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| 1 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1076Introduced by Assembly Member AddisFebruary 20, 2025 An act to amend Section 69996.3 of the Education Code, to amend Section 19304 of the Revenue and Taxation Code, and to amend Section 4877 of the Welfare and Institutions Code, relating to Qualified ABLE Program, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGESTAB 1076, as introduced, Addis. Qualified ABLE Program: CalABLE accounts: funding.(1) Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified.Existing law establishes the Qualified ABLE Program for purposes of implementing the federal ABLE Act in this state, and creates the California ABLE Program Trust with the purposes, powers, and duties of the trust to be vested in and exercised by the California ABLE Act Board. Existing law requires the board to segregate the moneys coming into the ABLE program trust into 2 funds: the program fund, which is continuously appropriated, for specified purposes of the act, and the administrative fund, which is available upon appropriation by the Legislature for administration of the act. Existing law requires all moneys paid by designated beneficiaries or eligible individuals in connection with ABLE accounts to be deposited, as received, into the program fund, promptly invested, and accounted for separately. This bill would authorize the California ABLE Act Board to additionally accept grants, gifts, appropriations, and other moneys from a philanthropic entity, and would specify that the program can receive legislative appropriations. The bill would authorize the board to delegate specific amounts of grants, gifts, legislative appropriations, or other moneys into the administrative fund or the program fund at its discretion, and would allow the board to use those moneys to encourage eligible individuals to create an ABLE account or maximize account use, including through offering financial incentives in an amount determined by the board. The bill would authorize the board to adopt eligibility criteria for individuals to receive financial incentives, and would require the financial incentives be provided directly to the designated beneficiary or their authorized legal representative. By authorizing new uses of moneys in a continuously appropriated fund, the bill would make an appropriation.(2) Existing law requires the Franchise Tax Board to include, on a taxpayers form instructions for filing a return, information about the ability of a taxpayer to directly deposit a portion of their refund into the Golden State Scholarshare College Savings Trust, as specified.This bill would additionally require the Franchise Tax Board to include, on a taxpayers form instructions for filing a return, information about the ability of a taxpayer to directly deposit a portion of their refund into the California ABLE Program Trust.(3) Existing law establishes the California Kids Investment and Development Savings (KIDS) Program, under the administration of the Scholarshare Investment Board, for purposes of expanding access to higher education through savings.This bill would authorize the Scholarshare Investment Board to establish a process to allow a beneficiary, to the extent permitted under law, to transfer moneys designated for the beneficiary in a KIDS Account into a qualifying ABLE account. Digest Key Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 69996.3 of the Education Code is amended to read:69996.3. (a) (1) Each child born on or after a date determined by the board pursuant to paragraph (2) who is a California resident at the time of birth is eligible for the program.(2) The date designated by the board for which eligibility commences shall be no later than July 1, 2022.(b) No later than 90 days after a birth certificate is registered for a child described in subdivision (a), the State Department of Public Health shall provide the board with identifiable birth data for the child in a file format as defined by the board. The birth data shall include the childs name and birth date and the name and contact information of each parent of the child, including the parents street address and, if provided to the department, the parents mobile telephone number and email address. In addition, upon request by the board, the department shall include, in the birth data it provides to the board, information collected pursuant to subparagraph (C) of paragraph (2) of subdivision (a) of Section 102426 of the Health and Safety Code. The department may provide additional identifiable birth data to the board, upon request, and upon a determination by the State Registrar, in consultation with the board, that the data is necessary for administration of the program. To the extent permitted by state and federal law, the department shall provide amended birth record information of a child to the board in order to assist the board in verifying a legal name change of the child, and any other information necessary, for the administration of the program. The department is not required to provide the board amended birth record information of a child that would reveal information that was sealed by statute or court order. The birth data is confidential and shall not be disclosed except as necessary for the program. No more than 90 days after receiving the birth data from the department, the board shall notify at least one parent of each eligible child about the program. The notification shall include information on all of the following:(1) How the parent may opt out of the program.(2) The KIDS Account opened for the child pursuant to subdivision (f).(3) How the parent may establish a separate account pursuant to Article 19 (commencing with Section 69980) and additional financial incentives provided pursuant to that article.(c) The board shall make a childs designated balance in a KIDS Account viewable by the childs parent or legal guardian through a secured internet link.