75R12332 KKA-D                           

         By Maxey                                              H.B. No. 2125

         Substitute the following for H.B. No. 2125:

         By Maxey                                          C.S.H.B. No. 2125

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to creation of a pilot program to establish individual

 1-3     development accounts for certain recipients of financial

 1-4     assistance.


 1-6           SECTION 1.  Subchapter D, Chapter 301, Labor Code, is amended

 1-7     by adding Section 301.067 to read as follows:

 1-8           Sec. 301.067.  PILOT PROGRAM:  INDIVIDUAL DEVELOPMENT

 1-9     ACCOUNTS FOR CERTAIN EMPLOYEES.  (a)  The commission by rule shall

1-10     establish and implement a pilot program under which an individual

1-11     development account is established for a recipient of financial

1-12     assistance under Chapter 31, Human Resources Code, who is employed

1-13     by a person in the private sector through a subsidized employment

1-14     program established under Section 31.0126(a)(5), Human Resources

1-15     Code.

1-16           (b)  The commission may establish and administer an account

1-17     for a recipient under this section or may contract with a nonprofit

1-18     organization or financial institution to establish and administer

1-19     the account in accordance with commission rules.

1-20           (c)  The commission shall encourage the following to match

1-21     deposits made by a recipient of financial assistance to an account

1-22     established under this section:

1-23                 (1)  private employers, including persons in the

1-24     private sector who employ one or more recipients through a

 2-1     subsidized employment program established under Section

 2-2     31.0126(a)(5), Human Resources Code;

 2-3                 (2)  community groups; and

 2-4                 (3)  financial institutions.

 2-5           (d)  Expenditures from a recipient's individual development

 2-6     account established under this section while the recipient is

 2-7     receiving financial assistance are limited to educational and

 2-8     medical expenses, work-related expenses, including expenses of a

 2-9     self-employment enterprise, and housing or moving expenses for the

2-10     recipient and a person who is a member of the AFDC-certified group.

2-11           (e)  Not later than December 1 of 1998 and 2000, the

2-12     commission shall submit a report to the governor and the members of

2-13     the legislature regarding the status of the pilot program.

2-14           (f)  This section expires September 1, 2001.

2-15           SECTION 2.  Subchapter B, Chapter 31, Human Resources Code,

2-16     is amended by adding Section 31.0321 to read as follows:


2-18     (a)  Except as provided by Subsection (b), the department may not

2-19     consider money contributed to a recipient's individual development

2-20     account under a pilot program by an employer, community group, or

2-21     financial institution as income or the balance of the account as a

2-22     resource in determining whether the recipient meets household

2-23     income and resource requirements for eligibility for financial

2-24     assistance.

2-25           (b)  After consulting with the Texas Workforce Commission,

2-26     the department by rule may place limits on the amount of money not

2-27     considered as income or as a resource under Subsection (a).

 3-1           (c)  This section expires September 1, 2001.

 3-2           SECTION 3.  If, before implementing any provision of this

 3-3     Act, a state agency determines that a waiver or authorization from

 3-4     a federal agency is necessary for implementation, the state agency

 3-5     shall request the waiver or authorization and may delay

 3-6     implementing that provision until the waiver or authorization is

 3-7     granted.

 3-8           SECTION 4.  The importance of this legislation and the

 3-9     crowded condition of the calendars in both houses create an

3-10     emergency and an imperative public necessity that the

3-11     constitutional rule requiring bills to be read on three several

3-12     days in each house be suspended, and this rule is hereby suspended,

3-13     and that this Act take effect and be in force from and after its

3-14     passage, and it is so enacted.