AN ACT Relating to the disabilities land trust; amending RCW 43.185.110 and 43.185.070; adding new sections to chapter 43.30 RCW; creating a new section; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that Article XIII of the Constitution of the state of Washington requires the state to foster and support services for persons who are mentally ill or developmentally disabled, and youth who are blind or deaf or otherwise disabled. The state is now funding community-based services for these citizens.

The legislature also finds that there are hundreds of acres of land dedicated to providing care for these citizens, including three hundred seventy-four acres of the Fort Steilacoom Military Reservation granted to the state by the United States "for the use and purpose of an asylum for the insane and for no other purpose." Over the years hundreds of acres of additional land have been donated and purchased at public expense to provide necessary resources for these citizens.

Therefore, the purposes of this act are:

(1) To implement the intent of the congress and the legislature that the land granted and other lands acquired by the state for persons who are mentally ill or developmentally disabled, or youth who are blind or deaf or otherwise disabled be administered in a manner that makes funds available for the support of the programs and facilities designed for them;

(2) To the extent practicable, to eliminate the need for costly, time-consuming and divisive litigation over the state's management of such lands;

(3) To ensure that the attention of the public and the government is focused on mental health and other programs, as contemplated by the congress and not on issues relating to the management of the land; and

(4) To establish a land trust through identification of these lands, the capital assets, and the fair market rental, lease, or sale value of these lands as the principal of the trust and to require management of the trust in a manner that shall not deplete the trust principal.

NEW SECTION. Sec. 2. A new section is added to chapter 43.30 RCW to read as follows:

(1) By September 30, 1990, the legislative budget committee shall designate not less than one thousand five hundred acres of land or property that is no longer needed for state-provided residential care and treatment for persons who are mentally ill or developmentally disabled or youth who are blind or deaf or otherwise disabled.

(2) The department of social and health services and other state agencies that operate institutions for disabled persons shall identify not less than one thousand five hundred acres of land that are no longer needed for state-provided residential care and treatment. Each agency shall submit for review by the legislative budget committee a report that describes all lands leased, owned, or managed by the agency that were acquired to care for persons who are disabled. The report shall describe all lands designated as necessary for institutional purposes and all lands designated as surplus for transfer to the disabilities land trust, and the methodology used to designate land as surplus. The reports shall be submitted no later than July 1, 1990, and similar reports shall be submitted every five yeas thereafter.

(3) The reports shall include a review of land and facilities including at least: Northern State Hospital, Fircrest School, Rainier School, F. H. Morgan Center, Yakima Valley School, Lakeland Village, Interlake School, Eastern State Hospital, Western State Hospital, Echo Glen Center, Maple Lane School, Green Hill School, Mission Creek Youth Camp, Naselle Youth Camp, State Public Health Labs, Regional Laboratory, Oakridge Group Home, Canyon View Group Home, Woodinville Group Home, Sunrise Group Home, Twin Rivers Group Home, Ridgeview Group Home, Parke Creek Group Home, and State Residential Training Sites in Pasco, Richland, Kennewick, Ft. Wright, and Moses Lake.

(4) No land, property, or facilities covered under this section may be sold, transferred, exchanged, leased, or otherwise disposed of before September 30, 1990, except for emergencies directly related to the operation of state institutions.

NEW SECTION. Sec. 3. A new section is added to chapter 43.30 RCW to read as follows:

(1) By November 1, 1990, lands designated as surplus by the legislative budget committee under section 2 of this act shall be transferred to the corpus of the charitable, educational, penal, and reform institution trust and separately held in the disabilities land trust. Proceeds received from the sale of such lands shall be retained in the trust. The corpus of this trust shall not be depleted. Surplus cash available in this trust is to be invested in the same manner as the common school permanent fund.

(2) The disabilities land trust shall be managed by the department of natural resources to maximize the income potential while preserving the asset base, unless parcels are suitable for providing housing or residential support for persons who are mentally ill or developmentally disabled or youth who are blind or otherwise disabled as determined by the disabilities land trust board in which case the land shall be made available for that use.

(3) The department of natural resources shall manage the disabilities land trust. Management of the land in this trust shall not be limited by the provisions of chapter 79.01 RCW which relate to sales of trust lands but shall be limited by constitutional provisions regarding the management of public trust lands. The terms and conditions of sale or exchange of land held in the disabilities land trust shall be subject to the approval of the board of natural resources.

A plan for management of the property placed in the trust pursuant to this section shall be adopted by the department of natural resources after consultation with the department of social and health services.

(a) The plan shall be compatible with the needs of adjacent institutions.

(b) The plan may be modified as necessary to ensure the quality of future management. Additional property may be added as it becomes available.

(c) The plan shall include a review of the income-producing potential of the lands, and a process for converting the asset base of the disabilities land trust to maximize its income-producing potential.

