Bill Text: FL H1111 | 2010 | Regular Session | Introduced

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Bill Title: Prepaid Developmental Disabilities Savings Program

Spectrum: Bipartisan Bill

Status: (Failed) 2010-04-30 - Died in Committee on Health Care Services Policy (HFPC), companion bill(s) passed, see HB 5303 (Ch. 2010-157) [H1111 Detail]

Download: Florida-2010-H1111-Introduced.html

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HB 1111

1	A bill to be entitled
2	An act relating to the Prepaid Developmental Disabilities
3	Savings Program; creating s. 393.507, F.S.; providing
4	legislative findings and intent; providing definitions;
5	creating the Prepaid Developmental Disabilities Savings
6	Program; providing for administration and management of
7	the savings program by the Florida Prepaid College Board
8	in conjunction with the Stanley G. Tate Florida Prepaid
9	College Program; providing for membership on the board for
10	purposes of certain meetings; providing that the savings
11	program shall be supported by the direct-support
12	organization established by the Florida Prepaid College
13	Board; providing requirements for administration of the
14	savings program; requiring a prepaid contract plan to
15	provide for advance payment for eligible services for a
16	qualified beneficiary and an investment plan to provide
17	for the investment of funds by a benefactor for a
18	qualified beneficiary; providing requirements for contract
19	pricing and redemption value; providing requirements that
20	must be met prior to implementation of the savings
21	program; requiring funds for the savings program to be
22	deposited in a separate account in the Florida Prepaid
23	College Trust Fund; providing that the prepaid contract
24	fund and the investment fund shall consist of certain
25	moneys; providing requirements for the use, investment,
26	and maintenance of moneys in savings program accounts;
27	requiring comprehensive asset allocation plans; requiring
28	annual reports that provide an accounting of the prepaid
29	contract plan and the investment plan; requiring annual
30	audits; providing for initial enrollment in the savings
31	program; creating the Prepaid Services for Parents of
32	Children with Developmental Disabilities Study Group;
33	requiring the study group to make recommendations
34	regarding the implementation of, and enrollment in, the
35	savings program; providing membership of the study group;
36	providing for abolishment of the study group; providing
37	severability; providing an effective date.
38
39	Be It Enacted by the Legislature of the State of Florida:
40
41	Section 1. Section 393.507, Florida Statutes, is created
42	to read:
43	393.507 Prepaid Developmental Disabilities Savings
44	Program.-
45	(1)(a) The Legislature recognizes the opportunity to
46	provide increased access to services, at the discretion of the
47	family, for those families who have children with developmental
48	disabilities. The years after a student with a developmental
49	disability ages out of the education system are critical for
50	learning and transition. The Legislature finds that the creation
51	of a savings program for families with children who have
52	developmental disabilities can offer accessibility to services,
53	regardless of income, insurance, or Medicaid eligibility.
54	(b) It is the intent of the Legislature that a prepaid
55	developmental disabilities savings program consisting of a
56	prepaid contract plan and an investment plan be established
57	through which many of the costs associated with children with
58	developmental disabilities who age out of the education system
59	may be paid or saved for in advance. It is the intent that the
60	prepaid contract plan be interchangeable with an advance payment
61	plan of the Stanley G. Tate Florida Prepaid College Program,
62	thereby providing students with developmental disabilities the
63	ability to receive the same value and contract pricing offered
64	through the prepaid college program. It is further the intent
65	that the investment plan be established as a supplement or an
66	alternative to the prepaid contract plan to allow benefactors to
67	place funds in a designated trust fund savings account from
68	which future needs of the beneficiary can be met. Finally, it is
69	the intent that a prepaid developmental disabilities savings
70	program be conducted in a manner to maximize program efficiency
71	and effectiveness.
72	(2) For the purposes of this section, the term:
73	(a) "Benefactor" means any person making a deposit,
74	payment, contribution, gift, or other expenditure into the
75	investment plan of a qualified beneficiary.
76	(b) "Board" means the Florida Prepaid College Board
77	pursuant to s. 1009.971.
78	(c) "Developmental disability" means a disability defined
79	in s. 393.063(9) or a severe, chronic disability that:
80	1. Is attributable to a mental or physical impairment or a
81	combination of those impairments.
82	2. Occurs before the individual reaches 18 years of age.
83	3. Is likely to continue indefinitely.
84	4. Results in substantial functional limitations in three
85	or more of the following areas of major life activity: self-
86	care, receptive and expressive language, learning, mobility,
87	self-direction, capacity for independent living, or economic
88	self-sufficiency.
