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The Oregon Administrative Rules contain OARs filed through August 15, 2014
 
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HOUSING AND COMMUNITY SERVICES DEPARTMENT

 

DIVISION 300

INDIVIDUAL DEVELOPMENT ACCOUNTS

813-300-0005

General Purpose

OAR 813, division 300, is promulgated to accomplish the general purposes of ORS 315.271 and 458.670 through 458.700, as they pertain to the Housing and Community Services Department and its supervision of individual development accounts ("IDAs"). These statutes, among other things, authorize the creation of IDAs between lower income account holders and authorized fiduciary organizations. Through these IDAs, account holders may deposit funds into cooperating financial institutions so as to accumulate assets that may be used by them in a manner consistent with personal development plans developed in conjunction with their participating fiduciary organization. The fiduciary organizations, in turn, deposit matching funds through the corresponding IDAs into financial institutions so as to augment account holder assets. The fiduciary organizations also provide their expertise in coordination of the personal development plans. Fiduciary organizations largely obtain their matching funds from contributors. Contributions to fiduciary organizations for use as IDA matching deposits may qualify the contributor for a tax credit under ORS 315.271.

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 315.271 & 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03

813-300-0010

Definitions

As used in these rules, unless the context indicates otherwise:

(1) "Account holder" means a member, age 12 or older, of a lower income household that has a net worth of less than $20,000 who is the named depositor of an individual development account.

(2) "Contributor" means a person or entity contributing funds to the Department or to a fiduciary organization for the purpose of matching IDA deposits by an account holder or for funding program plan operations.

(3) "Department" means the Housing and Community Services Department established in ORS 456.555 and, where applicable, its designee.

(4) "Designated beneficiary" means a minor-age member of the account holder's household who is the beneficiary of an IDA used to pay the member's extracurricular non-tuition expenses designed to prepare the member for post-secondary education or job training.

(5) "Fiduciary organization" means a non-profit, fund raising organization that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code as amended and in effect on January 1, 1999, or a federally recognized Oregon Indian tribe that is located, to a significant degree, within the boundaries of this state, as selected by the department under these rules.

(6) "Fiduciary organization program plan" or "program plan" means a mission statement by a fiduciary organization and the corresponding detailed plan by it for the solicitation of contributions (tax credit or otherwise) and prospective account holders, the management of IDA's and their associated personal development plans, and the operation of the fiduciary organization itself — all as approved by the Department and with such modifications as the Department may require. A prospective program plan must accompany any application to the Department for its approval of a fiduciary organization.

(7) "Financial institution" means an organization regulated under ORS Chapters 706 to 716, 722 or 723, or in the case of an account established for the purpose described in 458.685(1)(c) related to college savings plans, a financial institution as defined in 348.841.

(8) "Individual development account (IDA)" or "account" means a contract between an account holder and a fiduciary organization for the deposit of funds into a financial institution by the account holder, and the deposit of matching funds into a financial institution by the fiduciary organization, to allow the account holder to accumulate assets for use toward achieving a specific purpose approved by the fiduciary organization.

(9) "Lower income household" means a household having an income equal to or less than the greater of the following:

(a) 80 percent of the median household income for the area as determined by the Department. In making the determination, the Department shall give consideration to any data on area household income published by the United States Department of Housing and Urban Development.

(b) 200 percent of the poverty guidelines as determined by the Department. In making the determination, the Department shall give consideration to poverty guidelines published by the United States Department of Health and Human Services or may consider other income data periodically published by other federal or Oregon agencies.

(10) "Median Household Income" means, for the appropriate household size, the higher of:

(a) The median family income for the Metropolitan Statistical Area or county as published annually by the United States Department of Housing and Urban Development, or

(b) The statewide median family income for Oregon as published annually by the United States Department of Housing and Urban Development.

(11) "Net worth" means the value of all assets owned in whole or part by household members excluding equity in a residence and one vehicle, and excluding holdings in pension accounts, as defined by the Housing and Community Services Department by rule, that are valued at $60,000 or less, minus the total debts and obligations of household members, all as measured at the time the prospective account holder applies to establish the IDA.

(12) "Oregon individual development account tax credit" or "tax credit" means a credit against taxes otherwise due under ORS Chapter 316, 317, or 318, as allowed in return for contributions to a fiduciary organization for eventual distribution to individual development accounts established under ORS 458.685.

(13) “Pension Account” means an account that is funded by an employee and/or the employer specifically to provide a retirement income, and in which the account is structured so that the funds in the account are either inaccessible to the employee until he/she terminates employment or reaches retirement or are accessible with an early withdrawal penalty.

(14) "Personal development plan" means a written plan developed jointly by the fiduciary organization and the prospective account holder for an IDA that is designed to provide the account holder with appropriate financial and asset training, counseling, career or business planning and other services that will increase the self-reliance of the account holder and his/her household through achievement of the IDA's approved purposes. The personal development plan must be in conformance with ORS 458.680, these rules and other requirements of the Department.

