[§257-3]  Fiduciary organizations.  (a) Fiduciary organizations shall serve as an intermediary between individualdevelopment account holders and financial institutions holding accounts.  Thefiduciary organization's responsibilities may include:

(1)  Marketing participation;

(2)  Soliciting matching contributions;

(3)  Counseling program participants; and

(4)  Conducting verification and complianceactivities.

(b)  Locally-based organizations shall enterinto a competitive process for the right to become fiduciary organizations fora portion of the state matching dollars that would be authorized initially. Fiduciary organization proposals shall be evaluated and participation rightsawarded on the basis of such items as:

(1)  Their ability to market the program to potentialindividual development account holders and potential matching fundcontributors;

(2)  Their ability to provide safe and secureinvestments for individual development accounts;

(3)  Their overall administrative capacity, including:

(A)  Certifications or verifications requiredto assure compliance with eligibility requirements;

(B)  Authorized uses of the accounts matchingcontributions by individuals or businesses; and

(C)  Penalties for unauthorized distributions;

(4)  Their capacity to provide financial counselingand other related services to potential participants; and

(5)  Their links to other activities designed toincrease the independence of individuals and families through high returninvestments, including homeownership, education and training, and smallbusiness development.

(c)  If the State approves an application tofund an individual development account project under this section, the Stateshall, not later than one month after June 28, 1999, authorize the applicant toconduct the project with state funds for five project years in accordance withthe approved application and this section; provided that an applicant may applyfor funding during future fiscal years for five project years if the Statelacks the resources to fund an individual development account project pursuantto this subsection.

(d)  For each individual development accountprogram approved under this section, the State shall make a grant to thequalified entity or collaboration of entities authorized to conduct the projecton the first day of the project year in an amount not to exceed $100,000 peryear for five years.

(e)  From among the individuals eligible forassistance under the Hawaii individual development account program, eachselected fiduciary organization shall select the individuals whom the fiduciaryorganization deems to be best suited to receive such assistance. [L 1999, c160, pt of §25]

 

Revision Note

 

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