SENATE, No. 2237
STATE OF NEW JERSEY
INTRODUCED NOVEMBER 17, 1997
By Senators BASSANO, CONNORS and Lipman
An Act concerning placement trusts for persons with developmental disabilities, amending R.S.30:4-63, and amending and supplementing P.L.1985, c.424.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 9 of P.L.1985, c.424 (C.3B:11-27) is amended to read as follows:
9. a. The board may retain paid staff as it may deem necessary to provide follow-along services to the extent required by each beneficiary. The board may authorize the expenditure of funds for any goods or services which, in its sole discretion, it determines will promote the well-being of any beneficiary, including recreational services. The board may pay for the burial of any beneficiary. The board, however, may not expend funds for any goods or services of comparable quality to those available to any particular beneficiary through any governmental or charitable program, insurance, or other sources. The board may expend funds to meet the reasonable costs of administering the community trust.
The board is not required to provide services to a beneficiary who is a competent adult and who has refused to accept the services. Further, the board shall not provide services of a nature or in a manner that would be contrary to the public policy of this State at the time the services are to be provided. In either case, the board may offer alternative services that are consistent with the purposes of this act and in keeping with the best interests of the beneficiary.
The board may accept appointment as guardian of the person, guardian of the estate or guardian of both on behalf of any beneficiary. If the board accepts appointment as guardian of the person of an individual, it shall assign a staff member to carry out its responsibilities as the guardian. The board may, on request, offer consultative and professional assistance to an individual, private or public guardian of any of its beneficiaries.
b. Notwithstanding any law to the contrary, the board is authorized to enter into an agreement with the Division of Developmental Disabilities in the Department of Human Services, pursuant to rules and regulations adopted by the Commissioner of Human Services, to transfer trust funds to the division in return for the division's acceptance and use of these funds, subject to appropriation by the Legislature, to fund the cost of an appropriate residential functional services placement and, if a day program is needed, the cost of an appropriate day program, for a designated person who is a beneficiary of the community trust or any other person eligible for division services. The agreement may provide that if the transferred trust funds have been exhausted or are not presently necessary for funding the residential functional services placement and day program, if any, the division shall grant these placements the same priority in the apportionment of its legislative appropriations as a residential functional services placement and day program funded by the State. The division may require the transfer of funds to be irrevocable. The division shall place all funds received pursuant to this subsection in the Placement Trust Fund as required by paragraph (3) of subsection b. of R.S.30:4-63, subject to the terms and conditions set forth therein.
(cf: P.L.1985, c.424, s.9)
2. R.S.30:4-63 is amended to read as follows:
30:4-63. a. The court may, after final hearing, commit any patient to any State or county psychiatric institution irrespective of the patient's legal settlement where provision is made for his care and maintenance, in an amount approved by the State Board of Human Services or by the board of chosen freeholders, as the case may be. The patient may remain as a full paying patient in such institution as long as such sum shall be regularly paid out of the estate of such patient, or by the person or persons chargeable by law with his care and maintenance, or under contract. In the event that such sum cannot be paid because of a change in the financial circumstances of the patient or his legally responsible relatives then the court may make such order as may be necessary with regard to the manner and the amount of maintenance which shall be paid on behalf of the patient and by whom.
b. (1) The department may admit a person found eligible for functional services from the Division of Developmental Disabilities to a residential functional services placement irrespective of the person's legal settlement if provision is made for the payment of the full cost of the person's care and maintenance, in an amount approved by the State Board of Human Services. The person may remain as a full paying person in the residential functional services placement, or in another residential functional services placement deemed appropriate by the department, as long as the full per capita amount for the placement is regularly paid from the person's income, benefits, assets, resources or estate, or by the person chargeable by law or under contract with his care and maintenance.
(2) If an eligible person, legal guardian, legally responsible relative or other interested person has created a placement trust pursuant to section 3 of P.L. , c. (C. )(pending before the Legislature as this bill), the division may enter into an agreement with the trustor, trustee or beneficiary pursuant to rules and regulations adopted by the Commissioner of Human Services, to accept and use, subject to appropriation by the Legislature, the proceeds of the trust to pay the cost of an appropriate residential functional services placement for a designated person or any other person eligible for division services, and if a day program is needed, the cost of an appropriate day program. The agreement may provide that the transfer of funds is irrevocable and that if the placement trust funds are not presently necessary for funding the cost of the residential functional services placement and day program, if any, the division shall grant these placements the same priority in the apportionment of its legislative appropriations as a residential functional services placement and day program funded by the State.
