§ 20-86-101. Title

This act shall be known and may be cited as the “Family Savings Initiative Act”.

§ 20-86-102. Declaration

The General Assembly hereby finds that: (1) Americans of most economic classes are having increasing difficulty climbing the economic ladder. Fully half of all Americans have negligible or no investable assets just as the price of entry to the economic mainstream such as the cost of a house, starting a business, obtaining an adequate education, […]

§ 20-86-103. Purpose

The purpose of this act is to provide for the establishment of individual development accounts designed to: (1) Provide individuals and families with limited means an opportunity to accumulate assets; (2) Facilitate and mobilize savings; (3) Promote home ownership, microenterprise development, education, saving for retirement, and automobile purchase; and (4) Stabilize families and build communities.

§ 20-86-104. Definitions

As used in this subchapter: (1) (A) “Administrative costs” includes, but is not limited to, soliciting matching funds, processing fees charged by the fiduciary organization or financial institution, and traditional overhead costs. (B) Administrative costs shall be limited to no more than ten percent (10%) of the contract; (2) “Eligible educational institution” means the following: […]

§ 20-86-105. Proposals

(a) (1) The Division of Workforce Services shall enter into contracts with one (1) or more fiduciary organizations pursuant to the provisions of this section in such a manner that different regions of the state are served by one (1) or more fiduciary organizations. (2) (A) An organization based in this state which desires to […]

§ 20-86-106. Individual development account

(a) (1) An individual who is a resident of this state may submit an application to open an individual development account to a fiduciary organization approved by the Division of Workforce Services pursuant to the provisions of § 20-86-105. (2) The fiduciary organization shall approve the application only if: (A) The individual has gross household […]

§ 20-86-107. Individual development account — Purpose

(a) Individual development accounts may be used for any of the following qualified purposes: (1) Qualified acquisition costs with respect to a qualified principal residence for a qualified first-time home buyer or the costs of major repairs or improvements to a qualified principal residence, if paid directly to the persons to whom the amounts are […]

§ 20-86-108. Penalty

(a) (1) If the fiduciary organization receives evidence that moneys withdrawn from individual development accounts are withdrawn under false pretenses or are used for purposes other than for the approved purposes indicated at the time of the withdrawal, the fiduciary organization shall make arrangements with the financial institution to impose a penalty of loss of […]

§ 20-86-109. Matching funds

(a) (1) Any individual, business, organization, or other entity may contribute matching funds to a fiduciary organization. (2) The funds shall be designated to the fiduciary organization to allocate to participants who meet the requirements in § 20-86-106. (b) (1) A credit shall be allowed against the income tax liability imposed by the Income Tax […]

§ 20-86-110. Effect on other programs

Funds deposited into an individual development account shall not be counted as income, assets, or resources of the individual in determining financial eligibility for assistance or services pursuant to any federal, federally assisted, state, or municipal program based on need.

§ 20-86-111. Reporting requirements

Each fiduciary organization shall provide quarterly to the Division of Workforce Services the following information: (1) The number of individuals making deposits into an individual development account; (2) The amounts deposited into the individual development account; (3) The amounts not yet allocated to individual development accounts; (4) The amounts withdrawn from the individual development accounts […]

§ 20-86-112. Implementation

The Division of Workforce Services shall be responsible for implementation of this subchapter and shall promulgate rules as necessary in accordance with the provisions of this subchapter.

§ 20-86-113. Reports — Recommendations

(a) The Division of Workforce Services shall prepare a written report annually regarding the implementation of this act and shall make recommendations for improving the program. (b) The report shall be transmitted to the General Assembly on or before August 1 of each year.