GOVERNOR'S VETO

GV Bill Id:AB 1085

Author:(McCarty)

As Enrolled Ver:September 12, 2019

2/3 vote

SUMMARY:

Encourages After School Education and Safety programs, the 21st Century Community Learning Centers programs, and the 21st Century High School After School Safety and Enrichment for Teens programs to establish programs that are designed to educate about and prevent substance use disorders or to prevent harm from substance abuse; requires the State Department of Health Care Services (DHCS) to enter into interagency agreements with the California Department of Education (CDE) to administer those programs and allocate their funding; and specifically authorizes DHCS to consider selecting those programs for funding from the Youth Education, Prevention, Early Intervention, and Treatment Account (YEPEITA) portion of the Control, Regulate and Tax Adult Use of Marijuana Act.

Governor's Veto Message:

"This bill would authorize the Department of Health Care Services to redirect cannabis tax funds generated under Proposition 64 to after-school programs administered by the state. I support increased access to after-school programs, which is why I worked with the Legislature to provide an additional $50 million to support these programs. This bill, however, attempts to change the funding allocation process specified by Proposition 64, which does not authorize the Legislature to modify the fund allocation process prior to July 1, 2028."

COMMENTS:

Research supports positive outcomes for high quality after-school programs, including reductions in drug use. Research suggests that regular attendance in expanded learning programs increases student achievement, attendance, and positive behaviors as well as closing of achievement gaps. A review of 68 studies on after-school participation across the country found that high quality programs are associated with significant increases in academic performance, school attendance, as well as positive social behaviors and significant reductions in conduct problems and drug use. A 2012 study by The National Youth Violence Prevention Resource Center found that children who do not spend any time in after-school activities are 49 percent more likely to have used drugs.

According to the Author:

"In November of 2016, the voters passed Proposition 64—the Control, Regulate and Tax Adult Use of Marijuana Act of 2016—which legalizes, regulates, and taxes the adult use of cannabis. The Proposition 64 campaign clearly articulated its intent for after‐school programs to be a prime beneficiary of these new revenues and it is critical that laws and regulations honor this intent. Even though voters were sold and promised that after-school programs would receive Proposition 64 funds, there are no current assurances, which is why AB 1085 is needed.

Stagnant funding for after-school programs threaten quality and access to successful programs that help prevent youth substance abuse and that voters were promised would be funded to ensure student access but the demand for these programs far exceeds funding and these programs are inadequately funded to ensure quality programs which are necessary to prevent substance abuse. Keeping kids supervised and providing youth with positive opportunities and mentoring relationships do and will reduce drug use and ensure better academic success in the classroom."

Arguments in Support:

The California Afterschool Advocacy Alliance states, "In November 2016, the voters passed Proposition 64 which legalized, regulated, and taxed the adult use of cannabis. The Yes on Proposition 64 ballot argument stated that "64 pays for itself and raises billions for after-school programs that help kids stay in school," and after-school programs were prominently featured in campaign ads. The Prop. 64 campaign clearly intended for after-school programs to be a prime beneficiary of these new revenues and it is critical that laws and regulations honor this intent.

Research shows that youth drug use increases in the after-school hours and that quality after-school programs prevent and reduce drug use, juvenile crime, and school dropout. After-school programs provide supervised alternative activities, safe spaces, positive adult relationships, and provide essential academic support and enrichment opportunities to help students succeed in school and prepare for the jobs of tomorrow.

California's publicly funded after-school system serves nearly 500,000 students in over 4,500 schools daily. However, after-school programs cannot meet the current and growing demand for these programs under the dual threat of dramatically under-resourced state-funded programs and the proposed elimination of all federally funded programs. AB 1085 is essential to keep the promise made by California voters for revenue from Proposition 64 to support and increase access to high-quality after-school programs for youth in California's most underserved communities."

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

According to the Senate Appropriations Committee:

1. By specifying the after-school programs for which DHCS may consider funding from the YEPEITA, this bill could create unknown but significant cost pressure to provide funding for those programs. Staff notes that the 2019 Budget Act includes a total of $143.3 million ongoing funds ($80.5 million Proposition 64, $50 million General Fund, and $12.8 million federal Child Care and Development Fund) to increase access for more than 9,400 children in the Alternative Payment Program and more than 3,000 children in the General Child Care Program. The $50 million General Fund is one-time and considered an acceleration of future cannabis revenues.
2. There could be additional ongoing costs, potentially in the hundreds of thousands of dollars, for CDE to administer any new programs that are established. A precise amount would depend on the interagency agreement with DHCS, what role CDE would have in administering the programs, how the grants would be awarded, and the total amount that would be available for disbursement from the YEPEITA. Proposition 64 allows departments to use up to four percent of the moneys allocated to the YEPEITA for administrative costs related to implementation, evaluation, and oversight of the programs.

VOTES:

ASM EDUCATION: 6-0-0

YES: O'Donnell, Kiley, Kalra, McCarty, Smith, Weber

ASM HEALTH: 15-0-0

YES: Wood, Mayes, Aguiar-Curry, Bigelow, Bonta, Burke, Wicks, Flora, Limón, McCarty, Nazarian, Ramos, Rodriguez, Santiago, Waldron

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

ASSEMBLY FLOOR: 78-0-2

YES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Obernolte, Patterson, Petrie‑Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

ABS, ABST OR NV: Cooley, Eduardo Garcia

SENATE FLOOR: 40-0-0

YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dahle, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Jones, Leyva, McGuire, Mitchell, Monning, Moorlach, Morrell, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Stone, Umberg, Wieckowski, Wiener, Wilk

UPDATED:

VERSION: September 12, 2019

CONSULTANT: Debbie Look / ED. / (916) 319-2087 FN: 0002499

 THIRD READING  

Bill No: AB 1085

Author: McCarty (D)

Amended: 4/2/19 in Assembly

Vote: 21

SENATE EDUCATION COMMITTEE: 7-0, 6/26/19

AYES: Leyva, Wilk, Chang, Durazo, Glazer, McGuire, Pan

SENATE HEALTH COMMITTEE: 8-0, 7/10/19

AYES: Pan, Stone, Lena Gonzalez, Hurtado, Leyva, Mitchell, Monning, Rubio

NO VOTE RECORDED: Grove

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/30/19

AYES: Portantino, Bates, Bradford, Durazo, Hill, Jones, Wieckowski

ASSEMBLY FLOOR: 78-0, 5/29/19 - See last page for vote

SUBJECT: After school programs: substance use prevention: funding: cannabis revenue

SOURCE: California Afterschool Advocacy Alliance

DIGEST:

This bill (1) encourages After School Education and Safety (ASES) programs, the 21st Century Community Learning Centers (21st CCLC) programs, and the 21st Century High School After School Safety and Enrichment for Teens (ASSETs) programs to establish programs that are designed to educate about and prevent substance use disorders or to prevent harm from substance abuse; (2) requires the State Department of Health Care Services (DHCS) to enter into interagency agreements with the California Department of Education (CDE) to administer those programs and allocate their funding; and (3) specifically authorizes DHCS to consider selecting those programs for funding from the Control, Regulate and Tax Adult Use of Marijuana Act.

ANALYSIS:

Existing law:

1) Establishes the ASES program through the 2002 voter-approved initiative, Proposition 49. The ASES program funds the establishment of local before and after school education and enrichment programs, which are created through partnerships between schools and local community resources to provide literacy, academic enrichment and safe constructive alternatives for students in kindergarten through ninth grade. (Education Code § 8482)

2) Establishes the 21st CCLC contained within the federal No Child Left Behind Act of 2001 to complement the ASES program, and specifies that the requirements of the ASES program apply to the 21st CCLC program with specified exceptions. (EC § 8484.7)

3) Establishes the 21st Century ASSETs Program to create incentives for establishing locally driven after school enrichment programs between schools and local community organizations serving pupils from grades nine through twelve. (EC § Section 8421)

4) Establishes effective January 1, 2018, a cannabis excise tax to be imposed upon purchasers of cannabis or cannabis products sold in this state at the rate of 15 percent of the average market price of any retail sale by a cannabis retailer. (Revenue and Taxation Code § 34011)

5) Establishes the California Cannabis Tax Fund in the State Treasury consisting of all taxes, interest, penalties, and other amounts collected and paid to the board to carry out the purposes of the Control, Regulate and Tax Adult Use of Marijuana Act and all revenues deposited into the Tax Fund, together with interest or dividends earned by the fund, are to be expended only in accordance with the provisions of the Act. (RTC § 34018)

6) Provides that, by July 15 of each year, beginning in 2018-19 the State Controller will, after disbursing funds for other specified purposes, disburse 60 percent of the remaining funds into the Youth Education, Prevention, Early Intervention and Treatment Account to DHCS for programs for youth designed to educate about and to prevent substance abuse disorders and to prevent harm from substance use. Requires the DHCS to enter into interagency agreements with the State Department of Public Health and the CDE to implement and administer these programs. Specifies that these programs may include, but are not limited to, the following:

a) Prevention and early intervention services to recognize and reduce risks associated with substance use and the early signs of problematic use and of substance abuse disorders.

b) Grants to schools for student assistance programs designed to prevent and reduce substance abuse, and improve school retention and performance, by supporting students who are at risk of dropping out of school and promoting alternatives to suspension or expulsion.

c) Grants to programs for outreach, education, and treatment for homeless youth and out-of-school youth with substance use disorders.

d) Access and linkage to care provided by county behavioral health programs for youth who have, or are at risk of developing, a substance use disorder.

e) Youth-focused substance use disorder treatment programs, which utilize a two-generation approach with the capacity to treat youth and adults together.

f) Programs to assist individuals, as well as families and friends, to reduce the stigma associated with substance use including seeking substance use disorder services. (RTC § 34019)

This bill (1) encourages ASES programs, 21st CCLC programs, and the 21st Century High School ASSETs programs to establish programs that are designed to educate about and prevent substance use disorders or to prevent harm from substance abuse; (2) requires the DHCS to enter into interagency agreements with the CDE to administer those programs and allocate their funding; and (3) specifically authorizes DHCS to consider selecting those programs for funding from the Control, Regulate and Tax Adult Use of Marijuana Act. Specifically, this bill:

1) Adds, expressly, youth development activities that promote healthy choices and behaviors in order to prevent and reduce substance use and improve school retention and performance to list of activities authorized as part of the enrichment element of an ASSETs program.

2) Encourages schools to establish ASSETs programs, ASES programs, and 21st CCLC programs, with an effective evidence-based, or evidence-informed educational enrichment element that is designed to educate about and prevent substance use disorders or to prevent harm from substance abuse through a broad array of academic and enrichment activities, including activities to prevent and reduce substance use, and improve school retention and performance.

3) Requires the DHCS to enter into interagency agreements with CDE to implement and administer such ASSETs, ASES, and 21^st CCLC programs and to allocate to schools from the Youth Education, Prevention, Early Intervention and Treatment Account (YEPEITA) established pursuant AUMA in accordance with conditions and requirements as may be established by DHCS.

4) Requires such an ASSETs, ASES, or 21st CCLC program to annually provide to the CDE, at a date determined by CDE, information indicating the specific outcomes being addressed by that program and any changes in measurable outcomes identified as goals of that program including, but not limited to, reductions in dropout rates, reductions in substance abuse disorders, decreased rates of school suspensions and expulsions, or increased graduation rates, over the span of the funding.

5) Requires the CDE, for these ASSETS, ASES, and 21^st CCLC programs, on or before January 1, 2021, and at least annually thereafter, to provide to the Legislature, and shall make available publicly on the CDEs internet website, a report detailing both of the following:

a) Budget information, including funding allocated to each agency and specific outcomes addressed.

b) Data measuring outcomes, and year-over-year trend data that demonstrate the progress that has been attained in meeting target levels for each outcome.

6) Authorizes the DHCS, in determining which programs to fund for youth that are designed to educate about and to prevent substance use disorders and to prevent harm from substance use, to consider selecting the ASES, ASSETS, and 21st CCLC programs identified above.

7) States legislative findings and declarations relating to ASES, ASSETs, and 21st CCLC programs and the AUMA, including the following:

a) Because the ASES Program, the 21st CCLC program, and the 21st Century High School ASSESTs program augment the regular schoolday and keep youth supervised during a time when they are at risk of substance abuse, these programs are uniquely positioned to provide alternatives to substance abuse and provide education and assistance to pupils about substance abuse, how it can affect their academic performance, and how to avoid substance abuse.

b) In approving Proposition 64 at the November 8, 2016, statewide general election, the voters of California identified substance abuse pupil assistance programs in schools as a high priority for the allocation of tax revenue from the sale and cultivation of cannabis and cannabis products.

c) The ASES Program, 21st CCLC Program, and the ASSETs Program represent ideal conduits for Proposition 64 tax revenues to realize the goals of preventing and reducing substance abuse among pupils and improving school retention and performance.

8) States legislative findings and declarations that its provisions the purposes of the After School Education and Safety Program Act of 2002.

Comments

1. Need for the bill. According to the author, “In November of 2016, the voters passed Prop 64—the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) of 2016—which legalizes, regulates, and taxes the adult use of cannabis. The initiative is expected to generate up to $1 billion annually in tax revenue, with 60% of revenues dedicated to youth education, prevention, and treatment. The Yes on Prop. 64 ballot argument stated that Proposition, “64 pays for itself and raises billions for afterschool programs that help kids stay in school.

“The Prop 64 campaign clearly articulated its intent for after‐school programs to be a prime beneficiary of these new revenues and it is critical that laws and regulations honor this intent. Even though voters were sold and promised that after school programs would receive Prop 64 funds, there are no current assurances, which is why AB 1744 is needed.

“Stagnant funding for after school programs threaten quality and access to successful programs that help prevent youth substance abuse and that voters were promised would be funded to ensure student access but the demand for these programs far exceeds funding and these programs are inadequately funded to ensure quality programs which are necessary to prevent substance abuse. Keeping kids supervised and providing youth with positive opportunities and mentoring relationships do and will reduce drug use and ensure better academic success in the classroom.”

