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SF 4095

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/18/2022 09:29am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to human services; modifying the family assets for independence program;
appropriating money; amending Minnesota Statutes 2020, sections 256E.35,
subdivisions 1, 2, 4a, 6, 7; 256P.02, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2020, section 256E.35, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

The Minnesota family assets for independence initiative
is established to provide incentives for low-income families to accrue assets for education,
housing, vehicles,new text begin emergencies,new text end and economic development purposes.

Sec. 2.

Minnesota Statutes 2020, 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 deleted text beginserving the seven-county metropolitan
area
deleted text end; deleted text beginor
deleted text end

(3) a women-oriented economic development agency deleted text beginserving the seven-county
metropolitan area.
deleted text endnew text begin;
new text end

new text begin (4) a federally recognized Tribal nation; or
new text end

new text begin (5) a nonprofit organization, as defined under section 501(c)(3) of the Internal Revenue
Code.
new text end

(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 use of a dwelling unit as primary
quarters for living and eating separate from other individuals.

(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; deleted text beginand
deleted text end

(5) acquisition costs of a personal vehicle only if approved by the fiduciary organizationdeleted text begin.deleted text endnew text begin;
new text end

new text begin (6) contribution to an emergency savings account; and
new text end

new text begin (7) contribution to a Minnesota 529 savings plan.
new text end

Sec. 3.

Minnesota Statutes 2020, section 256E.35, subdivision 4a, is amended to read:


Subd. 4a.

Financial coaching.

A financial coach shall provide the following to program
participants:

(1) financial education relating to budgeting, debt reduction, asset-specific training,
new text begin credit building, new text endand financial stability activities;

(2) asset-specific training related to buying a home or vehicle, acquiring postsecondary
education, deleted text beginordeleted text end starting or expanding a small businessnew text begin, saving for emergencies, or saving for
a child's education
new text end; and

(3) financial stability education and training to improve and sustain financial security.

Sec. 4.

Minnesota Statutes 2020, section 256E.35, subdivision 6, is amended to read:


Subd. 6.

Withdrawal; matching; permissible uses.

(a) To receive a match, a
participating household must transfer funds withdrawn from a family asset account to its
matching fund custodial account held by the fiscal agent, according to the family asset
agreement. The fiscal agent must determine if the match request is for a permissible use
consistent with the household's family asset agreement.

(b) The fiscal agent must ensure the household's custodial account contains the applicable
matching funds to match the balance in the household's account, including interest, on at
least a quarterly basis and at the time of an approved withdrawal. Matches must be a
contribution of $3 from state grant or TANF funds for every $1 of funds withdrawn from
the family asset account not to exceed a deleted text begin$6,000deleted text endnew text begin $9,000new text end lifetime limit.

(c) Notwithstanding paragraph (b), if funds are appropriated for the Federal Assets for
Independence Act of 1998, and a participating fiduciary organization is awarded a grant
under that act, participating households with that fiduciary organization must be provided
matches as follows:

(1) from state grant and TANF funds, a matching contribution of $1.50 for every $1 of
funds withdrawn from the family asset account not to exceed a deleted text begin$3,000deleted text endnew text begin $4,500new text end lifetime limit;
and

(2) from nonstate funds, a matching contribution of not less than $1.50 for every $1 of
funds withdrawn from the family asset account not to exceed a deleted text begin$3,000deleted text endnew text begin $4,500new text end lifetime limit.

(d) Upon receipt of transferred custodial account funds, the fiscal agent must make a
direct payment to the vendor of the goods or services for the permissible use.

Sec. 5.

Minnesota Statutes 2020, section 256E.35, subdivision 7, is amended to read:


Subd. 7.

Program reporting.

The fiscal agent on behalf of each fiduciary organization
participating in a family assets for independence initiative must report quarterly to the
commissioner of human services identifying the participants with accounts, the number of
accounts, the amount of savings and matches for each participant's account, the uses of the
account, deleted text beginanddeleted text end the number of businesses, homes, vehicles, and educational services paid for
with money from the account,new text begin and the amount of contributions to Minnesota 529 savings
plans and emergency savings accounts,
new text end as well as other information that may be required
for the commissioner to administer the program and meet federal TANF reporting
requirements.

Sec. 6.

Minnesota Statutes 2020, section 256P.02, is amended by adding a subdivision to
read:


new text begin Subd. 4. new text end

new text begin Account exception. new text end

new text begin Family asset accounts under section 256E.35 and individual
development accounts authorized under the Assets for Independence Act, Title IV of the
Community Opportunities, Accountability, and Training and Educational Services Human
Services Reauthorization Act of 1998, Public Law 105-285, shall be excluded when
determining the equity value of personal property.
new text end

Sec. 7. new text beginAPPROPRIATION; FAMILY ASSETS FOR INDEPENDENCE.
new text end

new text begin $5,000,000 in fiscal year 2023 is appropriated from the general fund to the commissioner
of human services for the purposes of the family assets for independence program in
Minnesota Statutes, section 256E.35. This appropriation is added to the base.
new text end