[§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.



(c)  If the State approves an application to
fund an individual development account project under this section, the State
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 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)  From among the individuals eligible for
assistance under the Hawaii individual development account program, each
selected fiduciary organization shall select the individuals whom the fiduciary
organization deems to be best suited to receive such assistance. [L 1999, c
160, pt of §25]



 



Revision Note



 



  "June 28,
1999" substituted for "the date of the enactment of this Act".