(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:
Terms Used In Hawaii Revised Statutes 257-3
Fiduciary: A trustee, executor, or administrator.
Fiduciary organization: means an organization that serves as an intermediary between an individual account holder and the financial institution holding the individual's individual development account funds. See Hawaii Revised Statutes 257-1
Individual development account: means an optional, interest bearing, subsidized, tax-benefitted account used exclusively for the purpose of paying the qualified expenditure of an eligible individual as determined by the fiduciary organization. See Hawaii Revised Statutes 257-1
(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.
