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


Office of House Bill AnalysisH.B. 2563
By: Lewis, Glenn
Urban Affairs
3/29/1999
Introduced



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 Department of Housing and
Community Affairs in SECTION 1 (Section 2306.057, Government Code) of this
bill. 
 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter C, Chapter 2306, Government Code, by adding
Section 2306.057, as follows: 

Sec.  2306.057.  DEVELOPMENT ACCOUNTS FOR CERTAIN LOW-INCOME INDIVIDUALS;
PILOT PROGRAM.  Defines "nonprofit organization."  Requires the Texas
Department of Housing and Community Affairs (department) 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 department to contract with a
nonprofit organization through competitive proposals to establish and
administer the account in accordance with department rules.  Sets forth the
considerations that the department is required to follow in adopting rules
for the pilot program.  Requires the department 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 department 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 Department of Housing and Community Affairs
to develop and                        implement the pilot program required
by Section 2306.057, Government Code, as  
                       added by this Act.

SECTION 3.  Emergency clause.