(d) The board shall establish rules and regulations for a program recipient child, and the childs parents or legal guardians, to be notified of the moneys deposited and accrued in the childs KIDS Account, and rules and regulations regarding the establishment and operation of program components, including, but not limited to, the claims process, necessary documentation, deadlines for the claims, an appeals procedure, and any forfeiture procedures. A KIDS Account recipient child and each of the childs parents or legal guardians shall be informed of the establishment of the childs KIDS Account, provided information on how the parent or legal guardian may establish a separate account pursuant to Article 19 (commencing with Section 69980), and provided information on opportunities for financial incentives provided pursuant to that article.(e) The board shall translate program notifications and information provided pursuant to subdivisions (b) to (d), inclusive, into languages pursuant to Section 7295.2 of the Government Code.(f) Upon appropriation by the Legislature, the board shall establish one or more accounts and shall make a separately accounted-for seed deposit from the fund into a KIDS Account established within an account in an amount determined by the board. Each seed deposit shall be designated for a particular child for whom the board receives birth data pursuant to subdivision (b), if no parent or legal guardian has opted that child out of the program. Moneys in a KIDS Account designated for a child, including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be used for the purpose of providing awards for qualified higher education expenses associated with the attendance of the child at an eligible institution of higher education. Before the 202324 fiscal year, each seed deposit shall be at least twenty-five dollars ($25). Commencing with the 202324 fiscal year, each seed deposit shall be at least one hundred dollars ($100). The board may provide additional financial incentives designated for a child into a KIDS Account if the parent or legal guardian of the child engages with the KIDS Account by verifying receipt of information provided pursuant to paragraph (2) of subdivision (b), establishing a separate account pursuant to Article 19 (commencing with Section 69980), or engaging with the KIDS Account by other means approved by the board.(g) Upon the student self-certifying that they are enrolled at an institution of higher education and that they have resided in the state for at least one year immediately preceding the payment of qualified higher education expenses on the students behalf, the board shall make a payment to that institution in an amount determined by the student or their parent or legal guardian, which may include the total or a partial amount of the seed deposit, enhanced deposit, if applicable, and any additional financial incentives designated for the child pursuant to subdivision (f), plus any investment earnings attributed to that amount since the date of that deposit as calculated by the board, for qualified higher education expenses associated with the childs attendance at that institution. If the child has no account balance with the institution, the institution may distribute funds received for the child pursuant to this subdivision directly to the child for the purpose of paying the childs qualified higher education expenses.(h) Subject to available money in the fund, the board may provide additional incentives from the fund for children participating in the program, including, but not limited to, incentives targeting low-income households.(i) (1) Subject to available funding, a parent or legal guardian, residing in California, of a child who meets the criteria in paragraph (2) may apply to the board to enroll the child into the program. Subject to available funding, the enrollee shall be eligible for any incentives described in subdivision (h), as applicable, but is not eligible for a seed deposit.(2) The child is a current California resident under six years of age who was both of the following:(A) Born on or after the date designated by the board for which eligibility commences.(B) Not a California resident at the time of birth.(j) (1) A KIDS Account established pursuant to this article, and its investment earnings, shall remain assets of, and owned by, the state until used for the payment of qualified higher education expenses at an institution of higher education, and funds shall remain invested until they are used for the purposes authorized by this article or until the recipient achieves 26 years of age, whichever occurs first. If a beneficiary does not use any portion, or all, of the moneys intended for the beneficiary in a KIDS Account for a qualified higher education expense for any reason, including the death or disability of the beneficiary, before the beneficiary turns 26 years of age, all contributions made for the beneficiary into the KIDS Account and any earnings from those moneys shall be forfeited and deposited into the fund for the program.(2) Notwithstanding paragraph (1), subject to available funding, the board may establish an appeal process to allow a beneficiary to use the moneys designated for the beneficiary in a KIDS Account after the beneficiary turns 26 years of age.(3) The board may establish a process to allow a beneficiary, to the extent permitted under federal law, to transfer moneys designated for the beneficiary in a KIDS Account into a qualifying ABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code.(3)(4) Moneys, less applicable penalties, collected pursuant to Section 529 of the Internal Revenue Code not used within the time period described in paragraph (1) shall revert to the fund after the payment of any amount determined to be due to the federal government as a result of the reversion.(4)(5) All contributions made into a KIDS Account for a child who has opted out of the program pursuant to subdivision (b), including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be forfeited and deposited into the fund for the program in a timely manner.(k) The board shall encourage each parent and legal guardian of a beneficiary, including each parent and legal guardian of a child who applies to enroll the child into the program as a beneficiary pursuant to subdivision (i), to establish a separate account pursuant to Article 19 (commencing with Section 69980). The board shall provide assistance on how to establish the separate account.