Florida Senate - 2010                                    SB 2192
       By Senator Peaden
       2-01440-10                                            20102192__
    1                        A bill to be entitled                      
    2         An act relating to the Prepaid Developmental
    3         Disabilities Savings Program; creating s. 393.507,
    4         F.S.; providing legislative findings and intent;
    5         providing definitions; creating the Prepaid
    6         Developmental Disabilities Savings Program; providing
    7         for administration and management of the savings
    8         program by the Florida Prepaid College Board in
    9         conjunction with the Stanley G. Tate Florida Prepaid
   10         College Program; providing for membership on the board
   11         for purposes of certain meetings; providing that the
   12         savings program shall be supported by the direct
   13         support organization established by the Florida
   14         Prepaid College Board; providing requirements for
   15         administration of the savings program; requiring a
   16         prepaid contract plan to provide for advance payment
   17         for eligible services for a qualified beneficiary and
   18         an investment plan to provide for the investment of
   19         funds by a benefactor for a qualified beneficiary;
   20         providing requirements for contract pricing and
   21         redemption value; providing requirements that must be
   22         met prior to implementation of the savings program;
   23         requiring funds for the savings program to be
   24         deposited in a separate account in the Florida Prepaid
   25         College Trust Fund; providing that the prepaid
   26         contract fund and the investment fund shall consist of
   27         certain moneys; providing requirements for the use,
   28         investment, and maintenance of moneys in savings
   29         program accounts; requiring comprehensive asset
   30         allocation plans; requiring annual reports that
   31         provide an accounting of the prepaid contract plan and
   32         the investment plan; requiring annual audits;
   33         providing for initial enrollment in the savings
   34         program; creating the Prepaid Services for Parents of
   35         Children with Developmental Disabilities Study Group;
   36         requiring the study group to make recommendations
   37         regarding the implementation of, and enrollment in,
   38         the savings program; providing membership of the study
   39         group; providing for abolishment of the study group;
   40         providing severability; providing an effective date.
   42  Be It Enacted by the Legislature of the State of Florida:
   44         Section 1. Section 393.507, Florida Statutes, is created to
   45  read:
   46         393.507 Prepaid Developmental Disabilities Savings
   47  Program.—
   48         (1)(a) The Legislature recognizes the opportunity to
   49  provide increased access to services, at the discretion of the
   50  family, for those families who have children with developmental
   51  disabilities. The years after a student with a developmental
   52  disability ages out of the education system are critical for
   53  learning and transition. The Legislature finds that the creation
   54  of a savings program for families with children who have
   55  developmental disabilities can offer accessibility to services,
   56  regardless of income, insurance, or Medicaid eligibility.
   57         (b) It is the intent of the Legislature that a prepaid
   58  developmental disabilities savings program consisting of a
   59  prepaid contract plan and an investment plan be established
   60  through which many of the costs associated with children with
   61  developmental disabilities who age out of the education system
   62  may be paid or saved for in advance. It is the intent that the
   63  prepaid contract plan be interchangeable with an advance payment
   64  plan of the Stanley G. Tate Florida Prepaid College Program,
   65  thereby providing students with developmental disabilities the
   66  ability to receive the same value and contract pricing offered
   67  through the prepaid college program. It is further the intent
   68  that the investment plan be established as a supplement or an
   69  alternative to the prepaid contract plan to allow benefactors to
   70  place funds in a designated trust fund savings account from
   71  which future needs of the beneficiary can be met. Finally, it is
   72  the intent that a prepaid developmental disabilities savings
   73  program be conducted in a manner to maximize program efficiency
   74  and effectiveness.
   75         (2) For the purposes of this section, the term:
   76         (a) “Benefactor” means any person making a deposit,
   77  payment, contribution, gift, or other expenditure into the
   78  investment plan of a qualified beneficiary.
   79         (b) “Board” means the Florida Prepaid College Board
   80  pursuant to s. 1009.971.
   81         (c) “Developmental disability” means a disability defined
   82  in s. 393.063(9) or a severe, chronic disability that:
   83         1. Is attributable to a mental or physical impairment or a
   84  combination of those impairments.
   85         2. Occurs before the individual reaches 18 years of age.
   86         3. Is likely to continue indefinitely.
   87         4. Results in substantial functional limitations in three
   88  or more of the following areas of major life activity: self
   89  care, receptive and expressive language, learning, mobility,
   90  self-direction, capacity for independent living, or economic
   91  self-sufficiency.
   92         5. Reflects the individual’s need for a combination and
   93  sequence of special, interdisciplinary, or generic services,
   94  individualized supports, or other forms of assistance that are
   95  of lifelong or extended duration and are individually planned
   96  and coordinated.
