BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  June 9, 2015


                        ASSEMBLY COMMITTEE ON HUMAN SERVICES


                                  Kansen Chu, Chair


          AB 1405  
          (Grove) - As Amended June 3, 2015


          SUBJECT:  Developmental centers: closure.


          SUMMARY:  Requires the Department of Developmental Services  
          (DDS) to close the Fairview and Sonoma Developmental Centers and  
          requires 50% of the proceeds from the lease of the developmental  
          center properties to be redirected to regional center services  
          in the community.


          Specifically, this bill:


          1)Requires DDS to close the Sonoma Developmental Center by the  
            end of 2018, and requires the Fairview Developmental Center to  
            be closed no later than December 31, 2021.


          2)Requires the director of the Department of General Services to  
            upon the closure, lease all or part of the parcels at the  
            Sonoma and Fairview Developmental Centers, as specified.


          3)Requires any use of the parcels to be ratified by a vote of  
            the appropriate state and local government agencies with  
            authority to make decisions about the use of that land, as  








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            specified.


          4)Establishes the Lanterman Act Community-Based Services Fund in  
            the State Treasury, and requires all moneys in the fund to be  
            continuously appropriated to DDS to supplement, and not  
            supplant, existing purchase of services funds used by regional  
            centers to purchase services and supports for persons with  
            developmental disabilities.


          5)Requires 50% of the net proceeds received by the state for the  
            lease of the property, as defined, to be deposited into the  
            Budget Stabilization Account, as specified, and requires the  
            other 50% of the net proceeds to be deposited into the  
            Lanterman Act Community-Based Services Fund created by this  
            bill.


          6)Expresses the intent of the Legislature to transfer current  
            funding for the operations of the Fairview Developmental  
            Center and the Sonoma Developmental Center to fund purchase of  
            services at regional centers.


          7)Provides that this act is an urgency statute in order to, at  
            the earliest possible time, facilitate the orderly closure of  
            the Sonoma and Fairview Developmental Centers.


          EXISTING LAW:


          1)Establishes DDS as the agency that oversees the state's  
            developmental centers, and specifies the duties of the  
            department and developmental center employees.  (WIC 4400 et  
            seq.)

          2)Grants all individuals with developmental disabilities, among  








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            all other rights and responsibilities established for any  
            individual by the United States Constitution and laws and the  
            California Constitution and laws, the right to treatment and  
            habilitation services and supports in the least restrictive  
            environment and the right to be free from harm, including  
            unnecessary physical restraint or isolation, excessive  
            medication, abuse, or neglect.  (WIC 4502)

          3)Requires DDS to, upon proposing the closure of a state  
            developmental center, submit a detailed plan to the  
            Legislature not later than April 1 immediately prior to the  
            fiscal year in which the plan is to be implemented, and as a  
            part of the Governor's proposed budget.  (WIC 4471 (a))

          4)Requires DDS to, prior to submission of the plan to the  
            Legislature, solicit input from the State Council on  
            Developmental Disabilities, the Association of Regional Center  
            Agencies, Disability Rights California, the local area board  
            on developmental disabilities, the local regional center,  
            consumers living in the developmental center, parents, family  
            members, guardians, and conservators of persons living in the  
            developmental centers or their representative organizations,  
            persons with developmental disabilities living in the  
            community, developmental center employees and employee  
            organizations, community care providers, the affected city and  
            county governments, and business and civic organizations, as  
            may be recommended by local state Senate and Assembly  
            representatives.  (WIC 4474.1 (c))

          5)Requires DDS to, prior to the submission of the plan to the  
            Legislature, confer with the county in which the developmental  
            center is located, the regional centers served by the  
            developmental center, and other state departments using  
            similar occupational classifications, to develop a program for  
            the placement of staff of the developmental center planned for  
            closure in other developmental centers, as positions become  
            vacant, or in similar positions in programs operated by, or  
            through contract with, the county, regional centers, or other  
            state departments.  (WIC 4474.1 (d))








