PERMANENT RULES
TRADE AND ECONOMIC DEVELOPMENT
Date of Adoption: March 11, 2002.
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.
Adopted under notice filed as WSR 01-22-111 on November 7, 2001.
Changes Other than Editing from Proposed to Adopted Version:
| Section | Change |
| WAC 365-220-015 | There were three changes in this section: 1. The eligibility requirements have been removed from the definition of beneficiary. 2. "Disbursement manager" has been changed to "trust manager" to coincide with the master trust documents. This change is applied to the entire chapter. 3. The definition of vest has been changed to improve clarity. |
| WAC 365-220-020 | The agency has added that upon request, the trust manager will provide a written explanation of disbursement denials. |
| WAC 365-220-025 | 1. This section has been changed to
emphasize that disbursements will
primarily be used for supplemental
needs. 2. The purchase of a vehicle has been added to item twelve as a type of allowable disbursement. 3. Item fourteen has been changed to clarify that presents are an allowable type of disbursement when they are for the beneficiary to give to others. |
| WAC 365-220-035 | This is a new section that clarifies that there are no restrictions on when disbursements can be requested. The numbering of all sections following this section have been changed to reflect this insertion. |
| WAC 365-220-040 | This section has been changed to improve clarity. |
| WAC 365-220-045 | This section has been changed to add the clarification that the disposition plan may be changed by court order or other dispute resolution mechanism allowed by law. |
| WAC 365-220-050 | This section now includes the clarification that disputes may precede beyond the governing board or its designee, as implied in WAC 365-220-055. |
| WAC 365-220-060 | The eligibility requirements have been changed to increase clarity. |
| WAC 365-220-065 | This section has been changed to improve clarity. |
| WAC 365-220-070 and 365-220-075 | Both these sections have been changed to give the governing board more flexibility when the eligibility status of a beneficiary changes. |
| WAC 365-220-080 | There were several changes in this section: 1. Under State Investment Board fees, RCW 43.84.160 has been added at the request of the State Investment Board. 2. Under State Treasurer fees, it has been clarified that these fees will be paid from the fund. 3. Under annual management fees, tax filing services has been deleted because these services will be paid through a separate fee. In addition, language has been added indicating that the governing board has the authority to establish a minimum and a maximum annual management fee. 4. Under enrollment fee, the statement that a minimum of $200.00 is due at the time of enrollment has been deleted. In addition, language has been added that gives the governing board the authority to raise the enrollment fee within the Initiative 601 limits. 5. The trust manager fees explanation has been changed to improve clarity. 6. Tax filing fees has been changed to tax filing and preparation fees as the trust fund will both prepare and file taxes for individual trust accounts. 7. Fees for locating remainder beneficiaries has been changed to explain that such fees will only be assessed against accounts requiring this service. |
| WAC 365-220-085 | This section has been changed to improve clarity and indicate that the governing board may open more reserved spaces in the future. |
| WAC 365-220-095 | This section was changed for clarity and to explain that the governing board has the responsibility to determine the disposition of any remaining funds. |
| WAC 365-220-105 | This section was changed to improve clarity and to add the State Investment Board to the list of entities that make no guarantees regarding returns on investments. |
| WAC 365-220-110 | This section has been changed to improve clarity. |
| WAC 365-220-115 | This section has been changed to improve clarity. |
| WAC 365-220-120 | This section has been changed to clarify the distinction between vesting and maintaining an active account. The table showing examples of accounts that would vest after three years has been expanded for further clarification. |
| WAC 365-220-125 | This section has been changed to clarify the distinction between vesting and maintaining an active account. The table showing examples of accounts that would vest after three years has been moved to the previous section. |
| WAC 365-220-130 | This section has been changed for clarity and to remove the specified time that primary representatives will be notified prior to losing access to state matching money. |
| WAC 365-220-135 | This section has been changed to improve clarity. |
| WAC 365-220-140 | This section has been changed to improve clarity. |
| WAC 365-220-145 | This section has been changed to emphasize that state matching money is not available for private contributions withdrawn in the same year that they are contributed. In addition, it has been changed to add that the governing board has the authority to change the matching rate on contributions. |
| WAC 365-220-150 | This section has been changed to improve clarity and to indicate that the governing board has the authority to change the maximum lifetime contributions eligible for state matching money. |
| WAC 365-220-155 | This section has been changed to improve clarity and to add that the governing board has the authority to change the maximum annual contributions eligible for state matching money. |
| WAC 365-220-160 | This section has been changed to improve clarity. |
| WAC 365-220-165 | This section has been changed to improve clarity. |
| WAC 365-220-170 | This section has been changed to improve clarity. |
| WAC 365-220-175 | This section has been changed to improve clarity. |
| WAC 365-220-180 | This section has been changed to improve clarity. |
| WAC 365-220-185 | This section has been changed to explain that the governing board has the authority to increase the enrollment match, and specify that the enrollment match may be earned prior to vesting but may not be spent prior to vesting. |
| WAC 365-220-190 | This section was changed to remove the dollar amount at which the annual management fee match begins. This section now specifies that the annual management fee match may be earned prior to vesting but may not be spent prior to vesting. |
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 38, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making:
New 0,
Amended 0,
Repealed 0;
Pilot Rule Making:
New 0,
Amended 0,
Repealed 0;
or Other Alternative Rule Making:
New 0,
Amended 0,
Repealed 0.
