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90_SB1350ham001
LRB9008934MWksam
1 AMENDMENT TO SENATE BILL 1350
2 AMENDMENT NO. . Amend Senate Bill 1350 on page 1, by
3 replacing lines 1 and 2 with the following:
4 "AN ACT in relation to aid for low-income families,
5 amending named Acts."; and
6 on page 3, by inserting below line 13 the following:
7 "Section 10. The Illinois Public Aid Code is amended by
8 adding Section 12-4.103 as follows:
9 (305 ILCS 5/12-4.103 new)
10 Sec. 12-4.103. Individual Development Accounts. Subject
11 to appropriation for this purpose, the Illinois Department
12 shall establish a program that allows eligible low-income
13 individuals to open and maintain Individual Development
14 Accounts for the purpose of enabling the individual to
15 accumulate funds for a qualified purpose. A qualified purpose
16 for establishing an Individual Development Account shall be
17 one or more of the following:
18 (1) to pay for postsecondary education expenses if the
19 expenses are paid directly to an eligible educational
20 institution;
21 (2) to acquire a principal residence if the individual is
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1 buying a home for the first time and if the funds are paid
2 directly to the person to whom the amounts required for the
3 purchase are due; or
4 (3) to finance business capitalization expenses if the
5 funds are paid directly into a business capitalization
6 account at a federally insured financial institution and are
7 restricted to use solely for qualified business
8 capitalization expenses.
9 An individual may make contributions to his or her
10 Individual Development Account only from earned income as
11 defined in Section 911(d)(2) of the Internal Revenue Code of
12 1986.
13 An Individual Development Account program shall be
14 established in accordance with subsection (h) of Section 404
15 of the Personal Responsibility and Work Opportunity
16 Reconciliation Act of 1996. State funds made available for
17 this program and federal funds, to the extent they may be
18 used for this purpose, shall be used (i) to match, dollar for
19 dollar, contributions made by individuals participating in an
20 Individual Development Account program approved by the
21 Illinois Department, (ii) to fund or supplement other funds
22 available for the costs of the administration of an
23 Individual Development Account program by a not-for-profit
24 organization, and (iii) for a grant or grants to
25 not-for-profit organizations to provide technical assistance
26 and training to other not-for-profit organizations in the
27 State that wish to establish an Individual Development
28 Account program consistent with this Section. No Individual
29 Development Account program shall qualify for State funds
30 under this Section unless the administering not-for-profit
31 organization verifies that it has secured at least a dollar
32 for dollar match from other sources for contributions made by
33 participating individuals.
34 The Illinois Department shall by rule establish
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1 qualifications for a not-for-profit organization to
2 administer an Individual Development Account program. The
3 Illinois Department shall establish eligibility criteria for
4 individuals seeking to participate in an Individual
5 Development Account program. The Illinois Department shall
6 promulgate rules regarding the administration of Individual
7 Development Account programs by approved not-for-profit
8 organizations administering the programs.
9 Notwithstanding any other provision of State law, funds
10 in an Individual Development Account, including accrued
11 interest and matching deposits, shall be disregarded for the
12 purpose of determining the eligibility and benefit levels
13 under this Code of the individual establishing the Individual
14 Development Account with respect to any period during which
15 such individual maintains or makes contributions into such an
16 account. Nothing in this Section shall prohibit a
17 not-for-profit organization which does not receive State
18 matching funds from administering an approved Individual
19 Development Account under this Section.".