| 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. |