SCS/HCS/HB 1197 - This act establishes the Family Development Account Program. The program is intended to allow low-income families to set up special accounts with community groups, and to encourage charitable organizations to assist families with certain expenses.

The act allows certain low-income individuals to set up accounts held by Community Based Organizations in financial institutions. Withdrawals from these accounts may be made to cover educational costs, job training costs, the purchase of a home, major home repairs and improvements, and start-up capitalization projects.

The Community Based Organizations will manage the accounts, solicit contributions, make matching deposits, and maintain economic literacy seminars. No more than 15% of all funds in the account may be used to cover administrative costs. Money deposited or withdrawn from an account are exempt from state income taxes. Tax credits to contributors are also available.

Independent evaluations and audits of the program will be made annually. The act is similar to SB 699.
JOHN MESSMER

SA 1 - TAKES OUT LANGUAGE THAT HAD ALREADY BEEN REMOVED FROM THE STATUTES. SA 2 - TECHNICAL CHANGE SA 3 - ADDS LANGUAGE ALLOWING THE PROMULGATION OF AGENCY RULES.