AN
ACT Relating to the developmental disabilities endowment trust fund; amending
RCW 43.330.200, 43.330.210, 43.330.220, and 43.330.230; amending 1999 c 384 s 1
(uncodified); and adding new sections to chapter 43.330 RCW.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. 1999
c 384 s 1 (uncodified) is amended to read as follows:
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)) lifetime services and supports 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. A
new section is added to chapter 43.330 RCW to read as follows:
The
definitions in this section apply throughout RCW 43.330.200 through 43.330.230
and sections 4 and 7 of this act.
(1)
"Developmental disability" has the meaning in RCW 71A.10.020(3).
(2)
"Developmental disabilities endowment trust fund" means the fund
established in the custody of the state treasurer in section 3 of this act,
comprised of private, public, or private and public sources, to finance
services for persons with developmental disabilities. All moneys in the fund,
all property and rights purchased from the fund, and all income attributable to
the fund, shall be held in trust by the state investment board, as provided in
RCW 43.33A.030, for the exclusive benefit of fund beneficiaries. The principal
and interest of the endowment fund must be maintained until such time as the
governing board policy specifies except for the costs and expenses of the state
treasurer and the state investment board otherwise provided for in this act.
(3)
"Governing board" means the developmental disabilities endowment
governing board in section 4 of this act.
(4)
"Individual trust account" means accounts established within the
endowment trust fund for each individual named beneficiary for the benefit of
whom contributions have been made to the fund. The money in each of the
individual accounts is held in trust as provided for in subsection (2) of this
section, and shall not be considered state funds or revenues of the state. The
governing board serves as administrator, manager, and recordkeeper for the
individual trust accounts for the benefit of the individual beneficiaries. The
policies governing the disbursements, and the qualifying services for the trust
accounts, shall be established by the governing board. Individual trust
accounts are separate accounts within the developmental disabilities endowment
trust fund, and are invested for the beneficiaries through the endowment trust
fund.
Sec.
3. RCW
43.330.200 and 1999 c 384 s 2 are each amended to read as follows:
(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, except for expenses of the state investment board and the state
treasurer as specified in subsection (2) of this section. 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 and the expenses and
operating costs of the state treasurer paid under RCW 43.08.190 and 43.79A.040,
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 by the department or the governing board is subject to
the allotment and budgetary controls of chapter 43.88 RCW, and an appropriation
is required for these expenditures.
NEW
SECTION. Sec. 4. A
new section is added to chapter 43.330 RCW to read as follows:
(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 43.33A.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 governing board acting in accordance with the
principles set forth in RCW 43.330.220. With the exception of expenses of the
state treasurer in RCW 43.330.200 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 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 governing
board on the investment policy, earnings of the trust, and related needs of the
program.
Sec.
5. RCW
43.330.210 and 1999 c 384 s 4 are each amended to read as follows:
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.
(5)
Members of the governing board and the state investment board shall not be
considered an insurer of the funds or assets of the endowment trust fund or the
individual trust accounts. Neither of these two boards or their members shall
be liable for the action or inactions of the other.
(6)
Members of the governing board and the state investment board are not liable to
the state, to the fund, or to any other person as a result of their activities
as members, whether ministerial or discretionary, except for willful dishonesty
or intentional violations of law. The department and the state investment
board, respectively, may purchase liability insurance for members.
Sec.
6. RCW
43.330.220 and 1999 c 384 s 5 are each amended to read as follows:
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.
(12)
State funds contributed to the developmental disabilities endowment trust fund
are to support the individual trust accounts established by individual private
contributions made by families or other interested persons for named individual
beneficiaries.
(13)
The governing board shall explore methods to solicit private donations. The
governing board shall explore mechanisms to support individuals with
developmental disabilities who do not have individual private contributions
made on their behalf. The governing board shall establish policies for the use
of any private donations.
(14)
Types of services funded by money managed through the developmental
disabilities endowment trust fund shall be approved by the governing board or
its designee.
NEW
SECTION. Sec. 7. A
new section is added to chapter 43.330 RCW to read as follows:
To
the extent funds are appropriated for this purpose, the 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 RCW 43.330.220. 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.
8. RCW
43.330.230 and 1999 c 384 s 7 are each amended to read as follows:
Based
on the proposed operating plan under section ((6)) 7 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 RCW 43.330.220. By ((October))
December 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.
NEW
SECTION. Sec. 9. A
new section is added to chapter 43.330 RCW to read as follows:
The
department of community, trade, and economic development shall adopt rules for
the implementation of policies established by the governing board in RCW
43.330.200 through 43.330.230 and sections 4 and 7 of this act. Such rules
will be consistent with those statutes and chapter 34.05 RCW.
