(1)Existing law, until January 1, 2020, establishes the Social Innovation Financing Program, and requires the Board of State and Community Corrections to administer the program. Existing law, among other things, authorizes the board, upon appropriation of funds by the Legislature for deposit into the Recidivism Reduction Fund, to award grants in amounts of not less than $500,000 and not more than $2,000,000 to each of 3 counties, selected as specified, for the purpose of entering into a pay for success or social innovation financing contract, pursuant to which private investors agree to provide financing to service providers to achieve social outcomes agreed upon in advance and the government agency that is a party to the contractual agreement agrees to pay a return on the investment to the investors if successful programmatic outcomes are achieved by the service provider. Existing law limits the total amount of the grants awarded to $5,000,000. Existing law requires each county receiving an award to report annually to the Governor and Legislature on the status of its program. Existing law requires the board to compile the county reports and submit a summary report to the Governor and the Legislature annually.

This bill would extend the operation of that program and the reporting requirements until January 1, 2022.

This bill would also require the board to administer a competitive grant program that focuses on community-based solutions for reducing recidivism. The bill would establish minimum criteria for the grant program and would require the board to establish an executive steering committee, as specified, to make recommendations regarding the design, efficacy, and viability of proposals and to make recommendations on guidelines for the submission of proposals for the grant program, including threshold or scoring criteria, or both. Among other things, the bill would require those guidelines to prioritize proposals that advance principles of restorative justice while demonstrating a capacity to reduce recidivism, and that leverage certain other federal, state, and local funds or social investments. The bill would define recidivism, for the purposes of these provisions, as a conviction of a new felony or misdemeanor committed within 3 years of release from custody or committed within 3 years of placement on supervision for a previous criminal conviction.

(2)The Safe Neighborhoods and Schools Act establishes within the State Treasury the Safe Neighborhoods and Schools Fund to receive moneys transferred from the General Fund in an amount equal to the savings resulting from the implementation of the act, as specified. The act requires that 65% of the moneys in the Safe Neighborhoods and Schools Fund be allocated the Board of State and Community Corrections to administer a grant program to public agencies aimed at supporting specified types of programs, including diversion programs, for people in the criminal justice system with an emphasis on programs that reduce recidivism, as specified.

This bill would create the Second Chance Fund in the State Treasury for the purpose of funding the above-described recidivism reduction program. The bill would require the Controller, upon order of the Director of Finance, to transfer the moneys available to the Board of State and Community Corrections from the Safe Neighborhoods and Schools Fund into the Second Chance Fund. The bill would also authorize the Second Chance Fund to receive moneys from any other federal, state, or local grant, or from any private donation. The bill would prohibit the board from using the moneys in the fund to supplant existing programs and from spending more than 5% per year of the total moneys in the fund for administrative purposes.

The bill would require the board to administer these provisions, and moneys in the fund would be continuously appropriated to the board for expenditure for these purposes. By creating a continuously appropriated fund, this bill would make an appropriation.

(3)The Safe Neighborhoods and Schools Act provides that its provisions may be amended by a statute, passed by a ²/₃ vote of each house of the Legislature and signed by the Governor, that is consistent with and furthers the intent of the act.

This bill would declare that its provisions further the intent of the Safe Neighborhoods and Schools Act.

(1)Existing law, until January 1, 2020, establishes the Social Innovation Financing Program, and requires the Board of State and Community Corrections to administer the program. Existing law, among other things, authorizes the board, upon appropriation of funds by the Legislature for deposit into the Recidivism Reduction Fund, to award grants in amounts of not less than $500,000 and not more than $2,000,000 to each of 3 counties, selected as specified, for the purpose of entering into a pay for success or social innovation financing contract, pursuant to which private investors agree to provide financing to service providers to achieve social outcomes agreed upon in advance and the government agency that is a party to the contractual agreement agrees to pay a return on the investment to the investors if successful programmatic outcomes are achieved by the service provider. Existing law limits the total amount of the grants awarded to $5,000,000. Existing law requires each county receiving an award to report annually to the Governor and Legislature on the status of its program. Existing law requires the board to compile the county reports and submit a summary report to the Governor and the Legislature annually.

This bill would extend the operation of that program and the reporting requirements until January 1, 2022.

This bill would also require the board to administer a competitive grant program that focuses on community-based solutions for reducing recidivism. The bill would establish minimum criteria for the grant program and would require the board to establish an executive steering committee, as specified, to make recommendations regarding the design, efficacy, and viability of proposals and to make recommendations on guidelines for the submission of proposals for the grant program, including threshold or scoring criteria, or both. Among other things, the bill would require those guidelines to prioritize proposals that advance principles of restorative justice while demonstrating a capacity to reduce recidivism, and that leverage certain other federal, state, and local funds or social investments. The bill would define recidivism, for the purposes of these provisions, as a conviction of a new felony or misdemeanor committed within 3 years of release from custody or committed within 3 years of placement on supervision for a previous criminal conviction.

(2)The Safe Neighborhoods and Schools Act establishes within the State Treasury the Safe Neighborhoods and Schools Fund to receive moneys transferred from the General Fund in an amount equal to the savings resulting from the implementation of the act, as specified. The act requires that 65% of the moneys in the Safe Neighborhoods and Schools Fund be allocated the Board of State and Community Corrections to administer a grant program to public agencies aimed at supporting specified types of programs, including diversion programs, for people in the criminal justice system with an emphasis on programs that reduce recidivism, as specified.

This bill would create the Second Chance Fund in the State Treasury for the purpose of funding the above-described recidivism reduction program. The bill would require the Controller, upon order of the Director of Finance, to transfer the moneys available to the Board of State and Community Corrections from the Safe Neighborhoods and Schools Fund into the Second Chance Fund. The bill would also authorize the Second Chance Fund to receive moneys from any other federal, state, or local grant, or from any private donation. The bill would prohibit the board from using the moneys in the fund to supplant existing programs and from spending more than 5% per year of the total moneys in the fund for administrative purposes.

The bill would require the board to administer these provisions, and moneys in the fund would be continuously appropriated to the board for expenditure for these purposes. By creating a continuously appropriated fund, this bill would make an appropriation.

(3)The Safe Neighborhoods and Schools Act provides that its provisions may be amended by a statute, passed by a ²/₃ vote of each house of the Legislature and signed by the Governor, that is consistent with and furthers the intent of the act.

This bill would declare that its provisions further the intent of the Safe Neighborhoods and Schools Act.

(1)Existing law establishes the Board of State and Community Corrections as an entity independent of the Department of Corrections and Rehabilitation, and authorizes the board to carry out various powers and duties relating to providing advice and leadership on criminal justice issues. law, until January 1, 2020, establishes the Social Innovation Financing Program, and requires the Board of State and Community Corrections to administer the program. Existing law, among other things, authorizes the board, upon appropriation of funds by the Legislature for deposit into the Recidivism Reduction Fund, to award grants in amounts of not less than $500,000 and not more than $2,000,000 to each of 3 counties, selected as specified, for the purpose of entering into a pay for success or social innovation financing contract, pursuant to which private investors agree to provide financing to service providers to achieve social outcomes agreed upon in advance and the government agency that is a party to the contractual agreement agrees to pay a return on the investment to the investors if successful programmatic outcomes are achieved by the service provider. Existing law limits the total amount of the grants awarded to $5,000,000. Existing law requires each county receiving an award to report annually to the Governor and Legislature on the status of its program. Existing law requires the board to compile the county reports and submit a summary report to the Governor and the Legislature annually.

This bill would also require the board to administer a competitive grant program that focuses on community-based solutions for reducing recidivism. The bill would establish minimum criteria for the grant program and would require the board to establish an Executive Steering Committee, composed of 13 members, executive steering committee, as specified, to adopt make recommendations regarding the design, efficacy, and viability of proposals and to make recommendations on guidelines for the submission of proposals for the grant program, including threshold or scoring criteria, or both. Among other things, the bill would require those guidelines to prioritize proposals that advance principles of restorative justice while demonstrating a capacity to reduce recidivism, and that leverage certain other federal, state, and local funds or social investments. The bill would define recidivism, for the purposes of these provisions, as a conviction of a new felony or misdemeanor committed within 3 years of release from custody or committed within 3 years of placement on supervision for a previous criminal conviction.

(2)The Safe Neighborhoods and Schools Act establishes within the State Treasury the Safe Neighborhoods and Schools Fund to receive moneys transferred from the General Fund in an amount equal to the savings resulting from the implementation of the act, as specified. The act requires that 65% of the moneys in the Safe Neighborhoods and Schools Fund be allocated the Board of State and Community Corrections to administer a grant program to public agencies aimed at supporting specified types of programs, including diversion programs, for people in the criminal justice system with an emphasis on programs that reduce recidivism, as specified.

This bill would create the Second Chance Fund in the State Treasury for the purpose of funding the above-described recidivism reduction program. The bill would require the Board of State and Community Corrections to deposit the above-described moneys it receives Controller, upon order of the Director of Finance, to transfer the moneys available to the Board of State and Community Corrections from the Safe Neighborhoods and Schools Fund into the Second Chance Fund. The bill would also authorize the Second Chance Fund to receive moneys from any other federal, state, or local grant, or from any private donation. The bill would prohibit the board from using the moneys in the fund to supplant existing programs and from spending more than 5% per year of the total moneys in the fund for administrative purposes.

The bill would require the board to administer these provisions, and moneys in the fund would be continuously appropriated to the board for expenditure for these purposes. By creating a continuously appropriated fund, this bill would make an appropriation.

(3)The Safe Neighborhoods and Schools Act provides that its provisions may be amended by a statute, passed by a ²/₃ vote of each house of the Legislature and signed by the Governor, that is consistent with and furthers the intent of the act.

This bill would declare that its provisions further the intent of the Safe Neighborhoods and Schools Act.

(1)Existing law establishes the Board of State and Community Corrections as an entity independent of the Department of Corrections and Rehabilitation, and authorizes the board to carry out various powers and duties relating to providing advice and leadership on criminal justice issues.

This bill would require the board to administer a competitive grant program that focuses on community-based solutions for reducing recidivism. The bill would establish minimum criteria for the grant program and would require the board to establish an Executive Steering Committee, composed of 13 members, as specified, to adopt guidelines for the submission of proposals for the grant program, including threshold or scoring criteria, or both. Among other things, the bill would require those guidelines to prioritize proposals that advance principles of restorative justice while demonstrating a capacity to reduce recidivism, and that leverage certain other federal, state, and local funds or social investments. The bill would define recidivism, for the purposes of these provisions, as a conviction of a new felony or misdemeanor committed within 3 years of release from custody or committed within 3 years of placement on supervision for a previous criminal conviction.

(2)The Safe Neighborhoods and Schools Act establishes within the State Treasury the Safe Neighborhoods and Schools Fund to receive moneys transferred from the General Fund in an amount equal to the savings resulting from the implementation of the act, as specified. The act requires that 65% of the moneys in the Safe Neighborhoods and Schools Fund be allocated the Board of State and Community Corrections to administer a grant program to public agencies aimed at supporting specified types of programs, including diversion programs, for people in the criminal justice system with an emphasis on programs that reduce recidivism, as specified.

