Florida Senate - 2013 COMMITTEE AMENDMENT
Bill No. SB 472
Barcode 761528
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/02/2013 .
.
.
.
—————————————————————————————————————————————————————————————————
—————————————————————————————————————————————————————————————————
The Committee on Children, Families, and Elder Affairs (Dean)
recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. This act may be cited as the “C.V. Clay
6 Ford/Gabriela Poole Developmental Disabilities Savings Plan.”
7 Section 2. Developmental Disabilities Savings Program.—
8 (1) The Legislature recognizes that there is a need to
9 provide families who have children that have developmental
10 disabilities who will become ineligible for services due to age
11 with sufficient access to services for those children. The
12 continued provision of educational, health, housing, employment,
13 and other support services for children who have developmental
14 disabilities is critical. The Legislature finds that the
15 creation of a savings and investment program for families with
16 such children can offer continued accessibility to services,
17 regardless of income, insurance, or Medicaid eligibility. It is,
18 therefore, the intent of the Legislature that the Developmental
19 Disabilities Savings Program be established so that families may
20 begin saving in advance for the later costs associated with
21 providing services for these children. The savings and
22 investment program must be conducted in a manner that maximizes
23 program efficiency and effectiveness.
24 (2) As used in this section, the term:
25 (a) “Benefactor” means any person making a deposit,
26 payment, contribution, gift, or other expenditure into the
27 investment plan for a qualified beneficiary, and may include a
28 noncustodial parent who is obligated to make payments into the
29 plan for his or her child.
30 (b) “Contributor” means a resident of this state who is the
31 parent or grandparent of a qualified beneficiary and who opens a
32 savings account.
33 (c) “Developmental disability” has the same meaning as
34 provided in s. 393.063, Florida Statutes.
35 (d) “Eligible services” means:
36 1. Specific services that may include respite care,
37 provision of rehabilitation and habilitation services,
38 transportation, assistive technology, personal assistance
39 services, counseling, support for families headed by aging
40 caregivers, vehicular and home modifications, and assistance to
41 cover extraordinary expenses associated with the needs of
42 individuals who have developmental disabilities.
43 2. Health-related services that may include medical,
44 dental, mental health, and other human and social services to
45 enhance the well-being of the individual, as well as durable and
46 consumable medical supplies.
47 3. Housing-related services that may result in individuals
48 who have developmental disabilities having access to and use of
49 housing and housing supports and services in their communities,
50 including assistance related to modifying an apartment or home.
51 4. Education-related services to facilitate attendance in a
52 training or educational setting, such as technology and
53 personnel-related services that assist in obtaining and
54 maximizing the educational experience.
55 5. Employment-related services that are necessary to assist
56 the individual in meeting essential job functions through
57 technology, personnel-related expenses, and transportation
58 expenses.
59 (e) “Qualified beneficiary” means an individual who has a
60 developmental disability, who is a resident of the state, and
61 who is younger than 22 years of age at the time a contributor
62 opens a savings account on his or her behalf.
63 (f) “Savings account contract” means the contract under the
64 savings program which allows a contributor or benefactor to make
65 payments into an investment plan that will provide funds that
66 may be used to pay for eligible services for a qualified
67 beneficiary.
68 (g) “Savings program” means the Developmental Disabilities
69 Savings Program.
70 (3) There is created the Developmental Disabilities Savings
71 Program. The savings program shall:
72 (a) Offer an investment plan through which eligible
73 services for a qualified beneficiary may be saved for in
74 advance.
75 (b) Provide information and training concerning the program
76 and its benefits for a qualified beneficiary to advance his or
77 her goals and become a contributing member of society.
78 (c) Inform the contributor of the potential impact of plan
79 participation on eligibility for Medicaid or other state or
80 federally funded programs.
81 (4) The savings program may not be implemented until the
82 board created under subsection (6), which is administering the
83 savings program, has obtained the following:
84 (a) A written opinion of a qualified attorney specializing
85 in federal securities law stating that the savings program does
86 not violate federal securities law; and
87 (b) A private letter ruling from the Internal Revenue
88 Service indicating that under the savings program taxes on any
89 payments made, moneys deposited, or investments made, and
90 resulting earnings may be deferred under the Internal Revenue
91 Code. If the Internal Revenue Service declines to rule on the
92 request for a private letter ruling, the program may rely on a
93 legal opinion rendered by a qualified attorney specializing in
94 tax law.
