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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of a social loan program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 531, Government Code, is amended by |
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adding Subchapter Z to read as follows: |
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SUBCHAPTER Z. CRISIS LOAN PROGRAM |
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Sec. 531.991. DEFINITIONS. In this subchapter: |
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(1) "Lone Star Card" means the card issued by the |
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commission to deliver benefits for the financial assistance program |
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under Chapter 31, Human Resources Code, and the supplemental |
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nutrition assistance program under Chapter 33, Human Resources |
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Code. |
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(2) "Program" means the social loan program created |
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under this subchapter. |
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Sec. 531.992. SOCIAL LOAN PROGRAM. (a) The commission |
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shall establish and implement the social loan program for the |
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purpose of making low-interest, short-term loans to low-income |
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individuals under emergency circumstances. The program shall |
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provide: |
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(1) lump-sum budgeting loans for the purpose of making |
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a substantial emergency household purchase, including an appliance |
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or fixture; and |
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(2) crisis loans for last resort assistance in paying |
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basic expenses, including food and gasoline, after the occurrence |
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of a personal emergency. |
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(b) The commission may charge interest on a loan made under |
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this subchapter for the purpose of covering the administrative |
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costs of the program. The interest charge for a loan made under |
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this subchapter may not exceed 15 percent a year. |
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(c) A loan made under this subchapter may not exceed $400. |
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(d) The executive commissioner shall adopt rules as |
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necessary to implement this subchapter. |
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Sec. 531.993. USE OF LOAN MONEY. (a) A loan made to a person |
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under this subchapter may be used only to purchase goods and |
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services that are considered essential and necessary for the |
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welfare of the loan recipient or the loan recipient's family not |
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covered by an assistance program listed under Section 531.994(1). |
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(b) The department by rule shall define what constitutes |
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essential and necessary goods and services for purposes of this |
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section. |
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Sec. 531.994. ELIGIBILITY. To be eligible to receive a loan |
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under the program, an individual must: |
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(1) be a recipient of assistance or benefits under: |
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(A) the financial assistance program under |
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Chapter 31, Human Resources Code; |
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(B) the medical assistance program under Chapter |
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32, Human Resources Code; |
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(C) the supplemental nutrition assistance |
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program under Chapter 33, Human Resources Code; or |
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(D) another appropriate health and human |
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services program, as defined by the executive commissioner by rule; |
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and |
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(2) demonstrate an immediate need for an essential or |
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necessary good or service as defined by rule under Section |
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531.993(b). |
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Sec. 531.995. LOAN APPLICATION. The executive commissioner |
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by rule: |
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(1) shall prescribe a standardized application form |
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for the purpose of applying for a loan under this subchapter; and |
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(2) may establish a set of priorities for making loans |
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under this subchapter. |
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Sec. 531.996. DISTRIBUTION OF LOAN. (a) Before |
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distributing loan money to a loan recipient under this subchapter, |
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the commission shall enter into a contract with the recipient that |
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provides the terms and conditions of the loan. |
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(b) The commission shall distribute loan money under this |
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subchapter using the loan recipient's Lone Star Card. If a loan |
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recipient has not been issued a Lone Star Card at the time a loan is |
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disbursed to the recipient, the commission shall issue a Lone Star |
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Card to the recipient for purposes of distributing the loan under |
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this subchapter. |
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Sec. 531.997. LOAN REPAYMENT. (a) As payment of a loan |
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recipient's loan debt under this subchapter, the commission shall |
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deduct payment on the loan from the assistance or benefits received |
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by the recipient under an assistance program listed in Section |
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531.994(1) at the rate and in the time provided in the contract |
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entered into under Section 531.996(a). |
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(b) A loan recipient under this subchapter shall repay the |
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loan in full not later than the first anniversary of the date on |
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which the loan was originally distributed. |
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Sec. 531.998. SOCIAL LOAN FUND. (a) The social loan fund is |
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created as an account in the general revenue fund. The account is |
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composed of: |
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(1) legislative appropriations; |
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(2) gifts, grants, donations, and matching funds |
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received under Subsection (b); and |
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(3) other money required by law to be deposited in the |
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account. |
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(b) The commission may solicit and accept gifts, grants, and |
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donations from any public or private source for the purposes of this |
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subchapter. |
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(c) Income from money in the account, including interest, |
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shall be credited to the account. |
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(d) Money in the account may be used only for the purposes of |
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this subchapter. |
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SECTION 2. Not later than December 1, 2012, the executive |
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commissioner shall: |
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(1) establish and implement the social loan program as |
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required by Subchapter Z, Chapter 531, Government Code, as added by |
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this Act; and |
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(2) adopt the rules required by Sections 531.992(d), |
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531.993(b), 531.994(1)(D), and 531.995, Government Code, as added |
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by this Act. |
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SECTION 3. This Act takes effect December 1, 2011, but only |
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if the constitutional amendment authorizing the legislature to |
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create a social loan program is approved by the voters. If that |
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amendment is not approved by the voters, this Act has no effect. |