FIRST REGULAR SESSION

HOUSE BILL NO. 1260

94TH GENERAL ASSEMBLY

INTRODUCED BY REPRESENTATIVES ZWEIFEL (Sponsor), YAEGER, DONNELLY, SCHIEFFER AND MEADOWS (Co-sponsors).

                  Read 1st time March 29, 2007 and copies ordered printed.

D. ADAM CRUMBLISS, Chief Clerk

2749L.01I

AN ACT

To repeal sections 208.750 and 208.755, RSMo, and to enact in lieu thereof two new sections relating to family development accounts.

Be it enacted by the General Assembly of the state of Missouri, as follows:

            Section A. Sections 208.750 and 208.755, RSMo, are repealed and two new sections enacted in lieu thereof, to be known as sections 208.750 and 208.755, to read as follows:

            208.750. 1. Sections 208.750 to 208.775 shall be known and may be cited as the "Family Development Account Program".

            2. For purposes of sections 208.750 to 208.775, the following terms mean:

            (1) "Account holder", a person who is the owner of a family development account;

            (2) "Community-based organization", any religious or charitable association formed pursuant to chapter 352, RSMo, or any nonprofit corporation formed under chapter 355, RSMo, that is approved by the director of the department of economic development to implement the family development account program;

            (3) "Department", the department of economic development;

            (4) "Director", the director of the department of economic development;

            (5) "Family development account", a financial instrument established pursuant to section 208.760;

            (6) "Family development account reserve fund", the fund created by an approved community-based organization for the purposes of funding the costs incurred in the administration of the program and for providing matching funds for moneys in family development accounts;

            (7) "Federal poverty level", the most recent poverty income guidelines published in the calendar year by the United States Department of Health and Human Services;

            (8) "Financial institution", any bank, trust company, savings bank, credit union or savings and loan association as defined in chapter 362, 369 or 370, RSMo, and with an office in Missouri which is approved by the director for participation in the program;

            (9) "Program", the Missouri family development account program established in sections 208.750 to 208.775;

            (10) "Program contributor", a person or entity who makes a contribution to a family development account reserve fund and is not the account holder.

            208.755. 1. There is hereby established within the department of economic development a program to be known as the "Family Development Account Program". The program shall provide eligible families and individuals with an opportunity to establish special savings accounts for moneys which may be used by such families and individuals for education, home ownership or small business capitalization.

            2. The department shall solicit proposals from community-based organizations seeking to administer the accounts on a not-for-profit basis. Community-based organization proposals shall include:

            (1) A requirement that the individual account holder or the family of an account holder match the contributions of a community-based organization member by contributing cash;

            (2) A process for including account holders in decision making regarding the investment of funds in the accounts;

            (3) Specifications of the population or populations targeted for priority participation in the program;

            (4) A requirement that the individual account holder or the family of an account holder attend economic literacy seminars;

            (5) A process for including economic literacy seminars in the family development account program; and

            (6) A process for regular evaluation and review of family development accounts to ensure program compliance by account holders.

            3. In reviewing the proposals of community-based organizations, the department shall consider the following factors:

            (1) The not-for-profit status of such organization;

            (2) The fiscal accountability of the community-based organization;

            (3) The ability of the community-based organization to provide or raise moneys for matching contributions;

            (4) The ability of the community-based organization to establish and administer a reserve fund account which shall receive all contributions from program contributors; and

            (5) The significance and quality of proposed auxiliary services, including economic literacy seminars, and their relationship to the goals of the family development account program.             4. No more than [twenty] fifteen percent of all funds in the reserve fund account may be used for administrative costs of the program in each of the first two years of the program, and no more than [fifteen] ten percent of such funds may be used for administrative costs for any subsequent year. Funds deposited by account holders shall not be used for administrative costs.             5. The department shall promulgate rules and regulations to implement and administer the provisions of sections 208.750 to 208.775. No rule or portion of a rule promulgated pursuant to the authority of sections 208.750 to 208.775 shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo.

•