   97         6. For a child younger than 10 years of age, is likely to
   98  meet the criteria in subparagraphs 1.-5. without intervention.
   99         (d) “Eligible services” means:
  100         1. Specific services that may include respite care,
  101  provision of rehabilitation and habilitation services, assistive
  102  technology, personal assistance services, counseling, support
  103  for families headed by aging caregivers, vehicular and home
  104  modifications, and assistance with extraordinary expenses
  105  associated with the needs of individuals with developmental
  106  disabilities.
  107         2. Health-related services that may include medical,
  108  dental, mental health, and other human and social services to
  109  enhance the well-being of the individual, as well as durable and
  110  consumable medical supplies.
  111         3. Housing-related services that may result in individuals
  112  with developmental disabilities having access to and use of
  113  housing and housing supports and services in their communities,
  114  including assistance related to renting, owning, or modifying an
  115  apartment or home.
  116         4. Education-related services such as attendance in a
  117  training or educational setting, technology, and personnel
  118  related services that assist in obtaining and maximizing the
  119  educational experience.
  120         5. Employment-related services that are necessary to assist
  121  the individual in meeting essential job functions through
  122  technology, personnel-related expenses, and transportation
  123  expenses.
  124         (e) “Internal Revenue Code” means the Internal Revenue Code
  125  of 1986, as defined in s. 220.03(1), and regulations adopted
  126  pursuant thereto.
  127         (f) “Investment fund” means the fund within the Florida
  128  Prepaid College Trust Fund into which moneys belonging to the
  129  investment plan are deposited and held.
  130         (g) “Investment plan” means the plan under the Prepaid
  131  Developmental Disabilities Savings Program that provides the
  132  opportunity for a benefactor, in a self-directed manner, to
  133  deposit funds on behalf of a qualified beneficiary into a
  134  nonguaranteed fund that is among the specific fund options
  135  provided by the Florida Prepaid College Board.
  136         (h) “Prepaid college program” means the Stanley G. Tate
  137  Florida Prepaid College Program pursuant to s. 1009.98.
  138         (i) “Prepaid contract fund” means the fund within the
  139  Florida Prepaid College Trust Fund into which moneys belonging
  140  to the prepaid contract plan are deposited and held.
  141         (j) “Prepaid contract plan” means the advance payment plan
  142  under the Prepaid Developmental Disabilities Savings Program
  143  that provides the opportunity for a purchaser to enter into a
  144  guaranteed value advance payment contract to provide for future
  145  college enrollment and attendance or other eligible services for
  146  a qualified beneficiary.
  147         (k) “Purchaser” means a parent or grandparent who is a
  148  resident of the state who makes or is obligated to make advance
  149  payments for eligible services in accordance with a prepaid
  150  contract plan for his or her child or grandchild or a
  151  nonresident, noncustodial parent who makes or is obligated to
  152  make advance payments for eligible services in accordance with a
  153  prepaid contract plan for his or her child.
  154         (l) “Qualified beneficiary” means a person with a
  155  developmental disability who is a resident of the state and who
  156  is under 22 years of age at the time a purchaser enters into an
  157  advance payment contract or at the time a benefactor funds an
  158  investment plan on his or her behalf.
  159         (m) “Savings program” means the Prepaid Developmental
  160  Disabilities Savings Program.
  161         (n) “Trust fund” means the Florida Prepaid College Trust
  162  Fund pursuant to s. 1009.972.
  163         (3)(a) There is created the Prepaid Developmental
  164  Disabilities Savings Program to be administered and managed in
  165  conjunction with the Stanley G. Tate Florida Prepaid College
  166  Program by the Florida Prepaid College Board. The director of
  167  the Agency for Persons with Disabilities and one member
  168  appointed by the Governor shall serve as members of the board
  169  for the sole purpose of meetings conducted for the
  170  implementation, management, and execution of the savings
  171  program.
  172         (b) The board shall administer the savings program
  173  according to s. 1009.98, and the savings program shall be
  174  supported by the direct-support organization of the prepaid
  175  college program pursuant to s. 1009.983.
  176         (c) The savings program shall provide a prepaid contract
  177  plan through which the costs of eligible services for
  178  individuals with developmental disabilities may be paid in
  179  advance and an investment plan through which a benefactor may
  180  deposit funds for future needs of an individual with
  181  developmental disabilities.
  182         (d) The savings program shall provide education and
  183  training opportunities and any other eligible services for
  184  individuals with developmental disabilities to advance their
  185  goals and become contributing members of society.
  186         (e) Advance payment contracts offered under the savings
  187  program shall inform the purchaser of the potential impact on
  188  eligibility for Medicaid or other state or federally funded
  189  programs.
