Enrolled  August 29, 2024
Passed  IN  Senate  August 27, 2024
Passed  IN  Assembly  August 26, 2024
Amended  IN  Assembly  August 23, 2024
Amended  IN  Assembly  August 19, 2024
Amended  IN  Assembly  May 30, 2024
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 704.235 to the Code of Civil Procedure, to add Section 12419.3.4 to the Government Code, to add Section 19551.6 to the Revenue and Taxation Code, and to amend Sections 18997.51, 18997.52, and 18997.53 of, to amend, repeal, and add Section 11157 of, and to add Sections 18997.56, 18997.57, 18997.58, 18997.59, 18997.60, and 18997.61 to, the Welfare and Institutions Code, relating to public social services.


LEGISLATIVE COUNSEL'S DIGEST


SB 242, Skinner. California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Program.
Existing law, the California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Act, establishes a 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 the 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 are considered to be owned by the state until an eligible youth withdraws or transfers money from their HOPE trust account.
This bill would, among other things, require the Treasurer to verify the cause of death of the parent, Indian custodian, or legal guardian and to verify the minor’s family household income prior to the death of the parent, Indian custodian, or legal guardian once the Treasurer receives government-issued documents or a statement signed by a person who is eligible to do so under penalty of perjury that establishes the identity of the child and that the person whose death certificate was provided was the child’s parent, Indian custodian, or legal guardian. By expanding the crime of perjury, this bill would impose a state-mandated local program.
The bill would also state the intent of the Legislature that all eligible children will be automatically enrolled for a HOPE trust account to the extent possible, and would require the Treasurer to, in order to achieve this goal, collaborate with the State Department of Social Services and any other relevant governmental agencies to gather data to maximize participation in the HOPE Trust Account Program for eligible children and youth, as specified. Under the bill, individual records or source data associated with the establishment of a HOPE trust account would not be subject to disclosure under the California Public Records Act.
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 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 account, as specified. The bill would make these provisions operative on July 1, 2025, or on the date that the State Department of Social Services notifies the Legislature that the Statewide Automated Welfare System or the California Automated Response and Engagement System (CARES) can perform the necessary automation to implement these provisions, whichever date is later. The bill would also require a one-time lump-sum payment made from a HOPE trust account to be exempt from enforcement of a money judgment by levy without making a claim, as specified. To the extent that the bill would expand county duties, the bill would impose a state-mandated local program.
The bill would also authorize a program enrollee who is also an eligible youth to withdraw or transfer funds from their HOPE trust account on and after their 18th birthday, and would require the Treasurer to assist an eligible youth in transferring funds from their HOPE trust account to other specified accounts. The bill would require the Treasurer to design and disseminate information for parents, Indian custodians, and legal guardians of children and youth who are potentially eligible for the HOPE Trust Account Program to facilitate their enrollment in the program and the transfer of funds, as specified, and to annually submit an audited financial report on the operations of the program by August 1 to the Governor, the Controller, the California State Auditor, and the Legislature, as specified.
The bill would expand the composition of the California HOPE for Children Trust Account Program Board, as specified, and would make other changes to board-related provisions.
Existing law sets forth various provisions relating to the disclosure of certain information in the administration of taxes. Under existing law, any unwarranted disclosure or use of the information by the administering person or receiving agency is a misdemeanor. Under existing law, it is generally a misdemeanor for the Franchise Tax Board (FTB) or certain persons to disclose or make known in any manner information as to the amount of income or any particulars set forth or disclosed therein.
This bill would require the Treasurer to disclose to the FTB certain information for the sole purpose of determining eligibility under the California HOPE for Children Trust Account Act. The bill would require the FTB to disclose to the Treasurer the amounts of the federal adjusted gross income, as specified. The bill would prohibit the Treasurer from disclosing or using any information obtained from the FTB under these provisions except for this purpose. The bill would require the FTB to return or destroy all information received from the Treasurer after completing the exchange of information under these provisions. By expanding the scope of a crime under the above-described disclosure provisions, the bill would impose a state-mandated local program.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
This bill would incorporate additional changes to Section 11157 of the Welfare and Institutions Code proposed by AB 274 to be operative only if this bill and AB 274 are enacted and this bill is enacted last.
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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so 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.

 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 that the accounts shall not be subjected to a money judgment or Franchise Tax Board intercept.

SEC. 2.

 Section 704.235 is added to the Code of Civil Procedure, to read:

704.235.
 (a) A one-time lump-sum payment made from a HOPE trust account, as defined in subdivision (a) of Section 18997.51 of the Welfare and Institutions Code, shall be exempt without making a claim, except as provided in subdivision (b).
(b) A one-time lump-sum payment described in subdivision (a) is not exempt from a levy in connection with child support, spousal support, family support, or a criminal restitution.
(c) A financial institution that receives a payment described in subdivision (a) directly from the state shall treat the payment as exempt from levy if it is designated “HOPE trust account payment” or if the payment is otherwise sufficiently identified to inform the financial institution that the payment is a HOPE trust account payment.

SEC. 3.

