AN
ACT Relating to establishing a public/private endowment for developmental
disabilities services; amending RCW 43.79A.040; and adding new sections to
chapter 43.330 RCW.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1.
LEGISLATIVE INTENT. The legislature recognizes that the main and
most enduring support for persons with developmental disabilities, along with
public resources, is their immediate and extended families. The legislature
recognizes that these families are searching for ways to provide for the
long-term continuing care of their disabled family member when the family can
no longer provide that care. It is the intent of the legislature to encourage
and assist families to engage in long-range financial planning and to
contribute to the lifetime care of their disabled family member. To further
these objectives, this chapter is enacted to finance long-term care for persons
with developmental disabilities through an endowment funded jointly by the
investment of public funds and dedicated family contributions.
The
establishment of this endowment is not intended to diminish the state's
responsibility for funding services currently available to future endowment
participants, subject to available funding, nor is it the intent of the
legislature, by the creation of this public/private endowment, to impose
additional, unintended financial liabilities on the public.
NEW
SECTION. Sec. 2.
DEVELOPMENTAL DISABILITIES ENDOWMENT TRUST FUND. (1) The developmental
disabilities endowment trust fund is created in the custody of the state
treasurer. Expenditures from the fund may be used only for the purposes of the
developmental disabilities endowment established under this chapter. Only the
developmental disabilities endowment governing board or the board's designee
may authorize expenditures from the fund. The fund shall retain its interest
earnings in accordance with RCW 43.79A.040.
(2)
The developmental disabilities endowment governing board shall deposit in the
fund all money received for the program, including state appropriations and
private matching contributions. With the exception of investment and operating
costs associated with the investment of money by the state treasurer and the
investment board paid under RCW 43.08.190, 43.79A.040, 43.33A.160, and
43.84.160, the fund shall be credited with all investment income earned by the
fund. Disbursements from the fund are exempt from appropriations and the
allotment provisions of chapter 43.88 RCW. However, money used for program
administration is subject to the allotment and budgetary controls of chapter
43.88 RCW, and an appropriation is required for these expenditures.
*NEW
SECTION. Sec. 3.
INVESTMENT OF FUNDS. (1) The state investment
board has the full power to invest, reinvest, manage, contract, sell, or
exchange investment money in the developmental disabilities endowment trust
fund. All investment and operating costs associated with the investment of money
shall be paid under RCW 43.08.190, 49.79A.040, 43.33A.160, and 43.84.160. With
the exception of these expenses, the earnings from the investment of the money
shall be retained by the fund.
(2)
All investments made by the state investment board shall be made with the
exercise of that degree of judgment and care under RCW 43.33A.140 and the
investment policy established by the state investment board.
(3)
As deemed appropriate by the investment board, money in the fund may be
commingled for investment with other funds subject to investment by the board.
(4)
The authority to establish all policies relating to the fund, other than the
investment policies as set forth in subsections (1) through (3) of this
section, resides with the developmental disabilities endowment governing board
acting in accordance with the principles set forth in section 5 of this act.
With the exception of expenses of the state treasurer and the investment board
set forth in subsection (1) of this section, disbursements from the fund shall
be made only on the authorization of the developmental disabilities endowment
governing board or the board's designee, and money in the fund may be spent
only for the purposes of the developmental disabilities endowment program as
specified in this chapter.
(5)
The investment board shall routinely consult and communicate with the
developmental disabilities endowment governing board on the investment policy,
earnings of the trust, and related needs of the program.
*Sec. 3 was vetoed. See message at end of chapter.
NEW
SECTION. Sec. 4.
DEVELOPMENTAL DISABILITIES ENDOWMENT GOVERNING BOARD. The
developmental disabilities endowment governing board is established to design
and administer the developmental disabilities endowment. To the extent funds
are appropriated for this purpose, the director of the department of community,
trade, and economic development shall provide staff and administrative support
to the governing board.