2) Unmet need for expanded learning opportunities in California. According to a 2016-17 report, “State of the State of Expanded Learning in California” by the California After School Network, California has the largest expanded learning infrastructure in the nation. These programs support after school, summer, inter-session and before school programs at over 4,500 sites serving nearly 860,000 children annually with a daily capacity of 485,000. However, as noted by the author, “Over 2,900 low income schools, including over 1,000 elementary and middle schools, do not benefit from a state ASES or federally funded 21st CCLC after school program. In addition, more than a quarter (29 percent) of the state’s over 1.3 million English Learners attend schools that do not benefit from an ASES or 21st CCLC after school program. The most recent cohorts of ASES and 21st CCLC (including ASSETs – high school programs) funding illustrate a significant unmet need for Expanded Learning in California. In the most recent cohorts of ASES and 21st CCLC funding applicants requested over $143 million more funding than was available, leaving hundreds of thousands of students without the benefit of a quality expanded learning program.”

Related/Prior Legislation

AB 1725 (Carrillo, 2019) requires funding for ASES programs to be increased to reflect increases in the minimum wage and the Consumer Price Index, subject to an appropriation, beginning in the 2019-20 fiscal year, and specifies conditions for ongoing increases. AB 1725 was not heard in the Senate Education Committee.

AB 1744 (McCarty, 2018) was substantially similar to this bill and would have authorized DHCS to consider after school programs in allocating funds generated from an excise tax on the retail sale of cannabis for youth education, prevention and treatment efforts. The bill was held in the Senate Appropriations Committee.

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

According to the Senate Appropriations Committee:

• By specifying the after school programs for which DHCS may consider funding from the YEPEITA, this bill could create unknown but significant cost pressure to provide funding for those programs. Staff notes that the 2019 Budget Act includes a total of $143.3 million ongoing funds ($80.5 million Proposition 64, $50 million General Fund, and $12.8 million federal Child Care and Development Fund) to increase access for more than 9,400 children in the Alternative Payment Program and more than 3,000 children in the General Child Care Program. The $50 million General Fund is one-time and considered an acceleration of future cannabis revenues.
• There could be additional ongoing costs, potentially in the hundreds of thousands of dollars, for CDE to administer any new programs that are established. A precise amount would depend on the interagency agreement with DHCS, what role CDE would have in administering the programs, how the grants would be awarded, and the total amount that would be available for disbursement from the YEPEITA. Proposition 64 allows departments to use up to four percent of the moneys allocated to the YEPEITA for administrative costs related to implementation, evaluation, and oversight of the programs.

SUPPORT: (Verified 8/30/19)

California Afterschool Advocacy Alliance (source)
A World Fit for Kids
Arc
Berkeley PTA
Boys & Girls Clubs of Carson
California Afterschool Network
California Alliance of Boys & Girls Clubs
California Association of Black School Educators
California Council of Community Behavioral Health Agencies
California Federation of Teachers
California-Hawaii State Conference of the NAACP
California School-age Consortium
California State Alliance of YMCAs
California State PTA
California Teaching Fellows Foundation
Children Now
Citizen Schools
Compton Unified School District
EduCare Foundation
Escuela Popular
Fight Crime: Invest in Kids
Inplay
LA's BEST After School Enrichment Program
Los Angeles Unified School District
Mission: Readiness
Newport Mesa Unified School District Project Kidz Connect
Oakland Unified School District
Partnership for Children & Youth
Pasadena Learns After School Program
ReadyNation
Sacramento Chinese Community Service Center
Sierra Sands Unified School District
Student Success Institute, Inc.
The Children's Initiative
Think Together
Woodcraft Rangers
YMCA of Greater Long Beach
YMCA of San Diego County, Youth and Family Services
Youth Alliance

OPPOSITION: (Verified 8/30/19)

None received

ASSEMBLY FLOOR: 78-0, 5/29/19

AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

NO VOTE RECORDED: Cooley, Eduardo Garcia

Prepared by: Brandon Darnell / ED. /

9/1/19 10:04:08

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

AB 1085 (McCarty) - After school programs: substance use prevention: funding: cannabis revenue

Bill Summary:

This bill encourages After School Education and Safety (ASES) programs, the 21st Century Community Learning Centers Program (21st CCLC), and the 21st Century High School After School Safety and Enrichment for Teens Program (ASSETs) to establish programs that are designed to educate about and prevent substance use disorders or to prevent harm from substance abuse. This bill also authorizes the Department of Health Care Services (DHCS) to consider selecting those programs for funding from the Control, Regulate and Tax Adult Use of Marijuana Act (Proposition 64).

Fiscal Impact:

• By specifying the after school programs for which DHCS may consider funding from the Youth Education, Prevention, Early Intervention and Treatment Account (YEPEITA), this bill could create unknown but significant cost pressure to provide funding for those programs. Staff notes that the 2019 Budget Act includes a total of $143.3 million ongoing funds ($80.5 million Proposition 64, $50 million General Fund, and $12.8 million federal Child Care and Development Fund) to increase access for more than 9,400 children in the Alternative Payment Program and more than 3,000 children in the General Child Care Program. The $50 million General Fund is one-time and considered an acceleration of future cannabis revenues.
• There could be additional ongoing costs, potentially in the hundreds of thousands of dollars, for CDE to administer any new programs that are established. A precise amount would depend on the interagency agreement with DHCS, what role CDE would have in administering the programs, how the grants would be awarded, and the total amount that would be available for disbursement from the YEPEITA. Proposition 64 allows departments to use up to four percent of the moneys allocated to the YEPEITA for administrative costs related to implementation, evaluation, and oversight of the programs.

Background:

Existing law establishes the ASES program through the 2002 voter-approved initiative, Proposition 49. The ASES program funds the establishment of local before and after school education and enrichment programs, which are created through partnerships between schools and local community resources to provide literacy, academic enrichment and safe constructive alternatives for students in kindergarten through ninth grade.

Existing law establishes the 21st CCLC contained within the federal No Child Left Behind Act of 2001 to complement the ASES program, and specifies that the requirements of the ASES program apply to the 21st CCLC program with specified exceptions.

Existing law establishes the 21st Century ASSETs Program to create incentives for establishing locally driven after school enrichment programs between schools and local community organizations serving pupils from grades nine through twelve.

Existing law establishes, effective January 1, 2018, a cannabis excise tax to be imposed upon purchasers of cannabis or cannabis products sold in this state at the rate of 15 percent of the average market price of any retail sale by a cannabis retailer. Existing law establishes the California Cannabis Tax Fund in the State Treasury consisting of all taxes, interest, penalties, and other amounts collected and paid to the board to carry out the purposes of the Control, Regulate and Tax Adult Use of Marijuana Act (AUWA) and all revenues deposited into the Tax Fund, together with interest or dividends earned by the fund, are to be expended only in accordance with the provisions of the Act. Existing law specifies that the funds in the California Cannabis Tax Fund are to be disbursed as follows:

1. Reasonable costs incurred by various state agencies for carrying out specified duties associated with the Act.
2. Ten million dollars to a public university or universities annually beginning in 2018-19 to 2028-29 to research the effect of the Control, Regulate and Tax Adult Use of Marijuana Act.
3. Three million dollars annually from 2018-19 through 2022-23 to the California Highway Patrol to adopt protocols to determine whether a driver is operating a vehicle while impaired by the use of cannabis or cannabis products.
4. Ten million dollars annually in 2018-19, increasing to fifty million dollars in 2022-23 and beyond to the Governor’s Office of Business and Economic Development to administer a community reinvestments grants program.
5. Two million dollars annually to the University of California San Diego Center for Medicinal Cannabis Research.
6. By July 15 of each year, beginning in 2018-19 after disbursing funds for the purposes described above, disburse 60 percent of the remaining funds into the Youth Education, Prevention, Early Intervention and Treatment Account to the DHCS for programs for youth designed to educate about and to prevent substance abuse disorders and to prevent harm from substance use. The law requires DHCS to enter into interagency agreements with the State Department of Public Health and the California Department of Education (CDE) to implement and administer these programs. Specifies that these programs may include, but are not limited to, prevention and early intervention services to recognize and reduce risks associated with substance use and the early signs of problematic use and of substance abuse disorders, grants to schools for student assistance programs designed to prevent and reduce substance abuse, and improve school retention and performance, by supporting students who are at risk of dropping out of school and promoting alternatives to suspension or expulsion, and grants to programs for outreach, education, and treatment for homeless youth and out-of-school youth with substance use disorders.

Proposed Law:

This bill adds youth development activities that promote healthy choices and behaviors in order to prevent and reduce substance use and improve school retention and performance to list of activities authorized as part of the enrichment element of an ASSETs program.

This bill encourages schools to establish a 21st Century High School ASSETs program, ASES program, and 21st CCLC program, with an effective evidence-based, or evidence-informed educational enrichment element that is designed to educate about and prevent substance use disorders or to prevent harm from substance abuse through a broad array of academic and enrichment activities, including activities to prevent and reduce substance use, and improve school retention and performance.

This bill requires the DHCS to enter into interagency agreements with CDE to implement and administer such ASSETs, ASES, and 21^st CCLC programs and to allocate to schools from the YEPEITA established pursuant to the Control, Regulate and Tax Adult Use of Marijuana Act in accordance with conditions and requirements as may be established by DHCS.

This bill requires an ASSETs, ASES, or 21^st CCLC program to annually provide to the CDE information indicating the specific outcomes being addressed by that program and any changes in measurable outcomes identified as goals of that program including, but not limited to, reductions in dropout rates, reductions in substance abuse disorders, decreased rates of school suspensions and expulsions, or increased graduation rates, over the span of the funding.

This bill requires the CDE, for these ASSETS, ASES, and 21^st CCLC programs, on or before January 1, 2021, and at least annually thereafter, to provide to the Legislature, and shall make available publicly on the CDEs internet website, a report detailing budget information, data measuring outcomes, and year-over-year trend data that demonstrate the progress that has been attained in meeting target levels for each outcome.

This bill authorizes the DHCS, in determining which programs to fund for youth that are designed to educate about and to prevent substance use disorders and to prevent harm from substance use, to consider selecting the ASES, ASSETS, and 21st CCLC programs.

This bill includes legislative findings and declarations relating to ASES, ASSETs, and 21st CCLC programs and the AUMA, including:

a) Because the ASES Program, the 21st CCLC program, and the 21st Century High School ASSESTs program augment the regular schoolday and keep youth supervised during a time when they are at risk of substance abuse, these programs are uniquely positioned to provide alternatives to substance abuse and provide education and assistance to pupils about substance abuse, how it can affect their academic performance, and how to avoid substance abuse.

b) In approving Proposition 64 at the November 8, 2016, statewide general election, the voters of California identified substance abuse pupil assistance programs in schools as a high priority for the allocation of tax revenue from the sale and cultivation of cannabis and cannabis products.

c) The ASES Program, the 21st Century Community Learning Centers (21st CCLC) Program, and the ASSETs Program represent ideal conduits for Proposition 64 tax revenues to realize the goals of preventing and reducing substance abuse among pupils and improving school retention and performance.

Related Legislation:

AB 1098 (O’Donnell) establishes procedures for the implementation, evaluation and oversight of programs funded by Proposition 64 through the YEPEITA. AB 1098 is pending in this Committee.

AB 258 (Jones-Sawyer) establishes the School-Based Pupil Support Services Program and appropriates funds from the YEPEITA to increase in-school support services to pupils. AB 258 is scheduled to be heard in this Committee on August 12, 2019.

AB 1725 (Carrillo) requires funding for ASES programs to be increased to reflect increases in the minimum wage and the Consumer Price Index, subject to an appropriation, beginning in the 2019-20 fiscal year, and specifies conditions for ongoing increases. AB 1725 is pending in the Senate Education Committee.

AB 1744 (McCarty, 2018) was substantially similar to this bill and would have authorized DHCS to consider after school programs in allocating YEPEITA funds for youth education, prevention and treatment efforts. AB 1744 was held in this Committee.

-- END --

SENATE COMMITTEE ON HEALTH

Senator Dr. Richard Pan, Chair

BILL NO: AB 1085

SUBJECT: After school programs: substance use prevention: funding: cannabis revenue

SUMMARY:

Permits the Department of Health Care Services (DHCS) to consider selecting specified school programs to receive funds from the Youth Education, Prevention, Early Intervention and Treatment Account to target youth who have or are at risk of having a substance use disorder. Requires DHCS to enter into interagency agreements with the Department of Education to implement and administer programs for those purposes.

