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20-86-106. Individual development account.
Arkansas Code — all titles (historical 2020) · legal_authorities
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 income from all sources for the calendar year preceding the year in which the application is made that does not exceed one hundred eighty-five percent (185%) of the federal poverty level; and
(B) The individual's household net worth at the time the individual development account is opened does not exceed ten thousand dollars ($10,000) disregarding the primary dwelling and one (1) motor vehicle owned by the household.
(b) An individual opening an individual development account shall be required to enter into an individual development account agreement with the fiduciary organization.
(c) The fiduciary organization shall be responsible for coordinating arrangements between the individual and a financial institution to open the individual's individual development account.
(d)(1)(A) Each fiduciary organization shall provide written notification to each of its eligible individual development account holders of the amount of matching funds provided by the fiduciary to which each such individual development account holder is entitled.
(B) Such notification shall be made at such intervals as the fiduciary organization deems appropriate but shall be required to be made at least one (1) time each calendar year.
(2) The amount of such matching funds for each individual development account holder shall be three dollars ($3.00) for each one dollar ($1.00) contributed to the individ
Source: Arkansas Code — historical release 78 (November 6, 2020) · 20-86-106
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:20-86-106
Source file: gov.ar.code.title.20.odt
Pages: Not recorded – Not recorded
Passage SHA-256: bef7ef2a9538e359e0e24b62a9327c46f788c29f3d9be6db3c15e90e4db5ef77
Source location: content.xml paragraph 41408
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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 income from all sources for the calendar year preceding the year in which the application is made that does not exceed one hundred eighty-five percent (185%) of the federal poverty level; and
(B) The individual's household net worth at the time the individual development account is opened does not exceed ten thousand dollars ($10,000) disregarding the primary dwelling and one (1) motor vehicle owned by the household.
(b) An individual opening an individual development account shall be required to enter into an individual development account agreement with the fiduciary organization.
(c) The fiduciary organization shall be responsible for coordinating arrangements between the individual and a financial institution to open the individual's individual development account.
(d)(1)(A) Each fiduciary organization shall provide written notification to each of its eligible individual development account holders of the amount of matching funds provided by the fiduciary to which each such individual development account holder is entitled.
(B) Such notification shall be made at such intervals as the fiduciary organization deems appropriate but shall be required to be made at least one (1) time each calendar year.
(2) The amount of such matching funds for each individual development account holder shall be three dollars ($3.00) for each one dollar ($1.00) contributed to the individual development account by the individual development account holder during the preceding calendar year. The amount of such matching funds shall not exceed two thousand dollars ($2,000) per individual development account holder or four thousand dollars ($4,000) per household.
(3) If the amount of matching funds available is insufficient to disburse the maximum amounts specified in this subsection, amounts of disbursements shall be reduced proportionately based upon available funds.
(e) If an individual development account holder has gross household income from all sources for a calendar year which exceeds one hundred eighty-five percent (185%) of the federal poverty level, the individual development account holder shall not be eligible to receive funds pursuant to the provisions of subsection (d) of this section in the following year.
(f)(1) In the event of an individual development account holder's death, the individual development account may be transferred to the ownership of a contingent beneficiary or beneficiaries. An individual development account holder shall name a contingent beneficiary or beneficiaries at the time that the individual development account is established and may change the beneficiary or beneficiaries at any time.
(2) If the named beneficiary or beneficiaries are deceased or cannot otherwise accept the transfer, the moneys shall be transferred to the fiduciary organization to redistribute as matching funds.
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Arkansas Code — all titles (historical 2020) · legal_authorities
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 enter into such a contract shall submit a proposal to the division for the right to be approved as a fiduciary organization.
(B) Proposals shall be made upon forms prescribed by the division and shall contain such information as the division may require.
(b) Organizations' proposals shall be evaluated and contracts awarded by the division on the basis of such items as geographic diversity and an organization's:
(1) Ability to market the project to potential account holders;
(2) Ability to leverage additional matching and operating funds;
(3) Ability to provide safe and secure investments for individual accounts;
(4) Overall administrative capacity, including, but not limited to, the certifications or verifications required to assure compliance with eligibility requirements, authorized uses of the accounts, matching contributions by individuals or businesses, and penalties for unauthorized distributions;
(5) Capacity to provide financial counseling and other related service to potential participants;
(6) Capacity to provide other activities designed to increase the independence of individuals and families through home ownership, small business development, enhanced education and training, saving for retirement, and automobile purchase, or to provide links to such other activities; and
(7) Operating costs.
(c)(1) For each contract entered into pursuant to the provisions of this section, the contract shall be
Source: Arkansas Code — historical release 78 (November 6, 2020) · 20-86-105
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 20-86-105. This identifies an authority to review, not proof of applicability.