(15) "Related funds" means contributions to fiduciary organizations for IDA program purposes that do not qualify for tax credits and supplemental funding from the Department for IDA program purposes.

(16) "Resident of this state" has the meaning given in ORS 316.027

(17) "Reverted funds" means matching IDA deposits that devolve to a fiduciary organization because of the termination or revocation of a person as an account holder or unused tax credit contributions or supplemental funds upon termination or revocation of a fiduciary organization or at the expiration of its program plan.

(18) "Supplemental funding" means funds provided by the Department to fiduciary organizations for program plan purposes.

(19) "Tax credit contributor" means a contributor who receives a corresponding tax credit as allowed in ORS 315.271.

(20) "Tax credit contributions" means funds obtained from tax credit contributors who, in return, earn a tax credit.

(21) "Trust Land" means all lands held in trust by the United States on behalf of an Indian Tribe or individual Indian.

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 315.271 & 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03; OHCS 9-2003, f. & cert. ef. 12-19-03; OHCS 13-2007(Temp), f. & cert. ef. 10-2-07 thru 3-30-08; OHCS 2-2008, f. & cert. ef. 3-18-08; OHCS 3-2010, f. & cert. ef. 1-7-10; OHCS 25-2013(Temp), f. & cert. ef. 12-18-13 thru 6-16-14; OHCS 31-2014, f. & cert. ef. 6-12-14

813-300-0020

Fiduciary Organization Application Process

(1) The Department from time to time may solicit applications from entities desiring to be authorized as fiduciary organizations. The Department, in its sole discretion, may choose to consider for approval only proposed fiduciary organizations identified in applications received in response to such solicitations. The Department, in its sole discretion, also may approve fiduciary organizations on its own initiative or consider for approval proposed fiduciary organizations identified in applications received outside of a Department solicitation.

(2) All applications for approval of a proposed fiduciary organization shall be in writing to the Department in such form and with such content as the Department may require. In addition to any other information required by the Department, an application must include the following:

(a) The name, address, telephone number, Fax number, tax identification number of the proposed fiduciary organization, and key program contact person;

(b) A description of the proposed fiduciary organization entity, its officers, and ownership structure;

(c) Copies of the organic documents of the proposed fiduciary organization and proof, satisfactory to the Department, that such entity is in good standing and is authorized to transact business in the State of Oregon;

(d) A statement of the proposed fiduciary organization's capacity to act as a fiduciary organization, including relevant experience;

(e) A description of the geographic area to be served;

(f) A description of the key personnel who will specifically administer the individual development account program in the proposed fiduciary organization;

(g) The proposed program plan of the proposed fiduciary organization;

(h) A description of proposed third-party contractors and others, if any, by which the proposed fiduciary organization intends to accomplish program plan responsibilities;

(i) Signed agreements with one or more financial institutions to hold and operate individual development accounts;

(j) The entity's proposed program plan budget through the entity's first full fiscal year of its program plan identifying, at a minimum, projected revenues and expenses.

(k) If applicable, an application for supplemental funding from the Department for the period of the proposed program plan budget.

(3) The Department, in its sole discretion, may determine the number of fiduciary organizations to be authorized at any particular time. Consistent with such discretion, and its discretion to solicit, to consider and to initiate applications, the Department will approve as fiduciary organizations those entities that, in its judgment, best suit the purposes of ORS 458.670 through 458.700 and these rules.

(4) The Department, in its sole discretion, may establish time limits upon the duration of any approval of a fiduciary organization.

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 315.271 & 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03; OHCS 13-2007(Temp), f. & cert. ef. 10-2-07 thru 3-30-08; OHCS 2-2008, f. & cert. ef. 3-18-08

813-300-0030

Fiduciary Organization Application Review

(1) In reviewing applications for authorization as a fiduciary organization, the Department shall consider the following factors:

(a) The ability of the prospective fiduciary organization to implement and administer the individual development account program, including the ability to verify account holder eligibility, certify that matching deposits are used only for approved purposes and exercise general fiscal accountability;

(b) The capacity of the prospective fiduciary organization to provide or raise matching funds for the deposits of accountholders;

(c) The capacity of the prospective fiduciary organization to provide appropriate support services and general assistance to advance account holder self-reliance; and

(d) The links that the prospective fiduciary organization has to other activities and programs designed to increase the independence of this state's lower income households through education and training, home ownership and small business development.

(2) In reviewing applications for authorization as a fiduciary organization, the Department may consider additional factors including, but not limited to, the following:

(a) The eligibility of the entity;

(b) The sufficiency and accuracy of the application;

(c) The geographic area of proposed program plan operation and the need to be addressed;

(d) The performance of the entity in providing additional information, as requested;

(e) The quality of the proposed program plan, including the range and quality of potential personal development plans;

(f) The willingness and ability of the prospective fiduciary organization to effect modifications to its proposed program plan;

(g) The capacity of the prospective fiduciary organization to work together with third-party contractors and other program plan partners to accomplish its proposed program plan as modified, if at all, by the Department;

(h) The Department's past experience with the entity, its proposed third-party contractors, other proposed program plan partners, and identified personnel;

(i) Public opinion or other input; and

(j) Department administrative interests.

