BILL NUMBER: AB 1056	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 31, 2015
	AMENDED IN ASSEMBLY  MAY 21, 2015
	AMENDED IN ASSEMBLY  APRIL 30, 2015
	AMENDED IN ASSEMBLY  APRIL 20, 2015

INTRODUCED BY   Assembly Member Atkins
   (Principal coauthor: Senator De León)

                        FEBRUARY 26, 2015

   An act to  amend Sections 97013 and 97015 of the Government
Code, and to  add Article 5 (commencing with Section 6046) to
Chapter 5 of Title 7 of Part 3 of the Penal Code, relating to
recidivism reduction, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1056, as amended, Atkins. Second Chance Program.
   (1) Existing  law establishes the Board of State and
Community Corrections as an entity independent of the Department of
Corrections and Rehabilitation, and authorizes the board to carry out
various powers and duties relating to providing advice and
leadership on criminal justice issues.   law, until
January 1, 2020, establishes the Social Innovation Financing Program,
and requires the Board of State and Community Corrections to
administer the program. Existing law, among other things, authorizes
the board, upon appropriation of funds by the Legislature for deposit
into the Recidivism Reduction Fund, to award grants in amounts of
not less than $500,000 and not more than $2,000,000 to each of 3
counties,  selected as specified, for the purpose of
entering into a pay for success or social innovation financing
contract, pursuant to which private investors agree to provide
financing to service providers to achieve social outcomes agreed upon
in advance and the government agency that is a party to the
contractual agreement agrees to pay a return on the investment to the
investors if successful programmatic outcomes are achieved by the
service provider. Existing law limi   ts the total amount of
the grants awarded to $5,000,000. Existing law requires each county
receiving an award to report annually to the Governor and Legislature
on the status of its program. Existing law requires the board to
compile the county reports and submit a summary report to the
Governor and the Legislature annually.  
   This bill would extend the operation of that program and the
reporting requirements until January 1, 2022. 
   This bill would  also  require the board to administer a
competitive grant program that focuses on community-based solutions
for reducing recidivism. The bill would establish minimum criteria
for the grant program and would require the board to establish an
 Executive Steering Committee, composed of 13 members,
  executive steering committee,  as specified, to
 adopt   make recommendations regarding the
design, efficacy, and viability of proposals and to make
recommendations on  guidelines for the submission of proposals
for the grant program, including threshold or scoring criteria, or
both. Among other things, the bill would require those guidelines to
prioritize proposals that advance principles of restorative justice
while demonstrating a capacity to reduce recidivism, and that
leverage certain other federal, state, and local funds or social
investments. The bill would define recidivism, for the purposes of
these provisions, as a conviction of a new felony or misdemeanor
committed within 3 years of release from custody or committed within
3 years of placement on supervision for a previous criminal
conviction.
   (2) The Safe Neighborhoods and Schools Act establishes within the
State Treasury the Safe Neighborhoods and Schools Fund to receive
moneys transferred from the General Fund in an amount equal to the
savings resulting from the implementation of the act, as specified.
The act requires that 65% of the moneys in the Safe Neighborhoods and
Schools Fund be allocated the Board of State and Community
Corrections to administer a grant program to public agencies aimed at
supporting specified types of programs, including diversion
programs, for people in the criminal justice system with an emphasis
on programs that reduce recidivism, as specified.
   This bill would create the Second Chance Fund in the State
Treasury for the purpose of funding the above-described recidivism
reduction program. The bill would require the  Board of State
and Community Corrections to deposit the above-described moneys it
receives   Controller, upon order of the Director of
Finance, to transfer   the moneys available to the Board of
State and Community Corrections  from the Safe Neighborhoods and
Schools Fund into the Second Chance Fund. The bill would also
authorize the Second Chance Fund to receive moneys from any other
federal, state, or local grant, or from any private donation. The
bill would prohibit the board from using the moneys in the fund to
supplant existing programs and from spending more than 5% per year of
the total moneys in the fund for administrative purposes.
   The bill would require the board to administer these provisions,
and moneys in the fund would be continuously appropriated to the
board for expenditure for these purposes. By creating a continuously
appropriated fund, this bill would make an appropriation.
   (3) The Safe Neighborhoods and Schools Act provides that its
provisions may be amended by a statute, passed by a 2/3 vote of each
house of the Legislature and signed by the Governor, that is
consistent with and furthers the intent of the act.
   This bill would declare that its provisions further the intent of
the Safe Neighborhoods and Schools Act.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California voters approved Proposition 47, known as the Safe
Neighborhoods and Schools Act of 2014. The measure was enacted to
ensure that prison spending is focused on violent and serious
offenses, to maximize alternatives for nonviolent and nonserious
crime, and to invest the resulting savings into prevention and
support programs.
   (b) Research has shown that people in the criminal justice system
disproportionately suffer from mental health issues and substance use
disorders. Nationally, over one-half of all people in prisons or
jails have experienced a mental health issue within the last year,
and over one-half of women and 44 percent of men in jail have a drug
or alcohol dependency.
   (c) People in the criminal justice system and formerly
incarcerated individuals have difficulty securing housing and
employment following their incarceration. These challenges are
compounded for people living with mental health issues or substance
use disorders. As a result, many formerly incarcerated people,
especially those with mental health issues or substance abuse
disorders experience homelessness. Experiencing homelessness greatly
increases the likelihood that a formerly incarcerated person will
recidivate.
   (d) Offering people in the criminal justice system and formerly
incarcerated individuals meaningful access to mental health services,
substance use treatment services, housing, housing-related job
assistance, job skills training, and other community-based supportive
services has been shown to decrease the likelihood of future contact
with law enforcement and the criminal justice system.
   (e) Prioritizing the state savings realized by the implementation
of the Safe Neighborhoods and Schools Act of 2014 for projects that
combine mental health services, substance use treatment services,
housing, housing-related job assistance, job skills training, and
other community-based supportive services will help the state
meaningfully reduce recidivism.
   (f) By prioritizing projects that offer comprehensive
interventions, the Legislature intends for public agencies,
nonprofits, and other community-based providers of services to people
in the criminal justice system and formerly incarcerated individuals
to leverage additional federal, state, and local funds for social
investment resources.
   (g) The Legislature intends to promote the use of restorative
justice principles in addressing recidivism.
   SEC. 2.    Section 97013 of the   Government
Code   is amended to read: 
   97013.  (a) Each county receiving an award shall report annually
to the board on the status of its ongoing social innovation financing
program. The report shall also contain an accounting of the moneys
awarded.
   (b) The board shall compile the county reports and submit a
summary report to the Governor and Legislature annually.
   (c) A report made pursuant to this section shall be made in
accordance with the requirements of Section 9795.
   (d)  This section shall remain in effect only until January 1,
 2020,   2022,  and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1,  2020,   2022,  deletes or
extends that date.
   SEC. 3.    Section 97015 of the   Government
Code   is amended to read: 
   97015.   This title shall remain in effect only until January 1,
 2020,   2022,  and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1,  2020,   2022,  deletes or
extends that date.
   SEC. 2.   SEC. 4.   Article 5
(commencing with Section 6046) is added to Chapter 5 of Title 7 of
Part 3 of the Penal Code, to read:

