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Microenterprise and Asset Development Act

Introduced: February 15, 1995 See on congress.gov
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 Everywhere this bill has been 4 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Mar 10, 1995
Referred to the Subcommittee on Postsecondary Education, Training and Life-Long Learning.
Mar 6, 1995
Referred to the Subcommittee on Human Resources.
Feb 15, 1995
Referred to the Committee on Ways and Means, and in addition to the Committee on Economic and Educational Opportunities, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Feb 15, 1995
Introduced in House
 Plain-English summary Congressional Research Service

TABLE OF CONTENTS:

Title I: Microenterprise and Asset Development

Title II: Demonstration Projects

Microenterprise and Asset Development Act - Title I: Microenterprise and Asset Development - Amends part A (Aid to Families with Dependent Children) (AFDC) of title IV of the Social Security Act (SSA) to exclude from AFDC eligibility determinations certain income and resources that are to be used for education, training, and employability purposes.

(Sec. 101) Requires the Secretary of Health and Human Services to report to the Congress on a revision of the AFDC limit on automobiles in order to increase the employability of AFDC recipients.

(Sec. 102) Provides for State agency exclusion from AFDC eligibility determinations of certain resources related to microenterprise initiatives by AFDC recipients towards self-sufficiency.

Requires State agencies to ensure that caseworkers advise AFDC recipients of the option for microenterprises.

Provides for the inclusion of microenterprise training and activities in the JOBS program under SSA title IV part F (Job Opportunities and Basic Skills Training Program).

Title II: Demonstration Projects - Amends the Internal Revenue Code to allow a deduction for contributions made to an individual development account (IDA) by or on behalf of a qualified individual to pay qualified expenses of such individual. Limits such contributions to $2,000 per year. Defines qualified expenses as those for: (1) postsecondary educational expenses; (2) a first-home purchase; and (3) retirement. Allows such deduction in arriving at adjusted gross income. Declares that contributions to IDAs are not subject to the gift tax or the tax on prohibited transactions.

(Sec. 203) Provides for the establishment of demonstration projects designed to determine: (1) the social, psychological, and economic effects of providing to individuals with limited means an opportunity to accumulate assets; and (2) the extent to which an asset-based welfare policy may be used to enable individuals with low income to achieve economic self-sufficiency.

Requires each organization authorized to conduct a demonstration project to establish a Reserve Fund for use in a prescribed manner.

Requires the Secretary to establish an oversight panel to: (1) develop guidelines for investment of Reserve Fund and IDA monies; (2) monitor project progress; and (3) make recommendations for projects not progressing adequately, and review their implementation.

Makes an individual eligible for assistance under a demonstration project if such individual is a member of a household that meets: (1) the income test of not more than 200 percent of the poverty threshold; and (2) the net worth test of not more than $20,000.

(Sec. 204) Requires the disregard by all means-tested Federal programs of funds in the IDAs of demonstration project participants.

What's happening now March 10, 1995

Referred to the Subcommittee on Postsecondary Education, Training and Life-Long Learning.

 Committees of jurisdiction 4
 Cosponsors 1
All 1 Democratic 1