(3) The Department may condition authorization of an entity as a fiduciary organization upon Department-required changes in the terms of the entity's application including, but not limited to its proposed program plan. The Department also may condition its authorization upon such other requirements as the Department determines to be appropriate.

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 315.271 & 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03; OHCS 13-2007(Temp), f. & cert. ef. 10-2-07 thru 3-30-08; OHCS 2-2008, f. & cert. ef. 3-18-08

813-300-0040

Fiduciary Organization General Responsibilities

(1) All entities must satisfy applicable legal standards, including these rules as modified from time to time as well as orders and other directives of the Department, and be authorized in writing by the Department, prior to and during all times that such entities function as fiduciary organizations.

(2) Authorized fiduciary organizations must operate in a manner consistent with the program plan and organizational documents submitted by them to the Department as approved by the Department. Fiduciary organizations may amend program plans and organizational documents from time to time with the prior written approval of the Department. The Department, from time to time, also may require changes to a program plan.

(3) Subject to Department approval, fiduciary organizations may engage third-party contractors or otherwise partner with others to perform program plan duties. Any contract or other agreement between a fiduciary organization and a third-party contractor or other partner must provide that the terms thereof and performance by the parties is subject to applicable law, these rules as amended from time to time, and the orders and directives of the Department.

(4) Fiduciary organizations assume full responsibility to the Department for operation of their program plan and the use of tax credit contributions and related funds. Such assumption does not limit the Department's rights or powers with respect to, or the responsibility of, third-party contractors, fiduciary organization partners, account holders, designated beneficiaries, or others.

(5) The program plan duties of a fiduciary organization include, but are not necessarily limited to:

(a) Complying with applicable law, including these rules as amended from time to time, and orders and other directives of the Department;

(b) Preparing, updating, and complying with an applicable program plan as authorized by the Department;

(c) Correlating with account holders and designated beneficiaries in preparing and effecting the preparation of appropriate personal development plans consistent with the program plan;

(d) Managing personal development plans including where relevant, but not limited to, counseling account holders and designated beneficiaries, providing financial and asset literacy training, and conducting required verification and compliance activities;

(e) Arranging for, coordinating with, remunerating, auditing, and otherwise ensuring compliance by appropriate third-party contractors and others;

(f) Marketing to, evaluating applications by, and signing individual development account agreements with appropriate potential account holders;

(g) Establishing agreements with appropriate financial institutions to operate IDA accounts;

(h) Marketing tax credits, soliciting contributions, and providing other funding as necessary to cover those and other program plan costs including, without limitation, the management of personal development programs and the matching of IDA deposits by account holders;

(i) Maintaining records with respect to all program plan activities in a manner satisfactory to the Department, and providing the Department access to such records as required by the Department;

(j) Providing annual reports of IDA activity acceptable to the Department within 90 days after the end of the fiscal year of the fiduciary organization;

(k) Providing such other informational reporting to the Department as the Department may require in the form and at the times required by the Department; and

(l) Fully and timely complying with all verification and compliance requirements of the Department.

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 315.271 & 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03

813-300-0050

Fiduciary Organization Selection of Account Holders and Designated Beneficiaries

(1) Each fiduciary organization must establish an application process for potential account holders and designated beneficiaries satisfactory to the Department. At a minimum, the application process must accomplish the following objectives:

(a) Verify the eligibility of each prospective account holder and of any prospective designated beneficiary;

(b) Assist each selected account holder and designated beneficiary, if any, to prepare an appropriate personal development plan;

(c) Execute an IDA with each selected account holder;

(d) Engage a financial organization for maintenance of appropriate IDA accounts; and,

(e) Assure the collection of other information necessary for appropriate record keeping and reporting requirements.

(2) Subject to the approval of the Department and the limitations of applicable law, each fiduciary organization may impose such other criteria and require such other information in the selection of account holders and designated beneficiaries as that fiduciary organization deems to be appropriate.

(3) Additional selection criteria may include, but are not limited to the following:

(a) The capacity and funding of the fiduciary organization to accommodate prospective account holders and designated beneficiaries;

(b) The availability of necessary or appropriate third-party contractors and other partners;

(c) The extent to which the income and net worth of the prospective account holders are lower than the income and net worth limitations established in ORS 458.670(5) and 458.680(2);

(d) The accuracy, substance, and completeness of submitted applications;

(e) Any identified ability or inability of the prospective account holder or the prospective designated beneficiary to fulfill the terms of an appropriate IDA and the corresponding personal development plan;

(f) The cost and feasibility of an appropriate personal development plan;

(g) Past experience with prospective account holders and designated beneficiaries; and

(h) Such other considerations as the Department may identify.