(1)
The governing board shall consist of seven members as follows: (a) Three
of the members, who shall be appointed by the governor, shall be persons who
have demonstrated expertise and leadership in areas such as finance, actuarial
science, management, business, or public policy.
(b)
Three members of the board, who shall be appointed by the governor, shall be
persons who have demonstrated expertise and leadership in areas such as
business, developmental disabilities service design, management, or public
policy, and shall be family members of persons with developmental disabilities.
(c)
The seventh member of the board, who shall serve as chair of the board, shall
be appointed by the remaining six members of the board.
(2)
Members of the board shall serve terms of four years and may be appointed for
successive terms of four years at the discretion of the appointing authority.
However, the governor may stagger the terms of the initial six members of the
board so that approximately one-fourth of the members' terms expire each year.
(3)
Members of the board shall be compensated for their service under RCW 43.03.240
and shall be reimbursed for travel expenses as provided in RCW 43.03.050 and
43.03.060.
(4)
The board shall meet periodically as specified by the call of the chair, or a
majority of the board.
NEW
SECTION. Sec. 5.
ENDOWMENT PRINCIPLES. The design, implementation, and administration of the
developmental disabilities endowment shall be governed by the following
principles:
(1)
The design and operation of the endowment should reward families who set aside
resources for their child's future care and provide incentives for continued
caregiving by the family.
(2)
The endowment should encourage financial planning and reward caregiving by a
broad range of families, not just those who have substantial financial
resources.
(3)
Families should not feel compelled to contribute to the endowment in order to
meet the needs of continuing care for their child.
(4)
All families should have equal access to developmental disabilities services
not funded through the endowment regardless of whether they contribute to the
endowment.
(5)
Services funded through the endowment should be stable, ongoing, of reasonable
quality, and respectful of individual and family preferences.
(6)
Endowment resources should be expended economically in order to benefit as many
families as possible.
(7)
Endowment resources should be managed prudently so that families can be
confident that their agreement with the endowment on behalf of their child will
be honored.
(8)
The private financial contribution on behalf of each person receiving services
from the endowment shall be at least equal to the state's contribution to the
endowment.
(9)
In order to be matched with funding from the state's contribution to the
endowment, the private contribution on behalf of a beneficiary must be
sufficient to support the beneficiary's approved service plan for a significant
portion of the beneficiary's anticipated remaining lifetime.
(10)
The rate that state appropriations to the endowment are used to match private
contributions shall be such that each legislative appropriation to the
developmental disabilities endowment trust fund, including principal and
investment income, is not depleted in a period of less than five years.
(11)
Private contributions made on behalf of a particular individual, and the
associated state match, shall only be used for services provided upon that
person's behalf.
*NEW
SECTION. Sec. 6.
PROPOSED OPERATING PLAN.
To the extent funds are appropriated for this purpose, the developmental
disabilities endowment governing board shall contract with an appropriate
organization for the development of a proposed operating plan for the
developmental disabilities endowment program. The proposed operating plan
shall be consistent with the endowment principles specified in section 5 of
this act. The plan shall address at least the following elements:
(1)
The recommended types of services to be available through the endowment program
and their projected average costs per beneficiary;
(2)
An assessment of the number of people likely to apply for participation in the
endowment under alternative rates of matching funds, minimum service year
requirements, and contribution timing approaches;
(3)
An actuarial analysis of the number of disabled beneficiaries who are likely to
be supported under alternative levels of public contribution to the endowment,
and the length of time the beneficiaries are likely to be served, under
alternative rates of matching funds, minimum service year requirements, and
contribution timing approaches;
(4)
Recommended eligibility criteria for participation in the endowment program;
(5)
Recommended policies regarding withdrawal of private contributions from the
endowment in cases of movement out of state, death of the beneficiary, or other
circumstances;
(6)
Recommended matching rate of public and private contributions and, for each
beneficiary, the maximum annual and lifetime amount of private contributions
eligible for public matching funds;
(7)
The recommended minimum years of service on behalf of a beneficiary that must
be supported by private contributions in order for the contributions to qualify
for public matching funds from the endowment;
(8)
The recommended schedule according to which lump sum or periodic private
contributions should be made to the endowment in order to qualify for public
matching funds;
(9)
A recommended program for educating families about the endowment, and about
planning for their child's long-term future; and
(10)
Recommended criteria and procedure for selecting an organization or
organizations to administer the developmental disabilities endowment program,
and projected administrative costs.
