This law establishes the California Savings and Asset Project, which is a program designed to help individuals save and develop assets. The program will be managed by the Employment Development Department.

This law will take effect when either the California Legislature assigns funds or the Governor allocates existing funds for creating the California Savings and Asset Project. It can only be put into action if the necessary funding is provided through the annual Budget Act or future legislative actions.

This law section defines key terms related to community development financial activities in California. It explains what qualifies as a community development credit union and a community development financial institution. The law also identifies the Employment Development Department and specifies what constitutes an Indian tribe for these purposes. It defines an individual development account as a savings account aimed at specific financial goals. The role of a nonprofit facilitator and participant in the California Savings and Asset Project is clarified. Additionally, the terms related to business capitalization, such as qualified business expenditures and qualified plans, are detailed. Finally, service providers are identified as entities involved in the project, including nonprofits and certain financial institutions.

This regulation establishes procedures for selecting and funding a nonprofit to oversee a specific project. Interested organizations must submit detailed proposals that describe their planning process, business plan, marketing strategy, financial management, and audit plans. The proposals are assessed by a review committee for their compliance and quality. The chosen nonprofit will manage the project and receive funding up to 10% of the annual budget. The department reports annually to the Legislature, detailing participant numbers, account savings, and program successes.

This statute outlines the responsibilities of nonprofit facilitators and service providers in implementing a statewide project. The nonprofit facilitator must choose diverse service providers and consider those with local public agency partnerships. The service providers are tasked with selecting participants who meet specific criteria, such as age, income level, and tax dependency status, and who do not owe child support. They must also establish individual development accounts for participants and manage matching funds from various sources. Participants are required to sign contracts, receive financial education, and adhere to program policies. Service providers have to create a system for dismissing non-compliant participants and maintain detailed records to report on program progress, including participant demographics, savings amounts, and program budget.

In summary, the law is about organizing and managing a financial education and savings program for certain eligible individuals, ensuring accountability, and reporting on its outcomes.

This law outlines the requirements for service providers before they can receive state funds. They must secure matching funds from non-state sources and recruit participants meeting specific criteria such as being over 18, having a household income below 80% of the area median, and not having certain financial obligations like unpaid child support. Providers need to establish separate accounts for participants' savings and the matching funds and help participants access these funds at the program's end. Participants must receive at least 12 hours of financial education covering budgeting, economic literacy, and credit repair. Providers must also report various details about the program and participants semiannually and have a process for dismissing participants who don't meet requirements. Lastly, participants can save up to $3,000 in their development accounts over the program's duration.

People chosen for this project must sign a contract with their service provider and regularly deposit money into their individual development account (IDA). They can use different income sources, like earned income, tax refunds, or disability benefits, to fund these accounts.

They have to choose goals for their savings, such as paying for higher education, buying a home, making major home repairs, or purchasing a vehicle for work or studies. The savings can also go towards starting a business or buying assistive technology for disabled participants.

Participants need to communicate with their service provider, attend at least 12 hours of related training, and keep their savings in the account for at least six months.

This law explains that if you earn interest on money in an individual development account, you have to report that interest as taxable income when it is earned. However, if you receive matching funds for your account, those funds are considered a gift and are not taxed as income.

This law states that a bank or financial institution that holds an individual development account doesn't have any extra duties or responsibilities compared to regular savings accounts. The bank also isn't responsible for enforcing any restrictions on withdrawals that may be set in the contract between the account holder and the service provider.