Kansas Statutes 74-50,203. Same; responsibilities of secretary and department of commerce; community-based organization proposals; administrative costs, limitations
(a) There is hereby established within the department a program to be known as the individual development account program. The program shall provide eligible families and individuals with an opportunity to establish special savings accounts for moneys which may be used by such families and individuals for the purposes enumerated by Kan. Stat. Ann. § 74-50,204, and amendments thereto.
(b) The secretary shall adopt rules and regulations and policies to implement and administer the provisions of Kan. Stat. Ann. § 74-50,201 through 74-50,208, and amendments thereto.
Terms Used In Kansas Statutes 74-50,203
- Account holder: means a legal resident who is the owner of an individual development account. See Kansas Statutes 74-50,202
- Act: means the provisions of Kan. See Kansas Statutes 74-50,211
- Community-based organization: means any religious or charitable association or tribal entity that is approved by the department to implement the individual development account reserve fund. See Kansas Statutes 74-50,202
- department: means the department of commerce;
(4) "entrepreneur" means an individual creating a new business, service or product;
(5) "region" means multi-county areas as defined by the secretary of commerce;
(6) "regional business development fund" means an authorized and audited fund that is created by taxpayer contributions, interest income and investment income and is managed by the regional foundation board of directors for the purposes of economic and leadership development in the region;
(7) "regional foundation" means any organization in Kansas that demonstrates capacity to provide economic development services to regions as defined by this act, and: (A) Has obtained a ruling from the internal revenue service of the United States department of treasury that such organization is exempt from income taxation under the provisions of section 501(c)(3) or 501(c)(6) of the federal internal revenue code;
(B) has been designated as a certified development company by the United States small business administration;
(C) has been designated as an economic development district by the United States department of commerce's economic development administration;
(D) has been organized as a regional planning commission under Kan. See Kansas Statutes 74-50,154
- Individual development account: means a financial instrument established in Kan. See Kansas Statutes 74-50,202
- Individual development account reserve fund: means the fund created by an approved community-based organization for the purposes of funding the costs incurred in the administration of the program by the financial institutions and the community-based organizations and for providing matching funds for moneys in individual development accounts. See Kansas Statutes 74-50,202
- Program: means the Kansas individual development account program established in Kan. See Kansas Statutes 74-50,202
- Secretary: means the secretary of commerce. See Kansas Statutes 74-5059
(c) The secretary shall enter into contracts as deemed appropriate to carry out the provisions of this act.
(d) The department shall prepare a request for proposals from community-based organizations seeking to administer an individual development account reserve fund on a not-for-profit basis. The community-based organization proposals shall include:
(1) A requirement that the community-based organization make matching contributions to the development account of an individual account holder‘s or family’s contributions to the individual development account;
(2) a process for including account holders in decision making regarding the investment of funds in the accounts;
(3) specifications of the population or populations targeted for priority participation in the program;
(4) a requirement that the individual account holder or the family of the account holder attend economic education seminars;
(5) a process for including economic education seminars in the individual development account program;
(6) a process for regular evaluation and review of individual development accounts to ensure program compliance by account holders; and
(7) a requirement that the community-based organization obtain an annual independent audit of the organization’s administration of the provisions of Kan. Stat. Ann. § 74-50,201 through 74-50,208, and amendments thereto.
(e) A notice of the request for proposals shall be published once in the Kansas register at least 10 days before any action thereon.
(f) In reviewing the proposals of community-based organizations, the department shall consider the following factors:
(1) The not-for-profit status or tribal status of such community-based organization;
(2) the fiscal accountability of the community-based organization;
(3) the ability of the community-based organization to provide or raise moneys for matching contributions;
(4) the ability of the community-based organization to establish and administer an individual development reserve fund account which shall receive all contributions from program contributors;
(5) the significance and quality of proposed auxiliary services, including economic education seminars and their relationship to the goals of the individual development account program; and
(6) the percentage of funds in the reserve fund account that shall be used for administrative costs of the program.
(g) No more than 20% of all funds in the reserve fund account may be used for administrative costs of the program in the first and second years of the program, and no more than 15% of such funds may be used for administrative costs in any subsequent year. Funds deposited by account holders shall not be used for administrative costs.