First Regular Session
Sixty-second General Assembly
LLS NO. 99-0789.02 Jennifer Gilroy HOUSE BILL 99-1357
STATE OF COLORADO
BY REPRESENTATIVES George and Gordon;
also SENATORS Blickensderfer, Feeley, and Linkhart.
FINANCE
APPROPRIATIONS
A BILL FOR AN ACT
101 CONCERNING THE CREATION OF AN INDIVIDUAL DEVELOPMENT ACCOUNT
102 PROGRAM, AND MAKING AN APPROPRIATION IN CONNECTION
103 THEREWITH.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Creates the "Individual Development Account Act". Defines
certain terms used in the act. Requires the banking board, in conjunction
with the state commissioner of financial services, to establish an
individual development account program ("IDA program"). Requires the
IDA program to provide that eligible individuals who establish an
individual development account through a sponsoring organization shall
receive the benefit of matching funds, payable directly to a service
provider, at the time of expenditure of the moneys in the account for the
purpose of securing post-secondary education or training, purchasing a
first home, or capitalizing a new business. Also allows expenditures of
up to 10% of the account for supportive counseling, mentoring, or
tutoring.
Establishes the individual development account fund in the office
of the state treasurer. Specifies that the moneys therein are continuously
appropriated to the state bank commissioner for purposes of disbursement
to the financial institutions with which the 3 certified fiduciary
organizations selected by the division of banking have contracted.
Provides that such moneys are to be disbursed by the state bank
commissioner to match the moneys raised by the fiduciary organizations
in a ratio of 1:1. Directs the certified fiduciary organization to match the
expenditures that an eligible program participant makes from the
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
Page 2
individual development account for one or more of the qualified purposes
in a ratio determined by the sponsoring organization working with the
individual.
Provides that an individual is eligible for participation in the IDA
program if his or her income does not exceed 200% of the federal poverty
level and he or she has entered into an agreement with a sponsoring
organization that, in turn, has entered into an agreement with a certified
fiduciary organization. Directs sponsoring organizations to recruit
individuals to participate in the IDA program and further requires such
sponsoring organizations to determine the eligibility of such individuals.
Identifies the additional duties of sponsoring organizations in working
with and counseling individuals about the IDA program. Provides that
the principal in an individual development account shall not exceed
$10,000. States that the program shall not be construed to create an
entitlement.
Specifies that a program participant shall forfeit access to
matching funds and the interest earned on the account if the participant
withdraws contributions for uses other than those uses authorized under
the program. States that the account interest forfeited thereby shall revert
to the individual development account fund and shall not be treated as
taxable income.
Directs the division of banking to certify 3 qualified nonprofit,
fund-raising organizations to serve as certified fiduciary organizations.
Requires the banking board, in conjunction with the state commissioner
of financial services, to adopt rules regarding the following:
The qualifications a nonprofit fund-raising organization
shall meet in order to be certified;
The amount of a fee that may be assessed for certification
of a fiduciary organization to cover expenses of the
administration of the IDA program.
Directs the certified fiduciary organizations to provide individuals
making charitable contributions with the necessary documentation
required by the department of revenue to enable the contributor to claim
a tax credit.
Provides that deposits made by an eligible individual into an
individual development account and interest earned on the deposits shall
not be included in taxable income. Provides for a tax credit for
contributions of cash, stocks, or bonds to certified fiduciary organizations
for use in the IDA program.
Makes an appropriation.