95 (5) The savings program is not a promise or guarantee that
96 a qualified beneficiary will become eligible for Medicaid,
97 receive permanent services, be enrolled in the Medicaid waiver
98 program, or receive any other state or federal assistance. The
99 state is not responsible for and does not make assurances
100 regarding the performance of the savings program or associated
101 investment plans.
102 (6) The savings program shall be administered by the
103 Developmental Disabilities Savings Program Board as a body
104 corporate with all the powers of a body corporate for the
105 purposes delineated in this section.
106 (a) The board shall consist of seven members, including:
107 1. The Chief Financial Officer or the Director of the
108 Division of Treasury.
109 2. The Director of the Agency for Persons with
110 Disabilities.
111 3. The President of The Arc of Florida.
112 4. The Chair of the Family Care Council Florida, or his or
113 her designee.
114 5. Three members, appointed by the Governor for 3-year
115 terms, who possess knowledge, skill, and experience in the areas
116 of accounting, actuarial disciplines, risk management, or
117 investment management. Any person appointed to fill a vacancy
118 for the balance of an unexpired term is eligible for appointment
119 for a full term.
120 (b) The board shall annually elect a chair and vice chair
121 from the board members, and shall designate a secretary
122 treasurer who need not be a member of the board. The secretary
123 treasurer shall keep a record of the board proceedings and shall
124 be the custodian of all printed material filed with or by the
125 board and its official seal.
126 1. The board shall, at a minimum, meet on a quarterly basis
127 at the call of the chair.
128 2. Notwithstanding any vacancies on the board, a majority
129 of the members constitutes a quorum. The board may not take
130 official action in the absence of a quorum.
131 3. Members of the board shall serve without compensation,
132 and each member shall file a full and public disclosure of his
133 or her financial interests pursuant to s. 8, Art. II of the
134 State Constitution and corresponding statute.
135 (c) The board shall have the following powers and duties:
136 1. To appoint an executive director, whose compensation
137 shall be provided from revenue generated by the program, to
138 serve as the chief administrative and operational officer of the
139 program and to perform other duties assigned to him or her by
140 the board.
141 2. To delegate responsibility for administering the savings
142 program to persons who the board determines are qualified.
143 3. To adopt an official seal and procedures.
144 4. To make and execute contracts and other necessary
145 instruments.
146 5. To establish agreements or other transactions with
147 federal, state, and local agencies.
148 6. To form strategic alliances with public and private
149 entities in order to provide benefits to the savings program.
150 7. To appear on its own behalf before commissions or other
151 boards or governmental agencies.
152 8. To procure and contract for goods and services, employ
153 personnel, and engage the services of private consultants,
154 actuaries, managers, legal counsel, and auditors in a manner
155 determined to be necessary and appropriate by the board.
156 9. To adopt procedures for governing contract dispute
157 proceedings between the board and its vendors.
158 10. To solicit proposals and contract for the marketing of
159 the savings program. Any materials produced for the purpose of
160 marketing must be submitted to the board for review. Materials
161 may not be made available to the public before being approved by
162 the board. The state and the board are not liable for
163 misrepresentation of the savings program by a marketing agent.
164 11. To invest funds not required for immediate
165 disbursement.
166 12. To hold, buy, and sell any instruments, obligations,
167 securities, and property determined appropriate by the board.
168 13. To solicit and accept gifts, grants, loans, and other
169 aids from any source or participate in any other way in any
170 government program in order to carry out the purposes of the
171 savings program.
172 14. To require and collect administrative fees and charges
173 in connection with any transaction.
174 15. To sue and be sued.
175 16. To endorse insurance coverage written exclusively for
176 the purpose of protecting the investment plan, and the
177 contributors, benefactors, and beneficiaries thereof.
178 17. To procure insurance against any loss in connection
179 with the property, assets, and activities of the savings program
180 or the board.
181 18. To provide for the receipt of contributions.
