84R1254 KFF-D
By: Lucio S.B. No. 1585
A BILL TO BE ENTITLED
AN ACT
relating to a study on the feasibility of establishing a prepaid
investment plan or other product to help citizens of this state
finance and access residential care.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) In this section:
(1) "Commission" means the Health and Human Services
Commission.
(2) "Executive commissioner" means the executive
commissioner of the Health and Human Services Commission.
(3) "Nursing facility" means a convalescent or nursing
home or related institution licensed under Chapter 242, Health and
Safety Code.
(4) "Residential care" means long-term services and
supports that are provided 24 hours a day in a residential setting
to persons who are elderly or have disabilities.
(b) The executive commissioner in cooperation with the
comptroller of public accounts and the commissioner of aging and
disability services shall conduct a study on the feasibility of
developing a program that is:
(1) modeled after the prepaid higher education tuition
program established under Subchapter F, Chapter 54, Education Code;
(2) administered by the state; and
(3) designed to provide a mechanism through which
citizens of this state may invest in a prepaid investment plan or
other product meant to supplement long-term care insurance by
providing participants additional financial support to cover the
cost of residential care.
(c) In conducting the study under Subsection (b) of this
section, the executive commissioner shall:
(1) evaluate existing systems and programs for
providing residential care in this state;
(2) evaluate the economic circumstances of the elderly
and low-income populations and persons with disabilities in this
state who are in need of residential care;
(3) consider alternative systems and programs for
providing and financing residential care that will increase the
affordability, sustainability, desirability, quality, and
cost-effectiveness of residential care in this state, taking into
consideration model systems and programs used in other states;
(4) consult with interested industry stakeholders as
well as other appropriate state and federal agencies;
(5) consider ways to encourage participation,
coordination, and involvement of the federal government and private
sector; and
(6) consider the possibility of developing a
tax-advantaged investment plan under which either contributions to
the plan are tax-deductible for federal income tax purposes or
distributions of earnings from the plan are not subject to federal
income tax.
(d) Not later than November 1, 2016, the executive
commissioner shall submit a written report containing the findings
of the study conducted under Subsection (b) of this section
together with the executive commissioner's recommendations to the
governor and the legislature. The recommendations must include
proposals for alternative systems described by Subsection (c)(3) of
this section that are developed based on the findings of the study.
(e) This section expires September 1, 2017.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.