95500. An individual development account program, to be known as the California Savings and Asset Project, is hereby established. The program shall be administered by the Employment Development Department. (Added by Stats. 2002, Ch. 1024, Sec. 2. Effective January 1, 2003. Conditionally operative as prescribed in Section 95501.)
95501. This title shall become operative upon an appropriation of funds by the Legislature, or the allocation of existing discretionary funds by the Governor pursuant to Section 128(a) of the Workforce Investment Act of 1998 (29 U.S.C. Sec. 2853(a)), for the specific stated purpose of establishing the California Savings and Asset Project. This title shall […]
95502. For purposes of this title, the following definitions apply: (a) “Community development credit union” means any credit union chartered under federal or state law. (b) “Community development financial institution” means any community development financial institution certified by the Community Development Financial Institution Fund. (c) “Department” means the Employment Development Department. (d) “Indian tribe” means any Indian tribe, as […]
95503. (a) The department shall issue by July 1, 2003, a request for proposals to entities that may apply to become the nonprofit facilitator of the project. Applications shall include, but need not be limited to, all of the following components: (1) A description of the organization submitting the proposal. (2) A description of the planning process used […]
95504. (a) The nonprofit facilitator shall subcontract with service providers to implement the project around the state. The nonprofit facilitator shall make an attempt to select service providers for programs of different size, geographical distribution, and target population to be served. Additionally, the nonprofit facilitator may consider giving special consideration to service providers that demonstrate partnerships […]
95505. (a) Prior to receiving funds under this title, each service provider shall, within six months of being selected to act as a service provider, provide written documentation to the department that it has secured matching funds from nonstate sources to match each state dollar provided under this title. (b) Service providers shall recruit and select participants […]
95506. Individuals selected to participate in the project shall do all of the following: (a) Contract with his or her service provider. (b) Regularly deposit funds into the individual development account. Participants may contribute to the individual development account using resources generated from the following sources: (1) Earned income. (2) Federal Earned Income Tax Credit refunds. (3) Disability benefits. (4) Child […]
95507. Pursuant to Internal Revenue Service Ruling 99-44, interest earned on funds deposited in the individual development account by the participant is taxable to the participant in the year it is earned, and funds matched to an individual development account are considered a gift at the time they are paid and, therefore, are not considered […]
95508. The financial institution in which an individual development account is established shall: (a) Have no greater duties or responsibilities as to an individual development account than it has to any other savings account. (b) Have no duty or responsibility to any withdrawal restriction established in the contract between the participant and the service provider. (Added by […]