Existing law:

1. Establishes the After School Education and Safety (ASES) Program to create incentives for establishing locally driven before and after school enrichment programs both during schooldays and summer, intersession, or vacation days that partner public schools and communities to provide academic and literacy support and safe, constructive alternatives for youth. Requires the program to include an educational enrichment element, as specified. [EDC §8482, et seq.]
2. Establishes the 21st Century Community Learning Centers (21st CCLC) program contained within the federal No Child Left Behind Act of 2001 (Public Law 107-110) to provide year-round opportunities for expanded learning and to support local flexibility needed to implement federal 21st CCLC programs through after school grants, as specified. [EDC §8484.7, et seq.]
3. Establishes the 21st Century High School After School Safety and Enrichment for Teens (ASSET) program to create incentives for establishing locally driven after school enrichment programs that partner school and communities to provide academic support and safe, constructive alternatives for high school pupils in the hours after the regular schooldays, and that support college and career readiness. Requires a high school after-school program to include an enrichment element, as specified. [EDC §8421, et seq.]
4. Creates the Youth Education, Prevention, Early Intervention and Treatment Account (YEPEITA) pursuant to the 2016 ballot initiative, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA), or Proposition 64, to be administered by DHCS for programs for youth that are designed to educate about and to prevent substance use disorders and to prevent harm from substance abuse. [RTC §34019]

This bill:

1. Permits DHCS, in determining which programs to fund through the YEPEITA, to consider selecting, among other programs, programs established pursuant to ASES, 21st CCLC, and ASSET that meet the requirements specified by the YEPEITA and as otherwise determined by DHCS. Adds expanded learning programs as a component of student assistance programs funded through grants received from the YEPEITA in existing law.
2. Requires DHCS to enter into interagency agreements with the California Department of Education (CDE), pursuant to AUMA, to implement and administer programs under ASES, 21st CCLC, and ASSET, and to allocate funds to schools from the YEPEITA in accordance with conditions and requirements as may be established by DHCS. States that the Legislature encourages schools to establish programs pursuant to ASES, 21st CCLC, and ASSET to educate about and prevent substance use disorders (SUDs), as specified.
3. Requires, on or before January 1, 2021, and at least annually thereafter, CDE to provide to the Legislature, and make available on its website, a report that details the following for the ASES, 21^st CCLC, and ASSET programs:
   1. Budget information, including funding allocated to each agency and specific outcomes; and,
   2. Data measuring outcomes, and year-over-year trend data that demonstrate the progress that has been attained in meeting target levels for each outcome.

1. Requires the ASES and ASSET programs to include in their enrichment elements youth development activities that promote healthy choices and behaviors in order to prevent and reduce substance use and improve school retention and performance.
2. Makes technical, nonsubstantive changes.
3. Makes legislative findings and declarations related to dynamics that interfere with a pupil’s ability to achieve academically; the effect of after school programs on reducing substance abuse; and, the high priority identified by voters in passing AUMA for substance abuse pupil assistance programs funded by tax revenue from the sale and cultivation of cannabis and cannabis products.

FISCAL EFFECT:

According to the Assembly Appropriations Committee, potentially significant cost pressures on funds generated from an excise tax on the retail sale of cannabis; and ongoing General Fund costs to CDE, potentially in the mid hundreds of thousands of dollars, to administer new programs and annually report information to the Legislature and on its website.

PRIOR VOTES:

COMMENTS:

1. Author’s statement. According to the author, this bill will uphold a campaign promise made by the proponents of Prop. 64 by allowing DHCS to consider crucial afterschool programs for funding from regulated cannabis sales taxes. Afterschool programs provide a safe space for enrichment and growth for all students, particularly low-income students of color. Many ASES programs offer skills-based learning that focus on science, technology, engineering, and math; arts; and, physical activity.
2. ASES. According to CDE, ASES funds the establishment of local after school education and enrichment programs created through partnerships between school and local community resources to provide literacy, academic enrichment, and safe constructive alternatives for students in kindergarten through ninth grade. ASES provides an opportunity to merge school reform strategies with community resources, and involves collaboration among parents, youth, representatives from schools and governmental agencies, such as local law enforcement and local parks and recreation departments, and individuals from community-based organizations and the private sector. ASES is required to be aligned with, and not be a repeat of, the content of regular school day and other extended learning opportunities. Programs participating in ASES are required to submit annual student outcome data to CDE from local program evaluations. Data must include research-based indicators and measurable student outcomes for academic performance, attendance, and positive behavioral change. CDE considers the results of these evaluations when determining eligibility for three-year grant renewal. 
3. 21st CCLC/ASSETs. According to CDE, 21st CCLC/ASSETs is a state-administered, federally funded program that provides five-year grant funding to establish or expand before and after school programs that provide disadvantaged kindergarten through twelfth-grade students (particularly students who attend schools in need of improvement) with academic enrichment opportunities and supportive services to help the students meet state and local standards in core content areas. 21st CCLC/ASSETs establishes or expands activities that focus on improved academic achievement, enrichment services that reinforce and complement the academic program, and family literacy and related educational development services. Entities eligible to apply for funding include local educational agencies, cities, counties, community-based agencies, other public or private entities, or a consortium of two or more agencies, organizations, or entities. Programs are required to plan services through a collaborative process that includes parents, youth, and representatives of participating schools or local educational agencies, governmental agencies, community organizations, and the private sector.  
4. AUMA. In November 2016, voters passed AUMA, which, among other things, allocates 60% of taxes on cannabis, by July 15 of each fiscal year beginning in 2018-19, to the YEPEITA to be administered by DHCS for programs for youth that are designed to educate about and to prevent substance use disorders and to prevent harm from substance abuse. AUMA requires DHCS to enter into interagency agreements with the Department of Public Health (DPH) and CDE to implement and administer programs that emphasize accurate education, effective prevention, early intervention, school retention, and timely treatment services for youth and their families and caregivers. Programs are permitted to include components such as:
5. Prevention and early intervention services to recognize and reduce risk factors related to substance use and the early signs of problematic use and of substance use disorders;
6. Grants to schools to develop and support student assistance programs to prevent and reduce substance use, improve school retention and performance, support students who are at risk of dropping out of school, and promote alternatives to suspension and expulsion;
7. Grants to programs for outreach, education, and treatment for homeless youth and out-of-school youth with substance use disorders;
8. Access and linkage to care provided by county behavioral health programs for youth and their families and caregivers who have SUDs or are at risk of developing an SUD; and,
9. Youth-focused SUD programs that are culturally and gender competent, trauma-informed, evidence-based, and provide a continuum of care, as specified.

AUMA contains a provision that prohibits the Legislature, prior to July 1, 2028, from changing the allocation to DHCS from the YEPEITA from its stated purposes. 

1. Youth with SUDs. According to the National Institute on Drug Abuse (NIDA), people are most likely to begin abusing drugs—including tobacco, alcohol, and illegal and prescription drugs—during adolescence and young adulthood. By the time they are seniors, almost 70% of high school students will have tried alcohol, half will have taken an illegal drug, nearly 40% will have smoked a cigarette, and more than 20% will have used a prescription drug for a nonmedical purpose. There are many reasons adolescents use these substances, including the desire for new experiences, an attempt to deal with problems or perform better in school, and peer pressure. Adolescents in treatment report abusing different substances than adults do. For example, many more people aged 12 to 17 received treatment for marijuana use than for alcohol use in 2011 (65.5% versus 42.9%), whereas it was the reverse for adults. When adolescents do drink alcohol, they are more likely than adults to binge drink (defined as five or more drinks in a row on a single occasion). Adolescents are less likely than adults to report withdrawal symptoms when not using a drug, being unable to stop using a drug, or continued use of a drug in spite of physical or mental health problems; but they are more likely than adults to report hiding their substance use, getting complaints from others about their substance use, and continuing to use in spite of fights or legal trouble. NIDA states that adolescents also may be less likely than adults to feel they need help or to seek treatment on their own. Also, adolescents may have more difficulty than adults seeing their own behavior patterns (including causes and consequences of their actions) with enough detachment to tell they need help. Only 10% of 12 to 17 year olds needing SUD treatment actually receive any services, and when they do get treatment, it is often for different reasons than adults. The largest proportion of adolescents who receive treatment are referred by the juvenile justice system. NIDA states that given that adolescents with SUDs often feel they do not need help, engaging young patients in treatment often requires special skills and patience. 
2. Joint informational hearing. On February 13, 2019, the Senate Health and Education Committees held a joint informational hearing regarding the implementation of the YEPEITA to inform the Legislature about the planning and coordination among DHCS, DPH, and CDE to prepare for when funds are allocated. The hearing brought to light that, as of present, little has been done other than an informal convening of affected stakeholders—composed of behavioral health providers and advocates, and educators and education advocates—that department representatives occasionally attended. The LAO also provided an overview of AUMA as it relates to the YEPEITA and the potential role of the Legislature in the implementation of YEPEITA. The LAO stated that the Legislature should be guided by lessons learned from the implementation of the Mental Health Services Act, which lacked specificity and direction for major areas of implementation including: development of a robust data collection and evaluation framework, establishment of a set selection of outcomes, protocols for the management of unspent funds and establishment of appropriate reserve levels, determination of the relative importance of prevention/early intervention and treatment; and, addressing the workforce capacity issue. The LAO stated these lessons create an opportunity for the Legislature to provide direction and state its preferences related to YEPEITA spending.
3. Double referral. This bill was heard in the Senate Education Committee on June 26, 2019, and passed out by a vote of 7-0.
4. Related legislation. AB 258 (Jones-Sawyer) establishes the School-Based Pupil Support Services Program for CDE to awards grants to increase in-school support services to pupils in order to break down barriers to academic success with funding from the YEPEITA. AB 258 was heard in the Senate Education Committee on July 3, 2019, and passed out by a vote of 6-0.

AB 1098 (O’Donnell and Wood) requires DHCS, in collaboration with specified state agencies, to convene a technical advisory committee to assist in establishing procedures for the implementation and administration of programs funded by YEPEITA. Requires specified statewide assessments and reporting to the Legislature. Contains an urgency clause that will make this bill effective upon enactment. AB 1098 was heard in this Committee on June 26, 2019, and passed out by a vote of 8-0.

1. Prior legislation. AB 1744 (McCarty of 2018) was identical to this bill. AB 1744 was held on the Senate Appropriations Committee suspense file.

AB 2328 (Nazarian of 2018) would have enacted the Youth Substance Use Disorder Treatment and Recovery Program Act of 2018 with funding to be provided in part by YEPEITA. AB 2328 was held on the Assembly Appropriations Committee suspense file.

AB 2471 (Thurmond of 2018) would have required the transfer of funds from the YEPEITA to CDE to establish a grant program that would allow schools to provide in-school support services to pupils. AB 2471 was held on the Assembly Appropriations Committee suspense file.

AB 2471 (Thurmond of 2018) would have required the transfer of funds from the YEPEITA to the CDE to establish a grant program that would permit schools to provide in-school support services to pupils. AB 2471 was held on the Assembly Appropriations Committee suspense file.

AB 1135 (Wood of 2017) would have required DPH and CDE to establish an inclusive public stakeholder process to seek input from stakeholders to determine a disbursement formula for the funds provided to DHCS from the AUMA Fund. AB 1135 was held on the Assembly Appropriations Committee suspense file.

SB 191 (Beall of 2017) would have permitted a county or a qualified provider, as specified, and a local educational agency to enter into a partnership to create a program that targets pupils with mental health and substance use disorders. Stated legislative intent that funds from the YEPEITA be allocated for these purposes. SB 191 was held on the Senate Appropriations Committee suspense file.

1. Support. The California Afterschool Advocacy Alliance, sponsor of this bill, and other supporters, largely comprising child advocates and educators, argue that the AUMA campaign clearly intended for after school programs to be a prime beneficiary of the new revenues from cannabis, and it is critical that laws and regulations honor this intent. Supporters state that California has a strong after school infrastructure, and publicly funded programs serve 485,000 K-12 students daily in 4,500 schools, which target the highest poverty communities from which over 80% of students qualify for free or reduced-priced meals. Supporters state that many programs have long waiting lists and 41% of low-income schools have no state or federally funded after school programs. Supporters further argue that research shows that youth drug use increases in the after school hours and that quality after school programs prevent and reduce drug use, juvenile crime, and school dropout by providing supervised alternative activities, safe spaces, and positive adult relationships. Supporters state that stagnant funding for after school programs threaten quality and access to successful programs that help prevent youth substance abuse.

SUPPORT AND OPPOSITION:

Support: California Afterschool Advocacy Alliance (sponsor)

A World Fit for Kids!

Arc
Berkeley PTA Council
Boys & Girls Clubs of Carson

California Afterschool Advocacy Alliance
California Afterschool Network
California Alliance of Boys & Girls Clubs

California Federation of Teachers
California Hawaii State Conference of the NAACP

California School-Age Consortium

California State Alliance of YMCAs

California State PTA
California Teaching Fellows Foundation
Children Now

Citizen Schools
EduCare Foundation
Escuela Popular
Fight Crime: Invest In Kids
InPlay
LA’s BEST After School Enrichment Program
Mission: Readiness

Newport Mesa USD Project Kidz
Oakland Unified School District

Partnership for Children & Youth
Pasadena LEARNs Afterschool Program
ReadyNation

Sacramento Chinese Community Service Center
Sierra Sands Unified School District
Student Success Institute, Inc.
The Children's Initiative
Think Together
Woodcraft Rangers
Youth Alliance

YMCA of Greater Long Beach

YMCA of San Diego County

Oppose: None received

-- END --

SENATE COMMITTEE ON EDUCATION

Senator Connie Leyva, Chair

2019 - 2020 Regular

Bill No: Hearing Date: June 26, 2019

Subject: .

Note: This bill has been referred to the Committees on Education and Health. A "do pass" motion should include referral to the Committee on Health.

SUMMARY

This bill: (1) encourages After School Education and Safety (ASES) programs, the 21st Century Community Learning Centers (21st CCLC) programs, and the 21st Century High School After School Safety and Enrichment for Teens (ASSETs) programs to establish programs that are designed to educate about and prevent substance use disorders or to prevent harm from substance abuse; (2) requires the State Department of Health Care Services (DHCS) to enter into interagency agreements with the California Department of Education (CDE) to administer those programs and allocate their funding; and (3) specifically authorizes DHCS to consider selecting those programs for funding from the Control, Regulate and Tax Adult Use of Marijuana Act.