89	5. Reflects the individual's need for a combination and
90	sequence of special, interdisciplinary, or generic services,
91	individualized supports, or other forms of assistance that are
92	of lifelong or extended duration and are individually planned
93	and coordinated.
94	6. For a child younger than 10 years of age, is likely to
95	meet the criteria in subparagraphs 1.-5. without intervention.
96	(d) "Eligible services" means:
97	1. Specific services that may include respite care,
98	provision of rehabilitation and habilitation services, assistive
99	technology, personal assistance services, counseling, support
100	for families headed by aging caregivers, vehicular and home
101	modifications, and assistance with extraordinary expenses
102	associated with the needs of individuals with developmental
103	disabilities.
104	2. Health-related services that may include medical,
105	dental, mental health, and other human and social services to
106	enhance the well-being of the individual, as well as durable and
107	consumable medical supplies.
108	3. Housing-related services that may result in individuals
109	with developmental disabilities having access to and use of
110	housing and housing supports and services in their communities,
111	including assistance related to renting, owning, or modifying an
112	apartment or home.
113	4. Education-related services such as attendance in a
114	training or educational setting, technology, and personnel-
115	related services that assist in obtaining and maximizing the
116	educational experience.
117	5. Employment-related services that are necessary to
118	assist the individual in meeting essential job functions through
119	technology, personnel-related expenses, and transportation
120	expenses.
121	(e) "Internal Revenue Code" means the Internal Revenue
122	Code of 1986, as defined in s. 220.03(1), and regulations
123	adopted pursuant thereto.
124	(f) "Investment fund" means the fund within the Florida
125	Prepaid College Trust Fund into which moneys belonging to the
126	investment plan are deposited and held.
127	(g) "Investment plan" means the plan under the Prepaid
128	Developmental Disabilities Savings Program that provides the
129	opportunity for a benefactor, in a self-directed manner, to
130	deposit funds on behalf of a qualified beneficiary into a
131	nonguaranteed fund that is among the specific fund options
132	provided by the Florida Prepaid College Board.
133	(h) "Prepaid college program" means the Stanley G. Tate
134	Florida Prepaid College Program pursuant to s. 1009.98.
135	(i) "Prepaid contract fund" means the fund within the
136	Florida Prepaid College Trust Fund into which moneys belonging
137	to the prepaid contract plan are deposited and held.
138	(j) "Prepaid contract plan" means the advance payment plan
139	under the Prepaid Developmental Disabilities Savings Program
140	that provides the opportunity for a purchaser to enter into a
141	guaranteed value advance payment contract to provide for future
142	college enrollment and attendance or other eligible services for
143	a qualified beneficiary.
144	(k) "Purchaser" means a parent or grandparent who is a
145	resident of the state who makes or is obligated to make advance
146	payments for eligible services in accordance with a prepaid
147	contract plan for his or her child or grandchild or a
148	nonresident, noncustodial parent who makes or is obligated to
149	make advance payments for eligible services in accordance with a
150	prepaid contract plan for his or her child.
151	(l) "Qualified beneficiary" means a person with a
152	developmental disability who is a resident of the state and who
153	is under 22 years of age at the time a purchaser enters into an
154	advance payment contract or at the time a benefactor funds an
155	investment plan on his or her behalf.
156	(m) "Savings program" means the Prepaid Developmental
157	Disabilities Savings Program.
158	(n) "Trust fund" means the Florida Prepaid College Trust
159	Fund pursuant to s. 1009.972.
160	(3)(a) There is created the Prepaid Developmental
161	Disabilities Savings Program to be administered and managed in
162	conjunction with the Stanley G. Tate Florida Prepaid College
163	Program by the Florida Prepaid College Board. The director of
164	the Agency for Persons with Disabilities and one member
165	appointed by the Governor shall serve as members of the board
166	for the sole purpose of meetings conducted for the
167	implementation, management, and execution of the savings
168	program.
169	(b) The board shall administer the savings program
170	according to s. 1009.98, and the savings program shall be
171	supported by the direct-support organization of the prepaid
172	college program pursuant to s. 1009.983.
173	(c) The savings program shall provide a prepaid contract
174	plan through which the costs of eligible services for
175	individuals with developmental disabilities may be paid in
176	advance and an investment plan through which a benefactor may
177	deposit funds for future needs of an individual with
178	developmental disabilities.
179	(d) The savings program shall provide education and
180	training opportunities and any other eligible services for
181	individuals with developmental disabilities to advance their
182	goals and become contributing members of society.
