82R12718 SJM-D
By: Veasey H.B. No. 3070
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a social loan program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 531, Government Code, is amended by
adding Subchapter Z to read as follows:
SUBCHAPTER Z. CRISIS LOAN PROGRAM
Sec. 531.991. DEFINITIONS. In this subchapter:
(1) "Lone Star Card" means the card issued by the
commission to deliver benefits for the financial assistance program
under Chapter 31, Human Resources Code, and the supplemental
nutrition assistance program under Chapter 33, Human Resources
Code.
(2) "Program" means the social loan program created
under this subchapter.
Sec. 531.992. SOCIAL LOAN PROGRAM. (a) The commission
shall establish and implement the social loan program for the
purpose of making low-interest, short-term loans to low-income
individuals under emergency circumstances. The program shall
provide:
(1) lump-sum budgeting loans for the purpose of making
a substantial emergency household purchase, including an appliance
or fixture; and
(2) crisis loans for last resort assistance in paying
basic expenses, including food and gasoline, after the occurrence
of a personal emergency.
(b) The commission may charge interest on a loan made under
this subchapter for the purpose of covering the administrative
costs of the program. The interest charge for a loan made under
this subchapter may not exceed 15 percent a year.
(c) A loan made under this subchapter may not exceed $400.
(d) The executive commissioner shall adopt rules as
necessary to implement this subchapter.
Sec. 531.993. USE OF LOAN MONEY. (a) A loan made to a person
under this subchapter may be used only to purchase goods and
services that are considered essential and necessary for the
welfare of the loan recipient or the loan recipient's family not
covered by an assistance program listed under Section 531.994(1).
(b) The department by rule shall define what constitutes
essential and necessary goods and services for purposes of this
section.
Sec. 531.994. ELIGIBILITY. To be eligible to receive a loan
under the program, an individual must:
(1) be a recipient of assistance or benefits under:
(A) the financial assistance program under
Chapter 31, Human Resources Code;
(B) the medical assistance program under Chapter
32, Human Resources Code;
(C) the supplemental nutrition assistance
program under Chapter 33, Human Resources Code; or
(D) another appropriate health and human
services program, as defined by the executive commissioner by rule;
and
(2) demonstrate an immediate need for an essential or
necessary good or service as defined by rule under Section
531.993(b).
Sec. 531.995. LOAN APPLICATION. The executive commissioner
by rule:
(1) shall prescribe a standardized application form
for the purpose of applying for a loan under this subchapter; and
(2) may establish a set of priorities for making loans
under this subchapter.
Sec. 531.996. DISTRIBUTION OF LOAN. (a) Before
distributing loan money to a loan recipient under this subchapter,
the commission shall enter into a contract with the recipient that
provides the terms and conditions of the loan.
(b) The commission shall distribute loan money under this
subchapter using the loan recipient's Lone Star Card. If a loan
recipient has not been issued a Lone Star Card at the time a loan is
disbursed to the recipient, the commission shall issue a Lone Star
Card to the recipient for purposes of distributing the loan under
this subchapter.
Sec. 531.997. LOAN REPAYMENT. (a) As payment of a loan
recipient's loan debt under this subchapter, the commission shall
deduct payment on the loan from the assistance or benefits received
by the recipient under an assistance program listed in Section
531.994(1) at the rate and in the time provided in the contract
entered into under Section 531.996(a).
(b) A loan recipient under this subchapter shall repay the
loan in full not later than the first anniversary of the date on
which the loan was originally distributed.
Sec. 531.998. SOCIAL LOAN FUND. (a) The social loan fund is
created as an account in the general revenue fund. The account is
composed of:
(1) legislative appropriations;
(2) gifts, grants, donations, and matching funds
received under Subsection (b); and
(3) other money required by law to be deposited in the
account.
(b) The commission may solicit and accept gifts, grants, and
donations from any public or private source for the purposes of this
subchapter.
(c) Income from money in the account, including interest,
shall be credited to the account.
(d) Money in the account may be used only for the purposes of
this subchapter.
SECTION 2. Not later than December 1, 2012, the executive
commissioner shall:
(1) establish and implement the social loan program as
required by Subchapter Z, Chapter 531, Government Code, as added by
this Act; and
(2) adopt the rules required by Sections 531.992(d),
531.993(b), 531.994(1)(D), and 531.995, Government Code, as added
by this Act.
SECTION 3. This Act takes effect December 1, 2011, but only
if the constitutional amendment authorizing the legislature to
create a social loan program is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.