Bill Text: CA AB2508 | 2023-2024 | Regular Session | Amended

California Assembly Bill 2508

Bill Title: Student financial aid: California Kids Investment and Development Savings (KIDS) Program: foster youth.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-24 - From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 6. Noes 0.) (April 23). Re-referred to Com. on APPR. [AB2508 Detail]

Download: California-2023-AB2508-Amended.html

Amended IN Assembly April 01, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2508

Introduced by Assembly Member McCarty

February 13, 2024

An act to amend ~~Section~~ Sections 69996.5, 69996.6, and 69996.9 of the Education Code, relating to student financial aid.

LEGISLATIVE COUNSEL'S DIGEST

AB 2508, as amended, McCarty. Student financial aid: California Kids Investment and Development Savings (KIDS) Program: foster youth.

Existing law establishes the California Kids Investment and Development Savings (KIDS) Program, under the administration of the Scholarshare Investment Board (board), for purposes of expanding access to higher education through savings. Existing law, for the 2021–22 fiscal year, requires a KIDS Account to be established for all unduplicated pupils enrolled at a school district, public charter school, state special school, or other local educational agency, if one has not already been established for them, and requires the account to receive an enhanced deposit of $500. Existing law, for the 2021–22 fiscal year, requires an eligible pupil who is also a foster youth, as defined, to receive an additional enhanced deposit of $500.

Existing law, commencing with the 2022–23 fiscal year, requires a KIDS Account to be opened for all unduplicated pupils enrolled at a school district, public charter school, state special school, or other local educational agency when the pupil is enrolled in first grade, if an account has not already been established for them, and requires the account to receive an enhanced deposit of $500. Existing law, commencing with the 2022–23 fiscal year, requires an eligible first grade pupil who is also a foster youth, as defined, to receive an additional enhanced deposit of $500.

This bill, commencing with the 2025–26 fiscal year and subject to an appropriation by the Legislature, would (1) require a KIDS Account to be opened for a pupil who is a foster youth and is enrolled in any of grades 1 to 12, inclusive, at a school district, public charter school, state special school, or other local educational agency, if an account has not already been established for them, and would require the account to receive a one-time enhanced deposit of $500, and (2) authorize an additional enhanced deposit of $500 for those foster youth who did not previously receive the above-described deposits for unduplicated pupils in the 2021–22 fiscal year and unduplicated pupils in the first grade commencing with the 2022–23 fiscal year, as provided. The bill would limit the one-time enhanced ~~deposit~~ deposits provided by the bill to the KIDS Accounts of those foster youth that had not already received one of the above-described enhanced deposits for foster youth. The bill would, commencing with the 2025–26 fiscal year, require the board to collaborate with the State Department of Education to establish a process to enable a foster youth pupil who met any of the above-described eligibility criteria related to enhanced deposits for foster youth, but who did not receive the applicable enhanced deposit due to a failure in the identification process, to subsequently receive the enhanced deposit.

Existing law authorizes the board to consider marketing the program to California residents, as provided, and requires the board to annually report to the Department of Finance and the Legislature information pertaining to the program’s implementation, as provided.
This bill would require any marketing efforts developed by the board to include specific strategies to reach foster youth, and would require the annual reports to include specified information about foster pupils or homeless youth, as provided.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 69996.5 of the Education Code is amended to read:

69996.5.

The board may consider marketing the program to California residents. The board may include in its marketing efforts information designed to educate California residents about the benefits of saving for higher education and information to help them decide the combination of savings strategies that may be appropriate for them. Any marketing efforts developed by the board shall include specific strategies to reach foster youth.

SEC. 2.

Section 69996.6 of the Education Code is amended to read:

69996.6.

(a) The California Kids Investment and Development Savings Program Fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, except for moneys derived from the federal American Rescue Plan Act, moneys in the fund shall be continuously appropriated, without regard to fiscal years, to the board for the program. The fund shall be the initial repository of all appropriations, gifts, or other financial assets received by the board in connection with operation of the program.