 Section 12419.3.4 is added to the Government Code, to read:

12419.3.4.
 Notwithstanding any other provision of this article, the payments authorized pursuant to Chapter 16.1 (commencing with Section 18997.5) of Part 6 of Division 9 of the Welfare and Institutions Code shall not be used to offset any delinquent accounts.

SEC. 4.

 Section 19551.6 is added to the Revenue and Taxation Code, to read:

19551.6.
 (a) (1) Notwithstanding any other law, the Treasurer shall disclose to the Franchise Tax Board, through information-sharing agreements or data interfaces, information described in paragraph (2) for the sole purpose of determining eligibility under the California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Act (Chapter 16.1 (commencing with Section 18997.5) of Part 6 of Division 9 of the Welfare and Institutions Code).
(2) The information authorized to be disclosed pursuant to paragraph (1) is limited to information necessary to verify eligibility, including, but not limited to, name, individual taxpayer identification number (ITIN) or social security number, date of birth, and other information needed under the California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Act (Chapter 16.1 (commencing with Section 18997.5) of Part 6 of Division 9 of the Welfare and Institutions Code) to verify the income of individuals.
(b) (1) The Franchise Tax Board, after receipt of the information described in subdivision (a), shall disclose to the Treasurer, through information-sharing agreements or data interfaces, the amounts of the federal adjusted gross income as reported by the taxpayer to the Franchise Tax Board.
(2) The Franchise Tax Board shall only provide the information described in paragraph (1) if available in the records of the Franchise Tax Board and with respect to taxpayers for whom the Treasurer provided the information under subdivision (a).
(3) The Franchise Tax Board shall provide the information described in paragraph (1) to the Treasurer for the most recent and preceding taxable year that the Franchise Tax Board has information available.
(4) The Franchise Tax Board shall not disclose or provide any federal tax information.
(c) (1) The information provided to the Treasurer under this section is subject to Section 19542.
(2) The Treasurer, or any current or former officer, employee, or agent of the Treasurer, shall not disclose or use any information obtained from the Franchise Tax Board pursuant to this section except for the purpose described in subdivision (a).
(d) The Franchise Tax Board shall return or destroy all information received from the Treasurer after completing the exchange of information under this section.

SEC. 5.

 Section 11157 of the Welfare and Institutions Code is amended to read:

11157.
 (a) Notwithstanding Section 11008, all lump-sum income received by an applicant or recipient shall be regarded as income in the month received, except nonrecurring lump-sum social insurance payments, which shall include social security income, railroad retirement benefits, veteran’s benefits, workers’ compensation, and disability insurance.
(b) Except as otherwise provided in this part, for purposes of this chapter and Chapter 2 (commencing with Section 11200), “income” shall be deemed to be the same as applied under the Aid to Families with Dependent Children program on August 21, 1996, except that the following are exempt from consideration as income:
(1) Income that is received too infrequently to be reasonably anticipated, as exempted in federal Supplemental Nutrition Assistance Program (SNAP) regulations.
(2) Income from a college work-study program under Title IV of the federal Higher Education Act or Article 18 (commencing with Section 69950) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code or college work-study program, as established in the annual Budget Act, for individuals receiving aid under Chapter 2 (commencing with Section 11200).
(3) (A) Except as provided for in subparagraph (B), an award or scholarship provided by a public or private entity to or on behalf of a dependent child based on the child’s academic or extracurricular achievement or participation in a scholastic, educational, or extracurricular competition.
(B) For purposes of Chapter 2 (commencing with Section 11200), an award or scholarship provided by a public or private entity to or on behalf of a dependent child.
(c) (1) For purposes of Chapter 2 (commencing with Section 11200), any income or stipend paid by the United States Census Bureau, a governmental entity, or a nonprofit organization for temporary work related to the decennial census shall not be considered income.
(2) Paragraph (1) shall be retroactive and shall apply to any income or stipend paid by the United States Census Bureau, a governmental entity, or a nonprofit organization for temporary work related to the most recent decennial census.
(3) 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, interpret, or make specific this subdivision by means of all-county letters or similar instructions from the department until regulations are adopted. These all-county letters or similar written instructions shall have the same force and effect as regulations until the adoption of regulations.
(d) (1) Any federal pandemic unemployment compensation, as described under Subchapter 2 (commencing with Section 9021) of Chapter 116 of Title 15 of the United States Code, is exempt from consideration as income and resources for the purposes of determining initial and continued eligibility and grant amount for the CalWORKs program.
(2) The exemption described under paragraph (1) shall remain in effect so long as federal pandemic unemployment compensation is exempt as income for purposes of establishing eligibility for the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), pursuant to the federal Consolidated Appropriations Act of 2021 or any other law.
(e) (1) Notwithstanding any other law, for the purposes of this chapter and Chapter 2 (commencing with Section 11200), guaranteed income payments shall be exempt from consideration as income and resources.
(2) 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, interpret, or make specific this subdivision through all-county letters or similar instructions that shall have the same force and effect as regulations until regulations are adopted.
(f) This section shall become inoperative on July 1, 2025, or on the date that the department notifies the Legislature of either of the following, whichever is later, and as of January 1 of the following year, is repealed:
(1) The Statewide Automated Welfare System can perform the necessary automation to implement Section 11157, as added by the act that added this subdivision.
(2) The California Automated Response and Engagement System (CARES) can perform the necessary automation to implement Section 11157, as added by the act that added this subdivision.

