Bill Text: CA AB2821 | 2021-2022 | Regular Session | Chaptered

California Assembly Bill 2821 (Prior Session Legislation)

Bill Title: California Kids Investment and Development Savings Program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-08-22 - Chaptered by Secretary of State - Chapter 164, Statutes of 2022. [AB2821 Detail]

Download: California-2021-AB2821-Chaptered.html

Assembly Bill No. 2821

CHAPTER 164

An act to amend Section 69996.6 of the Education Code, relating to postsecondary education, and declaring the urgency thereof, to take effect immediately.

[ Approved by Governor August 22, 2022. Filed with Secretary of State August 22, 2022. ]

LEGISLATIVE COUNSEL'S DIGEST

AB 2821, Nazarian. California Kids Investment and Development Savings Program.

Existing law establishes the California Kids Investment and Development Savings (KIDS) Program, under the administration of the Scholarshare Investment Board, for the purposes of expanding access to higher education through savings. Existing law establishes the California Kids Investment and Development Savings Program Fund in the State Treasury to serve as the initial repository of all moneys received from state and private sources for the KIDS Program, and continuously appropriates moneys in the fund to the board for the KIDS Program. Existing law requires moneys in the fund, subject to availability, to be deposited in KIDS Accounts, one designated for each California resident child born on or after a date to be determined by the board, as provided. Existing law requires the board to provide awards from these KIDS Accounts, as specified, for each recipient child’s qualified higher education expenses at an eligible institution of higher education. Existing law requires the board, on or before June 30, 2022, and annually thereafter, to report to the Department of Finance and the Legislature, information pertaining to the KIDS program’s implementation, as provided.

This bill would delay the initial reporting date by one year until June 30, 2023.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO

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

SECTION 1.

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 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.

(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.

(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.

(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.

SEC. 2.

This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

In order to ensure that the Scholarshare Investment Board has relevant data available to report before its reporting deadline, it is necessary that this act take effect immediately.