Senate Study Bill 3035





                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED DEPARTMENT OF
                                            HUMAN SERVICES BILL)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to department of human services' technical
  2    requirements involving individual development accounts, family
  3    investment program limited benefit plans, paternity
  4    establishment definitions, and the state child care assistance
  5    program, and including effective date and retroactive
  6    applicability provisions.
  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  8 TLSB 5352DP 81
  9 jp/cf/24

PAG LIN



  1  1                           DIVISION I
  1  2                 INDIVIDUAL DEVELOPMENT ACCOUNTS
  1  3    Section 1.  Section 450.4, subsection 6, Code 2005, is
  1  4 amended to read as follows:
  1  5    6.  On property in an individual development account in the
  1  6 name of the decedent that passes to another individual
  1  7 development account or the state human investment reserve pool
  1  8 created in section 541A.4.  For purposes of this subsection,
  1  9 "individual development account" means an account that has
  1 10 been certified as an individual development account pursuant
  1 11 to chapter 541A.
  1 12    Sec. 2.  Section 541A.1, subsection 9, Code 2005, is
  1 13 amended by striking the subsection.
  1 14    Sec. 3.  Section 541A.2, subsection 2, paragraph b, Code
  1 15 2005, is amended by striking the paragraph.
  1 16    Sec. 4.  Section 541A.2, subsection 9, Code 2005, is
  1 17 amended to read as follows:
  1 18    9.  In the event of an account holder's death, the account
  1 19 may be transferred to the ownership of a contingent
  1 20 beneficiary or to the individual development account of
  1 21 another account holder.  An account holder shall name
  1 22 contingent beneficiaries or transferees at the time the
  1 23 account is established and a named beneficiary or transferee
  1 24 may be changed at the discretion of the account holder.  If
  1 25 the named beneficiary or transferee is deceased or otherwise
  1 26 cannot accept the transfer, the moneys shall be transferred to
  1 27 the reserve pool.
  1 28    Sec. 5.  Section 541A.3, subsection 1, unnumbered paragraph
  1 29 1, Code 2005, is amended to read as follows:
  1 30    Payment by the state of a savings refund on amounts of up
  1 31 to two thousand dollars per calendar year that an account
  1 32 holder deposits in the account holder's account.  Moneys
  1 33 transferred to an individual development account from another
  1 34 individual development account and a savings refund received
  1 35 by the account holder in accordance with section 541A.3 shall
  2  1 not be considered an account holder deposit for purposes of
  2  2 determining a savings refund.  Payment of a savings refund
  2  3 either shall be made directly to the account holder's account
  2  4 holder or to an operating organization's central reserve
  2  5 account for later distribution to the account holder's account
  2  6 holder in the most appropriate manner as determined by the
  2  7 administrator.  The state savings refund shall be the
  2  8 indicated percentage of the amount deposited:
  2  9    Sec. 6.  Section 541A.3, subsection 5, Code 2005, is
  2 10 amended to read as follows:
  2 11    5.  The administrator shall coordinate the filing of claims
  2 12 for savings refunds authorized under subsection 1, between
  2 13 account holders, operating organizations, and the department
  2 14 of administrative services.  Claims approved by the
  2 15 administrator may be paid by the department of administrative
  2 16 services to each account holder, for an aggregate amount for
  2 17 distribution to the holders of the accounts in a particular
  2 18 financial institution, or to an operating organization's
  2 19 central reserve account for later distribution to the account
  2 20 holders' accounts holders depending on the efficiency for
  2 21 issuing the refunds.  Claims shall be initially filed with the
  2 22 administrator on or before a date established by the
  2 23 administrator.  Claims approved by the administrator shall be
  2 24 paid from the general fund of the state in the manner
  2 25 specified in section 422.74.
  2 26    Sec. 7.  Section 541A.4, Code 2005, is repealed.
  2 27    Sec. 8.  RETROACTIVE APPLICABILITY.  This division of this
  2 28 Act, being deemed of immediate importance, takes effect upon
  2 29 enactment, is retroactively applicable to January 1, 2006, and
  2 30 is applicable on and after that date.