This bill would create the Second Chance Fund in the State Treasury for the purpose of funding the above-described recidivism reduction program. The bill would require the Board of State and Community Corrections to deposit the above-described moneys it receives from the Safe Neighborhoods and Schools Fund into the Second Chance Fund. The bill would also authorize the Second Chance Fund to receive moneys from any other federal, state, or local grant, or from any private donation. The bill would prohibit the board from using the moneys in the fund to supplant existing programs and from spending more than 5% per year of the total moneys in the fund for administrative purposes.

The bill would require the board to administer these provisions, and moneys in the fund would be continuously appropriated to the board for expenditure for these purposes. By creating a continuously appropriated fund, this bill would make an appropriation.

(3)The Safe Neighborhoods and Schools Act provides that its provisions may be amended by a statute, passed by a ²/₃ vote of each house of the Legislature and signed by the Governor, that is consistent with and furthers the intent of the act.

This bill would declare that its provisions further the intent of the Safe Neighborhoods and Schools Act.

(1)Existing law establishes the Board of State and Community Corrections as an entity independent of the Department of Corrections and Rehabilitation, and authorizes the board to carry out various powers and duties relating to providing advice and leadership on criminal justice issues.

This bill would require the board to establish and implement administer a competitive grant program that focuses on community-based solutions for reducing recidivism. The bill would establish minimum criteria for the grant program and would require the board to establish an Executive Steering Committee, composed of 11 13 members, as specified, to develop adopt guidelines for the administration of submission of proposals for the program. grant program, including threshold or scoring criteria, or both. Among other things, the bill would require those guidelines to prioritize proposals that advance principles of restorative justice while demonstrating a capacity to reduce recidivism, and that leverage certain other federal, state, and local funds or social investments. The bill would define recidivism, for the purposes of these provisions, as a conviction of a new felony or misdemeanor committed within three 3 years of release from custody or committed within three 3 years of placement on supervision for a previous criminal conviction.

(2)The Safe Neighborhoods and Schools Act establishes within the State Treasury the Safe Neighborhoods and Schools Fund to receive moneys transferred from the General Fund in an amount equal to the savings resulting from the implementation of the act, as specified. The act requires that 65% of the moneys in the Safe Neighborhoods and Schools Fund be allocated the Board of State and Community Corrections to administer a grant program to public agencies aimed at supporting specified types of programs, including diversion programs, for people in the criminal justice system with an emphasis on programs that reduce recidivism, as specified.

This bill would create the Second Chance Fund in the State Treasury for the purpose of funding the above-described recidivism reduction program. The bill would require the Board of State and Community Corrections to deposit the above-described moneys it receives from the Safe Neighborhoods and Schools Fund into the Second Chance Fund. The bill would also authorize the Second Chance Fund to receive moneys from any other federal, state, or local grant, or from any private donation. The bill would prohibit the board from using the moneys in the fund to supplant existing programs and from spending more than 5% per year of the total moneys in the fund for administrative purposes.

The bill would require the board to administer these provisions, and moneys in the fund would be continuously appropriated to the board for expenditure for these purposes. By creating a continuously appropriated fund, this bill would make an appropriation.

(3)The Safe Neighborhoods and Schools Act provides that its provisions may be amended by a statute, passed by a ²/₃ vote of each house of the Legislature and signed by the Governor, that is consistent with and furthers the intent of the act.

This bill would declare that its provisions further the intent of the Safe Neighborhoods and Schools Act.

(2)The Safe Neighborhoods and Schools Act establishes within the State Treasury the Safe Neighborhoods and Schools Fund to receive moneys transferred from the General Fund in an amount equal to the savings resulting from the implementation of the act, as specified. The act requires that 65% of the moneys in the Safe Neighborhoods and Schools Fund be allocated the Board of State and Community Corrections to administer a grant program to public agencies aimed at supporting specified types of programs, including diversion programs, for people in the criminal justice system with an emphasis on programs that reduce recidivism, as specified.

This bill would create the Second Chance Fund in the State Treasury. Treasury for the purpose of funding the above-described recidivism reduction program. The bill would require the Board of State and Community Corrections to deposit an amount equal to 33% of the above-described moneys it receives from the Safe Neighborhoods and Schools Fund. Fund into the Second Chance Fund. The bill would also authorize the Second Chance Fund to receive moneys from any other federal, state, or local grant, or from any private donation. The bill would require that 90% of the moneys in the Second Chance Fund be allocated to the board and 10% to the California Housing Finance Agency to administer grants for housing supports programs, as specified. prohibit the board from using the moneys in the fund to supplant existing programs and from spending more than 5% per year of the total moneys in the fund for administrative purposes.

The bill would require the board to administer these provisions, and moneys in the fund would be continuously appropriated to the board for expenditure for these purposes. By creating a continuously appropriated fund, this bill would make an appropriation.

(3)The Safe Neighborhoods and Schools Act provides that its provisions may be amended by a statute, passed by a ²/₃ vote of each house of the Legislature and signed by the Governor, that is consistent with and furthers the intent of the act.

This bill would declare that its provisions further the intent of the Safe Neighborhoods and Schools Act.

(1)Existing federal law, the American Recovery and Reinvestment Act of 2009, allocated, until September 30, 2011, $1.5 billion to the federal Department of Housing and Urban Development for the Homelessness Prevention Fund, to be used for homelessness prevention and rapid rehousing. Existing law, the California Work Opportunity and Responsibility to Kids Act, provides housing supports to individuals if the administering county determines that the individual or his or her family is experiencing homelessness or housing instability that would be a barrier to self-sufficiency or child well-being, and declares that it is the intent of the Legislature that housing supports utilize evidence-based models, including those established in the federal Department of Housing and Urban Developments Homeless Prevention and Rapid Re-Housing Program. The Housing Authorities Law establishes, in each county and city, a public body corporate and politic known as the housing authority of the county or city.

This bill would authorize a housing authority, defined to include an entity created pursuant to the Housing Authorities Law or a housing-related entity created by a county, to develop a housing supports program, as defined. The bill would require a housing supports program to provide rental assistance for a specified period to persons who are formerly incarcerated, provide rapid rehousing services, and conduct an individual needs assessment for each prospective tenant to determine the level of services provided and length of assistance. The bill would authorize the housing authority to finance the program through grants provided by the Board of State and Community Corrections or the California Housing Finance agency, existing funding sources except as specified, establishment of a regional center under specified provisions, and a grant repayment component of the housing supports program.

The bill would require the Board of State and Community Corrections to develop a request for proposal process for awarding grants to housing authorities that establish a housing supports program. The bill would require the California Housing Finance Agency to develop a similar request for proposal process for awarding grants to housing authorities located in small or rural counties, as defined. The bill would require the request for proposal process for both agencies to give preference to housing authorities that demonstrate the ability to attract matching funds or leverage existing funds and to give consideration to the geographic diversity of applicant housing authorities.

(2)The Safe Neighborhoods and Schools Act establishes within the State Treasury the Safe Neighborhoods and Schools Fund to receive moneys transferred from the General Fund in an amount equal to the savings resulting from the implementation of the act, as specified. The act requires that 65% of the moneys in the Safe Neighborhoods and Schools Fund be allocated the Board of State and Community Corrections to administer a grant program to public agencies aimed at supporting specified types of programs, including diversion programs, for people in the criminal justice system with an emphasis on programs that reduce recidivism, as specified.

This bill would create the Second Chance Fund in the State Treasury. The bill would require the Board of State and Community Corrections to deposit an amount equal to 33% of the above-described moneys it receives from the Safe Neighborhoods and Schools Fund. The bill would also authorize the Second Chance Fund to receive moneys from any other federal, state, or local grant, or from any private donation. The bill would require that 90% of the moneys in the Second Chance Fund be allocated to the board and 10% to the California Housing Finance Agency to administer grants for housing supports programs, as specified.

The bill would require the board to administer these provisions, and moneys in the fund would be continuously appropriated to the board for expenditure for these purposes. By creating a continuously appropriated fund, this bill would make an appropriation.

(3)The Safe Neighborhoods and Schools Act provides that its provisions may be amended by a statute, passed by a ²/₃ vote of each house of the Legislature and signed by the Governor, that is consistent with and furthers the intent of the act.

This bill would declare that its provisions further the intent of the Safe Neighborhoods and Schools Act.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1056

Author:(Atkins)

As Amended Ver:August 31, 2015

2/3 vote

Original Committee Reference: H. & C.D.

SUMMARY: Establishes the Second Chance Program (the Program) to invest in community-based programs, services, and initiatives for formerly incarcerated individuals in need of mental health and substance use treatment services. Extends the sunset on the Social Innovation Financing Program until 2022. Specifically, this bill:

1. Includes legislative findings.

2. Directs the Board of State and Community Corrections (BSCC) to administer the program.

3. Includes the following definitions:

   1. "Board" means the BSCC;

   2. "Fund" means the Second Chance Fund; and

   3. "Public agency" means a county, city, whether a general law city or a chartered city, or city and county, the duly constituted governing body of an Indian reservation or rancheria, a school district, municipal corporation, district, political subdivision, or any board, commission, or agency thereof, entities that are legislative bodies of a local agency, as specified, a housing authority, a state agency, public district, or other political subdivision of the state, or any instrumentality thereof, which is authorized to engage in or assist in the development or operation of housing for persons and families of low or moderate income.

   4. "Recidivism" means a conviction of a new felony or misdemeanor committed within three years of release from custody or committed within three years of placement on supervision for a previous criminal conviction.

4. Establishes the Fund within the State Treasury.

5. Provides that the BSCC is responsible for administering the Fund.

6. Continuously appropriates moneys in the Fund without regard to fiscal year.

7. Directs the State Controller, upon order of the Director of Finance, to transfer moneys available to the BSCC into the Fund.

8. Provides that the Fund can receive moneys from any other federal, state and local grants or any private donation or grants.

9. Caps the amount the BSCC can spend on administrative costs at 5% annually.

10. Requires the BSCC to administer a competitive grant program that focuses on community-based solutions for reducing recidivism. The grant program shall, at minimum, do all of the following:

    1. Restrict eligibility to proposals designed to serve people who have been arrested, charged with, or convicted of a criminal offense and have a history of mental health or substance use disorders;

    2. Restrict eligibility to proposals that offer mental health services, substance use disorder treatment services, misdemeanor diversion programs, or some combination thereof; and

    3. Restrict eligibility to proposals that have a public agency as the lead applicant.

11. Requires the BSCC to form an executive steering committee that includes a balanced and diverse membership from relevant state and local government entities, community-based treatment and service providers, and the formerly incarcerated community. The steering committee shall have expertise in homelessness and housing, behavioral health and substance abuse treatment, and effective rehabilitative treatment for adults and juvenile.