1 Be it enacted by the General Assembly of the State of Colorado:
Page 3
1 SECTION 1. Title 11, Colorado Revised Statutes, is amended
2 BY THE ADDITION OF A NEW ARTICLE to read:
3 ARTICLE 39
4 Incentives for Self-sufficiency
5 11-39-101. Short title. THIS ARTICLE SHALL BE KNOWN AND MAY
6 BE CITED AS THE "INDIVIDUAL DEVELOPMENT ACCOUNT ACT".
7 11-39-102. Legislative declaration. (1) THE GENERAL
8 ASSEMBLY HEREBY FINDS, DETERMINES, AND DECLARES THAT:
9 (a) THE UNREALIZED AND LOST HUMAN RESOURCE POTENTIAL OF
10 LOW-INCOME INDIVIDUALS OF THIS STATE RESULTS IN AN OVERALL LOSS
11 TO THE POTENTIAL OF THE ENTIRE STATE;
12 (b) CURRENT PUBLIC ASSISTANCE PROGRAMS DO NOT FULLY
13 ALLOW AND ENCOURAGE SELF-SUFFICIENCY;
14 (c) IT IS IN THE BEST INTERESTS OF ALL COLORADANS TO
15 STRUCTURE INCENTIVES IN A WAY THAT WILL RESULT IN A GREATER
16 LIKELIHOOD THAT LOW-INCOME INDIVIDUALS WILL ATTAIN
17 SELF-SUFFICIENCY;
18 (d) IT IS IN THE BEST INTERESTS OF ALL COLORADANS TO
19 CONCENTRATE APPROPRIATE ASSETS AND INVESTMENTS ON LOW-INCOME
20 INDIVIDUALS AND IN LOW-INCOME NEIGHBORHOODS AND COMMUNITIES IN
21 ORDER TO ALLOW LOW-INCOME INDIVIDUALS, NEIGHBORHOODS, AND
22 COMMUNITIES TO BENEFIT FROM THE DEVELOPMENTS ACHIEVED THROUGH
23 THE GROWTH IN ASSETS AND INVESTMENTS;
24 (e) ACHIEVING SELF-SUFFICIENCY FOR LOW-INCOME INDIVIDUALS
25 CAN BEST BE ADDRESSED THROUGH PUBLIC POLICY THAT INVESTS IN ASSET
26 ACCUMULATION AND IS SUPPORTED BY PRIVATE SECTOR PHILANTHROPY;
Page 4
1 (f) REQUIRING LOW-INCOME INDIVIDUALS TO CONTRIBUTE MONEYS
2 THAT WILL BE MATCHED WITH PUBLIC AND PHILANTHROPIC SOURCES OF
3 MONEYS INCREASES PERSONAL RESPONSIBILITY AND ENHANCES SUCH
4 INDIVIDUALS' CHANCES OF FULFILLING MAJOR LIFE GOALS AND
5 OPPORTUNITIES;
6 (g) IT IS IN THE BEST INTERESTS OF ALL COLORADANS TO PROVIDE
7 A MECHANISM FOR ENCOURAGING INDIVIDUALS TO BE SELF-SUFFICIENT BY
8 PROVIDING SUCH INDIVIDUALS WITH A MEANS OF ENHANCING THEIR
9 INVESTMENTS THROUGH ACCESS TO MATCHING FUNDS; AND
10 (h) SUCH SELF-SUFFICIENCY MAY, IN TURN, RESULT IN FEWER
11 PEOPLE NEEDING TO SEEK PUBLIC ASSISTANCE.
12 (2) THEREFORE, THE GENERAL ASSEMBLY HEREBY AUTHORIZES
13 THE IMPLEMENTATION OF AN INDIVIDUAL DEVELOPMENT ACCOUNT
14 PROGRAM TO PROVIDE INCENTIVES AND MOTIVATION FOR LOW-INCOME
15 INDIVIDUALS AND FAMILIES TO DEVELOP AND CONCENTRATE ASSETS AND
16 INVESTMENTS FOR USE BY SUCH INDIVIDUALS WHO ARE STRIVING FOR
17 SELF-SUFFICIENCY.
18 11-39-103. Definitions. AS USED IN THIS ARTICLE, UNLESS THE
19 CONTEXT OTHERWISE REQUIRES:
20 (1) "FIDUCIARY ORGANIZATION" MEANS ANY NONPROFIT
21 FUND-RAISING ORGANIZATION THAT IS EXEMPT FROM TAXATION UNDER
22 SECTION 501 (c) (3) OF THE FEDERAL "INTERNAL REVENUE CODE OF
23 1986", AS AMENDED, AND IS CERTIFIED TO ACT AS A FIDUCIARY
