Original Notice.

     Preproposal statement of inquiry was filed as WSR 01-03-029.

     Title of Rule: Developmental disabilities endowment trust fund.

     Purpose: To establish the rules governing the developmental disabilities endowment fund as directed in RCW 43.330.240.

     Statutory Authority for Adoption: RCW 43.330.240.

     Statute Being Implemented: RCW 43.330.195 through 43.330.240.

     Summary: These rules will govern the developmental disabilities endowment fund.

     Reasons Supporting Proposal: These rules are necessary for the endowment fund to begin operations.

     Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Jeanne Marie Thomas, 906 Columbia Street S.W., Olympia, WA 98504-8350, (360) 725-2862.

     Name of Proponent: Developmental Disabilities Endowment Fund Governing Board, governmental.

     Rule is not necessitated by federal law, federal or state court decision.

     Explanation of Rule, its Purpose, and Anticipated Effects: These rules will govern the developmental disabilities endowment fund. These rules establish eligibility requirements, matching policies, dispute processes and other essential aspects of the endowment fund.

     Proposal does not change existing rules.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. These proposed rules do not have an economic impact on small businesses.

     Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The rules do not meet the definition of a significant legislative rule.

     Hearing Location: Spokane Community College, 810 North Greene Street, Spokane, WA 99217-5399, on December 13, 2001, at 7:00 p.m. - 9:00 p.m.; and at Tacoma Community College, 6501 South 19th Street, Tacoma, WA 98466, on December 17, 2001, at 10:00 a.m. - 12:00 p.m.

     Assistance for Persons with Disabilities: Contact Rick Torrance by December 6, 2001, TDD (360) 586-4224, or (360) 725-2851.

     Submit Written Comments to: Rick Torrance, Department of Community, Trade and Economic Development, 906 Columbia Street S.W., P.O. Box 48350, Olympia, WA 98504-8350, fax (360) 586-0489, richardt@cted.wa.gov, by December 17, 2001.

     Date of Intended Adoption: January 7, 2002.

November 5, 2001

Martha Choe

Director

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     "Department" means the Department of Community, Trade and Economic Development, Office of Community Development.

     "Disbursement Manager" means the person or persons designated by the Governing Board who must authorize all disbursements from the Endowment Fund. The Disbursement Manager will consider the disbursement plan filed by the primary donor when making decisions regarding disbursements. The Disbursement Manager is obligated to take into account how any individual disbursement will affect the ability of the account to sustain the needed disbursements over the lifetime of the beneficiary.

     "Disbursement Plan" means a plan, submitted by the primary donor at the time of enrollment, that identifies the goods or services most likely to be appropriate to the supplemental needs of the Beneficiary. The primary donor may periodically change this by amending the joinder agreement.

     "Disposition Plan" means a plan, submitted by the primary donor at the time of enrollment that directs how funds will be disbursed upon the death of the beneficiary.

     "Governing Board" means the seven-member group established to design and administer the Endowment Fund, according to RCW 43.330.210

     "Individual Trust Account" means an account established within the Endowment Trust Fund for an individual beneficiary.

     "Joinder Agreement" means an agreement establishing the primary donor's consent to the master trust document for the Endowment Fund. This includes the disbursement plan and the disposition plan, and designates the primary representative and additional persons authorized to request disbursements.

     "Primary Donor" means the person who sets up an account for a beneficiary and submits and signs the joinder agreement. The primary donor may be the beneficiary.

     "Primary Representative" means the person named in the joinder agreement with whom the Governing Board and/or the Disbursement Manager is authorized to communicate regarding an individual beneficiary's interests.

     "Program Manager" means the person designated by the Department to manage the Developmental Disabilties Endowment Fund and act as the Department liaison with other state agencies to facilitate Governing Board activities.

     "Resident" means a person who lives in the state of Washington. For purposes of the Endowment Fund, a beneficiary must be a resident.

     "Vesting" means to become qualified for matching funds.

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     Reviser's note: The spelling error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.DISBURSEMENTS
NEW SECTION
WAC 365-220-020   Who authorizes disbursements?   The Disbursement Manager will review all disbursement requests. Only the Disbursement Manager may authorize disbursements.

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     1. Education, information, and training opportunities

     2. Living arrangements, including personal assistance services, skill building, financial management, medical monitoring, meal preparation, shopping, home maintenance, and house cleaning

     3. Unusual or extraordinary disability-related shelter expenses

     4. Capital expenses, including environmental modifications and transportation

     5. Employment supports and tuition

     6. Social productivity and personal fulfillment activities, such as volunteering, club membership, and recreation

     7. Assistive technology, including computers and electronic equipment

     8. Clothing, including specialized clothing

     9. Respite care

     10. Disability-related support groups

     11. Medical care, counseling, therapies, and other health related services, including alternative practitioners

     12. Utility and transportation costs

     13. Vacation, travel, and recreation

     14. Birthday and holiday presents

     15. Advocacy and legal services

     16. Individual trust account fees including enrollment, bookkeeping, tax filing and annual management expenses

     17. Items the Disbursement Manager deems appropriate and reasonable

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     When an individual account is closed upon the death of the beneficiary, the matching portion and any related interest will be returned to the Developmental Disabilities Endowment Trust Fund.

