(1) A foster youth individual development account program is hereby established within the individual development account program established pursuant to RCW 43.31.460 for the purpose of facilitating the creation by sponsoring organizations of individual development accounts for foster youth.

(2) The department shall select sponsoring organizations to establish and monitor individual development accounts for foster youth from those entities with whom the department of social and health services contracts for independent living services for youth who are or have been dependents of the department of social and health services.

(3) An individual development account may be established by or on behalf of a foster youth to enable the individual to accumulate funds for the following purposes:

(a) The acquisition of postsecondary education or job training;

(b) Housing needs, including rent, security deposit, and utilities costs;

(c) The purchase of a computer if necessary for postsecondary education or job training;

(d) The purchase of a car if necessary for employment; and

(e) Payment of health insurance premiums.

(4) A foster youth participating in the program must contribute to an individual development account. The contributions may be derived from earned income or other income, as provided by the department. Other income shall include financial incentives for educational achievement provided by entities contracted with the department of social and health services for independent living services for youth who are or have been dependents of the department of social and health services.