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 315.271 & 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03

813-300-0060

Fiduciary Organization Suspension or Termination of Account Holders

(1) Subject to these rules, fiduciary organizations, for cause, may suspend or terminate a person's status as an account holder or designated beneficiary and may suspend or terminate any related IDA and personal development plan.

(2) Factors that fiduciary organizations may consider as sufficient cause for any such suspension or termination include the following:

(a) If an account holder or designated beneficiary moves from the area where the personal development program is conducted or is otherwise unable to continue in the personal development program.

(b) The withdrawal of funds by an account holder from an account for other than a purpose approved by the fiduciary organization;

(c) The failure by an account holder to make a timely reimbursement to an account after an emergency withdrawal pursuant to ORS 458.685(2);

(d) A material misrepresentation or omission by the account holder or designated beneficiary to the fiduciary organization in the application or otherwise;

(e) A material failure by the account holder or designated beneficiary to comply with applicable law, these rules, orders or directives of the Department, the terms of the IDA or the terms of the personal development plan;

(f) Ineligibility of the account holder or designated beneficiary; and

(g) Failure by the account holder or designated beneficiary to cooperate reasonably with the fiduciary organization or its third-party contractors or other partners in the performance or evaluation of the personal development plan or in the performance, evaluation, or audit of the IDA and the funds related thereto.

(3) In conjunction with the termination of any person's status as an account holder based on factors identified above in Section 813-300-0060(2)(a), (b), or (c), all matching IDA deposits and all interest earned on such matching IDA deposits shall revert to the fiduciary organization.

(4) In conjunction with the termination of any person's status as an account holder or designated beneficiary based on other factors identified or allowed in section 813-300-0060(2), fiduciary organizations may rescind any right or interest of account holders in, and assume sole ownership of, any or all matching IDA deposits and the interest earned on such matching IDA deposits.

(5) Fiduciary organizations must provide thirty (30) days written notice delivered by mail to an account holder at his or her last known address, any designated beneficiary, at his or her last known address, receiving assistance through the account holder's personal development plan, and to the Department before suspending or terminating the person's status as an account holder. The notice must include a provision satisfactory to the Department advising the account holder of his or her right to obtain administrative review by the Department of any determination by the fiduciary organization to suspend or terminate his/her status as an account holder. The administrative review provision also must advise the account holder and any designated beneficiary receiving assistance through the account holder's personal development plan of their right to obtain administrative review by the Department of any determination by the fiduciary organization to suspend or terminate the related personal development plan or to rescind any right or interest of the account holder in, and to assume sole ownership of, any or all matching IDA deposits and the interest earned on such matching IDA deposits.

(6) A fiduciary organization may provide a shorter written notice of suspension or termination if the fiduciary organization identifies in the notice the exigent circumstances reasonably requiring such shorter notice period.

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 315.271 & 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03; OHCS 13-2007(Temp), f. & cert. ef. 10-2-07 thru 3-30-08; OHCS 2-2008, f. & cert. ef. 3-18-08

813-300-0070

Fiduciary Organization Funding

(1) Fiduciary organizations must solicit contributions and otherwise generate funding to finance their operations and to effectuate their program plan.

(2) Fiduciary organizations may apply to the Department for supplemental funding. Applications for supplemental funding must be in form, timing, and content satisfactory to the Department.

(3) The Department may provide supplemental funding and the conditions thereof in response to such applications, or on its own initiative, as the Department deems appropriate. In making supplemental funding determinations the Department may consider factors including, but not limited to the following:

(a) The financial need of the fiduciary organization;

(b) The progress of the fiduciary organization in implementing its program plan;

(c) Factors relevant to the Department's review of the fiduciary organization's application for authorization;

(d) The fiduciary organization's own fundraising efforts;

(e) The availability of Department funds for this purpose; and

(f) The need for services in the area addressed by the fiduciary organization.

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 315.271 & 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03

813-300-0080

Fiduciary Organization Use of Tax Credit Contributions and Related Funds

(1) Oregon individual development account tax credit contributions to fiduciary organizations, other contributions to fiduciary organizations specifically for their program plan, and any supplemental funds from the Department to fiduciary organizations shall be used by fiduciary organizations solely for reasonable and documented program plan purposes consistent with these rules.

(2) In addition to any other limitations on supplemental funds imposed by the Department when providing such supplemental funds to fiduciary organizations, the following limitations apply to the use of tax credit contributions and related funds:

(a) Fiduciary organizations only may expend tax credit contributions and related funds in a manner consistent with their budget as approved by the Department;

(b) Fiduciary organizations may expend a maximum of 2% of their received tax credit contributions for administering the solicitation of tax credit contributions;

(c) Fiduciary organizations may not expend supplemental funds for administering the solicitation of tax credit contributions;

(d) Fiduciary organizations may expend a maximum of 5% of tax credit contributions for administering and evaluating their program plan, unless an exception is granted by the Department.