12. Requires the steering committee to make recommendations regarding the design, efficacy, and viability of proposals, and make recommendations on guidelines for the submission of proposals that do all of the following:

    1. Prioritize proposals that advance principles of restorative justice while demonstrating a capacity to reduce recidivism;

    2. Prioritize proposals that leverage other federal, state, and local funds or other social investments, such as the following sources of funding:

       1. The Drug Medi-Cal Treatment Program;

       2. The Mental Health Services Act (MHSA);

       3. Funds provided for in connection with the implementation of the 2011 Public Safety Realignment;

       4. The Community Corrections Performance Incentives Act;

       5. The tax credits established pursuant to Revenue and Taxation Code Sections 12209, 17053.57, and 23657;

       6. Department of Housing and Urban Development (HUD) Emergency Solutions Grant program;

       7. Department of Veterans Affairs Supportive Services for Veteran Families program;

       8. Social Innovation Funds established by the Corporation for National and Community Service; and

       9. The Edward Byrne Memorial Justice Assistance Grant Program.

    3. Prioritize proposals that provide for all of the following:

       1. Mental health services, substance use disorder treatment services, misdemeanor diversion programs, or some combination thereof;

       2. Housing-related assistance that utilizes evidence-based models, including, but not limited to, those recommended by HUD. Housing-related assistance may include, but is not limited to, the following:

          1. Financial assistance, including security deposits, utility payments, moving-cost assistance, and up to 24 months of rental assistance.

          2. Housing stabilization assistance, including case management, relocation assistance, outreach and engagement, landlord recruitment, housing navigation and placement, and credit repair.

       3. Other community-based supportive services, such as job skills training, case management, and civil legal services.

    4. Prioritize proposals that leverage existing contracts, partnerships, memoranda of understanding, or other formal relationships to provide one or more of the prioritized services;

    5. Prioritize proposals put forth by a public agency in partnership with a philanthropic or nonprofit organization;

    6. Prioritize proposals that promote interagency and regional collaborations;

    7. Consider ways to promote services for people with offenses identical or similar to those addressed by the Safe Neighborhoods and Schools Act of 2014, without precluding assistance to a person with other offenses in his or her criminal history;

    8. Consider geographic diversity;

    9. Consider appropriate limits for administrative costs and overhead;

    10. Consider proposals that provide services to juveniles; and

    11. Permit proposals to expand the capacity of an existing program and prohibit proposals from using the fund to supplant funding for an existing program.

13. Extends the sunset on the Social Innovation Financing Program until 2022.

The Senate amendments:

1. Delete the specific makeup of executive steering committee membership.

2. Extend the sunset on the Social Innovation Financing Program until 2022.

3. Make technical, clarifying changes.

FISCAL EFFECT: According to the Senate Appropriations Committee:

1. Minor workload impact to the BSCC to administer the Program and establish the executive steering committee, as Proposition 47 (2014) already requires the BSCC to administer a grant program.

2. Potentially significant increase in annual grant awards issued (Federal/State/Private funds), as the bill creates a new fund, which is continuously appropriated, and may receive funds not only from the savings resulting from Proposition 47, but also from other federal, state, local, or private sources.

3. Potential future cost pressure (Special Fund/General Fund) due to the extension of the sunset date. According to the BSCC, $5 million was appropriated from the Recidivism Reduction Fund for this program, with funding estimated to be fully allocated to the three local county projects by June 30, 2016.

COMMENTS: Background: In response to prison overcrowding directives as well as recent public safety reforms such as AB 109 (Budget Committee), Chapter 15, Statutes of 2011 and Proposition 47, unprecedented numbers of formerly incarcerated individuals are returning to our communities. Nationally, over half of people in prisons or jails have experienced a mental health issue within the last year, and over half of women in jail and 44% of men in jail have a drug or alcohol dependency. As a result of these factors, many detained in local jails are chronic offenders who frequently cycle in and out of the jail facility and other public crisis systems in part because of their long histories of residential instability or homelessness, chronic mental and physical health issues, and substance abuse disorders.

Proposition 47: In 2014, the voters approved Proposition 47 which would reduce the penalties for certain non-violent, nonserious drug and property crimes and require the resulting state savings to be used to pay for mental health and substance use services, truancy, dropout prevention, and victim crimes. DOF will calculate the savings that accrue to the state from the implementation of Proposition 47. Proposition 47 requires the savings be distributed among state agencies as follows:

1. Twenty-five percent to the State Department of Education, to administer a grant program to public agencies aimed at improving outcomes for public school pupils in kindergarten and grades one to twelve, inclusive, by reducing truancy and supporting students who are at risk of dropping out of school or are victims of crime.

2. Ten percent to the California Victim Compensation and Government Claims Board, to make grants to trauma recovery centers to provide services to victims of crime pursuant to Section 13963.1 of the Government Code.

3. Sixty-five percent to the BSCC, to administer a grant program to public agencies aimed at supporting mental health treatment, substance abuse treatment, and diversion programs for people in the criminal justice system, with an emphasis on programs that reduce recidivism of people convicted of less serious crimes, such as those covered by Proposition 47, and those who have substance abuse and mental health problems.

The Legislature has authority under the Proposition to determine how the funds are used by the departments that receive them and how much oversight to provide to determine if the funds are used effectively. The Legislative Analyst's Office (LAO) estimates that the savings resulting from Proposition 47, while subject to significant uncertainty, will likely range from $100 million to $200 million beginning in 2016-17.

This bill provides direction to the BSCC on how to spend the 65% in savings directed to it to support mental health and substance use treatment. This bill sets out minimum criteria that the BSCC must use when creating the program and how to evaluate applicants based on the types of people served, services that should be funded, other funding sources that could be leveraged, and the level of geographic diversity, among other factors.

Purpose of this bill: Various organizations support this bill and the goal of establishing a stable housing source for formerly incarcerated individuals. According to the author, "people in the criminal justice system and formerly incarcerated individuals have difficulty securing housing and employment upon leaving incarceration." This bill provides guidance to the BSCC on the establishment of a competitive grant program, which will promote comprehensive, collaborative projects that serve people who have been arrested, charged with, or convicted of an offense and have a history of mental health issues.

Analysis Prepared by: Rebecca Rabovsky / H. & C.D. / (916) 319-2085 FN: 0001942

 THIRD READING  

Bill No: AB 1056

Author: Atkins (D), et al.

Amended: 8/31/15 in Senate

Vote: 27

SENATE PUBLIC SAFETY COMMITTEE: 6-0, 6/30/15

AYES: Hancock, Anderson, Glazer, Leno, Liu, Monning

NO VOTE RECORDED: Stone

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15

AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

ASSEMBLY FLOOR: 78-0, 6/2/15 (Consent) - See last page for vote

SUBJECT: Second Chance Program

SOURCE: Author

DIGEST: This bill enacts the “Second Chance Program,” which requires the Board of State and Community Corrections (BSCC) to administer a competitive grant program using savings resulting from the implementation of Proposition 47, the Safe Neighborhoods and Schools Act of 2014, and other fund sources, as specified. This bill also extends the sunset date on the Social Innovation Financing Program by two years, to January 1, 2022.

ANALYSIS:

Existing law:

1. Reflects the provisions of Proposition 47, also known as the Safe Neighborhoods and Schools Act, which was approved by the voters in November of 2014. Proposition 47 reduced the penalties for certain drug and property crimes and directed that the resulting state savings be directed to mental health and substance abuse treatment, truancy and dropout prevention, and victims’ services, as specified. The initiative also made additional changes to criminal laws.

2. Requires, as enacted by Proposition 47, that by August 15 of each fiscal year beginning in 2016, the State Controller shall disburse moneys deposited in the Safe Neighborhoods and Schools Fund as follows:

1. Twenty five percent to the State Department of Education, to administer a grant program to public agencies aimed at improving outcomes for public school pupils in kindergarten and grades 1 to 12, inclusive, by reducing truancy and supporting students who are at risk of dropping out of school or are victims of crime.

2. Ten percent to the California Victim Compensation and Government Claims Board, to make grants to trauma recovery centers to provide services to victims of crime pursuant to Section 13963.1 of the Government Code.

3. Sixty five percent to the BSCC, to administer a grant program to public agencies aimed at supporting mental health treatment, substance abuse treatment, and diversion programs for people in the criminal justice system, with an emphasis on programs that reduce recidivism of people convicted of less serious crimes, such as those covered by this measure, and those who have substance abuse and mental health problems. (Government Code § 7599.2(a).)

4. Requires that, for each of these programs, the agency responsible for administering the programs shall not spend more than five percent of the total funds it receives from the Safe Neighborhoods and Schools Fund on an annual basis for administrative costs.

5. Requires the Controller to conduct an audit of these grant programs “to ensure the funds are disbursed and expended solely according to this chapter and shall report his or her findings to the Legislature and the public,” as specified.

6. Requires that the funding established pursuant to this act “be used to expand programs for public school pupils in kindergarten and grades 1 to 12, inclusive, victims of crime, and mental health and substance abuse treatment and diversion programs for people in the criminal justice system. These funds shall not be used to supplant existing state or local funds utilized for these purposes.”

7. Provides that local agencies are not obligated to provide programs or levels of service described in these provisions above the level for which funding has been provided.

8. Establishes the Social Innovation Financing Program, with a sunset date of January 1, 2020. (Gov’t. Code § 97013.)

This bill:

1. Extends the sunset date for the Social Innovation Financing Program to January 1, 2022.

2. Enacts the Second Chance Program, to be administered by the BSCC, as follows:

1. Restricts the program to supporting mental health treatment, substance use treatment, and diversion programs for persons in the criminal justice system, with an emphasis on programs that reduce recidivism of persons convicted of less serious crimes, such as those covered by the Safe Neighborhoods and Schools Act of 2014, and those who have substance use and mental health problems.

2. Defines “public agency” to mean a county, city, whether a general law city or a chartered city, or city and county, the duly constituted governing body of an Indian reservation or rancheria, a school district, municipal corporation, district, political subdivision, or any board, commission, or agency thereof, entities that are legislative bodies of a local agency, as specified, a housing authority, a state agency, public district, or other political subdivision of the state, or any instrumentality thereof, which is authorized to engage in or assist in the development or operation of housing for persons and families of low or moderate income.

3. Creates the Second Chance Fund, to be administered by the BSCC, with moneys in the fund to be continuously appropriated without regard to fiscal year.

4. Requires the Controller, upon order of the Department of Finance, to transfer moneys made available to the BSCC to deposit the moneys disbursed pursuant to Proposition 47 into the Second Chance Fund.

5. Provides that the Second Chance Fund may receive moneys from any other federal, state, or local grant, or from any private donation or grant, for the purposes of this article.

6. Provides that the BSCC may not spend more than five percent annually of the moneys in the fund for administrative costs.

7. Requires the BSCC to administer a competitive grant program that focuses on community-based solutions for reducing recidivism. The grant program, at minimum, is required to do all of the following:

1. Restrict eligibility to proposals designed to serve people who have been arrested, charged with, or convicted of a criminal offense and have a history of mental health or substance use disorders.

2. Restrict eligibility to proposals that offer mental health services, substance use disorder treatment services, misdemeanor diversion programs, or some combination thereof.