24 ORGANIZATION PURSUANT TO SECTION 11-39-106.
25 (2) "FINANCIAL INSTITUTION" MEANS AN ORGANIZATION
26 AUTHORIZED TO DO BUSINESS UNDER STATE OR FEDERAL LAWS RELATING
Page 5
1 TO FINANCIAL INSTITUTIONS AND INCLUDES A BANK, TRUST COMPANY,
2 SAVINGS BANK, BUILDING AND LOAN ASSOCIATION, SAVINGS AND LOAN
3 COMPANY OR ASSOCIATION, AND CREDIT UNION.
4 (3) "INDIVIDUAL DEVELOPMENT ACCOUNT" MEANS A CONTRACT OF
5 DEPOSIT BETWEEN A DEPOSITOR AND A FINANCIAL INSTITUTION SELECTED
6 BY A CERTIFIED FIDUCIARY ORGANIZATION, AS FACILITATED BY A
7 SPONSORING ORGANIZATION, PURSUANT TO SECTION 11-39-105 (2) (d).
8 (4) "PROGRAM" OR "IDA PROGRAM" MEANS THE INDIVIDUAL
9 DEVELOPMENT ACCOUNT PROGRAM ESTABLISHED PURSUANT TO THIS
10 ARTICLE.
11 (5) "SERVICE PROVIDER" MEANS AN INSTITUTION OF HIGHER
12 EDUCATION; A PROVIDER OF OCCUPATIONAL OR VOCATIONAL EDUCATION;
13 A TRADE SCHOOL; A BANK, SAVINGS AND LOAN, OR OTHER MORTGAGE
14 LENDER; A TITLE COMPANY; OR THE LESSOR OR VENDOR OF ANY OFFICE
15 SUPPLIES, OFFICE EQUIPMENT, RETAIL SPACE OR OFFICE SPACE OR OTHER
16 BUSINESS SPACE, OR SUCH OTHER PROVIDER OF GOODS OR SERVICES TO BE
17 USED FOR THE COMMENCEMENT OF A BUSINESS.
18 (6) "SPONSORING ORGANIZATION" MEANS A NONPROFIT
19 ORGANIZATION THAT IS EXEMPT FROM TAXATION UNDER SECTION 501
20 (3) OF THE FEDERAL "INTERNAL REVENUE CODE OF 1986", AS AMENDED,
21 AND IS DESIGNATED BY A FIDUCIARY ORGANIZATION, WHICH MAY BE ONE
22 AND THE SAME, TO SELECT ELIGIBLE INDIVIDUALS AND FAMILIES TO
23 PARTICIPATE IN THE PROGRAM.
24 11-39-104. Individual development account program -
25 individual development account fund. (1) THE BANKING BOARD, IN
26 CONJUNCTION WITH THE STATE COMMISSIONER OF FINANCIAL SERVICES,
Page 6
1 SHALL ESTABLISH AN INDIVIDUAL DEVELOPMENT ACCOUNT PROGRAM AS
2 SET FORTH IN THIS ARTICLE. THE IDA PROGRAM SHALL PROVIDE THAT
3 ELIGIBLE INDIVIDUALS WHO ESTABLISH AN INDIVIDUAL DEVELOPMENT
4 ACCOUNT, AS SET FORTH IN SECTION 11-39-105, SHALL RECEIVE THE
5 BENEFIT OF MATCHING FUNDS WHICH FUNDS SHALL BE PAYABLE DIRECTLY
6 TO THE SERVICE PROVIDER, AS THAT TERM IS DEFINED IN SECTION
7 11-39-103 (5), AT THE TIME OF THE ELIGIBLE INDIVIDUAL'S EXPENDITURE
8 OF THE MONEYS IN HIS OR HER INDIVIDUAL DEVELOPMENT ACCOUNT FOR
9 ANY OF THE FOLLOWING PURPOSES:
10 (a) SECURING POST-SECONDARY EDUCATION, INCLUDING BUT NOT
11 LIMITED TO COMMUNITY COLLEGE COURSES, COURSES AT A FOUR-YEAR
12 COLLEGE OR UNIVERSITY, OR POST-COLLEGE GRADUATE COURSES;
13 (b) SECURING POST-SECONDARY OCCUPATIONAL TRAINING,
14 INCLUDING BUT NOT LIMITED TO VOCATIONAL OR TRADE SCHOOL
15 TRAINING;
16 (c) PURCHASING A HOME FOR THE FIRST TIME, EITHER
17 INDIVIDUALLY OR WITH ANOTHER FAMILY MEMBER; OR
18 (d) INITIAL CAPITALIZATION OF A BUSINESS.