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          6)Requires DDS to, prior to submission of the plan to the  
            Legislature, hold at least one public hearing in the community  
            in which the developmental center is located, with public  
            comment from that hearing summarized in the plan.  (WIC 4474.1  
            (e))

          FISCAL EFFECT:  Unknown


          COMMENTS:


          Developmental Services:  The Lanterman Act guides the provision  
          of services and supports for Californians with developmental  
          disabilities.  Each individual under the Act, typically referred  
          to as a "consumer," is legally entitled to treatment and  
          habilitation services and supports in the least restrictive  
          environment.  Lanterman Act services are designed to enable all  
          consumers to live more independent and productive lives in the  
          community.  The term "developmental disability" means a  
          disability that originates before an individual attains 18 years  
          of age, is expected to continue indefinitely, and constitutes a  
          substantial disability for that individual.  It includes  
          intellectual disability, cerebral palsy, epilepsy, and autism  
          spectrum disorders (ASD).  Other developmental disabilities are  
          those disabling conditions similar to an intellectual disability  
          that require care and management similar to that required by  
          individuals with intellectual disabilities.  This does not  
          include conditions that are solely psychiatric or physical in  
          nature, and the conditions must occur before age 18, result in a  
          substantial disability, be likely to continue indefinitely, and  
          involve brain damage or dysfunction.  Examples of conditions  
          might include intracranial neoplasms, degenerative brain disease  
          or brain damage associated with accidents.












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          DDS contracts with 21 regional centers, which are private  
          nonprofit entities, to carry out many of the state's  
          responsibilities under the Lanterman Act.  The regional center  
          caseload is comprised of over 280,000 consumers who receive  
          services such as residential placements, supported living  
          services, respite care, transportation, day treatment programs,  
          work support programs, and various social and therapeutic  
          services and activities.





          Developmental centers (DCs):  Approximately 1,100 regional  
          center consumers reside at one of California's three  
          developmental centers (Porterville, Sonoma, and Fairview) and  
          one state-operated, specialized community facility (Canyon  
          Springs).  These facilities provide 24-hour habilitation and  
          medical and social treatment services.  While some residents in  
          these facilities were voluntarily placed by relatives and  
          conservators due to acute medical needs and other special needs  
          that made it unsafe for them to live in the community, some  
          residents have experienced involuntary placements due to court  
          orders (e.g., forensic placements at Porterville DC).





          The first developmental center opened its doors to patients in  
          1888 and housed and cared for individuals with developmental  
          disabilities, as well as patients diagnosed with mental illness.  
           Those two populations were eventually separated into different  
          facilities, and in 1972 the programs for patients with mental  
          illness were discontinued, and the center served only persons  
          with developmental disabilities.  In the years following, the  
          number of state facilities increased throughout the state,  
          providing what was, at that time, the only placement option for  








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          many individuals with intellectual and developmental  
          disabilities who couldn't be cared for at home.  Over time,  
          increased awareness of the unique needs of individuals with  
          developmental disabilities grew, prompting the establishment of  
          other state facilities specifically for people with  
          developmental disabilities.  Non-residential community-based  
          programs, therapeutic strategies and other services were also  
          developed, providing support and alternatives that allowed more  
          families to keep their children with intellectual and  
          developmental disabilities at home.  As a result, the resident  
          population dropped in the DCs from a high of 13,400 in 1968-with  
          thousands more on a waiting list for admission-to 1,302  
          residents as of April 9, 2014.  At their peak in the late  
          1960's, the state had eight developmental centers, each of which  
          was designed to accommodate between 2,500 and 3,500 individuals.  
           