BACKGROUND

Existing law:

1) Establishes the ASES program through the 2002 voter-approved initiative, Proposition 49. The ASES program funds the establishment of local before and after school education and enrichment programs, which are created through partnerships between schools and local community resources to provide literacy, academic enrichment and safe constructive alternatives for students in kindergarten through ninth grade. (Education Code § 8482)

2) Establishes the 21st CCLC contained within the federal No Child Left Behind Act of 2001 to complement the ASES program, and specifies that the requirements of the ASES program apply to the 21st CCLC program with specified exceptions. (EC § 8484.7)

3) Establishes the 21st Century ASSETs Program to create incentives for establishing locally driven after school enrichment programs between schools and local community organizations serving pupils from grades nine through twelve. (EC § Section 8421)

4) Establishes effective January 1, 2018, a cannabis excise tax to be imposed upon purchasers of cannabis or cannabis products sold in this state at the rate of 15 percent of the average market price of any retail sale by a cannabis retailer. (Revenue and Taxation Code § 34011)

5) Establishes the California Cannabis Tax Fund in the State Treasury consisting of all taxes, interest, penalties, and other amounts collected and paid to the board to carry out the purposes of the Control, Regulate and Tax Adult Use of Marijuana Act (AUWA) and all revenues deposited into the Tax Fund, together with interest or dividends earned by the fund, are to be expended only in accordance with the provisions of the Act. (RTC § 34018)

6) Specifies that the Controller is to disburse funds in the California Cannabis Tax Fund as follows:

a) Reasonable costs incurred by various state agencies for carrying out specified duties associated with the Act.

b) Ten million dollars ($10,000,000) to a public university or universities annually beginning in 2018-19 to 2028-29 to research the effect of the Control, Regulate and Tax Adult Use of Marijuana Act.

c) Three million dollars ($3,000,000) annually from 2018-19 through 2022-23 to the California Highway Patrol to adopt protocols to determine whether a driver is operating a vehicle while impaired by the use of cannabis or cannabis products.

d) Ten million dollars ($10,000,000) annually in 2018-19, increasing to fifty million dollars ($50,000,000) in 2022-23 and beyond to the Governor’s Office of Business and Economic Development to administer a community reinvestments grants program.

e) Two million dollars ($2,000,000) annually to the University of California San Diego Center for Medicinal Cannabis Research.

f) By July 15 of each year, beginning in 2018-19 the Controller will, after disbursing funds for the purposes identified in (a) through (e) above, disburse 60 percent of the remaining funds into the Youth Education, Prevention, Early Intervention and Treatment Account to California Department of Health Care Services (DHCS) for programs for youth designed to educate about and to prevent substance abuse disorders and to prevent harm from substance use. Requires the DHCS to enter into interagency agreements with the State Department of Public Health and the California Department of Education to implement and administer these programs. Specifies that these programs may include, but are not limited to, the following:

i. Prevention and early intervention services to recognize and reduce risks associated with substance use and the early signs of problematic use and of substance abuse disorders.

ii. Grants to schools for student assistance programs designed to prevent and reduce substance abuse, and improve school retention and performance, by supporting students who are at risk of dropping out of school and promoting alternatives to suspension or expulsion.

iii. Grants to programs for outreach, education, and treatment for homeless youth and out-of-school youth with substance use disorders.

iv. Access and linkage to care provided by county behavioral health programs for youth who have, or are at risk of developing, a substance use disorder.

v. Youth-focused substance use disorder treatment programs, which utilize a two-generation approach with the capacity to treat youth and adults together.

vi. Programs to assist individuals, as well as families and friends, to reduce the stigma associated with substance use including seeking substance use disorder services. (RTC § 34019)

g) Specifies that the funds identified in (f) above may also be utilized for workforce training and wage structures to increase the hiring pool of behavioral health staff with substance use disorder prevention and treatment expertise, and for construction of community-based youth treatment facilities.

h) Specifies that the DHCS may contract with each county behavioral health program for the provision of services and that the funds identified in (f) above will be allocated to counties based on demonstrated need, including the number of youth in the county, and the prevalence of substance use disorders among adults.

ANALYSIS

This bill: (1) encourages ASES programs, 21st CCLC programs, and the 21st Century High School ASSETs programs to establish programs that are designed to educate about and prevent substance use disorders or to prevent harm from substance abuse; (2) requires the DHCS to enter into interagency agreements with the California Department of Education to administer those programs and allocate their funding; and (3) specifically authorizes DHCS to consider selecting those programs for funding from the Control, Regulate and Tax Adult Use of Marijuana Act. Specifically, this bill:

1) Expressly adds youth development activities that promote healthy choices and behaviors in order to prevent and reduce substance use and improve school retention and performance to list of activities authorized as part of the enrichment element of an ASSETs program.

2) Encourages schools to establish a 21st Century High School After School Safety and Enrichment for Teens (ASSETs) programs, After School Education and Safety (ASES) programs, and 21st Century Community Learning Centers (21st CCLC) programs, with an effective evidence-based, or evidence-informed educational enrichment element that is designed to educate about and prevent substance use disorders or to prevent harm from substance abuse through a broad array of academic and enrichment activities, including activities to prevent and reduce substance use, and improve school retention and performance.

3) Requires the DHCS to enter into interagency agreements with CDE to implement and administer such ASSETs, ASES, and 21^st CCLC programs and to allocate to schools from the Youth Education, Prevention, Early Intervention and Treatment Account (YEPEITA) established pursuant to the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) in accordance with conditions and requirements as may be established by DHCS.

4) Requires such an ASSETs, ASES, or 21^st CCLC program to annually provide to the CDE, at a date determined by CDE, information indicating the specific outcomes being addressed by that program and any changes in measurable outcomes identified as goals of that program including, but not limited to, reductions in dropout rates, reductions in substance abuse disorders, decreased rates of school suspensions and expulsions, or increased graduation rates, over the span of the funding.

5) Requires the CDE, for these ASSETS, ASES, and 21^st CCLC programs, on or before January 1, 2021, and at least annually thereafter, to provide to the Legislature, and shall make available publicly on the CDEs internet website, a report detailing both of the following:

a) Budget information, including funding allocated to each agency and specific outcomes addressed.

b) Data measuring outcomes, and year-over-year trend data that demonstrate the progress that has been attained in meeting target levels for each outcome.

6) Authorizes the DHCS, in determining which programs to fund for youth that are designed to educate about and to prevent substance use disorders and to prevent harm from substance use, to consider selecting the ASES, ASSETS, and 21st CCLC programs identified above.

7) States Legislative findings and declarations relating to ASES, ASSETs, and 21st CCLC programs and the AUMA, including the following:

a) Because the ASES Program, the 21st CCLC program, and the 21st Century High School ASSESTs program augment the regular schoolday and keep youth supervised during a time when they are at risk of substance abuse, these programs are uniquely positioned to provide alternatives to substance abuse and provide education and assistance to pupils about substance abuse, how it can affect their academic performance, and how to avoid substance abuse.

b) In approving Proposition 64 at the November 8, 2016, statewide general election, the voters of California identified substance abuse pupil assistance programs in schools as a high priority for the allocation of tax revenue from the sale and cultivation of cannabis and cannabis products.

c) The ASES Program, the 21st Century Community Learning Centers (21st CCLC) Program, and the ASSETs Program represent ideal conduits for Proposition 64 tax revenues to realize the goals of preventing and reducing substance abuse among pupils and improving school retention and performance.

8) States Legislative findings and declarations that its provisions the purposes of the After School Education and Safety Program Act of 2002.

STAFF COMMENTS

1. Need for the bill. According to the author, “In November of 2016, the voters passed Prop 64—the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) of 2016—which legalizes, regulates, and taxes the adult use of cannabis. The initiative is expected to generate up to $1 billion annually in tax revenue, with 60% of revenues dedicated to youth education, prevention, and treatment. The Yes on Prop. 64 ballot argument stated that Proposition, “64 pays for itself and raises billions for afterschool programs that help kids stay in school.”

The Prop 64 campaign clearly articulated its intent for after‐school programs to be a prime beneficiary of these new revenues and it is critical that laws and regulations honor this intent. Even though voters were sold and promised that after school programs would receive Prop 64 funds, there are no current assurances, which is why AB 1744 is needed.

Stagnant funding for after school programs threaten quality and access to successful programs that help prevent youth substance abuse and that voters were promised would be funded to ensure student access but the demand for these programs far exceeds funding and these programs are inadequately funded to ensure quality programs which are necessary to prevent substance abuse. Keeping kids supervised and providing youth with positive opportunities and mentoring relationships do and will reduce drug use and ensure better academic success in the classroom.”

2) Proposition 64 (AUMA). AUMA was passed by the voters in November 2016. As a result of the passage of Prop 64, adults, aged 21 years or older, are allowed to possess and use marijuana for recreational purposes. AUMA created two new taxes; a cultivation tax on marijuana plants and flowers and a 15 percent excise tax on the sale of all marijuana and marijuana products. AUMA also exempted from the California state sales tax, sales of medical marijuana or marijuana products. Revenues collected from the new state excise tax and the cultivation tax on growing marijuana will be deposited in a new state account, the California Marijuana Tax Fund (Fund). Certain fines on businesses or individuals who violate regulations created by AUMA would also be deposited into the Fund. Monies in the Fund will first be used to pay back certain state agencies for any marijuana regulatory costs not covered by license fees. A portion of the monies will then be allocated as follows:

a) Sixty percent to youth Education, Prevention, Early Intervention and Treatment Account for youth programs including substance use disorder education, prevention, and treatment.

b) Twenty percent to clean up and prevent environmental damage resulting from the illegal growing of marijuana.

c) Twenty percent for programs designed to reduce driving under the influence of alcohol, marijuana, and other drugs and a grant program designed to reduce any potential negative impacts on public health or safety resulting from the measure.

3) California’s expanded learning programs. The ASES programs are created through partnerships between schools and local community resources to provide literacy, academic enrichment and safe constructive alternatives for students in kindergarten through ninth grade. Funding is designed to: (1) maintain existing before and after school program funding; and (2) provide eligibility to all elementary and middle schools that submit quality applications throughout California. ASES programs must include an enrichment element must offer an array of additional services, programs, and activities that reinforce and complement the school’s academic program. Educational enrichment may include but is not limited to, positive youth development strategies, recreation and prevention activities. Such activities might involve the visual and performing arts, music, physical activity, health/nutrition promotion, and general recreation; career awareness and work preparation activities; community service-learning; and other youth development activities based on student needs and interests. Enrichment activities may be designed to enhance the core curriculum.

21st CCLC programs are state-administered, federally funded program that provides five-year grant is a funding to establish or expand before-and after-school programs that provide disadvantaged kindergarten through twelfth-grade students with academic enrichment opportunities and supportive services to help the students meet state and local standards in core content areas. The purpose of the 21st CCLC programs, as described in federal statute, is to provide opportunities for communities to establish or expand activities that focus on improved academic achievement; enrichment services that reinforce and complement the academic program; and family literacy and related educational development services.

The 21st Century High School After School Safety and Enrichment for Teens program is a federal grant program that provides incentives for establishing before and after school enrichment programs that partner with schools and communities to provide academic support; safe, constructive alternatives for high school students; and assistance in meeting graduation requirements. Programs may operate after school, before school, weekends, summer, intersession, and vacation. Each program must consist of three elements: academic assistance, educational enrichment, and family literacy services.

4) Unmet need for expanded learning opportunities in California. According to a 2016-17 report, “State of the State of Expanded Learning in California” by the California After School Network, California has the largest expanded learning infrastructure in the nation. These programs support after school, summer, inter-session and before school programs at over 4,500 sites serving nearly 860,000 children annually with a daily capacity of 485,000. However, as noted by the author, “Over 2,900 low income schools, including over 1,000 elementary and middle schools, do not benefit from a state ASES or federally funded 21st CCLC after school program. In addition, more than a quarter (29 percent) of the state’s over 1.3 million English Learners attend schools that do not benefit from an ASES or 21st CCLC after school program. The most recent cohorts of ASES and 21st CCLC (including ASSETs – high school programs) funding illustrate a significant unmet need for Expanded Learning in California. In the most recent cohorts of ASES and 21st CCLC funding applicants requested over $143 million more funding than was available, leaving hundreds of thousands of students without the benefit of a quality expanded learning program.”

5) Related and previous legislation. AB 1098 (O’Donnell &Wood, 2019) establishes procedures for the implementation, evaluation and oversight of programs funded by Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) through the YEPEITA. AB 1098 is scheduled to be heard in the Senate Health Committee on June 26, 2019.

AB 258 (Jones-Sawyer, 2019) establishes the School-Based Pupil Support Services Program and appropriates funds from the YEPEITA to increase in-school support services to pupils. AB 258 is scheduled to be heard in this committee on July 3, 2019.

AB 1725 (Carrillo, 2019) requires funding for ASES programs to be increased to reflect increases in the minimum wage and the Consumer Price Index, subject to an appropriation, beginning in the 2019-20 fiscal year, and specifies conditions for ongoing increases. AB 1725 is pending in this committee.

AB 1744 (McCarty, 2018) was substantially similar to this bill and would have authorized DHCS to consider after school programs in allocating funds generated from an excise tax on the retail sale of cannabis for youth education, prevention and treatment efforts. This bill was held in the Senate Appropriations Committee.

AB 2328 (Nazarian, 2018) would have enacted the Youth Substance Use Disorder Treatment and Recovery Program Act of 2018 with funding to be provided by the YEPEITA. AB 2328 died in the Assembly Appropriations Committee.

AB 2471 (Thurmond, 2018) would have required the transfer of funds from the YEPEITA. established through the passage of the Control, Regulate and Tax Adult Use of Marijuana Act to the CDE to establish a grant program which would allow schools to provide in-school support services to pupils. AB 2471 died in the Assembly Appropriations Committee.

SUPPORT

California Alliance of Boys & Girls Clubs

California Council of Community Behavioral Health Agencies
California Federation of Teachers
California State Alliance of YMCAs
Los Angeles Unified School District
Oakland Unified School District

OPPOSITION

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1085

Author:(McCarty)

As Amended Ver:April 2, 2019

Majority vote

SUMMARY:

Encourages specified afterschool programs to establish programs designed to educate about and prevent substance use disorders or to prevent harm from substance abuse. Also authorizes the Department of Health Care Services (DHCS) to consider selecting those programs for funding from the Youth Education, Prevention, Early Intervention, and Treatment Account (YEPEIT), established by the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA).

