Current Status Introducing Body:Senate Bill Number:1103 Primary Sponsor:Bryan Committee Number:13 Type of Legislation:GB Subject:Self-Sufficiency Trust and Disability Funds Residing Body:Senate Companion Bill Number:4105 Computer Document Number:BR1/1939.AC Introduced Date:Jan 14, 1992 Last History Body:Senate Last History Date:Apr 29, 1992 Last History Type:Recommitted to Committee Scope of Legislation:Statewide All Sponsors:Bryan Peeler Fielding Hinds Hinson Rose Type of Legislation:General Bill
Bill Body Date Action Description CMN
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1103 Senate Apr 29, 1992 Recommitted to Committee 13
1103 Senate Apr 28, 1992 Committee Report: Favorable 13
with amendment
1103 Senate Jan 14, 1992 Introduced, read first time, 13
referred to Committee
1103 Senate Nov 25, 1991 Prefiled, referred to 13
Committee
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COMMITTEE REPORT
April 28, 1992
S. 1103
Introduced by SENATORS Bryan, Peeler, Fielding, Hinds, Hinson and Rose
S. Printed 4/28/92--S.
Read the first time January 14, 1992.
To whom was referred a Bill (S. 1103), to amend the Code of Laws of South Carolina, 1976, by adding Chapter 28 to Title 44 so as to establish the Self-Sufficiency Trust Fund, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by deleting Section 44-28-40(B), page 2, and inserting:
/(B) Upon proper certification by the South Carolina Department of Mental Retardation, the State Department of Mental Health, or the State Agency of Vocational Rehabilitation, the State Treasurer shall process vouchers from the Self-Sufficiency Trust Fund accounts for services provided pursuant to this section./
Amend further by deleting Section 44-28-80, page 3, and inserting:
/Section 44-28-80. For each Self-Sufficiency Trust, a separate interest bearing account must be established in the State Treasurer's office./
Amend further, Section 44-28-360, by adding at the end:
/These agencies are responsible only for the beneficiaries that meet their individual eligibility criteria./
Amend further by deleting Section 44-28-370, page 5, and inserting:
/Section 44-28-370. For each Disability Trust, a separate interest bearing account must be established in the State Treasurer's office./
Amend title to conform.
WARREN K. GIESE, for Committee.
1. Estimated Cost to State-First Year
$Indeterminate (see below)
2. Estimated Cost to State-Annually
Thereafter $Indeterminate (see below)
S. 1103 amends the 1976 Code of Laws of South Carolina by adding Chapter 28 to Title 44. The Bill establishes two (2) trust funds--The Self-Sufficiency Trust Fund and the Disability Trust Fund -- in the State Treasury, separate and distinct from the General Fund. Both funds would be exempt from Federal income taxes.
Both funds are intended to provide funds to aid developmentally disabled, mentally ill and physically handicapped persons who are eligible for services from the Department of Mental Health (DMH), the Department of Mental Retardation (DMR) or the State Agency of Vocational Rehabilitation (VR). The Bill provides that parents and families may contribute to the Trust Funds by setting up "self-sufficiency trusts" to purchase specific care for their disabled dependents that supplements care provided by DMH, DMR, or VR. The self-sufficiency trust mechanism avoids loss of other benefits and invasion of trust principal.
Both Trust Funds would be administered by the State Treasurer. DMH, DMR and VR are charged with promulgating regulations relating to the operation of the two Trust Funds. The number of people potentially affected by S. 1103 is not known and cannot be estimated with reasonable accuracy at this time.
Both DMH and DMR indicated that the additional workloads imposed on them by S. 1103 can be absorbed without additional staff or costs. However, the State Treasurer's Office indicates that they have no experience administering funds which require records to be maintained for individuals, and can therefore not make an accurate estimate of impact. The Vocational Rehabilitation Department indicates that S. 1103 conflicts with other provisions of law which prohibit it from providing services to persons with long-term disabilities. Accordingly, the fiscal impact from enactment of S. 1103, as written, is indeterminate.
This is a companion Bill to H. 4105.
Prepared By: Approved By:
Aaron Krute George N. Dorn, Jr.
State Budget Analyst State Budget Division
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 28 TO TITLE 44 SO AS TO ESTABLISH THE SELF-SUFFICIENCY TRUST FUND AND THE DISABILITY FUND TO PROVIDE FUNDS TO AID DEVELOPMENTALLY DISABLED, MENTALLY ILL, AND PHYSICALLY HANDICAPPED PERSONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
Section 44-28-10. There is established the Self-Sufficiency Trust Fund, separate and distinct from the general fund, in the State Treasury. The purpose of the Self-Sufficiency Trust Fund is to provide a life-care planning option to meet the supplemental service needs of individuals with disabilities in order to enable parents and families to plan a more secure future for their disabled dependents without fear of loss of benefits or invasion of trust principal.
Section 44-28-20. For the purpose of this chapter `a self-sufficiency trust' means a trust created by a nonprofit corporation exempt from federal income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986 and organized for purposes of providing care or treatment of one or more developmentally disabled, mentally ill, or physically handicapped persons eligible for services of the South Carolina Department of Mental Retardation, State Department of Mental Health, or the State Agency of Vocational Rehabilitation.
