Bill Text: CA SB242 | 2023-2024 | Regular Session | Amended

California Senate Bill 242 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2024-09-30 - Chaptered by Secretary of State. Chapter 1010, Statutes of 2024. [SB242 Detail]

Download: California-2023-SB242-Amended.html

Amended IN Senate May 18, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 242

Introduced by Senator Skinner

January 25, 2023

An act to add Section 18997.56 to the Welfare and Institutions Code, relating to public social services.

LEGISLATIVE COUNSEL'S DIGEST

SB 242, as amended, Skinner. California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Program.

Existing law establishes the California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Program to provide a trust fund account to an eligible child, defined to include minor California residents who are specified dependents or wards under the jurisdiction of juvenile court in foster care with reunification services terminated by court order, or who have a parent, Indian custodian, or legal guardian who died due to COVID-19 during the federally declared COVID-19 public health emergency and meet the specified family household income limit. Under the program, all assets of the fund and moneys allocated to individual HOPE trust accounts shall be considered to be owned by the state until an eligible youth withdraws or transfers money from their HOPE trust account.

Existing law establishes various means-tested public social services programs administered by counties to provide eligible recipients with certain benefits, including, but not limited to, cash assistance under the California Work Opportunity and Responsibility to Kids (CalWORKs) program, nutrition assistance under the CalFresh program, and health care services under the Medi-Cal program.

This bill would, to the extent permitted by federal law, prohibit funds deposited and investment returns accrued in a HOPE trust fund account from being considered as income or assets when determining eligibility and benefit amount for any means-tested program until an eligible youth withdraws or transfers the funds from the HOPE trust fund account, as specified. The bill would make these provisions operative on July 1, 2024, or on the date that the State Department of Social Services notifies the Legislature that the Statewide Automated Welfare System can perform the necessary automation to implement these provisions or no automation is necessary, whichever date is later. To the extent this bill would expand county duties, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

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

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

SECTION 1.

(a) The Legislature finds and declares all of the following:

(1) According to the Public Policy Institute of California (PPIC), California is one of the most socioeconomically unequal states in the country, and inequality is at record levels.

(2) The COVID-19 pandemic has only served to increase inequality, and those who have fallen farthest behind are Black, Indigenous, Latino, and Asian-Pacific Islander children.

(3) According to “Hidden Pain: Children Who Lost a Parent or Caregiver to COVID-19 and What the Nation Can Do to Help Them,” a report released in May, 2022, over 32,500 children in California lost at least one parent or primary caregiver to COVID-19 and are left with significantly reduced financial support.

(4) In 2022, California passed legislation to establish and fund the largest existing baby bonds program in the nation, the California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Program, in order to create opportunities and hope for intergenerational wealth and asset building as one of the many strategies to reverse the state’s cruel level of inequality.

(5) One hundred million dollars in one-time funds will establish HOPE trust fund accounts that will grow over time, and $15 million dollars in ongoing funds will help to administer HOPE trust fund accounts.

(6) The HOPE Trust Account Program will be administered by the program board, which includes the Treasurer, with the support of an advisory workgroup.

(b) It is the intent of the Legislature to enact legislation that would amend the HOPE Trust Account Program to support the implementation of the program, including clarifying language that the accounts are exempt from consideration as income or assets in means-tested programs and shall not be subjected to a money judgment or Franchise Tax Board intercept.

SEC. 2.

Section 18997.56 is added to the Welfare and Institutions Code, to read:

18997.56.

(a) Notwithstanding any other law, and to the extent permitted by federal law, funds deposited and investment returns accrued in a HOPE trust fund account established pursuant to this chapter shall not be considered as income or assets when determining eligibility and benefit amount for any means-tested program, including, but not limited to, CalWORKs, CalFresh, General Assistance, Medi-Cal, Kinship Guardianship Assistance Payment (Kin-GAP), or Adoption Assistance Program (AAP), and Cash Assistance Program for Immigrants (CAPI), and any scholarships for public colleges and universities, including, but not limited to, Cal Grant awards, Chafee grant awards, Middle Class Scholarship Program awards, California College Promise Grants, California State University Educational Opportunity Program (EOP) grants, Community College Extended Opportunity Programs and Services (EOPS) grants, and grants from the University of California or California State University, until an eligible youth withdraws or transfer the funds from the HOPE trust fund account, at which point, the distribution of the funds shall be considered a lump-sum payment and the balance shall be counted to any extent that the balance of any savings account is counted as income or an asset in a program.

(b) Notwithstanding any other law or guidance, funds deposited and investment returns accrued in a HOPE trust fund account paid to an eligible youth shall not be subject to any money judgment or a Franchise Tax Board intercept.

(c) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this section by means of all-county letters or similar instructions from the department until regulations are adopted.
(d) This section shall become operative on July 1, 2024, or on the date that the department notifies the Legislature of either of the following, whichever is later:
(1) The Statewide Automated Welfare System can perform the necessary automation to implement this section.
(2) No automation in the Statewide Automated Welfare System is necessary to implement this section.

SEC. 3.

If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.