183	(e) Advance payment contracts offered under the savings
184	program shall inform the purchaser of the potential impact on
185	eligibility for Medicaid or other state or federally funded
186	programs.
187	(4) The board shall administer the savings program to
188	promote and enhance the affordability of services for
189	individuals with developmental disabilities and to enable
190	persons to contribute funds that are combined and invested to
191	pay the subsequent expenses for a designated beneficiary. Such
192	contributions shall be combined and invested in a manner that
193	yields, at a minimum, sufficient interest to generate the
194	difference between the prepaid amount and the accrued amount at
195	the time of actual disbursement, not to exceed the redemption
196	value of the advance payment contract. The contract pricing and
197	redemption value for the prepaid contract plan shall be equal or
198	comparable to the pricing options and redemption values
199	available under the prepaid college program. Individuals with
200	developmental disabilities who attend college may use the
201	benefits of the prepaid contract plan, which will provide value
202	equal to that of a prepaid college program plan. Individuals
203	with a prepaid college program plan may convert the plan to a
204	prepaid contract plan under the savings program in the event the
205	beneficiary meets eligibility requirements for the savings
206	program.
207	(5) The board may not implement the savings program until
208	it has obtained all of the following:
209	(a) A written opinion from a qualified member of the
210	United States Patent Bar indicating that the implementation of
211	the savings program or the operation of the savings program will
212	not knowingly infringe upon any patent or copyright specifically
213	related to the financing of expenses.
214	(b) A written opinion of qualified counsel specializing in
215	federal securities law that the savings program and the offering
216	of participation in the savings program does not violate federal
217	securities law.
218	(c) A written opinion from the board's litigation counsel
219	indicating that the implementation or operation of the savings
220	program will not adversely impact any pending litigation against
221	the board.
222	(6)(a) Funds for the savings program shall be deposited in
223	a separate account in the Florida Prepaid College Trust Fund
224	and, within that account, the moneys shall be segregated into
225	two separate funds, the prepaid contract fund and the investment
226	fund.
227	(b) The prepaid contract fund shall consist of, but not be
228	limited to, moneys acquired from governmental or private sources
229	for the prepaid contract plan, moneys remitted in accordance
230	with prepaid contract plans, or state appropriations. Dividends,
231	interest, and gains accruing to the prepaid contract fund shall
232	increase the total funds available for the prepaid contract
233	plan. If dividends, interest, and gains for the prepaid contract
234	fund exceed the amount necessary for program administration and
235	disbursements, the board may designate an additional percentage
236	of the prepaid contract fund to serve as a contingency fund.
237	(c) The investment fund shall consist of, but not be
238	limited to, moneys acquired from governmental or private sources
239	for the investment plan, moneys remitted in accordance with
240	investment plans, or state appropriations. The amounts on
241	deposit in the investment fund shall remain in the fund and
242	shall be available solely for carrying out the purposes of the
243	investment plan.
244	(d) Any balance in the prepaid contract fund or the
245	investment fund at the end of a fiscal year shall remain in the
246	respective fund and shall be available for carrying out the
247	purposes of the fund and the direct-support organization. Moneys
248	in the prepaid contract fund or the investment fund shall be
249	exempt from the investment requirements pursuant to s. 17.57.
250	All funds deposited in the prepaid contract fund may be invested
251	pursuant to s. 215.47. Any funds of the direct-support
252	organization shall be exempt from the provisions of this
253	section.
254	(e) The assets of the prepaid contract fund and the
255	investment fund shall be maintained, invested, and expended
256	solely for the purposes of the prepaid contract plan and the
257	investment plan, respectively, and shall not be loaned,
258	transferred, or otherwise used by the state for any purpose
259	other than the purposes of this section.
260	(f) All services purchased with funds from the prepaid
261	contract fund or the investment fund shall be purchased from
262	providers who have been certified, licensed, or otherwise
263	approved by the state.
264	(7) A benefactor retains ownership of all amounts on
265	deposit in his or her account with the savings program. Earnings
266	derived from investment of the contributions shall be considered
267	to be held in trust in the same manner as contributions, except
268	as applied for purposes of the designated beneficiary and for
269	purposes of maintaining and administering the savings program.
270	(8) All amounts attributable to penalties imposed by the
271	board for, but not limited to, delinquent payments or entering
272	into a contract under a fraudulent basis shall be used for
273	purposes of the savings program or as required by the Internal
274	Revenue Code, and amounts received other than contributions
275	shall be property of the savings program. Proceeds from
276	penalties shall remain with the savings program and may be used
277	for any costs or purposes of the savings program or used as
278	required by the Internal Revenue Code.
