BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1404 (Leno) - Victims of violent crimes:  trauma recovery  
          centers
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: April 26, 2016         |Policy Vote: HEALTH 9 - 0, PUB. |
          |                                |          S. 7 - 0              |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: No                     |Mandate: No                     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: May 9, 2016       |Consultant: Jolie Onodera       |
          |                                |                                |
           ----------------------------------------------------------------- 


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


          Bill  
          Summary:  SB 1404 would recognize the University of California,  
          San Francisco General Hospital Trauma Recovery Center (UCSF TRC)  
          as the State Pilot TRC, and would require the Victim  
          Compensation and Government Claims Board (Board) to enter into  
          an interagency agreement with the UCSF TRC to establish the  
          State Pilot TRC as the state's trauma recovery center of  
          excellence (TR-COE), as specified. This bill: 
           Removes the restriction in existing law limiting TRC grant  
            funding only from the Restitution Fund.
           Deletes the limitation in existing law restricting the number  
            of grant awards to a specific TRC to no more than one grant  
            for any period of time.
           Requires TRCs funded through the Safe Neighborhoods and  
            Schools Fund (SNSF) to meet specified statutory requirements  
            and standards.
           Specifies procedures and policies, including reporting  
            requirements, for using funds from the SNSF created through  







          SB 1404 (Leno)                                         Page 1 of  
          ?
          
          
            Proposition 47 (2014).
           Requires the Board to create an advisory committee to make  
            recommendations on regulations governing TRC funding and the  
            criteria for awarding grants.


          Fiscal  
          Impact:  
            Administrative costs  :  Annual costs of $925,000 (Special  
            Fund*/General Fund**) to the Board to review and evaluate TRC  
            grant applications, facilitate advisory committee activities,  
            secure an evaluation contractor (potentially UC) and submit  
            annual reports to the Legislature. Administrative costs  
            payable from the SNSF would be limited to 5 percent of the  
            SNSF funds received annually.
            TRC grants  :  Major future grant awards in the millions of  
            dollars (Special Fund*/General Fund**) annually provided to  
            TRCs meeting specified criteria, including the potential for  
            the issuance of multiple awards to a single TRC with  
            overlapping grant periods. In addition to the $2 million  
            annual appropriation from the Restitution Fund, the LAO has  
            projected annual disbursements from the SNSF to the Board in  
            the range of $10 million to $20 million to fund TRC grants.  
            The Restitution Fund is structurally imbalanced. In light of  
            the dedicated funding source for TRCs provided by Proposition  
            47 (2014), removal or reduction of the annual appropriation  
            from the Restitution Fund may be considered in the future.  
            UC (TR-COE) activities  :  To the extent the UC resolves to  
            enter into the agreement, significant ongoing costs  
            (Private/Local Fund/Federal Fund/Special Fund*) to comply with  
            the requirements of the agreement including but not limited to  
            providing training materials, ongoing consultation to the  
            Board and TRCs, and designing a multisite evaluation to  
            measure effectiveness of TRCs. Staff notes the use of SNSF  
            funds awarded as TRC grants may not be allowable for the  
            aforementioned activities to the extent the activities do not  
            "provide services to victims of crime," but are considered  
            administrative in nature. 

          *Restitution Fund
          ** Safe Neighborhoods and Schools Fund (annual transfer from the  
          General Fund)










          SB 1404 (Leno)                                         Page 2 of  
          ?
          
          
          Background:  Existing law creates the Victims of Crime Program,  
          administered by the California Victim Compensation and  
          Government Claims Board (Board), to reimburse victims of crime  
          for the pecuniary losses they suffer as a direct result of  
          criminal acts such as medical related expenses. Indemnification  
          is made from the Restitution Fund, which is continuously  
          appropriated to the Board for these purposes. 
          Existing law requires the Board to enter into an interagency  
          agreement with the UCSF to establish a recovery center for  
          victims of crime at the San Francisco General Hospital for  
          comprehensive and integrated services to victims of crime,  
          subject to funding appropriated for that purpose. (Government  
          Code (GC)  13974.5.)

