(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.