Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE; FINDINGS.

(a) Short Title.--This Act may be cited as the ''Freedom To Save
Act of 2007''.
(b) Findings.--Congress finds the following:
(1) Under current law applicable to the food stamp program,
a household may not have assets that exceed $2,000 (or $3,000
in the case of a household that includes an elderly or disabled
member). The program is federally funded, but States can modify
or eliminate assets through categorical eligibility (automatic
benefits through qualifications for other assistance programs).
Benefit levels can be reduced by unearned income, which arise
from interest on past savings accounts, retirement accounts, or
educational accounts. States count the amount that exceeds the
fair market value of $4,650 of a household vehicle, unless they
follow TANF rules. States have the discretion to exclude some
assets that are excluded in TANF or Medicaid.
(2) For low-income families who may need to rely on
government assistance in the face of an emergency, saving is
actively discouraged by asset limit policies, especially in
formal financial institutions. Recent qualitative research
indicates that asset limits serve to discourage low-income
families from saving, especially in formal financial
institutions. These men and women realize that saving is
penalized in the current welfare system and if they choose to
save, their benefits will be reduced or eliminated.
(3) Without a safety net of personal savings, it is more
difficult for low-income families to graduate from government
assistance and achieve true self-sufficiency--the goal of the
1996 welfare reform. Forcing individuals to ''spend down''
personal savings in order to qualify for assistance leaves
families vulnerable to temporary income shocks due to emergency
or temporary unemployment. Precautionary savings will reduce
overall dependence on public assistance.
(4)(A) SSI is federally administered with asset limits of
$2,000 for individuals and $3,000 for couples. Assets may be
reduced by unearned income from interest on past savings
accounts or other assets. One household vehicle is excluded
from the asset tests, but the value of any other vehicles is
counted as assets.
(B) Individuals with disabilities who receive SSI benefits
and are able to work for short periods of time are penalized
for saving any money they earn with a complete loss of
benefits.
(5) TANF is a cash assistance block grant program whose
policies are set by individual States. The 1996 welfare reform
law gave states the discretion to set asset limits for TANF, or
waive the limit entirely. Today, States' asset limits vary from
$1,000 to no limit, with most set from $1,000 to $3,000. A
number of States have reformed their asset limits:
(A) Virginia and Ohio have already eliminated the
asset limit for TANF. To date, Virginia reports
administrative savings due to streamlining the
eligibility process and has experienced no increase in
fraud.
(B) 16 States have liberalized the financial asset
limit for TANF to allow assets of more than $2,000. 29
States have liberalized their vehicle allowances by
either eliminating the value of at least one vehicle,
or by raising the allowable value of a household
vehicle.
(6)(A) Within broad Federal guidelines for the SCHIP
program, each State determines the design of its program,
eligibility groups, benefit packages, payment levels for
coverage, and administrative and operating procedures. States
have substantial flexibility in setting asset criteria in
public health insurance plans for children under Medicaid and
the State Children's Health Insurance Program (SCHIP).
(B) 49 States waive asset tests altogether; 2 states
(Oregon and Texas) have asset limits in their separate SCHIP
programs.
(C) Parents applying for public health insurance face more
restrictive eligibility criteria than children. 19 States have
waived the asset test for parents; 6 states continue to limit
assets to $1,000 per household; and 26 States have asset limits
that range from $2,000 to $30,000.
(7) The personal savings rate was negative in 2005 and 2006
according to the Department of Commerce, meaning that spending
outstripped disposable income for the first time since the
Great Depression.
(8) Asset limits are inefficient and, in some programs,
entirely unnecessary. According to the Federal Reserve, most
poor and near-poor families hold little to no wealth: in 2004,
17 percent of all households had zero or negative net worth,
while 29.6 percent had a net worth of less than $10,000. Few
families who meet the low income eligibility thresholds that
govern eligibility for major income support programs have any
significant asset holdings. For people with disabilities, 38
percent live on less than $15,000 annually, and that 58 percent
are asset poor.
(9) A consistent segment of the American population remains
outside the financial mainstream where they rely on costly
check cashing and lending institutions: 11 percent of
households do not have a checking account and 9 percent do not
have a transaction account of any kind. 54 percent of people
with disabilities have no savings accounts, and 69 percent have
no checking accounts. Low-income families who rely on public
assistance are less likely to use a formal financial
institution, in part out of fear that any account balance will
be penalized by a reduction in benefits.
(10) According to the Center for Social Development, the
presence of savings and even small asset holdings by a
household is associated with a range of positive outcomes,
including increased economic stability, educational attainment
and performance, and health and psychological well-being.
(11) Increasing the number of households that save and the
amounts that they save will allow more Americans to achieve
greater control, security, independence, and choice in their
lives.