Section 44-28-30. (A) The State Treasurer is the custodian of the Self-Sufficiency Trust Fund and pursuant to an agreement with the trustee of a self-sufficiency trust may accept money from a self-sufficiency trust in the name of a beneficiary for deposit in the Self-Sufficiency Trust Fund. The treasurer shall maintain a separate account in the Self-Sufficiency Trust Fund for each named beneficiary and shall promptly credit the account of a beneficiary with money received from a self-sufficiency trust on behalf of that beneficiary.
(B) The agreement, naming one or more beneficiaries residing in this State who are developmentally disabled, mentally ill, or physically handicapped, must specify the supplemental care or treatment to be provided for each named beneficiary with the money deposited in the Self-Sufficiency Trust Fund.
Section 44-28-40. (A) The South Carolina Department of Mental Retardation, State Department of Mental Health, or the State Agency of Vocational Rehabilitation must provide care or treatment for a beneficiary from monies available from the beneficiary's account maintained in the Self-Sufficiency Trust Fund.
(B) The State Comptroller General shall make payments from the Self-Sufficiency Trust Fund to the South Carolina Department of Mental Retardation, the State Department of Mental Health, or the State Agency of Vocational Rehabilitation based on vouchers properly certified by the agency for services provided pursuant to this section.
Section 44-28-50. The receipt by a beneficiary of money from the Self-Sufficiency Trust Fund or of supplemental care or treatment provided with money from the fund may in no way reduce, impair, or diminish the benefits to which the beneficiary is otherwise entitled by law.
Section 44-28-60. If the State Treasurer after consultation with the South Carolina Department of Mental Retardation, the State Department of Mental Health, or the State Agency of Vocational Rehabilitation determines that the money in the account of a named beneficiary cannot be used for supplemental care or treatment of the beneficiary in a manner consistent with the agreement or upon request of the trustee of the self-sufficiency trust, the remaining money in the account and any accumulated interest promptly must be returned to the self-sufficiency trust which deposited the money in the Self-Sufficiency Trust Fund.
Section 44-28-70. The State Treasurer shall credit interest earned on the Self-Sufficiency Trust Fund to the fund and shall allocate the interest pro rata to the accounts of the named beneficiaries of the fund.
Section 44-28-80. (A) At the end of every month, the State Treasurer shall submit an accurate statement of transactions of the Self-Sufficiency Trust Fund to the Comptroller General. The statement must contain every sum of money received or paid, including the person and office receiving the funds, the person and office to whom funds were disbursed, and on which beneficiary's account money was received or paid and for what purpose.
(B) At any time upon the request of the Comptroller General, the State Treasurer shall produce statements of transactions concerning any matter of the Self-Sufficiency Trust Fund. These statements must be promptly furnished, certified, and must meet the satisfaction of the State Treasurer.
Section 44-28-90. The South Carolina Department of Mental Retardation, the State Department of Mental Health, and the State Agency of Vocational Rehabilitation shall promulgate regulations necessary for the implementation and administration of the Self-Sufficiency Trust Fund.
Section 44-28-310. There is established the Disability Trust Fund, separate and distinct from the general fund, in the State Treasury. The purpose of the Disability Trust Fund is to provide supplemental services to meet the needs of low income and indigent individuals with disabilities.
Section 44-28-320. The State Treasurer may accept for deposit in the Disability Trust Fund:
(1) monies left to the Disability Trust Fund by donors of a self-sufficiency trust defined in Article 1 of this chapter at the death of the disabled beneficiary; and
(2) bequests and contributions from private donors, corporations, or foundations.
Section 44-28-330. Monies in the Disability Trust Fund must be expended solely to provide supplemental services to meet the need for care or treatment for low income or indigent individuals with developmental disabilities, mental illness, or physical handicaps.
Section 44-28-340. The State Treasurer shall credit earned interest on the Disability Trust Fund to the fund.
Section 44-28-350. The receipt by a beneficiary of money from the trust fund or of supplemental care or treatment provided with money from the trust fund does not in any way reduce, impair, or diminish the benefits to which the beneficiary is otherwise entitled by law.
Section 44-28-360. The South Carolina Department of Mental Retardation, State Department of Mental Health, or State Agency of Vocational Rehabilitation must provide care or treatment for the beneficiary from monies available from the Disability Trust Fund.
Section 44-28-370. (A) At the end of every month, the State Treasurer shall submit an accurate statement of transactions of the Disability Trust Fund to the Comptroller General. The statement must contain every sum of money received or paid, including the person and office receiving the funds, the person and office to whom funds were disbursed, and on which beneficiary's account money was received or paid and for what purpose.
(B) At any time upon the request of the Comptroller General, the State Treasurer shall produce statements of transactions concerning any matter of the Disability Trust Fund. These statements must be promptly furnished, certified, and must meet the satisfaction of the State Treasurer.
Section 44-28-380. The South Carolina Department of Mental Retardation, the State Department of Mental Health, and the State Agency of Vocational Rehabilitation shall promulgate regulations necessary for the implementation and administration of the Disability Trust Fund."
SECTION 2. This act takes effect six months after approval by the Governor.