CSA OPPORTUNITY Act

Summary: Children's Savings Accounts Offer Parents Plenty of Reasons to Understand and Invest in Tuition Yearly Act or the CSA OPPORTUNITY Act - Amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act (SSA) to direct a state receiving a TANF grant to disregard the value of any interest in, or distribution from, a qualified tuition program, as well as the value of a child's savings account, in determining individual or family TANF eligibility or the amount or type of assistance. Amends SSA title XVI (Supplemental Security Income) (SSI) to exclude from an individual's resources for SSI eligibility or benefit purposes the value of any interest in, or distribution from, a qualified tuition program as well as the value of a child's savings account. Amends the Food and Nutrition Act of 2008 to direct the Secretary of Agriculture to exclude any child's savings accounts from resources for eligibility and benefit purposes under the supplemental nutrition assistance program (SNAP, formerly the food stamp program). Amends the Low-Income Home Energy Assistance Act of 1981 to exclude from household income any child's savings accounts from resources for eligibility and benefit purposes under the low-income home energy assistance program. Prescribes penalties for noncompliance.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Children's Savings Accounts Offer 
Parents Plenty Of Reasons To Understand aNd Invest in Tuition Yearly 
Act'' or the ``CSA OPPORTUNITY Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Child's savings account.--The term ``child's savings 
        account'' means a trust created or organized exclusively for 
        the purpose of paying the qualified expenses of only an 
        individual who, when the trust is created or organized, has not 
        attained 18 years of age, if the written governing instrument 
        creating the trust contains the following requirements:
                    (A) The trustee is a federally insured financial 
                institution, or a State insured financial institution 
                if a federally insured financial institution is not 
                available.
                    (B) The assets of the trust will be invested in 
                accordance with the direction of the individual or of a 
                parent or guardian of the individual, after 
                consultation with the entity providing the initial 
                contribution to the trust or, if applicable, a matching 
                or other contribution for the individual.
                    (C) The assets of the trust will not be commingled 
                with other property except in a common trust fund or 
                common investment fund.
                    (D) Any amount in the trust that is attributable to 
                an account seed or matched deposit may be paid or 
                distributed from the trust only for the purpose of 
                paying qualified expenses of the individual.
            (2) Qualified expenses.--The term ``qualified expenses'' 
        means, with respect to an individual, expenses that--
                    (A) are incurred after the individual receives a 
                secondary school diploma or its recognized equivalent; 
                and
                    (B) are--
                            (i) postsecondary educational expenses (as 
                        defined in section 529 of the Internal Revenue 
                        Code of 1986) of the individual;
                            (ii) for the purchase of a first home by 
                        the individual; or
                            (iii) for the capitalization of a business 
                        owned by the individual.

             TITLE I--AMENDMENTS TO THE SOCIAL SECURITY ACT

SEC. 101. INTEREST IN, AND DISTRIBUTION FROM, A QUALIFIED TUITION 
              PROGRAM REQUIRED TO BE DISREGARDED UNDER THE TANF 
              PROGRAM.

    (a) In General.--Section 408(a) of the Social Security Act (42 
U.S.C. 608(a)) is amended by adding at the end the following:
            ``(13) Requirement to disregard interest in and 
        distribution from, a qualified tuition program.--A State to 
        which a grant is made under section 403 shall disregard the 
        value of any interest in, or distribution from, a qualified 
        tuition program (as defined in section 529(b) of the Internal 
        Revenue Code of 1986), in determining the eligibility of, and 
        the amount or type of assistance to be provided to an 
        individual or family under the State program funded under this 
        part.''.
    (b) Penalty for Noncompliance.--
            (1) In general.--Section 409(a) of such Act (42 U.S.C. 
        609(a)) is amended by adding at the end the following:
            ``(17) Penalty for failure to disregard interest in, or 
        distribution from, a qualified tuition program.--
                    ``(A) In general.--If the Secretary finds that a 
                State to which a grant is made under section 403 for a 
                fiscal year has failed to comply with section 
                408(a)(13) during the fiscal year, the Secretary shall 
                reduce the grant otherwise payable to the State under 
                section 403(a)(1) for the succeeding fiscal year by the 
                percentage specified in subparagraph (B) of this 
                paragraph.
                    ``(B) Amount of reduction.--The reduction required 
                under subparagraph (A) shall be--
                            ``(i) not less than 1 nor more than 2 
                        percent;
                            ``(ii) not less than 2 nor more than 3 
                        percent, if the finding is the 2nd consecutive 
                        finding made pursuant to subparagraph (A); or
                            ``(iii) not less than 3 nor more than 5 
                        percent, if the finding is the 3rd or a 
                        subsequent consecutive such finding.''.
            (2) No exception for reasonable cause.--Section 409(b)(2) 
        of such Act (42 U.S.C. 609(b)(2)) is amended by striking ``or 
        (13)'' and inserting ``(13), or (17)''.