(3) The division shall place all funds received pursuant to paragraph (2) of this subsection, subsection c. of this section, subsection b. of section 9 of P.L.1985, c.424 and section 3 of P.L. , c. (C. )(pending before the Legislature as this bill) in a special dedicated non-lapsing fund in the General Fund known as the Placement Trust Fund, which shall be administered by the State Treasurer. The Legislature may annually appropriate from the Placement Trust Fund an amount necessary to pay the cost of residential functional services placements and day programs, if needed, for persons eligible for division services. Monies remaining in the Placement Trust Fund and any unexpended balance of appropriations from the Placement Trust Fund at the end of each fiscal year shall be reappropriated for the purposes of the Placement Trust Fund. All interest earned on the fund shall be credited to the Placement Trust Fund.
c. If a person transfers funds sufficient to pay the cost of care and maintenance to the division through methods, including, but not limited to, contribution, gift, bequest or assignment or designation of life insurance proceeds or other similar methods for the benefit of a designated person or any other person eligible for division services, the department may admit the designated person or other person eligible for functional services from the Division of Developmental Disabilities to a residential functional services placement and an appropriate day program, if needed, irrespective of the person's legal settlement, pursuant to rules and regulations adopted by the Commissioner of Human Services. The division is authorized to accept the transfer and may require it to be irrevocable. The division shall place all funds received pursuant to this subsection in the Placement Trust Fund as required by paragraph (3) of subsection b. of this section, subject to the terms and conditions set forth therein.
(cf: P.L.1995, c.155, s.17)
3. (New section) A person may create a placement trust for the purpose of accruing sufficient funds to pay the cost of an appropriate residential functional services placement and, if a day program is needed, the cost of an appropriate day program, for a person eligible for services from the Division of Developmental Disabilities in the Department of Human Services. The trustor may establish terms governing the operation of the trust, including the designation of the division as beneficiary of the trust, which provide for a transfer of funds to the division from the proceeds of the trust sufficient to fund the cost of a residential functional services placement and day program, if needed, for a designated person or any other person eligible for division services .
4. The Commissioner of Human Services shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purposes of this act.
5. This act shall take effect immediately.
STATEMENT
This bill establishes placement trusts for persons with developmental disabilities and allows the Division of Developmental Disabilities in the Department of Human Services to accept the transfer of funds from placement trusts, community trust funds, or from other methods, including contributions, gifts, bequests or assignments or designations of life insurance proceeds, to pay for residential functional services placements and day programs for a designated person or any other person eligible for division services. Also, the bill specifies that the transfer of funds may be irrevocable in order to assure that the division will receive the funds once there has been an agreement to provide the services at a future point.
This bill allows the division to work collaboratively with families to provide a service at a mutually agreed upon point in time and, therefore, should provide a family with some peace of mind concerning their loved one. Also, the bill allows a family to pay directly for the cost of residential care for a fixed period of time, but the family does not have the burden of locating a placement on their own.
For community trust funds, the board administering the funds may enter into an agreement with the division to transfer trust funds to the division in return for the division's acceptance and use of these funds, subject to appropriation by the Legislature, to fund the cost of an appropriate residential functional services placement and, if a day program is needed, the cost of an appropriate day program for a designated person who is a beneficiary of the community trust or any other person eligible for division services. The agreement may stipulate that if the funds have been exhausted or are not presently necessary for funding the placement and day program, the division shall grant these placements the same priority in the apportionment of its legislative appropriations as those placements funded by the State.
The bill provides that a person may create a placement trust for the purpose of accruing sufficient funds to pay the cost of an appropriate residential functional services placement and, if a day program is needed, the cost of an appropriate day program. The division may enter into an agreement with the trustor, trustee or beneficiary, pursuant to rules and regulations adopted by the Commissioner of Human Services, to accept and use, subject to appropriation by the Legislature, the proceeds of the trust to pay the cost of an appropriate residential functional services placement and a day program, if needed, for a designated person or any other person eligible for division services. The agreement may provide that if the trust funds are not presently necessary for funding the placement and day program, if any, the division shall grant these placements the same priority in the apportionment of its legislative appropriations as those placements funded by the State.
The division shall place all funds received pursuant to this bill in a special dedicated non-lapsing fund in the General Fund, known as the Placement Trust Fund, which shall be administered by the State Treasurer. The Legislature may annually appropriate from the Placement Trust Fund an amount necessary to pay the cost of residential functional services placements and day programs for persons eligible for division services. Monies remaining in the fund and any unexpended balance of appropriations at the end of each fiscal year shall be reappropriated for the purposes of the Placement Trust Fund. Also, all interest earned on the fund shall be credited to the Placement Trust Fund.
Establishes placement trusts for persons with developmental disabilities.