Bill Text: MI HB4342 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Individual income tax; refunds; $ave Michigan matching grant program; create. Creates new act.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-03-05 - Printed Bill Filed 03/01/2013 [HB4342 Detail]
Download: Michigan-2013-HB4342-Introduced.html
HOUSE BILL No. 4342
February 28, 2013, Introduced by Reps. Ananich and Talabi and referred to the Committee on Tax Policy.
A bill to establish a saving Michigan matching grant program;
to establish the $ave Michigan grant fund; to authorize certain
grants; to prescribe the powers and duties of certain state
agencies and officials; and to provide for an appropriation.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "$ave
Michigan matching grant act of 2013".
Sec. 3. As used in this act:
(a) "Department" means the department of treasury.
(b) "Financial institution" means a state or national bank, a
state or federally chartered savings and loan association, a state
or federally chartered savings bank, a state or federally chartered
credit union, or other regulated lending institution that maintains
a principal office or branch office in this state under the laws of
this state or the United States, including, but not limited to, an
entity of the federally chartered farm credit system.
(c) "Program" means the $ave Michigan matching grant program
established in section 5.
(d) "Qualified financial institution" means a financial
institution that has a physical location in this state or whose
principal office is located in this state, or both.
(e) "Qualified savings account" means any type of savings
account offered by a qualified financial institution and considered
appropriate by the department for purposes of this program.
(f) "Qualified taxpayer" means a taxpayer without a qualifying
child whose total household resources are less than $18,000.00, or
a taxpayer with at least 1 qualifying child whose total household
resources are less than $50,000.00, and who opens a qualified
savings account with a qualified financial institution and has at
least $200.00 of his or her federal income tax refund directly
deposited into that qualified savings account.
(g) "Qualifying child" means that term as defined in section
152 of the internal revenue code.
(h) "Taxpayer" means an individual who is 18 years of age or
older and files a federal or Michigan personal income tax return.
(i) "Total household resources" means that term as defined in
section 508 of the income tax act of 1967, 1967 PA 281, MCL
206.508.
Sec. 5. (1) The department shall establish and administer a
$ave Michigan matching grant program as provided in this act to
provide individuals and families with incentives and an opportunity
to build savings and accrue assets. Subject to the limitations
provided under this act, the program shall provide a 50% match of
every dollar of a qualified taxpayer's federal income tax refund
that he or she has directly deposited into a qualified savings
account and maintained within that account for a minimum of 1 year,
not to exceed $250.00.
(2) Matching grants under this act shall be made by electronic
funds transfer directly into the qualified taxpayer's qualified
savings account.
(3) The department may take any necessary action to ensure the
successful operation of the program, including, but not limited to,
entering into agreements with qualified financial institutions
related to the operation of the program and the establishment of
qualified savings accounts.
Sec. 7. (1) The $ave Michigan grant fund is created within the
state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments.
(3) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(4) The department shall be the administrator of the fund for
auditing purposes.
(5) The department shall only expend money from the fund, upon
appropriation, to distribute matching grants to qualified taxpayers
as provided in this act.
