Z‑0596.3   _____________________________________________

 

SENATE BILL 6081

 

           _____________________________________________

 

State of Washington      57th Legislature     2001 Regular Session

 

By Senator McDonald; by request of Department of Community, Trade, and Economic Development

 

Read first time 02/19/2001.  Referred to Committee on Ways & Means.

_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 a new section 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

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_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, and administrative fees charged by the

_7  department under the direction of the governing board.

_8      (3) "Disbursement trustee" means the person designated by the

_9  governing board to make disbursement decisions for expenditures on

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

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

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

13  individual.  The disbursement trustee functions must be performed

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

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

16  endowment governing board in RCW 43.330.205.

17      (((4))) (5) "Individual trust account" means accounts

18  established within the endowment trust fund for each individual

19  named beneficiary for the benefit of whom contributions have been

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

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

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

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

24  recordkeeper for the individual trust accounts for the benefit of

25  the individual beneficiaries.  The policies governing the

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

27  shall be established by the governing board.  Individual trust

28  accounts are separate accounts within the developmental

29  disabilities endowment trust fund, and are invested for the

30  beneficiaries through the endowment trust fund.

     

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

32  read as follows:

33      (1) The developmental disabilities endowment trust fund is

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

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

36  disabilities endowment established under this chapter, except for

37  expenses of the state investment board and the state treasurer and

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_1  administrative fees charged by the department under the direction

_2  of the governing board, as specified in subsection (2) of this

_3  section.  Only the developmental disabilities endowment governing

_4  board or the ((board's designee)) disbursement trustee may

_5  authorize expenditures from the fund.  The fund shall retain its

_6  interest earnings in accordance with RCW 43.79A.040.

_7      (2) The developmental disabilities endowment governing board

_8  shall deposit in the fund all money received for the program,

_9  including state appropriations and private contributions.  With the

10  exception of investment and operating costs associated with the

11  investment of money by the investment board paid under RCW

12  43.33A.160 and 43.84.160 ((and)), the expenses and operating costs

13  of the state treasurer paid under RCW 43.08.190 and 43.79A.040,

14  and administrative fees charged by the department under the

15  direction of the governing board, the fund shall be credited with

16  all investment income earned by the fund.  Disbursements from the

17  fund are exempt from appropriations and the allotment provisions

18  of chapter 43.88 RCW.  ((However, money used for program

19  administration by the department or the governing board is subject

20  to the allotment and budgetary controls of chapter 43.88 RCW, and

21  an appropriation is required for these expenditures.))

     

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

23  RCW to read as follows:

24      (1) As the developmental disabilities endowment trust fund

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

26  program administration must decrease.

27      (2) If the developmental disabilities endowment trust fund

28  reaches ten million dollars or more, the annual administrative

29  budget must not exceed the following percentages of the total

30  amount of funds managed:

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

32  twenty million dollars;

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

34  more, but less than thirty million dollars;

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

36  more, but less than fifty million dollars;

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

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_1  one hundred million dollars; and

_2      (e) One and four-tenths percent of one hundred million dollars

_3  or more.

     

_4      Sec. 4.  RCW 43.330.205 and 2000 c 120 s 4 are each amended to read

_5  as follows:

_6      (1) The state investment board has the full power to invest,

_7  reinvest, manage, contract, sell, or exchange investment money in

_8  the developmental disabilities endowment trust fund.  All investment

_9  and operating costs associated with the investment of money shall

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

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

12  shall be retained by the fund.

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

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

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

16  investment board.

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

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

19  investment by the board.

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

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

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

23  governing board acting in accordance with the principles set forth

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

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

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

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

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

29  may be spent only for the purposes of the developmental

30  disabilities endowment program as specified in this chapter.

31      (5) The investment board shall routinely consult and

32  communicate with the governing board on the investment policy,

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

34      (6) The department, under the direction of the governing board,

35  may impose and assess operational fees against individual trust

36  accounts.  These fees must be deposited in the fund.

37 

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_1      Sec. 5.  RCW 43.330.210 and 2000 c 120 s 5 are each amended to read

_2  as follows:

_3      The developmental disabilities endowment governing board is

_4  established to design and administer the developmental

_5  disabilities endowment.  To the extent funds are appropriated for

_6  this purpose, the director of the department of community, trade,

_7  and economic development shall provide staff and administrative

_8  support to the governing board.

_9      (1) The governing board shall consist of seven members as

10  follows:

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

12  governor, shall be persons who have demonstrated expertise and

13  leadership in areas such as finance, actuarial science,

14  management, business, or public policy.

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

16  governor, shall be persons who have demonstrated expertise and

17  leadership in areas such as business, developmental disabilities

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

19  members of persons with developmental disabilities.

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

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

22  the board.

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

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

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

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

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

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

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

30  provided in RCW 43.03.050 and 43.03.060.

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

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

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

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

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

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

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

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

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_1  board are not liable to the state, to the fund, or to any other

_2  person as a result of their activities as members, whether

_3  ministerial or discretionary, except for willful dishonesty or

_4  intentional violations of law.  The department and the state

_5  investment board, respectively, may purchase liability insurance

_6  for members.

     

_7      Sec. 6.  RCW 43.330.220 and 2000 c 120 s 6 are each amended to read

_8  as follows:

_9      The design, implementation, and administration of the

10  developmental disabilities endowment shall be governed by the

11  following principles:

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

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

14  provide incentives for continued caregiving by the family.

15      (2) The endowment should encourage financial planning and

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

17  have substantial financial resources.

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

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

20  child.

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

22  disabilities services not funded through the endowment regardless

23  of whether they contribute to the endowment.

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

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

26  family preferences.

27      (6) Endowment resources should be expended economically in

28  order to benefit as many families as possible.

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

30  families can be confident that their agreement with the endowment

31  on behalf of their child will be honored.

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

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

34  the state's contribution to the endowment.

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

36  contribution to the endowment, the private contribution on behalf

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_1  of a beneficiary must be sufficient to support the beneficiary's

_2  approved service plan for a significant portion of the

_3  beneficiary's anticipated remaining lifetime.

_4      (10))) The rate that state appropriations to the endowment are

_5  used to match private contributions shall be such that each

_6  legislative appropriation to the developmental disabilities

_7  endowment trust fund, including principal and investment income,

_8  is not depleted in a period of less than five years.

_9      (((11))) (10) Private contributions made on behalf of a

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

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

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

13  disabilities endowment trust fund are to support the individual

14  trust accounts established by individual private contributions

15  made by families or other interested persons for named individual

16  beneficiaries.

17      (((13))) (12) The governing board shall explore methods to

18  solicit private donations.  The governing board shall explore

19  mechanisms to support individuals with developmental disabilities

20  who do not have individual private contributions made on their

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

22  any private donations.

23      (((14))) (13) Types of services funded by money managed through

24  the developmental disabilities endowment trust fund shall be

25  approved by the governing board or its designee.

     

26      NEW SECTION.  Sec. 7.  A new section is added to chapter 43.131

27  RCW to read as follows:

28      The developmental disabilities endowment trust fund

29  administrative budget limitations under section 3 of this act

30  shall expire June 30, 2007.

     

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

32  RCW to read as follows:

33      Section 3 of this act is repealed, effective June 30, 2008.

 

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