Existing law does not provide for the establishment of an Individual Development Account Program in the Department of Human Resources.
This bill would establish an Individual Development Account Program in the Department of Human Resources.
This bill would authorize certain persons with low income to enter into agreements developed with a fiduciary organization for the establishment of an individual development account.
This bill would require the agreement to provide for the amount of savings deposits, match fund rates, assets goals, financial literacy education classes to be completed, additional training specific to the asset, and financial counseling the individual will attend, as well as other services designed to increase the financial independence of the person.
This bill would provide that the funds in the account shall be matched under certain circumstances and provide that money may be withdrawn from the account for certain qualified purposes.
This bill would allow money to be withdrawn from the account if money is withdrawn for emergencies and would remove a person from the program if money is withdrawn for other purposes.
This bill would require the account holder to fulfill certain requirements before the withdrawal of money from the account and would provide that money deposited in the account shall not be considered gross income for income tax purposes.
This bill would provide that money withdrawn from the account for qualified purposes shall not be considered gross income for income tax purposes and would provide for the selection of fiduciary organizations to administer the program.
The bill would provide for the duties of financial institutions holding individual development accounts.
This bill would provide that an account owner's savings and matching funds shall not affect his or her eligibility for any means-tested public benefits and for related purposes.
Forwarded to Governor on June 1, 2011 at 6:55 p.m. on June 1, 2011
Assigned Act No. 2011-641.
Enrolled
Signature Requested
Passed Second House
Motion to Read a Third Time and Pass adopted Roll Call 1048
Third Reading Passed
Read for the second time and placed on the calendar
Read for the first time and referred to the House of Representatives committee on Children and Senior Advocacy
Engrossed
Motion to Read a Third Time and Pass adopted Roll Call 552
Motion to Adopt adopted Roll Call 551
Children, Youth Affairs, and Human Resources Amendment Offered
Third Reading Passed
Read for the second time and placed on the calendar 1 amendment
Read for the first time and referred to the Senate committee on Children, Youth Affairs, and Human Resources
Source: Alabama Legislature