| (a) A Board may set local policy and procedures to provide for implementation and oversight of Individual Development Accounts (IDAs) under this section using TANF funds in accordance with 45 C.F.R. §§263.20 - 263.23. An IDA means an account established by, or for, an eligible individual to allow the individual to accumulate funds for specific purposes. (b) A Board shall ensure that any IDAs created and matched with TANF funds are established and administered through a contract with a private nonprofit entity or through a state or local government entity acting in cooperation with a private nonprofit entity. The private nonprofit entity, or cooperating state or local entity, must coordinate with a financial institution in administering the accounts. (c) Choices participants may be eligible for IDAs if all of the requirements of this section are met. (d) IDAs may be established for an eligible individual, and may be contributed to with the individual's earned income and up to fifty percent of the individual's federal Earned Income Tax Credit refund. Federal Earned Income Tax Credit refunds shall not be matched with TANF funds. (e) Federal TANF funds, as well as public or private funds, may be used to provide matching funds for qualified expenses and to administer IDAs, and shall be expended in a manner consistent with applicable federal and state statutes and regulations, with the exception of federal Earned Income Tax Credit refunds. (f) Use of funds in an individual's IDA, shall be in accordance with the Social Security Act §404(h) (42 U.S.C. §604(h)) and 45 C.F.R. §§263.20 - 263.23 and limited to expenses related to: (1) postsecondary educational expenses; (2) first home purchase; or (3) business capitalization. (g) A Board shall ensure that only qualified withdrawals are made by eligible individuals, and must develop policies and procedures to address unauthorized withdrawals, to include notification: (1) to the individual that unauthorized withdrawals may impact the individual's eligibility for public assistance programs; (2) to the individual of forfeiture of the entitlement to the matching funds for an unauthorized withdrawal; and (3) to HHSC within seven working days of the unauthorized withdrawal. |
