Texas 2011 - 82nd Regular

Texas Senate Bill SB63 Compare Versions

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1	1	By: Zaffirini, Davis S.B. No. 63
2	2	(Dukes)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of the individual development account
8	8	program to provide savings incentives and opportunities for certain
9	9	foster children to pursue home ownership, postsecondary education,
10	10	and business development.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 40, Human Resources Code, is amended by
13	13	adding Subchapter E to read as follows:
14	14	SUBCHAPTER E. ASSET DEVELOPMENT INITIATIVE FOR CERTAIN
15	15	FOSTER CHILDREN
16	16	Sec. 40.201. DEFINITIONS. In this subchapter:
17	17	(1) "Assets for Independence Act" means the federal
18	18	Assets for Independence Act (42 U.S.C. Section 604 note).
19	19	(2) "Financial institution" has the meaning assigned
20	20	by Section 201.101, Finance Code.
21	21	(3) "Individual development account" means a deposit
22	22	account established by a participant at a financial institution
23	23	selected by a sponsoring organization.
24	24	(4) "Participant" means an individual who has entered
25	25	into an agreement with a sponsoring organization to participate in
26	26	the program.
27	27	(5) "Program" means the individual development
28	28	account program established under this subchapter.
29	29	(6) "Service provider" means a person to whom a
30	30	qualified expenditure from a participant's individual development
31	31	account is made. The term includes:
32	32	(A) a public or private institution of higher
33	33	education;
34	34	(B) a provider of occupational or vocational
35	35	education, including a proprietary school;
36	36	(C) a mortgage lender;
37	37	(D) a title insurance company;
38	38	(E) the lessor or vendor of office supplies or
39	39	equipment or retail space, office space, or other business space;
40	40	and
41	41	(F) any other provider of goods or services used
42	42	for the start of a business.
43	43	(7) "Sponsoring organization" has the meaning
44	44	assigned to "qualified entity" by Section 404(7), Assets for
45	45	Independence Act, except that the term does not include a state
46	46	agency.
47	47	Sec. 40.202. ESTABLISHMENT OF PROGRAM; RULES. (a) The
48	48	executive commissioner by rule may develop and implement a program
49	49	under which:
50	50	(1) individual development accounts are facilitated
51	51	and administered by sponsoring organizations for eligible
52	52	individuals to provide those individuals with an opportunity to
53	53	accumulate assets and to facilitate and mobilize savings;
54	54	(2) sponsoring organizations are provided grant funds
55	55	for use in administering the program and matching qualified
56	56	expenditures made by program participants; and
57	57	(3) at least 85 percent of the grant funds described by
58	58	Subdivision (2) must be used by the sponsoring organization for
59	59	matching qualified expenditures.
60	60	(b) The department shall contract with sponsoring
61	61	organizations to facilitate the establishment of and to administer
62	62	the individual development accounts in accordance with the rules
63	63	adopted by the executive commissioner. The executive
64	64	commissioner's rules must include guidelines for contract
65	65	monitoring, reporting, termination, and recapture of state funds.
66	66	(c) In adopting rules under the program, the executive
67	67	commissioner shall state the selection criteria for sponsoring
68	68	organizations and give priority to organizations that have
69	69	demonstrated:
70	70	(1) a capacity to administer individual development
71	71	account programs; or
72	72	(2) a commitment to serve areas of this state that
73	73	currently do not have individual development account programs
74	74	available.
75	75	Sec. 40.203. PARTICIPANT ELIGIBILITY. (a) Only foster
76	76	children who are at least 15 years of age and younger than 23 years
77	77	of age may participate in the program.
78	78	(b) The executive commissioner by rule shall establish
79	79	eligibility criteria for participation in the program that are
80	80	consistent with the purposes of the program and with the Assets for
81	81	Independence Act.
82	82	Sec. 40.204. CONTRIBUTIONS AND EXPENDITURES BY
83	83	PARTICIPANT. (a) A participant may contribute to the
84	84	participant's individual development account.
