CSA OPPORTUNITY Act

To amend the Social Security Act, the Food and Nutrition Act of 2008, and the Low-Income Home Energy Assistance Act of 1981 to require that the value of child’s savings accounts be disregarded for the purpose of determining eligibility to receive benefits under such Acts; and for other purposes. 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 CSA OPPORTUNITY Act 2. Definitions In this Act: (1) Child’s savings account The term child’s savings account (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 (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 (ii) for the purchase of a first home by the individual; or (iii) for the capitalization of a business owned by the individual. I Amendments to the Social Security Act 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) (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) (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) or (13) (13), or (17) 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) (1) by striking and (2) by striking the period at the end of paragraph (17) and inserting ; 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) . 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) (1) by striking (13) A State (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) 1986) (b) Penalty for noncompliance Section 409(a)(17) of such Act ( 42 U.S.C. 608(a)(17) or value of a child’s savings account program 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) (1) by striking and (2) by striking the period at the end of paragraph (18) and inserting ; 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 of this Act or section 2 of the CSA OPPORTUNITY Act (c) Technical amendments Effective immediately after the repeal of the Improving Access to Clinical Trials Act of 2009 ( Public Law 111–255 (1) by striking and (2) by striking and (3) by striking paragraph (17) and redesignating paragraphs (18) and (19) as paragraphs (17) and (18), respectively. II Amendment to the Food and Nutrition Act of 2008 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) (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 CSA OPPORTUNITY Act . III Amendment to Low-Income Home Energy Assistance Act of 1981 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) (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 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.