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F I S C A L I M P A C T R E P O R T
SPONSOR HCPAC
DATE TYPED 03/05/05 HB 820/HCPACS
SHORT TITLE Low-Income Household Asset Formation
SB
ANALYST Ford
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$1,950.0
Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
The House Consumer and Public Affairs Committee substitute for House Bill 820 appropriates
$1.95 million from the general fund to the local government division of the department of fi-
nance and administration (DFA) for the purpose of contracting with statewide nonprofit net-
works to leverage private charitable donations for a statewide system of community economic
development through asset building for low-income households pursuant to the Individual De-
velopment Account Act.
Significant Issues
The Individual Development Account Act allows eligible individuals to deposit money into
specified accounts and receive matching funds. The funds can be used only for specified pur-
poses such as higher education, purchasing a home, starting or expanding a business or making
home repairs.
This bill would provide funding for the nonprofit networks to leverage private charitable dona-
tions to assist low income households through the Individuals Development Accounts. State
funds and private charitable funds would serve as matching funds for the money deposited by the
individual account holder. The bill limits eligible nonprofits to those nonprofits working under
the Community Action Act.