SEC. 5.5.

 Section 11157 of the Welfare and Institutions Code is amended to read:

11157.
 (a) Notwithstanding Section 11008, all lump-sum income received by an applicant or recipient shall be regarded as income in the month received, except nonrecurring lump-sum social insurance payments, which shall include social security income, railroad retirement benefits, veteran’s benefits, workers’ compensation, and disability insurance.
(b) Except as otherwise provided in this part, for purposes of this chapter and Chapter 2 (commencing with Section 11200), “income” shall be deemed to be the same as applied under the Aid to Families with Dependent Children program on August 21, 1996, except that the following are exempt from consideration as income:
(1) Income that is received too infrequently to be reasonably anticipated, as exempted in federal Supplemental Nutrition Assistance Program (SNAP) regulations.
(2) Income from a college work-study program under Title IV of the federal Higher Education Act or Article 18 (commencing with Section 69950) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code or college work-study program, as established in the annual Budget Act, for individuals receiving aid under Chapter 2 (commencing with Section 11200).
(3) (A) Except as provided for in subparagraph (B), an award or scholarship provided by a public or private entity to or on behalf of a dependent child based on the child’s academic or extracurricular achievement or participation in a scholastic, educational, or extracurricular competition.
(B) For purposes of Chapter 2 (commencing with Section 11200), an award or scholarship provided by a public or private entity to or on behalf of a dependent child.
(c) For purposes of Chapter 2 (commencing with Section 11200), notwithstanding any other law, and to the extent permitted by federal law, any fellowship benefit that is not received monthly, and any grant, award, scholarship, or loan, that is provided to any assistance unit member shall be exempt from consideration as income for purposes of determining eligibility for benefits or calculating grant amounts pursuant to Chapter 2 (commencing with Section 11200). The funds described in this subdivision shall also be exempt as resources for purposes of determining eligibility for benefits or calculating grant amounts pursuant to Chapter 2 (commencing with Section 11200) for 12 months following the receipt of the funds.
(d) (1) For purposes of Chapter 2 (commencing with Section 11200), any income or stipend paid by the United States Census Bureau, a governmental entity, or a nonprofit organization for temporary work related to the decennial census shall not be considered income.
(2) Paragraph (1) shall be retroactive and shall apply to any income or stipend paid by the United States Census Bureau, a governmental entity, or a nonprofit organization for temporary work related to the most recent decennial census.
(3) 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, interpret, or make specific this subdivision by means of all-county letters or similar instructions from the department until regulations are adopted. These all-county letters or similar written instructions shall have the same force and effect as regulations until the adoption of regulations.
(e) (1) Any federal pandemic unemployment compensation, as described under Subchapter 2 (commencing with Section 9021) of Chapter 116 of Title 15 of the United States Code, is exempt from consideration as income and resources for the purposes of determining initial and continued eligibility and grant amount for the CalWORKs program.
(2) The exemption described under paragraph (1) shall remain in effect so long as federal pandemic unemployment compensation is exempt as income for purposes of establishing eligibility for the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), pursuant to the federal Consolidated Appropriations Act of 2021 or any other law.
(f) (1) Notwithstanding any other law, for the purposes of this chapter and Chapter 2 (commencing with Section 11200), guaranteed income payments shall be exempt from consideration as income and resources.
(2) 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, interpret, or make specific this subdivision through all-county letters or similar instructions that shall have the same force and effect as regulations until regulations are adopted.
(g) This section shall become inoperative on July 1, 2025, or on the date that the department notifies the Legislature of either of the following, whichever is later, and as of January 1 of the following year, is repealed:
(1) The Statewide Automated Welfare System can perform the necessary automation to implement Section 11157, as added by the act that added this subdivision.
(2) The California Automated Response and Engagement System (CARES) can perform the necessary automation to implement Section 11157, as added by the act that added this subdivision.

SEC. 6.

 Section 11157 is added to the Welfare and Institutions Code, to read:

