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| [ Introduced ] | [ House Amendment 002 ] |
90_HB3387ham001
LRB9009540SMdvam01
1 AMENDMENT TO HOUSE BILL 3387
2 AMENDMENT NO. . Amend House Bill 3387 by replacing
3 the title with the following:
4 "AN ACT to amend the Illinois Public Aid Code by adding
5 Section 12-4.103."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Illinois Public Aid Code is amended by
9 adding Section 12-4.103 as follows:
10 (305 ILCS 5/12-4.103 new)
11 Sec. 12-4.103. Individual Development Accounts. Subject
12 to appropriation for this purpose or to the extent other
13 resources are available, the Illinois Department shall
14 establish a program that allows eligible low-income
15 individuals to open and maintain Individual Development
16 Accounts for the purpose of enabling the individual to
17 accumulate funds for a qualified purpose. A qualified purpose
18 for establishing an Individual Development Account shall be
19 one or more of the following:
20 (1) to pay for postsecondary education expenses if the
21 expenses are paid directly to an eligible educational
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1 institution;
2 (2) to acquire a principal residence if the individual is
3 buying a home for the first time and if the funds are paid
4 directly to the person to whom the amounts required for the
5 purchase are due; or
6 (3) to finance business capitalization expenses if the
7 funds are paid directly into a business capitalization
8 account at a federally insured financial institution and are
9 restricted to use solely for qualified business
10 capitalization expenses.
11 An individual may make contributions to his or her
12 Individual Development Account only from earned income as
13 defined in Section 911(d)(2) of the Internal Revenue Code of
14 1986.
15 An Individual Development Account program shall be
16 established in accordance with subsection (h) of Section 404
17 of the Personal Responsibility and Work Opportunity
18 Reconciliation Act of 1996. State funds made available for
19 this program and federal funds, to the extent they may be
20 used for this purpose, shall be used (i) to match, dollar for
21 dollar, contributions made by individuals participating in an
22 Individual Development Account program approved by the
23 Illinois Department, (ii) to fund or supplement other funds
24 available for the costs of the administration of an
25 Individual Development Account program by a not-for-profit
26 organization, and (iii) for a grant or grants to
27 not-for-profit organizations to provide technical assistance
28 and training to other not-for-profit organizations in the
29 State that wish to establish an Individual Development
30 Account program consistent with this Section. No Individual
31 Development Account program shall qualify for State funds
32 under this Section unless the administering not-for-profit
33 organization verifies that it has secured at least a dollar
34 for dollar match from other sources for contributions made by
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1 participating individuals.
2 The Illinois Department shall by rule establish
3 qualifications for a not-for-profit organization to
4 administer an Individual Development Account program. The
5 Illinois Department shall establish eligibility criteria for
6 individuals seeking to participate in an Individual
7 Development Account program. The Illinois Department shall
8 promulgate rules regarding the administration of Individual
9 Development Account programs by approved not-for-profit
10 organizations administering the programs.
11 Notwithstanding any other provision of State law, funds
12 in an Individual Development Account, including accrued
13 interest and matching deposits, shall be disregarded for the
14 purpose of determining the eligibility and benefit levels
15 under this Code of the individual establishing the Individual
16 Development Account with respect to any period during which
17 such individual maintains or makes contributions into such an
18 account. Nothing in this Section shall prohibit a
19 not-for-profit organization which does not receive State
20 matching funds from administering an approved Individual
21 Development Account under this Section.
22 Section 99. Effective date. This Act takes effect upon
23 becoming law.".