      Article 5.  Second Chance Program


   6046.  (a) The purpose of this article is to build safer
communities by investing in community-based programs, services, and
initiatives for formerly incarcerated individuals in need of mental
health and substance use treatment services.
   (b) The program established pursuant to this article shall be
restricted to supporting mental health treatment, substance use
treatment, and diversion programs for persons in the criminal justice
system, with an emphasis on programs that reduce recidivism of
persons convicted of less serious crimes, such as those covered by
the Safe Neighborhoods and Schools Act of 2014, and those who have
substance use and mental health problems.
   (c) The Board of State and Community Corrections shall administer
a grant program established pursuant to this article.
   6046.1.  For the purposes of this article, the following
definitions shall apply:
   (a) "Board" means the Board of State and Community Corrections.

   (b) "Committee" means an Executive Steering Committee of the
board.  
   (c) 
    (   b)  "Fund" means the Second Chance Fund
established pursuant to Section 6046.2. 
   (d) 
    (   c)  "Public agency" means a county, city,
whether a general law city or a chartered city, or city and county,
the duly constituted governing body of an Indian reservation or
rancheria, a school district, municipal corporation, district,
political subdivision, or any board, commission, or agency thereof,
entities that are legislative bodies of a local agency pursuant to
subdivision (c) or (d) of Section 54952 of the Government Code, a
housing authority organized pursuant to Part 2 (commencing with
Section 34200) of Division 24 of the Health and Safety Code, a state
agency, public district, or other political subdivision of the state,
or any instrumentality thereof, which is authorized to engage in or
assist in the development or operation of housing for persons and
families of low or moderate income. 
   (e) 
    (   d)  "Recidivism" means a conviction of a
new felony or misdemeanor committed within three years of release
from custody or committed within three years of placement on
supervision for a previous criminal conviction.
   6046.2.  (a) The Second Chance Fund is hereby created in the State
Treasury. The board shall be responsible for administering the fund.
Moneys in the fund are hereby continuously appropriated without
regard to fiscal year for the purposes of this article.
   (b) (1) The  Board of State and Community Corrections
shall deposit the moneys disbursed to it   Controller,
upon order of the Director of Finance, shall transfer moneys
available to the Board of State and Community Corrections 
pursuant to paragraph (3) of subdivision (a) of Section 7599.2 of the
Government Code into the Second Chance Fund.
   (2) The Second Chance Fund may receive moneys from any other
federal, state, or local grant, or from any private donation or
grant, for the purposes of this article.
   (c) The board shall not spend more than 5 percent annually of the
moneys in the fund for administrative costs.
   6046.3.  (a) The board shall administer a competitive grant
program to carry out the purposes of this article that focuses on
community-based solutions for reducing recidivism. The grant program
shall, at minimum, do all of the following:
   (1) Restrict eligibility to proposals designed to serve people who
have been arrested, charged with, or convicted of  a 
criminal offense and have a history of mental health or substance use
disorders.
   (2) Restrict eligibility to proposals that offer mental health
services, substance use disorder treatment services, misdemeanor
diversion programs, or some combination thereof.
   (3) Restrict eligibility to proposals that have a public agency as
the lead applicant.
   (b) The board shall  create a committee to develop
guidelines for administration of the grant program, consistent with
the purposes of this article. The committee shall adopt 
 form an executive steering committee that includes, but is not
limited to, a balanced and diverse membership from relevant state and
local government entities, community-based treatment and service
providers, and the formerly incarcerated community. The committee
shall have expertise in homelessness and   housing,
behavioral health and substance abuse treatment, and effective
rehabilitative treatment for adults and juveniles. The committee
shall make recommendations regarding the design, efficacy, and
viability of proposals, and make recommendations on  guidelines
