HBA-TYH, LCA, RBT H.B. 2563 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2563
By: Lewis, Glenn
Urban Affairs
7/22/1999
Enrolled



BACKGROUND AND PURPOSE 

Individual Development Accounts (IDA) are special savings accounts for
low-income families and individuals.  They are matched savings accounts
designed to help low-income families accumulate savings for high return
investments in education or job training, home ownership, and
microenterprise.  H.B. 2563 authorizes the creation of a Family Savings
Initiative pilot project for IDAs.  This bill provides low-income families
an opportunity to facilitate savings and accumulate assets, promotes
investment in education, home ownership, and microenterprise development,
and utilizes and builds comprehensive public and private community
partnerships that support asset building in low-wealth communities. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Workforce Commission in
SECTION 1 (Section 301.068, Labor Code) of this bill. 
 
SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter D, Chapter 301, 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 (commission), by rule, to develop and implement a
pilot program under which an individual development account is established
for certain low-income individuals who are employed by the public or
private sector.  Requires the commission to contract with a nonprofit
organization through competitive proposals to establish and administer the
account in accordance with commission rules.  Sets forth the considerations
the commission is required to follow in adopting rules for the pilot
program.  Requires the commission to contract with an institution of higher
education to evaluate the program and prepare a report of its findings
before the second anniversary of the implementation of the pilot program.
Requires the commission to submit to the legislature a report on the status
of the pilot program in each selected county with recommendations for
implementation of the program statewide by January 1, 2005.  Provides that
this section expires on September 1, 2005. 

SECTION 2.Effective date: September 1, 1999.
   Requires the Texas Workforce Commission to develop and implement the
pilot required by Section 301.068, Labor Code, as added by this Act. 

SECTION 3.   Emergency clause.