          In 1995, the state closed the Stockton State Hospital, and two  
          years later followed with the shut-down of Camarillo State  
          Hospital which still housed clients with both mental illness and  
          developmental disabilities.  The historic Olmstead vs LC (1999)  
          U.S. Supreme Court ruling further spurred the shift to  
          community-based care, citing that a lack of community supports  
          was not legal grounds for denying someone a move from an  
          institution to a community setting, and was, instead, a  
          violation of individual civil rights.  Soon after the ruling,  
          many states began shuttering their institutions and developing  
          additional community-based services.  Agnews Developmental  
          Center closed its doors in 2009, and in 2010, Sierra Vista, a  
          state-operated community facility, was closed.  Most recently,  
          DDS completed closure of the Lanterman Developmental Center in  
          Pomona on December 31, 2014.


          Sonoma Developmental Center:  Of the three remaining DCs, Sonoma  
          DC has the largest population, with 404 residents.  It is the  
          oldest facility in California that was established specifically  
          to serve the needs of individuals with developmental  








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          disabilities.  The facility was originally opened in Santa Clara  
          in 1891 and named the California Home for the Care and Training  
          of the Feeble Minded.  A few years later, with financial support  
          from the State Legislature, the facility was moved to Eldridge,  
          between the towns of Glen Ellen and Sonoma, on over 1,600 acres  
          of land.  After undergoing numerous name changes, the facility  
          was finally named the Sonoma Developmental Center in 1986.   
          Sonoma DC includes a campus with residential cottages, a  
          campground, store, post office, petting farm, swimming pool and  
          other recreational facilities for the residents.  It also sits  
          in the midst of a wildlife corridor that open space advocates  
          and others have pledged to protect from development, and is  
          adjacent to Jack London State Park, which features equestrian  
          trails, camping facilities, lakes and historic buildings. 


          Fairview Developmental Center:  Fairview Developmental Center  
          officially opened in January 1959 and originally occupied 752  
          acres of land in Costa Mesa.  The Fairview DC population peaked  
          in 1967 at 2,700 and much of the original land was transferred  
          in 1979 to the city of Costa Mesa.  The population was 277 as of  
          May 27, 2015. 


          A 36-hole golf course surrounds the campus on three sides, which  
          was built on land that was sold to the city, and the on-site  
          facilities include a swimming pool, work activity center,  
          auditorium, park, small animal farm, recreational campsite, and  
          a library.  Services available at Fairview DC, which are  
          described on the DDS website, include training in daily living,  
          vocational, leisure, academic, communication, mobility,  
          socialization, and community skills provided both on campus and  
          in community settings.  The Harbor Village Apartments, a  
          residential rental project consisting of 568 units, are located  
          on the northern portion of the campus.  Harbor Village was  
          initially developed in the late 1980s to provide housing for  
          employees and consumers of Fairview Developmental Center, but  
          tenants now include the local community, staff and consumers of  
          Fairview DC, as well as other individuals with developmental  








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          disabilities.  Another residential development, Shannon's  
          Mountain, is being discussed to be built on the Fairview  
          Property.


          Recent federal action:  In July 2012, California Department of  
          Public Health (DPH) licensing staff, which functions as a proxy  
          for the federal Centers on Medicaid and Medicare Services (CMS)  
          and carries out state licensing duties, conducted an annual  
          survey of Sonoma DC to assess whether the facility was in  
          compliance with state and federal licensing regulations.   
          Numerous violations were cited in the resulting 250-page report,  
          which revealed a lack of compliance in six of the eight  
          categories required for continued federal funding.  Among the  
          findings were that Sonoma DC's management failed to ensure  
          adequate facility staffing, failed to provide active treatment,  
          failed to provide appropriate health care services, failed to  
          take actions that identified and resolved problems of a systemic  
          nature and several other key categories.  The team also  
          identified four situations that posed immediate jeopardy to the  
          health and safety of patients at the facility including 11  
          clients with injuries that resembled burns from a stun gun, a  
          finding that also prompted a criminal investigation.