(e) Fiduciary organizations may expend a maximum of 20% of tax credit contributions for program operating and delivery costs, including the costs of providing assistance to account holders and their beneficiaries to develop and fulfill personal development plans;

(f) Fiduciary organizations may expend tax credit contributions and related funds for appropriate matching of account holder IDA deposits as follows:

(A) Allowable matching IDA deposits by fiduciary organizations must equal at least $1, but not exceed $5, for each $1 of IDA deposits by the account holder;

(B) Matching IDA deposits must be placed in:

(i) A savings account with an approved financial institution jointly held by the account holder and the fiduciary organization and requiring the signatures of both for withdrawals;

(ii) A savings account with an approved financial institution that is controlled by the fiduciary organization and is separate from the savings account of the account holder; or

(iii) In the case of an account established for the purpose described in ORS 458.685(1)(c), a qualified tuition savings program account under 348.841 to 348.873, in which the fiduciary organization is the account owner as defined in 348.841.

(C) The aggregate maximum amount of matching IDA funds that a fiduciary organization may deposit with respect to a specific account holder shall not exceed more than $3,000 in a 12-month period; and

(D) The aggregate maximum amount of matching IDA funds that a fiduciary organization may deposit with respect to a specific account holder during the existence of that account holder's IDA shall not exceed $20,000.

(g) Supplemental funds not expended, obligated or deposited consistent with these rules within one year from the date that such supplemental funds are received from the Department shall be returned immediately to the Department; and,

(3) Reverted matching IDA deposits must be used by fiduciary organizations to make matching IDA deposits for eligible account holders consistent with these rules as soon as is reasonably practicable.

(4) A fiduciary organization that is the account owner of a qualified tuition savings program account:

(a) May make a qualified withdrawal only at the direction of the designated beneficiary and only after the qualified tuition savings program account of the account holder that was established for the designated beneficiary has been reduced to a balance of zero exclusively through qualified withdrawals by the designated beneficiary; and

(b) May make nonqualified withdrawals only if the qualified tuition savings program account of the account holder that was established for the designated beneficiary has a balance of less than $100 or if the account holder or designated beneficiary has granted permission to make the withdrawal. Moneys received by a fiduciary organization from such a nonqualified withdrawal must be used for program plan purposes.

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 315.271 & 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03; OHCS 13-2007(Temp), f. & cert. ef. 10-2-07 thru 3-30-08; OHCS 2-2008, f. & cert. ef. 3-18-08

813-300-0090

Fiduciary Financial Controls; Audit and Repayment Responsibilities

(1) Fiduciary organizations, third-party contractors and other program plan partners shall maintain appropriate financial controls, acceptable to the Department and using generally accepted accounting principles, in the receipt and expenditure of tax credit contributions and related funds.

(2) Fiduciary organizations by contract shall require third-party contractors and other program plan partners to maintain appropriate financial controls acceptable to the fiduciary organization and to the Department.

(3) Fiduciary organizations, third-party contractors and other program plan partners only shall charge reasonable and necessary costs to the program plan consistent with the approved program plan budget.

(4) All costs charged to the program plan by a fiduciary organization, third-party contractors, and other program plan partners shall be supported properly by vouchers and other records satisfactory to the Department that indicate in proper detail the nature and propriety of the costs.

(5) Fiduciary organizations, third-party contractors and other program plan partners shall cooperate fully with all audits of them by the fiduciary organization, the Department, the Office of the Secretary of State or the Department of Justice with respect to relevant program plans.

(6) Fiduciary organizations are responsible to the Department for the immediate repayment of all unused or improperly expended tax credit contributions and supplemental funds.

(7) Fiduciary organizations and any relevant third-party contractor or other program plan partner are jointly and severally responsible to the Department for the immediate repayment of all tax credit contributions and supplemental funds improperly retained or improperly expended by any such third-party contractor or other program plan partner of a fiduciary organization

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 315.271 & 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03

813-300-0100

Fiduciary Organization Records and Reporting Requirements

(1) Fiduciary organizations shall prepare and maintain appropriate, accurate and complete program plan record-keeping systems and records satisfactory to the Department. Such record-keeping systems also must cover and include records generated by third-party contractors and other program plan partners.

(2) A fiduciary organization must maintain separate files for each account holder that, at a minimum, includes the following records:

(a) Documentation of income eligibility;

(b) The personal development plan;

(c) The IDA;

(d) Records of all IDA deposits, withdrawals, and other financial information;

(e) Evidence of training received;

(f) Documentation of any determination with respect to the status of the account holder or any beneficiaries;

(g) Documentation of any exit interviews; and

(h) Any other information required by the Department.

(3) Fiduciary organizations shall maintain such program plan record-keeping systems and records at their principal place of business in Oregon.

