract with one or more nonprofit  
                    organizations to participate in the program based on  
                    the proposals solicited. Selection to be based on the  
                    nonprofit organization's demonstrated ability to meet  
                    the goals of the program, including but not limited to  
                    an ability to form partnerships with LEAs.
                  o         Requires each nonprofit organization  
                    contracted to do all of the following:
                       �              Assist homeless youth through LEA  
                         partnerships.
                       �              Give priority to providing school  
                         supplies and dental supplies and other hygienic  
                         products to homeless youth.
                       �              Consult with the children and family  
                         commission of the counties served by the program  
                         to determine how best to provide basic material  
                         needs assistance to homeless youth from birth to  
                         age 5 years, if the county elects to include  
                         homeless youth of that age in its program.
                  o         Encourages each nonprofit organization  
                    contracted to do the following:
                       �              Provide at least a 20 percent match  
                         for all moneys received from the administering  
                         entity.
                       �              Work with the homeless liaison of  
                         each LEA pursuant to federal law, or his or her  
                         LEA-employed designee.

          Related Legislation: SB 761 (DeSaulnier) 2014 requires funds  
          appropriated by the Legislature from the School Supplies for  
          Homeless Children Fund to be allocated to the DSS instead of CDE  






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          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.  
          This bill is pending hearing in the Assembly Committee on  
          Appropriations.

          Staff Comments: To the extent monies are appropriated by the  
          Legislature, the DSS would incur one-time and ongoing costs  
          potentially in excess of $100,000 (General Fund) to review  
          proposals and allocate a proportional amount of funds to  
          participating counties based on each county's respective number  
          of homeless youth. 

          This bill does not mandate an appropriation by the Legislature,  
          but to the extent the Legislature appropriates funds for the  
          purposes of this program in any one year, costs could  
          potentially be in the millions of dollars to establish and  
          administer programs in participating 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  
          270,000 homeless K-12 youth (67,500) with less than $20 per  
          month over the school year to assist with "basic material needs"  
          would cost over $12 million (General Fund).

          The bill defines "basic material needs assistance" as school  
          supplies, dental supplies, other hygienic products, shoes,  
          clothes, blankets, and other basic material needs," To the  
          extent "other basic material needs" could be interpreted broadly  
          to include housing assistance, tutoring, counseling,  
          electronics, or transportation (vouchers/transit passes) to be  
          provided by a county operating a program would likely cost in  
          the tens of millions of dollars to serve a small number of  
          homeless youth.