*Sec. 6 was vetoed. See message at end of chapter.
NEW
SECTION. Sec. 7.
PROGRAM IMPLEMENTATION AND ADMINISTRATION. Based on the proposed
operating plan under section 6 of this act, and to the extent funds are
appropriated for this purpose, the developmental disabilities endowment
governing board shall implement and administer, or contract for the
administration of, the developmental disabilities endowment program under the
principles specified in section 5 of this act. By October 1, 2000, and prior
to implementation, the final program design shall be submitted to the
appropriate committees of the legislature.
The
secretary of the department of social and health services shall seek to
maximize federal reimbursement and matching funds for expenditures made under
the endowment program, and shall seek waivers from federal requirements as
necessary for the receipt of federal funds.
The
governing board may receive gifts, grants, and endowments from public or
private sources as may be made from time to time, in trust or otherwise, for
the use and benefit of the purposes of the endowment program and may expend the
gifts, grants, and endowments according to their terms.
Sec.
8. RCW
43.79A.040 and 1998 c 268 s 1 are each amended to read as follows:
(1)
Money in the treasurer's trust fund may be deposited, invested, and reinvested
by the state treasurer in accordance with RCW 43.84.080 in the same manner and
to the same extent as if the money were in the state treasury.
(2)
All income received from investment of the treasurer's trust fund shall be set
aside in an account in the treasury trust fund to be known as the investment
income account.
(3)
The investment income account may be utilized for the payment of purchased
banking services on behalf of treasurer's trust funds including, but not
limited to, depository, safekeeping, and disbursement functions for the state
treasurer or affected state agencies. The investment income account is subject
in all respects to chapter 43.88 RCW, but no appropriation is required for
payments to financial institutions. Payments shall occur prior to distribution
of earnings set forth in subsection (4) of this section.
(4)(a)
Monthly, the state treasurer shall distribute the earnings credited to the
investment income account to the state general fund except under (b) and (c) of
this subsection.
(b)
The following accounts and funds shall receive their proportionate share of
earnings based upon each account's or fund's average daily balance for the
period: The Washington advanced college tuition payment program account, the
agricultural local fund, the American Indian scholarship endowment fund, the
Washington international exchange scholarship endowment fund, the
developmental disabilities endowment trust fund, the energy account, the
fair fund, the game farm alternative account, the grain inspection revolving
fund, the rural rehabilitation account, the stadium and exhibition center
account, the youth athletic facility grant account, the self-insurance
revolving fund, the sulfur dioxide abatement account, and the children's trust
fund. However, the earnings to be distributed shall first be reduced by the
allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
(c)
The following accounts and funds shall receive eighty percent of their
proportionate share of earnings based upon each account's or fund's average
daily balance for the period: The advanced right of way revolving fund, the
advanced environmental mitigation revolving account, the federal narcotics
asset forfeitures account, the high occupancy vehicle account, the local rail
service assistance account, and the miscellaneous transportation programs
account.
(5)
In conformance with Article II, section 37 of the state Constitution, no trust
accounts or funds shall be allocated earnings without the specific affirmative
directive of this section.
NEW
SECTION. Sec. 9.
CAPTIONS NOT LAW. Captions used in this chapter are not any part of the law.
NEW
SECTION. Sec. 10.
Sections 1 through 7 and 9 of this act are each added to chapter 43.330 RCW.
