HB2405 - 451R - House Bill Summary

House of Representatives

HB 2405

welfare; wheels to work

Sponsors: Representative Anderson

dpa	Committee on Human Services
DPA	Committee on Appropriations
dpa	Caucus and COW
x	As Passed the House

HB 2405 makes numerous changes to the current Wheels to Work Program.

History

The Wheels to Work Program was established by Laws 1998, Chapter 208, Section 7. The Department of Economic Security was required to contract with a private entity to provide Wheels to Work Program services. A contract was awarded to Goodwill Industries, which has implemented six Program locations statewide. Qualified TANF participants may be eligible to receive a vehicle donated to the Program. Eligible participants must:

· Be receiving TANF cash assistance.

· Be employed.

· Have a valid Arizona driver license.

· Be insurable according to Program standards.

· Be willing and able to comply with the terms of the vehicle lease.

Participants must meet various criteria, some of which include:

· Passing a background check.

· Making monthly $20.00 lease payment.

· Fulfilling the first six months of the Wheels to Work lease and renewing the lease for an additional six months.

· Retaining employment for a full year.

Tax benefits for those who donate a vehicle include a state income tax credit of up to $1500 that must be claimed and used in the same year, and which cannot be refunded or carried forward.

Provisions

· Decreases the duration of the Program from twelve months to six months.

· Removes the term donated in reference to vehicles eligible for the Program.

· Expands the Program to be offered on a statewide basis.

· Allows the private entity to purchase vehicles for the Program, but the private entity is responsible for any damage, repair, emissions compliance, vehicle insurance and safety of the vehicle.

· Declares that the private entity is not eligible for either current tax credit offered in the Program if the private entity purchases a vehicle.

· Clarifies that after the six month period is over, the qualified recipient shall receive the vehicle if the person has complied with the terms of the lease.

· Clarifies that only residents of Arizona are eligible for the program.

· Contains an effective date of July 1, 2001.

· Makes technical and conforming changes.

HB 2405 was amended in the Human Services Committee as follows:

· Expands the Program to be offered on a statewide basis.

· Allows the private entity to purchase vehicles for the Program, but the private entity is responsible for any damage, repair, emissions compliance, vehicle insurance and safety of the vehicle.

· Declares that the private entity is not eligible for the tax credit offered in the Program if the private entity purchases a vehicle.

· Clarifies that after the six month period is over, the qualified recipient shall receive the vehicle if the person has complied with the terms of the lease.

· Clarifies that only residents of Arizona are eligible for the program.

HB 2405 was amended in the Appropriations Committee as follows:

· Expands the Program to be offered on a statewide basis. (Same as Human Service Committee amendment.)

· Allows the private entity to purchase vehicles for the Program, but the private entity is responsible for any damage, repair, emissions compliance, vehicle insurance and safety of the vehicle. (Same as Human Services Committee amendment.)

· Declares that the private entity is not eligible for either tax credit offered in the Program if the private entity purchases a vehicle. (Expands upon the Human Services Committee amendment by covering both statutory tax credits for the Program.)

· Clarifies that after the six month period is over, the qualified recipient shall receive the vehicle if the person has complied with the terms of the lease. (Same as Human Services Committee amendment.)

· Clarifies that only residents of Arizona are eligible for the program. (Same as Human Services Committee amendment.)

· Contains an effective date of July 1, 2001.

HB 2405 was amended in the Committee of the Whole as follows:

· Withdrew the Human Services Committee amendment.

· Adopted the Appropriations Committee amendment.

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· 45th Legislature