S 2119

S‑2119.2 _____________________________________________

SUBSTITUTE SENATE BILL 6081

_____________________________________________

State of Washington 57th Legislature 2001 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senator McDonald; by request of Department of Community, Trade, and Economic Development)

READ FIRST TIME 03/08/01.

_1 AN ACT Relating to developmental disabilities endowment;

_2 amending RCW 43.330.195, 43.330.200, 43.330.205, 43.330.210, and

_3 43.330.220; adding new sections to chapter 43.330 RCW; and adding

_4 new sections to chapter 43.131 RCW.

_5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_6 Sec. 1. RCW 43.330.195 and 2000 c 120 s 2 are each amended to read

_7 as follows:

_8 The definitions in this section apply throughout RCW 43.330.200

_9 through 43.330.230.

10 (1) "Developmental disability" has the meaning in RCW

11 71A.10.020(3).

12 (2) "Developmental disabilities endowment trust fund" means the

13 fund established in the custody of the state treasurer in RCW

14 43.330.200, comprised of private, public, or private and public

15 sources, to finance services for persons with developmental

16 disabilities. All moneys in the fund, all property and rights

17 purchased from the fund, and all income attributable to the fund,

18 shall be held in trust by the state investment board, as provided

p. 1 SSB 6081

_1 in RCW 43.33A.030, for the exclusive benefit of fund

_2 beneficiaries. The principal and interest of the endowment fund

_3 must be maintained until such time as the governing board policy

_4 specifies except for the costs and expenses of the state treasurer

_5 and the state investment board otherwise provided for in chapter

_6 120, Laws of 2000.

_7 (3) "Disbursement trustee" means the person designated by the

_8 governing board to make disbursement decisions for expenditures on

_9 behalf of named individual beneficiaries. The term "person" may be

10 construed to mean a for-profit corporation, a nonprofit

11 corporation, a state or local governmental entity, or an

12 individual. The disbursement trustee functions must be performed

13 either directly by the governing board or through a contractor.

14 (4) "Governing board" means the developmental disabilities

15 endowment governing board in RCW 43.330.205.

16 ((~~(4)~~)) (5) "Individual trust account" means accounts

17 established within the endowment trust fund for each individual

18 named beneficiary for the benefit of whom contributions have been

19 made to the fund. The money in each of the individual accounts is

20 held in trust as provided for in subsection (2) of this section,

21 and shall not be considered state funds or revenues of the

22 state. The governing board serves as administrator, manager, and

23 recordkeeper for the individual trust accounts for the benefit of

24 the individual beneficiaries. The policies governing the

25 disbursements, and the qualifying services for the trust accounts,

26 shall be established by the governing board. Individual trust

27 accounts are separate accounts within the developmental

28 disabilities endowment trust fund, and are invested for the

29 beneficiaries through the endowment trust fund.

30 (6) "Operational fees" means fees assessed to individuals or to

31 individual trust accounts. These may be related to existing

32 accounts or to accounts that are being established. These fees may

33 support direct or indirect costs associated with operating the

34 individual trust accounts. Fees may be imposed by the department,

35 under the direction of the governing board.

36 Sec. 2. RCW 43.330.200 and 2000 c 120 s 3 are each amended to

37 read as follows:

SSB 6081 p. 2

_1 (1) The developmental disabilities endowment trust fund is

_2 created in the custody of the state treasurer. Expenditures from

_3 the fund may be used only for the purposes of the developmental

_4 disabilities endowment established under this chapter, except for

_5 expenses of the state investment board and the state treasurer as

_6 specified in subsection (2) of this section. Only the developmental

_7 disabilities endowment governing board or the ((~~board's designee~~))

_8 disbursement trustee may authorize expenditures from the fund. The

_9 fund shall retain its interest earnings in accordance with RCW

10 43.79A.040.

11 (2) The developmental disabilities endowment governing board

12 shall deposit in the fund all money received for the ((~~program~~))

13 endowment, including state appropriations and private

14 contributions. With the exception of investment and operating costs

15 associated with the investment of money by the investment board

16 paid under RCW 43.33A.160 and 43.84.160 and the expenses and

17 operating costs of the state treasurer paid under RCW 43.08.190

18 and 43.79A.040, the fund shall be credited with all investment

19 income earned by the fund. Disbursements from the fund are exempt

20 from appropriations and the allotment provisions of chapter 43.88

21 RCW. However, money used for program administration by the

22 department or the governing board is subject to the allotment and

23 budgetary controls of chapter 43.88 RCW, and an appropriation is

24 required for these expenditures.