          In response to the program and patient safety violations  
          uncovered at Sonoma DC, CMS planned to decertify each of the  
          developmental center's 10 intermediate care facility (ICF)  
          units.  Instead, DDS withdrew four of the 10 ICF units from  
          federal certification in January 2013, which allowed federal  
          certification and funding to be maintained for the other six ICF  
          units.  The loss of certification has cost the state millions in  
          what would have otherwise been paid in federal funding.  


          Based on the findings of the Sonoma DC inspection, DPH  
          re-inspected the other developmental centers and found  
          additional federal compliance issues.  In January 2014, DDS and  
          DPH reached an agreement to avoid decertification through  








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          developing a root-cause analysis and action plan, similar to  
          what was enacted at Sonoma DC, for Porterville DC and Fairview  
          DC.


          Task Force on the Future of Developmental Centers:  2013 budget  
          trailer bill language required California's Health and Human  
          Services Agency (CHHS) Secretary to submit to the Legislature a  
          master plan for the future of DCs by November 15, 2013, and to  
          submit to the Legislature, by January 10, 2014, the  
          Administration's plans to meet the service needs of all current  
          residents of the DCs.  To ensure the consideration of  
          perspectives from an array of stakeholders, the Secretary formed  
          the Task Force on the Future of Developmental Centers to offer  
          input leading to the development of the CHHS plans.  The task  
          force included a broad representation of stakeholders, including  
          a resident of Sonoma DC, family members, regional center  
          directors, providers, labor representatives, consumer advocates,  
          legislators, and DDS and Agency staff.  On January 13, 2014, the  
          Secretary released the "Plan for the Future of Developmental  
          Centers in California."  While the plan meets the requirements  
          of the master plan, the subsequent plans required to implement  
          the recommendations of the master plan have yet to be submitted,  
          and the Secretary has not provided an official timeline for the  
          release of those plans.   


           The plan provided six consensus recommendations:


          1)More community style homes/facilities should be developed to  
            serve individuals with enduring and complex medical needs  
            using existing models of care;
          2)For individuals with challenging behaviors and support needs,  
            the state should operate at least two acute crisis facilities  
            and small transitional facilities.  The state should develop a  
            new "Senate Bill (SB) 962-like" model that would provide a  
            higher level of behavioral services.  Funding should be made  
            available so that regional centers can expand mobile crisis  








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            response teams, crisis hotlines, day programs, short-term  
            crisis homes, new-model behavioral homes, and supported living  
            services for those transitioning to their own homes;


          3)For individuals who have been involved in the criminal justice  
            system, the state should continue to operate the Porterville  
            DC's Secure Treatment Program and the transitional program at  
            Canyon Springs Community Facility.  Alternatives to the  
            Porterville DC Secure Treatment Program also should be  
            explored;


          4)The development of a workable health resource center model  
            should be explored, to address the complex health needs of DC  
            residents who transition to community homes;


          5)The state should enter into public/private partnerships to  
            provide integrated community services on existing state lands,  
            where appropriate.  Also, consideration should be given to  
            repurposing existing buildings on DC property for developing  
            service models identified in Recommendations 1 through 4; and


          6)Another task force should be convened to address how to  
            strengthen the community system. (The Developmental Services  
            Task Force was subsequently established and continues to meet  
            and discuss how to improve community-based services for  
            regional center clients.)


          Need for this bill:  According to the author, "California is at  
          a dramatic crossroads in meeting its philosophical and actual  
          commitments to its citizens with developmental disabilities  
          under the state's historic and famed Lanterman Act.   
          Philosophically, institutional settings are no longer considered  
          appropriate, and the federal government is moving away from this  
          model under its new CMS guidelines.  Additionally, the State's  








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          funding of community-based programs serving the approximately  
          280,000 persons with developmental disabilities is inadequate to  
          sustain quality programs for this population?  Community-based  
          agencies throughout California are struggling to provide quality  
          services.  [This bill] addresses all of these concerns in a  
          constructive way.  It gives certainty to the process of closure,  
          and guarantees that these funds will stay in the community.   
          This is necessary to 'keep the promise' of the Lanterman Act."