  190         (4) The board shall administer the savings program to
  191  promote and enhance the affordability of services for
  192  individuals with developmental disabilities and to enable
  193  persons to contribute funds that are combined and invested to
  194  pay the subsequent expenses for a designated beneficiary. Such
  195  contributions shall be combined and invested in a manner that
  196  yields, at a minimum, sufficient interest to generate the
  197  difference between the prepaid amount and the accrued amount at
  198  the time of actual disbursement, not to exceed the redemption
  199  value of the advance payment contract. The contract pricing and
  200  redemption value for the prepaid contract plan shall be equal or
  201  comparable to the pricing options and redemption values
  202  available under the prepaid college program. Individuals with
  203  developmental disabilities who attend college may use the
  204  benefits of the prepaid contract plan, which will provide value
  205  equal to that of a prepaid college program plan. Individuals
  206  with a prepaid college program plan may convert the plan to a
  207  prepaid contract plan under the savings program in the event the
  208  beneficiary meets eligibility requirements for the savings
  209  program.
  210         (5) The board may not implement the savings program until
  211  it has obtained all of the following:
  212         (a) A written opinion from a qualified member of the United
  213  States Patent Bar indicating that the implementation of the
  214  savings program or the operation of the savings program will not
  215  knowingly infringe upon any patent or copyright specifically
  216  related to the financing of expenses.
  217         (b) A written opinion of qualified counsel specializing in
  218  federal securities law that the savings program and the offering
  219  of participation in the savings program does not violate federal
  220  securities law.
  221         (c) A written opinion from the board’s litigation counsel
  222  indicating that the implementation or operation of the savings
  223  program will not adversely impact any pending litigation against
  224  the board.
  225         (6)(a) Funds for the savings program shall be deposited in
  226  a separate account in the Florida Prepaid College Trust Fund
  227  and, within that account, the moneys shall be segregated into
  228  two separate funds, the prepaid contract fund and the investment
  229  fund.
  230         (b) The prepaid contract fund shall consist of, but not be
  231  limited to, moneys acquired from governmental or private sources
  232  for the prepaid contract plan, moneys remitted in accordance
  233  with prepaid contract plans, or state appropriations. Dividends,
  234  interest, and gains accruing to the prepaid contract fund shall
  235  increase the total funds available for the prepaid contract
  236  plan. If dividends, interest, and gains for the prepaid contract
  237  fund exceed the amount necessary for program administration and
  238  disbursements, the board may designate an additional percentage
  239  of the prepaid contract fund to serve as a contingency fund.
  240         (c) The investment fund shall consist of, but not be
  241  limited to, moneys acquired from governmental or private sources
  242  for the investment plan, moneys remitted in accordance with
  243  investment plans, or state appropriations. The amounts on
  244  deposit in the investment fund shall remain in the fund and
  245  shall be available solely for carrying out the purposes of the
  246  investment plan.
  247         (d) Any balance in the prepaid contract fund or the
  248  investment fund at the end of a fiscal year shall remain in the
  249  respective fund and shall be available for carrying out the
  250  purposes of the fund and the direct-support organization. Moneys
  251  in the prepaid contract fund or the investment fund shall be
  252  exempt from the investment requirements pursuant to s. 17.57.
  253  All funds deposited in the prepaid contract fund may be invested
  254  pursuant to s. 215.47. Any funds of the direct-support
  255  organization shall be exempt from the provisions of this
  256  section.
  257         (e) The assets of the prepaid contract fund and the
  258  investment fund shall be maintained, invested, and expended
  259  solely for the purposes of the prepaid contract plan and the
  260  investment plan, respectively, and shall not be loaned,
  261  transferred, or otherwise used by the state for any purpose
  262  other than the purposes of this section.
  263         (f) All services purchased with funds from the prepaid
  264  contract fund or the investment fund shall be purchased from
  265  providers who have been certified, licensed, or otherwise
  266  approved by the state.
  267         (7) A benefactor retains ownership of all amounts on
  268  deposit in his or her account with the savings program. Earnings
  269  derived from investment of the contributions shall be considered
  270  to be held in trust in the same manner as contributions, except
  271  as applied for purposes of the designated beneficiary and for
  272  purposes of maintaining and administering the savings program.
  273         (8) All amounts attributable to penalties imposed by the
  274  board for, but not limited to, delinquent payments or entering
  275  into a contract under a fraudulent basis shall be used for
  276  purposes of the savings program or as required by the Internal
  277  Revenue Code, and amounts received other than contributions
  278  shall be property of the savings program. Proceeds from
  279  penalties shall remain with the savings program and may be used
  280  for any costs or purposes of the savings program or used as
  281  required by the Internal Revenue Code.