3. Restrict eligibility to proposals that have a public agency as the lead applicant.

8. Requires the BSCC to create an executive steering committee (ESC) that “includes, but is not limited to, a balanced and diverse membership from relevant state and local government entities, community-based treatment and service providers, and the formerly incarcerated community. The ESC shall have expertise in homelessness and housing, behavioral health and substance abuse treatment, and effective rehabilitative treatment for adults and juveniles.” The ESC shall make recommendations regarding the design, efficacy, and viability of proposals, and make recommendations on to develop guidelines for the submission of proposals, including threshold or scoring criteria, or both, that do all of the following:

1. Prioritize proposals that advance principles of restorative justice while demonstrating a capacity to reduce recidivism.

2. Prioritize proposals that leverage other federal, state, and local funds or other social investments, as specified.

3. Prioritize proposals that provide for all of the following:

1. Mental health services, substance use disorder treatment services, misdemeanor diversion programs, or some combination thereof.

2. Housing-related assistance that utilizes evidence-based models, including, but not limited to, those recommended by the federal Department of Housing and Urban Development. Housing-related assistance may include, but is not limited to, financial assistance, including security deposits, utility payments, moving-cost assistance, and up to 24 months of rental assistance, and housing stabilization assistance, including case management, relocation assistance, outreach and engagement, landlord recruitment, housing navigation and placement, and credit repair.

3. Other community-based supportive services, such as job skills training, case management, and civil legal services.

4. Prioritize proposals that leverage existing contracts, partnerships, memoranda of understanding, or other formal relationships to provide one or more of the services noted above.

5. Prioritize proposals put forth by a public agency in partnership with a philanthropic or nonprofit organization.

6. Prioritize proposals that promote interagency and regional collaborations.

7. Consider ways to promote services for people with offenses identical or similar to those addressed by the Safe Neighborhoods and Schools Act of 2014, without precluding assistance to a person with other offenses in his or her criminal history.

8. Consider geographic diversity, appropriate limits for administrative costs and overhead, and consider proposals that provide services to juveniles.

9. Permit proposals to expand the capacity of an existing program and prohibit proposals from using the fund to supplant funding for an existing program.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee states:

• Minor workload impact to the BSCC to administer the specified grant program and establish the ESC, as Proposition 47 already requires the BSCC to administer a grant program.

• Potentially significant increase in annual grant awards issued (federal/state/private funds), as this bill creates a new fund, the Second Chance Fund, which is continuously appropriated, and may receive funds not only from the savings resulting from Proposition 47, but also from other federal, state, local, or private sources.

• Potential future cost pressure (Special Fund/General Fund) due to the extension of the sunset date. According to the BSCC, $5 million was appropriated from the Recidivism Reduction Fund for this program, with funding estimated to be fully allocated to the three local county projects by June 30, 2016.

SUPPORT: (Verified 8/28/15)

All of Us or None

American Federation of State, County and Municipal Employees, AFL-CIO

Area Congregations Together

Berkeley City Council

C & C Development Co.

California Association of Code Enforcement Officers

California Attorneys for Criminal Justice

California Building Industry Association

California Catholic Conference of Bishops

California College and University Police Chiefs Association

California Council of Community Mental Health Agencies

California Housing Consortium

California Labor Federation

California Narcotic Officers Association

California Police Chiefs Association

California Rural Legal Assistance Foundation

California State Association of Counties

California State Council of the Service Employees International Union

Californians for Safety and Justice

Christian Church Homes

Circulate San Diego

City Heights Community Development Corporation

City of Los Angeles

City of Torrance

City of West Hollywood

Community Action North Bay

Community Housing Opportunities Corporation

Community HousingWorks

Corporation for Supportive Housing

County Behavioral Health Directors Association

County of San Bernardino

County Welfare Directors Association of California

Drug Policy Alliance

East Bay Housing Organizations

Friends Committee on Legislation of California

Girls Think Tank

Highridge Costa Investors, LLC

Housing California

Hunger Advocacy Network

Iglesia Adventista del Septimo Dia

Jewish Family Service of San Diego

League of California Cities

Legal Services for Prisoners with Children

LINC Housing

Los Angeles Community Action Network

Los Angeles County Board of Supervisors

MAAC

Mental Health America of California

Monterey County Board of Supervisors

National Alliance on Mental Illness California

National Association of Social Workers, California Chapter

National Center for Youth Law

Non-Profit Housing Association of Northern California

Northern California Community Loan Fund

Pacific Clinics

PATH

Rural Smart Growth Task Force

St. Anthony Foundation

San Diego Housing Federation

San Diego and Imperial Counties Labor Council

San Francisco Mayor Edwin Lee

Santa Clara County Board of Supervisors

Satellite Affordable Housing Associates

South Bay Community Services

Southern California Association of NonProfit Housing

The Arc and United Cerebral Palsy California Collaboration

The Hampstead Companies

TransForm

Wakeland Housing and Development Corporation

Western Center on Law and Poverty

Western Regional Advocacy Project

Numerous individuals

OPPOSITION: (Verified 8/28/15)

None received

ARGUMENTS IN SUPPORT: The author states in part, “California voters approved Proposition 47, known as the Safe Neighborhood and Schools Act of 2014. The measure was enacted to ensure that prison spending is focused on violent and serious offenses, to maximize alternatives for non-serious, nonviolent crime, and to invest the savings generated from Proposition 47 into prevention and support programs. AB 1056 provides important fiscal and policy direction by making the highest and best use of the savings accruing from Proposition 47, directing them toward diversion and collaborative programs that address the root causes of recidivism of those formerly incarcerated: the urgent need for housing, mental health services, and substance abuse treatment.”

ASSEMBLY FLOOR: 78-0, 6/2/15

AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Chávez, Grove

Prepared by: Alison Anderson / PUB. S. /

8/31/15 11:43:32

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 1056 (Atkins) - Second Chance Program

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on August 27, 2015

Bill Summary:

AB 1056 would enact the Second Chance Program, which would require the Board of State and Community Corrections (BSCC) to administer a competitive grant program using savings resulting from the implementation of Proposition 47, the Safe Neighborhoods and Schools Act of 2014, and other fund sources, as specified. This bill would also extend the sunset date on the Social Innovation Financing Program by two years to January 1, 2022.

Fiscal Impact:

• Minor workload impact to the BSCC to administer the specified grant program and establish the Executive Steering Committee, as Proposition 47 already requires the BSCC to administer a grant program.

• Potentially significant increase in annual grant awards issued (Federal/State/Private funds), as the bill creates a new fund, the Second Chance Fund, which is continuously appropriated, and may receive funds not only from the savings resulting from Proposition 47, but also from other federal, state, local, or private sources.

• Potential future cost pressure (Special Fund/General Fund) due to the extension of the sunset date. According to the BSCC, $5 million was appropriated from the Recidivism Reduction Fund for this program, with funding estimated to be fully allocated to the three local county projects by June 30, 2016.

Author Amendments:

Remove the specific makeup of executive steering committee membership and extend the sunset on the Social Innovation Financing Program for two years.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 1056 (Atkins) - Second Chance Program

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 1056 would enact the Second Chance Program, which would require the Board of State and Community Corrections (BSCC) to administer a competitive grant program using savings resulting from the implementation of Proposition 47, the Safe Neighborhoods and Schools Act of 2014, and other fund sources, as specified.

Fiscal Impact:

• Minor workload impact to the BSCC to administer the specified grant program and establish the Executive Steering Committee, as Proposition 47 already requires the BSCC to administer a grant program.

• Potentially significant increase in annual grant awards issued (Federal/State/Private funds), as the bill creates a new fund, the Second Chance Fund, which is continuously appropriated, and may receive funds not only from the savings resulting from Proposition 47, but also from other federal, state, local, or private sources.

Background:

In 2014, the voters approved Proposition 47, the Safe Neighborhoods and Schools Act, which reduces the penalties for certain drug and property crimes. Proposition 47 requires the resulting state savings to be deposited into the Safe Neighborhoods and Schools Fund (SNSF), and requires these funds to be disbursed by August 15^th of each fiscal year beginning in 2016 to various state agencies for specified purposes, as follows:

• Twenty-five percent to the Department of Education, to administer a grant program to public agencies aimed at improving outcomes for public school pupils in kindergarten and grades 1 to 12, inclusive, by reducing truancy and supporting students who are at risk of dropping out of school or are victims of crime.

• Ten percent to the Victim Compensation and Government Claims Board, to make grants to trauma recovery centers to provide services to victims of crime.

• Sixty-five percent to the BSCC to administer a grant program to public agencies aimed at supporting mental health treatment, substance abuse treatment, and diversion programs for people in the criminal justice system, with an emphasis on programs that reduce recidivism of people convicted of less serious crimes and those who have substance abuse and mental health problems.

Under existing law, the agency responsible for administering the programs is prohibited from spending more than five percent of the total funds it receives from the SNSF on an annual basis for administrative costs. (Government Code § 7599.2.)

Proposed Law:

This bill would enact the Second Chance Program, to be administered by the BSCC, as follows:

• Restricts the program to supporting mental health treatment, substance use treatment, and diversion programs for persons in the criminal justice system, with an emphasis on programs that reduce recidivism of persons convicted of less serious crimes, such as those covered by the Safe Neighborhoods and Schools Act of 2014, and those who have substance use and mental health problems.

• Defines “public agency” to mean a county, city, whether a general law city or a chartered city, or city and county, the duly constituted governing body of an Indian reservation or rancheria, a school district, municipal corporation, district, political subdivision, or any board, commission, or agency thereof, entities that are legislative bodies of a local agency, as specified, a housing authority, a state agency, public district, or other political subdivision of the state, or any instrumentality thereof, which is authorized to engage in or assist in the development or operation of housing for persons and families of low or moderate income.

• Creates the Second Chance Fund, to be administered by the BSCC, with moneys in the fund to be continuously appropriated without regard to fiscal year. 

• Requires the BSCC to deposit the moneys disbursed to it pursuant to Proposition 47 into the Second Chance Fund.

• Provides that the Second Chance Fund may receive moneys from any other federal, state, or local grant, or from any private donation or grant, for the purposes of this article.

• Provides that the BSCC may not spend more than 5 percent annually of the moneys in the fund for administrative costs.

• Requires the BSCC to administer a competitive grant program that focuses on community-based solutions for reducing recidivism. The grant program, at minimum, is required to do all of the following:

  • Restrict eligibility to proposals designed to serve people who have been arrested, charged with, or convicted of criminal offense and have a history of mental health or substance use disorders.

  • Restrict eligibility to proposals that offer mental health services, substance use disorder treatment services, misdemeanor diversion programs, or some combination thereof.

  • Restrict eligibility to proposals that have a public agency as the lead applicant.

• Requires the BSCC to create an executive steering committee (ESC) to develop guidelines for administration of the grant program, consistent with the purposes of the bill. The ESC is to adopt guidelines for the submission of proposals, including threshold or scoring criteria, or both, that do all of the following:

  • Prioritize proposals that advance principles of restorative justice while demonstrating a capacity to reduce recidivism.

  • Prioritize proposals that leverage other federal, state, and local funds or other social investments, as specified.