25 NEW SECTION. Sec. 3. A new section is added to chapter 43.330

26 RCW to read as follows:

27 (1) As the developmental disabilities endowment trust fund

28 grows in total dollar size, the percentage of total funds used for

29 program administration must decrease.

30 (2) If the developmental disabilities endowment trust fund

31 reaches ten million dollars or more, the annual administrative

32 budget must not exceed the following percentages of the total

33 amount of funds managed:

34 (a) Five percent of ten million dollars or more, but less than

35 twenty million dollars;

36 (b) Three and four-tenths percent of twenty million dollars or

37 more, but less than thirty million dollars;

p. 3 SSB 6081

_1 (c) Two and five-tenths percent of thirty million dollars or

_2 more, but less than fifty million dollars;

_3 (d) Two percent of fifty million dollars or more, but less than

_4 one hundred million dollars; and

_5 (e) One and four-tenths percent of one hundred million dollars

_6 or more.

_7 Sec. 4. RCW 43.330.205 and 2000 c 120 s 4 are each amended to read

_8 as follows:

_9 (1) The state investment board has the full power to invest,

10 reinvest, manage, contract, sell, or exchange investment money in

11 the developmental disabilities endowment trust fund. All investment

12 and operating costs associated with the investment of money shall

13 be paid under RCW 43.33A.160 and 43.84.160. With the exception of

14 these expenses, the earnings from the investment of the money

15 shall be retained by the fund.

16 (2) All investments made by the state investment board shall be

17 made with the exercise of that degree of judgment and care under

18 RCW 43.33A.140 and the investment policy established by the state

19 investment board.

20 (3) As deemed appropriate by the investment board, money in the

21 fund may be commingled for investment with other funds subject to

22 investment by the board.

23 (4) The authority to establish all policies relating to the

24 fund, other than the investment policies as set forth in

25 subsections (1) through (3) of this section, resides with the

26 governing board acting in accordance with the principles set forth

27 in RCW 43.330.220. With the exception of expenses of the state

28 treasurer in RCW 43.330.200 and the investment board set forth in

29 subsection (1) of this section, disbursements from the fund shall

30 be made only on the authorization of the governing board or the

31 ((~~board's designee~~)) disbursement trustee, and money in the fund

32 may be spent only for the purposes of the developmental

33 disabilities endowment program as specified in this chapter.

34 (5) The investment board shall routinely consult and

35 communicate with the governing board on the investment policy,

36 earnings of the trust, and related needs of the program.

SSB 6081 p. 4

_1 NEW SECTION. Sec. 5. A new section is added to chapter 43.330

_2 RCW to read as follows:

_3 The department, under the direction of the governing board, may

_4 impose and assess operational fees against individual trust

_5 accounts. These fees must be deposited in the developmental

_6 disabilities endowment trust fund.

_7 Sec. 6. RCW 43.330.210 and 2000 c 120 s 5 are each amended to

_8 read as follows:

_9 The developmental disabilities endowment governing board is

10 established to design and administer the developmental

11 disabilities endowment. To the extent funds are appropriated for

12 this purpose, the director of the department of community, trade,

13 and economic development shall provide staff and administrative

14 support to the governing board. To the extent that state general

15 fund appropriations are made to the department for administrative

16 expenses of the governing board during the 2001-2003 fiscal

17 biennium, the amount shall be repaid to the general fund by the

18 developmental disabilities endowment program by June 30, 2005.

19 (1) The governing board shall consist of seven members as

20 follows:

21 (a) Three of the members, who shall be appointed by the

22 governor, shall be persons who have demonstrated expertise and

23 leadership in areas such as finance, actuarial science,

24 management, business, or public policy.

25 (b) Three members of the board, who shall be appointed by the

26 governor, shall be persons who have demonstrated expertise and

27 leadership in areas such as business, developmental disabilities

28 service design, management, or public policy, and shall be family

29 members of persons with developmental disabilities.

30 (c) The seventh member of the board, who shall serve as chair

31 of the board, shall be appointed by the remaining six members of

32 the board.

