(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 who meet the following criteria:
(1)
The individual is at least 18 years of age.
(2)
The individual is a member of a household with an income of not more than 80 percent of the area median income based on United States Department of Housing and Urban Development guidelines at the time of program enrollment.
(3)
The individual is not a dependent or another person for federal income tax purposes.
(4)
The individual is not a debtor for a judgment resulting from nonpayment of a court-ordered child support obligation.
(c)
Service providers shall develop and sign contracts with each participant, to include all program requirements and policies governing the participant’s account.
(d)
Service providers shall assist participants in opening individual development accounts. The accounts shall be established using a parallel account structure that meets both of the following requirements:
(1)
One separate account is established for each participant in a federally or state insured financial institution, community development financial institution, any financial institution eligible to hold an individual retirement account, or community development credit union, in which each participant’s savings are deposited and maintained. The program participant may withdraw his or her own savings at any time.
(2)
Another separate, parallel account is established and maintained by service providers in which the matching funds from state, federal, and private donations are kept. The parallel account may contain all matching funds for a pool of any service provider’s participants.
(e)
Service providers shall help individuals receive their matching funds at the conclusion of the program. All state matching funds shall be paid directly to the vendor as specified by the program participant.
(f)
Service providers shall provide participants with a minimum of 12 hours of financial education and training. The education and training shall include, but is not limited to, all of the following:
(1)
Household and personal budget management.
(2)
Economic literacy.
(3)
Credit repair.
(g)
Service providers shall develop a program dismissal process for participants who do not fulfill program participation requirements, and seek to ensure that matching funds are used for their intended purposes.
(h)
Service providers shall collect and maintain information about their programs, and participants shall do so in a manner that provides the capacity to report all of the following information, semiannually, to the department:
(1)
The number and demographic characteristics of participants enrolled in the program.
(2)
The number of accounts established.
(3)
The individual and aggregate savings level of participants.
(4)
The number of participants who closed accounts and the amount of associated savings.
(5)
The actual and proposed program budget.
(6)
The size and origin of matching pool funds received, obligated, and paid to participants.
(7)
The program achievements and obstacles.
(8)
Twelve-month program and financial projections.
(9)
At least one participant profile, and state maintenance of effort requirements.
(i)
Each participant may save up to a maximum of three thousand dollars ($3,000) in total, over the life of his or her individual development account.