HBA-LCA, RBT C.S.H.B. 2563 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2563
By: Lewis, Glenn
Urban Affairs
4/5/1999
Committee Report (Substituted)



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.  C.S.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 Workforce Commission in
SECTION 1 (Section 301.068, Labor Code) of this bill. 
 
SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter D, Chapter 301, Labor Code, by adding Section
301.068, as follows: 

Sec.  301.068.  DEVELOPMENT ACCOUNTS FOR CERTAIN LOW-INCOME INDIVIDUALS;
PILOT PROGRAM.  Defines "nonprofit organization."  Requires the Texas
Workforce Commission (commission), 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 commission to contract with a nonprofit
organization through competitive proposals to establish and administer the
account in accordance with commission rules.  Sets forth the considerations
the commission is required to follow in adopting rules for the pilot
program.  Requires the commission 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 commission 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 Workforce Commission to develop and implement
the pilot                          program required by Section 301.068,
Labor Code, as added by this Act. 

SECTION 3.   Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2563 modifies the original in SECTION 1 by transferring the
proposed section "Development Accounts for Certain Low-Income Individuals;
Pilot Program" from Subchapter C, Chapter 2306, Government Code (Texas
Department of Housing and Community Affairs) to Subchapter D, Chapter 301,
Labor Code (Texas Workforce Commission).  The substitute transfers
proposed rulemaking authority and duties under this chapter from the Texas
Department of Housing and Community Affairs to the Texas Workforce
Commission.  The substitute provides, in SECTION 1, Section 301.068(c)(5),
new language regarding limitations on expenditures from a participant's
individual development account to specify that certain educational expenses
are post-secondary educational expenses for the account holder and
dependent children, and to make conforming changes.  The substitute
provides, in SECTION 1, proposed Section 301.068(c)(6), new language
regarding the establishment of the pilot program in eight, rather than six,
counties.