Arkansas Code of 1987 (2023) › Title 20 - PUBLIC HEALTH AND WELFARE (§§ 20-2-101 — 20-86-113) › Subtitle 5 - SOCIAL SERVICES (§§ 20-76-101 — 20-86-113) › Chapter 86 - FAMILY SAVINGS INITIATIVE ACT (§§ 20-86-101 — 20-86-113) › Section 20-86-104 - Definitions

As used in this subchapter:
(1)
(A)
"Administrative costs" includes, but is not limited to, soliciting matching funds, processing fees charged by the fiduciary organization or financial institution, and traditional overhead costs.
(B)
Administrative costs shall be limited to no more than ten percent (10%) of the contract;
(2)
"Eligible educational institution" means the following:
(A)
An institution described in
20 U.S.C. § 1088(a)(2)
or §
1141(a)
, as such sections are in effect on January 1, 2000;
(B)
An area vocational education school, as defined in
20 U.S.C. § 2471(4)
, subparagraph (C) or subparagraph (D), as the section is in effect on January 1, 2000; and
(C)
Any other accredited education or training organization;
(3)
"Federal poverty level" means the poverty income guidelines published for a calendar year by the United States Department of Health and Human Services;
(4)
"Fiduciary organization" means the organization that will serve as an intermediary between an individual account holder and a financial institution holding account funds. A fiduciary organization shall be a not-for-profit organization described in § 501(c)(3) of the Internal Revenue Code of 1986,
26 U.S.C. § 501(c)(3)
, as in effect on January 1, 2000;
(5)
"Financial institution" means an organization authorized to do business under state or federal laws relating to financial institutions and includes, but is not limited to, a bank, trust company, savings bank, building and loan association, savings and loan company or association, or credit union;
(6)
"Individual development account" means an account created pursuant to this subchapter exclusively for the purpose of paying the expenses of an eligible individual or family for the purposes set forth in §
20-86-107
;
(7)
"Net worth" means the aggregate market value of all assets that are owned in whole or in part by any member of the household, less the obligations or debts of any member of the household;
(8)
"Operating costs" includes, but is not limited to, costs of training individual development account participants in economic and financial literacy and individual development account uses, marketing participation, counseling participants, and conducting required verification and compliance activities;
(9)
"Postsecondary educational expenses" means:
(A)
Tuition and fees required for the enrollment or attendance of an individual development account holder or immediate family member thereof who is a student at an eligible educational institution; and
(B)
Fees, books, supplies, and equipment required for courses of instruction for an individual development account holder or immediate family member thereof who is a student at an eligible educational institution;
(10)
"Qualified acquisition costs" means:
(A)
The costs of acquiring, constructing, or reconstructing a residence to be occupied by an individual development account holder or an immediate family member thereof, including, but not limited to, any usual or reasonable settlement, financing, or other closing costs; and
(B)
The costs of acquiring or repairing a motor vehicle to be used by an individual development account holder or an immediate family member thereof, including, but not limited to, any taxes, insurance, or registration costs incurred in acquiring a motor vehicle;
(11)
"Qualified business" means any business that does not contravene any law or public policy;
(12)
"Qualified business capitalization expenses" means qualified expenditures for the capitalization of a qualified business pursuant to a qualified plan;
(13)
"Qualified emergency withdrawals" means a withdrawal by an eligible individual that is a withdrawal of only those funds or a portion of those funds deposited by the individual into the individual development account of the individual and that is permitted by a fiduciary organization on a case-by-case basis in accordance with the rules established by the department;
(14)
"Qualified expenditures" means expenditures included in a qualified plan, including, but not limited to, capital, plant, equipment, working capital, and inventory expenses;
(15)
"Qualified first-time home buyer" means an individual who has no ownership interest in a principal residence during the three-year period ending on the date of acquisition of the principal residence to which this subchapter applies;
(16)
"Qualified plan" means a plan for the operation of a business by an individual development account holder or an immediate family member thereof that:
(A)
Is approved by a financial institution or by a nonprofit microenterprise program or loan fund, having demonstrated business expertise;
(B)
Includes a description of services or goods to be sold, a marketing plan, and projected financial statements; and
(C)
May require the eligible individual to obtain the assistance of an experienced entrepreneurial advisor; and
(17)
"Qualified principal residence" means a principal residence within the meaning of section 1034 of the Internal Revenue Code of 1986,
26 U.S.C. § 1034
, as in effect on January 1, 2000, of an individual development account holder or an immediate family member thereof, the qualified acquisition costs of which do not exceed the average area purchase price applicable to such residence, determined in accordance with paragraphs (2) and (3) of section 143(e) of the Internal Revenue Code,
26 U.S.C. § 143(e)(2) and (3)
, as in effect on January 1, 2000.
Acts 1999, No. 1217, § 4; 2007, No. 252, § 1.