11157.
 (a) Notwithstanding Section 11008, all lump-sum income received by an applicant or recipient shall be regarded as income in the month received, except nonrecurring lump-sum social insurance payments, which shall include social security income, railroad retirement benefits, veteran’s benefits, workers’ compensation, and disability insurance.
(b) Except as otherwise provided in this part, for purposes of this chapter and Chapter 2 (commencing with Section 11200), “income” shall be deemed to be the same as applied under the Aid to Families with Dependent Children program on August 21, 1996, except that the following are exempt from consideration as income:
(1) Income that is received too infrequently to be reasonably anticipated, as exempted in federal Supplemental Nutrition Assistance Program (SNAP) regulations.
(2) Income from a college work-study program under Title IV of the federal Higher Education Act or Article 18 (commencing with Section 69950) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code or college work-study program, as established in the annual Budget Act, for individuals receiving aid under Chapter 2 (commencing with Section 11200).
(3) (A) Except as provided for in subparagraph (B), an award or scholarship provided by a public or private entity to or on behalf of a dependent child based on the child’s academic or extracurricular achievement or participation in a scholastic, educational, or extracurricular competition.
(B) For purposes of Chapter 2 (commencing with Section 11200), an award or scholarship provided by a public or private entity to or on behalf of a dependent child.
(c) (1) For purposes of Chapter 2 (commencing with Section 11200), any income or stipend paid by the United States Census Bureau, a governmental entity, or a nonprofit organization for temporary work related to the decennial census shall not be considered income.
(2) Paragraph (1) shall be retroactive and shall apply to any income or stipend paid by the United States Census Bureau, a governmental entity, or a nonprofit organization for temporary work related to the most recent decennial census.
(3) 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, interpret, or make specific this subdivision by means of all-county letters or similar instructions from the department until regulations are adopted. These all-county letters or similar written instructions shall have the same force and effect as regulations until the adoption of regulations.
(d) (1) Any federal pandemic unemployment compensation, as described under Subchapter 2 (commencing with Section 9021) of Chapter 116 of Title 15 of the United States Code, is exempt from consideration as income and resources for the purposes of determining initial and continued eligibility and grant amount for the CalWORKs program.
(2) The exemption described under paragraph (1) shall remain in effect so long as federal pandemic unemployment compensation is exempt as income for purposes of establishing eligibility for the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), pursuant to the federal Consolidated Appropriations Act of 2021 or any other law.
(e) (1) Notwithstanding any other law, for the purposes of this chapter and Chapter 2 (commencing with Section 11200), guaranteed income payments shall be exempt from consideration as income and resources.
(2) 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, interpret, or make specific this subdivision through all-county letters or similar instructions that shall have the same force and effect as regulations until regulations are adopted.
(f) For purposes of this chapter and Chapter 2 (commencing with Section 11200), any funds deposited and investment returns accrued in a HOPE trust account established pursuant to Chapter 16.1 (commencing with Section 18997.5) of Part 6 shall be exempt from consideration as income and resources pursuant to Section 18997.56.
(g) This section shall become operative on July 1, 2025, 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) The California Automated Response and Engagement System (CARES) can perform the necessary automation to implement this section.

SEC. 6.5.

 Section 11157 is added to the Welfare and Institutions Code, to read:

11157.
 (a) Notwithstanding Section 11008, all lump-sum income received by an applicant or recipient shall be regarded as income in the month received, except nonrecurring lump-sum social insurance payments, which shall include social security income, railroad retirement benefits, veteran’s benefits, workers’ compensation, and disability insurance.
(b) Except as otherwise provided in this part, for purposes of this chapter and Chapter 2 (commencing with Section 11200), “income” shall be deemed to be the same as applied under the Aid to Families with Dependent Children program on August 21, 1996, except that the following are exempt from consideration as income:
(1) Income that is received too infrequently to be reasonably anticipated, as exempted in federal Supplemental Nutrition Assistance Program (SNAP) regulations.
(2) Income from a college work-study program under Title IV of the federal Higher Education Act or Article 18 (commencing with Section 69950) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code or college work-study program, as established in the annual Budget Act, for individuals receiving aid under Chapter 2 (commencing with Section 11200).
(3) (A) Except as provided for in subparagraph (B), an award or scholarship provided by a public or private entity to or on behalf of a dependent child based on the child’s academic or extracurricular achievement or participation in a scholastic, educational, or extracurricular competition.
(B) For purposes of Chapter 2 (commencing with Section 11200), an award or scholarship provided by a public or private entity to or on behalf of a dependent child.
(c) For purposes of Chapter 2 (commencing with Section 11200), notwithstanding any other law, and to the extent permitted by federal law, any fellowship benefit that is not received monthly, and any grant, award, scholarship, or loan, that is provided to any assistance unit member shall be exempt from consideration as income for purposes of determining eligibility for benefits or calculating grant amounts pursuant to Chapter 2 (commencing with Section 11200). The funds described in this subdivision shall also be exempt as resources for purposes of determining eligibility for benefits or calculating grant amounts pursuant to Chapter 2 (commencing with Section 11200) for 12 months following the receipt of the funds.
(d) (1) For purposes of Chapter 2 (commencing with Section 11200), any income or stipend paid by the United States Census Bureau, a governmental entity, or a nonprofit organization for temporary work related to the decennial census shall not be considered income.
(2) Paragraph (1) shall be retroactive and shall apply to any income or stipend paid by the United States Census Bureau, a governmental entity, or a nonprofit organization for temporary work related to the most recent decennial census.
(3) 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, interpret, or make specific this subdivision by means of all-county letters or similar instructions from the department until regulations are adopted. These all-county letters or similar written instructions shall have the same force and effect as regulations until the adoption of regulations.
(e) (1) Any federal pandemic unemployment compensation, as described under Subchapter 2 (commencing with Section 9021) of Chapter 116 of Title 15 of the United States Code, is exempt from consideration as income and resources for the purposes of determining initial and continued eligibility and grant amount for the CalWORKs program.
(2) The exemption described under paragraph (1) shall remain in effect so long as federal pandemic unemployment compensation is exempt as income for purposes of establishing eligibility for the CalFresh program (Chapter 10 (commencing with Section 18900) of Part 6), pursuant to the federal Consolidated Appropriations Act of 2021 or any other law.
(f) (1) Notwithstanding any other law, for the purposes of this chapter and Chapter 2 (commencing with Section 11200), guaranteed income payments shall be exempt from consideration as income and resources.
(2) 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, interpret, or make specific this subdivision through all-county letters or similar instructions that shall have the same force and effect as regulations until regulations are adopted.
(g) For purposes of this chapter and Chapter 2 (commencing with Section 11200), any funds deposited and investment returns accrued in a HOPE trust account established pursuant to Chapter 16.1 (commencing with Section 18997.5) of Part 6 shall be exempt from consideration as income and resources pursuant to Section 18997.56.
(h) This section shall become operative on July 1, 2025, 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) The California Automated Response and Engagement System (CARES) can perform the necessary automation to implement this section.