Effective Date of Rule:
Thirty-one days after filing.
February 25, 2002
Martha Choe
Director
OTS-5514.1
DEVELOPMENTAL DISABILITIES ENDOWMENT TRUST FUND
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"Department" means the department of community, trade and economic development, office of community development.
"Disbursement plan" means a plan, submitted by the primary donor at the time of enrollment as part of the joinder agreement, that identifies the goods or services most likely to be appropriate to the supplemental needs of the beneficiary. The primary donor may periodically change the disbursement plan by amending the joinder agreement.
"Disposition plan" means a plan, submitted by the primary donor at the time of enrollment as part of the joinder agreement, that directs how any remaining private funds will be disbursed from the individual trust account on the death of the beneficiary.
"Governing board" means the seven-member group established according to RCW 43.330.210 to design and administer the trust fund.
"Individual trust account" means the account that holds assets for the benefit of an individual beneficiary within the trust fund.
"Joinder agreement" means an agreement establishing the primary donor's consent to the master trust document for the trust fund. The joinder agreement shall include the disbursement plan and the disposition plan for the individual trust account, and designate 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. Under conditions described in the master trust document, 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 trust manager is authorized to communicate regarding an individual beneficiary's interests.
"Program manager" means the person designated by the department to manage the developmental disabilities 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 trust fund, a beneficiary must be a resident.
"Trust manager" means the person or persons or entity designated by the governing board pursuant to RCW 43.330.200 to authorize disbursements from the trust fund. The trust manager is authorized to make disbursements in its discretion consistent with and as authorized under this chapter and will consider the disbursement plan filed by the primary donor as part of the joinder agreement when making decisions regarding disbursements. The trust manager shall take into account how any individual disbursement will affect the ability of the account to sustain the needed disbursements over a significant portion of the beneficiary's anticipated remaining life.
"Vested account" means an account that has initially qualified for matching funds by meeting requirements over a three-year period.
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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) Specialized clothing, or clothing not covered by public benefits.
(9) Respite care.
(10) Disability-related support groups.
(11) Medical care, counseling, therapies, and other health related services, including alternative practitioners, not covered by public benefits.
(12) Utility and transportation costs, including the purchase of a vehicle.
(13) Vacation, travel, and recreation.
(14) Birthday and holiday presents for the beneficiary to give to others.
(15) Advocacy and legal services.
(16) Individual trust account expenses including enrollment, bookkeeping, tax return preparation and filing, tax payments, annual management expenses, and other trust related fees.
(17) Items the trust manager deems appropriate and reasonable within the guidelines of the governing board.
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DISPOSITION PLAN
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DISPUTES
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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) On receiving the letter of appeal, the program manager will send written notice to the appealing party within fourteen days, 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 ninety days of receiving the letter of appeal. The notice 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, by written notice, request review of the initial decision. 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 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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ELIGIBILITY(1) Beneficiaries must reside in Washington state; and
(2) Must meet the definition of developmental disability in RCW 71A.10.020(3).
