By Lewis of Tarrant H.B. No. 2563
76R3512 CLG-D
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 low-income individuals.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter C, Chapter 2306, Government Code, is
1-6 amended by adding Section 2306.057 to read as follows:
1-7 Sec. 2306.057. DEVELOPMENT ACCOUNTS FOR CERTAIN LOW-INCOME
1-8 INDIVIDUALS; PILOT PROGRAM. (a) In this section, "nonprofit
1-9 organization" includes a community development organization,
1-10 minority economic development organization, community-based
1-11 organization, and affordable housing agency.
1-12 (b) The department by rule shall develop and implement a
1-13 pilot program under which an individual development account is
1-14 established for certain low-income individuals who are employed by
1-15 the public or private sector. The department shall contract with a
1-16 nonprofit organization through competitive proposals to establish
1-17 and administer the account in accordance with department rules.
1-18 (c) In adopting rules under the pilot program, the
1-19 department shall:
1-20 (1) design the program in a manner that provides a
1-21 participant with an opportunity to accumulate assets and to
1-22 facilitate and mobilize savings;
1-23 (2) state the selection criteria for a nonprofit
1-24 organization to establish and administer accounts under the
2-1 program;
2-2 (3) establish procedures to receive requests for
2-3 proposals from qualifying nonprofit organizations;
2-4 (4) ensure that participation in the program is
2-5 limited to individuals who have a family income below 200 percent
2-6 of the poverty level according to the federal Office of Management
2-7 and Budget poverty index;
2-8 (5) provide that expenditures from a participant's
2-9 individual development account are limited to educational and
2-10 medical expenses, housing expenses, including expenses of
2-11 purchasing or financing a home, expenses of a self-employment
2-12 enterprise, start-up business expenses, and work-related expenses;
2-13 and
2-14 (6) establish the program in six counties, two of
2-15 which must have a population of one million or more but less than
2-16 two million, two of which must have a population of two million or
2-17 more, and two of which must be primarily rural areas that have
2-18 poverty rates per capita exceeding 1-1/2 times the statewide
2-19 poverty rate per capita.
2-20 (d) Not later than the second anniversary of the date on
2-21 which the pilot program required by this section is implemented,
2-22 the department shall contract with an institution of higher
2-23 education, as defined by Section 61.003, Education Code, to
2-24 evaluate the program and prepare a report of its findings.
2-25 (e) Not later than January 1, 2005, the department shall
2-26 submit to the legislature a report on the status of the pilot
2-27 program in each selected county with recommendations for
3-1 implementation of the program statewide.
3-2 (f) This section expires September 1, 2005.
3-3 SECTION 2. (a) This Act takes effect September 1, 1999.
3-4 (b) As soon as possible after the effective date of this
3-5 Act, the Texas Department of Housing and Community Affairs shall
3-6 develop and implement the pilot program required by Section
3-7 2306.057, Government Code, as added by this Act.
3-8 SECTION 3. 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.