,,ii #aafth ,,congress #ast ,session ,s4 #ajah ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #c1 #bjai,mr4 ,booker 7for himself1 ,mr4 ,young1 ,mr4 ,jones1 and ,mr4 ,cotton7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to establish the ,refund to ,rainy ,day ,savings ,program4 #a4 ,short title ,this ,act may be cited as the ,refund to ,rainy ,day ,savings ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,approximately #ae1jjj1jjj households file tax returns each year with the ,internal ,revenue ,service4 7#b7 ,for millions of ,americans with low or moderate levels of income1 their tax refund is the single largest source of income for the entire year4 7#c7 ,financial insecurity extends far up the income spectrum1 as too few ,americans have sufficient financial savings1 and #a in every #c ,americans has no financial savings at all4 7#d7 ,forty percent of ,american families do not have enough liquidity to pay for a #djj rainy day expense1 and #dj percent of ,americans are liquid asset poor1 with emergency savings that are too small to cover basic needs in the event of a surprise expense or reduction in income4 #c4 ,refund to ,rainy ,day ,savings ,program 7a7 ,in general ,not later than ,december #ca1 #bjai1 the ,secretary of the ,treasury or the ,secretary's delegate 7referred to in this section as the ,secretary7 shall establish and implement a program 7referred to in this section as the ,refund to ,rainy ,day ,savings ,program7 to allow participating taxpayers1 pursuant to the requirements established under this section1 to defer payment on #bj percent of the amount which would otherwise be refunded to such taxpayer as an overpayment 7as described in section #fdja of the ,internal ,revenue ,code of #aihf74 7b7 ,period of deferral ,except as provided under subsection 7c77#e71 a participating taxpayer may elect to defer payment of the amount described in subsection 7a7 and have such amount deposited in the ,rainy ,day ,fund 7as described in subsection 7c774 7c7 ,rainy ,day ,fund 7#a7 ,in general ,the ,secretary shall establish a fund1 in such manner as the ,secretary determines to be appropriate1 to be known as the ,rainy ,day ,fund1 consisting of any amounts described in subsection 7a7 on which payment has been deferred by participating taxpayers4 7#b7 ,investment ,any amounts deposited in the ,rainy ,day ,fund shall be invested by the ,secretary1 in coordination with the ,bureau of the ,fiscal ,service of the ,department of the ,treasury1 in ,united ,states ,treasury bills issued under chapter #ca of title #ca1 ,united ,states ,code1 with maturities suitable for the needs of the ,fund and selected so as to provide the highest return on investment for participating taxpayers4 7#c7 ,disbursements from fund 7,a7 ,in general ,on the date that is #ahj days after receipt of the individual income tax return of a participating taxpayer1 the amounts in the ,rainy ,day ,fund shall be made available to the ,secretary to distribute to such taxpayer in an amount equal to the amount deferred by such taxpayer under subsection 7a7 and any interest accrued on such amount 7as determined under paragraph 7#d774 7,b7 ,distributed to bank account ,the amounts described in subparagraph 7,a7 shall be distributed to the bank account identified by the participating taxpayer under subsection 7d77#c74 7#d7 ,interest accrued ,the amount of interest accrued on the amount deferred by a participating taxpayer under subsection 7a7 shall be determined by the ,secretary1 in coordination with the ,bureau of the ,fiscal ,service of the ,department of the ,treasury1 based upon the return on the investment of such amounts under paragraph 7#b74 7#e7 ,early withdrawal 7,a7 ,in general ,on any date during the period between the date which is #cj days after receipt by the ,secretary of the individual income tax return of the participating taxpayer and ,october #ae of the applicable year1 such taxpayer may elect to terminate the deferral of the amount described under subsection 7a7 and receive a distribution from the ,rainy ,day ,fund equal to such amount and any interest which has accrued on such amount up to that date4 7,b7 ,complete withdrawal ,a participating taxpayer making an election under subparagraph 7,a7 must terminate deferral of the full amount described under subsection 7a71 and such amount shall be distributed to the bank account identified by the participating taxpayer under subsection 7d77#c74 7d7 ,participating taxpayer ,for purposes of this section1 the term participating taxpayer means a taxpayer who-- 7#a7 has not requested or received an extension of the time for payment of taxes for such taxable year under section #fafa of the ,internal ,revenue ,code of #aihf1 7#b7 prior to the due date for filing the return of tax for such taxable year1 elects to participate in the ,refund to ,rainy ,day ,savings ,program1 and 7#c7 provides the ,secretary with a bank account number and any other financial information deemed necessary by the ,secretary for purposes of paragraphs 7#c77;,b7 and 7#e77;,b7 of subsection 7c74 7e7 ,forms ,the ,secretary shall ensure that the election to defer payment of the amount described in subsection 