SEC. 7.

 Section 18997.51 of the Welfare and Institutions Code is amended to read:

18997.51.
 For purposes of this chapter, the following definitions shall apply:
(a) “Account,” “trust account,” or “HOPE trust account,” means the California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account in the name of an eligible child or eligible youth.
(b) “Board” means the California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Program Board established pursuant to Section 18997.52.
(c) “Department” means the State Department of Social Services.
(d) “Eligible child” means a minor resident of California who is under 18 years of age, is not emancipated from their parent, Indian custodian, or legal guardian, and meets one of the following qualifications:
(1) (A) They reside in California and their parent, Indian custodian, or legal guardian died during the federally declared COVID-19 public health emergency, and the cause of death for the parent, Indian custodian, or legal guardian is listed as COVID-19 on their death certificate or they died as a medically recognized consequence of having long-term COVID-19, and the minor’s family household income, considering the income prior to the death of the parent, Indian custodian, or legal guardian, is at or below the income that would make the child eligible for Medi-Cal benefits under Chapter 7 (commencing with Section 14000) of Part 3. For purposes of this paragraph, “family household income” is limited to the incomes of parents, Indian custodians, or legal guardians, and “federal poverty level” means the poverty guidelines updated periodically in the Federal Register by the United States Department of Health and Human Services under the authority of Section 9902(2) of Title 42 of the United States Code.
(B) The Treasurer shall verify the cause of death of the parent, Indian custodian, or legal guardian once they receive either of the following:
(i) A death certificate that lists the cause of death as COVID-19.
(ii) A death certificate that lists the cause of death as a medically recognized consequence of having long-term COVID-19 and documentation that the person was diagnosed or was in the process of being diagnosed with long-term COVID-19.
(C) The Treasurer shall verify the minor’s family household income prior to the death of the parent, Indian custodian, or legal guardian once they receive either of the following:
(i) Government-issued documents that establish the identity of the child and that the person whose death certificate was provided pursuant to subparagraph (B) was their parent, Indian custodian, or legal guardian with whom the child resided.
(ii) A statement signed by a person who is eligible to do so under penalty of perjury that establishes the identity of the child and that the person whose death certificate was provided pursuant to subparagraph (B) was the child’s parent, Indian custodian, or legal guardian with whom the child resided. The Treasurer’s office, in consultation with the board, shall establish a process to challenge a statement submitted pursuant to this clause.
(2) (A) A foster child who resides in California, or is a California resident who is placed out of state by a juvenile or tribal court, and meets both of the following:
(i) The child has been adjudged a dependent child of the juvenile court on the grounds that the child is a person described by Section 300, or the child has been adjudged a ward of the juvenile court on the grounds that the child is a person described by Section 601 or 602, or the child is a dependent child of the court of an Indian tribe, consortium of tribes, or tribal organization who is the subject of a petition filed in the tribal court pursuant to the tribal court’s jurisdiction in accordance with the tribe’s law and the tribe has notified the department or the HOPE Trust Account Program about the child’s status as a dependent child under the tribal court. The department shall not require an Indian tribe, consortium of tribes, tribal organization, or tribal court representative to notify the department of any child who is a dependent of the tribal court.
(ii) The child meets one of the following:
(I) The child is subject to a foster care order, has been in foster care for at least 18 months, and reunification services have been terminated by an order of a juvenile or tribal court.
(II) The child is subject to a foster care order after 16 years of age, and reunification services have been terminated by an order of a juvenile or tribal court.
(B) Notwithstanding clause (ii) of subparagraph (A), if the child reunifies with their parent, Indian custodian, or legal guardian, is adopted, enters into a tribal customary adoption, or is placed into a legal guardianship, at any point in time subsequent to meeting the qualification specified in clause (i) of subparagraph (A), the child shall remain an eligible child and program enrollee and shall be able to access their HOPE trust account, but shall no longer be eligible for annual contributions effective 12 months following the date of reunification, adoption, or legal guardianship, or until the child reaches 18 years of age, whichever is sooner.
(e) “Eligible youth” means a program enrollee for whom a HOPE trust account was established and who is now eligible to withdraw or transfer funds from their HOPE trust account.
(f) “Fund” means the California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Fund created pursuant to Section 18997.53.
(g) “HOPE Trust Account Program” or “program” means the California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Program established pursuant to this chapter.
(h) “Program enrollee” means an eligible child who has been enrolled in the program and an eligible youth who was enrolled as an eligible child in the program and has not terminated their participation.