Major Provisions

1. Authorize DHCS, in determining which programs to fund through the YEPEIT, to consider selecting After School Education and Safety Programs (ASES), 21st Century Community Learning Centers (21st CCLC), and the 21st Century ASSETs programs (ASSETs), that meet the requirements specified by the YEPEIT. Adds expanded learning programs as a component of student assistance programs funded through grants received from the YEPEIT.
2. Require the DHCS to enter into interagency agreements with the California Department of Education (CDE) to implement and administer programs under ASES, 21st CCLC, and ASSETs, and to allocate funds to schools from the YEPEIT. States that the Legislature encourages schools to establish programs pursuant to ASES, 21st CCLC, and ASSETs to educate about and prevent substance use disorders (SUDs), as specified.
3. Requires the programs to include in the enrichment element, effective evidence-based or evidence-informed youth development activities that promote healthy choices and behaviors in order to prevent and reduce substance use and improve school retention and performance.
4. Requires the programs funded to annually report specified information to the CDE indicating specific outcomes being addressed and any changes in measureable outcomes identified, including reductions in dropout rates, reductions in substance abuse disorders, decreased rates of school suspensions and expulsions, or increased graduation rates.
5. Requires the CDE to report to the Legislature annually, beginning on January 1, 2021, on program expenditures and relevant outcome measures.

COMMENTS:

Research suggests that regular attendance in expanded learning programs increases student achievement, attendance, and positive behaviors as well as closing of achievement gaps. A review of 68 studies on after school participation across the country found that high quality programs are associated with significant increases in academic performance, school attendance, as well as positive social behaviors and significant reductions in conduct problems and drug use. A 2012 study by The National Youth Violence Prevention Resource Center found that children who do not spend any time in afterschool activities are 49% more likely to have used drugs.

According to the Author:

"AB 1085 will uphold a campaign promise made by the proponents of Prop. 64 by allowing the DHCS to consider crucial afterschool programs for funding from regulated cannabis sales taxes. Afterschool programs provide a safe space for enrichment and growth for all students, particularly low-income students of color. Many ASES programs offer skills-based learning that focus on [science, technology, engineering, math], arts, and physical activity."

Arguments in Support:

The California Afterschool Advocacy Alliance states, "AB 1085 expressly includes afterschool programs as a permissible use of the Youth Education, Prevention, Early Intervention and Treatment Account established under Prop. 64 in order to help ensure afterschool funding is prioritized to prevent and reduce youth substance use and improve school retention and performance. AB 1085 does not require any funding from the General Fund.

Research shows that youth drug use increases in the afterschool hours and that quality afterschool programs prevent and reduce drug use, juvenile crime, and school dropout. Afterschool programs provide supervised alternative activities, safe spaces, positive adult relationships, and provide essential academic support and enrichment opportunities to help students succeed in school and prepare for the jobs of tomorrow.

California's publicly funded afterschool system serves nearly 500,000 students in over 4,500 schools daily. These programs provide vital services in high poverty communities throughout California – over 84% of students enrolled in these programs are socio-economically disadvantaged."

Arguments in Opposition:

None

FISCAL COMMENTS:

According to the Assembly Appropriations Committee: potentially significant cost pressures on funds generated from an excise tax on the retail sale of cannabis; and ongoing General Fund costs to CDE, potentially in the mid hundreds of thousands of dollars, to administer new programs and annually report information to the Legislature and on its website.

VOTES:

ASM EDUCATION: 6-0-0

YES: O'Donnell, Kiley, Kalra, McCarty, Smith, Weber

ASM HEALTH: 15-0-0

YES: Wood, Mayes, Aguiar-Curry, Bigelow, Bonta, Burke, Wicks, Flora, Limón, McCarty, Nazarian, Ramos, Rodriguez, Santiago, Waldron

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

UPDATED:

VERSION: April 2, 2019

CONSULTANT: Debbie Look / ED. / (916) 319-2087 FN: 0000696

Date of Hearing: April 24, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 1085

Author:(McCarty) – As Amended Ver:April 2, 2019

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

SUMMARY:

This bill specifically authorizes California Department of Health Care Services (DHCS) to consider afterschool programs in allocating funds generated from an excise tax on the retail sale of cannabis (a tax otherwise known as Proposition 64) for youth education, prevention and treatment efforts. The bill also encourages schools offering specified after-school programs to apply for these funds. In addition, it requires the programs to annually provide the California Department of Education (CDE) information related to the programs and the CDE to annually provide specified budget and data information to the Legislature and on its website, beginning January 1, 2021.

FISCAL EFFECT:

1. Potentially significant cost pressures on funds generated from an excise tax on the retail sale of cannabis. While this bill does not change the total amount of revenue generated by the tax, it likely would change the distribution of tax revenues, to the extent after school programs would be more likely to receive funding than they are under current law.
2. Ongoing General Fund costs to CDE, potentially in the mid hundreds of thousands of dollars, to administer new programs and annually report information to the Legislature and on its website. The amount would depend on the interagency agreement with DHCS, what role CDE would have in administering the programs, how grants would be awarded and the total amount of grants funds available through the excise tax on the retail sale of cannabis. Current law allows departments to use up to 4% of the moneys allocated to youth education, prevention and treatment efforts for administrative costs related to implementation, evaluation, and oversight of programs.

COMMENTS:

1. Purpose. According to the author, “AB 1085 will uphold a campaign promise made by the proponents of Proposition 64 by allowing the DHCS to consider crucial afterschool programs for funding from regulated cannabis sales taxes.”

1. Proposition 64. Proposition 64—also known as the Control, Regulate and Tax Adult Use of Marijuana Act—was passed by voters in November 2016. It taxes the cultivation and consumption of cannabis. Tax revenue, as well as certain fine revenue, is to be deposited in a special fund. Sixty percent of the funds are to be allocated to the Youth Education, Prevention, Early Intervention and Treatment Account (Youth Account) for distribution by DHCS for youth programs, which include information about substance use disorder, prevention and treatment.

The amount of revenue to be generated by Proposition 64 is highly uncertain, and estimates are continually updated as more information about tax collections becomes available. However, the Legislative Analyst’s Office recently indicated the Youth Account could generate between $30 and $60 million for use in the 2019-20 budget year.

1. Afterschool Programs. The state and federal government offers three primary afterschool programs: After School Education and Safety Programs (ASES), 21st Century Community Learning Centers (CLC), and 21st Century High School After School Safety and Enrichment for Teens Programs (ASSETs).

In the 2016-17 school year, approximately $541 million in state ASES grants were allocated to 4,200 elementary and middle school sites. In addition, approximately $130 million in federal CLC and ASSETS grants were provided to 745 school sites. Some sites receive both state and federal funding.

1. Prior and Related Legislation. AB 1098 (O’Donnell & Wood), of this legislative session, provides a framework for accountability and legislative oversight of funds allocated to the Youth Account created by the legalization of recreational cannabis in California. The bill is pending before the Assembly Education Committee.

AB 258 (Jones-Sawyer), of this legislative session, establishes the School-Based Pupil Support Services Program to increase in-school support services to pupils and appropriates funding from the Youth Account to the DHCS for these purposes. The bill is pending before the Assembly Education Committee.

AB 1725 (Carrillo), of this legislative session, appropriates an additional $112 million in the 2019-20 fiscal year for ASES, and thereafter continuously appropriates an amount necessary to fund an increase in the daily per-pupil rate equal to the higher of either 50% of increases to the minimum wage or the percentage increase to the California Consumer Price Index. The bill is pending before the Assembly Education Committee.

AB 1744 (McCarty), of the 2016-17 legislative session, was very similar to this bill and would have authorized DHCS to consider after school programs in allocating funds generated from an excise tax on the retail sale of cannabis for youth education, prevention and treatment efforts. The bill was held in the Senate Appropriations Committee.

Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081

Date of Hearing: April 9, 2019

ASSEMBLY COMMITTEE ON HEALTH

Jim Wood, Chair

ABPCA Bill Id:AB 1085

Author:(McCarty) – As Introduced Ver:February 21, 2019

SUBJECT: After school programs: substance use prevention: funding: cannabis revenue.

SUMMARY: Encourages specified after school programs to establish programs that are designed to educate about and prevent substance use disorders (SUDs) or to prevent harm from substance abuse. Authorizes the Department of Health Care Services (DHCS) to consider selecting those programs for funding from the Youth Education, Prevention, Early Intervention, and Treatment Account (YEPEITA), established by Proposition (Prop) 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA). Specifically, this bill:

1. Authorizes DHCS, in determining which programs to fund through the YEPEITA, to consider selecting, among other programs, programs established pursuant to After School Education and Safety Program (ASES), 21^st Century Community Learning Centers (21st CCLC), and the 21st Century High School After School Safety and Enrichment for Teens program (ASSETs), that meet the requirements specified by the YEPEITA and as determined by DHCS. Adds expanded learning programs as a component of student assistance programs funded through grants received from the YEPEITA in existing law.
2. Requires DHCS to enter into interagency agreements with the California Department of Education (CDE), pursuant to AUMA, to implement and administer programs under ASES, 21st CCLC, and ASSETs, and to allocate funds to schools from the YEPEITA in accordance with conditions and requirements as may be established by DHCS. States that the Legislature encourages schools to establish programs pursuant to ASES, 21st CCLC, and ASSETs to educate about and prevent SUDs, as specified.
3. Requires the ASES and ASSETs programs to include in the enrichment element components, required in existing law, and youth development activities that promote healthy choices and behaviors in order to prevent and reduce substance use and improve school retention and performance.
4. Requires that programs funded under this bill be effective and evidence-based or evidence-informed.
5. Requires programs funded under this bill to annually provide to the CDE, at a date determined by the CDE, information indicating the specific outcomes being addressed by that program and any changes in measurable outcomes identified as goals of that program including, but not limited to: reductions in dropout rates; reductions in substance abuse disorders, decreased rates of school suspensions and expulsions; or, increased graduation rates, over the span of the funding.
6. Requires CDE on or before January 1, 2021, and at least annually thereafter to provide to the Legislature, and will make available publicly on its website, a report detailing both of the following:
   1. Budget information, including funding allocated to each agency and specific outcomes addressed; and,
   2. Data measuring outcomes, and year-over-year trend data that demonstrate the progress that has been attained in meeting target levels for each outcome.
7. Finds and declarations related to dynamics that exposure to substance abuse interferes with a pupil’s ability to achieve academically; after school programs reduce substance abuse; and, the high priority identified by voters in passing AUMA for substance abuse pupil assistance programs funded by tax revenue from the sale and cultivation of cannabis and cannabis products.
8. Makes other technical and non-substantive changes.

EXISTING LAW:

1. Establishes the ASES program to create incentives for establishing locally driven before and after school enrichment programs both during schooldays and summer, intersession, or vacation days that partner public schools and communities to provide academic and literacy support and safe, constructive alternatives for youth. Requires the program to include an educational enrichment element that may include such services as fine arts, career technical education, recreation, physical fitness, and prevention activities.
2. Establishes the 21st CCLC program contained within the federal No Child Left Behind Act of 2001 (Public Law 107-110) to provide year-round opportunities for expanded learning and to support local flexibility needed to implement federal 21st CCLC programs through after school grants, as specified.
3. Establishes the ASSETs program to create incentives for establishing locally driven after school enrichment programs that partner school and communities to provide academic support and safe, constructive alternatives for high school pupils in the hours after the regular schooldays, and that support college and career readiness. Requires a high school after-school program to include an enrichment element that may include services such as community service, career and technical education, arts, computer and technology training, physical fitness, and recreation activities.
4. Creates the YEPEITA under AUMA, to be administered by DHCS, for programs for youth that are designed to educate about and to prevent substance use disorders and to prevent harm from substance abuse.

FISCAL EFFECT: This bill has not yet been analyzed by a fiscal committee.

COMMENTS:

1. PURPOSE OF THIS BILL. According to the author this bill will ensure that after school programs are eligible to receive Prop 64 cannabis tax funding and uphold a campaign promise made by the proponents of Prop 64 by allowing DHCS to consider crucial afterschool programs for funding from regulated cannabis sales taxes. Afterschool programs provide a safe space for enrichment and growth for all students. ASES programs are proven to keep kids out of trouble, including away from drugs and alcohol. These programs may also offer nutritious snacks, which can be extremely beneficial for low-income students. By keeping schools open for a few more hours, students can thrive and learn through fun academic and physical activities that can promote good habits in the long-term.
2. BACKGROUND.
   1. ASES. The ASES Program funds the establishment of local after school education and enrichment programs. These programs are created through partnerships between schools and local community resources to provide literacy, academic enrichment and safe constructive alternatives for students in kindergarten through ninth grade (K-9). Funding is designed to: i) maintain existing before and after school program funding; and, ii) provide eligibility to all elementary and middle schools that submit quality applications throughout California. The current funding level for the ASES program is $550 million. ASES funds the establishment of local after school education and enrichment programs created through partnerships between school and local community resources to provide literacy, academic enrichment, and safe constructive alternatives for students in K-9. ASES provides an opportunity to merge school reform strategies with community resources, and involves collaboration among parents, youth, representatives from schools and governmental agencies, such as local law enforcement and local parks and recreation departments, and individuals from community-based organizations and the private sector. ASES is required to be aligned with, and not be a repeat of, the content of regular school day and other extended learning opportunities. Programs participating in ASES are required to submit annual student outcome data to CDE from local program evaluations. Data must include research-based indicators and measurable student outcomes for academic performance, attendance, and positive behavioral change. CDE considers the results of these evaluations when determining eligibility for three-year grant renewal. 
   2. 21st CCLC/ASSETs. According to CDE, 21st CCLC/ASSETs is a state-administered, federally funded program that provides five-year grant funding to establish or expand before and after school programs that provide disadvantaged kindergarten through twelfth-grade students (particularly students who attend schools in need of improvement) with academic enrichment opportunities and supportive services to help the students meet state and local standards in core content areas. 21st CCLC/ASSETs establishes or expands activities that focus on improved academic achievement, enrichment services that reinforce and complement the academic program, and family literacy and related educational development services. Entities eligible to apply for funding include local educational agencies, cities, counties, community-based agencies, other public or private entities, or a consortium of two or more agencies, organizations, or entities. Programs are required to plan services through a collaborative process that includes parents, youth, and representatives of participating schools or local educational agencies, governmental agencies community organizations, and the private sector.
   3. Expanded learning opportunities in California. According to a 2016-17 report, “State of the State of Expanded Learning in California” by the California After School Network, California has the largest expanded learning infrastructure in the nation. These programs support after school, summer, intersession and before school programs at over 4,500 sites serving nearly 860,000 children annually with a daily capacity of 485,000. These programs offer a range of supports and resources for underserved communities, which include year-round learning opportunities, STEM learning, nutrition education, increased physical activity, and social and emotional learning.

