Bill Text: TX HB3070 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the creation of a social loan program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-29 - Left pending in committee [HB3070 Detail]
Download: Texas-2011-HB3070-Introduced.html
82R12718 SJM-D | ||
By: Veasey | H.B. No. 3070 |
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relating to the creation of a social loan program. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 531, Government Code, is amended by | ||
adding Subchapter Z to read as follows: | ||
SUBCHAPTER Z. CRISIS LOAN PROGRAM | ||
Sec. 531.991. DEFINITIONS. In this subchapter: | ||
(1) "Lone Star Card" means the card issued by the | ||
commission to deliver benefits for the financial assistance program | ||
under Chapter 31, Human Resources Code, and the supplemental | ||
nutrition assistance program under Chapter 33, Human Resources | ||
Code. | ||
(2) "Program" means the social loan program created | ||
under this subchapter. | ||
Sec. 531.992. SOCIAL LOAN PROGRAM. (a) The commission | ||
shall establish and implement the social loan program for the | ||
purpose of making low-interest, short-term loans to low-income | ||
individuals under emergency circumstances. The program shall | ||
provide: | ||
(1) lump-sum budgeting loans for the purpose of making | ||
a substantial emergency household purchase, including an appliance | ||
or fixture; and | ||
(2) crisis loans for last resort assistance in paying | ||
basic expenses, including food and gasoline, after the occurrence | ||
of a personal emergency. | ||
(b) The commission may charge interest on a loan made under | ||
this subchapter for the purpose of covering the administrative | ||
costs of the program. The interest charge for a loan made under | ||
this subchapter may not exceed 15 percent a year. | ||
(c) A loan made under this subchapter may not exceed $400. | ||
(d) The executive commissioner shall adopt rules as | ||
necessary to implement this subchapter. | ||
Sec. 531.993. USE OF LOAN MONEY. (a) A loan made to a person | ||
under this subchapter may be used only to purchase goods and | ||
services that are considered essential and necessary for the | ||
welfare of the loan recipient or the loan recipient's family not | ||
covered by an assistance program listed under Section 531.994(1). | ||
(b) The department by rule shall define what constitutes | ||
essential and necessary goods and services for purposes of this | ||
section. | ||
Sec. 531.994. ELIGIBILITY. To be eligible to receive a loan | ||
under the program, an individual must: | ||
(1) be a recipient of assistance or benefits under: | ||
(A) the financial assistance program under | ||
Chapter 31, Human Resources Code; | ||
(B) the medical assistance program under Chapter | ||
32, Human Resources Code; | ||
(C) the supplemental nutrition assistance | ||
program under Chapter 33, Human Resources Code; or | ||
(D) another appropriate health and human | ||
services program, as defined by the executive commissioner by rule; | ||
and | ||
(2) demonstrate an immediate need for an essential or | ||
necessary good or service as defined by rule under Section | ||
531.993(b). | ||
Sec. 531.995. LOAN APPLICATION. The executive commissioner | ||
by rule: | ||
(1) shall prescribe a standardized application form | ||
for the purpose of applying for a loan under this subchapter; and | ||
(2) may establish a set of priorities for making loans | ||
under this subchapter. | ||
Sec. 531.996. DISTRIBUTION OF LOAN. (a) Before | ||
distributing loan money to a loan recipient under this subchapter, | ||
the commission shall enter into a contract with the recipient that | ||
provides the terms and conditions of the loan. | ||
(b) The commission shall distribute loan money under this | ||
subchapter using the loan recipient's Lone Star Card. If a loan | ||
recipient has not been issued a Lone Star Card at the time a loan is | ||
disbursed to the recipient, the commission shall issue a Lone Star | ||
Card to the recipient for purposes of distributing the loan under | ||
this subchapter. | ||
Sec. 531.997. LOAN REPAYMENT. (a) As payment of a loan | ||
recipient's loan debt under this subchapter, the commission shall | ||
deduct payment on the loan from the assistance or benefits received | ||
by the recipient under an assistance program listed in Section | ||
531.994(1) at the rate and in the time provided in the contract | ||
entered into under Section 531.996(a). | ||
(b) A loan recipient under this subchapter shall repay the | ||
loan in full not later than the first anniversary of the date on | ||
which the loan was originally distributed. | ||
Sec. 531.998. SOCIAL LOAN FUND. (a) The social loan fund is | ||
created as an account in the general revenue fund. The account is | ||
composed of: | ||
(1) legislative appropriations; | ||
(2) gifts, grants, donations, and matching funds | ||
received under Subsection (b); and | ||
(3) other money required by law to be deposited in the | ||
account. | ||
(b) The commission may solicit and accept gifts, grants, and | ||
donations from any public or private source for the purposes of this | ||
subchapter. | ||
(c) Income from money in the account, including interest, | ||
shall be credited to the account. | ||
(d) Money in the account may be used only for the purposes of | ||
this subchapter. | ||
SECTION 2. Not later than December 1, 2012, the executive | ||
commissioner shall: | ||
(1) establish and implement the social loan program as | ||
required by Subchapter Z, Chapter 531, Government Code, as added by | ||
this Act; and | ||
(2) adopt the rules required by Sections 531.992(d), | ||
531.993(b), 531.994(1)(D), and 531.995, Government Code, as added | ||
by this Act. | ||
SECTION 3. This Act takes effect December 1, 2011, but only | ||
if the constitutional amendment authorizing the legislature to | ||
create a social loan program is approved by the voters. If that | ||
amendment is not approved by the voters, this Act has no effect. |