(b) (1) Subject to available funding, the program shall be implemented on or before July 1, 2022. The board may establish an implementation timeline for the program based on available funding. If the board does not secure adequate funds to implement the program before July 2, 2022, program implementation may be delayed while the board makes good faith efforts to secure necessary funding. The board may accept gifts, grants, awards, matching contributions, interest income, and appropriations from individuals, businesses, state and local governmental entities, and third-party sources for the program on terms the board deems advisable.

(2) Before the program is implemented and throughout the program’s operation, the board may authorize a county, city, nonprofit organization, or any other entity operating a local child savings account program to provide input to the program established pursuant to this article. The input may include, but is not limited to, information on any of the following:

(A) Infrastructure and systems development.

(B) Outreach and coordination with local child savings account programs.

(D) Administrative fees and caps.

(E) Contribution strategies.

(F) Program accessibility, including language, identification, and banking access.

(c) On or before June 30, 2023, and on or before September 30 annually thereafter, the board shall report to the Department of Finance and the Legislature, pursuant to Section 9795 of the Government Code, information pertaining to the program’s implementation. The report shall include, at a minimum, all of the following:

(1) Detailed program expenditure information, including the amount of funds expended to establish KIDS Accounts pursuant to this article in the previous five fiscal years. This shall include the number of pupils who received augmented payments based on status as foster youth or homeless pupils.

(2) The number of KIDS Accounts opened and state and nonstate contributions made to KIDS Accounts.

(3) Information about how parents were notified pursuant to subdivision (b) of Section 69996.3.

(4) The number of parents or legal guardians who engage with KIDS Accounts by verifying receipt of information provided to them pursuant to paragraph (2) of subdivision (b) of Section 69996.3, establishing separate accounts pursuant to Article 19 (commencing with Section 69980), or engaging with KIDS Accounts by other means approved by the board. This shall include a disaggregation of the number of parents or legal guardians of pupils who received augmented payments based on status as foster youth or homeless pupils who engage with KIDS Accounts.

(5) A description of the board’s efforts and success in soliciting philanthropic or nonstate money to support the program.

(6) A description of the board’s marketing of the ~~program.~~ program, including any efforts to reach foster youth.

(7) The rate of investment return earned by the money authorized by this article in the previous five fiscal years.

(8) To the extent that information is available and can be disclosed without providing any opportunity to associate the information with particular individuals, the board shall include information on the ethnicity, gender, and family income of account recipients.

(9) Recommendations for improving the program.

SECTION 1.SEC. 3.

Section 69996.9 of the Education Code is amended to read:

69996.9.

(a) (1) For the 2021–22 fiscal year, through the program, all of the following shall occur:

(A) Each pupil enrolled in grades 1 to 12, inclusive, on the State Department of Education’s official census day in the 2021–22 fiscal year who meets the requirements to be considered an unduplicated pupil for purposes of paragraph (2) of subdivision (b) of Section 2574 or paragraph (1) of subdivision (b) of Section 42238.02 and who is enrolled at a school district, public charter school, state special school, or other local educational agency, shall have a KIDS Account established on the pupil’s behalf, unless the pupil’s KIDS Account has already been established pursuant to Section 69996.3, and shall receive an enhanced deposit into the pupil’s KIDS Account in the amount of five hundred dollars ($500).

(B) In addition to the amount allocated pursuant to subparagraph (A), the KIDS Account of each eligible pupil who is also a foster youth, as defined under subdivision (b) of Section 42238.01, shall receive an enhanced deposit of an additional five hundred dollars ($500).

(C) In addition to the amount allocated pursuant to subparagraphs (A) and (B), the KIDS Account of each eligible pupil who is also a homeless pupil meeting the definition of “homeless children and youths” in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)) shall receive an enhanced deposit of an additional five hundred dollars ($500).