7a7 may be claimed on ,forms #ajdj1 #ajdj;,a1 and #ajdj;,,ez4 7f7 ,implementation 7#a7 ,educational materials and outreach ,the ,secretary shall-- 7,a7 design educational materials for taxpayers regarding financial savings and the ,refund to ,rainy ,day ,savings ,program1 7,b7 publicly disseminate and distribute such materials during the first calendar quarter of each calendar year and following disbursement of amounts described in subsection 7c77#c71 and 7,c7 engage in outreach regarding the ,refund to ,rainy ,day ,savings ,program to the ,volunteer ,income ,tax ,assistance program and paid tax preparers4 7#b7 ,information for participating taxpayers ,the ,secretary shall ensure that a participating taxpayer is able to electronically verify the status of the amount deferred by such taxpayer under subsection 7a71 including any interest accrued on such amount and the status of any distribution4 7#c7 ,federally funded benefits ,any amounts described in subsection 7a7 which are distributed to a participating taxpayer1 including any interest accrued on such amount1 shall be treated in the same manner as any refund made to such taxpayer under section #cb of the ,internal ,revenue ,code of #aihf for purposes of determining the eligibility of such taxpayer for benefits or assistance1 or the amount or extent of benefits or assistance1 under any ,federal program or under any ,state or local program financed in whole or in part with ,federal funds4 #d4 ,assets for ,independence ,innovation ,demonstration ,projects 7a7 ,reauthorization ,the ,assets for ,independence ,act 7#db ,u4,s4,c4 #fjd note7 is amended-- 7#a7 in section #daf1 by inserting 1 and1 subject to section #dag1 #be1jjj1jjj for each of fiscal years #bjbj1 #bjba1 #bjbb1 #bjbc1 and #bjbd1 to remain available until expended42 and 7#b7 by adding at the end the following new section3 #dag4 ,reservation of funds 7a7 ,in general ,subject to subsections 7b7 and 7c71 from the funds appropriated for each of fiscal years #bjbj1 #bjba1 #bjbb1 #bjbc1 and #bjbd under section #daf1 the ,secretary shall reserve-- 7#a7 #c1jjj1jjj for general research and evaluation2 and 7#b7 any amounts remaining after application of paragraph 7#a7 to fund ,,afi innovation demonstration projects under section #dah4 7b7 ,pilot program funding ,from the amounts reserved under subsection 7a7 for each of fiscal years #bjbj1 #bjba1 and #bjbb1 the ,secretary shall make available for operating the pilot program established under section #e of the ,refund to ,rainy ,day ,savings ,act-- 7#a7 #ej percent of the amount reserved for the relevant fiscal year under paragraph 7#a7 of subsection 7a7 7after any adjustment under subsection 7c772 and 7#b7 #be percent of the amount reserved for the relevant fiscal year under paragraph 7#b7 of subsection 7a7 7after any adjustment under subsection 7c774 7c7 ,proportional adjustment ,in any of fiscal years #bjbj1 #bjba1 #bjbb1 #bjbc1 and #bjbd1 if the amount appropriated for such fiscal year is greater or less than the amount authorized for such fiscal year under section #daf1 the amounts reserved under subsection 7a7 shall be increased or decreased for such fiscal year so that each such amount bears the same proportion to the amount appropriated as each of the amounts reserved under such subsection bears to the amount authorized4 4 7b7 ,establishment of ,innovation ,program ,the ,assets for ,independence ,act 7#db ,u4,s4,c4 #fjd note71 as amended by subsection 7a71 is further amended by adding at the end the following new section3 #dah4 ,,afi ,innovation ,projects 7a7 ,in general ,the ,secretary is authorized to make grants to qualified entities to conduct ,,afi innovation projects under this section4 7b7 ,definitions ,for purposes of this section3 7#a7 ,,afi innovation project ,the term ,,afi innovation project means a demonstration project carried out by a qualified entity under this section4 7#b7 ,innovation development account ,the term innovation development account means an account that is established in a federally insured financial institution or a ,state insured financial institution and meets such other requirements as are established by the ,secretary4 7c7 ,application 7#a7 ,criteria and preferences 7,a7 ,in general ,subject to subparagraph 7,b71 in considering an application to conduct an ,,afi innovation project1 the ,secretary shall apply subsections 7c7 and 7d7 of section #dje to the application in the same manner that such subsections apply to an application to conduct a demonstration project under section #dje4 7,b7 ,modification ,for purposes of this paragraph1 paragraph 7#a7 of section #dje7;c7 shall be applied without regard to the phrase through activities requiring one or more qualified expenses4 7#b7 ,approval of ,,afi innovation projects ,not later than #ab months after the date of the enactment of this section1 the ,secretary shall1 on a competitive basis1 approve such applications to conduct ,,afi innovation projects as the ,secretary considers to be appropriate1 taking into account the considerations required by paragraph 7#a74 ,the ,secretary shall ensure1 to the maximum extent practicable1 that the applications that are approved