1-1 By: Lewis of Tarrant (Senate Sponsor - Ellis) H.B. No. 2563 1-2 (In the Senate - Received from the House May 5, 1999; 1-3 May 6, 1999, read first time and referred to Committee on Human 1-4 Services; May 13, 1999, reported favorably by the following vote: 1-5 Yeas 5, Nays 0; May 13, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to creation of a pilot program to establish individual 1-9 development accounts for certain low-income individuals. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter D, Chapter 301, Labor Code, is amended 1-12 by adding Section 301.068 to read as follows: 1-13 Sec. 301.068. DEVELOPMENT ACCOUNTS FOR CERTAIN LOW-INCOME 1-14 INDIVIDUALS; PILOT PROGRAM. (a) In this section, "nonprofit 1-15 organization" includes a community development organization, 1-16 minority economic development organization, community-based 1-17 organization, and affordable housing agency. 1-18 (b) The commission by rule shall develop and implement a 1-19 pilot program under which an individual development account is 1-20 established for certain low-income individuals who are employed by 1-21 the public or private sector. The commission shall contract with a 1-22 nonprofit organization through competitive proposals to establish 1-23 and administer the account in accordance with commission rules. 1-24 (c) In adopting rules under the pilot program, the 1-25 commission shall: 1-26 (1) design the program in a manner that provides a 1-27 participant with an opportunity to accumulate assets and to 1-28 facilitate and mobilize savings; 1-29 (2) state the selection criteria for a nonprofit 1-30 organization to establish and administer accounts under the 1-31 program; 1-32 (3) establish procedures to receive requests for 1-33 proposals from qualifying nonprofit organizations; 1-34 (4) ensure that participation in the program is 1-35 limited to individuals who have a family income below 200 percent 1-36 of the poverty level according to the federal Office of Management 1-37 and Budget poverty index; 1-38 (5) provide that expenditures from a participant's 1-39 individual development account are limited to postsecondary 1-40 educational expenses for the adult account holder and dependent 1-41 children, housing expenses, including expenses of purchasing or 1-42 financing a home for the adult account holder, expenses of a 1-43 self-employment enterprise, and start-up business expenses for the 1-44 adult account holder; and 1-45 (6) establish the program in eight counties: 1-46 (A) two of which must have a population of 1-47 500,000 or more but less than one million; 1-48 (B) two of which must have a population of one 1-49 million or more but less than two million; 1-50 (C) two of which must have a population of two 1-51 million or more; and 1-52 (D) two of which must be primarily rural areas 1-53 that have poverty rates per capita exceeding 1-1/2 times the 1-54 statewide poverty rate per capita. 1-55 (d) Not later than the second anniversary of the date on 1-56 which the pilot program required by this section is implemented, 1-57 the commission shall contract with an institution of higher 1-58 education, as defined by Section 61.003, Education Code, to 1-59 evaluate the program and prepare a report of its findings. 1-60 (e) Not later than January 1, 2005, the commission shall 1-61 submit to the legislature a report on the status of the pilot 1-62 program in each selected county with recommendations for 1-63 implementation of the program statewide. 1-64 (f) This section expires September 1, 2005. 2-1 SECTION 2. (a) This Act takes effect September 1, 1999. 2-2 (b) As soon as possible after the effective date of this 2-3 Act, the Texas Workforce Commission shall develop and implement the 2-4 pilot program required by Section 301.068, Labor Code, as added by 2-5 this Act. 2-6 SECTION 3. The importance of this legislation and the 2-7 crowded condition of the calendars in both houses create an 2-8 emergency and an imperative public necessity that the 2-9 constitutional rule requiring bills to be read on three several 2-10 days in each house be suspended, and this rule is hereby suspended. 2-11 * * * * *