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     (a) The name and mailing address of the appealing party;

     (b) A description of the decision being appealed; and

     (c) A statement explaining why the appealing party believes the decision was incorrect, outlining the facts surrounding the decision and including supporting documentation.

     (2) Upon receiving the letter of appeal, the Program Manager will send notification to the appealing party, confirming the appeal has been received and indicating when a decision can be expected.

     (3) The Governing Board or its designee will conduct appeals according to RCW 34.05.485. The Governing Board or its designee will review and decide the appeal based on the submitted documents unless the Governing Board or its designee and the appealing party agree to hold a hearing in person or by telephone.

     (4) The Program Manager will send the appealing party written notification of the Governing Board or its designee's initial decision within sixty days of receiving the letter of appeal. The notification will include the reasons for the initial decision, and instructions on further appeal rights.

     (5) The initial decision of the Governing Board or its designee becomes the final decision unless the Program Manager receives a request for a review hearing from the appealing party within thirty days of the date of the decision. The appealing party may request review of the initial decision in writing. The person requesting review must reference the initial decision and provide any additional written information that the appealing party would like considered in the review. A review officer designated by the Governing Board will review the decision through a hearing conducted under RCW 34.05.488 through RCW 34.05.494.

     (6) The officer will review and decide the appeal based on submitted documents unless the Governing Board or its designee and the appealing party agree to hold a hearing in person or by telephone.

     (7) The review officer will make any inquiries necessary to determine whether the proceeding must become a formal adjudicative proceeding under the provisions of chapter 34.05 RCW.

     (8) If the appealing party disagrees with a review decision under subsection (6) of this section, the appealing party may request judicial review of the decision, as provided for in RCW 34.05.542. Request for judicial review must be filed with the court within thirty days of service of the final agency decision.

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A	The balance of the account will be placed in another existing special needs trust. Any costs relating to the transfer will be charged to the beneficiary's account.

B	The account will remain open, and the account will be assessed fees at a level that will support all costs of maintaining the account. The beneficiary will no longer be eligible for the state match.

     The primary donor is required to notify the Disbursement Manager if the beneficiary moves out of the State of Washington.

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A	The balance of the account will be placed in another existing special needs trust. Any costs relating to the transfer will be charged to the beneficiary's account.

B	The account will remain open, and the account will be assessed fees at a level that will support all costs of maintaining the account. The beneficiary will no longer be eligible for the state match.

     The primary donor is required to notify a representative of the Endowment Fund if the beneficiary is found to no longer meet the definition of developmental disability in Revised Code of Washington 71A.10.020.

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     1. State Investment Board Fees

     All investment and operating costs associated with the investment of money shall be paid to the State Investment Board from the earnings of the Fund, as required by RCW 43.33A.160.

     2. State Treasurer Fees

     Fees charged for the services of the State Treasurer will not exceed .00274% per day while funds remain in the custody of the State Treasurer, as specified in RCW 43.08.190.

     3. Annual Management Fees

     An annual management fee will be charged to each account for services including bookkeeping, tax filing, banking services, Governing Board and Department activities, legal services, and other expenses deemed necessary by the Governing Board. The Governing Board shall authorize all changes in the annual management fees, and primary representatives will be notified sixty days in advance of the effective date of any changes in the annual management fees.

     4. Enrollment Fees

     Each individual trust account will be charged a $600 enrollment fee. A minimum of $200 of this fee will be due at the time of enrollment. The Governing Board shall authorize all changes in the enrollment fees, and primary representatives will be notified sixty days in advance of the effective date of any changes in Enrollment fees.

     5. Disbursement Manager Fees

     Fees for disbursement manager services will be charged privately according to the terms of the contract between the Disbursement Manager and the Developmental Disabilities Endowment Trust Fund. Current fee levels will be disclosed prior to enrollment. The Governing Board shall authorize all changes in the disbursement manager fees, and primary representatives will be notified sixty days in advance of the effective date of any changes in disbursement manager fees.

     6. Tax Filing Fees

     When needed, the costs associated with filing taxes for individual accounts will be deducted from those accounts. Current fee levels will be disclosed prior to enrollment. The Governing Board shall authorize all changes in tax filing fees, and primary representatives will be notified sixty days in advance of the effective date of any changes in tax filing fees.

     7. Fees for Locating Recipients Named in the Disposition Plan

     The Endowment Fund reserves the right to charge fees to cover the costs associated with locating any parties named as recipients in the disposition plan.

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     The State of Washington and the Developmental Disabilities Endowment Governing Board make no guarantee related to the return on investments of money placed in the individual accounts or in the Endowment Fund.

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     Once earned, the match will be allocated with interest based on the date of the first contribution to a qualified account.

     Accounts do not need to vest in order to be qualified for the enrollment match or the annual management fee match.

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     Below are three examples of accounts with cumulative totals that would qualify as active accounts for each of the three years represented:

YEAR	ACCOUNT #1 CONTRIBUTIONS	ACCOUNT #2 CONTRIBUTIONS	ACCOUNT #3 CONTRIBUTIONS
Year 1	$300.00	$600.00	$900.00
Year 2	$300.00	0	0
Year 3	$300.00	$300.00	0

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     If a beneficiary has multiple accounts, and if an account for which they have vested is closed, vesting and access to the match are automatically transferred to the next earliest account opened for that beneficiary.

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