BILL REQ. #:  H-4475.1 

Read first time 01/23/2006.   Referred to Committee on Economic Development, Agriculture & Trade.

     AN ACT Relating to creating a pilot program to assist in asset building for low-income persons; adding new sections to chapter 43.63A RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature recognizes that one in four families is asset poor meaning they lack the financial resources to sustain their family for a period of three months at the federal poverty level. The legislature finds that there is a need to empower low-income wage earners by providing tools that allow them to better control, manage, and increase their financial resources. Momentum is growing within the state to enhance a community-wide response to poverty that combines efforts of community-based, faith-based, governmental, job training, health care, and social service agencies. The legislature is committed to supporting the collaboration efforts of local communities to help lower-income families achieve greater prosperity.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.63A RCW to read as follows:
     (1) By December 1, 2006, the department of community, trade, and economic development must establish a pilot program to assist low-income families accumulate assets. The pilot program will use the existing community action agencies established under RCW 43.63A.115. The community action agencies must facilitate bringing together community partners to determine the asset building programs to initiate within the community.
     (2) The department must select the pilot sites through a request for proposals process which must begin by July 31, 2006. The pilot program must consist of four sites with at least one of the pilot sites located in eastern Washington.
     (3) Any county, or group of counties, in which a community action agency as established in RCW 43.63A.115 is located may submit a proposal to be selected as a pilot site. To be considered for a pilot site, the proposal must demonstrate how the site will meet the following criteria. The proposal must:
     (a) Identify the local agency that will be the lead agency for the pilot program;
     (b) Describe how the lead agency will work with community partners to implement the pilot program activities described in this section. The proposal must specifically identify the community partners with whom the community action agency will be collaborating and the role of the partners;
     (c) Identify the areas of potential need based upon input from the community partners. Areas of potential need may include financial literacy, assistance with federal income tax preparation and the use of tax credits, the use of individual development accounts, and other asset-building strategies; and
     (d) Identify the resources within the community that might support training for the implementation of the selected best practices chosen to address the needs identified by the community.
(4) The department must report to the legislature by December 1, 2007, on the progress of the implementation of the pilot program including the request for proposals process, the response from the counties to the request for proposal, the status of the program, and any implementation issues that arose in initiating the pilot program.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.63A RCW to read as follows:
     To the extent funding is appropriated, the department of community, trade, and economic development must establish a program to create an outreach campaign to increase the number of eligible families who claim the federal earned income tax credit. The department may work collaboratively with other state agencies, private and nonprofit agencies, local communities, and others with expertise that might assist the department in implementing the program.