Z 0596

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.

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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.

‑‑‑ END ‑‑‑

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