79R3733 CLG-D

By:  Guillen                                                      H.B. No. 2737



A BILL TO BE ENTITLED

AN ACT

relating to creation of a pilot program to establish individual 
development accounts for certain TANF recipients.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 301, Labor Code, is 
amended by adding Section 301.0683 to read as follows:
	Sec. 301.0683.  PILOT PROGRAM:  INDIVIDUAL DEVELOPMENT 
ACCOUNTS FOR CERTAIN EMPLOYEES. (a)  The commission by rule shall 
establish and implement a pilot program under which an individual 
development account is established for a recipient of financial 
assistance under Chapter 31, Human Resources Code, who is employed 
by the public or private sector.
	(b)  The commission may establish and administer an account 
for a recipient under this section or may contract with a nonprofit 
organization or financial institution to establish and administer 
the account in accordance with commission rules.
	(c)  The commission shall encourage the following to match 
deposits made by a recipient of financial assistance to an account 
established under this section:
		(1)  private employers, including persons in the 
private sector who employ one or more recipients through a 
subsidized employment program established under Section 
31.0126(a)(5), Human Resources Code;
		(2)  community groups; and                                             
		(3)  financial institutions.                                           
	(d)  Expenditures from a recipient's individual development 
account established under this section while the recipient is 
receiving financial assistance are limited to educational and 
medical expenses, work-related expenses, including expenses of a 
self-employment enterprise, and housing or moving expenses for the 
recipient and a person who is a member of the TANF-certified group.
	(e)  The commission shall implement the program in four 
counties, two of which must be primarily rural areas that have 
poverty rates per capita exceeding 1-1/2 times the statewide 
poverty rate per capita.
	(f)  Not later than December 1 of 2006 and 2008, the 
commission shall submit a report to the governor and the members of 
the legislature regarding the status of the pilot program in each 
selected county.  The second report due under this subsection must 
include recommendations on whether to implement the program 
statewide.
	(g)  This section expires September 1, 2009.                            
	SECTION 2.  Subchapter B, Chapter 31, Human Resources Code, 
is amended by adding Section 31.0321 to read as follows:
	Sec. 31.0321.  EXCLUSION OF CERTAIN INCOME AND RESOURCES. 
(a)  Except as provided by Subsection (b), the department may not 
consider money contributed to a recipient's individual development 
account under a pilot program by an employer, community group, or 
financial institution as income or the balance of the account as a 
resource in determining whether the recipient meets household 
income and resource requirements for eligibility for financial 
assistance.
	(b)  After consulting with the Texas Workforce Commission, 
the executive commissioner of the Health and Human Services 
Commission may adopt rules under which the department may place 
limits on the amount of money not considered as income or as a 
resource under Subsection (a).
	(c)  This section expires September 1, 2009.                            
	SECTION 3.  If, before implementing any provision of this 
Act, a state agency determines that a waiver or authorization from a 
federal agency is necessary for implementation, the state agency 
shall request the waiver or authorization and may delay 
implementing that provision until the waiver or authorization is 
granted.
	SECTION 4.  As soon as practicable after the effective date 
of this Act, the Texas Workforce Commission shall develop and 
implement the pilot program required by Section 301.0683, Labor 
Code, as added by this Act.
	SECTION 5.  This Act takes effect September 1, 2005.