279	(9) The assets of the savings program shall be
280	continuously invested and reinvested in a manner consistent with
281	the purposes of the savings program, expended on expenses
282	incurred by the operation and management of the savings program,
283	or refunded to the purchaser under the conditions provided in
284	the contract. The board is not required to invest directly in
285	obligations of the state or any political subdivision of the
286	state or in any investment or other fund administered by the
287	state.
288	(10) The board shall establish separate comprehensive
289	asset allocation plans for the prepaid contract fund and the
290	investment fund, each subject to the approval of the State Board
291	of Administration. Each comprehensive asset allocation plan
292	shall specify the investment policies to be utilized by the
293	board in its administration of each respective fund. The board
294	may place assets of each fund in investment products pursuant to
295	the comprehensive asset allocation plan for each respective fund
296	and in such proportions as may be designated or approved under
297	the savings program. Such products shall be underwritten and
298	offered in compliance with the applicable federal and state
299	laws, regulations, and rules by persons authorized by applicable
300	federal and state authorities. A purchaser may not direct the
301	investment of his or her contribution to the prepaid contract
302	plan. A benefactor or designated beneficiary may not direct the
303	investment of any contributions to the investment plan other
304	than to the specific fund options provided by the board, if any.
305	Board members and employees of the board are not prohibited from
306	participating in the savings program by virtue of their
307	fiduciary responsibilities as members of the board or official
308	duties as employees of the board.
309	(11) On or before March 31 of each year, the board shall
310	prepare or cause to be prepared separate reports setting forth
311	in appropriate detail an accounting of the prepaid contract plan
312	and the investment plan that includes a description of the
313	financial condition of each respective plan at the close of the
314	fiscal year. The board shall submit copies of the reports to the
315	Governor, the President of the Senate, the Speaker of the House
316	of Representatives, and the minority leaders of the Senate and
317	the House of Representatives and shall make the report for the
318	prepaid contract plan available to each purchaser and designated
319	beneficiary and the report for the investment plan available to
320	each benefactor and designated beneficiary. The accounts of the
321	funds for the prepaid contract plan and the investment plan
322	shall be subject to annual audits by the Auditor General.
323	(12) Nothing in the savings program shall be construed as
324	a promise or guarantee that a qualified beneficiary or a
325	designated beneficiary will become Medicaid eligible, receive
326	permanent services, be enrolled in the Medicaid waiver program,
327	or receive any other state or federal assistance.
328	(13) Initial enrollment in the savings program shall begin
329	no later than July 1, 2011.
330	Section 2. (1) The Prepaid Services for Parents of
331	Children with Developmental Disabilities Study Group is created
332	to make recommendations to the Florida Prepaid College Board,
333	pursuant to s. 1009.971, Florida Statutes, regarding the
334	implementation of, and enrollment in, the Prepaid Developmental
335	Disabilities Savings Program created under s. 393.507, Florida
336	Statutes.
337	(2) The study group shall consist of the following:
338	(a) A member of the House of Representatives appointed by
339	the Speaker of the House of Representatives.
340	(b) A member of the Senate appointed by the President of
341	the Senate.
342	(c) The director of the Agency for Persons with
343	Disabilities or his or her designee.
344	(d) The director of the Division of Vocational
345	Rehabilitation or his or her designee.
346	(e) The executive director of the State Board of
347	Administration or his or her designee.
348	(f) The Commissioner of Education or his or her designee.
349	(g) The executive director of The Arc of Florida or his or
350	her designee.
351	(h) An Arc of Florida family board member appointed by the
352	executive director of The Arc of Florida.
353	(i) The chair of the Family Care Council Florida or his or
354	her designee.
355	(j) A parent representative from the Family Care Council
356	Florida appointed by the chair of the Family Care Council
357	Florida.
358	(3)(a) The Agency for Persons with Disabilities shall
359	provide administrative support to the study group.
360	(b) Members of the study group shall serve without
361	compensation but are entitled to reimbursement for per diem and
362	travel expenses as provided in s. 112.061, Florida Statutes.
363	(4) The study group shall continue until enrollment in the
364	Prepaid Developmental Disabilities Savings Program has
365	commenced, at which time the study group is abolished.
366	Section 3. If any provision of this act or the application
367	thereof to any person or circumstance is held invalid, the
368	invalidity shall not affect other provisions or applications of
369	the act which can be given effect without the invalid provision
370	or application, and to this end the provisions of this act are
371	declared severable.
372	Section 4. This act shall take effect July 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.