          Staff comments:  The May Revision of the Governor's 2015-16  
          Budget includes a proposal for closure of the Sonoma and  
          Fairview Developmental Centers, in addition to the closure of  
          the non-secure treatment portion of the Porterville  
          Developmental Center.  Closure of the Sonoma DC would take place  
          by the end of 2018, with the other two developmental centers  
          closing no later than 2021.  While this bill has been amended to  
          align the closure dates for the Sonoma and Fairview DCs with the  
          dates included in the Governor's budget proposal, it lacks any  
          detail about what the process will be for assessing resident  
          needs and finding appropriate, safe alternatives for residents  
          transitioning out of the DCs and into the community.


          Current law requires DDS, upon announcing the closure of a  
          developmental center, to develop a closure plan and submit it to  
          the Legislature by April 1 immediately prior to the fiscal year  
          in which the plan is to be implemented.  The plan is required to  
          include the following elements:


             a)   A description of the land and buildings affected;

             b)   A description of existing lease arrangements at the  
               developmental center;

             c)   The impact on residents and their families;

             d)   Anticipated alternative placements for residents;








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             e)   The impact on regional center services;

             f)   Where services will be obtained that, upon closure of  
               the developmental center, will no longer be provided by  
               that facility;

             g)   Potential job opportunities for developmental center  
               employees and other efforts made to mitigate the effect of  
               the closure on employees;

             h)   The fiscal impact of the closure; and

             i)   The timeframe in which closure will be accomplished.

          Trailer bill language submitted as part of the Governor's May  
          Revision requires DDS to submit a plan or plans for the closure  
          of one or more developmental centers to the Legislature no later  
          than October 1, 2015 and specifies that the plan may be modified  
          during the subsequent legislative review process.  The revised  
          budget proposal also includes $49.3 million to coordinate the  
          Sonoma DC closure and begin developing community-based resources  
          to support the Sonoma DC residents transitioning into the  
          community.


          During the closure processes of both the Agnews and Lanterman  
          developmental centers, DDS upheld the need to secure appropriate  
          placements and services for each individual moving out of their  
          respective developmental center prior to closure.  Closure of  
          the Agnews Developmental Center was announced as part of the  
                                                                  Governor's January 2003 Budget proposal, and the plan was  
          presented in January of 2005.  The last consumer was moved out  
          of Agnews in March 2009.  The Lanterman DC closure was announced  
          in January 2010, the plan was presented that April and the last  
          person moved out in December 2014.  In both of those closure  
          processes, the Administration and the Legislature developed a  
          number of new placement types and services, such as homes to  
          care for medically fragile residents, a clinic that remained on  








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          the developmental center campus for movers to bridge needed  
          medical and dental treatment in their new homes, as well as  
          other innovative services.  The prior closure processes for the  
          Stockton and Camarillo Developmental Centers where much quicker,  
          taking less than one year for each.  However, in both of those  
          cases, the vast majority of residents were quickly moved to  
          other developmental centers, which is no longer an option.


          In its current version, this bill does not provide any  
          indication of how the numerous challenges to transitioning  
          residents to the community will be mitigated.  While it  
          specifies that 50% of the proceeds from leasing both the Sonoma  
          and Fairview DC properties after they are closed will be  
          available for regional center purchase of services in the  
          community, the language provides no direction as to how those  
          funds will be used to uphold resident health and safety and  
          ensure the community-based placement and service alternatives  
          are appropriate for each individual consumer.  Current law sets  
          forth requirements for such details to be included in a plan  
          submitted by DDS when DDS initiates a DC closure; however, those  
          same plan requirements are not automatically triggered when the  
          proposal for a DC closure is generated through a legislative  
          measure.  Should the Committee wish to pass this bill, the  
          author should explain how the bill will be amended as it moves  
          forward to address the items included in a DDS closure plan, and  
          how it will ensure the additional dollars going to the community  
          will be used to mitigate the numerous challenges to  
          transitioning DC residents, which include the following issues:

             a)   About one-third of DC residents have complex medical  
               needs and are receiving nursing facility-level care for  
               multiple medical conditions, but the availability of "SB  
               962" homes (Adult Residential Facilities for Persons with  
               Special Healthcare Needs) in which they can receive the  
               individualized attention and medical care they need does  
               not meet the current demand; 