(2) Commencing with the 2022–23 fiscal year, through the program, all of the following shall occur:

(A) Each pupil who meets all of the following conditions shall have a KIDS Account opened on their behalf, unless their account has already been established pursuant to Section 69996.3, and shall receive an enhanced deposit into their KIDS Account in the amount of five hundred dollars ($500):

(i) The pupil is enrolled in first grade on the State Department of Education’s official census day in the applicable fiscal year.

(ii) The pupil meets the requirements to be considered an unduplicated pupil for purposes of paragraph (2) of subdivision (b) of Section 2574 or paragraph (1) of subdivision (b) of Section 42238.02.

(iii) The pupil is enrolled at a school district, public charter school, state special school, or other local educational agency.

(B) In addition to the amount allocated pursuant to subparagraph (A), the KIDS Account of each pupil who meets the requirements of subparagraph (A) and is also a foster youth, as defined under subdivision (b) of Section 42238.01, shall receive an enhanced deposit of an additional five hundred dollars ($500).

(C) In addition to the amount allocated pursuant to subparagraphs (A) and (B), the KIDS Account of each pupil who meets the requirements of subparagraph (A) and is also a homeless pupil under the definition of “homeless children and youths” in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)) shall receive an enhanced deposit of an additional five hundred dollars ($500).

(D) For pupils for whom a KIDS Account has already been established pursuant to Section 69996.3 and who are also eligible for an enhanced deposit pursuant to this paragraph, the enhanced deposit shall be deposited in the KIDS Account in which funding for that pupil is currently held.

(3) Commencing with the 2025–26 fiscal year, and subject to an appropriation by the Legislature, through the program, both of the following shall occur:

(A) (i) Each pupil who is a foster youth, as defined under subdivision (b) of Section 42238.01, and is enrolled in any of grades 1 to 12, inclusive, at a school district, public charter school, state special school, or other local educational agency, shall have a KIDS Account opened on their behalf, unless their account has already been established pursuant to Section 69996.3, and shall receive an enhanced deposit of an additional five hundred dollars ($500).

(ii) Each foster youth pupil described in clause (i) who did not previously receive a deposit pursuant to either subparagraph (A) of paragraph (1) of subdivision (a), or subparagraph (A) of paragraph (2) of subdivision (a), shall further receive an enhanced deposit of five hundred dollars ($500) in addition to the deposit pursuant to clause (i).
~~(ii)~~

(iii) Upon receiving an enhanced deposit pursuant to clause (i) or (ii) in any fiscal year, a pupil shall not be eligible for an enhanced deposit pursuant to clause (i) or (ii) in any subsequent fiscal year.

(B) For pupils for whom a KIDS Account has already been established pursuant to Section 69996.3 and who are also eligible for an enhanced deposit pursuant to this paragraph, the enhanced deposit shall be deposited in the KIDS Account in which funding for that pupil is currently held.

(4) (A) A pupil who receives an enhanced deposit into their KIDS Account pursuant to paragraph (1) or (2) may only have one enhanced deposit made into their existing or newly established KIDS Account pursuant to this article, except as provided for in subparagraph (B). A pupil shall not have more than one KIDS Account established for them pursuant to this article.

~~(5)~~

(B) Notwithstanding subparagraph (A), a pupil who receives an enhanced deposit into their KIDS Account pursuant to subparagraph (A) or (C) of paragraph (1), or a pupil who receives an enhanced deposit pursuant to subparagraph (A) or (C) of paragraph (2), may also receive ~~a single enhanced deposit~~ enhanced deposits pursuant to paragraph (3).

