BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1392|
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THIRD READING
Bill No: SB 1392
Author: Pavley (D) and Rubio (D), et al.
Amended: 5/25/12
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMM. : 12-1, 4/24/12
AYES: Wright, Berryhill, Calderon, Cannella, Corbett, De
Le�n, Evans, Hernandez, Padilla, Walters, Wyland, Yee
NOES: Anderson
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/24/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
SUBJECT : Leasing of developmental centers property
SOURCE : California Disability Services Association
DIGEST : This bill provides that if any of seven
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 may be made available for lease by the
state, and may 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
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regional center housing leases.
ANALYSIS : Existing law:
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.
The seven facilities that are the subject of this bill are
as follows: Agnews State Hospital, Camarillo State
Hospital, Fairview State Hospital, Lanterman State
Hospital, Porterville State Hospital, Sonoma State
Hospital, or Stockton State Hospital.
Background
Leasing of developmental centers : Proposition 60A, 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. 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
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purpose that the Legislature determines is reasonable.
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.
Comments
According to the author, 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.
Prior 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) 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
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property to be used for certain recreational and low-or
moderate-income housing purposes by the local agencies.
The bill was held on the Senate Appropriations Committee
Suspense File.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Unknown revenue from leased properties.
SUPPORT : (Verified 5/25/12)
California Disability Services Association (source)
Ability First
Association of Regional Center Agencies
California Association for Health Services at Home
California Association of State Hospital Parent Councils
for the Retarded
Easter Seals Disability Services
The Arc and United Cerebral Palsy in California
OPPOSITION : (Verified 5/25/12)
California Association of Psychiatric Technicians
ARGUMENTS IN SUPPORT : The Arc and United Cerebral Palsy
in California states that, "Years of budget freezes and
cuts, even before the catastrophe that began in 2009 in
still continuing, have left people with developmental
disabilities in some cases without adequate supports and
services and in all cases worrying how much longer the
fragile service system can survive. As we close the
developmental centers, the state investment should remain
with the people they were intended to serve. The cost of
serving people in the community will be much less than in
the centers, but there needs to be some way to pay for
these less expensive services."
DLW:nl 5/25/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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