Over 2,900 low income schools, including over 1,000 elementary and middle schools, do not currently benefit from a state ASES or federally funded 21st CCLC after school program. In addition, more than a quarter of the state’s English Learners attend schools that do not benefit from an ASES or 21st CCLC after school program.

This report also notes that California’s expanded learning system is at risk as a result of stagnant funding and increased operating costs due to rising costs of living and the increased state minimum wage. The federal CCLC program is limited to $7.50 per student per day, while the ASES grant was increased to $8.19 per student per day in 2017.

In 2016-17 approximately $541 million in state ASES grants were allocated to 4,200 elementary and middle school sites and approximately $130 million in federal 21^st Century CCLC grants, including ASSETS grants, were provided to 745 school sites, including 288 high schools. Some programs receive both state and federal funding. Many more applicants requested funding than could be filled with the available funds.

• 1. High-Quality Afterschool Programs. Afterschool programs, or out-of-school time programs, became prominent in the late 1990’s. The CCLC is an example of one such program. Created by the federal 1994 Improving America’s Schools Act, the program received limited funding until Congress appropriated $40 million for it in 1998. When the program pivoted to support afterschool programs, spending exploded and by 2002, the program’s appropriation was $1 billion. The 2016 federal budget request for CCLC was $1.16 billion. An evaluation of after-school programs similar to those provided through CCLC was conducted by the University of California Irvine, the University of Wisconsin Madison, and Policy Studies Associates. Entitled “Outcomes Linked to High-Quality Afterschool Programs: Longitudinal Findings from the Study of Promising Afterschool Programs,” the study found that regular participation in high-quality afterschool programs is linked to significant gains in standardized test scores and student work habits as well as reductions in behavior problems among disadvantaged students. These gains help offset the negative impact of a lack of supervision after school. The two-year study followed almost 3,000 low-income, ethnically diverse elementary and middle school students from eight states in six major metropolitan centers and six smaller urban and rural locations. California was included in the study with five separate sites.
  2. Prop 64 (AUMA). In November 2016, voters passed AUMA, which, among other provisions, allocates 60% of taxes on marijuana, by July 15 of each fiscal year beginning in 2018-19, to the YEPEITA to be administered by DHCS for programs for youth that are designed to educate about and to prevent substance use disorders and to prevent harm from substance abuse. AUMA requires DHCS to enter into interagency agreements with the Department of Public Health (DPH) and CDE to implement and administer programs that emphasize accurate education, effective prevention, early intervention, school retention, and timely treatment services for youth and their families and caregivers. Programs are permitted to include components such as:

1. Prevention and early intervention services to recognize and reduce risk factors related to substance use and the early signs of problematic use and of SUDs;
2. Grants to schools to develop and support student assistance programs to prevent and reduce substance use, improve school retention and performance, support students who are at risk of dropping out of school, and promote alternatives to suspension and expulsion;
3. Grants to programs for outreach, education, and treatment for homeless youth and out-of-school youth with substance use disorders;
4. Access and linkage to care provided by county behavioral health programs for youth and their families and caregivers who have SUDs or are at risk of developing an SUD; and,
5. Youth-focused SUD programs that are culturally and gender competent, trauma-informed, evidence-based, and provide a continuum of care, as specified.

AUMA contains a provision that prohibits the Legislature, prior to July 1, 2028, from changing the allocation to DHCS from the YEPEITA from its stated purposes. 

• 1. Informational Joint Hearing. The Senate Health and Education Committees held a joint hearing on February 13, 2019 entitled “Implementing the Control, Regulate and Tax Adult Use of Marijuana Act’s (AUMA), Youth Education, Prevention, Early Intervention and Treatment Account (YEPEITA).” During the hearing the Legislative Analyst’s Office (LAO) provided an overview of AUMA as it relates to the YEPEITA and the potential role of the Legislature in the implementation of YEPEITA. The LAO report stated that AUMA is silent on many issues including:
     1. Specificity of outcomes to be achieved from the YEPEITA;
     2. Specificity of funding priorities among a long list permissive activities and programs;
     3. How program spending is to be evaluated and how lessons learned from evaluations could be applied;
     4. Processes to ensure effective oversight of account spending and program implementation;
     5. How the three implementing departments (DHCS, CDE, and DPH) are to work together;
     6. Definition of “youth”;
     7. Specificity on the universe of entities eligible to receive grant funding; and,
     8. Specificity on the amount that can be spent on state-level programmatic (as opposed to administrative) activities.

LAO stated that the legislature should be guided by lessons learned from the implementation of the Prop 63 (2004), the MHSA, which lacked specificity and direction for major areas of implementation including: development of a robust data collection and evaluation framework, establishment of a set selection of outcomes, protocols for the management of unspent funds and establishment of appropriate reserve levels, determination of the relative importance of prevention/early intervention vs. treatment, and addressing the workforce capacity issue. These lessons from Prop 63 create an opportunity for the Legislature to provide direction and state its preferences related to YEPEITA spending. The LAO also stated the Legislature should consider codifying its preferences in statute, while maintaining flexibility to support iterative decision-making. Finally, the LAO concluded the Legislature should consider providing direction with the goal of facilitating good decision-making by the three implementing departments.

1. DOUBLE REFERRAL. This bill has been double referred. It passed the Assembly Committee on Education with a vote of 6-0.
2. SUPPORT. The California Afterschool Advocacy Alliance, sponsor of this bill states in support that California’s publicly funded afterschool system serves nearly 500,000 students in over 4,500 schools daily. These programs provide vital services in high-poverty communities throughout California – over 84% of students enrolled in these programs are socio-economically disadvantaged. However afterschool programs cannot meet the current and growing demands for these programs under the dual threat of dramatically under-resourced state-funding programs and President Trumps proposed elimination of all federally funded programs. This bill expressly includes afterschool programs as a permissible use of the YEPEITA under Prop 64 in order to help ensure afterschool funding is prioritized to prevent and reduce youth substance use and improve retention and performance.
3. RELATED LEGISLATION.
   1. AB 1098 (O’Donnell &Wood) establishes procedures for the implementation and administration of programs funded by the YEPEITA, including the identification of targeted outcomes with unspecified metrics, the establishment of a technical advisory committee, required information to be provided by applicants for program funding, and progress reports to the Legislature. Require that an unspecified portion of funds be used to test innovative practices through pilot programs. Establishes limitations on expenditures of funds at the state level and requires the development of a statewide workforce plan. AB 1098 is pending in the Assembly Health Committee
   2. AB 258 (Jones-Sawyer) establishes the School-Based Pupil Support Services Program to increase in-school support services to pupils in order to break down barriers to academic success. AB 258 appropriates funding from the YEPEITA to the DHCS, for purposes of awarding grants. AB 258 is pending in the Assembly Health Committee.
   3. AB 1725 (Carrillo) appropriate an additional $112 million in the 2019–20 fiscal year, for the After School Education and Safety Program, and would continuously appropriate an amount necessary to fund an increase in the daily per-pupil rate equal to the higher of either 50% of increases to the minimum wage or the percentage increase to the California Consumer Price Index. AB 1725 is pending in the Assembly Education Committee.
4. PREVIOUS LEGISLATION.
   1. AB 2328 (Nazarian) of 2018 would have enacted the Youth Substance Use Disorder Treatment and Recovery Program Act of 2018 with funding to be provided in part by YEPEITA. AB 2328 was held in the Assembly Appropriations Committee.
   2. AB 2471 (Thurmond) of 2018 would have required the transfer of funds from the YEPEITA to CDE to establish a grant program that would allow schools to provide in-school support services to pupils. AB 2471 was held in the Assembly Appropriations Committee.
   3. SB 191 (Beall) of 2017 would have permitted a county or a qualified provider, as specified, and a local educational agency to enter into a partnership to create a program that targets pupils with mental health and SUDs; and stated legislative intent that funds from the YEPEITA be allocated for these purposes. SB 191 was held in the Senate Appropriations Committee.
   4. AB 1135 (Wood) of 2017 would have required DPH and CDE to establish an inclusive public stakeholder process to seek input from stakeholders to determine a disbursement formula for the funds provided to DHCS from the AUMA Fund. AB 1135 was held in the Assembly Appropriations Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

A World Fit for Kids
ARC
Berkeley PTA
Boys & Girls Clubs of Carson
California Afterschool Network
California Alliance of Boys & Girls Clubs Inc.
California State Alliance of YMCAs
California State PTA

Citizen Schools
Educare Foundation
Escuela Popular
Fight Crime: Invest In Kids
Give Every Child a Chance
Glendale Unified School District
LA’s Best After School Enrichment Program
Los Angeles Unified School District
Moreno Valley; City Of
Newport Mesa (USD) Project Kidz Connect
North Monterey County Unified School District
Partnership for Children & Youth
Pasadena Learns After School Program
Sacramento Chinese Community Service Center
Sierra Sands Unified School District
Student Success Institute, Inc.
Super Stars Literacy
The Children's Initiative
Think Together
Woodcraft Rangers
Youth Alliance

Opposition

None on file.

Analysis Prepared by: Judith Babcock / HEALTH / (916) 319-2097

Date of Hearing: April 2, 2019

ASSEMBLY COMMITTEE ON HEALTH

Jim Wood, Chair

ABPCA Bill Id:AB 1085

Author:(McCarty) – As Introduced Ver:February 21, 2019

SUBJECT: After school programs: substance use prevention: funding: cannabis revenue.

SUMMARY: Encourages specified after school programs to establish programs that are designed to educate about and prevent substance use disorders (SUDs) or to prevent harm from substance abuse. Authorizes the Department of Health Care Services (DHCS) to consider selecting those programs for funding from the Youth Education, Prevention, Early Intervention, and Treatment Account (YEPEITA), established by Proposition (Prop) 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA). Specifically, this bill:

1. Authorizes DHCS, in determining which programs to fund through the YEPEITA, to consider selecting, among other programs, programs established pursuant to After School Education and Safety Program (ASES), 21^st Century Community Learning Centers (21st CCLC), and the 21st Century High School After School Safety and Enrichment for Teens program (ASSETs), that meet the requirements specified by the YEPEITA and as determined by DHCS. Adds expanded learning programs as a component of student assistance programs funded through grants received from the YEPEITA in existing law.
2. Requires DHCS to enter into interagency agreements with the California Department of Education (CDE), pursuant to AUMA, to implement and administer programs under ASES, 21st CCLC, and ASSETs, and to allocate funds to schools from the YEPEITA in accordance with conditions and requirements as may be established by DHCS. States that the Legislature encourages schools to establish programs pursuant to ASES, 21st CCLC, and ASSETs to educate about and prevent SUDs, as specified.
3. Requires the ASES and ASSETs programs to include in the enrichment element components, required in existing law, and youth development activities that promote healthy choices and behaviors in order to prevent and reduce substance use and improve school retention and performance.
4. Requires that programs funded under this bill be effective and evidence-based or evidence-informed.
5. Requires CDE, in cooperation with DHCS, to identify measureable goals to be achieved by programs funded, including, but not limited to, reductions in substance abuse disorders among youth, and improvements in measureable school outcomes, such as increased graduation rates, decreased rates of suspensions and expulsions, and increased school retention.
6. Requires each program recipient to report to CDE annually on expenditures and outcomes for each relevant targeted goal, and for CDE to report to the Legislature on the allocation of funds, goal areas targeted, and outcomes reported.
7. Finds and declarations related to dynamics that exposure to substance abuse interferes with a pupil’s ability to achieve academically; after school programs reduce substance abuse; and, the high priority identified by voters in passing AUMA for substance abuse pupil assistance programs funded by tax revenue from the sale and cultivation of cannabis and cannabis products.
8. Makes other technical and non-substantive changes.

EXISTING LAW:

1. Establishes the ASES program to create incentives for establishing locally driven before and after school enrichment programs both during schooldays and summer, intersession, or vacation days that partner public schools and communities to provide academic and literacy support and safe, constructive alternatives for youth. Requires the program to include an educational enrichment element that may include such services as fine arts, career technical education, recreation, physical fitness, and prevention activities.
2. Establishes the 21st CCLC program contained within the federal No Child Left Behind Act of 2001 (Public Law 107-110) to provide year-round opportunities for expanded learning and to support local flexibility needed to implement federal 21st CCLC programs through after school grants, as specified.
3. Establishes the ASSETs program to create incentives for establishing locally driven after school enrichment programs that partner school and communities to provide academic support and safe, constructive alternatives for high school pupils in the hours after the regular schooldays, and that support college and career readiness. Requires a high school after-school program to include an enrichment element that may include services such as community service, career and technical education, arts, computer and technology training, physical fitness, and recreation activities.
4. Creates the YEPEITA under AUMA, to be administered by DHCS, for programs for youth that are designed to educate about and to prevent substance use disorders and to prevent harm from substance abuse.

FISCAL EFFECT: This bill has not yet been analyzed by a fiscal committee.

