2023 New Mexico Statutes › Chapter 58 - Financial Institutions and Regulations › Article 30 - Individual Development Account › Section 58-30-7 - Administration of individual development account programs.

A. An individual development account may be established for an eligible individual; provided that the money deposited in the account is expended for allowable uses for the account owner or the account owner's spouse or dependents unless otherwise approved by the program administrator.
B. An individual development account program shall be approved and monitored by the secretary for compliance with applicable law, the Individual Development Account Act and rules adopted pursuant to that act.
C. The program administrator shall establish a reserve account sufficient to meet the matching fund commitments made to all account owners participating in the individual development account program and shall report at least quarterly to each account owner the amount of money available in the reserve account for use by the program administrator to match withdrawals for allowable uses. The amount of state funds deposited in a reserve account during a calendar year to match deposits from any single account owner shall not exceed the higher of:
(1) two thousand dollars ($2,000); or
(2) an amount determined by rule; provided that the cumulative reserve account deposits shall total not less than one hundred twenty-five percent of the prior calendar year match to deposits beginning in the second year of the individual development account program; and further provided that the state shall match deposits of every account owner dollar-for-dollar up to two thousand dollars ($2,000) in a calendar year.
D. The program administrator shall provide financial education, including financial coaching and other necessary guidance and electronic reminders to encourage deposits and to achieve goals of allowable uses by account owners, develop partnerships with financial institutions, distribute matching funds and manage the operations of an individual development account that is established within the program.
E. An eligible individual may open an individual development account upon verification by the program administrator that the individual maintains no other individual development account.
F. More than one eligible individual per household may hold an individual development account.
G. An account owner shall complete a tested financial education program, including financial coaching, prior to the withdrawal of money from the account owner's individual development account for allowable uses unless written approval is obtained from the program administrator.
History:
Laws 2003, ch. 362, § 7; 2005, ch. 111, § 18; 2006, ch. 96, § 7; 2007, ch. 349, § 7; 2019., ch. 225, § 8.
ANNOTATIONS
The 2019 amendment,
effective January 1, 2020, established minimum state matching funds; in Subsection C, deleted "Notwithstanding any matching commitment otherwise required.", in Paragraph C(2), after "by rule", deleted "of the office" and added "provided that the cumulative reserve account deposits shall total not less than one hundred twenty-five percent of the prior calendar year match to deposits beginning in the second year of the individual development account program; and further provided that the state shall match deposits of every account owner dollar-for-dollar up to two thousand dollars ($2,000) in a calendar year"; in Subsection D, after "financial education", added "including financial coaching", after "necessary", deleted "training pertinent" and added "guidance and electronic reminders", after "to", added "encourage deposits and to achieve goals of", and after "financial institutions", deleted "develop" and added "distribute"; and in Subsection G, after "shall complete a", added "tested", after "financial education program", added "including financial coaching", and after "individual development account", added "for allowable uses".
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" to "family opportunity account" in Subsections A through F; changes "Individual Development Account Act" to "Family Opportunity Accounts Act" in Subsection B; changes "individual development account program" to "program administrator" in Subsections C and D; in Subsection C, provides a limitation on the amount of the deposit of state funds in a reserve account to match deposits from an account owner; and provides in Subsection G that the program administrator may permit withdrawal from an account before the owner completes a financial education program.
The 2005 amendment,
effective April 4, 2005, changes the reference from the local government division to the office of workforce training and development.