          Existing law provides for $2 million annually from the  
          Restitution Fund to a grant program created in 2013 to replicate  
          the successful TRC pioneered by UCSF. The TRC treatment model  
          was developed in 2001 to address the multiple barriers victims  
          face recovering from crime, and utilizes a comprehensive,  
          flexible approach designed to meet the unique needs of crime  
          victims suffering from trauma. TRCs utilize a multidisciplinary  
          staff to provide direct mental health services and health  
          treatment while coordinating services with law enforcement and  
          other social service agencies, and all services are co-located  
          with one coordinating point of contact for the victim. (GC   
          13963.1.) 

          Proposition 47, the Safe Neighborhoods and Schools Act of 2014  
          (Act), reclassifies controlled substance felony and alternate  
          felony-misdemeanor crimes as misdemeanors, with exceptions for  
          defendants convicted of a sex offense, a specified drug crime  
          involving specified weights of volume of the drug, a crime where  
          the defendant used or was armed with a weapon, a homicide,  
          solicitation of murder, and any crime for which the sentence is  
          a life term. 

          The Act requires the Director of Finance (DOF), by August 15 of  
          each fiscal year beginning in 2016, to calculate the savings  
          from the reduced penalties and requires the Controller to  
          distribute the amount of savings according to the following  
          formula: 

             25 percent to the Department of Education for a grant  
             program to public agencies to improve outcomes for  








          SB 1404 (Leno)                                         Page 3 of  
          ?
          
          
             kindergarten through high school students at risk of dropping  
             out of school or who are crime victims. 

             10 percent to the Board, to make grants to TRCs to provide  
             services to victims of crime pursuant to Section 13963.1 of  
             the Government Code.

             65 percent to the Board of State and Community Corrections  
             for a grant program to public agencies for mental health and  
             drug abuse treatment and diversion programs, with an emphasis  
             on reducing recidivism. (GC  7599-7599.2.)

          Existing law provides that the agency responsible for  
          administering the programs noted above shall not spend more than  
          5 percent of the total funds it receives from the Safe  
          Neighborhoods and Schools Fund (SNSF) on an annual basis for  
          administrative costs.

          Existing law requires the Controller to transfer from the  
          General Fund to the SNSF the total amount of savings calculated  
          by the DOF. Moneys in the SNSF are continuously appropriated for  
          the purposes of the Act. Notably, the funds transferred to the  
          SNSF are to be used exclusively for the purposes specified in  
          the Act and are not subject to appropriation or transfer by the  
          Legislature for any other purpose. The funds in the SNSF may  
          additionally be used without regard to fiscal year. 


          Proposed Law:  
           This bill would recognize the UCSF TRC as the State Pilot TRC,  
          and would require the Board to enter into an interagency  
          agreement with the UCSF TRC, provided that the UC agrees to the  
          bill's provisions through a resolution, to establish the State  
          Pilot TRC as the state's trauma recovery center of excellence,  
          as specified. Additionally, this bill: 
           Requires the Board to use the evidence-based Integrated Trauma  
            Recovery Services (ITRS) model developed by the State Pilot  
            TRC when selecting, establishing, and implementing TRCs, as  
            specified.

           Removes the prohibition in existing law limiting TRC grant  
            funding only from the Restitution Fund.

           Deletes the limitation in existing law restricting the number  








          SB 1404 (Leno)                                         Page 4 of  
          ?
          
          
            of grant awards to a specific TRC to no more than one grant  
            for any period of time.

           Requires TRCs funded through the Safe Neighborhoods and  
            Schools Fund (SNSF) to meet numerous specified statutory  
            requirements and standards.

           Adds case managers and peer counselors to the list of  
            multidisciplinary staff of clinicians that a TRC must have as  
            a resource to crime victims. 

           Specifies procedures and policies, including reporting  
            requirements, for using funds from the SNSF, as follows:

                  o         Prohibits the Board from spending more than 5  
                    percent annually of the money appropriated to it from  
                    the SNSF for administrative costs.
                  o         Requires the Board to annually report to the  
                    Legislature on the funding received from the SNSF with  
                    a detailed summary of the programs funded by the  
                    moneys allocated to it from the SNSF.

           Requires the Board to create an advisory committee to make  
            recommendations on regulations governing TRC funding, the  
            criteria for awarding grants to TRCs.

           Includes numerous uncodified and codified legislative findings  
            and declarations.


