HB 911

1
A bill to be entitled
2An act relating to developmental disabilities;
3establishing a Developmental Disabilities Savings Program
4to allow for the advance payment of services for children
5who have developmental disabilities and who will be
6ineligible for certain services due to age; providing
7legislative intent; defining terms; requiring the program
8to provide certain information; providing that the program
9may not be implemented until certain legal opinions are
10obtained; establishing the Developmental Disabilities
11Savings Program Board to administer the savings program;
12providing for board membership; specifying the powers,
13duties, and goals of the board; authorizing the board to
14adopt rules; providing an effective date.
15
16Be It Enacted by the Legislature of the State of Florida:
17
18     Section 1.  Developmental Disabilities Savings Program.-
19     (1)  The Legislature recognizes that there is a need to
20provide families that have children with developmental
21disabilities who will become ineligible for services due to age
22with sufficient access to services for those children. The
23continued provision of educational, health, housing, employment,
24and other support services for children with developmental
25disabilities is critical. The Legislature finds that the
26creation of a savings and investment program for families with
27such children can offer continued accessibility to services,
28regardless of income, insurance, or Medicaid eligibility. It is,
29therefore, the intent of the Legislature that the Developmental
30Disabilities Savings Program be established through which many
31of the later costs associated with services for these children
32may be paid or saved for in advance. Such savings and investment
33program must be conducted in a manner that maximizes program
34efficiency and effectiveness.
35     (2)  As used in this section, the term:
36     (a)  "Advance payment contract" means the contract under
37the savings program which allows a purchaser or benefactor to
38make payments into an investment plan that will provide funds
39that may be used to pay for eligible services for a qualified
40beneficiary.
41     (b)  "Benefactor" means any person making a deposit,
42payment, contribution, gift, or other expenditure into the
43investment plan for a qualified beneficiary, and may include a
44noncustodial parent who is obligated to make payments into the
45plan for his or her child.
46     (c)  "Developmental disability" has the same meaning as in
47s. 393.063, Florida Statutes, or means any severe, chronic
48disability that:
49     1.  Is attributable to a mental or physical impairment or a
50combination of those impairments;
51     2.  Occurs before the individual reaches 18 years of age;
52     3.  Is likely to continue indefinitely;
53     4.  Results in substantial functional limitations in three
54or more of the following areas of major life activity: self-
55care, receptive and expressive language, learning, mobility,
56self-direction, capacity for independent living, or economic
57self-sufficiency;
58     5.  Reflects the individual's need for a combination and
59sequence of special, interdisciplinary, or generic services,
60individualized supports, or other forms of assistance that are
61of lifelong or extended duration and are individually planned
62and coordinated; and
63     6.  For a child younger than 10 years of age, is likely to
64meet the criteria in subparagraphs 1.-5. without intervention.
65     (d)  "Eligible services" means:
66     1.  Specific services that may include respite care,
67provision of rehabilitation and habilitation services,
68transportation, assistive technology, personal assistance
69services, counseling, support for families headed by aging
70caregivers, vehicular and home modifications, and assistance to
71cover extraordinary expenses associated with the needs of
72individuals with developmental disabilities.
73     2.  Health-related services that may include medical,
74dental, mental health, and other human and social services to
75enhance the well-being of the individual, as well as durable and
76consumable medical supplies.
77     3.  Housing-related services that may result in individuals
78with developmental disabilities having access to and use of
79housing and housing supports and services in their communities,
80including assistance related to modifying an apartment or home.
81     4.  Education-related services to facilitate attendance in
82a training or educational setting, such as technology and
83personnel-related services that assist in obtaining and
84maximizing the educational experience.
85     5.  Employment-related services that are necessary to
86assist the individual in meeting essential job functions through
87technology, personnel-related expenses, and transportation
88expenses.
89     (e)  "Purchaser" means a resident of this state who is the
90parent or grandparent of a qualified beneficiary and who enters
91into an advance payment contract.
92     (f)  "Qualified beneficiary" means an individual with a
93developmental disability who is a resident of the state and who
94is under 22 years of age at the time a purchaser enters into an
95advance payment contract on his or her behalf.
96     (g)  "Savings program" means the Developmental Disabilities
97Savings Program.
