CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Concurrent Resolution No. 77Introduced by Assembly Members Lackey and Mathis(Coauthors: Assembly Members Brough, Harper, Kiley, and Steinorth)April 26, 2017 Relative to public social services. LEGISLATIVE COUNSEL'S DIGESTACR 77, as introduced, Lackey. Developmental centers.This measure would express the Legislatures support for reinvesting revenues and cost savings from the closure, sale, and reuse of developmental centers into the community of persons with developmental disabilities, including through creation of a self-sustaining income mechanism to support persons with developmental disabilities and the deposit of certain moneys into the Department of Developmental Services Trust Fund. The measure would request that the Department of General Services cease the sale of developmental centers until the Legislature can determine how the sale of developmental centers can benefit persons with developmental disabilities, as specified. The measure would express the Legislatures intent that all moneys in the Department of Developmental Services Trust Fund should be allocated to the State Department of Developmental Services for the support of programs, services, and providers benefiting the community of persons with developmental disabilities and that moneys in the Department of Developmental Services Trust Fund should not revert to the General Fund.Digest Key Fiscal Committee: YES Bill TextWHEREAS, A state hospital under the jurisdiction of the State Department of Developmental Services (DDS) is known as a developmental center; andWHEREAS, Existing law requires DDS to allocate funds to private, nonprofit entities known as regional centers, which are required to provide or arrange for the provision of services and support for persons with developmental disabilities; andWHEREAS, Existing law requires the closure of the three remaining developmental centers no later than 2021; andWHEREAS, Existing law requires DDS to comply with procedural requirements when closing a developmental center, including submitting a detailed plan to the Legislature and holding at least one public hearing; andWHEREAS, Current practice dictates that any cost savings realized through the closure of a developmental center benefit the General Fund, and that those savings not flow to regional center programs to help serve persons with developmental disabilities; andWHEREAS, The Department of General Services actions regarding previously closed developmental centers do not indicate that it is a priority of the department to consider a developmental center propertys potential revenue-generating opportunities that would benefit the community of persons with developmental disabilities displaced after a propertys closure; andWHEREAS, The average budgeted cost to serve a client in a developmental center during the 201718 budget year is expected to be approximately $700,000 per person; andWHEREAS, In 2015, the Legislative Analysts Office found the average cost to deliver services to a client with a similar acuity of needs through the regional center system is between $75,000 and $300,000 per year; andWHEREAS, Current funding levels at developmental centers are based in part on a unit staffing system, whereby a certain number of patients are served by a set number of staff; andWHEREAS, A portion of the site at Fairview Developmental Center has been transformed into Harbor Village Apartments, a mixed-use housing project that has stayed within the DDS system. As DDSs income from Harbor Village grows, DDS may use the money to support regional centers and purchase services for persons with developmental disabilities; andWHEREAS, The investments made to support the community of persons with developmental disabilities through the managed care organization bill package chaptered in 2016 were merely a good start to bring fiscal stability to the developmental center and regional center programs that allow persons with developmental disabilities to lead lives that maximize their potential opportunities and lead lives of dignity; now, therefore, be itResolved by the Assembly of the State of California, the Senate thereof concurring, That the Legislature intends that the proceeds from the sale of developmental center properties, the cost difference between services provided to a client in a developmental center and services provided to a client in a regional center, and the revenues generated from the reuse or continued innovative use of developmental center properties, such as that of Harbor Village, should continue to support the community of persons with developmental disabilities; and be it furtherResolved, That the Legislature requests the Department of General Services cease further liquidation of the remaining three developmental centers until the Legislature can establish a working group to determine how the sale of those properties can be used for the maximum benefit of the community of persons with developmental disabilities without violating the Constitutions requirements relating to the disposition of surplus properties; and be it furtherResolved, That the Legislature encourages the creation of a self-sustaining income mechanism to support persons with developmental disabilities; and be it furtherResolved, That when a unit at a developmental center has transferred out a sufficient number of clients to shut down, the Legislature supports depositing the funds that would have been used to pay the units staff into the Department of Developmental Services Trust Fund (DDSTF), created in the State Treasury by Section 14670.36 of the Government Code; and be it furtherResolved, That if any income from a developmental center property cannot be immediately utilized to support that property or the community of persons with developmental disabilities at that property, the Legislature supports depositing that income into the DDSTF; and be it further Resolved, That it is the intent of the Legislature that all moneys in the DDSTF should be allocated in the ordinary course of budgeting by the Legislature, but should only be used for the support of programs, services, and providers, who care for, house, employ, and otherwise enrich the lives of persons with developmental disabilities in California; and be it furtherResolved, That it is the intent of the Legislature that the moneys in the DDSTF should never revert to the General Fund. This intent should supersede Sections 14670.35 and 14670.36 of the Government Code, which allow for funds to revert from the DDSTF to the General Fund in some cases; and be it furtherResolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the Director of Developmental Services, to the Director of General Services, and to the author for appropriate distribution.