COMMENTS:

1. PURPOSE OF THIS BILL. According to the author this bill will ensure that after school programs are eligible to receive Prop 64 cannabis tax funding and uphold a campaign promise made by the proponents of Prop 64 by allowing DHCS to consider crucial afterschool programs for funding from regulated cannabis sales taxes. Afterschool programs provide a safe space for enrichment and growth for all students. ASES programs are proven to keep kids out of trouble, including away from drugs and alcohol. These programs may also offer nutritious snacks, which can be extremely beneficial for low-income students. By keeping schools open for a few more hours, students can thrive and learn through fun academic and physical activities that can promote good habits in the long-term.
2. BACKGROUND.
   1. ASES. The ASES Program funds the establishment of local after school education and enrichment programs. These programs are created through partnerships between schools and local community resources to provide literacy, academic enrichment and safe constructive alternatives for students in kindergarten through ninth grade (K-9). Funding is designed to: i) maintain existing before and after school program funding; and, ii) provide eligibility to all elementary and middle schools that submit quality applications throughout California. The current funding level for the ASES program is $550 million. ASES funds the establishment of local after school education and enrichment programs created through partnerships between school and local community resources to provide literacy, academic enrichment, and safe constructive alternatives for students in K-9. ASES provides an opportunity to merge school reform strategies with community resources, and involves collaboration among parents, youth, representatives from schools and governmental agencies, such as local law enforcement and local parks and recreation departments, and individuals from community-based organizations and the private sector. ASES is required to be aligned with, and not be a repeat of, the content of regular school day and other extended learning opportunities. Programs participating in ASES are required to submit annual student outcome data to CDE from local program evaluations. Data must include research-based indicators and measurable student outcomes for academic performance, attendance, and positive behavioral change. CDE considers the results of these evaluations when determining eligibility for three-year grant renewal. 
   2. 21st CCLC/ASSETs. According to CDE, 21st CCLC/ASSETs is a state-administered, federally funded program that provides five-year grant funding to establish or expand before and after school programs that provide disadvantaged kindergarten through twelfth-grade students (particularly students who attend schools in need of improvement) with academic enrichment opportunities and supportive services to help the students meet state and local standards in core content areas. 21st CCLC/ASSETs establishes or expands activities that focus on improved academic achievement, enrichment services that reinforce and complement the academic program, and family literacy and related educational development services. Entities eligible to apply for funding include local educational agencies, cities, counties, community-based agencies, other public or private entities, or a consortium of two or more agencies, organizations, or entities. Programs are required to plan services through a collaborative process that includes parents, youth, and representatives of participating schools or local educational agencies, governmental agencies community organizations, and the private sector.
   3. Expanded learning opportunities in California. According to a 2016-17 report, “State of the State of Expanded Learning in California” by the California After School Network, California has the largest expanded learning infrastructure in the nation. These programs support after school, summer, intersession and before school programs at over 4,500 sites serving nearly 860,000 children annually with a daily capacity of 485,000. These programs offer a range of supports and resources for underserved communities, which include year-round learning opportunities, STEM learning, nutrition education, increased physical activity, and social and emotional learning.

Over 2,900 low income schools, including over 1,000 elementary and middle schools, do not currently benefit from a state ASES or federally funded 21st CCLC after school program. In addition, more than a quarter of the state’s English Learners attend schools that do not benefit from an ASES or 21st CCLC after school program.

This report also notes that California’s expanded learning system is at risk as a result of stagnant funding and increased operating costs due to rising costs of living and the increased state minimum wage. The federal CCLC program is limited to $7.50 per student per day, while the ASES grant was increased to $8.19 per student per day in 2017.

In 2016-17 approximately $541 million in state ASES grants were allocated to 4,200 elementary and middle school sites and approximately $130 million in federal 21^st Century CCLC grants, including ASSETS grants, were provided to 745 school sites, including 288 high schools. Some programs receive both state and federal funding. Many more applicants requested funding than could be filled with the available funds.

• 1. High-Quality Afterschool Programs. Afterschool programs, or out-of-school time programs, became prominent in the late 1990’s. The CCLC is an example of one such program. Created by the federal 1994 Improving America’s Schools Act, the program received limited funding until Congress appropriated $40 million for it in 1998. When the program pivoted to support afterschool programs, spending exploded and by 2002, the program’s appropriation was $1 billion. The 2016 federal budget request for CCLC was $1.16 billion. An evaluation of after-school programs similar to those provided through CCLC was conducted by the University of California Irvine, the University of Wisconsin Madison, and Policy Studies Associates. Entitled “Outcomes Linked to High-Quality Afterschool Programs: Longitudinal Findings from the Study of Promising Afterschool Programs,” the study found that regular participation in high-quality afterschool programs is linked to significant gains in standardized test scores and student work habits as well as reductions in behavior problems among disadvantaged students. These gains help offset the negative impact of a lack of supervision after school. The two-year study followed almost 3,000 low-income, ethnically diverse elementary and middle school students from eight states in six major metropolitan centers and six smaller urban and rural locations. California was included in the study with five separate sites.
  2. Prop 64 (AUMA). In November 2016, voters passed AUMA, which, among other provisions, allocates 60% of taxes on marijuana, by July 15 of each fiscal year beginning in 2018-19, to the YEPEITA to be administered by DHCS for programs for youth that are designed to educate about and to prevent substance use disorders and to prevent harm from substance abuse. AUMA requires DHCS to enter into interagency agreements with the Department of Public Health (DPH) and CDE to implement and administer programs that emphasize accurate education, effective prevention, early intervention, school retention, and timely treatment services for youth and their families and caregivers. Programs are permitted to include components such as:

1. Prevention and early intervention services to recognize and reduce risk factors related to substance use and the early signs of problematic use and of SUDs;
2. Grants to schools to develop and support student assistance programs to prevent and reduce substance use, improve school retention and performance, support students who are at risk of dropping out of school, and promote alternatives to suspension and expulsion;
3. Grants to programs for outreach, education, and treatment for homeless youth and out-of-school youth with substance use disorders;
4. Access and linkage to care provided by county behavioral health programs for youth and their families and caregivers who have SUDs or are at risk of developing an SUD; and,
5. Youth-focused SUD programs that are culturally and gender competent, trauma-informed, evidence-based, and provide a continuum of care, as specified.

AUMA contains a provision that prohibits the Legislature, prior to July 1, 2028, from changing the allocation to DHCS from the YEPEITA from its stated purposes. 

• 1. Informational Joint Hearing. The Senate Health and Education Committees held a joint hearing on February 13, 2019 entitled “Implementing the Control, Regulate and Tax Adult Use of Marijuana Act’s (AUMA), Youth Education, Prevention, Early Intervention and Treatment Account (YEPEITA).” During the hearing the Legislative Analyst’s Office (LAO) provided an overview of AUMA as it relates to the YEPEITA and the potential role of the Legislature in the implementation of YEPEITA. The LAO report stated that AUMA is silent on many issues including:
     1. Specificity of outcomes to be achieved from the YEPEITA;
     2. Specificity of funding priorities among a long list permissive activities and programs;
     3. How program spending is to be evaluated and how lessons learned from evaluations could be applied;
     4. Processes to ensure effective oversight of account spending and program implementation;
     5. How the three implementing departments (DHCS, CDE, and DPH) are to work together;
     6. Definition of “youth”;
     7. Specificity on the universe of entities eligible to receive grant funding; and,
     8. Specificity on the amount that can be spent on state-level programmatic (as opposed to administrative) activities.

LAO stated that the legislature should be guided by lessons learned from the implementation of the Prop 63 (2004), the MHSA, which lacked specificity and direction for major areas of implementation including: development of a robust data collection and evaluation framework, establishment of a set selection of outcomes, protocols for the management of unspent funds and establishment of appropriate reserve levels, determination of the relative importance of prevention/early intervention vs. treatment, and addressing the workforce capacity issue. These lessons from Prop 63 create an opportunity for the Legislature to provide direction and state its preferences related to YEPEITA spending. The LAO also stated the Legislature should consider codifying its preferences in statute, while maintaining flexibility to support iterative decision-making. Finally, the LAO concluded the Legislature should consider providing direction with the goal of facilitating good decision-making by the three implementing departments.

1. DOUBLE REFERRAL. This bill has been double referred. It passed the Assembly Committee on Education with a vote of 6-0.
2. SUPPORT. The California Afterschool Advocacy Alliance, sponsor of this bill states in support that California’s publicly funded afterschool system serves nearly 500,000 students in over 4,500 schools daily. These programs provide vital services in high-poverty communities throughout California – over 84% of students enrolled in these programs are socio-economically disadvantaged. However afterschool programs cannot meet the current and growing demands for these programs under the dual threat of dramatically under-resourced state-funding programs and President Trumps proposed elimination of all federally funded programs. This bill expressly includes afterschool programs as a permissible use of the YEPEITA under Prop 64 in order to help ensure afterschool funding is prioritized to prevent and reduce youth substance use and improve retention and performance.
3. RELATED LEGISLATION.
   1. AB 1098 (O’Donnell &Wood) establishes procedures for the implementation and administration of programs funded by the YEPEITA, including the identification of targeted outcomes with unspecified metrics, the establishment of a technical advisory committee, required information to be provided by applicants for program funding, and progress reports to the Legislature. Require that an unspecified portion of funds be used to test innovative practices through pilot programs. Establishes limitations on expenditures of funds at the state level and requires the development of a statewide workforce plan. AB 1098 is pending in the Assembly Health Committee
   2. AB 258 (Jones-Sawyer) establishes the School-Based Pupil Support Services Program to increase in-school support services to pupils in order to break down barriers to academic success. AB 258 appropriates funding from the YEPEITA to the DHCS, for purposes of awarding grants. AB 258 is pending in the Assembly Health Committee.
   3. AB 1725 (Carrillo) appropriate an additional $112 million in the 2019–20 fiscal year, for the After School Education and Safety Program, and would continuously appropriate an amount necessary to fund an increase in the daily per-pupil rate equal to the higher of either 50% of increases to the minimum wage or the percentage increase to the California Consumer Price Index. AB 1725 is pending in the Assembly Education Committee.
4. PREVIOUS LEGISLATION.
   1. AB 2328 (Nazarian) of 2018 would have enacted the Youth Substance Use Disorder Treatment and Recovery Program Act of 2018 with funding to be provided in part by YEPEITA. AB 2328 was held in the Assembly Appropriations Committee.
   2. AB 2471 (Thurmond) of 2018 would have required the transfer of funds from the YEPEITA to CDE to establish a grant program that would allow schools to provide in-school support services to pupils. AB 2471 was held in the Assembly Appropriations Committee.
   3. SB 191 (Beall) of 2017 would have permitted a county or a qualified provider, as specified, and a local educational agency to enter into a partnership to create a program that targets pupils with mental health and SUDs; and stated legislative intent that funds from the YEPEITA be allocated for these purposes. SB 191 was held in the Senate Appropriations Committee.
   4. AB 1135 (Wood) of 2017 would have required DPH and CDE to establish an inclusive public stakeholder process to seek input from stakeholders to determine a disbursement formula for the funds provided to DHCS from the AUMA Fund. AB 1135 was held in the Assembly Appropriations Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

A World Fit for Kids
ARC
Berkeley PTA
Boys & Girls Clubs of Carson
California Afterschool Network
California Alliance of Boys & Girls Clubs Inc.
California State Alliance of YMCAs
California State PTA

Citizen Schools
Educare Foundation
Escuela Popular
Fight Crime: Invest In Kids
Give Every Child a Chance
Glendale Unified School District
LA’s Best After School Enrichment Program
Los Angeles Unified School District
Moreno Valley; City Of
Newport Mesa (USD) Project Kidz Connect
North Monterey County Unified School District
Partnership for Children & Youth
Pasadena Learns After School Program
Sacramento Chinese Community Service Center
Sierra Sands Unified School District
Student Success Institute, Inc.
Super Stars Literacy
The Children's Initiative
Think Together
Woodcraft Rangers
Youth Alliance

Opposition

None on file.

Analysis Prepared by: Judith Babcock / HEALTH / (916) 319-2097

Date of Hearing: March 27, 2019

ASSEMBLY COMMITTEE ON EDUCATION

Patrick O'Donnell, Chair

ABPCA Bill Id:AB 1085 (

Author:McCarty) – As Introduced Ver:February 21, 2019

SUBJECT: After school programs: substance use prevention: funding: cannabis revenue

SUMMARY: Encourages specified after school programs to establish programs that are designed to educate about and prevent substance use disorders or to prevent harm from substance abuse. Also authorizes the Department of Health Care Services (DHCS) to consider selecting those programs for funding from the Youth Education, Prevention, Early Intervention, and Treatment Account (YEPEIT), established by the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA). Specifically, this bill:

1. Authorizes DHCS, in determining which programs to fund through the YEPEIT, to consider selecting, among other programs, programs established pursuant to After School Education and Safety Program (ASES), 21^st Century Community Learning Centers (21st CCLC), and the 21^st Century ASSETs program (ASSETs), that meet the requirements specified by the YEPEIT and as otherwise determined by DHCS. Adds expanded learning programs as a component of student assistance programs funded through grants received from the YEPEIT in existing law.
2. Requires DHCS to enter into interagency agreements with the California Department of Education (CDE), pursuant to AUMA, to implement and administer programs under ASES, 21st CCLC, and ASSETs, and to allocate funds to schools from the YEPEIT in accordance with conditions and requirements as may be established by DHCS. States that the Legislature encourages schools to establish programs pursuant to ASES, 21st CCLC, and ASSETs to educate about and prevent substance use disorders (SUDs), as specified.
3. Requires the ASES and ASSETs programs to include in the enrichment element components, required in existing law, and youth development activities that promote healthy choices and behaviors in order to prevent and reduce substance use and improve school retention and performance.
4. Makes legislative findings and declarations related to dynamics that interfere with a pupil’s ability to achieve academically, which include exposure to substance abuse in the home and the community; the effect of after school programs on reducing substance abuse; and, the high priority identified by voters in passing AUMA for substance abuse pupil assistance programs funded by tax revenue from the sale and cultivation of cannabis and cannabis products.
5. Makes technical, non-substantive changes.

