AN ACT Relating to preserving the developmental disabilities community trust; amending RCW 71A.20.170; and creating a new section.

NEW SECTION. Sec. 1. The legislature recognizes the importance of preserving and protecting the developmental disabilities community trust. To that end, the legislature intends to provide for professional management of the trust to ensure continued growth and appropriate utilization of proceeds and allow flexibility in utilization, so long as trust proceeds are used to support eligible individuals with intellectual and developmental disabilities and their families through home and community-based services and projects.

(1) The developmental disabilities community trust account is created in the state treasury. All net proceeds from the use of excess, underutilized, or vacated property identified in the 2002 joint legislative audit and review committee capital study or other studies of the ((division of developmental disabilities))department of social and health services regarding residential habilitation centers that would not impact current residential habilitation center operations must be deposited into the account.

(2) Proceeds may come from the lease or sale of the land, conservation easements, or sale of timber((, or other activities short of sale of the property, except as permitted under section 7 of this act)). Any lease or sale of the land, conservation easements, or sale of timber must be at fair market value.

(3) "Excess property" includes that portion of the property at Rainier school previously under the cognizance and control of Washington State University for use as a dairy/forage research facility.

(4) Only investment income from the principal of the proceeds deposited into the trust account may be spent from the account. For purposes of this section, "investment income" includes lease payments, rent payments, payments from sale of property or timber, or other periodic payments deposited into the trust account. Property and trust management services must be paid from the investment portion of the trust for the purpose of maximizing income for the trust. For purposes of this section, "principal" is the actual excess land from which proceeds are assigned to the trust account.

(5) Moneys in the account may be spent only after appropriation. Expenditures from the account shall be used exclusively to ((provide family support and/or employment/day services to eligible persons with developmental disabilities who can be served by community-based developmental disability services. It is the intent of the legislature that the account should))benefit eligible persons with intellectual and developmental disabilities who need community supports through grants, projects, or other means that increase community capacity and workforce.

(6) Trust account proceeds and investment income may not be used to replace, supplant, or reduce existing appropriations.

(((6)))(7) The state investment board shall invest the trust account funds. The state investment board has the full power to invest, reinvest, manage, contract, sell, or exchange investment money in the account. All investment and operating costs associated with the investment of money shall be paid under RCW 43.33A.160 and 43.84.160.

(8) All investments made by the state investment board shall be made with the degree of judgment and care required under RCW 43.33A.140 and the investment policy established by the state investment board.

(9) The state investment board shall routinely consult and communicate with the department of social and health services and the legislature on the investment policy, earnings of the accounts, and related needs of the trust account.