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Concurrent Resolution No. 77Introduced by Assembly Members Lackey and Mathis(Coauthors: Assembly Members Brough, Harper, Kiley, and Steinorth)April 26, 2017 Relative to public social services. LEGISLATIVE COUNSEL'S DIGESTACR 77, as introduced, Lackey. Developmental centers.This measure would express the Legislatures support for reinvesting revenues and cost savings from the closure, sale, and reuse of developmental centers into the community of persons with developmental disabilities, including through creation of a self-sustaining income mechanism to support persons with developmental disabilities and the deposit of certain moneys into the Department of Developmental Services Trust Fund. The measure would request that the Department of General Services cease the sale of developmental centers until the Legislature can determine how the sale of developmental centers can benefit persons with developmental disabilities, as specified. The measure would express the Legislatures intent that all moneys in the Department of Developmental Services Trust Fund should be allocated to the State Department of Developmental Services for the support of programs, services, and providers benefiting the community of persons with developmental disabilities and that moneys in the Department of Developmental Services Trust Fund should not revert to the General Fund.Digest Key Fiscal Committee: YES
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Concurrent Resolution No. 77
Introduced by Assembly Members Lackey and Mathis(Coauthors: Assembly Members Brough, Harper, Kiley, and Steinorth)April 26, 2017
Introduced by Assembly Members Lackey and Mathis(Coauthors: Assembly Members Brough, Harper, Kiley, and Steinorth)
April 26, 2017
Relative to public social services.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
ACR 77, as introduced, Lackey. Developmental centers.
This measure would express the Legislatures support for reinvesting revenues and cost savings from the closure, sale, and reuse of developmental centers into the community of persons with developmental disabilities, including through creation of a self-sustaining income mechanism to support persons with developmental disabilities and the deposit of certain moneys into the Department of Developmental Services Trust Fund. The measure would request that the Department of General Services cease the sale of developmental centers until the Legislature can determine how the sale of developmental centers can benefit persons with developmental disabilities, as specified. The measure would express the Legislatures intent that all moneys in the Department of Developmental Services Trust Fund should be allocated to the State Department of Developmental Services for the support of programs, services, and providers benefiting the community of persons with developmental disabilities and that moneys in the Department of Developmental Services Trust Fund should not revert to the General Fund.
This measure would express the Legislatures support for reinvesting revenues and cost savings from the closure, sale, and reuse of developmental centers into the community of persons with developmental disabilities, including through creation of a self-sustaining income mechanism to support persons with developmental disabilities and the deposit of certain moneys into the Department of Developmental Services Trust Fund. The measure would request that the Department of General Services cease the sale of developmental centers until the Legislature can determine how the sale of developmental centers can benefit persons with developmental disabilities, as specified. The measure would express the Legislatures intent that all moneys in the Department of Developmental Services Trust Fund should be allocated to the State Department of Developmental Services for the support of programs, services, and providers benefiting the community of persons with developmental disabilities and that moneys in the Department of Developmental Services Trust Fund should not revert to the General Fund.