(4) Fiduciary organizations shall maintain program plan records for a period of six (6) years from the date of completion or termination of each account holder's or designated beneficiary's personal development plan and the expiration of the IDA. The Department may require fiduciary organizations to maintain records for longer periods including, without limit, for unresolved audit matters.

(5) The Department, the Office of the Secretary of State, and the Department of Justice shall be permitted to inspect, copy, and audit any and all program plan records and take other action that to them seems appropriate in the conduct of such inspections or audits.

(6) Fiduciary organizations shall file quarterly reports with the Department in form, substance and timing acceptable to the Department.

(7) Quarterly reporting periods end on March 31, June 30, September 30, and December 31 of each calendar year. Fiduciary organizations shall deliver quarterly reports to the Department no later than 5:00 p.m. on the date determined by the Department. Reports shall be in a format approved by the Department.

(8) In addition to participating in data collection and reporting as required by the Department, quarterly and/or annual reports shall include, but are not limited to, the following:

(a) Summary demographic data and cumulative totals regarding current account holders;

(b) New account and graduate reports regarding account holders entering and exiting program; and

(c) A funds tracking report accounting for funds allocated to account holders, dispersed as match, for program delivery, for administration, and for funds held in reserve, in a format agreed upon with the Department;

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 315.271 & 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03; OHCS 13-2007(Temp), f. & cert. ef. 10-2-07 thru 3-30-08; OHCS 2-2008, f. & cert. ef. 3-18-08; OHCS 3-2010, f. & cert. ef. 1-7-10

813-300-0110

Account Holder and Beneficiary Responsibilities

(1) To be an account holder, eligible persons must apply to a fiduciary organization authorized by the Department and in a manner established by the fiduciary organization as approved by the Department.

(2) Persons selected to be account holders must execute an IDA with their fiduciary organization and, as necessary, with a financial institution, in form and content satisfactory to the Department before they may act as account holders.

(3) Account holders and beneficiaries at all times must comply with applicable law, these rules, applicable orders and directives of the Department and their fiduciary organization, the provisions of their IDA, and their personal development plan.

(4) Account holders at all times must be residents of the State of Oregon. When the account is opened, the applicant to become an account holder must be a member of a lower income household.

(5) Account holders, upon request by the Department or their fiduciary organization, and as otherwise required by the terms of their IDA, must provide evidence satisfactory to the Department and to their fiduciary organization that they and any beneficiaries qualify by residence, income, and age (if applicable) to be account holders or beneficiaries.

(6) Account holders, upon request by the Department or their fiduciary organization, and as otherwise required by the terms of their IDA, must provide evidence satisfactory to the Department and to their fiduciary organization that they and any beneficiaries are complying with the terms of their IDA and its associated personal development plan.

(7) Account holders and their beneficiaries must cooperate fully with the Department and their own fiduciary organization in any review or audit of the IDA, of their personal development plan, or of their eligibility.

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 315.271 & 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03

813-300-0120

Account Holder Use of Funds

(1) Account holders only may withdraw and use IDA deposits in a manner consistent with their IDA, the relevant personal development plan, these rules and any relevant directives of the Department.

(2) Account holders only may withdraw and use IDA deposits for the following purposes as approved by their fiduciary organization:

(a) For the acquisition of post-secondary education or job training;

(b) If the account holder has established the account for the benefit of a designated beneficiary, for the payment of extracurricular non-tuition expenses designed to prepare the designated beneficiary for post-secondary education or job training;

(c) To capitalize a small business;

(d) For the purchase of a primary residence;

(e) With respect to account holder deposits only, for an emergency as set forth in ORS 458.685(2)(a);

(f) If the account holder has established a qualified tuition savings program account under ORS 348.841 to 348.873 on behalf of a designated beneficiary, the establishment of an additional qualified tuition savings program account on behalf of the same designated beneficiary;

(g) Improvements, repairs or modifications necessary to make or keep the account holder's primary dwelling habitable, accessible, or visitable for the account holder or a household member. This does not include improvements, repairs, or modifications made to a rented primary dwelling to achieve or maintain a habitable condition for which ORS 90.320(1) places responsibility on the landlord;

(h) The purchase of equipment, technology, or specialized training required to become competitive in obtaining or maintaining employment or to start or maintain a business, as specified in the account holder's personal development plan.

(3) IDA deposits, including the interest earned thereon, withdrawn by the account holder for an emergency as set forth in ORS 458.685 and OAR 813-300-0120(2)(e) above, must be repaid by the account holder within 12 months.

(4) In addition to payment on the purchase price of a residence pursuant to OAR 813-300-0120(2)(d) above, appropriate account moneys may be used to pay any usual or reasonable settlement, financing or other closing costs with respect to such residence.

(5) Account holders may not use IDA deposits to purchase a primary residence if they have owned or held any interest in a residence during the three years prior to making the purchase for which they intend to use IDA deposits. This three year restriction shall not apply in the following:

(a) For displaced homemakers or other individuals who have lost homeownership as a result of divorce.