SEC. 8.

 Section 18997.52 of the Welfare and Institutions Code is amended to read:

18997.52.
 (a) (1) There is hereby created within state government the California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account Program Board, which shall consist of 11 members, as follows:
(A) The Treasurer, or their designee, who shall serve as the chair.
(B) The Director of Finance, or their designee.
(C) The Controller, or their designee.
(D) An individual with expertise in poverty alleviation and the racial wealth gap appointed by the Senate Committee on Rules.
(E) An individual with investment expertise appointed by the Speaker of the Assembly.
(F) An individual with expertise on financial empowerment and consumer protection appointed by the Governor.
(G) A public member who has experienced childhood poverty appointed by the Governor.
(H) A public member who is 18 to 26 years of age, inclusive, and who was previously or is currently a foster youth with at least 18 months spent in the foster care system appointed by the Assembly.
(I) A public member who is 18 to 26 years of age, inclusive, and who has lost an immediate family member to death caused by or as a consequence of COVID-19 or long-term COVID-19, and has experienced poverty appointed by the Senate.
(J) Two additional nonvoting members appointed by the Governor.
(2) Members of the board appointed by the Governor, the Senate Committee on Rules, and the Speaker of the Assembly shall serve at the pleasure of the appointing authority.
(b) All members of the board shall serve without compensation. Members of the board shall be reimbursed for necessary travel expenses incurred in connection with their board duties.
(c) Board members and other staff of the board shall not do any of the following:
(1) Directly or indirectly have any interest in the making of any investment made for the program, or in the gains or profits accruing from any investment made for the program.
(2) Borrow any funds or deposits of the HOPE trust accounts, or use those funds or deposits in any manner, for themselves or as an agent or partner of others.
(3) Become an endorser, surety, or obligor on investments by the board.
(d) The board and staff, including contracted administrators and consultants, shall discharge their duties as fiduciaries with respect to the HOPE trust accounts solely in the interest of the program enrollees as follows:
(1) For the exclusive purposes of providing benefits to program enrollees and defraying reasonable expenses of administering the program.
(2) By investing with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims.
(e) The board, subject to its authority and fiduciary duty, shall administer the program and the funds appropriated for the program in alignment with the intent of the Legislature to create opportunities, economic autonomy, and hope, and to promote wealth and asset building for an eligible child and eligible youth to address California’s record levels of inequality.
(f) The HOPE trust accounts are an instrumentality of the state. Any security issued, managed, or invested by the board within the HOPE trust accounts on behalf of a program enrollee shall be exempt from Sections 25110, 25120, and 25130 of the Corporations Code.
(g) To achieve the functions specified in this section, the board shall have the power and authority to do all of the following:
(1) Make and enter into contracts necessary for the administration of the program.
(2) Adopt a seal and change and amend it from time to time.
(3) Cause moneys in the HOPE trust accounts to be held and invested and reinvested.
(4) (A) Accept any grants, gifts, legislative appropriation, and other moneys from the state, any unit of federal, state, or local government, or any other person, firm, partnership, philanthropic entity, or corporation for deposit to the HOPE Trust Account Fund.
(B) The board shall provide a way for grants, gifts, appropriations, or other moneys to the HOPE Trust Account Program to be made in any amount and with the ability to have the funds targeted to specific subgroups, as defined by the entity giving, granting, or appropriating the funds, provided that they are not limited in such a way that would conflict with the intent of the Legislature in establishing the program.
(5) The Treasurer shall, on behalf of the board, appoint an executive director, who shall not be a member of the board and who shall serve at the pleasure of the Treasurer. The Treasurer shall determine the duties of the executive director and other staff, as appropriate, and set their compensation. The board may authorize the executive director to enter into contracts on behalf of the board or conduct any business necessary for the efficient operation of the board.
(6) Make provisions for the payment of costs of administration and operation of the program.
(7) Employ staff.
(8) Retain and contract with private financial institutions, other financial and service providers, consultants, actuaries, counsel, auditors, third-party administrators, and other professionals, as necessary.
(9) Procure insurance against any loss in connection with the property, assets, or activities of the trust.
(10) Procure insurance indemnifying each member of the board from personal loss or liability resulting from a member’s action or inaction as a member of the board.
(11) Cause expenses incurred to initiate, implement, maintain, and administer the program to be paid from deposits to, or investment returns or assets of, the program or arrangements established under the program, to the extent permitted under state and federal law.
(12) Carry out the duties and obligations of the program pursuant to this chapter and exercise any and all other powers as appropriate for the effectuation of the purposes, objectives, and provisions of this chapter pertaining to the program.
(h) The board may adopt regulations to implement this chapter consistent with 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 adoption, amendment, repeal, or readoption of a regulation authorized by this section is deemed to address an emergency, for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the board is hereby exempted for this purpose from the requirements of subdivision (b) of Section 11346.1 of the Government Code.

SEC. 9.