  • Prioritize proposals that provide for all of the following:

    • Mental health services, substance use disorder treatment services, misdemeanor diversion programs, or some combination thereof.

    • Housing-related assistance that utilizes evidence-based models, including, but not limited to, those recommended by the federal Department of Housing and Urban Development. Housing-related assistance may include, but is not limited to, financial assistance, including security deposits, utility payments, moving-cost assistance, and up to 24 months of rental assistance, and housing stabilization assistance, including case management, relocation assistance, outreach and engagement, landlord recruitment, housing navigation and placement, and credit repair.

    • Other community-based supportive services, such as job skills training, case management, and civil legal services.

  • Prioritize proposals that leverage existing contracts, partnerships, memoranda of understanding, or other formal relationships to provide one or more of the services noted above.

  • Prioritize proposals put forth by a public agency in partnership with a philanthropic or nonprofit organization.

  • Prioritize proposals that promote interagency and regional collaborations.

  • Consider ways to promote services for people with offenses identical or similar to those addressed by the Safe Neighborhoods and Schools Act of 2014, without precluding assistance to a person with other offenses in his or her criminal history.

  • Consider geographic diversity, appropriate limits for administrative costs and overhead, and consider proposals that provide services to juveniles.

  • Permit proposals to expand the capacity of an existing program and prohibit proposals from using the fund to supplant funding for an existing program.

• Requires the ESC to consist of 13 members, as follows:

  • A formerly incarcerated individual who has received or is receiving mental health or substance use disorder treatment.

  • A family member of a current or formerly incarcerated individual.

  • A mental health expert, appointed by the Senate Committee on Rules.

  • A substance use disorders expert, appointed by the Speaker of the Assembly.

  • A housing programs expert.

  • An expert on homelessness.

  • Two community-based supportive service providers with experience in providing services to formerly incarcerated individuals and reducing recidivism.

  • A community supervision expert.

  • An academic expert with a history of research and expertise on the best practices for reducing recidivism.

  • A member of the BSCC.

  • A public agency administrator.

  • An additional expert, to be selected by the BSCC.

Related Legislation:

SB 515 (Beall) 2015 would have required the BSCC to award at least two-thirds of the grant funding received by the BSCC under Proposition 47 to be allocated to public behavioral health agencies, or other public agencies that provide behavioral health services, as specified. This bill was held on the Suspense File of this Committee.

-- END --

SENATE COMMITTEE ON PUBLIC SAFETY

Senator Loni Hancock, Chair

2015 - 2016 Regular

Bill No: AB 1056 Hearing Date: June 30, 2015

Subject: Proposition 47: Second Chance Program

HISTORY

Source: Author

Prior Legislation: None

Support: All of Us or None; The American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO; The Arc and United Cerebral Palsy California Collaboration; Area Congregations Together; Berkeley City Council; C & C Development Co.; California Association of Code Enforcement Officers; California Attorneys for Criminal Justice; California Building Industry Association; California Catholic Conference of Bishops; California College and University Police Chiefs Association; California Council of Community Mental Health Agencies; California Labor Federation; California Narcotic Officers Association; California Police Chiefs Association; California Rural Legal Assistance Foundation; California State Association of Counties; California State Council of the Service Employees International Union (SEIU); Californians for Safety and Justice; Christian Church Homes; Circulate San Diego; City Heights Community Development Corporation; City of Los Angeles; City of Torrance; City of West Hollywood; Community Action North Bay; Community Housing Opportunities Corporation; Community HousingWorks; Corporation for Supportive Housing; County Behavioral Health Directors Association; County Welfare Directors Association of California; Drug Policy Alliance; East Bay Housing Organizations; Friends Committee on Legislation of California; Girls Think Tank; The Hampstead Companies; Highridge Costa Investors, LLC; Housing California; Hunger Advocacy Network; Iglesia Adventista del Septimo Dia; Jewish Family Service of San Diego; League of California Cities; Legal Services for Prisoners with Children; LINC Housing; Los Angeles Community Action Network; Los Angeles County Board of Supervisors (if amended); MAAC; Mental Health America of California; Monterey County Board of Supervisors; National Alliance on Mental Illness California; National Association of Social Workers, California Chapter; National Center for Youth Law; Non-Profit Housing Association of Northern California; Northern California Community Loan Fund; Pacific Clinics; PATH; Rural Smart Growth Task Force; St. Anthony Foundation; San Diego Housing Federation; San Diego and Imperial Counties Labor Council; San Francisco Mayor Edwin Lee; Santa Clara County Board of Supervisors; Satellite Affordable Housing Associates; South Bay Community Services; Southern California Association of NonProfit Housing; TransForm; Wakeland Housing and Development Corporation; Western Center on Law and Poverty; Western Regional Advocacy Project; numerous individuals

Opposition: California State Sheriffs’ Association

Assembly Floor Vote: 78 - 0

PURPOSE

The purpose of this bill is to enact the “Second Chance Program,” relating to savings resulting from the Passage of Proposition 47, the ‘Safe Neighborhoods and Schools Act,” in November of 2014, as specified.

Current law reflects the provisions of Proposition 47, also known as the Safe Neighborhoods and Schools Act, which was approved by the voters in November 2014. Proposition 47 reduced the penalties for certain drug and property crimes and directed that the resulting state savings be directed to mental health and substance abuse treatment, truancy and dropout prevention, and victims’ services, as specified. The initiative also made additional changes to criminal laws. (See Legislative Analyst's Office analysis of Proposition 47, http://www.lao.ca.gov/ ballot/2014/prop-47-110414.pdf.)

Current law, as enacted by Proposition 47, requires that by August 15 of each fiscal year beginning in 2016, the Controller shall disburse moneys deposited in the Safe Neighborhoods and Schools Fund as follows:

1. Twenty five percent to the State Department of Education, to administer a grant program to public agencies aimed at improving outcomes for public school pupils in kindergarten and grades 1 to 12, inclusive, by reducing truancy and supporting students who are at risk of dropping out of school or are victims of crime.

2. Ten percent to the California Victim Compensation and Government Claims Board, to make grants to trauma recovery centers to provide services to victims of crime pursuant to Section 13963.1 of the Government Code.

3. Sixty five percent to the Board of State and Community Corrections, to administer a grant program to public agencies aimed at supporting mental health treatment, substance abuse treatment, and diversion programs for people in the criminal justice system, with an emphasis on programs that reduce recidivism of people convicted of less serious crimes, such as those covered by this measure, and those who have substance abuse and mental health problems. (Government Code § 7599.2(a).)

Current law requires that, for each of these programs, the agency responsible for administering the programs shall not spend more than 5 percent of the total funds it receives from the Safe Neighborhoods and Schools Fund on an annual basis for administrative costs.

Current law requires the controller to conduct an audit of these grant programs “to ensure the funds are disbursed and expended solely according to this chapter and shall report his or her findings to the Legislature and the public,” as specified.

Current law requires that the funding established pursuant to this act “be used to expand programs for public school pupils in kindergarten and grades 1 to 12, inclusive, victims of crime, and mental health and substance abuse treatment and diversion programs for people in the criminal justice system. These funds shall not be used to supplant existing state or local funds utilized for these purposes.”

Current law provides that local agencies are not obligated to provide programs or levels of service described in these provisions above the level for which funding has been provided.

“Second Chance Program”

This bill would enact the “Second Chance Program,” (“Program”) with the following features and requirements:

Purpose and Limitations

This bill would provide that the purpose of the Program “is to build safer communities by investing in community-based programs, services, and initiatives for formerly incarcerated individuals in need of mental health and substance use treatment services.”

This bill would provide that the Program “shall be restricted to supporting mental health treatment, substance use treatment, and diversion programs for persons in the criminal justice system, with an emphasis on programs that reduce recidivism of persons convicted of less serious crimes, such as those covered by the Safe Neighborhoods and Schools Act of 2014, and those who have substance use and mental health problems.”

Administration

This bill would provide that the Board of State and Community Corrections (“BSCC”) shall administer the Program.

This bill would define certain terms, as specified.

Establishment of “Second Chance Fund”

This bill would create the “Second Chance Fund” in the State Treasury.

This bill would require BSCC to be responsible for administering the fund.

This bill would provide that “moneys in the fund are hereby continuously appropriated without regard to fiscal year for the purposes of” its provisions.

This bill would require BSCC to “deposit the moneys disbursed to it” into the Second Chance Fund, as specified.

This bill would provide that the “Second Chance Fund may receive moneys from any other federal, state, or local grant, or from any private donation or grant, for the purposes of this article.”

This bill would provide that the BSCC shall not spend more than 5 percent annually of the moneys in the fund for administrative costs.

Grant Program

This bill would require the BSCC to “administer a competitive grant program to carry out the purposes of this article that focuses on community-based solutions for reducing recidivism. The grant program shall, at minimum, do all of the following:

1. Restrict eligibility to proposals designed to serve people who have been arrested, charged with, or convicted of criminal offense and have a history of mental health or substance use disorders.

2. Restrict eligibility to proposals that offer mental health services, substance use disorder treatment services, misdemeanor diversion programs, or some combination thereof.

3. Restrict eligibility to proposals that have a public agency as the lead applicant.

Committee to Develop Guidelines for Grant Program

This bill would require the BSCC to “create a committee to develop guidelines for administration of the grant program, consistent with the purposes of this article.”

This bill would require this committee to “adopt guidelines for the submission of proposals, including threshold or scoring criteria, or both, that do all of the following:

1. Prioritize proposals that advance principles of restorative justice while demonstrating a capacity to reduce recidivism.

2. Prioritize proposals that leverage other federal, state, and local funds or other social investments, such as the following sources of funding:

1. The Drug Medi-Cal Treatment Program (22 Cal. Code Regs. 51341.1, 51490.1, and 51516.1).

2. The Mental Health Services Act, enacted by Proposition 63 at the November 2, 2004, general election, as amended.

3. Funds provided for in connection with the implementation of Chapter 15 of the Statutes of 2011.

4. The Community Corrections Performance Incentives Act (Stats. 2009, Ch. 608; Chapter 3 (commencing with Section 1228) of Title 8 of Part 2).

5. The tax credits established pursuant to Sections 12209, 17053.57, and 23657 of the Revenue and Taxation Code.

6. The federal Department of Housing and Urban Development funds, such as the Emergency Solutions Grant program (42 U.S.C. Sec. 11371 et seq.).

7. The federal Department of Veterans Affairs Supportive Services for Veteran Families program (38 U.S.C. Sec. 2044).

8. Social Innovation Funds established by the Corporation for National and Community Service pursuant to Section 12653k of Title 42 of the United States Code.

9. The Edward Byrne Memorial Justice Assistance Grant Program (42 U.S.C. Sec. 3750 et seq.).

3. Prioritize proposals that provide for all of the following:

1. Mental health services, substance use disorder treatment services, misdemeanor diversion programs, or some combination thereof.

2. Housing-related assistance that utilizes evidence-based models, including, but not limited to, those recommended by the federal Department of Housing and Urban Development. Housing-related assistance may include, but is not limited to, the following:

1. Financial assistance, including security deposits, utility payments, moving-cost assistance, and up to 24 months of rental assistance.

