POOLED TRUST ACT - REPEALED — 2002 Pa. Act 168 (historical enacted text)

Historical Act text

SENATE AMENDED
PRIOR PRINTER'S NOS. 2319, 3377 PRINTER'S NO. 4006
INTRODUCED BY REINARD, O'BRIEN, L. I. COHEN, CORRIGAN,
FAIRCHILD, HARHAI, HENNESSEY, MARSICO, MICHLOVIC, MICOZZIE,
NICKOL, PIPPY, STEELMAN, E. Z. TAYLOR, C. WILLIAMS,
T. STEVENSON AND WATERS, JUNE 19, 2001
SENATOR MOWERY, PUBLIC HEALTH AND WELFARE, IN SENATE, AS
AMENDED, JUNE 11, 2002
AN ACT
1 Providing for pooled trusts for persons with disabilities.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Short title.
5 This act shall be known and may be cited as the Pooled Trust
6 Act.
7 Section 2. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "Beneficiary." An individual with a disability who has the
12 right to receive services and benefits of a pooled trust.
13 "Board." A group of persons vested with the management of
14 the business affairs of a trustee.
15 "Disability." A physical or mental impairment as defined in
1 section 1614 of the Social Security Act (49 Stat. 620, 42 U.S.C.
2 § 1382c).
3 "Pooled trust." A trust which meets all of the following:
4 (1) Contains assets of more than one beneficiary.
5 (2) Each beneficiary has a disability.
6 (3) It is managed by a nonprofit corporation.
7 (4) A separate account is maintained for each
8 beneficiary of the trust, but, for purposes of investment and
9 management of funds, the trust pools these accounts. Accounts
10 in the trust may be established by the parent, grandparent or
11 legal guardian of the individual with a disability, by the
12 individual with a disability or by a court.
13 (5) Upon the death of a beneficiary, amounts remaining
14 in the beneficiary's accounts are retained by the trust for <--
15 the benefit of other beneficiaries, or other individuals with
16 disabilities. IN THE BENEFICIARY'S ACCOUNTS ARE: <--
17 (I) RETAINED BY THE TRUST FOR THE BENEFIT OF OTHER
18 BENEFICIARIES, OR OTHER INDIVIDUALS WITH DISABILITIES; OR
19 (II) USED TO REIMBURSE THE COMMONWEALTH IN AN AMOUNT
20 EQUAL TO THE TOTAL AMOUNT OF MEDICAL ASSISTANCE PAID ON
21 BEHALF OF THE BENEFICIARY.
22 "Trustee." A nonprofit organization which manages a pooled
23 trust.
24 Section 3. Organization of a pooled trust.
25 (a) Administration.--A pooled trust shall be administered by
26 a trustee governed by a board. The trust may employ persons as
27 necessary.
28 (b) Fiduciary status of board.--The members of a board and
29 employees of a trustee, if any, shall stand in a fiduciary
30 relationship to the beneficiaries and the trustee regarding
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1 investment of the trust and shall not profit, either directly or
2 indirectly, with respect thereto.
3 (c) Control and management.--A trustee shall maintain a
4 separate account for each beneficiary of a pooled trust, but for
5 purposes of investment and management of funds, the trustee may
6 pool theses THESE accounts. The trustee shall have exclusive <--
7 control and authority to manage and invest the money in the
8 pooled trust in accordance with this section, subject, however,
9 to the exercise of that degree of judgment, skill and care under
10 the prevailing circumstances that persons of prudence,
11 discretion and intelligence, who are familiar with investment
12 matters, exercise in the management of their affairs,
13 considering the probable income to be derived from the
14 investment and the probable safety of their capital. The trustee
15 may charge a trust management fee to cover the costs of
16 administration and management of the pooled trust.
17 (d) Conflict of interest.--A board member shall disclose and
18 abstain from participation in a discussion or voting on an issue
19 when a conflict of interest arises with the board member on a
20 particular issue or vote.
21 (e) Compensation.--No board member may receive compensation
22 for services provided as a member of the board. No fees or
23 commissions may be paid to a board member. A board member may be
24 reimbursed for necessary expenses incurred which are in the best
25 interest of the beneficiaries of the pooled trust as a board
26 member upon presentation of receipts.
27 (f) Disbursements.--The trustee shall disburse money from a
28 beneficiary's account only on behalf of the beneficiary. A
29 disbursement from a beneficiary's account shall be in the best
30 interest of the beneficiary.
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1 Section 4. Pooled trust fund.
2 All moneys received for pooled trust funds shall be deposited
3 with a court-approved corporate fiduciary or with the State
4 Treasury if no court-approved corporate fiduciary is available
5 to the trustee. The funds shall be pooled for investment and
6 management. A separate account shall be maintained for each
7 beneficiary, and quarterly accounting statements shall be
8 provided to each beneficiary by the trustee. The court-approved
9 corporate fiduciary or the State Treasury shall provide
10 quarterly accounting statements to the trustee. The court-
11 approved corporate fiduciary or the State Treasury may charge a
12 trust management fee to cover the costs of managing the funds in
13 the pooled trust.
14 Section 5. Reporting.
15 (a) Preparation and filing of annual financial report.--In
16 addition to reports required to be filed under 15 Pa.C.S. Part
17 III (relating to partnerships and limited liability companies),
18 the trustee shall file an annual report with the Secretary of <--
19 Public Welfare OFFICE OF ATTORNEY GENERAL along with an itemized <--
20 statement which shows the funds collected for the year, income
21 earned, salaries paid, other expenses incurred and the opening
22 and final trust balances. A copy of this statement shall be
23 available to the beneficiary, trustor or designee of the
24 trustor, upon request.
25 (b) Preparation of annual beneficiary's report.--The trustee
26 shall prepare and provide each trustor or the trustor's designee
27 annually with a detailed individual statement of the services
28 provided to the trustor's beneficiary during the previous 12
29 months and of the services to be provided during the following
30 12 months. The trustee shall provide a copy of this statement to
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1 the beneficiary, upon request.
2 Section 6. Coordination of services.
3 (a) Medical assistance.-- In the determination of
4 eligibility for medical assistance benefits, the interest of any
5 disabled beneficiary in a pooled trust shall not be considered
6 as a resource for purposes of determining the beneficiary's
7 eligibility for medical assistance.
8 (b) Reductions.--No State agency shall reduce the benefits
9 or services available to an individual because that person is a
10 beneficiary of a pooled trust. The beneficiary's interest in a
11 pooled trust shall not be reachable in satisfaction of a claim
12 for support and maintenance of the beneficiary.
13 Section 7. Notice.
14 The Department of Public Welfare OFFICE OF ATTORNEY GENERAL <--
15 shall make available information on the treatment of pooled
16 trusts for the persons with disabilities in the medical
17 assistance program.
18 Section 8. Applicability.
19 This act shall apply to pooled trusts established on or after
20 the effective date of this act and to the accounts of individual
21 beneficiaries established on or after the effective date of this
22 act in pooled trusts created before the effective date of this
23 act.
24 Section 9. Effective date.
25 This act shall take effect in 90 days.
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