SEC. 102. EXCLUSION OF INTEREST IN, AND DISTRIBUTION FROM, A QUALIFIED 
              TUITION PROGRAM FROM RESOURCES UNDER THE SSI PROGRAM.

    Section 1613(a) of the Social Security Act (42 U.S.C. 1382b(a)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (16);
            (2) by striking the period at the end of paragraph (17) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (17) the following:
            ``(18) the value of any interest in, or distribution from, 
        a qualified tuition program (as defined in section 529(b) of 
        the Internal Revenue Code of 1986).''.

SEC. 103. CHILD'S SAVINGS ACCOUNT REQUIRED TO BE DISREGARDED UNDER THE 
              TANF PROGRAM.

    (a) In General.--Section 408(a)(13) of the Social Security Act (42 
U.S.C. 608(a)), as amended by section 101(a) of this Act, is amended--
            (1) by striking ``(13)'' and all that follows through ``A 
        State'' and inserting the following:
            ``(13) Requirement to disregard interest in, and 
        distribution from, a qualified tuition program, and value of a 
        child's savings account.--
                    ``(A) In general.--A State''; and
            (2) by inserting ``and the value of any child's savings 
        account (as defined in section 2 of the CSA OPPORTUNITY Act)'' 
        after ``1986)''.
    (b) Penalty for Noncompliance.--Section 409(a)(17) of such Act (42 
U.S.C. 608(a)(17)), as added by section 101(b)(1) of this Act, is 
amended in the paragraph heading, by inserting ``or value of a child's 
savings account'' after ``program''.

SEC. 104. EXCLUSION OF CHILD'S SAVINGS ACCOUNT FROM RESOURCES UNDER THE 
              SSI PROGRAM.

    (a) In General.--Section 1613(a) of the Social Security Act (42 
U.S.C. 1382b(a)), as amended by section 102 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (17);
            (2) by striking the period at the end of paragraph (18) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (18) the following:
            ``(19) any child's savings account (as defined in section 2 
        of the CSA OPPORTUNITY Act), including accrued interest or 
        other earnings thereon.''.
    (b) Conforming Amendment.--Section 1613(e)(5) of such Act (42 
U.S.C. 1382b) is amended by inserting ``of this Act or section 2 of the 
CSA OPPORTUNITY Act'' before the period.
    (c) Technical Amendments.--Effective immediately after the repeal 
of the Improving Access to Clinical Trials Act of 2009 (Public Law 111-
255), section 1613(a) of the Social Security Act (42 U.S.C. 1382b(a)), 
as amended by the preceding provisions of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (15);
            (2) by striking ``and'' at the end of paragraph (16); and
            (3) by striking paragraph (17) and redesignating paragraphs 
        (18) and (19) as paragraphs (17) and (18), respectively.

       TITLE II--AMENDMENT TO THE FOOD AND NUTRITION ACT OF 2008

SEC. 201. EXCLUSION OF CHILD'S SAVINGS ACCOUNTS FROM RESOURCES UNDER 
              THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.

    Section 5(g) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2014(g)) is amended by adding at the end the following:
            ``(9) Exclusion of child's savings accounts from allowable 
        financial resources.--
                    ``(A) Exclusion.--The Secretary shall exclude from 
                financial resources under this subsection the value of 
                funds in any child's savings account.
                    ``(B) Child's savings account.--For purposes of 
                subparagraph (A), the term `child's savings account' 
                has the meaning given such term in section 2 of the CSA 
                OPPORTUNITY Act.''.

 TITLE III--AMENDMENT TO LOW-INCOME HOME ENERGY ASSISTANCE ACT OF 1981

SEC. 201. EXCLUSION OF CHILD'S SAVINGS ACCOUNTS FROM RESOURCES UNDER 
              THE LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.

    Section 2605(f) of the Low-Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8624(f)) is amended by adding at the end the following:
    ``(3) Exclusion of Child's Savings Accounts From Allowable 
Financial Resources.--
            ``(A) Exclusion.--The income of a household shall be 
        determined under this section without regard to the value of 
        funds in any child's savings account.
            ``(B) Child's savings account.--For purposes of 
        subparagraph (A), the term `child's savings account' has the 
        meaning given such term in section 2 of the CSA OPPORTUNITY 
        Act.''.