(l) The board may use up to 5 percent of state appropriations provided for purposes of the program for administrative costs. Unless otherwise specified in the annual Budget Act, this subdivision shall not apply to any one-time or ongoing local assistance funds first appropriated in support of the program beginning in the 202122 fiscal year.(m) It is the intent of the Legislature that both of the following occur:(1) The State Department of Public Health and the board share the information described in subdivision (b) in a manner that promotes data privacy and security.(2) The State Department of Public Health and the board enter into memoranda of understanding or participation agreements for data sharing purposes, as necessary, for the implementation and operation of this article.SEC. 2. Section 19304 of the Revenue and Taxation Code is amended to read:19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust. Trust or into the California ABLE Program Trust.(b) The Scholarshare Investment Board shall provide the Franchise Tax Board with a description of the Golden State Scholarshare College Savings Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c) The California ABLE Act Board shall provide the Franchise Tax Board with a description of the California ABLE Program Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c)(d) The Franchise Tax Board shall revise the taxpayer form instructions in the most cost-effective manner.(d)(e) For purposes of this section, Golden State Scholarshare College Savings Trust has the meaning set forth in subdivision (e) of Section 69980 of the Education Code.(f) For purposes of this section, California ABLE Program Trust has the meaning set forth in Section 4875 of the Welfare and Institutions Code.SEC. 3. Section 4877 of the Welfare and Institutions Code is amended to read:4877. (a) There is hereby created an instrumentality of the State of California to be known as the California ABLE Program Trust.(b) The purposes, powers, and duties of the California ABLE Program Trust are vested in, and shall be exercised by, the board.(c) The board, in the capacity of trustee, shall have the power and authority to do all of the following:(1) Sue and be sued.(2) (A) Make and enter into contracts necessary for the administration of the ABLE program trust, and engage personnel, including consultants, actuaries, managers, counsel, and auditors, as necessary for the purpose of rendering professional, managerial, and technical assistance and advice.(B) Subdivision (a) of Section 10365.5 of the Public Contract Code shall not apply to a contract with a program consultant for the qualified ABLE program. Any contract with a program consultant for the qualified ABLE program that would have been prohibited by that subdivision shall be publicly disclosed in a manner specified by the board prior to entering into the contract.(3) Adopt a corporate seal and change and amend it from time to time.(4) Cause moneys in the program fund to be held and invested and reinvested.(5) (A) Accept any grants, gifts, legislative appropriations, and other moneys from any unit of federal, state, or local government or any other person, firm, partnership, philanthropic entity, or corporation for deposit to the administrative fund or the program fund.(B) The board may delegate, to the extent permitted under federal law, specific amounts of grants, gifts, legislative appropriations, or other moneys to be divided or wholly deposited into the administrative fund or the program fund accordingly. The board may also target specific subgroups of eligible individuals provided that they are not limited in such a way that would conflict with the intent of the Legislature in establishing the program or other applicable law.(C) Grants, gifts, legislative appropriations, and other moneys may be used, to the extent permitted under federal law, to encourage eligible individuals to create an account or maximize account use, including financial incentives deposited into accounts and efforts to raise awareness about the program. The board may partner with other public, private, or nonprofit entities to facilitate or administer such moneys.(i) The board may adopt eligibility criteria for individuals to receive financial incentives in accordance with this subparagraph. Eligibility criteria may include, but is not limited to, opening a new account, depositing money into an account, establishing a reoccurring deposit, participating in financial literacy or other education opportunities, or being a state resident.(ii) Financial incentives shall be provided directly to the designated beneficiary or their authorized legal representative that meets the eligibility criteria, as determined by the board.(iii) The amount of any financial incentives shall be at the discretion of the board. Specific financial incentive amounts shall be communicated to the public and shall be applied equally to the designated beneficiaries identified as eligible for each specific financial incentive opportunity. Information including eligibility and actions needed to earn financial incentives shall be posted on the program internet website.(6) Enter into agreements with designated beneficiaries or eligible individuals to establish and maintain an ABLE account.(7) Make provisions for the payment of costs of administration and operation of the ABLE program trust.(8) Carry out the duties and obligations of the ABLE program trust pursuant to this chapter and the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code and federal regulations issued pursuant to that code, and have any other powers as may be reasonably necessary for the effectuation of the purposes, objectives, and provisions of this chapter.(9) Carry out studies and projections in order to advise designated beneficiaries or eligible individuals regarding present and estimated future qualified disability expenses and the levels of financial participation in the ABLE program trust required in order to assist designated beneficiaries or eligible individuals.(10) Participate in any other way in any federal, state, or local governmental program for the benefit of the ABLE program trust.(11) Promulgate, impose, and collect administrative fees and charges in connection with transactions of the ABLE program trust, and provide for reasonable service charges, including penalties for cancellations.(12) Set minimum and maximum investment levels.(13) Administer the funds of the ABLE program trust.(14) Procure insurance against any loss in connection with the property, assets, or activities of the ABLE program trust.(15) Procure insurance indemnifying any member of the board from personal loss or liability resulting from a members action or inaction as a member of the board.(d) 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 board. The Treasurer shall determine the duties of the executive director and other staff as necessary and set his or her 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. | |