  2 31                           DIVISION II
  2 32        FAMILY INVESTMENT PROGRAM == LIMITED BENEFIT PLAN
  2 33    Sec. 9.  Section 239B.9, subsection 1, paragraph a, Code
  2 34 2005, is amended to read as follows:
  2 35    a.  If a participant responsible for signing and fulfilling
  3  1 the terms of a family investment agreement, as defined by the
  3  2 director of human services in accordance with section 239B.8,
  3  3 chooses not to sign or fulfill the terms of the agreement, the
  3  4 participant's family, or the individual participant shall
  3  5 enter into a limited benefit plan.  Initial actions in a
  3  6 written statement under section 239B.2, subsection 4, which
  3  7 were committed to by a participant during the application
  3  8 period and which commitment remains in effect, shall be
  3  9 considered to be a term of the participant's family investment
  3 10 agreement.  A limited benefit plan shall apply for the period
  3 11 of time specified in this section.  The first month of the
  3 12 limited benefit plan is the first month after the month in
  3 13 which timely and adequate notice of the limited benefit plan
  3 14 is given to the participant as defined by the director of
  3 15 human services.  A participant who is exempt from the JOBS
  3 16 program but who volunteers for the program is not subject to
  3 17 imposition of a limited benefit plan.  The elements of a
  3 18 limited benefit plan shall be specified in the department's
  3 19 rules.
  3 20    Sec. 10.  Section 239B.9, subsection 2, paragraph a, Code
  3 21 2005, is amended to read as follows:
  3 22    a.  PARENT.  If the participant responsible for the family
  3 23 investment agreement is a parent, the limited benefit plan is
  3 24 applicable to the entire participant family.  If the family
  3 25 reapplies for assistance after an ineligibility period,
  3 26 eligibility shall be established in the same manner as for any
  3 27 other new applicant.
  3 28    Sec. 11.  Section 239B.9, subsection 2, paragraph c, Code
  3 29 2005, is amended to read as follows:
  3 30    c.  MINOR PARENT LIVING WITH ADULT PARENT OR SPECIFIED
  3 31 RELATIVE.  If the participant family includes a minor parent
  3 32 living with the minor parent's adult parent or specified
  3 33 relative who receives family investment program assistance and
  3 34 both individuals are responsible for developing a family
  3 35 investment agreement, each individual is responsible for a
  4  1 separate family investment agreement, and the limited benefit
  4  2 plan shall be applied as follows:
  4  3    (1)  If the adult parent or specified relative chooses the
  4  4 limited benefit plan, the requirements of the limited benefit
  4  5 plan shall apply to the entire participant family, even though
  4  6 the minor parent has not chosen the limited benefit plan.
  4  7 However, the minor parent may reapply for assistance as a
  4  8 minor parent living with self=supporting parents or living
  4  9 independently and continue in the family investment agreement
  4 10 process.
  4 11    (2)  If the minor parent chooses the limited benefit plan,
  4 12 the requirements of the limited benefit plan shall apply to
  4 13 the minor parent and any child of the minor parent.
  4 14    (3)  If the specified relative chooses the limited benefit
  4 15 plan, the requirements of the limited benefit plan shall apply
  4 16 only to the specified relative.
  4 17                          DIVISION III
  4 18                     PATERNITY ESTABLISHMENT
  4 19    Sec. 12.  Section 252F.1, Code 2005, is amended by adding
  4 20 the following new subsection:
  4 21    NEW SUBSECTION.  1A.  "Child" means a person who is less
  4 22 than age eighteen or a person who is age eighteen but less
  4 23 than age nineteen and is engaged full=time in completing high
  4 24 school graduation or equivalency requirements in a manner
  4 25 which is reasonably expected to result in completion of the
  4 26 requirements prior to the person reaching age nineteen.
  4 27                           DIVISION IV
  4 28               STATE CHILD CARE ASSISTANCE PROGRAM
  4 29    Sec. 13.  Section 237A.13, subsection 5, paragraphs c and
  4 30 d, Code 2005, are amended to read as follows:
  4 31    c.  Families with an income of more than one hundred
  4 32 percent but not more than one hundred forty forty=five percent
  4 33 of the federal poverty level whose members are employed at
  4 34 least twenty=eight hours per week.
  4 35    d.  Families with an income at or below one two hundred
  5  1 seventy=five percent of the federal poverty level whose
  5  2 members are employed at least twenty=eight hours per week with
  5  3 a special needs child as a member of the family.
