Report Title:
Individual Development Accounts
Description:
Expands the provisions of individual development accounts.
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2046 |
TWENTY-FOURTH LEGISLATURE, 2008 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to individual DEVELOPMENT accounts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 257-3, Hawaii Revised Statutes, is amended to read as follows:
"[[]§257-3[]] Fiduciary
organizations. (a) Fiduciary organizations shall serve as an intermediary
between individual development account holders and financial institutions
holding accounts. The fiduciary organization's responsibilities may include:
(1) Marketing participation;
(2) Soliciting matching contributions;
(3) Counseling program participants; and
(4) Conducting verification and compliance activities.
(b) Locally-based organizations shall enter
into a competitive process for the right to become fiduciary organizations for
a portion of the state matching dollars [that would be authorized initially].
Fiduciary organization proposals shall be evaluated and participation rights
awarded on the basis of [such items as]:
(1) Their ability to market the program to potential individual development account holders and potential matching fund contributors;
(2) Their ability to provide safe and secure investments for individual development accounts;
(3) Their overall administrative capacity, including:
(A) Certifications or verifications required to assure compliance with eligibility requirements;
(B) Authorized uses of the accounts matching contributions by individuals or businesses; and
(C) Penalties for unauthorized distributions;
(4) Their capacity to provide financial counseling and other related services to potential participants; and
(5) Their links to other activities designed to increase the independence of individuals and families through high return investments, including homeownership, education and training, and small business development.
The department of human services, or an agency contracted by the department of human services, shall provide technical and administrative assistance to fiduciary organizations to meet the criteria under this subsection; provided that the State may expend appropriate federal moneys, including temporary assistance for needy families and community development block grants, for this purpose, as applicable.
(c) If the [State] department of
human services approves an application to fund an individual development
account project under this section, the [State] department of human
services shall[, not later than one month after June 28, 1999,]
authorize the applicant to conduct the project with state funds [for five
project years] in accordance with the approved application and this
section; provided that an applicant may apply for funding during future fiscal
years [for five project years if the State lacks the] if there are
sufficient resources to fund an individual development account project
pursuant to this subsection.
[(d) For each individual development
account program approved under this section, the State shall make a grant to
the qualified entity or collaboration of entities authorized to conduct the
project on the first day of the project year in an amount not to exceed
$100,000 per year for five years.
(e)] (d) From among the
individuals eligible for assistance under the Hawaii individual development
account program, each selected fiduciary organization shall select the
individuals [whom] that the fiduciary organization deems to be
best suited to receive [such] the assistance."
SECTION 2. Section 257-8, Hawaii Revised Statutes, is amended to read as follows:
"[[]§257-8[]] Matches.
[(a)] The State shall match an amount of up to [$100,000 per
calendar year for individual development accounts.
(b) Not more than a 2:1 match of state
funds to account holder deposits shall be deposited into any individual
development account in a given year.] 4:1 in state funds for individual
development accounts. The State may adopt rules regarding specific match
ratios for individual development account qualified expenditures."
SECTION 3. Section 257-11, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) The fiduciary organization running
an individual development account program shall have sole authority over the
administration of the project. The [State] department of human
services may [prescribe only such regulations] adopt rules
with respect to demonstration projects [under this chapter] as are
necessary to ensure compliance [pursuant to] with this chapter."
2. By amending subsection (d) to read:
"(d) Selected fiduciary organizations may
use no more than [ten] twenty-five per cent of state funds as
appropriated under this [[]chapter[]] to cover [administrative]
operating costs in any given year."
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2008-2009 for fiduciary organizations, as defined in section 257-1, Hawaii Revised Statutes, to conduct individual development account programs, as provided in section 257-3, Hawaii Revised Statutes.
The sum appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2008.
INTRODUCED BY: |
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