  282         (9) The assets of the savings program shall be continuously
  283  invested and reinvested in a manner consistent with the purposes
  284  of the savings program, expended on expenses incurred by the
  285  operation and management of the savings program, or refunded to
  286  the purchaser under the conditions provided in the contract. The
  287  board is not required to invest directly in obligations of the
  288  state or any political subdivision of the state or in any
  289  investment or other fund administered by the state.
  290         (10) The board shall establish separate comprehensive asset
  291  allocation plans for the prepaid contract fund and the
  292  investment fund, each subject to the approval of the State Board
  293  of Administration. Each comprehensive asset allocation plan
  294  shall specify the investment policies to be utilized by the
  295  board in its administration of each respective fund. The board
  296  may place assets of each fund in investment products pursuant to
  297  the comprehensive asset allocation plan for each respective fund
  298  and in such proportions as may be designated or approved under
  299  the savings program. Such products shall be underwritten and
  300  offered in compliance with the applicable federal and state
  301  laws, regulations, and rules by persons authorized by applicable
  302  federal and state authorities. A purchaser may not direct the
  303  investment of his or her contribution to the prepaid contract
  304  plan. A benefactor or designated beneficiary may not direct the
  305  investment of any contributions to the investment plan other
  306  than to the specific fund options provided by the board, if any.
  307  Board members and employees of the board are not prohibited from
  308  participating in the savings program by virtue of their
  309  fiduciary responsibilities as members of the board or official
  310  duties as employees of the board.
  311         (11) On or before March 31 of each year, the board shall
  312  prepare or cause to be prepared separate reports setting forth
  313  in appropriate detail an accounting of the prepaid contract plan
  314  and the investment plan that includes a description of the
  315  financial condition of each respective plan at the close of the
  316  fiscal year. The board shall submit copies of the reports to the
  317  Governor, the President of the Senate, the Speaker of the House
  318  of Representatives, and the minority leaders of the Senate and
  319  the House of Representatives and shall make the report for the
  320  prepaid contract plan available to each purchaser and designated
  321  beneficiary and the report for the investment plan available to
  322  each benefactor and designated beneficiary. The accounts of the
  323  funds for the prepaid contract plan and the investment plan
  324  shall be subject to annual audits by the Auditor General.
  325         (12) Nothing in the savings program shall be construed as a
  326  promise or guarantee that a qualified beneficiary or a
  327  designated beneficiary will become Medicaid eligible, receive
  328  permanent services, be enrolled in the Medicaid waiver program,
  329  or receive any other state or federal assistance.
  330         (13) Initial enrollment in the savings program shall begin
  331  no later than July 1, 2011.
  332         Section 2. (1) The Prepaid Services for Parents of Children
  333  with Developmental Disabilities Study Group is created to make
  334  recommendations to the Florida Prepaid College Board, pursuant
  335  to s. 1009.971, Florida Statutes, regarding the implementation
  336  of, and enrollment in, the Prepaid Developmental Disabilities
  337  Savings Program created under s. 393.507, Florida Statutes.
  338         (2) The study group shall consist of the following:
  339         (a) A member of the House of Representatives appointed by
  340  the Speaker of the House of Representatives.
  341         (b) A member of the Senate appointed by the President of
  342  the Senate.
  343         (c) The director of the Agency for Persons with
  344  Disabilities or his or her designee.
  345         (d) The director of the Division of Vocational
  346  Rehabilitation or his or her designee.
  347         (e) The executive director of the State Board of
  348  Administration or his or her designee.
  349         (f) The Commissioner of Education or his or her designee.
  350         (g) The executive director of The Arc of Florida or his or
  351  her designee.
  352         (h) An Arc of Florida family board member appointed by the
  353  executive director of The Arc of Florida.
  354         (i) The chair of the Family Care Council Florida or his or
  355  her designee.
  356         (j) A parent representative from the Family Care Council
  357  Florida appointed by the chair of the Family Care Council
  358  Florida.
  359         (3)(a) The Agency for Persons with Disabilities shall
  360  provide administrative support to the study group.
  361         (b) Members of the study group shall serve without
  362  compensation but are entitled to reimbursement for per diem and
  363  travel expenses as provided in s. 112.061, Florida Statutes.
  364         (4) The study group shall continue until enrollment in the
  365  Prepaid Developmental Disabilities Savings Program has
  366  commenced, at which time the study group is abolished.
  367         Section 3. If any provision of this act or the application
  368  thereof to any person or circumstance is held invalid, the
  369  invalidity shall not affect other provisions or applications of
  370  the act which can be given effect without the invalid provision
  371  or application, and to this end the provisions of this act are
  372  declared severable.
  373         Section 4. This act shall take effect July 1, 2010.

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