January 19, 2021
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HB 1111

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

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