As used in the Individual Development Account Act:
A. "account owner" means the person in whose name an individual development account is originally established;
B. "allowable use" means a lawful use that complies with the provisions of the Individual Development Account Act, or rules adopted pursuant to that act;
C. "authorized financial institution" means a financial institution authorized by the office to hold and manage individual development accounts and reserve accounts;
D. "department" means the workforce solutions department;
E. "earned income" means wages from employment, payment in lieu of wages, income tax refunds, disability payments, tribal distributions, or earnings from self-employment or acquired from the provision of services, goods or property, production of goods, management of property or supervision of services;
F. "eligible individual" means a person who meets the criteria for opening an individual development account;
G. "financial institution" means a bank, bank and trust, savings bank, savings association or credit union authorized to be a trustee of individual development accounts, the deposits of which are insured by the federal deposit insurance corporation or the national credit union administration;
H. "indigent" means an individual who, taking into account present income, liquid assets and requirements for basic necessities of life for the individual and the individual's dependents, is unable to pay the costs of allowable uses as set forth in the Individual Development Account Act;
I. "individual development account" means an account established and maintained in an authorized financial institution by an eligible individual participating in an individual development account program pursuant to the provisions of the Individual Development Account Act;
J. "individual development account program" means a program approved by the department to establish and administer individual development accounts and reserve accounts for eligible individuals and to provide financial capability training or financial coaching required by the department for account owners;
K. "matching funds" means money deposited in a reserve account to match the withdrawals for allowable uses from an individual development account according to a proportionate formula that complies with rules adopted by the secretary;
L. "nonprofit organization" means an instrumentality of the state or a local government or an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation pursuant to Section 501(a) of that code;
M. "program administrator" means a nonprofit organization or tribe that is selected pursuant to the Individual Development Account Act to offer an individual development account program pursuant to a contract with the secretary;
N. "reserve account" means an account established pursuant to the Individual Development Account Act in an authorized financial institution in which matching funds are maintained and available for payment for a predetermined allowable use following completion of all program requirements by the account owner;
O. "secretary" means the secretary of workforce solutions; and
P. "tribe" means an Indian nation, tribe or pueblo located in whole or in part within New Mexico.
History: Laws 2003, ch. 362, § 2; 2005, ch. 111, § 15; 2006, ch. 96, § 2; 2007, ch. 349, § 2; 2019, ch. 225, § 3.
ANNOTATIONSCross references. — For Section 501 of the Internal Revenue Code of 1986, see 26 U.S.C. § 501.
The 2019 amendment, effective January 1, 2020, defined "department", "financial institution", "indigent" and "secretary", and revised and removed the definitions of certain terms, as used in the Individual Development Account Act; in Subsection B, after "means a", added "lawful"; in Subsection D, deleted "'director' means the director of the office" and added "'department' means the workforce solutions department"; in Subsection E, after "in lieu of wages,", added "income tax refunds"; added new Subsections G and H and redesignated former Subsections G and H as Subsections I and J, respectively; in Subsection J, after "provide financial", added "capability", and after "training", added "or financial coaching"; deleted former Subsections I and J; deleted former Subsection M and redesignated former Subsections N and O as Subsections M and N, respectively; and added a new Subsection O.
The 2007 amendment, effective July 1, 2007, changes the title of the act and changes "family opportunity account" to "individual development account".
The 2006 amendment, effective July 1, 2006, changes "Individual Development Account Act" to "Family Opportunity Accounts Act" in Subsections A, C, F and K (formerly Subsection J); changes "an individual development account" to "family opportunity account" in Subsection B; changes "Individual Development Account Act" to "Family Opportunity Accounts Act" in Subsection C; deletes "of workforce training and development" after "office"; adds Subsection G to define "family opportunity account"; adds Subsection H to define "family opportunity account program" and deletes former Subsection H, which defined "individual development account"; deletes former Subsection I, which defined "individual development account program"; adds Subsection J to define "indigent"; in Subsection N (formerly Subsection M), revises the definition of "program administrator"; and in Subsection O (formerly Subsection N), changes "Individual Development Account Act" to "Family Opportunity Accounts Act".
The 2005 amendment, effective April 4, 2005, defines "authorized financial institution" to mean a financial institution authorized by the office of workforce training and development to hold and manage accounts in Subsection C; defines "director" to mean the director of the office of workforce training and development in Subsection D; deletes the definition of "division" in former Subsection E; defines "individual development account program" to mean a program approved by the office of workforce training and development to establish and administer accounts in Subsection I; and defines "office" to mean the office of workforce training and development in Subsection L.