2. Housing stabilization assistance, including case management, relocation assistance, outreach and engagement, landlord recruitment, housing navigation and placement, and credit repair.

3. Other community-based supportive services, such as job skills training, case management, and civil legal services.

4. Prioritize proposals that leverage existing contracts, partnerships, memoranda of understanding, or other formal relationships to provide one or more of the services prioritized in paragraph (3).

5. Prioritize proposals put forth by a public agency in partnership with a philanthropic or nonprofit organization.

6. Prioritize proposals that promote interagency and regional collaborations.

7. Consider ways to promote services for people with offenses identical or similar to those addressed by the Safe Neighborhoods and Schools Act of 2014, without precluding assistance to a person with other offenses in his or her criminal history.

8. Consider geographic diversity.

9. Consider appropriate limits for administrative costs and overhead.

10. Consider proposals that provide services to juveniles.

11. Permit proposals to expand the capacity of an existing program and prohibit proposals from using the fund to supplant funding for an existing program.

This bill would require that this committee “consist of 13 members and shall be composed as follows:

1. A formerly incarcerated individual who has received or is receiving mental health or substance use disorder treatment.

2. A family member of a current or formerly incarcerated individual.

3. A mental health expert, appointed by the Senate Committee on Rules.

4. A substance use disorders expert, appointed by the Speaker of the Assembly.

5. A housing programs expert.

6. An expert on homelessness.

7. Two community-based supportive service providers with experience in providing services to formerly incarcerated individuals and reducing recidivism.

8. A community supervision expert.

9. An academic expert with a history of research and expertise on the best practices for reducing recidivism.

10. A member of the board.

11. A public agency administrator.

12. An additional expert, to be selected by the board.

Legislative Findings and Declarations

This bill states legislative findings and declarations that this act furthers the intent of the Safe Neighborhoods and Schools Act enacted by Proposition 47 at the November 4, 2014, general election.”

This bill states additional legislative findings and declarations concerning Proposition 47, mental health issues and substance use disorders among the offender population, the importance of prioritizing “projects that combine mental health services, substance use treatment services, housing, housing-related job assistance, job skills training, and other community-based supportive services will help the state meaningfully reduce recidivism” and “the use of restorative justice principles in addressing recidivism,” as specified.

RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION

For the past eight years, this Committee has scrutinized legislation referred to its jurisdiction for any potential impact on prison overcrowding. Mindful of the United States Supreme Court ruling and federal court orders relating to the state’s ability to provide a constitutional level of health care to its inmate population and the related issue of prison overcrowding, this Committee has applied its “ROCA” policy as a content-neutral, provisional measure necessary to ensure that the Legislature does not erode progress in reducing prison overcrowding.

On February 10, 2014, the federal court ordered California to reduce its in-state adult institution population to 137.5% of design capacity by February 28, 2016, as follows:

• 143% of design bed capacity by June 30, 2014;

• 141.5% of design bed capacity by February 28, 2015; and,

• 137.5% of design bed capacity by February 28, 2016.

In February of this year the administration reported that as “of February 11, 2015, 112,993 inmates were housed in the State’s 34 adult institutions, which amounts to 136.6% of design bed capacity, and 8,828 inmates were housed in out-of-state facilities. This current population is now below the court-ordered reduction to 137.5% of design bed capacity.”( Defendants’ February 2015 Status Report In Response To February 10, 2014 Order, 2:90-cv-00520 KJM DAD PC, 3-Judge Court, Coleman v. Brown, Plata v. Brown (fn. omitted).

While significant gains have been made in reducing the prison population, the state now must stabilize these advances and demonstrate to the federal court that California has in place the “durable solution” to prison overcrowding “consistently demanded” by the court. (Opinion Re: Order Granting in Part and Denying in Part Defendants’ Request For Extension of December 31, 2013 Deadline, NO. 2:90-cv-0520 LKK DAD (PC), 3-Judge Court, Coleman v. Brown, Plata v. Brown (2-10-14). The Committee’s consideration of bills that may impact the prison population therefore will be informed by the following questions:

• Whether a proposal erodes a measure which has contributed to reducing the prison population;

• Whether a proposal addresses a major area of public safety or criminal activity for which there is no other reasonable, appropriate remedy;

• Whether a proposal addresses a crime which is directly dangerous to the physical safety of others for which there is no other reasonably appropriate sanction;

• Whether a proposal corrects a constitutional problem or legislative drafting error; and

• Whether a proposal proposes penalties which are proportionate, and cannot be achieved through any other reasonably appropriate remedy.

COMMENTS

1. Stated Need for This Bill

The author states:

California voters approved Proposition 47, known as the Safe Neighborhood and Schools Act of 2014. The measure was enacted to ensure that prison spending is focused on violent and serious offenses, to maximize alternatives for non-serious, nonviolent crime, and to invest the savings generated from Proposition 47 into prevention and support programs. AB 1056 provides important fiscal and policy direction by making the highest and best use of the savings accruing from Proposition 47, directing them toward diversion and collaborative programs that address the root causes of recidivism of those formerly incarcerated: the urgent need for housing, mental health services, and substance abuse treatment.

Research has shown that people in the criminal justice system disproportionately suffer from mental health issues and substance use disorders. Nationally, over half of people in prisons or jails have experienced a mental health issue within the last year, and over half of the women in jail and 44% of men in jail have a drug or alcohol dependency.

Due to their criminal backgrounds, people in the criminal justice system and formerly incarcerated individuals have difficulty securing housing and employment upon leaving incarceration. These challenges are compounded for people who live with mental health issues or substance abuse disorders.

2. What This Bill Would Do

Proposition 47, also known as the Safe Neighborhoods and Schools Act, was approved by the voters in November 2014. Proposition 47 made a number of changes in criminal penalties and provided that the resulting state savings be directed to mental health and substance abuse treatment, truancy and dropout prevention, and victims’ services. (See Legislative Analyst's Office analysis of Proposition 47, http://www.lao.ca.gov/ballot/ 2014/prop-47-110414.pdf.) Proponents of Proposition 47 submitted in part:

Proposition 47 is sensible. It focuses law enforcement dollars on violent and serious crime while providing new funding for education and crime prevention programs that will make us all safer. . . . Proposition 47 stops wasting money on warehousing people in prisons for nonviolent petty crimes, saving hundreds of millions of taxpayer funds every year. . . . (Proposition 47) dictates the massive savings to crime prevention strategies in K–12 schools, assistance for victims of crime, and mental health treatment and drug treatment to stop the cycle of crime.

As explained above, savings attributed to the sentencing changes in Proposition 47 are split, with 25 percent for education, 10 percent for victim services, and 65 percent for a “grant program to public agencies aimed at supporting mental health treatment, substance abuse treatment, and diversion programs for people in the criminal justice system, with an emphasis on programs that reduce recidivism of people convicted of less serious crimes, such as those covered by this measure, and those who have substance abuse and mental health problems.”

This bill would establish a grant program and process for the Proposition 47 savings – the “Safe Neighborhoods and Schools Fund” [SNSF’]) to be allocated by the BSCC. The key features of this bill include enumerating a number of prioritized proposal features, and codifying the membership of a committee tasked with developing guidelines for the program.

In February of this year the Legislative Analyst Office stated that based “on historic sentencing practices, we estimate that the total annual deposit into the SNSF will likely range from $100 million to $200 million beginning in 2016–17. Because the state savings from the resentencing provisions in the measure are temporary in nature, the deposit in future years could be somewhat smaller, but will still likely fall within the $100 million to $200 million range. . . .

Although Proposition 47 states that the monies in the SNSF shall be allocated to particular departments based on specific percentages for particular purposes, the Legislature has the opportunity to provide some direction on how the funds are spent in a manner that furthers the purpose of the proposition. In particular we have identified a couple of key policy questions for legislative consideration. Specifically, the Legislature could weigh in on (1) how the individual departments should distribute the funds and (2) how much state oversight to provide to ensure that the funds are being spent effectively. In our view, the appropriate answers to these questions will vary depending on the program area. To the extent the Legislature wishes to weigh in on these issues, it has a couple of options. For example, the Legislature could hold hearings and ask the administration to present its plans for allocating the funds. The Legislature could also pass legislation directing the administration to allocate the funds consistent with its priorities. (We would note that, depending on the specific language, it is possible that such legislation could require a two–thirds majority vote of the Legislature, based on the provisions of the proposition.) In order to give the departments and potential grant recipients time to plan, we recommend that the Legislature begin addressing these issues in the near term. . . . (The 2015-16 Budget: Implementation of Proposition 47 (Feb. 17, 2015) Legislative Analyst’s Office.)

3. Priorities

This bill would establish a number of prioritized programs and enumerated considerations for the Proposition 47 funding under the BSCC:

• Proposals that advance principles of restorative justice while demonstrating a capacity to reduce recidivism.

• Proposals that leverage other federal, state, and local funds or other social investments.

• Proposals that provide for mental health services, substance use disorder treatment services, and misdemeanor diversion programs.

• Proposals that provide housing-related assistance that utilizes evidence-based models.

• Proposals that provide other community-based supportive services, such as job skills training, case management, and civil legal services.

• Proposals that leverage existing contracts, partnerships, memoranda of understanding, or other formal relationships to provide one or more of the prioritized services.

• Proposals put forth by a public agency in partnership with a philanthropic or nonprofit organization.

• Proposals that promote interagency and regional collaborations.

• Consider ways to promote services for people with offenses identical or similar to those addressed by the Safe Neighborhoods and Schools Act of 2014, without precluding assistance to a person with other offenses in his or her criminal history.

• Consider geographic diversity.

• Consider appropriate limits for administrative costs and overhead.

• Consider proposals that provide services to juveniles.

• Permit proposals to expand the capacity of an existing program and prohibit proposals from using the fund to supplant funding for an existing program.

WOULD THESE PRIORITIES FURTHER THE INTENT OF PROPOSITION 47?

4. Committee

In 2011, a longstanding practice of the BSCC and its predecessor entities (the Corrections Standards Authority and the Board of Corrections) to seek the input of outside experts and stakeholders through executive steering committees was codified. Penal Code section 6024 provides:

The board shall regularly seek advice from a balanced range of stakeholders and subject matter experts on issues pertaining to adult corrections, juvenile justice, and gang problems relevant to its mission. Toward this end, the board shall seek to ensure that its efforts (1) are systematically informed by experts and stakeholders with the most specific knowledge concerning the subject matter, (2) include the participation of those who must implement a board decision and are impacted by a board decision, and (3) promote collaboration and innovative problem solving consistent with the mission of the board. The board may create special committees, with the authority to establish working subgroups as necessary, in furtherance of this subdivision to carry out specified tasks and to submit its findings and recommendations from that effort to the board.

The BSCC (and its predecessors) has employed this process in numerous contexts, including the promulgation of regulations and the development of requests for proposals for grant programs. In addition, in 2013 AB 1050 (Dickinson) was enacted to require the BSCC to develop definitions of certain key terms, including recidivism and, in doing that work, to “consult with” specified stakeholders and experts. (Penal Code sec. 6027.)

