History: L. 2001, ch. 176, § 1; July 1.
(a) "Account holder" means a person who is the owner of an individual development account.
(b) "Assistive technology" means any item, piece of equipment or product system, whether acquired commercially, off the shelf, modified or customized, that is used to increase, maintain or improve functional capabilities of individuals with disabilities.
(c) "Community-based organization" means any nonprofit or charitable association that is approved by the institute to implement the individual development account reserve fund.
(d) "Institute" means the Schiefelbusch institute for life span studies of the university of Kansas.
(e) "Federal poverty level" means the most recent poverty income guidelines published in the calendar year by the United States department of health and human services.
(f) "Financial institution" means any bank, trust company, savings bank, credit union or savings and loan association or any other financial institution regulated by the state of Kansas, any agency of the United States or other state with an office in Kansas which is approved by the institute to create and manage the necessary financial instruments setting up individual development accounts for eligible families or individuals to implement this program.
(g) "Individual development account" means a financial instrument established in K.S.A. 65-7103, and amendments thereto.
(h) "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. Such fund may include federal grant moneys.
(i) "Matching funds" means the moneys designated for contribution from an individual development account reserve fund to an individual development account by a community-based organization at a one-to-one ratio up to a three-to-one match.
(j) "Program" means the Kansas individual development account program established in K.S.A. 65-7101 through 65-7107, and amendments thereto.
(k) "Program contributor" means a person or entity who makes a contribution to an individual development account reserve fund.
History: L. 2001, ch. 176, § 2; July 1.
(b) The institute shall adopt rules and regulations and policies to implement and administer the provisions of K.S.A. 65-7101 through 65-7107, and amendments thereto.
(c) The institute shall enter into contracts as deemed appropriate to carry out the provisions of this act.
(d) The institute 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 process for including economic education seminars in the individual development account program; and
(5) a process for regular evaluation and review of individual development accounts to ensure program compliance by account holders.
(e) A notice of the request for proposals shall be published once a week for two consecutive weeks in a newspaper having general circulation in the community at least 30 days before any action thereon. The request for proposals shall also be posted on readily accessible bulletin boards in all offices of the institute and sent elsewhere as the institute deems best.
(f) In reviewing the proposals of community-based organizations, the institute shall consider the following factors:
(1) The not-for-profit status of such 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 a reserve fund account which shall receive all contributions from program contributors; and
(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.
(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.
(h) No provision of this act shall be deemed to require the institute to be obligated to provide matching funds or to incur any expense in the administration of an individual development account reserve fund.
History: L. 2001, ch. 176, § 3; July 1.
History: L. 2001, ch. 176, § 4; July 1.
(b) A financial institution establishing an individual development account shall:
(1) Keep the account in the name of the account holder;
(2) permit deposits to be made in the account by the following, subject to the indicated conditions:
(A) The account holder; or
(B) a community-based organization on behalf of the account holder. Such a deposit may include moneys to match the account holder's deposits, up to a five to one match rate;
(3) require the account to earn at least the market rate of interest; and
(4) permit the account holder to withdraw moneys upon approval of a community-based organization from the account for the purpose as provided in K.S.A. 65-7104, and amendments thereto.
(c) The total of all deposits by the account holder into an individual development account in a calendar year shall not exceed $5,000. The total balance in an individual development account at any time shall not exceed $50,000.
History: L. 2001, ch. 176, § 5; July 1.
(b) All moneys forfeited by an account holder pursuant to subsection (a) shall be returned to the individual development account reserve fund of the contributing community-based organization.
(c) In the event of an account holder's death, the account, minus the match funds, may be transferred to the ownership of a contingent beneficiary. An account holder shall name contingent beneficiaries at the time the account is established and may change such beneficiaries at any time. If the named beneficiary is deceased or otherwise cannot accept the transfer, the moneys shall be transferred to the estate of the deceased beneficiary.
History: L. 2001, ch. 176, § 6; July 1.
(b) A program contributor shall be allowed a credit against state income tax imposed under the Kansas income tax act in an amount equal to 25% of the contribution amount.
(c) The institute shall verify all tax credit claims by contributors. The administration of the community-based organization, with the cooperation of the participating financial institutions, shall submit the names of contributors and the total amount each contributor contributes to the individual development account reserve fund for the calendar year. The institute shall determine the date by which such information shall be submitted to the institute by the local administrator. The institute shall submit verification of qualified tax credits pursuant to K.S.A. 65-7101 through 65-7107 and amendments thereto to the department of revenue.
(d) The total tax credits authorized pursuant to this section shall not exceed $6,250 in any fiscal year.
(e) The provisions of this section shall be applicable to all taxable years commencing after December 31, 2002.
History: L. 2001, ch. 176, § 7; July 1.