(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.
For the purposes of this article, the following definitions
(a) "Board" means the Board of State and Community Corrections.
(b) "Fund" means the Second Chance Fund established pursuant to
(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.
(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
(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 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.
(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 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
(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
(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
(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
(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
(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
(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
(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.