SCS/HCS/HB 349 - This act establishes the "Family Development Account Program" (FDA) which will provide eligible families and individuals with an opportunity to establish special savings accounts for funds which may be used for specified purposes only. Community-based organizations may submit proposals to administer these accounts on a not-for-profit basis. The proposals must contain a requirement that the family account holder match the contributions made to the account and a process for including account holders in investment decisions, among other requirements.

Families or individuals with a household income of less than or equal to 200 percent of the federal poverty level may open an account. The funds may be used for education, job training, home ownership, home improvement, or small business capitalization. Financial institutions will be permitted to establish the accounts upon approval by the Department of Economic Development. The total deposits to a family development account in any calendar year shall not exceed $2000 and the total balance in an account shall not exceed $50,000.

If money is withdrawn from an account for any purpose other than those specified, the funds will be subject to tax. Any moneys the account holder deposited in the account will be returned to the account holder, but all contributions from other sources will be forfeited.

Administrative costs are limited to no more than 20% of reserve funds for each of the first two years of the program and no more than 15% for subsequent years. No funds deposited by account holders may be used for administrative costs.

Moneys deposited in and interest earned by family development accounts are tax exempt, except for withholding taxes. Tax credits will be given to contributors, up to $50,000. Account funds will also be disregarded when determining eligibility to receive public assistance. This act is substantially similar to Truly Agreed To HS/HCS/SCS/SBs 387, et al and SB 97 (1999).
RUSS HEMBREE

SA 1/SS #2 (JACOB) - REMOVED ELEMENTARY AND SECONDARY SCHOOLS FROM THE DEFINITION OF ACCREDITED INSTITUTIONS AND CHANGED THE ELIGIBLE AGE FROM 10 TO 18 FOR FAMILY MEMBERS OR DEPENDENTS TO USE FAMILY DEVELOPMENT ACCOUNT WITHDRAWALS FOR EDUCATION COSTS AT ACCREDITED INSTITUTIONS.

SA 1/SA 1/SS #2 (CHILDERS) - CHANGED THE ELIGIBLE AGE FROM 18 TO 16 FOR FAMILY MEMBERS OF DEPENDENTS TO USE FAMILY DEVELOPMENT ACCOUNT WITHDRAWALS FOR EDUCATION COSTS AT ACCREDITED INSTITUTIONS.

SA 1 (FLOTRON) - ALLOWS FAMILY DEVELOPMENT ACCOUNTS TO RECEIVE AS DEPOSITS ANY TAX CREDITS RECEIVED FOR ELIGIBLE ADOPTION EXPENSES FOR SPECIAL NEEDS CHILDREN. THE CREDIT MAY BE ASSIGNED, TRANSFERRED OR SOLD. THE CUMULATIVE AMOUNT OF THE TAX CREDIT IS LIMITED TO NO MORE THAN TWO MILLION DOLLARS PER FISCAL YEAR, IN ADDITION TO THE LIMIT OF FOUR MILLION DOLLARS FOR THE FAMILY DEVELOPMENT ACCOUNT TAX CREDITS.

SA 2 (CHILDERS) - REQUIRES THE DEPARTMENT OF ECONOMIC DEVELOPMENT TO ESTABLISH SIX HOUSING DEVELOPMENT LOAN PILOT PROGRAMS. FUNDS PROVIDED TO THE DEPARTMENT TO ESTABLISH THE PROGRAMS ARE ELIGIBLE FOR TAX CREDITS. NON-PROFIT CORPORATIONS PLANNING TO CONSTRUCT SINGLE FAMILY HOUSING ARE TO APPLY TO THE DEPARTMENT FOR FUNDS. HOMES CONSTRUCTED WITH THESE FUNDS ARE TO BE SOLD AT COST PLUS A $2,500 ADMINISTRATION FEE. SPECULATIVE PURCHASES MUST BE PROHIBITED IN THE SALES CONTRACT. AN INTEREST- FREE SECOND MORTGAGE MUST BE MADE PAYABLE TO THE NON-PROFIT ORGANIZATION IF THE HOME BUYER SELLS THE PROPERTY PRIOR TO FIVE YEARS OF OWNERSHIP.

SA 3 (CLAY) - ADDS A DEFINITION OF ACCREDITED INSTITUTION OF EDUCATION FOR FAMILY DEVELOPMENT ACCOUNTS, AND ALLOWS WITHDRAWALS FOR EDUCATION COSTS FOR ANY FAMILY MEMBERS OR DEPENDENTS. THE TOTAL AMOUNT OF TAX CREDITS AUTHORIZED IS INCREASED FROM FOUR MILLION DOLLARS TO FIFTEEN MILLION DOLLARS.

SA 1 (CHILDERS) - REQUIRES THE DEPARTMENT OF ECONOMIC DEVELOPMENT TO ESTABLISH SIX HOUSING DEVELOPMENT LOAN PILOT PROGRAMS. FUNDS PROVIDED TO THE DEPARTMENT TO ESTABLISH THE PROGRAMS ARE ELIGIBLE FOR TAX CREDITS. NON-PROFIT CORPORATIONS PLANNING TO CONSTRUCT SINGLE FAMILY HOUSING ARE TO APPLY TO THE DEPARTMENT FOR FUNDS. HOMES CONSTRUCTED WITH THESE FUNDS ARE TO BE SOLD AT COST PLUS A $2,500 ADMINISTRATION FEE. SPECULATIVE PURCHASES MUST BE PROHIBITED IN THE SALES CONTRACT. AN INTEREST- FREE SECOND MORTGAGE MUST BE MADE PAYABLE TO THE NON-PROFIT ORGANIZATION IF THE HOME BUYER SELLS THE PROPERTY PRIOR TO FIVE YEARS OF OWNERSHIP.