for the submission of proposals, including threshold or scoring
criteria, or both, that do all of the following:
   (1) Prioritize proposals that advance principles of restorative
justice while demonstrating a capacity to reduce recidivism.
   (2) Prioritize proposals that leverage other federal, state, and
local funds or other social investments, such as the following
sources of funding:
   (A) The Drug Medi-Cal Treatment Program (22 Cal. Code Regs.
51341.1, 51490.1, and 51516.1).
   (B) The Mental Health Services Act, enacted by Proposition 63 at
the November 2, 2004, general election, as amended.
   (C) Funds provided for in connection with the implementation of
Chapter 15 of the Statutes of 2011.
   (D) The Community Corrections Performance Incentives Act (Stats.
2009, Ch. 608; Chapter 3 (commencing with Section 1228) of Title 8 of
Part 2).
   (E) The tax credits established pursuant to Sections 12209,
17053.57, and 23657 of the Revenue and Taxation Code.
   (F) The federal Department of Housing and Urban Development funds,
such as the Emergency Solutions Grant program (42 U.S.C. Sec. 11371
et seq.).
   (G) The federal Department of Veterans Affairs Supportive Services
for Veteran Families program (38 U.S.C. Sec. 2044).
   (H) Social Innovation Funds established by the Corporation for
National and Community Service pursuant to Section 12653k of Title 42
of the United States Code.
   (I) The Edward Byrne Memorial Justice Assistance Grant Program (42
U.S.C. Sec. 3750 et seq.).
   (3) Prioritize proposals that provide for all of the following:
   (A) Mental health services, substance use disorder treatment
services, misdemeanor diversion programs, or some combination
thereof.
   (B) Housing-related assistance that utilizes evidence-based
models, including, but not limited to, those recommended by the
federal Department of Housing and Urban Development. Housing-related
assistance may include, but is not limited to, the following:
   (i) Financial assistance, including security deposits, utility
payments, moving-cost assistance, and up to 24 months of rental
assistance.
   (ii) Housing stabilization assistance, including case management,
relocation assistance, outreach and engagement, landlord recruitment,
housing navigation and placement, and credit repair.
   (C) Other community-based supportive services, such as job skills
training, case management, and civil legal services.
   (4) Prioritize proposals that leverage existing contracts,
partnerships, memoranda of understanding, or other formal
relationships to provide one or more of the services prioritized in
paragraph (3).
   (5) Prioritize proposals put forth by a public agency in
partnership with a philanthropic or nonprofit organization.
   (6) Prioritize proposals that promote interagency and regional
collaborations.
   (7) Consider ways to promote services for people with offenses
identical or similar to those addressed by the Safe Neighborhoods and
Schools Act of 2014, without precluding assistance to a person with
other offenses in his or her criminal history.
   (8)  Consider geographic diversity.
   (9) Consider appropriate limits for administrative costs and
overhead.
   (10) Consider proposals that provide services to juveniles.
   (11) Permit proposals to expand the capacity of an existing
program and prohibit proposals from using the fund to supplant
funding for an existing program. 
   (c) The committee shall consist of 13 members and shall be
composed as follows:  
   (1) A formerly incarcerated individual who has received or is
receiving mental health or substance use disorder treatment.
 
   (2) A family member of a current or formerly incarcerated
individual.  
   (3) A mental health expert, appointed by the Senate Committee on
Rules.  
   (4) A substance use disorders expert, appointed by the Speaker of
the Assembly.  
   (5) A housing programs expert.  
   (6) An expert on homelessness.  
   (7) Two community-based supportive service providers with
experience in providing services to formerly incarcerated individuals
and reducing recidivism.  
   (8) A community supervision expert.  
   (9) An academic expert with a history of research and expertise on
the best practices for reducing recidivism.  
   (10) A member of the board.  
   (11) A public agency administrator.  
   (12) An additional expert, to be selected by the board. 
   SEC. 3.   SEC. 5.   The Legislature
finds and declares that this act furthers the intent of the Safe
Neighborhoods and Schools Act enacted by Proposition 47 at the
November 4, 2014, general election.