182 19. To impose reasonable time limits on the use of benefits
183 provided by the savings program. However, such limitations must
184 be specified in the savings account contract.
185 20. To delineate the terms and conditions under which
186 contributions may be withdrawn from the investment plan and
187 impose reasonable fees and charges for such withdrawal. Such
188 terms and conditions must be specified in the savings account
189 contract.
190 21. To establish other policies, procedures, and criteria
191 to implement and administer the savings program.
192 (d) The board shall solicit proposals and contract for:
193 1. Investment managers to provide investment portfolios for
194 the savings program. The board and investment managers owe a
195 fiduciary duty to the savings program. Investment managers are
196 limited to authorized insurers as defined in s. 624.09, Florida
197 Statutes, banks as defined in s. 658.12, Florida Statutes,
198 associations as defined in s. 665.012, Florida Statutes,
199 registered United States Securities and Exchange Commission
200 investment advisers, and investment companies as defined in the
201 Investment Company Act of 1940. All investment managers must
202 have their principal place of business and corporate charter
203 located and registered in the United States. In addition, each
204 investment manager must agree to meet the obligations of the
205 board to qualified beneficiaries if moneys in the fund fail to
206 offset the obligations of the board as a result of imprudent
207 investing by such manager. Each registered insurer shall
208 evidence superior performance overall on an acceptable level of
209 surety in meeting its obligations to its policyholders and other
210 contractual obligations. Only custodians approved by the Chief
211 Financial Officer are eligible for board consideration. Each
212 investment company shall provide investment plans as specified
213 within the request for proposals.
214 2. Investment consultants to review the performance of the
215 board’s investment managers and advise the board on investment
216 management and performance and investment policy, including the
217 contents of investment plans.
218 3. Trustee services firms to provide trustee and related
219 services to the board. The trustee services firm must agree to
220 meet the obligations of the board to qualified beneficiaries if
221 moneys in the plan fail to offset the obligations of the board
222 as a result of imprudent selection or supervision of investment
223 plans by such firm.
224 4. The services of records administrators.
225 (e) The goals of the board in procuring investment services
226 are to provide all contributors and benefactors with the most
227 well-diversified and beneficially administered savings program
228 possible in order to provide such services to the state at no
229 cost and to the contributors and benefactors at the lowest cost
230 possible. Procurement processes are subject to chapter 287,
231 Florida Statutes. Evaluations of proposals submitted pursuant to
232 paragraph (d) must consider, without limitation, fees and other
233 costs that are charged to contributors or benefactors which
234 affect account values, or which impact the operational costs of
235 the savings program; past experience and past performance in
236 providing the required services; financial history and current
237 financial strength and capital adequacy to provide the required
238 services; and the capabilities and experience of proposed
239 personnel who will provide the required services.
240 (f) The board may adopt procedures necessary for the
241 savings program in order to qualify for or retain its status as
242 a qualified tax-deferred program or other similar status of the
243 program, contributors, and qualified beneficiaries under the
244 Internal Revenue Code. The board shall inform participants in
245 the savings program of changes to the tax or securities status
246 of the investment plan.
247 (7) This section expires on June 30, 2016.
248 Section 3. This act shall take effect July 1, 2013, or upon
249 the date that the federal “Achieving a Better Life Experience
250 Act of 2013” or “ABLE Act of 2013,” S.313/H.R.647, or similar
251 legislation becomes law, whichever occurs later.
252
253 ================= T I T L E A M E N D M E N T ================
254 And the title is amended as follows:
255 Delete everything before the enacting clause
256 and insert:
257 A bill to be entitled
258 An act relating to developmental disabilities;
259 providing a short title; establishing the
260 Developmental Disabilities Savings Program to allow
261 for advance saving for services for children who have
262 developmental disabilities and who will be ineligible
263 for certain services due to age; providing legislative
264 intent; defining terms; requiring the program to
265 provide certain information; providing that the
266 program may not be implemented until certain legal
267 opinions are obtained; establishing the Developmental
268 Disabilities Savings Program Board to administer the
269 savings program; providing for board membership;
270 specifying the powers, duties, and goals of the board;
271 providing a sunset clause; providing a contingent
272 effective date.