 Section 18997.53 of the Welfare and Institutions Code is amended to read:

18997.53.
 (a) The California Hope, Opportunity, Perseverance, and Empowerment (HOPE) for Children Trust Account 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 of 2021 (Public Law 117-2), moneys in the fund shall be continuously appropriated, without regard to fiscal years, to the HOPE Trust Account Program Board and the Treasurer for implementation of the program.
(b) (1) The Treasurer may do both of the following:
(A) Invest moneys in the fund that are not required for its current needs in the eligible securities specified in Section 16430 of the Government Code.
(B) Deposit moneys in the fund for investment in the Surplus Money Investment Fund pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code.
(2) Notwithstanding Section 16305.7 of the Government Code, all interest or other increment resulting from the investment or deposit of moneys from the fund shall be deposited in the fund. Moneys in the fund shall not be subject to transfer to any other funds pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except to the Surplus Money Investment Fund.
(c) (1) Moneys in the fund shall be used to establish HOPE trust accounts for an eligible child and to provide initial deposits and any future deposits into the accounts. The amount of these deposits shall be determined by the HOPE Trust Account Program Board and may increase over time to address increased costs of living or research that suggests that the goals of the program are better met with larger deposits.
(2) With the approval of the HOPE Trust Account Program Board, the Treasurer may accept contributions of funds to existing trust accounts and the creation of new trust accounts from any federal, state, local, or philanthropic source to increase the amount of individual trust accounts for youth eligible pursuant to this chapter or to expand youth eligible for the program. These funds may target a subpopulation of youth or youth within a specific geographic region.
(d) Of the total moneys continuously appropriated for purposes of the program, up to 5 percent shall be available to administer the HOPE Trust Account Program, including the costs associated with convening the advisory committee and reporting to the Legislature. The board shall submit a written annual expenditure plan detailing proposed uses of funding to the Department of Finance and the Joint Legislative Budget Committee by October 1 of every year. To the extent the board’s administrative costs will or are projected to exceed 5 percent, the board shall submit a written request, in addition to the annual expenditure plan, for the release of additional funding for administrative costs and the necessity to exceed 5 percent to the Department of Finance and the Joint Legislative Budget Committee. The Department of Finance may provide funds for administration of the program that exceed 5 percent, not sooner than 30 days after notifying, in writing, the Joint Legislative Budget Committee, or any lesser time determined by the chairperson of the joint committee, or the chairperson’s designee.
(e) 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.
(f) To the extent allowed under federal law, because it shall be considered an asset of the state until withdrawn or transferred by an eligible youth, all of the following apply to funds deposited and investment returns accrued in a HOPE trust account established pursuant to this chapter:
(1) It is nontransferable to any person other than the eligible youth, and only as permitted pursuant to this chapter.
(2) It shall not be pledged as collateral for any loan.
(3) It may be subject to a lien or levy.

SEC. 10.

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

18997.56.
 (a) (1) Notwithstanding any other law, and to the extent permitted by federal law, funds deposited and investment returns accrued in a HOPE trust 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 transfers 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.
(2) To the extent permitted by federal statute, a one-time lump sum withdrawal made from a HOPE trust account shall be considered as exempt property for all programs established under this code.
(b) 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.
(c) This section shall become operative on July 1, 2025, 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) The California Automated Response and Engagement System (CARES) can perform the necessary automation to implement this section.

SEC. 11.

 Section 18997.57 is added to the Welfare and Institutions Code, to read:

18997.57.
 (a) The Treasurer shall, in consultation with the board, design and disseminate information for parents, Indian custodians, and legal guardians of children and youth who are potentially eligible for the HOPE Trust Account Program to facilitate their enrollment in the program and the transfer of funds.
(b) The information disseminated pursuant to this section shall include, but not be limited to, all of the following:
(1) The mechanics of how appropriations are made to the account and how to track the balance of the account.
(2) The process and timeline for withdrawing the funds from a HOPE trust account.
(3) The process and timeline for transferring the funds to an ABLE account, as defined in Section 4875, an account opened under the CalSavers Retirement Savings Program pursuant to Title 21 (commencing with Section 100000) of the Government Code, or an account opened under the California Kids Investment and Development Savings Program pursuant to Article 19.5 (commencing with Section 69996) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code.
(4) How to obtain additional information on the program.
(c) The information disseminated pursuant to this section shall include a method for the parent, Indian custodian, or legal guardian of an eligible child or an eligible youth to acknowledge that they have read all of the disclosures and understand their content.
(d) The information disseminated pursuant to this section with the disclosure form shall be made available to parents, Indian custodians, or legal guardians of eligible children and to eligible youth by the program and supplied to all parents, Indian custodians, or legal guardians of eligible children and to eligible youth gaining access to their HOPE trust account.
(e) The information disseminated pursuant to this section with the disclosure form shall be supplied to parents, Indian custodians, or legal guardians of eligible children and to eligible youth when the program is initially launched.
(f) If the Treasurer deems it necessary, the Treasurer may establish an enrollment period for eligible children who are not automatically enrolled, if this information is provided in the information disseminated pursuant to this section.

SEC. 12.