98     (3)  There is created the Developmental Disabilities
99Savings Program.
100     (a)  The savings program shall offer an investment plan
101through which eligible services for a qualified beneficiary may
102be paid for in advance.
103     (b)  The savings program shall provide information and
104training concerning the program and its benefits for a qualified
105beneficiary to advance his or her goals and become a
106contributing member of society.
107     (c)  The savings program must inform the purchaser of the
108potential impact of plan participation on eligibility for
109Medicaid or other state or federally funded programs.
110     (4)  The savings program may not be implemented until the
111board created under subsection (6) which is administering the
112savings program has obtained the following:
113     (a)  A written opinion of qualified counsel specializing in
114federal securities law that the savings program and the offering
115of participation in the investment plan does not violate federal
116securities law; and
117     (b)  A private letter ruling from the federal Internal
118Revenue Service indicating that under the savings program taxes
119on any payments made, moneys deposited, investments made, and
120resulting earnings may be deferred under the Internal Revenue
121Code. If the Internal Revenue Service declines to rule on the
122request for a private letter ruling, the program may rely on
123legal opinion rendered by a qualified attorney specializing in
124tax law.
125     (5)  The savings program is not a promise or guarantee that
126a qualified beneficiary or a designated beneficiary will become
127eligible for Medicaid, receive permanent services, be enrolled
128in the Medicaid waiver program, or receive any other state or
129federal assistance.
130     (6)  The savings program shall be administered by the
131Developmental Disabilities Savings Program Board as a body
132corporate with all the powers of a body corporate for the
133purposes delineated in this section.
134     (a)  The board shall consist of seven members including:
135     1.  The director of the Agency for Persons with
136Disabilities.
137     2.  The director of Vocational Rehabilitation.
138     3.  The executive director of The Arc of Florida.
139     4.  The president of The Family Care Council of Florida, or
140his or her designee.
141     5.  Three members, appointed by the Governor for 3-year
142terms, who possess knowledge, skill, and experience in the areas
143of accounting, actuary, risk management, or investment
144management. Any person appointed to fill a vacancy for such
145members shall serve only for the unexpired term and until a
146successor qualifies, but is eligible for reappointment.
147     (b)  The board shall annually elect a chair and vice chair
148from the board members, and shall designate a secretary-
149treasurer who need not be a member of the board. The secretary-
150treasurer shall keep a record of the proceedings of the board
151and shall be the custodian of all printed material filed with or
152by the board and its official seal.
153     1.  The board shall, at a minimum, meet on a quarterly
154basis at the call of the chair.
155     2.  Notwithstanding the existence of vacancies on the
156board, a majority of the members constitutes a quorum. The board
157shall take no official action in the absence of a quorum.
158     3.  Members of the board shall serve without compensation,
159and each member shall file a full and public disclosure of his
160or her financial interests pursuant to s. 8, Art. II of the
161State Constitution and corresponding statute.
162     (c)  The board shall have the powers and duties necessary
163or proper to carry out the following provisions, including, but
164not limited to:
165     1.  Appointing an executive director to serve as the chief
166administrative and operational officer of the program and to
167perform other duties assigned to him or her by the board.
168     2.  Delegating responsibility for administration of the
169savings program to persons the board determines are qualified.
170     3.  Adopting an official seal and rules.
171     4.  Making and executing contracts and other necessary
172instruments.
173     5.  Establishing agreements or other transactions with
174federal, state, and local agencies.
175     6.  Forming strategic alliances with public and private
176entities to provide benefits to the savings program.
177     7.  Appearing in its own behalf before boards, commissions,
178or other governmental agencies.
179     8.  Procuring and contracting for goods and services,
180employing personnel, and engaging the services of private
181consultants, actuaries, managers, legal counsel, and auditors in
182a manner determined to be necessary and appropriate by the
183board.
184     9.  Adopting procedures to govern contract dispute
185proceedings between the board and its vendors.
186     10.  Soliciting proposals and contracting for the marketing
187of the savings program. Any materials produced for the purpose
188of marketing must be submitted to the board for review.
189Materials may not be made available to the public before the
190materials are approved by the board. Neither the state nor the
191board is liable for misrepresentation of the savings program by
192a marketing agent.