(d) The department of natural resources shall retain the actual cost of management of the disabilities land trust.

(4) Income from the disabilities land trust shall be placed in a separate account within the Washington housing trust fund hereby created and entitled the disabilities land trust income account. The disabilities land trust income account shall be administered according to chapter 43.185 RCW for the purpose of providing housing and residential support for persons who are mentally ill or developmentally disabled, or youth who are blind or deaf or otherwise disabled, consistent with recommendations of the disabilities land trust board.

(5) No less than half of the income from the charitable, educational, penal and reform institutions trust, not including income from the disabilities land trust, shall be appropriated to the disabilities land trust income account within the Washington housing trust fund by the legislature for the purpose of providing housing or residential support services, excluding repair and renovation of state institutions, for persons who are mentally ill, developmentally disabled, or youth who are blind or deaf or otherwise disabled.

Sec. 4. Section 3, chapter 513, Laws of 1987 and RCW 43.185.110 are each amended to read as follows:

(1) The director shall prepare an annual report and shall send copies to the chair of the house of representatives committee on housing, the chair of the senate committee on commerce and labor, and one copy to the staff of each committee that summarizes the housing trust fund's income, grants and operating expenses, implementation of its program, and any problems arising in the administration thereof. The director shall promptly appoint a low-income housing assistance advisory committee composed of a representative from each of the following groups: Apartment owners, realtors, mortgage lending or servicing institutions, private nonprofit housing assistance programs, tenant associations, the secretary of social and health services, advocacy or consumer groups for the developmentally disabled, advocacy or consumers for the mentally ill, and public housing assistance programs. The advisory group shall advise the director on housing needs in this state, operational aspects of the grant and loan program or revenue collection programs established by this chapter, and implementation of the policy and goals of this chapter.

(2) The director shall appoint a disabilities trust board who shall make determinations regarding expenditures from the disabilities land trust income account according to section 3 of this act. The disabilities trust board shall be composed of:

(a) The secretary of the department of social and health services or the secretary's designee;

(b) A representative from an advocacy or consumer group for the developmentally disabled;

(d) One representative from a class AA county;

(e) One representative from a class A or smaller county;

(f) A realtor;

(g) A representative from a nonprofit housing assistance program; and

(h) A representative from a public housing assistance program.

(3) The director, with the advice of the low-income housing assistance advisory committee and others, shall periodically identify state and federal lands or facilities within the state which may have been designated or may be about to be designated surplus. The director and the department of natural resources shall make all reasonable efforts to acquire such lands or facilities by grant, gift, or other means and shall place any land or facilities acquired in the disabilities land trust established under section 3 of this act.

Sec. 5. Section 8, chapter 298, Laws of 1986 as amended by section 1, chapter 286, Laws of 1988 and RCW 43.185.070 are each amended to read as follows:

(1) During each calendar year in which funds are available for use by the department from the housing trust fund, as prescribed in RCW 43.185.030, the department shall announce to all known interested parties, and through major media throughout the state, a grant and loan application period of at least ninety days' duration. This announcement shall be made as often as the director deems appropriate for proper utilization of resources, but at least twice annually. The department shall then promptly grant as many applications as will utilize available funds less appropriate administrative costs of the department, ((~~not to exceed thirty-seven thousand five hundred dollars in the fiscal year ending June 30, 1988, and seventy-five thousand dollars in the fiscal year ending June 30, 1989, and~~)) not to exceed five percent of annual revenues to the fund ((~~thereafter~~)).

(2) The department shall give first priority to applications for projects and activities which utilize existing privately owned housing stock including privately owned housing stock purchased by nonprofit public development authorities. Such projects and activities shall be evaluated under subsection (3) of this section. Second priority shall be given to activities and projects which utilize existing publicly owned housing stock. Such projects and activities shall be evaluated under subsection (3) of this section.

(3) The department shall give preference for applications based on the following criteria:

(a) The degree of leveraging of other funds that will occur;

(b) Recipient contributions to total project costs, including allied contributions from other sources such as professional, craft and trade services, and lender interest rate subsidies;

(d) Projects that encourage ownership, management, and other project-related responsibility opportunities;

(e) Projects that demonstrate a strong probability of serving the original target group or income level for a period of at least fifteen years;

(f) The applicant has the demonstrated ability, stability and resources to implement the project;

(g) Projects which demonstrate serving the greatest need; ((~~and~~))

(h) Projects that provide housing for persons and families with the lowest incomes;

(i) Projects or services for the disabled shall be consistent with the recommendations of the developmental disabilities planning council; and

(j) Projects for the mentally ill shall be consistent with plans developed by counties or regional residential support networks pursuant to chapter 71.24 RCW as now or hereafter amended.

NEW SECTION. Sec. 6. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.