(b) (1) The board shall collaborate with the State Department of Education, or other relevant governmental agencies, to identify eligible pupils for the purpose of establishing KIDS Accounts or making an enhanced deposit into existing KIDS Accounts pursuant to this section. To the extent feasible, the State Department of Education shall annually provide necessary data using census day data in a secure manner for the board to fulfill its obligations pursuant to this article, including, but not necessarily limited to, eligible pupils’ names, pupil identification, birth dates, grade levels, contact information of parents or legal guardians, and eligibility information. For purposes of this subdivision, the information received by the board shall be considered necessary to facilitate the establishment or enhancement of KIDS Accounts, or the establishment of a notification process for parents or legal guardians of eligible pupils.

(2) Commencing with the 2025–26 fiscal year, the board shall collaborate with the State Department of Education to establish a process to enable a foster youth pupil who met the eligibility criteria to receive an enhanced deposit into their KIDS Account pursuant to subparagraph (B) of paragraph (1) of subdivision (a), subparagraph (B) of paragraph (2) of subdivision (a), or paragraph (3) of subdivision (a), but who did not receive this enhanced deposit due to a failure in the identification process, to subsequently receive the enhanced deposit.
~~(2)~~

(3) The board shall comply with federal and state laws to protect individual privacy, including, but not limited to, the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code) and all of the following federal statutes:

(A) The Family Educational Rights and Privacy Act of 1974 (Public Law 93-380, as amended).

(B) The Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191, as amended).

~~(3)~~

(4) Notwithstanding any other law, individual records or source data associated with the establishment of a KIDS Account pursuant to this article shall not be subject to disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).

(c) The Legislature finds and declares that undocumented persons are eligible for KIDS Accounts within the meaning of subsection (d) of Section 1621 of Title 8 of the United States Code.

(d) It is the intent of the Legislature to appropriate state funding in the annual Budget Act to support the establishment of a KIDS Account for any eligible pupil who meets, or could meet in a future year, the requirements to be exempt from nonresident tuition pursuant to subdivision (a) of Section 68130.5.

(e) (1) For the 2023–24 and 2024–25 fiscal years, the board shall partner with the Los Angeles Unified School District and the Riverside County Office of Education, including the 23 school districts in the County of Riverside, to explore ways to increase participation in the KIDS Program.

(2) As permissible under federal and state data privacy and data security laws, the board shall provide the local educational agencies specified in paragraph (1) with the statewide student identifiers of pupils within their respective jurisdictions who have not yet engaged with the KIDS Account established on their behalf commencing with the 2021–22 fiscal year. The board shall provide data at least three times per year to the extent feasible. Upon receipt of this data, the local educational agencies shall be responsible for complying with all applicable federal and state data privacy and data security laws relating to pupil record information.

(3) The board shall comply with federal and state laws to protect individual privacy, including, but not limited to, the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code) and all of the following federal statutes:

(A) The Family Educational Rights and Privacy Act of 1974 (Public Law 93-380, as amended).

(B) The Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191, as amended).

(4) (A) On or before September 30, 2025, the board, in collaboration with the local educational agencies specified in paragraph (1), shall submit a report to the Department of Finance and the Legislature, pursuant to Section 9795 of the Government Code. The report shall include, at a minimum, all of the following:

(i) The number of KIDS Program participants within the jurisdictions of the partnering local educational agencies that have registered on the program’s online portal and the number that have linked their KIDS Account to a Scholarshare 529 account.

(ii) The number of KIDS Program participants within the jurisdictions of the partnering local educational agencies that have requested a distribution of funds for qualified higher education expenses and the total amount of those payments.

(iii) A comparison of the rates specified in clauses (i) and (ii) with the rates of KIDS Program participants statewide.

(iv) As provided by the partnering local educational agencies, a description of the outreach strategies they implemented that were aimed at increasing participation in the KIDS Program, along with any information available on the direct impact of each of those strategies.

(v) Recommendations for improving KIDS Program structure and outreach in collaboration with local educational agencies.

(B) The board may include this information in its annual report on the KIDS Program pursuant to subdivision (c) of Section 69996.6.

(5) This subdivision shall become inoperative on July 1, 2025.