19 (2) IN ADDITION TO THE PURPOSES STATED IN SUBSECTION (1) OF
20 THIS SECTION, AN INDIVIDUAL MAY EXPEND UP TO TEN PERCENT OF THE
21 MONEYS FROM HIS OR HER INDIVIDUAL DEVELOPMENT ACCOUNT FOR
22 SUPPORTIVE COUNSELING, MENTORING, TUTORING, OR OTHER RELATED
23 SERVICES AS PROVIDED BY SPONSORING ORGANIZATIONS AND AS
24 APPROVED BY SUCH INDIVIDUAL ACCOUNT HOLDERS.
25 (3) NOTWITHSTANDING THE PROVISIONS OF SUBSECTIONS (1) AND
26 (2) OF THIS SECTION, AN ELIGIBLE PARTICIPANT IN THE IDA PROGRAM WHO
Page 7
1 IS ALSO A PARTICIPANT IN THE COLORADO WORKS PROGRAM MAY ONLY
2 EXPEND MONEYS FROM HIS OR HER INDIVIDUAL DEVELOPMENT ACCOUNT
3 IN CONFORMITY WITH THE PURPOSES PRESCRIBED BY FEDERAL LAW AND
4 SECTION 26-2-716 (2) (g), C.R.S., AND ANY RULES PROMULGATED IN
5 CONJUNCTION THEREWITH.
6 (4) (a) THERE IS HEREBY CREATED, IN THE OFFICE OF THE STATE
7 TREASURER, THE INDIVIDUAL DEVELOPMENT ACCOUNT FUND. THE
8 MONEYS IN THE INDIVIDUAL DEVELOPMENT ACCOUNT FUND ARE HEREBY
9 CONTINUOUSLY APPROPRIATED TO THE STATE BANK COMMISSIONER FOR
10 PURPOSES OF DISBURSEMENT TO THE FINANCIAL INSTITUTIONS WITH WHICH
11 THE THREE CERTIFIED FIDUCIARY ORGANIZATIONS SELECTED PURSUANT TO
12 SECTION 11-39-106 HAVE CONTRACTED. THE STATE BANK COMMISSIONER
13 SHALL DISBURSE MONEYS APPROPRIATED FROM THE INDIVIDUAL
14 DEVELOPMENT ACCOUNT FUND TO THE FINANCIAL INSTITUTIONS
15 IDENTIFIED BY THE CERTIFIED FIDUCIARY ORGANIZATIONS TO MATCH THE
16 PHILANTHROPIC CONTRIBUTIONS THAT THE FIDUCIARY ORGANIZATIONS
17 HAVE RAISED IN A RATIO OF ONE DOLLAR OF INDIVIDUAL DEVELOPMENT
18 ACCOUNT FUND MONEYS FOR EVERY ONE DOLLAR OF PHILANTHROPIC
19 MONEYS RAISED BY THE FIDUCIARY ORGANIZATION. THE STATE BANK
20 COMMISSIONER SHALL NOT DISBURSE MORE THAN FIVE HUNDRED
21 THOUSAND DOLLARS TO ANY ONE CERTIFIED FIDUCIARY ORGANIZATION.
22 (b) ALL INVESTMENT EARNINGS DERIVED FROM THE DEPOSIT AND
23 INVESTMENT OF MONEYS IN THE INDIVIDUAL DEVELOPMENT ACCOUNT
24 FUND SHALL BE CREDITED TO THE FUND. ANY MONEYS NOT APPROPRIATED
25 SHALL REMAIN IN THE FUND AND SHALL NOT BE TRANSFERRED OR REVERT
26 TO THE GENERAL FUND OF THE STATE AT THE END OF ANY FISCAL YEAR.
Page 8
1 (5) THE CERTIFIED FIDUCIARY ORGANIZATION SHALL MATCH THE
2 EXPENDITURES THAT AN ELIGIBLE PROGRAM PARTICIPANT MAKES FROM AN
3 INDIVIDUAL DEVELOPMENT ACCOUNT FOR ONE OR MORE OF THE QUALIFIED
4 PURPOSES IDENTIFIED IN THIS SECTION BY DISBURSING SUCH MATCHING
5 FUNDS DIRECTLY TO A SERVICE PROVIDER, AS THAT TERM IS DEFINED IN
6 SECTION 11-39-103 (5). SUCH MATCHING CONTRIBUTIONS SHALL BE MADE
7 IN A RATIO DETERMINED BY THE SPONSORING ORGANIZATION ASSISTING
8 THE INDIVIDUAL OR FAMILY HOLDING THE INDIVIDUAL DEVELOPMENT
9 ACCOUNT.
10 11-39-105. Eligibility for participation in the individual
11 development account program. (1) SPONSORING ORGANIZATIONS
12 SELECTED BY CERTIFIED FIDUCIARY ORGANIZATIONS SHALL RECRUIT
13 INDIVIDUALS TO PARTICIPATE IN THE IDA PROGRAM AND SHALL