SEC. 2. MODIFICATION OF ASSET TEST UNDER FOOD STAMP PROGRAM.

(a) Financial Resources.--Section 5(g) of the Food Stamp Act of
1977 (7 U.S.C. 2014(g)) is amended--
(1) by striking ''(g)(1) The Secretary'' and inserting the
following:
''(g) Allowable Financial Resources.--
''(1) Total amount.--
''(A) In general.--The Secretary'';
(2) in subparagraph (A) (as designated by paragraph (1)--
(A) by striking ''$2,000'' and inserting ''$6,000
(as adjusted in accordance with subparagraph (B))'';
and
(B) by striking ''$3,000'' and inserting ''$8,000
(as adjusted in accordance with subparagraph (B))'' ;
and
(3) by adding at the end the following:
''(B) Adjustment for inflation.--
''(i) In general.--Beginning on October 1,
2007, and each October 1 thereafter, the
amounts in subparagraph (A) shall be adjusted
to the nearest $100 increment to reflect
changes for the 12-month period ending the
preceding June in the Consumer Price Index for
All Urban Consumers published by the Bureau of
Labor Statistics of the Department of Labor.
''(ii) Requirement.--Each adjustment under
clause (I) shall be based on the unrounded
amount for the prior 12-month period.''.
(b) Definition Required.--Section 5(g)(6)(B)(iii) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(g)(6)(B)(iii)) is amended by inserting ''(as
defined by the Secretary)'' after ''available''.
(c) Exclusion of Retirement Accounts From Countable Financial
Resources.--
(1) In general.--Section 5(g)(2)(B)(v) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(g)(2)(B)(v)) is amended by striking
''or retirement account (including an individual account)'' and
inserting ''account''.
(2) Mandatory and discretionary exclusions.--Section 5(g)
of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by
adding at the end the following:
''(7) Exclusion of retirement accounts from countable
financial resources.--
''(A) Mandatory exclusions.--The Secretary shall
exclude from financial resources under this subsection
the value of any funds in a plan, contract, or account,
described in sections 401(a), 403(a), 403(b), 408,
408A, 457(b), and 501(c)(18) of the Internal Revenue
Code of 1986 and the value of funds in a Federal Thrift
Savings Plan account as provided in section 8439 of
title 5, United States Code.
''(B) Discretionary exclusions.--The Secretary may
exclude from financial resources under this subsection
the value of any other retirement plans, contracts, or
accounts (as determined by the Secretary through
regulation).''.
(d) Exclusion of Education Accounts From Countable Financial
Resources.--Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C.
2014(g)) (as amended by section 3) is amended by adding at the end the
following:
''(8) Exclusion of education accounts from countable
financial resources.--
''(A) Mandatory exclusions.--The Secretary shall
exclude from financial resources under this subsection
the value of any funds in a qualified tuition program
described in section 529 of the Internal Revenue Code
of 1986 or in a Coverdell education savings account
under section 530 of that Code.
''(B) Discretionary exclusions.--The Secretary may
exclude from financial resources under this subsection
the value of any other education programs, contracts,
or accounts (as determined by the Secretary through
regulation).''.
(e) Exclusion of Vehicles From Countable Financial Resources.--
Section 5(g)(2)(B)(iv) of the Food Stamp Act of 1977 (7 U.S.C.
2014(g)(2)(B)(iv)) is amended to read as follows:
''(iv) subject to subparagraphs (B) and
(C), any licensed vehicle that is not used for
household transportation or to obtain or
continue employment.''.