involve a range of communities 7both rural and urban7 and diverse populations4 7d7 ,project duration and grant amount 7#a7 ,duration ,the ,secretary shall award grants under this section for a period not to exceed #e project years4 7#b7 ,grant amount ,for each project year of an ,,afi innovation project approved under this section1 the ,secretary may make a grant to the qualified entity authorized to conduct the project4 ,in making such a grant1 the ,secretary shall make the grant on the first day of the project year in an amount not to exceed the lesser of-- 7,a7 the aggregate amount of funds committed as matching contributions from non-,federal public or private sector sources2 or 7,b7 #a1jjj1jjj4 7e7 ,eligibility and selection of individuals ,to participate in an ,,afi innovation project 7#a7 ,eligibility criteria ,subject to the approval of the ,secretary1 each qualified entity conducting an ,,afi innovation project shall establish eligibility requirements for participants in the project4 ,such requirements shall-- 7,a7 be more expansive than the requirements established under section #djh2 and 7,b7 ensure that eligibility is limited to low-income individuals4 7#b7 ,selection of individuals to participate ,each qualified entity conducting an ,,afi innovation project shall select1 from among the individuals that meet the eligibility requirements established by the entity under paragraph 7#a71 the individuals-- 7,a7 that the qualified entity determines to be best suited to participate2 and 7,b7 to whom the qualified entity will make disbursements or deposits in accordance with subsection 7f74 7f7 ,disbursements by qualified entities 7#a7 ,in general ,each qualified entity conducting an ,,afi innovation project shall1 in a manner consistent with the program requirements established by such entity1 disburse to a third-party or deposit into the innovation development account of each individual participating in the project from the funds described in subsection 7d77#b71 a matching contribution of not less than #j4ej and not more than #h for every #a deposited in the account by a project participant4 7#b7 ,limitation on disbursements for an individual ,not more than #e1jjj from a grant made under subsection 7d77#a7 shall be provided to any one individual over the course of the ,,afi innovation project4 7#c7 ,limitation on disbursements for a household ,not more than #aj1jjj from a grant made under subsection 7d77#a7 shall be provided to any one household over the course of the ,,afi innovation project4 7#d7 ,adjustment for inflation 7,a7 ,in general ,for each calendar year after #bjah1 the dollar amounts in paragraphs 7#b7 and 7#c7 shall be increased by an amount equal to the product of-- 7i7 such dollar amount1 and 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjag for calendar year #aiib in subparagraph 7,b7 thereof4 7,b7 ,rounding ,if any increase determined under subparagraph 7,a7 is not a multiple of #ej1 such increase shall be rounded to the next lowest multiple of #ej4 4 7c7 ,conforming amendments ,the ,assets for ,independence ,act 7#db ,u4,s4,c4 #fjd note71 as amended by subsections 7a7 and 7b71 is further amended-- 7#a7 in section #djd7b71 by inserting or section #dah before the period2 7#b7 in section #djf-- 7,a7 in subsection 7a71 by striking to conduct a demonstration project under this title and inserting under section #dje2 and 7,b7 in subsection 7b71 by striking conducted under this title and inserting approved under section #dje2 7#c7 in section #djg-- 7,a7 in subsection 7c7-- 7i7 in paragraph 7#a7-- 7,i7 in subparagraph 7,a71 by inserting or1 in the case of a participant in a project conducted under section #dah1 other permitted expenses after qualified expenses2 and 7,,ii7 in subparagraph 7,b71 by inserting or subsection 7f7 of section #dah after section #daj2 and 7ii7 in paragraph 7#c71 by inserting or section #dah7;d77#a72 and 7,b7 in subsection 7d77#b77;,a71 by inserting or section #dah7;d77#a7 after section #djf7;b72 7#d7 in section #djh1 by striking conducted under this title each place it appears and inserting approved under section #dje2 7#e7 in section #dji1 by striking conducted under this title and inserting approved under section #dje2 7#f7 in section #daj1 by striking under this title and inserting conducting a demonstration project approved under section #dje2 7#g7 in section #dac7;a71 by inserting or section #dah7;c7 after under section #dje2 and 7#h7 in section #dae1 by inserting or innovation development account after individual development account4 #e4 ,matched ,refund to ,rainy ,day ,savings ,pilot ,program 7a7 ,in general ,not later than #f months after the date of the enactment of this ,act and using the funds made available pursuant to section #dag7;b7 of the ,assets for ,independence ,act1 the ,secretary of ,health and ,human ,services1 acting through the ,director of ,community ,services 7in this section referred to as the ,secretary71 shall establish under this section a matched savings account pilot program to encourage saving by eligible individuals4 ,under the pilot program1 a qualified entity may apply to the ,secretary for a grant to conduct a pilot project