SENATE BILL REPORT

SB 5516

BYSenators Wojahn, Warnke, Johnson, Niemi, Bauer, Rasmussen and West

Regarding the disabilities land trust.

Senate Committee on Health Care & Corrections

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

Majority Report:  That Substitute Senate Bill No. 5516 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

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

Senate Staff:Don Sloma (786-7414)

                  February 24, 1989

Senate Committee on Ways & Means

Senate Hearing Date(s):March 2, 1989; March 6, 1989

Majority Report:  That Substitute Senate Bill No. 5516 as recommended by Committee on Health Care & Corrections be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Gaspard, Hayner, Johnson, Lee, Newhouse, Niemi, Owen, Saling, Smith, Talmadge, Warnke, Williams, Wojahn.

Senate Staff:Randy Hodgins (786-7438)

                  March 10, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 6, 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.  It is not governed by state law, but is administered by the Department of Natural Resources.  These timber and farm lands presently generate some $2 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 and developmentally disabled persons must be administered in a manner that makes funds available for their support.

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 and for 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.

The disabilities trust account is created within the Washington housing trust fund.  The principal of the account must be the fair market value of the rental, lease, or sale of lands acquired by grant purchase, or donation for care of persons who are mentally ill or developmentally disabled.  Revenues received from the lease or sale of such lands must be deposited in the account.

The disabilities trust 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 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 SUBSTITUTE:

Land and facilities used for juvenile offenders must be inventoried and added to the corpus of the disabilities land trust.

Separate accounts are created for (a) the corpus of the trust and (b) the income produced by the trust.

The corpus of the trust is clarified to include the land or property dedicated to juvenile offenders, the mentally ill or the developmentally disabled as well as the proceeds from its sale.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: HEALTH CARE & CORRECTIONS:  Jan Wolcott, Pierce County Parks and Recreation (con); Eleanor Owen, Citizen's Guild of Washington (pro); Doug Stevenson, King County Council (pro); Nancy Caldwell, Benton-Franklin Counties (pro)

Senate Committee - Testified: WAYS & MEANS:  Senator R. Lorraine Wojahn (pro)