EXISTING LAW:

1. Establishes the ASES program through the 2002 voter approved initiative, Proposition 49. The ASES program funds the establishment of local before and after school education and enrichment programs, which are created through partnerships between schools and local community resources to provide literacy, academic enrichment and safe constructive alternatives for students in kindergarten through ninth grade (EC 8482).
2. Establishes the 21^st CCLC contained within the federal No Child Left Behind Act of 2001 to complement the ASES program. Specifies that the requirements of the ASES program apply to the 21st CCLC program with specified exceptions (EC 8484.7).
3. Establishes the 21^st Century ASSETs Program to create incentives for establishing locally driven after school enrichment programs between schools and local community organizations serving pupils from grades nine through twelve (EC 8421).
4. Establishes, effective January 1, 2018, a cannabis excise tax to be imposed upon purchasers of cannabis or cannabis products sold in the state at the rate of 15 percent of the average market price of any retail sale by a cannabis retailer (Revenue & Taxation Code (RTC) 34011).
5. Establishes the California Cannabis Tax Fund in the State Treasury consisting of all taxes, interest, penalties, and other amounts collected and paid to the board to carry out the purposes of the Control, Regulate and Tax Adult Use of Marijuana Act and all revenues deposited into the Tax Fund, together with interest or dividends earned by the fund, are to be expended only in accordance with the provisions of the Act (RTC 34018).
6. Specifies that the Controller is to disburse funds in the California Cannabis Tax Fund to a number of purposes, including (RTC 34019):
   1. By July 15 of each year, beginning in 2018-19 the Controller will, after disbursing funds for specified purposes, disburse 60 percent of the remaining funds into the YEPEIT to DHCS for programs for youth designed to educate about and to prevent substance abuse disorders and to prevent harm from substance use. Requires the DHCS to enter into interagency agreements with the State Department of Public Health (CDPH) and the CDE to implement and administer these programs. Specifies that these programs may include, but are not limited to, the following:
      1. Prevention and early intervention services to recognize and reduce risks associated with substance use and the early signs of problematic use and of substance abuse disorders.
      2. Grants to schools for student assistance programs designed to prevent and reduce substance abuse, and improve school retention and performance, by supporting students who are at risk of dropping out of school and promoting alternatives to suspension or expulsion.
      3. Grants to programs for outreach, education, and treatment for homeless youth and out-of-school youth with substance use disorders.
      4. Access and linkage to care provided by county behavioral health programs for youth who have, or are at risk of developing, a substance use disorder.
      5. Youth-focused substance use disorder treatment programs, which utilize a two-generation approach with the capacity to treat youth and adults together.
      6. Programs to assist individuals, as well as families and friends, to reduce the stigma associated with substance use including seeking substance use disorder services.
   2. Specifies that the funds identified above may also be utilized for workforce training and wage structures to increase the hiring pool of behavioral health staff with substance use disorder prevention and treatment expertise, and for construction of community-based youth treatment facilities.
   3. Specifies that the DHCS may contract with each county behavioral health program for the provision of services and that the funds identified above will be allocated to counties based on demonstrated need, including the number of youth in the county, and the prevalence of substance use disorders among adults.

FISCAL EFFECT: Unknown

COMMENTS:

Need for the bill. According to the author, “AB 1085 will uphold a campaign promise made by the proponents of Prop. 64 by allowing the DHCS to consider crucial afterschool programs for funding from regulated cannabis sales taxes. Afterschool programs provide a safe space for enrichment and growth for all students, particularly low-income students of color. Many ASES programs offer skills-based learning that focus on STEM, arts, and physical activity.”

Background. The CDE currently administers three expanded learning programs:

1. The After School Education and Safety (ASES) Program is the result of the 2002 voter-approved initiative, Proposition 49. The ASES Program funds the establishment of local after school education and enrichment programs. These programs are created through partnerships between schools and local community resources to provide literacy, academic enrichment and safe constructive alternatives for students in kindergarten through ninth grade. Funding is designed to: (1) maintain existing before and after school program funding; and (2) provide eligibility to all elementary and middle schools that submit quality applications throughout California. The current funding level for the ASES program is $550 million or $8.16 per student per day.

The ASES program involves collaboration among parents, youth, representatives from schools and governmental agencies, such as local law enforcement and local parks and recreation departments, and individuals from community-based organizations and the private sector. Programs are created through partnerships between schools and local community resources to provide literacy, academic enrichment, and safe, constructive alternatives for students in grades K-9.

After school programs must consist of the two elements below and ASES program leaders work closely with school site principals and staff to integrate both elements with the school's curriculum, instruction, and learning support activities.

• An educational and literacy element must provide tutoring and/or homework assistance designed to help students meet state standards in one or more of the following core academic subjects: reading/language arts, mathematics, history and social studies, or science. A broad range of activities may be implemented based on local student needs and interests.
• The educational enrichment element must offer an array of additional services, programs, and activities that reinforce and complement the school’s academic program. Educational enrichment may include but is not limited to, positive youth development strategies, recreation and prevention activities. Such activities might involve the visual and performing arts, music, physical activity, health/nutrition promotion, and general recreation; career awareness and work preparation activities; community service-learning; and other youth development activities based on student needs and interests. Enrichment activities may be designed to enhance the core curriculum.

1. 21^st Century Community Learning Centers (21^st CCLC) This state-administered, federally funded program provides five-year grant funding to establish or expand before-and after-school programs that provide disadvantaged kindergarten through twelfth-grade students with academic enrichment opportunities and supportive services to help the students meet state and local standards in core content areas.

The purpose of the 21st CCLC Program, as described in federal statute, is to provide opportunities for communities to establish or expand activities that focus on improved academic achievement; enrichment services that reinforce and complement the academic program; and family literacy and related educational development services.

1. 21st Century High School After School Safety and Enrichment for Teens Program (ASSETs). The Every Student Succeeds Act (ESSA) was signed into law on December 10, 2015, taking effect in school year 2016–17 and providing funding for the ASSETs program. The ASSETs grant provides incentives for establishing before and after school enrichment programs that partner with schools and communities to provide academic support; safe, constructive alternatives for high school students; and assistance in meeting graduation requirements. Programs may operate after school, before school, weekends, summer, intersession, and vacation. Each program must consist of three elements: academic assistance, educational enrichment, and family literacy services. Any public or private organization is eligible to apply for an ASSETs grant including the following entities: LEAs; community-based organizations; Indian Tribes or Tribal Organizations; or consortia.

This state-administered, federally funded program provides five-year grant funding to establish or expand before school, after-school and summer programs that provide disadvantaged students academic enrichment opportunities and supportive services to help the students meet state and local standards in core content areas. The programs are created through partnerships between schools and local community resources, and must meet program compliance requirements. Under ESSA, priority will be given to applicants who intend to:

• Serve students who attend school-wide Title I schools implementing comprehensive support and improvement activities.
• Enroll students who may be at risk for academic failure, drop out, criminal or delinquent activities, or who may need positive role models, as well as their families.
• Submit a joint application from an LEA and a community-based organization or another public or private entity.
• Add or expand accessibility to high quality after school programs.

Unmet need for expanded learning opportunities in California. According to a 2016-17 report, “State of the State of Expanded Learning in California” by the California After School Network, California has the largest expanded learning infrastructure in the nation. These programs support after school, summer, inter-session and before school programs at over 4,500 sites serving nearly 860,000 children annually with a daily capacity of 485,000. These programs offer a range of supports and resources for underserved communities, which include year-round learning opportunities, STEM learning, nutrition education, increased physical activity, and social and emotional learning.

Over 2,900 low income schools, including over 1,000 elementary and middle schools, do not currently benefit from a state ASES or federally funded 21st CCLC after school program. In addition, more than a quarter of the state’s English Learners attend schools that do not benefit from an ASES or 21st CCLC after school program.

This report by the After School Network notes that California’s expanded learning system is at risk as a result of stagnant funding and increased operating costs due to rising costs of living and the increased state minimum wage. The federal CCLC program is limited to $7.50 per student per day, while the ASES grant was increased to $8.19 per student per day in 2017.

In 2016-17 approximately $541 million in state ASES grants were allocated to 4,200 elementary and middle school sites and approximately $130 million in federal 21^st Century CCLC grants, including ASSETS grants, were provided to 745 school sites, including 288 high schools. Some programs receive both state and federal funding. Many more applicants requested funding than could be filled with the available funds.

Expanded learning programs serve high need students. Expanded learning programs in California are concentrated in high need schools as 81% of the students enrolled are eligible for free or reduced price meals, 31% are English learners, 2% are migrant students, 11% are special education students, 5% are homeless students, and 3% are students in foster care.

Research supports positive outcomes for high quality expanded learning programs, including reductions in drug use. Research suggests that regular attendance in expanded learning programs increases student achievement, attendance, and positive behaviors as well as closing of achievement gaps. A review of 68 studies on after school participation across the country found that high quality programs are associated with significant increases in academic performance, school attendance, as well as positive social behaviors and significant reductions in conduct problems and drug use. A 2012 study by The National Youth Violence Prevention Resource Center found that children who do not spend any time in after-school activities are 49 percent more likely to have used drugs.

Proposition 64, the marijuana legalization initiative statute establishes funding for youth education, prevention, early intervention and treatment. Proposition 64, as passed by voters in November of 2016, legalizes marijuana and imposes a 15% excise tax on the retail sale of cannabis and cannabis products. The initiative identifies specified uses of the funds generated, including programs for youth education, prevention, early intervention and treatment of substance use disorders. The Legislative Analyst’s Office estimated that this measure could generate additional state and local tax revenues in the range of high hundreds of millions of dollars to over $1 billion annually. A portion of this is designated to go to the YEPEIT account.

The Yes on Proposition 64 ballot argument in the official Secretary of State voter guide identified after-school programs as an example of programs the initiative would fund:

“Proposition 64 creates a safe, legal system for adult use of marijuana. It controls, regulates and taxes marijuana use, and has the nation's strictest protections for children. It provides billions for afterschool programs, job training, drug treatment, and cracking down on impaired driving. Fix our approach to marijuana.”

After-school programs were also prominently featured in campaign commercials. The ad “Revenue” stated “Proposition 64 generates a billion in new tax revenues for California to fund after-school programs and job training and placement initiatives, and the ad “Sense” states “64 taxes marijuana to fund priorities like after-school programs.”

Recommended amendments. Committee staff recommend that the bill be amended as follows:

1. Require that programs funded pursuant to this article be programs demonstrated to be effective and evidence-based or evidence-informed.
2. Require that CDE, in cooperation with DHCS, identify measureable goals to be achieved by programs funded, including, but not limited to, reductions in substance abuse disorders among youth, and improvements in measureable school outcomes, such as increased graduation rates, decreased rates of suspensions and expulsions, and increased school retention.
3. Require each program recipient to report to CDE annually on expenditures and outcomes for each relevant targeted goal, and for CDE to report to the Legislature on the allocation of funds, goal areas targeted, and outcomes reported.

Prior and related legislation. AB 1098 (O’Donnell &Wood) of this Session provides a framework for accountability and legislative oversight of funds allocated to the YEPEIT created by the legalization of recreational cannabis in California. This bill is pending before this Committee.

AB 258 (Jones-Sawyer) of this Session, establishes the School-Based Pupil Support Services Program to increase in-school support services to pupils in order to break down barriers to academic success. The bill appropriates funding from the YEPEIT to the DHCS, for purposes of awarding grants as established in this bill. This bill is pending before this Committee.

AB 1725 (Carrillo) of this Session, would appropriate an additional $112 million in the 2019–20 fiscal year, for the After School Education and Safety Program, and would thereafter continuously appropriate an amount necessary to fund an increase in the daily per-pupil rate equal to the higher of either 50% of increases to the minimum wage or the percentage increase to the California Consumer Price Index. This bill is pending before this Committee.

AB 1744 (McCarty) of the 2016-17 Session, was virtually identical to this bill, would have authorized DHCS to consider after school programs in allocating funds generated from an excise tax on the retail sale of cannabis for youth education, prevention and treatment efforts. This bill was held in the Senate Appropriations Committee.

AB 2471 (Thurmond) of the 2017-18 Session, requires the transfer of funds from the YEPEIT Account established through the passage of the Control, Regulate and Tax Adult Use of Marijuana Act to the CDE to establish a grant program which would allow schools to provide in-school support services to pupils. This bill was held in the Assembly Appropriations Committee.

AB 2622 (Dahle) Chapter 265, Statutes of 2018, amends operating and funding requirements for ASES programs operating at schoolsites in areas that have a population density of less than 11 persons per square mile.

AB 2615 (Wood), Chapter 470, Statutes of 2016, makes a number of revisions to the ASSETs, ASES, and the 21st CCLC after school programs.

REGISTERED SUPPORT / OPPOSITION:

Support

A World Fit For Kids
ARC
Berkeley PTA Council
Boys & Girls Clubs Of Carson
California Afterschool Network
California Alliance Of Boys & Girls Clubs Inc.
California State Alliance Of YMCAs
California State PTA
Citizen Schools
Educare Foundation
Escuela Popular
Fight Crime: Invest In Kids
Give Every Child A Chance
Glendale Unified School District
LA's Best After School Enrichment Program
Moreno Valley; City Of
Newport Mesa USD Project Kidz Connect
North Monterey County Unified School District
Partnership For Children & Youth
Pasadena Learns After School Program
Sacramento Chinese Community Service Center
Sierra Sands Unified School District
Student Success Institute, Inc.
Super Stars Literacy
The Children's Initiative
Think Together
Woodcraft Rangers
Youth Alliance

Opposition

None on file

Analysis Prepared by: Debbie Look / ED. / (916) 319-2087