ESSB 6760

HOUSE BILL REPORT
ESSB 6760

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Passed House - Amended:
March 7, 2008

Title: An act relating to the developmental disabilities community trust account.

Sponsors: By Senate Committee on Ways & Means (originally sponsored by Senators Regala, Zarelli, Rasmussen, Roach and Fairley).

Majority Report: Do pass. Signed by 8 members: Representatives Dickerson, Chair; Roberts, Vice Chair; Ahern, Ranking Minority Member; Walsh, Assistant Ranking Minority Member; Bailey, Darneille, McCoy and O'Brien.

Majority Report: Do pass as amended. Signed by 18 members: Representatives Fromhold, Chair; Ormsby, Vice Chair; Schual-Berke, Vice Chair; McDonald, Ranking Minority Member; Newhouse, Assistant Ranking Minority Member; Appleton, Blake, Eickmeyer, Flannigan, Hankins, Kelley, McCune, Orcutt, Pearson, Pedersen, Sells, Skinner and Smith.

Minority Report: Without recommendation. Signed by 2 members: Representatives Chase and Hasegawa.

Background:

The Division of Developmental Disabilities (DDD), within the Department of Social and Health Services (DSHS), operates five residential habilitation centers (RHCs) for qualified developmentally disabled citizens. The RHCs provide 24-hour residential housing for individuals needing institutional care. In addition, RHCs provide respite care and other specialized services to eligible individuals living in the community. The RHCs in operation are: Fircrest School, located in Shoreline; Frances Haddon Morgan Center, located in Bremerton; Lakeland Village, located in Medical Lake; Rainier School, located in Buckley; and Yakima Valley School, located in Selah.

The Developmental Disabilities Community Trust Account (Account), known as the Dan Thompson Memorial Trust Account, was established in 2005. The Account is to receive all proceeds from the use of excess property identified in the 2002 Joint Legislative Audit and Review Committee capital study at Rainier School and Lakeland Village. Income may come from the lease of land, conservation easements, sale of timber, or other activities short of the sale of property. The disposal of excess property cannot impact current residential habilitation center operations.

The Account is authorized to retain its earnings from investments. Interest on the Account can be spent on community-based services for people with developmental disabilities. The Account should not be used to replace, supplant, or reduce existing appropriations. Lands at Fircrest School are partly owned by the DSHS and partly owned by the Charitable, Educational, Penal, Reformatory Institutions Trust managed by the Department of Natural Resources.

Summary of Amended Bill:

Yakima Valley School, and Francis Haddon Morgan Center are added to the current RHCs that can have proceeds from the use of its excess property deposited into the Account. Proceeds from lease payments for the use of excess property may also be spent on community-based services for people with developmental disabilities.

A change is made to clarify what proceeds are deposited into the Account. Reference to the 2006 DSHS report is deleted.

Effective Date of Amended Bill: The bill takes effect 90 days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: (Human Services)

(In support) A long-term source of funding for family support services is necessary, and the excess property funding source is necessary to help provide more family support services to clients with developmental disabilities. It is a simple bill, and this is a simple way to help fund important services. It expands resources, and helps to create a small funding stream for services. A master plan is currently going on with the Fircrest property, and that plan would run through the Account. The plan does not consider selling any of the Fircrest property, but commercial leasing is still available. The idea is to preserve land for long-term use. The proceeds from excess land will either go into the General Fund or the Account, and the hope is that the proceeds will go into the Account.

(In support with amendment) The engrossed bill is more acceptable than the substitute bill and it is good that the engrossed bill put back in the language "short of sale of property," but there should be a reporting mechanism within the bill to track the success and use of the Account.

(Opposed) None.

Staff Summary of Public Testimony: (Capital Budget)

(In support) This is a very important bill for the community of developmentally disabled persons. The Dan Thompson Trust provides services to this community. This bill will provide more resources that can go into the Developmental Disabled Community Trust Account. There are about 10,000 individuals waiting for family support and an additional 10,000 waiting for employment services. The family support programs are low cost, high impact services. This bill adds to the resources to assist those persons who are unserved. There has not been any other needs for revenue that would go back into the Fircrest Master Plan. The bill does not affect ongoing planning or development of land or identification of excess land. These are separate processes. The bill provides a creative way to fund services that are needed for the developmentally disabled community.

(Neutral) The Department of Social and Health Services indicated there was not any intended use of the revenue from the development of the Fircrest Master Plan.

(Opposed) None.

Persons Testifying: (Human Services) (In support) Stacey Gillett and Margaret Lee Thompson, The Arc of Washington; and Ed Holen, Developmental Disability Council.

(In support with amendment) Terri Anderson, Friends of Fircrest and Voice of the Retarded.

Persons Testifying: (Capital Budget) (In support) Senator Regala, prime sponsor; Sue Elliott, Arc of Washington; Ed Holen, Development Disabilities Council; and Margaret-Lee Thompson, King County Parent Coalition for the Developmentally Disabled.

(Neutral) Chris Olsen, Department of Social and Health Services.