14 DETERMINE THE ELIGIBILITY OF PROSPECTIVE PARTICIPANTS BASED UPON
15 THE CRITERIA SET FORTH IN THIS SUBSECTION (1). AN INDIVIDUAL SHALL
16 BE ELIGIBLE TO BE SELECTED FOR PARTICIPATION IN THE IDA PROGRAM IF
17 THE INDIVIDUAL MEETS THE FOLLOWING REQUIREMENTS:
18 (a) THE INDIVIDUAL'S INCOME DOES NOT EXCEED TWO HUNDRED
19 PERCENT OF THE FEDERAL POVERTY LEVEL;
20 (b) THE INDIVIDUAL HAS ENTERED INTO AN INDIVIDUAL
21 DEVELOPMENT ACCOUNT AGREEMENT WITH A SPONSORING ORGANIZATION,
22 AS PROVIDED IN SECTION 11-39-106; AND
23 (c) THE INDIVIDUAL HAS ESTABLISHED AN INDIVIDUAL
24 DEVELOPMENT ACCOUNT WITH A FINANCIAL INSTITUTION SELECTED BY
25 ONE OF THE THREE CERTIFIED FIDUCIARY ORGANIZATIONS, AS FACILITATED
26 BY A SPONSORING ORGANIZATION, AND HAS MADE A COMMITMENT TO SAVE
Page 9
1 AND MATCH PUBLIC AND PHILANTHROPIC SOURCES OF MONEYS THAT ARE
2 AVAILABLE TO MATCH THE INDIVIDUAL CONTRIBUTIONS TO THE
3 INDIVIDUAL DEVELOPMENT ACCOUNT, AS SET FORTH IN THIS SECTION.
4 (2) THE SPONSORING ORGANIZATION SHALL HAVE THE FOLLOWING
5 DUTIES:
6 (a) TO DETERMINE THE ELIGIBILITY OF INDIVIDUALS TO
7 PARTICIPATE IN THE IDA PROGRAM;
8 (b) TO COUNSEL SUCH INDIVIDUALS ABOUT THE IDA PROGRAM;
9 (c) TO CONDUCT ORIENTATIONS WITH INDIVIDUALS ON THE
10 PHILOSOPHY UNDERLYING THE PROGRAM AND THE GENERAL
11 REQUIREMENTS OF THE IDA PROGRAM;
12 (d) TO FACILITATE THE OPENING OF INDIVIDUAL DEVELOPMENT
13 ACCOUNTS WITH PARTICIPATING FINANCIAL INSTITUTIONS;
14 (e) TO PROVIDE CREDIT COUNSELING, BUDGETING, AND FINANCIAL
15 MANAGEMENT TRAINING TO THE PARTICIPANTS;
16 (f) TO JOINTLY DEVELOP SPECIFIC GOALS AND PERFORMANCE
17 CRITERIA WITH EACH INDIVIDUAL; AND
18 (g) TO SET APPROPRIATE MATCHING RATIOS OF PHILANTHROPIC OR
19 PUBLIC MONEYS TO CONTRIBUTIONS MADE BY PROGRAM PARTICIPANTS.
20 (3) THE PROGRAM PARTICIPANT MAY WITHDRAW CONTRIBUTIONS
21 MADE BY THE PARTICIPANT FOR USES OTHER THAN THOSE USES
22 AUTHORIZED UNDER THIS PROGRAM, BUT BY SUCH ACTION FORFEITS
23 ACCESS TO ANY MATCHING FUNDS FOR SUCH WITHDRAWAL AND THE
24 INTEREST EARNED ON CONTRIBUTIONS THE PROGRAM PARTICIPANT HAS
25 MADE TO THE INDIVIDUAL DEVELOPMENT ACCOUNT. SUCH INTEREST
26 SHALL REVERT TO THE INDIVIDUAL DEVELOPMENT ACCOUNT FUND
Page 10
1 ESTABLISHED IN SECTION 11-39-104 (4) AND SHALL NOT BE TREATED AS
2 TAXABLE INCOME.
3 (4) THE PRINCIPAL OF AN INDIVIDUAL DEVELOPMENT ACCOUNT
4 SHALL NOT EXCEED TEN THOUSAND DOLLARS. NOT MORE THAN ONE
5 INDIVIDUAL PER HOUSEHOLD MAY HAVE AN INDIVIDUAL DEVELOPMENT
6 ACCOUNT.
7 (5) NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO CREATE AN
8 ENTITLEMENT TO MATCHING FUNDS. THE NUMBER OF INDIVIDUALS WHO
9 MAY RECEIVE DISBURSEMENT OF MATCHING PUBLIC AND PHILANTHROPIC
10 FUNDS BY CERTIFIED FIDUCIARY ORGANIZATIONS PURSUANT TO THE IDA
11 PROGRAM ESTABLISHED IN THIS ARTICLE SHALL NECESSARILY BE LIMITED
12 BY THE AMOUNT OF PUBLIC AND PHILANTHROPIC FUNDS AVAILABLE IN ANY
13 GIVEN YEAR FOR SUCH PURPOSE.
14 11-39-106. Fiduciary organizations - certification - fees.