193     11.  Investing funds not required for immediate
194disbursement.
195     12.  Holding, buying, and selling any instruments,
196obligations, securities, and property determined appropriate by
197the board.
198     13.  Administering the savings program in a manner that is
199sufficiently actuarially sound to defray the obligations of the
200savings program. The board shall annually evaluate the actuarial
201soundness of the investment plan.
202     14.  Soliciting and accepting gifts, grants, loans, and
203other aids from any source or participating in any other way in
204any government program to carry out the purposes of the savings
205program.
206     15.  Requiring and collecting administrative fees and
207charges in connection with any transaction and imposing
208reasonable penalties, including default, for delinquent payments
209or for entering into an advance payment contract on a fraudulent
210basis.
211     16.  Suing and being sued.
212     17.  Endorsing insurance coverage written exclusively for
213the purpose of protecting the investment plan, and the
214purchasers, benefactors, and beneficiaries thereof.
215     18.  Procuring insurance against any loss in connection
216with the property, assets, and activities of the savings program
217or the board.
218     19.  Providing for the receipt of contributions in lump
219sums or installment payments.
220     20.  Imposing reasonable time limits on use of the benefits
221provided by the savings program. However, such limitations must
222be specified in the contract.
223     21.  Delineating the terms and conditions under which
224payments may be withdrawn from the investment plan and impose
225reasonable fees and charges for such withdrawal. Such terms and
226conditions must be specified within the advance payment
227contract.
228     22.  Establishing other policies, procedures, and criteria
229to implement and administer the savings program.
230     (d)  The board shall solicit proposals and contract for:
231     1.  Investment managers to provide investment portfolios
232for the savings program. Investment managers are limited to
233authorized insurers as defined in s. 624.09, Florida Statutes,
234banks as defined in s. 658.12, Florida Statutes, associations as
235defined in s. 665.012, Florida Statutes, authorized Securities
236and Exchange Commission investment advisers, and investment
237companies as defined in the Investment Company Act of 1940. All
238investment managers shall have their principal place of business
239and corporate charter located and registered in the United
240States. In addition, each investment manager must agree to meet
241the obligations of the board to qualified beneficiaries if
242moneys in the fund fail to offset the obligations of the board
243as a result of imprudent investing by such manager. Each
244authorized insurer shall evidence superior performance overall
245on an acceptable level of surety in meeting its obligations to
246its policyholders and other contractual obligations. Only
247qualified public depositories approved by the Chief Financial
248Officer are eligible for board consideration. Each investment
249company shall provide investment plans as specified within the
250request for proposals.
251     2.  Investment consultants to review the performance of the
252board's investment managers and advise the board on investment
253management and performance and investment policy, including the
254contents of investment plans.
255     3.  Trustee services firms to provide trustee and related
256services to the board. The trustee services firm must agree to
257meet the obligations of the board to qualified beneficiaries if
258moneys in the plan fail to offset the obligations of the board
259as a result of imprudent selection or supervision of investment
260plans by such firm.
261     4.  The services of records administrators.
262     (e)  The goals of the board in procuring investment
263services shall be to provide all purchasers and benefactors with
264the most secure, well-diversified, and beneficially administered
265savings program possible, to allow all qualified firms
266interested in providing such services equal consideration, and
267to provide such services to the state at no cost and to the
268purchasers and benefactors at the lowest cost possible.
269Evaluations of proposals submitted pursuant to paragraph (d)
270must consider, without limitation, fees and other costs that are
271charged to purchasers or benefactors that affect account values,
272or that impact the operational costs of the savings program;
273past experience and past performance in providing the required
274services; financial history and current financial strength and
275capital adequacy to provide the required services; and
276capabilities and experience of proposed personnel who will
277provide the required services.
278     (f)  The board may adopt rules necessary for the savings
279program to qualify for or retain its status as a qualified tax-
280deferred program or other similar status of the program,
281purchasers, and qualified beneficiaries under the Internal
282Revenue Code. The board shall inform participants in the savings
283program of changes to the tax or securities status of the
284investment plan.
285     Section 2.  This act shall take effect July 1, 2011.


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