BILL ANALYSIS �
Bill No: SB
1392
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
SB 1392 Author: Pavley
As Amended: April 9, 2012
Hearing Date: April 24, 2012
Consultant: Paul Donahue
SUBJECT
Leasing of specified developmental centers
DESCRIPTION
This bill provides that if any of seven<1> specified
developmental centers no longer meets the needs of the
state for directly serving people with developmental
disabilities, the real property within the grounds of the
developmental center shall be made available for lease by
the state.
The real property shall be leased in order to generate
revenue for deposit into the Californians with
Developmental Disabilities Fund, which is created by the
bill.
Upon legislative appropriation, moneys in the Fund would be
available to the Department of Developmental Services (DDS)
to serve persons with developmental disabilities, subject
to existing statutes governing DDS approvals of specified
regional center housing leases.
EXISTING LAW
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<1> The seven facilities: Agnews State Hospital, Camarillo
State Hospital, Fairview State Hospital, Lanterman State
Hospital, Porterville State Hospital, Sonoma State
Hospital, or Stockton State Hospital
SB 1392 (Pavley) continued
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1)Establishes several developmental centers within the
jurisdiction of the DDS.
2)Authorizes the Department of General Services (DGS) to
dispose of state property that is determined to be
surplus, subject to authorization by the Legislature.
3)The California Constitution specifies that the proceeds
from the sale of surplus state property be used to pay
the principal and interest on bonds issued pursuant to
the Economic Recovery Bond Act until the principal and
interest on those bonds are fully paid, after which these
proceeds are required to be deposited into the Special
Fund for Economic Uncertainties.
4)Requires the net proceeds from any real property
disposition be paid into the Deficit Recovery Bond
Retirement Sinking Fund Subaccount, a continuously
appropriated fund, until the bonds issued pursuant to the
Economic Recovery Bond Act are retired.
BACKGROUND
1)Author's purpose : The author states that, as state-owned
and operated Developmental Centers no longer meet the
needs of the state for directly serving persons with
disabilities, the residents move to various
community-based programs better designed to meet their
needs and help them achieve their goals. Too often the
resources to pay for these services, housing or support
must come from already stressed existing resources.
The author proposes that Developmental Center property
continue to be made available as a funding stream by
leasing, rather than selling, with the revenue generated
deposited into the Californians with Developmental
Disabilities Fund, managed by the DDS.
The author notes that this bill does not propose the
closure of any State Developmental Center. The intent is
to preserve the economic value of the real property at a
developmental center and provide the state with an
alternative option to liquidating the asset, without
addressing the unmet needs of former residents.
2)Leasing of developmental centers : Proposition 60A,
SB 1392 (Pavley) continued
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passed by 73% of the electorate in November 2004,
dedicates proceeds from sale of surplus state property
purchased with General Fund monies to payment of
principal and interest on Economic Recovery Bonds
approved in March 2004.<2> When those bonds are repaid,
proceeds from the sale of surplus property sales are
directed to the Special Fund for Economic Uncertainties.
If, on the other hand, a parcel of state-owned real
property is leased, the net proceeds could be used for
any purpose that the Legislature determines is
reasonable.
3)Statistical information : Currently, five state-owned
developmental centers are budgeted to serve 1,533 persons
with developmental disabilities in 2012-13. The average
cost of serving an individual in the state-owned
facilities is estimated to rise in 2012-13 to greater
than $364,000 per bed, while the average cost in the
community housing alternatives is approximately $125,000
per bed. There are now fewer than 1,600 people still
residing in the state's developmental centers.
PRIOR/RELATED LEGISLATION
SB 1681(Battin) Chapter 532, Statutes of 2008 . Requires
the state to first offer surplus state real property to
local agencies, and next, to offer the property to
nonprofit affordable housing sponsors, prior to offering
the property to private entities.
SB 900 (Denham) 2006-2006 Session . Would have repealed
provisions of law that allowed for the transfer of
state-owned real property at less than fair market value to
local agencies of property to be used for certain
recreational and low-or moderate-income housing purposes by
the local agencies. (Held on Appropriations Suspense)
SUPPORT:
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<2> Proposition 57, the Economic Recovery Bond Act of 2004,
authorized the state to sell $15 billion in long-term bonds
to pay off accumulated deficits. Proposition 57 went into
effect and was contingent upon passage of Proposition 58
(the California Balanced Budget Act), which also passed in
March 2004.
SB 1392 (Pavley) continued
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Association of Regional Center Agencies
California Disability Services Association (sponsor)
The Arc and United Cerebral Palsy in California
OPPOSE:
None on file
FISCAL COMMITTEE: Senate Appropriations Committee
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