15 (1) THE DIVISION OF BANKING SHALL SELECT AND CERTIFY THREE
16 QUALIFIED NONPROFIT, FUND-RAISING ORGANIZATIONS TO SERVE AS
17 CERTIFIED FIDUCIARY ORGANIZATIONS FOR PURPOSES OF THIS ARTICLE.
18 THE BANKING BOARD, IN CONJUNCTION WITH THE STATE COMMISSIONER
19 OF FINANCIAL SERVICES, SHALL PROMULGATE RULES ADDRESSING THE
20 FOLLOWING:
21 (a) THE QUALIFICATIONS A NONPROFIT, FUND-RAISING
22 ORGANIZATION SHALL MEET IN ORDER TO BE SELECTED AND CERTIFIED,
23 INCLUDING:
24 (I) THAT THE FIDUCIARY ORGANIZATION HAS ENTERED OR WILL
25 ENTER INTO A CONTRACT WITH ONE OR MORE SPONSORING
26 ORGANIZATIONS. SAID CONTRACT SHALL PROVIDE THAT THE SPONSORING
Page 11
1 ORGANIZATION SHALL BE RESPONSIBLE FOR SELECTING ELIGIBLE
2 INDIVIDUALS FOR AND COUNSELING ELIGIBLE INDIVIDUALS ABOUT THE IDA
3 PROGRAM AND ENTERING INTO AGREEMENTS WITH SUCH ELIGIBLE
4 INDIVIDUALS, WHICH AGREEMENTS SHALL ESTABLISH THAT THE
5 INDIVIDUAL HAS OPENED OR WILL OPEN AN INTEREST-BEARING ACCOUNT
6 AT A FINANCIAL INSTITUTION IDENTIFIED BY THE CERTIFIED FIDUCIARY
7 ORGANIZATION AND HAS DEDICATED THE ACCOUNT FOR ONE OF THE
8 PURPOSES LISTED IN SECTION 11-39-104.
9 (II) THAT THE FIDUCIARY ORGANIZATION HAS DEVELOPED A PLAN
10 FOR RAISING FUNDS FOR PURPOSES OF MATCHING DISBURSEMENTS MADE
11 BY THE STATE BANK COMMISSIONER PURSUANT TO SECTION 11-39-104 (4),
12 WHICH SUM SHALL BE USED, IN TURN, TO MATCH CONTRIBUTIONS MADE BY
13 ELIGIBLE INDIVIDUALS TO THEIR INDIVIDUAL DEVELOPMENT ACCOUNTS;
14 (III) THAT THE FIDUCIARY ORGANIZATION HAS ESTABLISHED AN
15 INTEREST-BEARING ACCOUNT AT A BANK, SAVINGS AND LOAN
16 ASSOCIATION, FEDERAL SAVINGS BANK, OR OTHER FEDERALLY-REGULATED
17 FINANCIAL INSTITUTION THAT IS FEDERALLY INSURED, AND THAT THE
18 DEPOSITS OF PHILANTHROPIC MONEYS OR STATE MONEYS TO SUCH
19 ACCOUNT ARE DEDICATED FOR USE AS MATCHING FUNDS FOR INDIVIDUAL
20 DEVELOPMENT ACCOUNTS;
21 (b) THAT REASONABLE ADMINISTRATIVE COSTS MAY BE
22 COLLECTED FROM PHILANTHROPIC MATCHING SOURCES TO SUPPORT THE
23 OPERATION OF THE PROGRAM; AND
24 (c) THE AMOUNT OF A FEE THAT MAY BE ASSESSED FOR
25 CERTIFICATION OF A FIDUCIARY ORGANIZATION TO COVER THE
26 REASONABLE EXPENSES ASSOCIATED WITH THE ADMINISTRATION OF THIS
Page 12
1 ARTICLE.
2 (2) IT SHALL BE THE RESPONSIBILITY OF THE CERTIFIED FIDUCIARY
3 ORGANIZATIONS TO PROVIDE INDIVIDUALS WHO CONTRIBUTE CASH,
4 STOCKS, OR BONDS FOR USE IN THE INDIVIDUAL DEVELOPMENT ACCOUNT
5 PROGRAM WITH THE NECESSARY DOCUMENTATION, IN THE FORM
6 PRESCRIBED BY THE DEPARTMENT OF REVENUE, THAT SUCH INDIVIDUALS
7 MAY USE TO CLAIM THE INCOME TAX CREDIT DESCRIBED IN SECTION
8 39-22-522, C.R.S.
