SENATE BILL REPORT

ESSB 5516

BYSenate Committee on Health Care & Corrections (originally sponsored by Senators Wojahn, Warnke, Johnson, Niemi, Bauer, Rasmussen and West)

Regarding the disabilities land trust.

Senate Committee on Health & Long-Term Care

Senate Hearing Date(s):February 9, 1989; February 23, 1989; January 9, 1990; January 10, 1990

Majority Report:  That Second Substitute Senate Bill No. 5516 be substituted therefor, and the second substitute bill do pass.

      Signed by Senators West, Chairman; Smith, Vice Chairman; Johnson, Kreidler, Niemi, Wojahn.

Senate Staff:Don Sloma (786-7414)

                  January 11, 1990

AS REPORTED BY COMMITTEE ON HEALTH & LONG-TERM CARE, JANUARY 10, 1990

BACKGROUND:

In 1874, a 374 acre parcel at Fort Steilacoom was donated to the Territory of Washington "for the use and purpose of an asylum for the insane of said territory and for no other purpose."  This land became the site of the territory's first mental institution -- Western State Hospital.

Since that time, the state has purchased or has been given thousands of acres of additional land for purposes related to the care of the mentally ill, the developmentally disabled and others.  The largest asset is 200,000 acres given to the state by the federal government at the time of statehood.  It is known as the Charitable, Educational, Penal and Reformatory Institution Trust.  Only 73,000 acres remain in the trust which is administered by the Department of Natural Resources.  These timber and farm lands presently generate some $2 million to $4 million per year which is used to finance various capital expenditures in the Department of Social and Health Services (DSHS), Department of Corrections, community colleges and other agencies.  Other land is managed by DSHS, the Department of General Administration or the Department of Natural Resources.  DSHS alone owns 3,778 acres.  On some of the land, state hospitals, habilitation centers for the developmentally disabled and other DSHS facilities operate.  Hundreds of acres are unused, or are leased at nominal rents for parks, golf courses and other public purposes.

During its interim study on residential care for the mentally ill, the Committee on Health Care and Corrections learned that approximately 304 acres of the original land donation to the Territory of Washington for Western State Hospital was about to be given to Pierce County for use as a park.  The land has been leased to the county for that purpose for some time.

SUMMARY:

Land granted or acquired by the state for mentally ill, or developmentally disabled persons or juvenile offenders must be administered in a manner that makes funds available for their support.

By December 15, 1989, the Office of Financial Management (OFM) must coordinate the efforts of other state agencies in completing an inventory and accounting of all lands and other capital assets ever acquired or dedicated for the care of blind or deaf or otherwise disabled youth, juvenile offenders and persons who are mentally ill or developmentally disabled.

The OFM must contract with an independent consultant to identify strategies for the more aggressive management of these lands and facilities to maximize returns to the state.

On July 1, 1990, the disabilities trust principal account is created within the state treasury.  The account must include the land or other capital assets or proceeds from the sale of lands acquired by grant purchase, or donation for care of persons who are juvenile offenders, mentally ill or developmentally disabled. 

No land or other capital assets as described in the act may be sold, given, traded or encumbered beyond July 30, 1991 without legislative approval, except for state charitable, educational, penal and reformatory institution trust lands.

The disabilities trust principal account must be managed as aggressively as possible to preserve the asset base, to provide housing for developmentally disabled and mentally ill persons, and to maximize income.

The disabilities trust income account is created in the state treasury.  The account must be administered according to provisions governing the housing trust fund.  Funds from lease, rental or investment of trust assets must be deposited in the account for the purpose of providing housing and residential support for juvenile offenders, the developmentally disabled and the mentally ill.

The Director of the Department of Community Development must add the Secretary of Social and Health Services or a designee, an advocate or consumer of services for the developmentally disabled, an advocate or consumer of services for the mentally ill, and two county representatives to the low-income housing assistance advisory committee when the committee is considering matters regarding the disabilities trust account.

In granting applications for use of funds from the housing trust fund, the Director of Community Development must give preference to projects for the developmentally disabled which are consistent with the recommendations of the Developmental Disabilities Planning Council, and for the mentally ill from counties or regional residential support networks pursuant to Chapter 71.24 RCW.

EFFECT OF PROPOSED SECOND SUBSTITUTE:

All existing language is stricken and replaced with language which would require the following.

The Department of Social and Health Services and other state agencies operating institutions for the disabled must review land and facilities which they use to identify no less than 1500 acres of land that is surplus to their needs by July 1, 1990. 

By September 30, 1990, the Legislative Budget Committee must designate not less than 1500 acres of land from these reviews which must be placed in a separate account within the charitable, educational, penal and reformatory institutions trust, to be known as the disabilities land trust.

The Department of Natural Resources (DNR) must manage the disabilities land trust to maximize income while preserving the asset base, or to provide housing for persons who are mentally ill, developmentally disabled, or youth who are blind or deaf or otherwise disabled, if it is determined that the land can be used for this purpose.  DNR must develop a management plan for the disabilities trust lands after consultation with DSHS.  The plan must be compatible with the needs of adjacent institutions and must include a review of the income producing potential of the trust lands and a process for converting the trust lands to maximize income potential.  DNR must retain the actual cost of managing the trust from the income it produces.

Income from the disabilities land trust must be deposited into a separate account within the Washington housing trust fund called the disabilities land trust income account and must be administered according to Chapter 43.185 RCW consistent with the recommendations of the disabilities land trust board.

No less than one half of the income from the charitable, educational, penal and reformatory institutions land trust not including income from the disabilities land trust must be appropriated to the separate disabilities land trust income account within the Washington housing trust fund for the purposes of providing housing or residential supports for persons who are mentally ill, developmentally disabled, or youth who are blind or deaf or otherwise disabled.  Such purposes may not include repair and renovation of state institutions.

The Low Income Housing Advisory Committee is expanded to include the Secretary of Social and Health Services, one advocacy or consumer representative for the mentally ill, and one such representative for the developmentally disabled.  The Director of the Department of Community Development must appoint a disabilities land trust board to make determinations regarding expenditures from the disabilities land trust income account.  The board's composition is specified.

Projects or services for the disabled must be consistent with recommendations of the Developmental Disabilities Planning Council.  Projects and services for the mentally ill must be consistent with plans developed by counties or regional support networks pursuant to Chapter 71.24 RCW.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Eleanor Owen, W/AMI; Pat Harper, DNR (pro); Mike Piper, DCD; Jeff Larsen, Washington Assembly for Citizens with Disabilities (pro); Thelma Struck, DSHS (pro); Pat Thibaudeau, Washington Community Mental Health (pro)