  5  4                           EXPLANATION
  5  5    This bill relates to department of human services'
  5  6 technical requirements involving individual development
  5  7 accounts, family investment program limited benefit plans,
  5  8 paternity establishment definitions, and the state child care
  5  9 assistance program.
  5 10    DIVISION I == INDIVIDUAL DEVELOPMENT ACCOUNTS.  This
  5 11 division revises provisions of the individual development
  5 12 account program under Code chapter 541A.  Income on moneys in
  5 13 these accounts is exempt from state tax, and an account holder
  5 14 is eligible for a state income tax refund for savings credited
  5 15 to an account.
  5 16    Code section 514A.4, outlining requirements for the initial
  5 17 pilot phase of the program, is repealed.  The provision
  5 18 limited the number of accounts for the initial five=year
  5 19 period that commenced on January 1, 1995, provided for a
  5 20 request for proposals to secure operating organizations to
  5 21 implement the program, outlined qualifications and
  5 22 requirements for operating organizations, required linkage to
  5 23 various outcomes, and required an evaluation.  In addition,
  5 24 the provision created a reserve pool for receipt and
  5 25 distribution of funding for purposes of the program.  The
  5 26 division includes conforming amendments to address the repeal
  5 27 of Code section 541A.4.
  5 28    Existing law in Code section 514A.3 requires the state
  5 29 savings refund to be paid to the account of the account
  5 30 holder.  The bill provides for the savings refund to be paid
  5 31 to the account holder or an operating organization for
  5 32 distribution to account holders rather than to the account of
  5 33 the account holder.
  5 34    Code section 541A.2, subsection 2, paragraph "b", is
  5 35 stricken to conform with the bill's requirement for direct
  6  1 payment of a savings refund to the account holder.  In
  6  2 addition, Code section 541A.3 is amended to provide that a
  6  3 savings refund deposited by an account holder cannot be
  6  4 counted as an account holder deposit for purposes of
  6  5 determining a savings refund.
  6  6    This division of the bill takes effect upon enactment and
  6  7 is retroactively applicable to January 1, 2006.
  6  8    DIVISION II == FAMILY INVESTMENT PROGRAM == LIMITED BENEFIT
  6  9 PLAN.  This division makes changes to statutory provisions
  6 10 involving the family investment program in Code chapter 239B.
  6 11 An existing exemption in Code section 239B.9 is eliminated
  6 12 that prohibits application of a limited benefit plan to a
  6 13 participant who is exempt from participation in the job
  6 14 opportunity and basic skills (JOBS) program.  A provision is
  6 15 eliminated that provides that if a family has been subject to
  6 16 a limited benefit plan and the family reapplies for the
  6 17 program, the eligibility requirements for the family are the
  6 18 same as for a new applicant.  A provision is revised so that
  6 19 if a minor parent is living with a specified relative who
  6 20 chooses a limited benefit plan, the limited benefit plan is
  6 21 applied only to the specified relative rather than to the
  6 22 entire family.
  6 23    DIVISION III == PATERNITY ESTABLISHMENT.  This division
  6 24 provides a new definition of the term "child" in Code chapter
  6 25 252F, relating to paternity establishment.  The new definition
  6 26 provides that a child is a person who is either less than age
  6 27 18 or is age 18 but less than age 19 and is engaged in
  6 28 completing high school graduation or equivalency requirements
  6 29 in a manner which is reasonably expected to result in
  6 30 completion of the requirements prior to the person reaching
  6 31 age 19.  The term is used, among other things, in establishing
  6 32 a support debt for the person determined to be the child's
  6 33 father.
  6 34    DIVISION IV == STATE CHILD CARE ASSISTANCE PROGRAM.  This
  6 35 division revises the waiting list requirements for the state
  7  1 child care assistance program.  Under 2005 Iowa Acts, chapter
  7  2 175, section 14, the upper income eligibility requirements for
  7  3 the program were increased for families, whose members are
  7  4 employed at least 28 hours per week with an income of more
  7  5 than 100 percent of the federal poverty level, from 140
  7  6 percent to 145 percent of the federal poverty level, and for
  7  7 families, whose members are employed at least 28 hours per
  7  8 week with a special needs child as a member of the family,
  7  9 from 175 to 200 percent of the federal poverty level.  Code
  7 10 section 237A.13 is amended to make permanent these changes in
  7 11 the waiting list requirements for the program.
  7 12 LSB 5352DP 81
  7 13 jp:rj/cf/24