(b) For a tribal member who has an interest in trust land and still has rights to an allotment under the Dawes Act Public Law 280 and amended in 1891, the 1906 Burke Act and the 1910 Omnibus Act Statutes at Large 24, 388-91, NADP Document A1887, but the tribal member faces multiple ownership of his or her land status and cannot successfully achieve sole ownership in order to receive any equity or collateral from that allotment. If the tribal member solely owns a residence on land known as an allotment and has successfully received sole ownership including the receipt of title status report (TSR) through the Bureau of Indian Affairs, they may not use IDA deposits to purchase a primary residence. If the person can receive more than $2500 in equity or collateral of their allotment, the value over $2500 shall be included in their asset limit.

(6) In capitalizing a small business pursuant to OAR 813-300-0120(2)(c) above, IDA deposits may be used for capital, plant, equipment and inventory expenses or for working capital pursuant to a business plan approved by the fiduciary organization. To qualify for fiduciary organization approval, the business plan must have been developed by a financial institution, a nonprofit micro enterprise program or other qualified agent demonstrating business expertise. The business plan also must include a description of the services or goods to be sold, a marketing plan and projected financial statements.

(7) Account holders must repay moneys improperly taken from IDA deposits including the interest earned thereon, when required by their fiduciary organization or by the Department.

Stat. Auth.: ORS 456.555, 456.625 & 458.700
Stats. Implemented: ORS 458.670 - 458.700
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03; OHCS 9-2003, f. & cert. ef. 12-19-03; OHCS 13-2007(Temp), f. & cert. ef. 10-2-07 thru 3-30-08; OHCS 2-2008, f. & cert. ef. 3-18-08

813-300-0130

Voluntary Termination of a Fiduciary Organization

(1) Any fiduciary organization and the Department may terminate that fiduciary organization's program plan and its authorization as a fiduciary organization upon thirty (30) days notice by written mutual consent.

(2) In determining whether or not to provide its termination consent, the Department may consider factors including, but not limited to the following:

(a) The financial and organizational capacity of the fiduciary organization to continue;

(b) The impact of the termination upon account holders and designated beneficiaries;

(c) The past performance of the fiduciary organization;

(d) The current eligibility of the fiduciary organization;

(e) The ability and willingness of the fiduciary organization to transfer account holder IDAs and related personal development plans, and the management and funding of same, to other fiduciary organizations;

(f) The ability and willingness of the fiduciary organization to transfer tax credit contributions, related funds, and other moneys to other fiduciary organizations in support of the transfer of account holder IDAs and related personal development plans;

(g) The willingness of account holders and designated beneficiaries with respect to termination of the fiduciary organization; and

(h) Whether or not the fiduciary organization has delivered to the Department any unused tax credit contributions, related funds and any other moneys.

(3) The Department may condition its consent upon such terms and conditions as seems reasonable, including without limit, that the fiduciary organization continue to perform with respect to any or all existing IDAs.

Stat. Auth.: ORS 456.555, ORS 456.625, ORS 458.700.
Stats. Implemented: ORS 315.271, ORS 458.670 - ORS 458.700.
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03

813-300-0140

Financial Institutions

Financial Institutions shall secure and maintain IDA deposits in accordance with law and the terms of the applicable IDA.

Stat. Auth.: ORS 456.555, ORS 456.625, ORS 458.700.
Stats. Implemented: ORS 315.271, ORS 458.670 - ORS 458.700.
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03

813-300-0150

Tax Credit Contributor

(1) Contributors to an approved fiduciary organization may qualify for an Oregon IDA tax credit.

(2) The maximum contribution from a single taxpayer within a particular year that may qualify for an Oregon IDA tax credit is $100,000.

(3) The maximum amount of tax credit allowable to a single taxpayer within a particular year is $75,000.

(4) Contributions from contributors not utilizing an Oregon IDA tax credit may be eligible for a charitable deduction against taxable income.

(5) The Department makes no representation on whether or not specific contributions qualify for an Oregon IDA tax credit. In all cases, contributors are encouraged to seek professional advice to determine the actual tax ramifications of their contribution.

Stat. Auth.: ORS 456.555, ORS 456.625, ORS 458.700.
Stats. Implemented: ORS 315.271, ORS 458.670 - ORS 458.700.
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03

813-300-0160

Department Regulation and Enforcement

(1) The Department may limit, suspend, revoke or terminate its authorization of a fiduciary organization. In addition to, or in lieu of, such action, the Department may require the fiduciary organization to take appropriate remedial action including, without limitation, to complete any or all IDA's current at the time of revocation or termination, to return supplemental funds to the Department, to transfer contributions as required by the Department, and to meet such other requirements and submit to such audits and reviews as the Department deems appropriate.

(2) The Department may refuse to approve any proposed fiduciary organization action requiring such approval. The Department also may condition its approval of any proposed fiduciary organization action requiring such approval.