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| A | The balance of the beneficiary's individual trust account will be placed in another existing special needs trust established for the beneficiary. Any costs relating to the transfer will be charged to the beneficiary's individual trust account. |
| B | The individual trust 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 as of the date the beneficiary ceases to be a resident of Washington. |
| C | The beneficiary's individual trust account will be terminated and distributed as if the beneficiary had died. |
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| A | The balance of the beneficiary's individual trust account will be placed in another existing special needs trust established for the beneficiary. Any costs relating to the transfer will be charged to the beneficiary's individual trust account. |
| B | The beneficiary's individual trust 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 as of the date the beneficiary is determined to no longer meet the definition of a person with a developmental disability in RCW 71A.10.020(3). |
| C | The trust manager will make or direct distributions to or for the benefit of the beneficiary. |
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FEES(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 trust fund, as required by RCW 43.33A.160 and 43.84.160.
(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. State treasurer fees will be deducted from the trust fund.
(3) Annual management fees. An annual management fee will be charged to each individual trust account for services including bookkeeping, 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. The governing board may establish a minimum and a maximum annual management fee. Primary representatives of existing accounts will be notified sixty days in advance of the effective date of any changes in the minimum or maximum annual management fees.
(4) Enrollment fees. Each individual trust account will be charged a six hundred dollar enrollment fee. The governing board may increase the enrollment fee on an annual basis, within the limits set forth in RCW 43.135.055. The governing board shall authorize all changes in enrollment fees.
(5) Trust manager fees. Fees for trust manager services will be charged by the entity under contract for trust management according to the terms of the contract between the trust 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 trust manager fees. Primary representatives of existing accounts will be notified sixty days in advance of the effective date of any changes in trust manager fees.
(6) Tax return preparation and filing fees. As necessary, the fees associated with preparing and filing tax returns for individual trust 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 return preparation and filing fees. Primary representatives of existing accounts will be notified sixty days in advance of the effective date of any changes in tax return preparation and filing fees.
(7) Fees for locating remainder beneficiaries named in the disposition plan. The trust fund reserves the right to charge fees to cover the costs associated with locating any remainder beneficiary under the disposition plan. Fees for locating a remainder beneficiary of an individual trust account will be levied only against such accounts.
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TRANSFERRING ACCOUNTS
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MATCHING MONEY AND EARNINGSThe state of Washington, the state investment board, and the governing board make no guarantee related to the return on investments of money placed in the individual trust accounts or in the trust fund.
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| MONTH | ACCOUNT 1 | ACCOUNT 2 | ACCOUNT 3 |
| 1 | $25.00 | $300.00 | $900.00 |
| 2 | $25.00 | ||
| 3 | $25.00 | ||
| 4 | $25.00 | ||
| 5 | $25.00 | ||
| 6 | $25.00 | ||
| 7 | $25.00 | ||
| 8 | $25.00 | ||
| 9 | $25.00 | ||
| 10 | $25.00 | ||
| 11 | $25.00 | ||
| 12 | $25.00 | ||
| 13 | $25.00 | $300.00 | |
| 14 | $25.00 | ||
| 15 | $25.00 | ||
| 16 | $25.00 | ||
| 17 | $25.00 | ||
| 18 | $25.00 | ||
| 19 | $25.00 | ||
| 20 | $25.00 | ||
| 21 | $25.00 | ||
| 22 | $25.00 | ||
| 23 | $25.00 | ||
| 24 | $25.00 | ||
| 25 | $25.00 | $300.00 | |
| 26 | $25.00 | ||
| 27 | $25.00 | ||
| 28 | $25.00 | ||
| 29 | $25.00 | ||
| 30 | $25.00 | ||
| 31 | $25.00 | ||
| 32 | $25.00 | ||
| 33 | $25.00 | ||
| 34 | $25.00 | ||
| 35 | $25.00 | ||
| 36 | $25.00 | ||
| Total | $900.00 | $900.00 | $900.00 |
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If a beneficiary has only one individual trust account, and that account is closed after it has vested, the next individual trust account opened for that beneficiary and assigned access to state matching money will be eligible to receive matching funds, subject to the first come, first served policy.
If a beneficiary has multiple individual trust accounts, and if an individual trust account for which they have vested is closed, vesting and access to the match are automatically transferred to another individual trust account for that beneficiary, with the transfer made to the longest existing account first.
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The annual management fee match may be earned prior to vesting but may not be spent prior to vesting. Matching funds allocated for this purpose will not count against the beneficiary's maximum annual or lifetime match.
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