BILL ANALYSIS �
SB 1392
Page 1
Date of Hearing: August 8, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1392 (Pavley and Rubio) - As Amended: June 14, 2012
Policy Committee: Human
ServicesVote:6 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill shifts the revenue for 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 from the General Fund
into the newly created Californians with Developmental
Disabilities Fund (DD Fund).
FISCAL EFFECT
1)When current leases expire, this bill could divert
approximately $1.25 million per year in state revenue from the
GF to the DD Fund.
2)This bill could potentially prevent these properties from
being used for another state purpose or being identified as
surplus, thereby reducing potential surplus property sales
revenue by an unknown, but significant amount. Revenue from
surplus property sales is used to pay off the state's Economic
Recovery Bonds.
COMMENTS
1)Purpose . 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.
As state-owned and operated DCs no longer meet the needs of
the state for directly serving persons with disabilities, the
SB 1392
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residents move to various community-based programs better
designed to meet their needs and help them achieve their
goals. The authors note that often the resources to pay 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 argue that 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.
2)Developmental Centers . The following seven properties would be
subject to the requirements of this bill:
" Agnews State Hospital
" Camarillo State Hospital (CSU Channel Islands)
" Stockton State Hospital (CSU Stanislaus)
" Fairview State Hospital
" Lanterman State Hospital
" Porterville State Hospital
" Sonoma State Hospital
The Agnews property has been declared surplus and portions of
the property have already been sold. The balance is in the
process of being sold. The Camarillo and Stockton properties
were statutorily transferred to the California State
University Trustees. The remaining four properties are under
the control of DDS, are occupied, and have existing leases
with revenues going to the General Fund. There are a total of
18 leases on the properties generating approximately $1.25
million annually, on the four DDS properties and the Agnews
property.
As noted above, three of the seven DCs referenced in this bill
have been closed. Four remaining DCs are licensed and
federally certified as Nursing Facility, Intermediate Care
Facility/Developmentally Disabled (ICF/DD) and acute care
hospitals. One smaller state-operated facility is licensed as
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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 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.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081