SRC-AXB H.B. 2563 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2563
76R11547  EBy: Lewis, Glenn (Ellis)
Human Services
5/10/1999
Engrossed


DIGEST 

Currently, there are special matched savings accounts for low-income
families and individuals called individual development accounts.  Such
accounts accumulate savings for high return investments in education or job
training, home ownership, and microenterprise.  H.B. 2563 creates a pilot
program to establish individual development accounts for certain low-income
individuals. 

PURPOSE

As proposed, H.B. 2563 creates a pilot program for an account for employed
low-income individuals. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Workforce Commission in
SECTION 1 (Section 301.068(b), Labor Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 301D, Labor Code, by adding Section 301.068, as
follows: 

Sec.  301.068.  DEVELOPMENT ACCOUNTS FOR CERTAIN LOW-INCOME INDIVIDUALS;
PILOT PROGRAM.  Defines "nonprofit organization."  Requires the Texas
Workforce Commission (TWC), by rule, to develop and implement a pilot
program involving an account for employed low-income individuals (account).
Requires TWC to contract with a nonprofit organization to establish and
administer the account in accordance with commission rules.  Requires TWC
to take certain actions in the process of adopting pilot program rules.
Requires TWC to contract with an institution of higher education to
evaluate the program and prepare a report of its findings, by a certain
deadline.  Requires TWC to submit a status report, including
recommendations for statewide program implementation, to the legislature by
January 1, 2005.  Provides that this section expires September 1, 2005. 

SECTION 2.  (a)  Effective date:  September 1, 1999.

(b)  Requires TWC to develop and implement the required pilot program as
soon as possible after the effective date of this Act. 

SECTION 3.  Emergency clause.