1Amending Title 20 (Decedents, Estates and Fiduciaries) of the
2Pennsylvania Consolidated Statutes, further providing for
3pooled trusts for persons with disabilities.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Section 7799.3 heading and subsections (f) and
7(h) of Title 20 of the Pennsylvania Consolidated Statutes are
8amended to read:

9§ 7799.3. Pooled trusts for [persons] individuals with
10disabilities.

11* * *

12(f) Notice.--The Office of Attorney General and the
13Department of Public Welfare shall make available information on
14the treatment of pooled trusts for the [persons] individuals
15with disabilities in the medical assistance program.

16* * *

17(h) Definitions.--As used in this section, the following

1words and phrases shall have the meanings given to them in this
2subsection:

3"Beneficiary." An individual with a disability who has the 
4right to receive services and benefits of a pooled trust.

5"Board." A group of persons vested with the management of 
6the business affairs of a trustee.

7"Disability." A physical or mental impairment as defined in 
8section 1614 of the Social Security Act (49 Stat. 620, 42 U.S.C. 
9§ 1382c).

10"Pooled trust." A trust which meets all of the following:

11(1) The trust contains assets of more than one
12beneficiary.

13(2) Each beneficiary [has] is an individual with a
14disability.

15(3) The trust is managed by a nonprofit corporation.

16(4) A separate account is maintained for each
17beneficiary of the trust, but, for purposes of investment and
18management of funds, the trust pools these accounts. Accounts
19in the trust may be established by the parent, grandparent or
20legal guardian of the individual with a disability, by the
21individual with a disability or by a court.

22(5) [Upon the death of a beneficiary or upon the earlier
23termination of the trust, amounts remaining in the
24beneficiary's account must be distributed in accordance with
25one of the following:

26(i) The trust may retain up to 50% of the remaining
27balance for the benefit of other beneficiaries. The
28remaining 50% of the balance must be reimbursed to the
29Commonwealth and any other state that provided medical
30assistance up to an amount equal to the total amount of

1medical assistance paid on behalf of the beneficiary.

2(ii) The amounts must be used to reimburse the
3Commonwealth and any other state that provided medical
4assistance up to an amount equal to the total amount of
5medical assistance paid on behalf of the beneficiary.] <-To 
6the extent that amounts remaining in the beneficiary's 
7account upon the death of the beneficiary are not 
8retained by the trust, the trust pays from the remaining 
9amounts in the account to the Commonwealth and any other 
10state that provided medical assistance an amount equal to 
11the total amount of medical assistance paid on behalf of 
12the beneficiary. <-The trust provides that any money 
13remaining in a beneficiary's account upon the death of 
14the beneficiary that is not retained by the trust will be 
15paid to the Commonwealth, up to the total amount of 
16medical assistance paid on behalf of the beneficiary.

17"Trustee." A nonprofit organization that manages a pooled 
18trust.

19Section 2. This act shall take effect in 60 days.