HF 4898

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/25/2024 03:51pm

A bill for an act
relating to human services; modifying the family assets for independence program;
amending Minnesota Statutes 2022, section 256E.35, subdivision 5; Minnesota
Statutes 2023 Supplement, section 256E.35, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2023 Supplement, section 256E.35, subdivision 2, is amended
to read:

Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Eligible educational institution" means the following:

(1) an institution of higher education described in section 101 or 102 of the Higher
Education Act of 1965; or

(2) an area vocational education school, as defined in subparagraph (C) or (D) of United
States Code, title 20, chapter 44, section 2302 (3) (the Carl D. Perkins Vocational and
Applied Technology Education Act), which is located within any state, as defined in United
States Code, title 20, chapter 44, section 2302 (30). This clause is applicable only to the
extent section 2302 is in effect on August 1, 2008.

(c) "Family asset account" means a savings account opened by a household participating
in the Minnesota family assets for independence initiative.

(d) "Fiduciary organization" means:

(1) a community action agency that has obtained recognition under section 256E.31;

(2) a federal community development credit union;

(3) a women-oriented economic development agency;

(4) a federally recognized Tribal Nation; or

(5) a nonprofit organization as defined under section 501(c)(3) of the Internal Revenue
Code.

(e) "Financial coach" means a person who:

(1) has completed an intensive financial literacy training workshop that includes
curriculum on budgeting to increase savings, debt reduction and asset building, building a
good credit rating, and consumer protection;

(2) participates in ongoing statewide family assets for independence in Minnesota (FAIM)
network training meetings under FAIM program supervision; and

(3) provides financial coaching to program participants under subdivision 4a.

(f) "Financial institution" means a bank, bank and trust, savings bank, savings association,
or credit union, the deposits of which are insured by the Federal Deposit Insurance
Corporation or the National Credit Union Administration.

(g) "Household" means all individuals who share new text begin finances and new text end use of a dwelling unit as
primary quarters for living and eating separate from other individuals. new text begin Sharing finances
does not include situations in which a person is living in the same dwelling unit as others
without sharing any other financial arrangements.
new text end

(h) "Permissible use" means:

(1) postsecondary educational expenses at an eligible educational institution as defined
in paragraph (b), including books, supplies, and equipment required for courses of instruction;

(2) acquisition costs of acquiring, constructing, or reconstructing a residence, including
any usual or reasonable settlement, financing, or other closing costs;

(3) business capitalization expenses for expenditures on capital, plant, equipment, working
capital, and inventory expenses of a legitimate business pursuant to a business plan approved
by the fiduciary organization;

(4) acquisition costs of a principal residence within the meaning of section 1034 of the
Internal Revenue Code of 1986 which do not exceed 100 percent of the average area purchase
price applicable to the residence determined according to section 143(e)(2) and (3) of the
Internal Revenue Code of 1986;

(5) acquisition costs of a personal vehicle only if approved by the fiduciary organization;

(6) contributions to an emergency savings account; and

(7) contributions to a Minnesota 529 savings plan.

Sec. 2.

Minnesota Statutes 2022, section 256E.35, subdivision 5, is amended to read:

Subd. 5.

Household eligibility; participation.

(a) To be eligible for deleted text begin state or TANF
matching funds in deleted text end the family assets for independence initiative, a household must deleted text begin meet the
eligibility requirements of the federal Assets for Independence Act, Public Law 105-285,
in Title IV, section 408 of that act deleted text end new text begin have maximum income that is equal to or less than the
greater of:
new text end

new text begin (1) 50 percent of the area median income as determined by the United States Department
of Housing and Urban Development; or
new text end

new text begin (2) 200 percent of the federal poverty guidelines new text end .

new text begin (b) To be eligible for state matching funds under this section, a household must meet
the requirements of this section.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Each participating household must sign a family asset agreement that includes
the amount of scheduled deposits into its savings account, the proposed use, and the proposed
savings goal. A participating household must agree to complete an economic literacy training
program.

deleted text begin (c) deleted text end new text begin (d) new text end Participating households may only deposit money that is derived from household
earned income or from state and federal income tax credits.