 Section 18997.58 is added to the Welfare and Institutions Code, to read:

18997.58.
 (a) It is the intent of the Legislature that all eligible children will be automatically enrolled for a HOPE trust account to the extent possible. To achieve this goal, the Treasurer shall do both of the following:
(1) (A) Collaborate with the State Department of Social Services pursuant to a data-sharing agreement, and any other relevant governmental agencies or departments, to gather data to maximize participation in the HOPE Trust Account Program for eligible children and youth. For purposes of this subdivision, the information received by the Treasurer shall only be utilized to the extent allowable by federal and state law, regulation, and guidance and only for the purposes of facilitating enrollment in the HOPE Trust Account Program.
(B) Notwithstanding Sections 827 and 10850, the State Department of Social Services shall provide the Treasurer with information necessary to verify foster care status for the sole purpose of determining eligibility for a HOPE trust account.
(C) This paragraph shall be implemented only to the extent permitted by federal law.
(D) The State Department of Social Services shall seek any federal approvals that it deems necessary to implement this paragraph.
(2) Collaborate with the State Department of Public Health, and any other relevant governmental agencies or research institutions, to identify parents, Indian custodians, or legal guardians of children who have lost a parent, Indian custodian, or legal guardian as a result of a COVID-19-related death for the purpose of conducting outreach to those families about the HOPE Trust Account Program.
(b) The Treasurer 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).
(c) Notwithstanding any other law, individual records or source data associated with the establishment of a HOPE trust account pursuant to this chapter 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).
(d) Notwithstanding any other law, the Treasurer may share HOPE trust account data with the United States Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation (ASPE), and California research institutes supported by ASPE, including, but not limited to, the Center for Poverty and Inequality Research at the University of California, Davis, and the Stanford Center on Poverty and Inequality at Stanford University, to conduct and report on research related to the impact of the HOPE trust accounts. The Treasurer may only share data pursuant to this subdivision to the extent that it also complies with federal and state laws to protect individual privacy in accordance with subdivision (b).

SEC. 13.

 Section 18997.59 is added to the Welfare and Institutions Code, to read:

18997.59.
 (a) (1) Except as provided in paragraph (2), a program enrollee who is also an eligible youth may, on and after their 18th birthday, withdraw or transfer funds from their HOPE trust account.
(2) A program enrollee who is a nonminor dependent, as defined in subdivision (v) of Section 11400, may withdraw or transfer funds from their HOPE trust account on and after their 18th birthday, or upon exit from foster care if exiting prior to 21 years of age.
(b) The Treasurer shall assist a nonminor dependent, as defined in subdivision (v) of Section 11400, who is eligible for an ABLE account, as defined in Section 4875, and their parent, Indian custodian, or legal guardian, in transferring funds from their HOPE trust account to the ABLE account.
(c) The Treasurer shall assist eligible youth in transferring funds from their HOPE trust account to an account opened under the CalSavers Retirement Savings Program pursuant to Title 21 (commencing with Section 100000) of the Government Code, an account opened under the California Kids Investment and Development Savings Program pursuant to Article 19.5 (commencing with Section 69996) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, or an account opened under the CalAccount Program pursuant to Title 21.1 (commencing with Section 100100) of the Government Code, once that other account is established.
(d) The Treasurer shall maintain a publicly available internet website where program enrollees and, as determined appropriate by a policy set by the Treasurer in consultation with the board, their parents, Indian custodians, or legal guardians, may have password-protected online access to view information about the HOPE trust account’s growth and value, and eligible youth may be connected to banking services and financial coaching and financial literacy resources made available through the Department of Financial Protection and Innovation.

SEC. 14.

 Section 18997.60 is added to the Welfare and Institutions Code, to read:

18997.60.
 (a) The Treasurer shall annually submit an audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of the program by August 1 to the Governor, the Controller, the California State Auditor, and the Legislature. The annual audited financial report shall be prepared by an independent certified public accountant, and shall include, but not be limited to, direct and indirect costs attributable to the use of outside consultants, independent contractors, and any other persons who are not state employees.
(b) The annual audited financial report shall be supplemented by all of the following information prepared by the Treasurer:
(1) Any studies or evaluations prepared in the preceding year.
(2) A summary of the benefits provided by the program, including the number of participants in the trust.
(3) Any other information that is relevant in order to make a full, fair, and effective disclosure of the operations of the program.
(c) A report to be submitted to the Legislature pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 15.

 Section 18997.61 is added to the Welfare and Institutions Code, to read:

18997.61.
 The state shall not have any liability for the payment of the HOPE trust account benefits earned by program participants pursuant to this chapter. The state, and any of the funds of the state, shall have no obligation for payment of the benefits arising from this chapter.

SEC. 16.

 The Legislature finds and declares that Section 12 of this act, which adds Section 18997.58 to the Welfare and Institutions Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
To protect the confidential information of children who may be eligible for a HOPE trust account and their parents, Indian custodians, or legal guardians, it is necessary for this act to limit access to that information.

SEC. 17.

 Sections 5.5 and 6.5 of this bill incorporate amendments to Section 11157 of the Welfare and Institutions Code proposed by both this bill and Assembly Bill 274. Those sections of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2025, (2) this bill amends, repeals, and adds Section 11157 of the Welfare and Institutions Code and Assembly Bill 274 amends Section 11157 of the Welfare and Institutions Code, and (3) this bill is enacted after Assembly Bill 274, in which case Sections 5 and 6 of this bill shall not become operative.

SEC. 18.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
However, if the Commission on State Mandates determines that this act contains other 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.