HOUSE 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.

House Committe on Human Services

Majority Report:  Do pass with amendments.  (11)

      Signed by Representatives Bristow, Chair; Scott, Vice Chair; Moyer, Ranking Republican Member; Tate, Assistant Ranking Republican Member; Anderson, Brekke, Hargrove, Leonard, Padden, Raiter and Winsley.

House Staff:Jean Wessman (786-7132)

AS REPORTED BY COMMITTEE ON HUMAN SERVICES MARCH 30, 1989

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 75,000 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 the joint Senate and House interim study on residential care for the mentally ill, the Senate 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:

BILL AS AMENDED:  Land granted or acquired by the state for mentally ill, developmentally disabled persons, or juvenile offenders must be administered in a manner that makes funds available for those persons 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.

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 also 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.

Non-profit charitable corporations who lease, rent, or utilize donated lands or capital assets referred to in this act are exempt from the provisions of this act if they are operating at the time the act goes into effect.

AMENDED BILL COMPARED TO ENGROSSED SUBSTITUTE:  Arrangements with existing non-profit charitable corporations are exempted from the provisions of the act.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Senator Wojahn, Sponsor; and Pat Thibaudeau Washington Community Mental Health Council.

House Committee - Testified Against:      Larry Baginski, Sunflower Greenhouse and Garden Center; Jan Wolcott, Division Pierce County Department of Parks and Recreation and Community Services; Paul Donohue, Department of Social and Health Services; and Bill Julius, Capitol Budget, Director of Community College System.

House Committee - Testimony For:    These lands should be utilized for the purposes for which they were acquired.  There is a terrible shortage of residential facilities for mentally ill and developmentally disabled persons and it is not necessarily the best policy to utilize lands acquired for their support in an alternative fashion.  At a minimum, an accounting of these lands needs to be completed.

House Committee - Testimony Against:      The uses to which some of these lands have been put such as community colleges, parks and private businesses provide an equally valuable service to the local community.  This would cause a massive disruption of existing arrangements for little gain.  The Charitable Educational, Penal and Reformatory Institutions Trust is necessary for funding capital projects and should not be disturbed.