9 SECTION 2. 39-22-104 (4), Colorado Revised Statutes, is
10 amended BY THE ADDITION OF A NEW PARAGRAPH to read:
11 39-22-104. Income tax imposed on individuals, estates, and
12 trusts - single rate. (4) There shall be subtracted from federal taxable
13 income:
14 (j) (I) FOR ANY INCOME TAX YEAR COMMENCING ON OR AFTER
15 JANUARY 1, 2000, IF THE AMOUNT OF STATE REVENUES FOR THE STATE
16 FISCAL YEAR ENDING IN THAT INCOME TAX YEAR EXCEEDS THE LIMITATION
17 ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 (7) (a) OF
18 ARTICLE X OF THE STATE CONSTITUTION AND THE VOTERS STATEWIDE
19 HAVE EITHER NOT AUTHORIZED THE STATE TO RETAIN AND SPEND ALL OF
20 THE EXCESS STATE REVENUES OR HAVE AUTHORIZED THE STATE TO RETAIN
21 AND SPEND ONLY A PORTION OF THE EXCESS STATE REVENUES FOR THAT
22 FISCAL YEAR, AN AMOUNT EQUAL TO ANY DEPOSIT AN ELIGIBLE
23 INDIVIDUAL HAS MADE INTO AN INDIVIDUAL DEVELOPMENT ACCOUNT
24 PURSUANT TO ARTICLE 39 OF TITLE 11, C.R.S., PLUS ANY INTEREST EARNED
25 ON SUCH DEPOSIT DURING THE TAXABLE YEAR.
26 (II) ANY STATE INCOME TAX MODIFICATION ALLOWED PURSUANT
Page 13
1 TO THE PROVISIONS OF THIS PARAGRAPH (j) SHALL BE PUBLISHED IN RULES
2 PROMULGATED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF
3 REVENUE IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S., AND
4 SHALL BE INCLUDED IN INCOME TAX FORMS FOR THAT TAXABLE YEAR.
5 (III) IF ONE OR MORE BALLOT QUESTIONS THAT SEEK
6 AUTHORIZATION FOR THE STATE TO RETAIN AND SPEND ALL OR ANY
7 PORTION OF THE AMOUNT OF EXCESS STATE REVENUES FOR THE
8 IMMEDIATELY PRECEDING FISCAL YEAR ARE SUBMITTED TO THE VOTERS AT
9 A STATEWIDE ELECTION TO BE HELD IN NOVEMBER OF ANY CALENDAR
10 YEAR COMMENCING ON OR AFTER JANUARY 1, 2000, THE EXECUTIVE
11 DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL NOT PUBLISH RULES
12 CONTAINING ANY STATE INCOME TAX MODIFICATION ALLOWED PURSUANT
13 TO THIS PARAGRAPH (j) UNTIL SUCH RULES ARE ABLE TO REFLECT THE
14 IMPACT OF THE RESULTS OF SUCH ELECTION ON THE STATE INCOME TAX
15 MODIFICATION ALLOWED PURSUANT TO THIS PARAGRAPH (j).
16 (IV) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT
17 THIS PARAGRAPH (j) IS A REASONABLE METHOD OF REFUNDING STATE
18 REVENUES IN EXCESS OF THE LIMITATION ON STATE FISCAL YEAR SPENDING
19 IN ACCORDANCE WITH SECTION 20 (7) (d) OF ARTICLE X OF THE STATE
20 CONSTITUTION.
21 SECTION 3. Part 5 of article 22 of title 39, Colorado Revised
22 Statutes, is amended BY THE ADDITION OF A NEW SECTION to
23 read:
24 39-22-522. Tax credit for individuals contributing matching
25 funds for individual development accounts. (1) (a) WITH RESPECT TO
26 ANY TAXABLE YEAR COMMENCING ON OR AFTER JULY 1, 2000, IF THE
Page 14
1 AMOUNT OF STATE REVENUES FOR THE STATE FISCAL YEAR ENDING IN THAT
2 INCOME TAX YEAR EXCEEDS THE LIMITATION ON STATE FISCAL YEAR
3 SPENDING IMPOSED BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE
4 CONSTITUTION AND THE VOTERS STATEWIDE HAVE EITHER NOT
5 AUTHORIZED THE STATE TO RETAIN AND SPEND ALL OF THE EXCESS STATE
6 REVENUES OR HAVE AUTHORIZED THE STATE TO RETAIN AND SPEND ONLY
7 A PORTION OF THE EXCESS STATE REVENUES FOR THAT FISCAL YEAR, THERE
8 SHALL BE ALLOWED TO ANY TAXPAYER WHO MAKES A MONETARY
9 CONTRIBUTION TO A FIDUCIARY ORGANIZATION CERTIFIED PURSUANT TO
10 SECTION 11-39-106, C.R.S., WHICH CONTRIBUTION IS DEDICATED FOR USE
11 AS MATCHING FUNDS FOR INDIVIDUAL DEVELOPMENT ACCOUNTS
12 PURSUANT TO ARTICLE 39 OF TITLE 11, C.R.S., A CREDIT AGAINST THE TAX
13 IMPOSED BY THIS ARTICLE IN AN AMOUNT EQUAL TO TWENTY-FIVE
14 PERCENT OF THE QUALIFIED CONTRIBUTION. SUCH CREDIT SHALL BE IN
15 ADDITION TO ANY OTHER CREDIT FOR WHICH THE TAXPAYER MAY BE
16 ELIGIBLE PURSUANT TO THE PROVISIONS OF SECTION 39-22-507.5 OR
17 39-22-507.6.