          Prior  
          Legislation:  SB 518 (Leno) 2015 was substantially similar to  
          this measure. SB 518 was held on the Suspense File of the  
          Assembly Appropriations Committee.
          SB 854 (Committee on Budget and Fiscal Review) Chapter 28/2014,  
          the state and local government budget trailer bill, among its  
          numerous provisions revised the provision conditioning TRC  
          grants upon appropriation of the Legislature to instead state  
          the intent of the Legislature to annually appropriate $2 million  
          per year from the Restitution Fund for TRC grants. 


          SB 71 (Committee on Budget and Fiscal Review) Chapter 28/2013,  
          the state government budget trailer bill, among its numerous  








          SB 1404 (Leno)                                         Page 5 of  
          ?
          
          
          provisions required that upon appropriation by the Legislature,  
          the VCGCB award TRC grants totaling up to $2 million per year to  
          be funded only from the Restitution Fund.




          Staff  
          Comments:  The Board has estimated the provisions of this  
          measure would result in annual costs of $925,000. These costs  
          include funding to facilitate the interagency agreement with UC,  
          additional staffing to meet the operational and reporting  
          requirements resulting from expansion of the program, data  
          collection and software needs, and the funding to secure an  
          evaluation contractor ($490,000). The contractor costs are  
          estimated to constitute ten percent of the projected amount of  
          grant funds to be distributed (currently $2 million Restitution  
          Fund and $2.9 million estimated SNSF). Staff notes the SNSF  
          funds available for administrative costs to the Board are  
          limited to five percent of the total funds received by the Board  
          from the SNSF on an annual basis ($145,000 based on the current  
          estimate of total SNSF funds to the Board of $2.9 million in FY  
          2016-17). The remainder of expenditures would be supported by  
          the Restitution Fund, which staff notes is structurally  
          imbalanced.
          The UCSF TRC currently receives approximately $1 million in  
          local funding, $400,000 from the Federal Office on Refugee  
          Resettlement, and about $400,000 from the Board (as a result of  
          SB 71 noted above). SB 71 (Chapter 28/2013) established six  
          TRC's in California based on the UCSF model and appropriated $2  
          million annually from the Restitution Fund to fund the TRCs  
          (UCSF, Long Beach, Solano, Stockton, and two in Los Angeles). To  
          the extent UC resolves to enter into the agreement, annual costs  
          to provide the level of services required would likely be in the  
          low millions of dollars to provide the training materials,  
          technical assistance, and ongoing consultation to the Board and  
          other TRCs as required under the agreement. Additionally, the  
          agreement requires the UC to design a multisite evaluation to  
          measure adherence to the practice and effectiveness of each TRC.


          This bill would allow the Board to award multiple grants to  
          single TRCs with overlapping terms utilizing different grant  
          fund sources. It is unclear whether this allowance will result  








          SB 1404 (Leno)                                         Page 6 of  
          ?
          
          
          in unnecessary complexities in reporting and documentation  
          requirements for both TRCs and the Board. 




          Recommended  
          Amendments:  
          (1)This bill contains numerous legislative findings and  
            declarations. Albeit uncodified, staff recommends the  
            following amendments to more accurately reflect the language  
            of Proposition 47 (2014) which specifies grant funds are to be  
            used to provide services to victims of crime:


            On page 3, lines 21-23:


            (e) The Safe Neighborhoods and Schools Act of 2014 requires 10  
            percent of the moneys in the Safe Neighborhoods and Schools  
            Fund to be allocated to the California Victim Compensation  
             Program   and Government Claims Board  to administer a grant  
            program to establish   make grants to  trauma recovery centers  to  
            provide services to victims of crime   modeled after the UCSF  
            TRC  .





          (2)As noted in the Background section of this analysis, SNSF  
            funds are continuously appropriated, and are disbursed by the  
            Controller to relevant agencies pursuant to the provisions of  
            Proposition 47 (2014). Consequently, staff recommends an  
            amendment on line 9 of page 8 to strike the phrase  
            "appropriated to it" and replace with "it receives" to be  
            consistent with the verbiage in GC  7599.2(b) to enable the  
            BSCC to utilize the SNSF funds disbursed by the Controller for  
            administrative purposes.


            On page 8, lines 8-10: 










          SB 1404 (Leno)                                         Page 7 of  
          ?
          
          
            (b) The board shall not spend more than 5 percent  annually of  
            the moneys appropriated to it from the Safe Neighborhoods and  
            Schools Fund for administrative costs.   of the total funds it  
            receives from the Safe Neighborhoods and Schools Fund on an  
            annual basis for administrative costs  .




                                      -- END --