REPORT TITLE:
TANF; $15,000 Asset Disregard


DESCRIPTION:
Allows recipients of TANF to have 1 trust account up to $15,000
for tuition, books, down payment on a primary residence, or for
business capitalization to be disregarded in calculation of
determination of assistance.  Also disregards a maximum of $200
monthly income deposited in the trust account.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.616        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO RECIPIENTS OF TEMPORARY ASSISTANCE TO NEEDY FAMILIES.



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

 1      SECTION 1.  Chapter 346, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "�346-     Income and asset disregard; trust accounts;
 
 5 rules.  (a)  The department shall disregard for any individual or
 
 6 family receiving temporary assistance to needy families or any
 
 7 other assistance under this chapter except for general
 
 8 assistance, the following amounts in any calculation of
 
 9 determination of assistance under section 346-53:
 
10      (1)  Earned income otherwise available to the assistance
 
11           unit, up to a $200 monthly maximum that is deposited
 
12           into a trust account approved by the department;
 
13      (2)  A total trust account balance not to exceed $15,000;
 
14      (3)  Amounts deposited into a trust account approved by the
 
15           department by a nonprofit organization to match, on a
 
16           dollar-for-dollar basis, contributions to the account
 
17           by the assistance unit; provided that the amount
 
18           disregarded under this paragraph, when added to the
 
19           amount disregarded under paragraph (1) may not exceed
 

 
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                                     H.B. NO.616        
                                                        
                                                        

 
 1           $200 per month; and
 
 2      (4)  Interest earned on money in a trust account; provided
 
 3           the interest remains in the account until expended and
 
 4           that only $15,000 of the account may be disregarded as
 
 5           a resource, regardless of interest income to the
 
 6           account.
 
 7      (b)  The moneys in the trust account may only be used for
 
 8 the following:
 
 9      (1)  Tuition, required fees, and books for attendance by a
 
10           member of the assistance unit at a career education
 
11           program, college, or university in the State and room
 
12           and board while attending the program, college, or
 
13           university if the person does not live at home during
 
14           attendance;
 
15      (2)  Tuition, required fees, books, for attendance by an
 
16           adult member of the assistance unit who is attending a
 
17           public secondary school or an equivalent level of
 
18           vocational or technical training in the State;
 
19      (3)  The down payment and closing costs for the purchase of
 
20           a primary residence of the adult recipient and a minor
 
21           who is or was a dependent child;
 
22      (4)  Initial capitalization and the first three months of
 
23           operating expenses for a business owned and managed by
 
24           an adult in the assistance unit;
 
25      (5)  Expenses of the trustee in administering the trust; or
 
26      (6)  Other purposes, but only when circumstances arise after
 
27           establishment of the trust that make disbursements
 
28           under paragraphs (1) to (4) impossible or highly
 
29           impractical, considering the changed circumstances.
 
30           The trust documents must provide that, if circumstances
 
31           change while the assistance unit is still receiving
 
32           assistance, the department shall determine whether the
 
33           requirements of this paragraph have been met and that
 
34           the trustee shall make this determination, in the
 
35           trustee's complete discretion, if the beneficiaries of
 
36           the trust are not receiving assistance when
 
37           circumstances change.
 
38      (c)  A person who intends to establish a trust account under
 
39 this section shall submit the proposed trust agreement to the
 
40 department for approval.  The trust agreement must provide that
 
41 the trustee may make payments from the trust only:
 
42      (1)  For the purposes described in subsection (b); and
 
43      (2)  After fifteen days prior to the notification to the
 
44           department if payments under subsection (b)(1) to (4)
 
45           are proposed to be made while the person who
 
46           established the trust is a recipient of assistance.
 
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 1      (d)  The department shall adopt rules in accordance with
 
 2 chapter 91 to carry out the purposes of this section, including
 
 3 requirements to be met by a nonprofit organization regarding how
 
 4 the organization is to make matching contributions."
 
 5      SECTION 2.  The department of human services shall obtain
 
 6 any federal waivers that may be required to implement this Act.
 
 7      SECTION 3.  New statutory material is underscored.
 
 8      SECTION 4.  This Act shall take effect upon its approval and
 
 9 upon the obtaining of any necessary federal waivers.
 
10 
 
11                           INTRODUCED BY:  _______________________