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
18words and phrases shall have the meanings given to them in this

1subsection:

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

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

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

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

10(1) The trust contains assets of more than one
11beneficiary.

12(2) Each beneficiary [has] is an individual with a
13disability.

14(3) The trust is managed by a nonprofit corporation.

15(4) A separate account is maintained for each
16beneficiary of the trust, but, for purposes of investment and
17management of funds, the trust pools these accounts. Accounts
18in the trust may be established by the parent, grandparent or
19legal guardian of the individual with a disability, by the
20individual with a disability or by a court.

21(5) <-[Upon the death of a beneficiary or upon the earlier
22termination of the trust, amounts remaining in the
23beneficiary's account must be distributed in accordance with
24one of the following:

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

1paid 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.

13"Trustee." A nonprofit organization that manages a pooled 
14trust.

15Section 2. This act shall take effect in 60 days.