(3) The Department may require fiduciary organizations to terminate or revise contracts or other engagements with any financial institution, third-party contractor or other program plan partner.

(4) The Department may limit, suspend, revoke or terminate its authorization of a fiduciary organization. In addition to, or in lieu of, such action, the Department may require the fiduciary organization to take appropriate remedial action including, without limitation, to complete any or all IDA's current at the time of revocation or termination, to return supplemental funds to the Department, to transfer contributions as required by the Department, and to meet such other requirements and submit to such audits and reviews as the Department deems appropriate.

(5) The Department may refuse to approve any proposed fiduciary organization action requiring such approval. The Department also may condition its approval of any proposed fiduciary organization action requiring such approval.

(6) The Department may require fiduciary organizations to terminate or revise contracts or other engagements with any financial institution, third-party contractor or other program plan partner.

(7) The Department may require the termination of any individual development account. The Department may require the transfer of any individual development account, including related deposits, from one fiduciary organization to another or to such other fiduciary as the Department determines to be appropriate.

(8) The Department may audit any fiduciary organization, any third-party contractor, and any other program plan partner. The Department also may inspect and copy IDA program documents in the possession or under the control of such entities including, without limitation, any individual development account, any contract or other IDA program agreement, and any personal development plan.

(9) The Department may suspend, terminate or require modifications in personal development plans.

(10) The Department, on its own initiative or at the request of an aggrieved party, may review fiduciary organization decisions with respect to individual development accounts, including but not limited to decisions to withdraw matching funds from individual development accounts or to suspend or terminate matching deposits to deposits made by the account holder.

(11) The Department may suspend, overturn or modify fiduciary organization decisions with respect to individual development accounts including, but not limited to funding decisions.

(10) The Department, on its own initiative or at the request of any aggrieved party, may review other fiduciary organization decisions with respect to program plan matters including, without limitation, decisions made through third-party contractors and other program plan partners.

(11) The Department may suspend, overturn or modify fiduciary organization program plan decisions.

(12) The Department may limit the number of authorized fiduciary organizations eligible to collect tax credit contributions and may limit the amount of tax credit contributions that specific fiduciary organizations may receive in any particular time-period.

(13) The Department may take such other action to regulate and enforce compliance with the IDA program, including these rules, as the Department determines to be necessary or appropriate.

(14) Factors that the Department may consider in taking any regulatory or enforcement action under these rules may include, but are not limited to the following:

(a) Those factors identified in these rules for the authorization of fiduciary organizations;

(b) A person or entity's compliance with these rules and other relevant law;

(c) The efficient and effective operation of the IDA program;

(d) The integrity of account management; and

(e) The best interests of account holders and designated beneficiaries.

Stat. Auth.: ORS 456.555, ORS 456.625, ORS 458.700.
Stats. Implemented: ORS 315.271, ORS 458.670 - ORS 458.700.
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03

813-300-0170

Administrative Review

(1) Account holders and designated beneficiaries aggrieved by any decision of a fiduciary organization to suspend or terminate the account holder's IDA, any decision by the fiduciary organization to suspend or terminate a personal development plan, any decision by the fiduciary organization to withdraw matching IDA deposits, or any decision by the fiduciary organization requiring the account holder to repay withdrawn IDA deposits, may request administrative review by the Department.

(2) The request for administrative review must be in writing, stating the nature of the decision, the reasons why the aggrieved party disagrees with the decision, and the nature of the requested relief.

(3) The request for administrative review must be delivered to the Department within thirty (30) days from the date that the aggrieved party receives written notice of the decision by the fiduciary organization. The aggrieved party simultaneously shall provide a copy of the request for administrative review to the fiduciary organization.

(4) Upon receipt of an appropriate request for administrative review, the Department will make such investigation of the matter as it determines to be appropriate. In making any such investigation, the Department may require and receive from the parties or other participants in the program plan any additional information or require such other proceedings as it deems appropriate.

(5) The Department will provide its written determination on the request for administrative review following the completion of its investigation. The Department also may issue such preliminary orders as it deems appropriate pending the issuance of its written determination.

(6) In its written determination, or in any preliminary order, the Department may reverse, revise, stay, or approve the decision at issue made by the fiduciary organization.

(7) The Department also may enforce its written determinations and preliminary orders by such action as it deems appropriate.

Stat. Auth.: ORS 456.555, ORS 456.625, ORS 458.700.
Stats. Implemented: ORS 315.271, ORS 458.670 - ORS 458.700.
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03

813-300-0180

Waiver

The Department may waive or modify any requirements of OAR 813, division 300, unless such waiver or modification would violate applicable federal or state law.

Stat. Auth.: ORS 456.555, ORS 456.625, ORS 458.700.
Stats. Implemented: ORS 315.271, ORS 458.670 - ORS 458.700.
Hist.: OHCS 12-2002(Temp), f. & cert. ef. 10-8-02 thru 4-5-03; OHCS 1-2003, f. & cert. ef. 4-4-03

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