Mills signs Vitelli law on Family Development Account program oversight

Gov. Janet Mills signed legislation from Sen. Eloise Vitelli, D-Arrowsic, LD 1217 “An Act To Clarify the Oversight of the Family Development Account Program” into law on Friday.

The law moves administration of the Family Development Accounts (FDA) program from the Finance Authority of Maine to the University of Maine System.

“This new law makes a simple change in moving the FDA program to be managed by New Ventures under the umbrella of the University of Maine System,” said Sen. Vitelli. “UMaine and New Ventures are both in the business of encouraging savings and helping people meet higher education and workforce goals, so I know this will be a good new home for the FDA program.”

Within the University of Maine System, New Ventures Maine will do the direct work of managing the FDA program. Sen. Vitelli worked at New Ventures Maine for 39 years until her retirement last year.

FDAs are matched savings accounts for income-eligible individuals and families who want to save money to buy a home, pay for education or training, or start or expand a small business. Participating families open a savings account to be used toward their identified goal, and these savings will be matched upon withdrawal for approved purchases. Participants save up to $1,000 in their FDA, and the savings get matched 4:1, up to $4000. Savings can occur over as short a time as six months or as long as three years, depending on the person’s budget or goals.

LD 1217 — as with all public laws in Maine passed without an “emergency clause” — will take effect 90 days following the end of the legislative session. The Legislature is scheduled to adjourn on June 19.