Section § 7599

Explanation

This law establishes the Safe Neighborhoods and Schools Fund in California's State Treasury. Money in this fund is continuously available to be used for its intended purposes without being restricted to a specific fiscal year.

Additionally, when calculating certain financial obligations under the state's constitution, the monies moved into this fund are treated as part of the General Fund that can be used for designated purposes.

(a)CA Government Code § 7599(a) A fund to be known as the “Safe Neighborhoods and Schools Fund” is hereby created within the State Treasury and, notwithstanding Section 13340 of the Government Code, is continuously appropriated without regard to fiscal year for carrying out the purposes of this chapter.
(b)CA Government Code § 7599(b) For purposes of the calculations required by Section 8 of Article XVI of the California Constitution, funds transferred to the Safe Neighborhoods and Schools Fund shall be considered General Fund revenues which may be appropriated pursuant to Article XIII B.

Section § 7599.1

Explanation

This law requires the Director of Finance to calculate money saved by the state from a specific act each year by July 31 and report it. By August 15, the Controller transfers this saved amount from the General Fund to the Safe Neighborhoods and Schools Fund. The money in this special fund is dedicated solely to the purposes of the act and cannot be redirected for other uses. These funds can be used without considering the fiscal year they were transferred in.

Funding Appropriation.
(a)CA Government Code § 7599.1(a) On or before July 31, 2016, and on or before July 31 of each fiscal year thereafter, the Director of Finance shall calculate the savings that accrued to the state from the implementation of the act adding this chapter (“this act”) during the fiscal year ending June 30, as compared to the fiscal year preceding the enactment of this act. In making the calculation required by this subdivision, the Director of Finance shall use actual data or best available estimates where actual data is not available. The calculation shall be final and shall not be adjusted for any subsequent changes in the underlying data. The Director of Finance shall certify the results of the calculation to the Controller no later than August 1 of each fiscal year.
(b)CA Government Code § 7599.1(b) Before August 15, 2016, and before August 15 of each fiscal year thereafter, the Controller shall transfer from the General Fund to the Safe Neighborhoods and Schools Fund the total amount calculated pursuant to subdivision (a).
(c)CA Government Code § 7599.1(c) Moneys in the Safe Neighborhoods and Schools Fund shall be continuously appropriated for the purposes of this act. Funds transferred to the Safe Neighborhoods and Schools Fund shall be used exclusively for the purposes of this act and shall not be subject to appropriation or transfer by the Legislature for any other purpose. The funds in the Safe Neighborhoods and Schools Fund may be used without regard to fiscal year.

Section § 7599.2

Explanation

This law outlines how funds from the Safe Neighborhoods and Schools Fund are to be distributed each fiscal year starting in 2016. The funds are divided into three parts: 25% goes to the State Department of Education for grants aimed at reducing truancy and supporting at-risk students, 10% goes to the California Victim Compensation Board to aid trauma recovery centers for crime victims, and 65% goes to the Board of State and Community Corrections to fund mental health and substance abuse treatments for those in the criminal justice system, focusing on reducing repeat offenses.

All administrative costs are capped at 5% for each of these programs. Every two years, an audit is conducted to ensure funds are properly used. The cost of administering these funds is taken from the fund itself. Importantly, the funds should not replace existing state or local funding for these initiatives, and local agencies are not required to provide services beyond funded levels.

Distribution of Moneys from the Safe Neighborhoods and Schools Fund.
(a)CA Government Code § 7599.2(a) By August 15 of each fiscal year beginning in 2016, the Controller shall disburse moneys deposited in the Safe Neighborhoods and Schools Fund as follows:
(1)CA Government Code § 7599.2(a)(1) Twenty‑five percent to the State Department of Education, to administer a grant program to public agencies aimed at improving outcomes for public school pupils in kindergarten and grades 1 to 12, inclusive, by reducing truancy and supporting students who are at risk of dropping out of school or are victims of crime.
(2)CA Government Code § 7599.2(a)(2) Ten percent to the California Victim Compensation Board, to make grants to trauma recovery centers to provide services to victims of crime pursuant to Section 13963.1 of the Government Code.
(3)CA Government Code § 7599.2(a)(3) Sixty‑five percent to the Board of State and Community Corrections, to administer a grant program to public agencies aimed at supporting mental health treatment, substance abuse treatment, and diversion programs for people in the criminal justice system, with an emphasis on programs that reduce recidivism of people convicted of less serious crimes, such as those covered by this measure, and those who have substance abuse and mental health problems.
(b)CA Government Code § 7599.2(b) For each program set forth in paragraphs (1) to (3), inclusive, of subdivision (a), the agency responsible for administering the programs shall not spend more than 5 percent of the total funds it receives from the Safe Neighborhoods and Schools Fund on an annual basis for administrative costs.
(c)CA Government Code § 7599.2(c) Every two years, the Controller shall conduct an audit of the grant programs operated by the agencies specified in paragraphs (1) to (3), inclusive, of subdivision (a) to ensure the funds are disbursed and expended solely according to this chapter and shall report his or her findings to the Legislature and the public.
(d)CA Government Code § 7599.2(d) Any costs incurred by the Controller and the Director of Finance in connection with the administration of the Safe Neighborhoods and Schools Fund, including the costs of the calculation required by Section 7599.1 and the audit required by subdivision (c), as determined by the Director of Finance, shall be deducted from the Safe Neighborhoods and Schools Fund before the funds are disbursed pursuant to subdivision (a).
(e)CA Government Code § 7599.2(e) The funding established pursuant to this act shall be used to expand programs for public school pupils in kindergarten and grades 1 to 12, inclusive, victims of crime, and mental health and substance abuse treatment and diversion programs for people in the criminal justice system. These funds shall not be used to supplant existing state or local funds utilized for these purposes.
(f)CA Government Code § 7599.2(f) Local agencies shall not be obligated to provide programs or levels of service described in this chapter above the level for which funding has been provided.