This bill would require BSCC to “create a committee to develop guidelines for administration of the grant program,” and specifies 13 members of the committee.

SHOULD THE MEMBERSHIP OF THE COMMITTEE DEVELOPING GUIDELINES FOR THIS PROGRAM BE CODIFIED?

5. Opposition

The California State Sheriffs’ Association, which opposes this bill, states in part:

Unfortunately, we are concerned about the portion of the bill that statutorily mandates who shall serve on the executive steering committee (ESC) of the Board of State and Community Corrections (BSCC) that will ultimately be charged with addressing the BSCC’s role in overseeing the grant program at issue. The BSCC is well-versed in the creation of ESC’s and, in fact, the statute governing the BSCC speaks to this process in detail. . . .

Given existing law governing this issue, we feel it is inappropriate to legislatively set the composition of an ESC. As such, we must respectfully oppose this measure unless it is amended.

-- END –

Date of Hearing: May 27, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 1056

Author:(Atkins) – As Amended Ver:May 22, 2015

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY: This bill establishes the Second Chance Program (the Program) to build safer communities by investing in community-based programs, services, and initiatives for formerly incarcerated individuals in need of mental health and substance use treatment services. Specifically, this bill:

1. Directs the Board of State and Community Corrections (Board) to administer the program.

2. Establishes Second Chance Fund (the Fund) within the State Treasury and provides that the BSCC is responsible for administering the Fund.

3. Provides that the Fund can receive moneys from any federal, state and local grants, or any private donation or grants.

4. Provides that the Board cannot use moneys in the Fund to supplant funding to existing programs but can use moneys in the fund to expand the capacity of existing programs.

5. Caps the amount the Board can spend on administrative costs at 5% annually.

6. Requires the Board to establish and implement a Program that focuses on community-based solutions for reducing recidivism and, specifies minimum requirements.

FISCAL EFFECT:

1. Minor and absorbable costs to the Housing and Community Development Department (HCD) to work with the Board to administer the grant program.

2. The Legislative Analyst's Office (LAO) estimates that the savings resulting from Proposition 47, while subject to significant uncertainty, will likely range from $100 million to $200 million beginning in 2016-17. The Department of Finance estimates are lower.

COMMENTS:

1. Purpose. According to the author, "people in the criminal justice system and formerly incarcerated individuals have difficulty securing housing and employment upon leaving incarceration. These challenges are compounded for people who live with mental health issues or substance use disorders. California voters approved Proposition 47, known as the Safe Neighborhood and Schools Act of 2014. The measure was enacted to ensure that prison spending is focused on violent and serious offenses, to maximize alternatives for non-serious, nonviolent crime, and to invest the savings generated from Proposition 47 into prevention and support programs. However, additional guidance is needed on how to invest those savings to further the goals of the Proposition. AB 1056 provides guidance to the BSCC on the establishment of a competitive grant program through which 65% of the anticipated Proposition 47 savings (earmarked for mental health, substance abuse, and diversion programs) will be distributed to the community. The grant program will promote comprehensive, collaborative projects that serve people who have been arrested, charged with, or convicted of an offense and have a history of mental health issues."

2. Proposition 47. In 2014, the voters approved Proposition 47 which would reduce the penalties for certain non-violent, nonserious drug and property crimes and require the resulting state savings to be used to pay for mental health and substance use services, truancy, dropout prevention, and victim crimes. DOF will calculate the savings that accrue to the state from the implementation of Proposition 47. Proposition 47 requires the savings be distributed among state agencies as follows:

1. 25% to the California Department of Education, to administer a grant program to reduce truancy and support students who are at risk of dropping out of school or are victims of crime.

2. 10% to the California Victim Compensation and Government Claims Board, to make grants to trauma recovery centers to provide services to victims of crime.

3. 65% to the Board, to administer a grant program to public agencies aimed at supporting mental health treatment, substance abuse treatment, and diversion programs for people in the criminal justice system, with an emphasis on programs that reduce recidivism of people convicted of less serious crimes, such as those covered by Proposition 47, and those who have substance abuse and mental health problems.

The Legislature has authority under the Proposition to determine how the funds are used by the departments that receive them and how much oversight to provide to determine if the funds are used effectively. The LAO estimates that the savings resulting from Proposition 47, while subject to significant uncertainty, will likely range from $100 million to $200 million beginning in 2016-17.

AB 1056 provides direction to the Board on how to spend the 65% in savings directed to it to support mental health and substance use treatment. The bill sets out minimum criteria that the Board must use when creating the program and evaluating applicants based on the types of people served, services that should be funded, other funding sources that could be leveraged, and the level of geographic diversity, among other factors.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 29, 2015

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

Ed Chau, Chair

ABPCA Bill Id:AB 1056

Author:(Atkins) – As Amended Ver:April 20, 2015

SUBJECT: Second Chance Program

SUMMARY: Establishes the Second Chance Program (the Program) to build safer communities by investing in community-based programs, services, and initiatives for formerly incarcerated individuals in need of mental health and substance use treatment services. Specifically, this bill:

1. Includes legislative findings.

2. Directs the Board of State and Community Corrections (BSCC) to administer the program.

3. Includes the following definitions:

1. "Board" means the BSCC;

2. "Committee" means an Executive Steering Committee of the board;

3. "Fund" means the Second Chance Fund; and

4. "Recidivism" means a conviction of a new felony or misdemeanor committed within three years of release from custody or committed within three years of placement on supervision of a previous criminal conviction.

4. Establishes Second Chance Fund (the Fund) within the State Treasury.

5. Provides that the BSCC is responsible for administering the Fund.

6. Continuously appropriates moneys in the Fund without regard to fiscal year.

7. Directs the BSCC to deposit moneys disbursed to it by the State Controller into the Fund.

8. Provides that the Fund can receive moneys from any other federal, state and local grants or any private donation or grants.

9. Provides that the BSCC cannot use moneys in the fund to supplant funding to existing programs but can use moneys in the fund to expand the capacity of existing programs.

10. Caps the amount the BSCC can spend on administrative costs at 5% annually.

11. Requires BSCC to establish and implement a Program that focuses on community-based solutions for reducing recidivism and, at a minimum, does all of the following:

1. Restricts eligibility to projects designed to serve people who have been arrested, charged with, or convicted of criminal offenses and have a history of mental health or substance use problems;

2. Restricts eligibility to projects that offer mental health services, substance use disorder treatment services, misdemeanor diversion programs, or some combination of those;

3. Prioritizes projects that advance principles of restorative justice while demonstrating a capacity to reduce recidivism;

4. Prioritizes projects that leverage other federal, state, and local funds or other social investments, including but not limited to the following sources:

1. The Drug Medi-Cal Treatment Program;

2. Mental Health Services Act (MHSA);

3. Community Corrections Performance Incentives Act;

4. California Organized Investment Network (COIN) and Community Development Financial Institutions (CDFI) Tax Credit Program;

5. Department of Housing and Urban Development (HUD) Emergency Solutions Grant program;

6. Department of Veterans Affairs Supportive Services for Veterans Families program;

7. Social Innovation Funds established by the Corporation for National Community Service; and

8. Edward Byrne Memorial Justice Assistance Grant Program.

5. Ensures that Program guidelines and terms provide threshold or scoring criteria, or both, that strongly prioritize project applications that ensure provision of the following:

1. Mental health services, substance use disorder treatment services, misdemeanor diversion programs or some combination of those;

2. Housing-related assistance that utilizes evidence-based models including but not limited to those recommended by HUD, including but not limited to:

1. Financial assistance, including security deposits, utility payments, moving-cost assistance and up to 24 months of rental assistance;

2. Housing stabilization assistance, including case management, relocation assistance, outreach and engagement, landlord recruitment, housing navigation and placement, and credit repair; and

3. Other community-based and wrap-around services, including but not limited to, job skills training, case management, and civil legal services.

6. Promote proposals that place an emphasis on serving persons arrested for, charged with or convicted of a less serious offense, with minimal restrictions related to their prior criminal history;

7. Promotes public and private partnerships;

8. Promotes proposals that include community-based philanthropic and non-profit organizations;

9. Promotes interagency and regional collaborations;

10. Considers geographic diversity; and

11. Requires the BSCC to establish a committee consisting of the following members, to assist in developing guidelines for administering the program:

1. A formerly incarcerated individual who has received mental health or substance use disorder treatment;

2. A mental health expert;

3. A substance use disorders expert;

4. A housing programs expert;

5. A homelessness prevention expert;

6. Two community-based social service providers with experience in providing services to formerly incarcerated individuals and reducing recidivism;

7. A public safety expert;

8. An academic expert with a history of research and expertise on the best practices for reducing recidivism;

9. A member of the BSCC; and

10. An additional expert to be selected by the BSCC.

EXISTING LAW:

1. Proposition 47: the Safe Neighborhood and Schools Act of 2014 (Proposition 47) requires a misdemeanor sentence instead of felony for petty theft, receiving stolen property, and forging or writing bad checks when the value or amount involved is $950 or less. Requires a misdemeanor sentence instead of felony for certain drug possession offenses. Allows a felony sentence for these offenses if a person has a previous conviction for crimes such as rape, murder or child molestation, or is a registered sex offender. Requires resentencing for persons serving felony sentences for these offenses unless the court finds an unreasonable public safety risk. Applies the savings to mental health and drug treatment programs, K-12 schools, and crime victims

2. Establishes the Safe Neighborhoods and Schools Fund within the State Treasury and continuously appropriates moneys in the fund (Government Code 7599).

3. Requires the Director of Finance to calculate the savings that accrue to the state from the implementation of Proposition 47 (Government Code 7599.2).

4. Requires the State Controller to disburse moneys from the Safe Neighborhoods and Schools Fund by August 15 of each fiscal year beginning in 2016 as follows:

1. Twenty‑five percent to the State Department of Education, to administer a grant program to public agencies aimed at improving outcomes for public school pupils in kindergarten and grades one to twelve, inclusive, by reducing truancy and supporting students who are at risk of dropping out of school or are victims of crime.

2. Ten percent to the California Victim Compensation and Government Claims Board, to make grants to trauma recovery centers to provide services to victims of crime pursuant to Section 13963.1 of the Government Code.

3. Sixty‑five percent to the BSCC, to administer a grant program to public agencies aimed at supporting mental health treatment, substance abuse treatment, and diversion programs for people in the criminal justice system, with an emphasis on programs that reduce recidivism of people convicted of less serious crimes, such as those covered by this measure, and those who have substance abuse and mental health problems (Government Code 7599.2).

FISCAL EFFECT: Unknown.

COMMENTS:

Background: In response to prison overcrowding directives as well as recent public safety reforms such as AB 109 (Budget Committee), Chapter 15, Statutes of 2011 and Proposition 47, unprecedented numbers of formerly incarcerated individuals are returning to our communities. Nationally, over half of people in prisons or jails have experienced a mental health issue within the last year, and over half of women in jail and 44% of men in jail have a drug or alcohol dependency. As a result of these factors, many detained in local jails are chronic offenders who frequently cycle in and out of the jail facility and other public crisis systems in part because of their long histories of residential instability or homelessness, chronic mental and physical health issues, and substance abuse disorders. A pilot study in Ohio placed ex-offenders reentering the community into a comprehensive program which addressed their mental health, substance abuse, and housing needs and provided other wrap-around services. The study found that risk of re-arrest decreased, time in the community between arrests increased, and more behavioral health services could be provided.