18 (b) ANY STATE INCOME TAX MODIFICATION ALLOWED PURSUANT
19 TO THE PROVISIONS OF THIS SECTION SHALL BE PUBLISHED IN RULES
20 PROMULGATED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF
21 REVENUE IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S., AND
22 SHALL BE INCLUDED IN INCOME TAX FORMS FOR THAT TAXABLE YEAR.
23 (c) IF ONE OR MORE BALLOT QUESTIONS THAT SEEK
24 AUTHORIZATION FOR THE STATE TO RETAIN AND SPEND ALL OR ANY
25 PORTION OF THE AMOUNT OF EXCESS STATE REVENUES FOR THE
26 IMMEDIATELY PRECEDING FISCAL YEAR ARE SUBMITTED TO THE VOTERS AT
Page 15
1 A STATEWIDE ELECTION TO BE HELD IN NOVEMBER OF ANY CALENDAR
2 YEAR COMMENCING ON OR AFTER JANUARY 1, 2000, THE EXECUTIVE
3 DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL NOT PUBLISH RULES
4 CONTAINING ANY STATE INCOME TAX MODIFICATION ALLOWED PURSUANT
5 TO THIS SECTION UNTIL SUCH RULES ARE ABLE TO REFLECT THE IMPACT OF
6 THE RESULTS OF SUCH ELECTION ON THE STATE INCOME TAX MODIFICATION
7 ALLOWED PURSUANT TO THIS SECTION.
8 (2) THE CREDIT ALLOWED BY THIS SECTION FOR ANY INCOME TAX
9 YEAR SHALL NOT EXCEED THE TAXPAYER'S ACTUAL TAX LIABILITY FOR
10 SUCH TAXABLE YEAR.
11 (3) FOR PURPOSES OF THIS SECTION:
12 (a) "MONETARY CONTRIBUTION" MEANS A CONTRIBUTION OF CASH,
13 STOCKS, OR BONDS.
14 (b) "TAXPAYER" MEANS A RESIDENT INDIVIDUAL OR A DOMESTIC
15 OR FOREIGN CORPORATION SUBJECT TO THE PROVISIONS OF PART 3 OF THIS
16 ARTICLE.
17 (4) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT
18 THIS SECTION IS A REASONABLE METHOD OF REFUNDING STATE REVENUES
19 IN EXCESS OF THE LIMITATION ON STATE FISCAL YEAR SPENDING IN
20 ACCORDANCE WITH SECTION 20 (7) (d) OF ARTICLE X OF THE STATE
21 CONSTITUTION.
22 SECTION 4. Appropriation - adjustment in 1999 long bill.
23 (1) In addition to any other appropriation, there is hereby appropriated,
24 out of any moneys in the general fund not otherwise appropriated, to the
25 individual development account fund created in section 11-39-104 (4),
26 Colorado Revised Statutes, for the fiscal year beginning July 1, 1999, the
Page 16
1 sum of one million dollars ($1,000,000), and such sum, or so much
2 thereof as may be necessary, is further appropriated out of the individual
3 development account fund to the department of regulatory agencies for
4 allocation to the division of banking, for the implementation of this act.
5 (2) For the implementation of this act, appropriations made in the
6 annual general appropriations act for the fiscal year beginning July 1,
7 1999, shall be adjusted as follows:
8 (a) The general fund appropriation to the capital construction fund
9 outlined in section 3 (1) (f) is reduced by one million dollars
10 ($1,000,000).
11 (b) The capital construction fund exempt appropriation to the
12 department of transportation, construction projects, is reduced by one
13 million dollars ($1,000,000).
14 SECTION 5. Safety clause. The general assembly hereby finds,
15 determines, and declares that this act is necessary for the immediate
16 preservation of the public peace, health, and safety.