described in subsection 7b7 7in this section referred to as a pilot project74 ,the pilot program shall operate for a period of #c years4 7b7 ,pilot project described 7#a7 ,in general ,a pilot project is a project in which a qualified entity establishes a matched savings program that meets the requirements of paragraph 7#b7 for eligible individuals who are selected by the entity to participate in the program4 7#b7 ,requirements 7,a7 ,deposits into direct deposit accounts 7i7 ,in general ,a matched savings program established as part of a pilot project shall match amounts saved by each eligible individual participating in the pilot project1 with such match amount to be equal to or less than the amount of any payment deferred by such individual under the ,refund to ,rainy ,day ,savings ,program established in section #c7;a74 7ii7 ,timing ,any amount described in clause 7i7 shall not be distributed to an eligible individual until the amounts described in paragraphs 7#c77;,b7 or 7#e77;,b7 of section #c7;c7 have been distributed to the bank account identified by such individual4 7,b7 ,evaluation of program by independent research organization 7i7 ,in general ,from amounts made available under section #dag7;b77#b7 of the ,assets for ,independence ,act1 as added by section #d7;a77#b7 of this ,act1 the ,secretary shall enter into a contract with an independent research organization for purposes of evaluating pilot projects conducted under this section4 7ii7 ,coordination ,each qualified entity that establishes a matched savings program as part of a pilot project shall collaborate with the independent research organization described in clause 7i7 to evaluate the outcomes and impact of the project4 7iii7 ,impact on different groups ,the evaluation described in clause 7i7 shall include an examination of the demographic characteristics of the individuals participating in the pilot project1 such as gender1 race1 age1 geographic location1 and family makeup1 and how the impacts of the project vary among different demographic groups4 7iv7 ,program features ,the program features to be evaluated through the pilot projects conducted under this section may include-- 7,i7 different levels of matching contributions by qualified entities2 7,,ii7 lock-out periods during which an eligible individual may not make withdrawals from their account2 and 7,,iii7 educational materials intended to promote savings4 7#c7 ,duration ,a pilot project shall be for a duration of not more than #c years4 7#d7 ,federally funded benefits ,any amounts described in paragraph 7#b77;,a7 which are distributed to an eligible individual shall be treated in the same manner as any refund made to such taxpayer under section #cb of the ,internal ,revenue ,code of #aihf for purposes of determining the eligibility of such taxpayer for benefits or assistance1 or the amount or extent of benefits or assistance1 under any ,federal program or under any ,state or local program financed in whole or in part with ,federal funds4 7c7 ,strategic communications plan ,the ,secretary shall devise a strategic communications plan to ensure a strong pilot program4 7d7 ,annual report to ,congress ,the ,secretary shall submit an annual report to ,congress on the progress and outcomes of the pilot program established under this section4 7e7 ,definitions ,in this section3 7#a7 ,eligible individual ,the term eligible individual means an individual who-- 7,a7 has deferred payment of the amount described in section #c7;a7 under the ,refund to ,rainy ,day ,savings ,program established in such section1 and 7,b7 meets the eligibility requirements under section #djh of the ,assets for ,independence ,act1 except that subsection 7a77#b7 of such section shall not apply4 7#b7 ,qualified entity 7,a7 ,in general ,the term qualified entity means-- 7i7 one or more not-for-profit organizations described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf and exempt from taxation under section #eja7;a7 of such ,code2 7ii7 a ,state or local government agency1 or a tribal government1 submitting an application to conduct a pilot project jointly with an organization described in clause 7i72 7iii7 a site that offers free tax help to individuals who qualify through the ,internal ,revenue ,service's ,voluntary ,income ,tax ,assistance or ,tax ,counseling for the ,elderly programs2 or 7iv7 an entity that-- 7,i7 is-- 7aa7 a credit union designated as a low-income credit union by the ,national ,credit ,union ,administration2 or 7bb7 an organization designated as a community development financial institution by the ,secretary of the ,treasury 7or the ,community ,development ,financial ,institutions ,fund72 and 7,,ii7 can demonstrate a collaborative relationship with a local community-based organization whose activities are designed to address poverty in the community and the needs of community members for economic independence and stability4 7v7 ,rule of construction ,nothing in this paragraph shall be construed as preventing an organization described in subparagraph 7,a77i7 from collaborating with a financial institution or for-profit community development corporation to carry out the purposes of this section4