## Digest Key
## Bill Text
WHEREAS, A state hospital under the jurisdiction of the State Department of Developmental Services (DDS) is known as a developmental center; and
WHEREAS, Existing law requires DDS to allocate funds to private, nonprofit entities known as regional centers, which are required to provide or arrange for the provision of services and support for persons with developmental disabilities; and
WHEREAS, Existing law requires the closure of the three remaining developmental centers no later than 2021; and
WHEREAS, Existing law requires DDS to comply with procedural requirements when closing a developmental center, including submitting a detailed plan to the Legislature and holding at least one public hearing; and
WHEREAS, Current practice dictates that any cost savings realized through the closure of a developmental center benefit the General Fund, and that those savings not flow to regional center programs to help serve persons with developmental disabilities; and
WHEREAS, The Department of General Services actions regarding previously closed developmental centers do not indicate that it is a priority of the department to consider a developmental center propertys potential revenue-generating opportunities that would benefit the community of persons with developmental disabilities displaced after a propertys closure; and
WHEREAS, The average budgeted cost to serve a client in a developmental center during the 201718 budget year is expected to be approximately $700,000 per person; and
WHEREAS, In 2015, the Legislative Analysts Office found the average cost to deliver services to a client with a similar acuity of needs through the regional center system is between $75,000 and $300,000 per year; and
WHEREAS, Current funding levels at developmental centers are based in part on a unit staffing system, whereby a certain number of patients are served by a set number of staff; and
WHEREAS, A portion of the site at Fairview Developmental Center has been transformed into Harbor Village Apartments, a mixed-use housing project that has stayed within the DDS system. As DDSs income from Harbor Village grows, DDS may use the money to support regional centers and purchase services for persons with developmental disabilities; and
WHEREAS, The investments made to support the community of persons with developmental disabilities through the managed care organization bill package chaptered in 2016 were merely a good start to bring fiscal stability to the developmental center and regional center programs that allow persons with developmental disabilities to lead lives that maximize their potential opportunities and lead lives of dignity; now, therefore, be it
Resolved by the Assembly of the State of California, the Senate thereof concurring, That the Legislature intends that the proceeds from the sale of developmental center properties, the cost difference between services provided to a client in a developmental center and services provided to a client in a regional center, and the revenues generated from the reuse or continued innovative use of developmental center properties, such as that of Harbor Village, should continue to support the community of persons with developmental disabilities; and be it further
Resolved, That the Legislature requests the Department of General Services cease further liquidation of the remaining three developmental centers until the Legislature can establish a working group to determine how the sale of those properties can be used for the maximum benefit of the community of persons with developmental disabilities without violating the Constitutions requirements relating to the disposition of surplus properties; and be it further
Resolved, That the Legislature encourages the creation of a self-sustaining income mechanism to support persons with developmental disabilities; and be it further
Resolved, That when a unit at a developmental center has transferred out a sufficient number of clients to shut down, the Legislature supports depositing the funds that would have been used to pay the units staff into the Department of Developmental Services Trust Fund (DDSTF), created in the State Treasury by Section 14670.36 of the Government Code; and be it further
Resolved, That if any income from a developmental center property cannot be immediately utilized to support that property or the community of persons with developmental disabilities at that property, the Legislature supports depositing that income into the DDSTF; and be it further
Resolved, That it is the intent of the Legislature that all moneys in the DDSTF should be allocated in the ordinary course of budgeting by the Legislature, but should only be used for the support of programs, services, and providers, who care for, house, employ, and otherwise enrich the lives of persons with developmental disabilities in California; and be it further
Resolved, That it is the intent of the Legislature that the moneys in the DDSTF should never revert to the General Fund. This intent should supersede Sections 14670.35 and 14670.36 of the Government Code, which allow for funds to revert from the DDSTF to the General Fund in some cases; and be it further
Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the Director of Developmental Services, to the Director of General Services, and to the author for appropriate distribution.