SECOND REGULAR SESSION
92ND GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES BRUNS (Sponsor), MOORE,
MUNZLINGER AND DEEKEN (Co-sponsors).
Read 1st time February 10, 2004, and copies ordered printed.
STEPHEN S. DAVIS, Chief Clerk
AN ACT
To repeal sections 208.750 and 208.760, RSMo, and to enact in lieu thereof two new sections relating to the family development account program.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 208.750 and 208.760, RSMo, are repealed and two new sections enacted in lieu thereof, to be known as sections 208.750 and 208.760, to read as follows: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 or 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.
208.760. 1. A family or individual whose household income is less than or equal to two hundred percent of the federal poverty level may open a family development account for the purpose of accumulating and withdrawing moneys for specified expenditures. The account holder may withdraw moneys from the account on the approval of the community-based organization, without penalty, for any of the following expenditures:
(1) Educational costs for any family member at an accredited institution of vocational or higher education;
(2) Job training costs for any family member eighteen years of age or older, at an accredited or licensed training program;
(3) Purchase of a primary residence;
(4) Major repairs or improvements to a primary residence; or
(5) Start-up capitalization of a small business for any family member eighteen years of age or older.
2. Financial institutions approved by the department shall be permitted to establish family development accounts pursuant to sections 208.750 to 208.775. The financial institution shall certify to the department, on forms prescribed by the department and accompanied by any documentation required by the department, that such accounts have been established pursuant to the provisions of sections 208.750 to 208.775 and that deposits have been made on behalf of the account holder.
3. A financial institution establishing a family development account shall:
(1) Keep the account in the name of the account holder;
(2) Permit deposits to be made in the account by the following, subject to the indicated conditions:
(a) The account holder; or
(b) A community-based organization on behalf of the account holder. Such a deposit may include moneys to match the account holder's deposits, up to a three-to-one match rate;
(3) Require the account to earn at least the market rate of interest; and
(4) Permit the account holder to withdraw moneys from the account for any of the purposes listed in subsection 1 of this section.
4. The total of all deposits by the account holder into a family development account in a calendar year shall not exceed two thousand dollars. The total balance in a family development account shall not exceed fifty thousand dollars.