85	85	(b) A participant's contributions to the participant's
86	86	individual development account shall accrue interest.
87	87	(c) A participant may withdraw money from the participant's
88	88	individual development account only to pay for the following
89	89	qualified expenditures:
90	90	(1) postsecondary education or training expenses for
91	91	the account holder;
92	92	(2) the expenses of purchasing or financing a home for
93	93	the account holder for the first time;
94	94	(3) the expenses of a self-employment enterprise; and
95	95	(4) start-up business expenses for the account holder.
96	96	Sec. 40.205. DUTIES OF SPONSORING ORGANIZATIONS. (a) The
97	97	executive commissioner shall adopt rules to establish the duties of
98	98	sponsoring organizations under the program.
99	99	(b) Each sponsoring organization shall provide to the
100	100	department any information necessary to evaluate the sponsoring
101	101	organization's performance in fulfilling the duties outlined in the
102	102	executive commissioner's rules.
103	103	Sec. 40.206. MATCHING FUNDS; LIMITATIONS ON AMOUNT AND
104	104	AVAILABILITY. (a) At the time a participant in the program makes a
105	105	withdrawal from the participant's individual development account
106	106	for a qualified expenditure described by Section 40.204(c), the
107	107	participant shall receive matching funds from the sponsoring
108	108	organization, payable directly to the service provider.
109	109	(b) The sponsoring organization shall determine the amount
110	110	of federal matching funds spent for each individual development
111	111	account as limited by the guidelines established by the Assets for
112	112	Independence Act.
113	113	(c) This subchapter does not create an entitlement of a
114	114	participant to receive matching funds. The number of participants
115	115	who receive matching funds under the program in any year is limited
116	116	by the amount of money available for that purpose in that year.
117	117	Sec. 40.207. WITHDRAWALS; TERMINATION OF ACCOUNT FOR
118	118	UNQUALIFIED WITHDRAWALS. (a) The executive commissioner by rule
119	119	shall establish guidelines to ensure that a participant does not
120	120	withdraw money from the participant's individual development
121	121	account except for a qualified expenditure described by Section
122	122	40.204(c).
123	123	(b) The sponsoring organization shall instruct the
124	124	financial institution to terminate a participant's account if the
125	125	participant does not comply with the guidelines established by
126	126	executive commissioner rule.
127	127	(c) A participant whose individual development account is
128	128	terminated under this section is entitled to withdraw from the
129	129	participant's account the amount of money the participant
130	130	contributed to the account and any interest that has accrued on that
131	131	amount.
132	132	Sec. 40.208. FUNDING. (a) The legislature may appropriate
133	133	money for the purposes of this subchapter.
134	134	(b) The department may solicit and accept gifts, grants, and
135	135	donations from any public or private source for the purposes of this
136	136	subchapter.
137	137	(c) If money is not appropriated to the department for the
138	138	purposes of this subchapter, the department is only required to
139	139	implement Section 40.209.
140	140	(d) Notwithstanding Subsection (a), money from the general
141	141	revenue fund and other state money may not be used for the purposes
142	142	of this subchapter for the state fiscal biennium ending August 31,
143	143	2013. This subsection expires September 1, 2013.
144	144	Sec. 40.209. COORDINATION. The department shall:
145	145	(1) serve as a clearinghouse for information relating
146	146	to state and local and public and private programs that facilitate
147	147	asset development; and
148	148	(2) post the information described by Subdivision (1)
149	149	on the department's Internet website.
150	150	Sec. 40.210. INTERAGENCY CONTRACTS. The department may
151	151	enter into interagency contracts with other state agencies to
152	152	facilitate the effective administration of this subchapter.
153	153	Sec. 40.211. AGENCY COOPERATION. To the extent allowed by
154	154	law, the commission shall provide information to the department as
155	155	necessary to implement this subchapter.
156	156	SECTION 2. This Act takes effect September 1, 2011.