33 (2) Members of the board shall serve terms of four years and

34 may be appointed for successive terms of four years at the

35 discretion of the appointing authority. However, the governor may

36 stagger the terms of the initial six members of the board so that

37 approximately one-fourth of the members' terms expire each year.

p. 5 SSB 6081

_1 (3) Members of the board shall be compensated for their service

_2 under RCW 43.03.240 and shall be reimbursed for travel expenses as

_3 provided in RCW 43.03.050 and 43.03.060.

_4 (4) The board shall meet periodically as specified by the call

_5 of the chair, or a majority of the board.

_6 (5) Members of the governing board and the state investment

_7 board shall not be considered an insurer of the funds or assets of

_8 the endowment trust fund or the individual trust accounts. Neither

_9 of these two boards or their members shall be liable for the

10 action or ((~~inactions [inaction]~~)) inaction of the other.

11 (6) Members of the governing board and the state investment

12 board are not liable to the state, to the fund, or to any other

13 person as a result of their activities as members, whether

14 ministerial or discretionary, except for willful dishonesty or

15 intentional violations of law. The department and the state

16 investment board, respectively, may purchase liability insurance

17 for members.

18 Sec. 7. RCW 43.330.220 and 2000 c 120 s 6 are each amended to read

19 as follows:

20 The design, implementation, and administration of the

21 developmental disabilities endowment shall be governed by the

22 following principles:

23 (1) The design and operation of the endowment should reward

24 families who set aside resources for their child's future care and

25 provide incentives for continued caregiving by the family.

26 (2) The endowment should encourage financial planning and

27 reward caregiving by a broad range of families, not just those who

28 have substantial financial resources.

29 (3) Families should not feel compelled to contribute to the

30 endowment in order to meet the needs of continuing care for their

31 child.

32 (4) All families should have equal access to developmental

33 disabilities services not funded through the endowment regardless

34 of whether they contribute to the endowment.

35 (5) Services funded through the endowment should be stable,

36 ongoing, of reasonable quality, and respectful of individual and

37 family preferences.

SSB 6081 p. 6

_1 (6) Endowment resources should be expended economically in

_2 order to benefit as many families as possible.

_3 (7) Endowment resources should be managed prudently so that

_4 families can be confident that their agreement with the endowment

_5 on behalf of their child will be honored.

_6 (8) The private financial contribution on behalf of each person

_7 receiving services from the endowment shall be at least equal to

_8 the state's contribution to the endowment.

_9 (9) ((~~In order to be matched with funding from the state's~~

10 ~~contribution to the endowment, the private contribution on behalf~~

11 ~~of a beneficiary must be sufficient to support the beneficiary's~~

12 ~~approved service plan for a significant portion of the~~

13 ~~beneficiary's anticipated remaining lifetime.~~

14 ~~(10)~~)) The rate that state appropriations to the endowment are

15 used to match private contributions shall be such that each

16 legislative appropriation to the developmental disabilities

17 endowment trust fund, including principal and investment income,

18 is not depleted in a period of less than five years.

19 ((~~(11)~~)) (10) Private contributions made on behalf of a

20 particular individual, and the associated state match, shall only

21 be used for services provided upon that person's behalf.

22 ((~~(12)~~)) (11) State funds contributed to the developmental

23 disabilities endowment trust fund are to support the individual

24 trust accounts established by individual private contributions

25 made by families or other interested persons for named individual

26 beneficiaries.

27 ((~~(13)~~)) (12) The governing board shall explore methods to

28 solicit private donations. The governing board shall explore

29 mechanisms to support individuals with developmental disabilities

30 who do not have individual private contributions made on their

31 behalf. The governing board shall establish policies for the use of

32 any private donations.

33 ((~~(14)~~)) (13) Types of services funded by money managed through

34 the developmental disabilities endowment trust fund shall be

35 approved by the governing board or its designee.

36 NEW SECTION. Sec. 8. A new section is added to chapter 43.131

37 RCW to read as follows:

p. 7 SSB 6081

_1 The developmental disabilities endowment trust fund

_2 administrative budget limitations under section 3 of this act and

_3 the fee authority under section 5 of this act shall expire June

_4 30, 2007.

_5 NEW SECTION. Sec. 9. A new section is added to chapter 43.131

_6 RCW to read as follows:

_7 The following acts or parts of acts, as now existing or

_8 hereafter amended, are each repealed, effective June 30, 2008:

_9 (1) Section 3 of this act; and

10 (2) Section 5 of this act.

‑‑‑ END ‑‑‑

SSB 6081 p. 8