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Minutes for HB2160 - Committee on Children and Seniors
Short Title
Amending the individual development account program act to allow certain expenditures by individuals who were likely to age out of foster care.
Minutes Content for Thu, Feb 9, 2017
The Chair opened the hearing on HB 2160 and requested staff provide an explanation of the bill. Kyle Hamilton said that the bill speaks primarily to the parameters an individual must adhere to when using savings and matching funds for the purpose of purchases and payments (Attachment 6).
Kathy Armstrong addressed the committee regarding HB 2160 with background information on the Independent Living Individual Development Account Act (IDA) (Attachment 7). She noted that IDAs provide matchingsavings accounts to help people with limited resources save their earnings towards specific purchases or services. The program is designed to encourage long-term stability planning among youth; the expansion of the bill would accommodate youth aging out of foster care. Ms. Armstrong observed that evidence-based research reveals multiple long-term benefits to the youth.
In response to members' questions, Ms. Armstrong reiterated:
- Financial education is available from local organizations as well the required course work with IDA.
- Corporations and individuals can contribute to the matching funds accounts; participants have from 1-5 years to access the funding.
- Participants utilize a nine-page transition plan to assist in decision-making for their future.
- Data is available in regard to the number of participants making transitions and will be provided to members.
Lorna Moore commented further on the $500,000 tax credit funds held in reserve accounts and is separate from participants' accounts (Attachment 8). She explained that those funds are depleted each year when dispensed as matching funds. Ms. Moore indicated that local dealerships and community organizations also contribute to reserve accounts. Responding to a member's question, Ms. Moore said that 15 percent of funding is allowed for administrative costs, which cover staff, financial education and utilities. She related that the IDA program is designed to instill healthy financial habits for all low-income participants to help guarantee their future success.
The hearing on HB 2160 was closed.
