BILL ANALYSIS �
SB 1392
Page A
Date of Hearing: June 26, 2012
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Jim Beall Jr., Chair
SB 1392 (Pavley and Rubio) - As Amended: June 14, 2012
SENATE VOTE : 34-5
SUBJECT : Developmental Services
SUMMARY : Authorizes the lease of real property on the grounds
of a state developmental center (DC) determined to no longer
meet the needs of the state for directly serving persons with
developmental disabilities, and creates the Californians with
Developmental Disabilities Fund (DD Fund) for deposit of the
generated revenue. Specifically, this bill :
1)States legislative findings and declarations concerning the
state's obligation to meet the ongoing need for services and
supports of former developmental center residents.
2)Authorizes, subject to any existing lease entered into
pursuant to a statute enacted prior to January 1, 2013, the
real property on the grounds of any of seven state DCs
determined to no longer meet the state's needs for serving
persons with developmental disabilities to be leased in order
to generate revenue for deposit into the DD Fund.
3)Creates the DD Fund in the State Treasury and requires moneys
in the fund, upon appropriation by the Legislature, to be made
available to the Department of Developmental Services (DDS)
for purposes of serving people with developmental
disabilities, subject to existing statutes governing DDS
approvals of specified regional center housing leases.
4)Clarifies that this bill does not modify the requirement that,
prior to the closure of a DC, DDS submit a closure plan to the
Legislature for approval in accord with existing law (Welfare
& Institutions Code Section 4474.1).
EXISTING LAW
1)Establishes the Lanterman Developmental Disabilities Services
Act (Lanterman Act), under which the Legislature declared that
"�t]he State of California accepts a responsibility for
SB 1392
Page B
persons with developmental disabilities and an obligation to
them which it must discharge" and, further, that "�a]n array
of services and supports should be established which is
sufficiently complete to meet the needs and choices of each
person with developmental disabilities, regardless of age or
degree of disability, and at each stage of life to support
their integration into the mainstream life of the community."
Welfare & Institutions Code Section 4501.
2)Establishes DDS as the state agency with jurisdiction over
execution of the Lanterman Act, pursuant to which DDS
contracts with 21 private non-profit regional centers to
provide case management services and arrange for, or purchase,
services that meet the needs and choices of individuals with
developmental disabilities.
3)Establishes DDS as the state agency with jurisdiction over
seven state-owned and state-operated institutions, or DCs.
4)Authorizes the Department of General Services (DGS) to dispose
of state property that is determined to be surplus, subject to
authorization by the Legislature.
5)Provides, under the California Constitution, 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.
6)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.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill : The authors say that, as state-owned and
operated DCs 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
SB 1392
Page C
for these services, housing or support must come from already
stressed existing resources.
The authors point out that, under current law, when a DC no
longer meets the needs of the state and is closed, it is
declared state surplus property and is put up for sale. The
proceeds of the sales pay off state debt. However, the authors
say:
Because a full range of services and supports for the
residents who move from a state developmental center
remain the responsibility of DDS under the Lanterman
Act ? it is not accurate to say that there are no
ongoing needs. The needs must simply be met in
different and perhaps more diverse locations than is
the case with an institutional setting.
This bill would permit DC property no longer needed to directly
serve people with developmental disabilities to be leased,
rather than sold, and thereby continue to be made available as a
funding stream. The revenue generated would be deposited into
the DD Fund, created by this bill.
The authors note that this bill does not propose the closure of
any DC. The intent is to preserve the economic value of the
real property at a DC and provide the state with an alternative
option to liquidating the asset without addressing the unmet
needs of former residents.
DC population and budget : Three of the seven DCs referenced in
this bill have been closed.<1> Four remaining DCs<2> are
licensed and federally certified as Nursing Facility,
Intermediate Care Facility/Developmentally Disabled (ICF/DD) and
acute care hospitals. One smaller state-operated facility<3> is
licensed as an ICF/DD. These facilities provide an array of
services and supports for individuals who have been determined
to be in need of a secure environment, or who have special
---------------------------
<1> Stockton DC (closed in 1996), Camarillo DC (closed in 1997),
and Agnews DC (closed in March 2009, but operated an outpatient
clinic until April 2011).
<2> Fairview DC (Costa Mesa), Lanterman DC (Pomona), Porterville
DC (Porterville) and Sonoma DC (Eldridge).
<3> Canyon Springs (Cathedral City). A second smaller
state-operated ICF/DD facility (for up to 50 residents), Sierra
Vista (Yuba City), was closed in December 2009.
SB 1392
Page D
medical and/or behavioral program needs.
Currently, the five state-operated institutions are budgeted to
serve 1,533 persons with developmental disabilities in 2012-13.
The average cost of serving an individual in the state-operated
facilities is estimated to rise in 2012-13 to greater than
$364,000 per person, while the average cost in the community
housing alternatives, according to the authors, is approximately
$125,000 per person. There are now approximately 1,700 people
still residing in the state's DCs.
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.<4> 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.
California Disability Services Association (CDSA), the sponsor
of this bill, says that this bill "is an important step toward
capturing available and critical existing resources and
re-tasking them to continue to meet the needs of the very people
these resources have been used to support for decades."
"Without the proceeds from this arrangement," CDSA asserts, "the
State retains the obligation pursuant to the �Lanterman Act] to
meet the needs of these consumers. In other words, the need
continues whether the institution exists or not."
This bill applies to real property on the grounds of seven DCs,
including three that have previously closed (Agnews DC,
Camarillo DC, and Stockton DC). Although some of the property
from these three DCs has been transferred to other state
entities (e.g., the California State University system), it is
no longer used to provide services to people with developmental
disabilities. This bill would thus appear not to apply to
---------------------------
<4> 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 on passage of Proposition 58 (the California
Balanced Budget Act), which also passed in March 2004.
SB 1392
Page E
either Camarillo DC or Stockton DC. The final disposition
of-and thus application of this bill to-the Agnews DC property
may be less clear. According to the authors, half of the Agnews
DC property remains vacant, unused and unsold.
Concerns : While not opposing this bill, the California
Association of State Hospital Parent Councils for the Retarded
(CASHPCR) has a number of questions and concerns. CASHPCR says
the bill is not clear as to whether the DD Fund would be used to
benefit only people moving out of DCs or all people with
developmental disabilities. CASHPCR supports the use of funds
to benefit all consumers served by DDS. The findings and
declarations do emphasize the ongoing need for supports and
services of people moving out of developmental centers and the
ongoing obligation to meet the housing and other needs of "these
persons" under the Lanterman Act. This language, however,
simply makes the point that moving people from DCs to the
community increases the need for community resources. The
substantive provisions of this bill do not limit the use of the
lease proceeds to providing services and supports only to former
DC residents. The language broadly provides that moneys in the
DD Fund shall, upon appropriation by the Legislature, "be made
available to �DDS] for purposes of serving persons with
developmental disabilities ?." CASHPCR is also concerned that
the DDS budget may be insufficiently funded in anticipation of
revenue from the DD Fund, which may not be realized, and,
notwithstanding the explicit language of this bill, is further
concerned that the funds could be appropriated for other
purposes.
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.
REGISTERED SUPPORT / OPPOSITION :
Support
California Disability Services Association (CDSA) (sponsor)
Ability First
The Arc and United Cerebral Palsy in California
SB 1392
Page F
Association of Regional Center Agencies
California Association for Health Services at Home
California Association of Psychiatric Technicians
Easter Seals California
Opposition
None on file
Analysis Prepared by : Eric Gelber / HUM. S. / (916) 319-2089