Proposition 47: In 2014, the voters approved Proposition 47 which would reduce the penalties for certain non-violent, nonserious drug and property crimes and require the resulting state savings to be used to pay for mental health and substance use services, truancy, dropout prevention, and victim crimes. DOF will calculate the savings that accrue to the state from the implementation of Proposition 47. Proposition 47 requires the savings be distributed among state agencies as follows:

• Twenty‑five percent to the State Department of Education, to administer a grant program to public agencies aimed at improving outcomes for public school pupils in kindergarten and grades one to twelve, inclusive, by reducing truancy and supporting students who are at risk of dropping out of school or are victims of crime.

• Ten percent to the California Victim Compensation and Government Claims Board, to make grants to trauma recovery centers to provide services to victims of crime pursuant to Section 13963.1 of the Government Code.

• Sixty‑five percent to the BSCC, to administer a grant program to public agencies aimed at supporting mental health treatment, substance abuse treatment, and diversion programs for people in the criminal justice system, with an emphasis on programs that reduce recidivism of people convicted of less serious crimes, such as those covered by Proposition 47, and those who have substance abuse and mental health problems.

The Legislature has authority under the Proposition to determine how the funds are used by the departments that receive them and how much oversight to provide to determine if the funds are used effectively. The Legislative Analyst's Office (LAO) estimates that the savings resulting from Proposition 47, while subject to significant uncertainty, will likely range from $100 million to $200 million beginning in 2016-17.

AB 1056 provides direction to the BSCC on how to spend the 65% in savings directed to it to support mental health and substance use treatment. The bill sets out minimum criteria that the BSCC must use when creating the program and how to evaluate applicants based on the types of people served, services that should be funded, other funding sources that could be leveraged, and the level of geographic diversity, among other factors.

Housing provisions of this bill: AB 1056 would direct the BSCC to ensure that the Program guidelines and terms provide threshold or scoring criteria, or both, that strongly prioritize project applications that include rapid re-housing services. Modeled after the federal Homelessness Prevention and Rapid Re-Housing Program (HPRP) program, these services can include financial assistance, including security deposits, utility payments, and moving-cost assistance. In addition, projects may provide housing stabilization assistance, including case management, relocation assistance, outreach and engagement, landlord recruitment, housing navigation and placement, and credit repair. The amount of rental assistance would be capped at 24 months.

The bill also directs BSCC to prioritize through threshold or scoring criteria, applications for projects that provide mental health services, substance use disorder treatment services, misdemeanor diversion programs, job skills training, case management, and civil legal services. Applicants could provide these services with the rapid re-housing services described above or without.

AB 1056 also requires the BSCC to establish a ten person committee to help develop the guidelines for the program. Included on the committee are two housing representatives: a housing programs expert and a homelessness prevention expert.

Purpose of this bill: According to the author, "people in the criminal justice system and formerly incarcerated individuals have difficulty securing housing and employment upon leaving incarceration. These challenges are compounded for people who live with mental health issues or substance use disorders. California voters approved Proposition 47, known as the Safe Neighborhood and Schools Act of 2014. The measure was enacted to ensure that prison spending is focused on violent and serious offenses, to maximize alternatives for non-serious, nonviolent crime, and to invest the savings generated from Proposition 47 into prevention and support programs. However, additional guidance is needed on how to invest those savings to further the goals of the Proposition. AB 1056 provides guidance to the BSCC on the establishment of a competitive grant program through which 65% of the anticipated Proposition 47 savings (earmarked for mental health, substance abuse, and diversion programs) will be distributed to the community. The grant program will promote comprehensive, collaborative projects that serve people who have been arrested, charged with, or convicted of an offense and have a history of mental health issues."

Arguments in support: Various organizations support AB 1056 and the goal of establishing a stable housing source for formerly incarcerated individuals. The National Association of Social Workers writes, "housing supports provide a broad range of services from financial assistance for rent and security deposits to case management and legal services. Supporters also include mental health, substance abuse, and employment services. This is an important necessary step for these former offenders and it truly gives them a second chance at success."

Committee amendments:

1. Page 7, line 2, after “disorders.” insert “As a result, many formerly incarcerated people, especially those with mental health issues or substance use disorders, experience homelessness. Experiencing homelessness greatly increases the likelihood that a formerly incarcerated person recidivates.”

2. Page 7, line 5 after “substance use treatment services,” insert “housing,”

3. Page 7, line 7 strike “wrap-around social “ and insert “supportive”

4. Page 7, line 13 after “substance use treatment services,” insert “housing,”

5. Page 7, line 14 strike “wrap-around social “ and insert “supportive”

6. Page 8, line 2 after “administer a ” insert “grant ”

7. Page 8, line 11 insert “(d) “Public agency” means a county; city, whether general law or chartered; city and county; the duly constituted governing body of an Indian reservation or rancheria; school district; municipal corporation; district; political subdivision; or any board, commission or agency thereof; entities that are legislative bodies of a local agency pursuant to subdivisions (c) and (d) of Section 54952 of the Government Code; housing authority organized pursuant to Part 2 (commencing with Section 34200) of Division 24 of the Health and Safety Code, and also includes any state agency, public district or other political subdivision of the state, and any instrumentality thereof, which is authorized to engage in or assist in the development or operation of housing for persons and families of low or moderate income.”

8. Page 8, line 29 strike “(d) The Board shall not use moneys allocated to the Fund to supplant funding to existing programs, but may be used to expand the capacity of an existing program.”

9. Page 8, line 31 strike “establish and implement a” and insert “administer a competitive grant”

10. Page 8, line 33 after “The” insert “grant”

11. Page 8, line 35 strike “projects” and insert “proposals”

12. Page 8, line 37 strike “problems” and insert “disorders”

13. Page 8 line 38 strike “projects” and insert “proposals”

14. Page 8 line 40 after “combination theorof” insert

“(3) Restrict eligibility to proposals that have a public agency as one of the applicants.

(b) The Board shall create a Committee to develop guidelines for administration of this program, consistent with the purposes of this article. The Committee shall adopt guidelines for the submission of proposals, including threshold or scoring criteria or both, that do each of the following:”

15. Page 9 line 1 strike “projects” and insert “proposals”

16. Page 9 line 3 strike “projects” and insert “proposals”

17. Page 9 line 17 after “Urban Development” insert “funds, such as the”

18. Page 9 line 27 strike “Ensure program guidelines and terms provide threshold or scoring criteria, or both, that strongly prioritize project applications that ensure provision of the following:” and insert “Prioritize proposals that provide for each of the following:”

19. Page 10 line 5 strike “wrap around services, including but not limited to,” and insert “supportive services such as”

20. Page 10, line 8 strike

“Promote proposals that place an emphasis on servicing persons arrested for, charged with, or convicted of a less serious offense, but with minimal restrictions related to their prior criminal history.

Promote public and private partnerships.

Promote proposals that include community-based philanthropic and non-profit organizations.

Promote interagency and regional collaborations.

Consider geographic diversity.”

21. Page 10, line 8 insert

“Prioritize proposals that leverage existing contracts, partnerships, memoranda of understanding or other formal relationships to provide one or more of the services prioritized in subsection (3).

Prioritize proposals put forth by a public agency in partnership with philanthropic or nonprofit organizations.

Prioritize proposals that promote interagency and regional collaboration.

Consider ways to promote services for people with offenses identical to or similar to those addressed by the Safe Neighborhoods and Schools Act of 2014 without precluding assistance to people with other offenses in their criminal history.

Consider geographic diversity.

Consider appropriate limits for administrative costs and overhead.

Consider proposals that provide services to juveniles.

Permit proposals to expand the capacity of an existing program but prohibit proposals from using the fund to supplant funding for an existing program.”

22. Page 10, line 17 strike “board shall establish a committee to assist in developing guidelines for administration of the program established pursuant to subdivision (a) consistent with this article. The ”

23. Page 10, line 20 strike “11” and insert “13”

24. Page 10, line 22 after “treatment.” insert “ (2) A family member of a current or formerly incarcerated individual.”

25. Page 10, line 23 after “expert” insert “, appointed by the California Senate.”

26. Page 10, line 24 after “expert” insert “, appointed by the California Assembly.”

27. Page 10, line 26 strike “A homelessness prevention expert.” and insert “An expert on homelessness.”

28. Page 10, line 27 strike “social” and insert “supportive”

29. Page 10, line 30 strike “A public safety expert” and insert “A community supervision expert”

30. Page 10, line 33 after “board.” insert “A public agency administrator.”

REGISTERED SUPPORT / OPPOSITION:

Support

A Community of Friends

Adobe Communities

AFSCME, AFL-CIO

All of Us or None

Area Congregations Together

BIA of Southern California Los Angeles/Ventura Chapter

California Building Industry Association (CBIA)

California Chamber of Commerce

California Community Foundation

California Council of Community Mental Health Agencies

California Housing Consortium

California Immigrant Policy Center

California Police Chiefs Association

Californians for Safety and Justice

City of San Francisco

Coalition for Economic Survival

Community Action North Bay

Community Corporation of Santa Monica

Community Housing Opportunities Corporation

Community Resource Center

Corporation for Supportive Housing

County of San Francisco

Department of Housing and Community Development of Los Angeles

Drug Policy Alliance

East LA Community Corporation

Enterprise Community Partners

Heaven's Windows

Highridge Costa Housing Partners, LLC

Highridge Costa Investors, LLC

Housing Authority of the City of Los Angeles

Housing California

Housing of Merit

Hunger Advocacy Network

Inquilinos Unidos

Jewish Family Service of San Diego

Legal Services for Prisoners with Children (LSPC)

LINC Housing

Los Angeles Business School

Los Angeles Community Action Network (LA CAN)

Mayor, City of Long Beach-Robert Garcia

Mayor, City of Los Angeles-Eric Garcetti

Mayor, City of Oakland-Libby Schaaf

Mayor, City of Sacramento-Kevin Johnson

Mayor, City of San Francisco-Ed Lee

Mayor, City of San Jose-Sam Liccardo

Mayor, City of Santa Ana-Miguel Pulido

Mercy Housing California

NAMI California

National Association of Social Workers - California Chapter (NASW-CA)

National Center for Youth Law (NCYL)

Non-Profit Housing Association of Northern California (NPH)

PATH

PATH Ventures

Public Counsel

Related California

San Diego Housing Federation

San Diego Hunger Coalition

Santa Clara County Board of Supervisors

Satellite Affordable Housing Association

Skid Row Housing Trust

South Bay Community Services

Southern California Association of NonProfit Housing

St. Anthony Foundation

TransForm

United Way of Greater Los Angeles

West Hollywood Community Housing Corporation

Western Center on Law & Poverty

Western Regional Advocacy Project (WRAP)

WORKS

Opposition

None on file.

Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085