SEC. 3. PROHIBITION ON USE OF ASSET TEST UNDER THE TEMPORARY ASSISTANCE
FOR NEEDY FAMILIES (TANF) PROGRAM.

(a) Prohibition.--Section 408(a) of the Social Security Act (42
U.S.C. 608(a)) is amended by adding at the end the following:
''(12) Prohibition on imposition of asset test.--A State to
which a grant is made under section 403 shall not consider the
level or types of assets or resources of an individual or
family in determining the eligibility of the individual or
family for, or the amount or types of assistance to provide to
the individual or family under the State program funded under
this part.''.
(b) Penalty.--Section 409(a) of such Act (42 U.S.C. 609(a)) is
amended by adding at the end the following:
''(16) Penalty for imposition of asset test.--
''(A) In general.--If the Secretary determines that
a State to which a grant is made under section 403 in a
fiscal year has violated section 408(a)(12) during the
fiscal year, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount equal
to not less than 1 percent and not more than 5 percent
of the State family assistance grant.
''(B) Penalty based on severity of failure.--The
Secretary shall impose reductions under subparagraph
(A) with respect to a fiscal year based on the degree
of noncompliance.''.
(c) Effective Date.--The amendments made by this section shall take
effect on July 1, 2008.

SEC. 4. ELIMINATION OF ASSET TEST FOR DISABLED PERSONS UNDER THE
SUPPLEMENTAL SECURITY INCOME (SSI) PROGRAM.

(a) In General.--Section 1611(a) of the Social Security Act (42
U.S.C. 1382(a)) is amended in each of paragraphs (1)(B) and (2)(B) by
inserting ''in the case of an individual who is aged or blind,'' before
''whose''.
(b) Conforming Amendments.--
(1) Section 1602 of such Act (42 U.S.C. 1381a) is amended
by inserting ''(in the case of an individual who is aged or
blind)'' before ''resources''.
(2) Section 1621(a) of such Act (42 U.S.C. 1382j(a)) is
amended by striking ''an individual'' and inserting ''a blind
or disabled individual''.
(3) Section 1631(b)(3) of such Act (42 U.S.C. 1383(b)(3))
is amended by inserting ''(as in effect before the effective
date of section 4 of the Freedom to Save Act of 2007)'' after
''section 1611(a)''.
(c) Effective Date.--The amendments made by this section shall
apply to benefits for months beginning on or after July 1, 2008.

SEC. 5. ELIMINATION OF ASSET TEST UNDER STATE CHILDREN'S HEALTH
INSURANCE PROGRAM (SCHIP).

Section 2102(b) of the Social Security Act (42 U.S.C. 1397bb(b)) is
amended--
(1) in paragraph (1)(A), by striking ''income and resources
(including any standards relating to spenddowns and disposition
of resources)'' and inserting ''and income''; and
(2) in paragraph (1)(B)--
(A) by striking ''and'' at the end of clause (i);
(B) by striking the period at the end of clause
(ii) and inserting '', and''; and
(C) by adding at the end the following new clause:
''(iii) may not deny eligibility, or vary
the amount of benefits under this title, based
on assets or resources.''.

SEC. 6. EFFECTIVE DATE.

Except as otherwise provided in this Act, the amendments made by
this Act shall apply to assistance furnished on or after July 1, 2008.
Student:
Freedom to Save Act of 2007 - Amends the Food Stamp Act of 1977 to modify the asset test for food stamp program eligibility by increasing the amounts of allowable financial resources, with annual inflation adjustments, and excluding from countable financial resources any retirement accounts, education accounts, and licensed vehicles.

Prohibits the use of any asset test under the temporary assistance for needy families (TANF) program under part A of title IV of the Social Security Act. Prescribes an administrative penalty for any state imposing such a test.

Eliminates any asset test for disabled persons under title XVI (Supplemental Security Income (SSI)) of the Social Security Act (SSA) and for any eligible individual under SSA title XXI (State Children's Health Insurance Program (SCHIP)).