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             b)   Many DC residents also need a higher level of support  
               than what currently exists in the community due to their  
               high behavioral needs.  While Enhanced Behavioral Support  
               Homes and Community Crisis Homes were established as models  
               to meet these needs, development is still underway for  
               these placement types, and the need for intensive,  
               wrap-around therapeutic behavioral services may exceed the  
               approved projects; 



             c)   The Developmental Center Task Force recommended that the  
               state should operate 15-bed acute crisis facilities like  
               the program at Fairview DC at least in the Northern and  
               Southern part of the state.  While these facilities have  
               now been opened at Fairview and Sonoma DCs, this calls for  
               closure of those facilities without any indication that  
               those crisis units would be maintained; and



             d)   The Task Force also recommended recognizing and  
               preserving existing specialty services available on the  
               Developmental Center campuses, such as the shoemaking shops  
               at Sonoma and Fairview DCs, the wheelchair specialty clinic  
               at Sonoma DC and the availability of medical professionals  
               with vast experience in serving individuals with complex  
               developmental and medical needs.  These services include  
               specialized sedation dentistry services, which are often  
               not available outside of the Developmental Centers.
          PRIOR LEGISLATION:


          SB 1344 (Evans) 2014, would have required the state to establish  
          the Sonoma Developmental Center as the center of last resort for  
          Northern California, and would have required DDS to confer and  
          cooperate with the County of Sonoma to develop a detailed action  
          plan, as specified, and to ensure the inclusion and  








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          participation of certain community entities in developing the  
          action plan.  Died in the Senate Appropriations Committee.


          SB 1428 (Evans) 2014, would have required that, prior to the  
          development of any plan for the sale, lease, transfer, or major  
          change of use of any portion of the Sonoma DC, DDS and the  
          Department of General Services confer and cooperate with public  
          and private entities in the development of an improvement and  
          redevelopment plan for the center.  The bill would have  
          authorized the plan to contain specific elements for residences,  
          the wildlife habitat corridor and public recreational  
          facilities.  Died in the Senate Appropriations Committee.


          AB 2349 (Yamada) 2014, would have established the Office of  
          Community Care Coordination within DDS, located at Sonoma DC,  
          and would have required the office to develop a plan, on or  
          before January 1, 2016, that addresses, among other things, the  
          operation of at least two acute crisis clinics.  Died in the  
          Assembly Appropriations Committee.


          AB 89 (Budget and Fiscal Review) Chapter 25, Statutes of 2013,  
          required the Secretary of the Health and Human Services Agency  
          to submit a master plan for the future of DCs and subsequent  
          plan for individuals living in those centers. 


          AB 1472 (Budget and Fiscal Review) Chapter 25, Statutes of 2012,  
          included a moratorium for new admissions to the DCs, with  
          limited exception, limitations on the use of locked mental  
          health facilities and out-of-state placements, and provisions to  
          strengthen the capacity of the community to serve individuals  
          with challenging needs including the creation of a statewide  
          Specialized Resource Service.


          SB 410 (Thompson) Chapter 513, Statutes of 1995, established the  








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          procedures for closing a developmental center.


           DOUBLE REFERRAL  .  This bill has been double-referred.  Should  
          this bill pass out of this committee, it will be referred to the  
          Assembly Committee on Accountability and Administrative Review.

          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Disability Services Association (CDSA)


          Futures Explored, Inc.


          NorCal Tea Party




          Opposition


          California Statewide Law Enforcement Association 


          Sonoma County Board of Supervisors




          Analysis Prepared by:Myesha Jackson / HUM. S. / (916) 319-2089









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