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| 3 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1076Introduced by Assembly Member AddisFebruary 20, 2025 An act to amend Section 69996.3 of the Education Code, to amend Section 19304 of the Revenue and Taxation Code, and to amend Section 4877 of the Welfare and Institutions Code, relating to Qualified ABLE Program, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGESTAB 1076, as introduced, Addis. Qualified ABLE Program: CalABLE accounts: funding.(1) Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified.Existing law establishes the Qualified ABLE Program for purposes of implementing the federal ABLE Act in this state, and creates the California ABLE Program Trust with the purposes, powers, and duties of the trust to be vested in and exercised by the California ABLE Act Board. Existing law requires the board to segregate the moneys coming into the ABLE program trust into 2 funds: the program fund, which is continuously appropriated, for specified purposes of the act, and the administrative fund, which is available upon appropriation by the Legislature for administration of the act. Existing law requires all moneys paid by designated beneficiaries or eligible individuals in connection with ABLE accounts to be deposited, as received, into the program fund, promptly invested, and accounted for separately. This bill would authorize the California ABLE Act Board to additionally accept grants, gifts, appropriations, and other moneys from a philanthropic entity, and would specify that the program can receive legislative appropriations. The bill would authorize the board to delegate specific amounts of grants, gifts, legislative appropriations, or other moneys into the administrative fund or the program fund at its discretion, and would allow the board to use those moneys to encourage eligible individuals to create an ABLE account or maximize account use, including through offering financial incentives in an amount determined by the board. The bill would authorize the board to adopt eligibility criteria for individuals to receive financial incentives, and would require the financial incentives be provided directly to the designated beneficiary or their authorized legal representative. By authorizing new uses of moneys in a continuously appropriated fund, the bill would make an appropriation.(2) Existing law requires the Franchise Tax Board to include, on a taxpayers form instructions for filing a return, information about the ability of a taxpayer to directly deposit a portion of their refund into the Golden State Scholarshare College Savings Trust, as specified.This bill would additionally require the Franchise Tax Board to include, on a taxpayers form instructions for filing a return, information about the ability of a taxpayer to directly deposit a portion of their refund into the California ABLE Program Trust.(3) Existing law establishes the California Kids Investment and Development Savings (KIDS) Program, under the administration of the Scholarshare Investment Board, for purposes of expanding access to higher education through savings.This bill would authorize the Scholarshare Investment Board to establish a process to allow a beneficiary, to the extent permitted under law, to transfer moneys designated for the beneficiary in a KIDS Account into a qualifying ABLE account. Digest Key Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NO | |
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| 5 | - | Amended IN Assembly March 28, 2025 | |
| 6 | 5 | ||
| 7 | - | Amended IN Assembly March 28, 2025 | |
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| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Assembly Bill | |
| 12 | 12 | ||
| 13 | 13 | No. 1076 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Assembly Member AddisFebruary 20, 2025 | |
| 16 | 16 | ||
| 17 | 17 | Introduced by Assembly Member Addis | |
| 18 | 18 | February 20, 2025 | |
| 19 | 19 | ||
| 20 | 20 | An act to amend Section 69996.3 of the Education Code, to amend Section 19304 of the Revenue and Taxation Code, and to amend Section 4877 of the Welfare and Institutions Code, relating to Qualified ABLE Program, and making an appropriation therefor. | |
| 21 | 21 | ||
| 22 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 25 | ||
| 26 | - | AB 1076, as | |
| 26 | + | AB 1076, as introduced, Addis. Qualified ABLE Program: CalABLE accounts: funding. | |
| 27 | 27 | ||
| 28 | - | (1) Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a | |
| 28 | + | (1) Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified.Existing law establishes the Qualified ABLE Program for purposes of implementing the federal ABLE Act in this state, and creates the California ABLE Program Trust with the purposes, powers, and duties of the trust to be vested in and exercised by the California ABLE Act Board. Existing law requires the board to segregate the moneys coming into the ABLE program trust into 2 funds: the program fund, which is continuously appropriated, for specified purposes of the act, and the administrative fund, which is available upon appropriation by the Legislature for administration of the act. Existing law requires all moneys paid by designated beneficiaries or eligible individuals in connection with ABLE accounts to be deposited, as received, into the program fund, promptly invested, and accounted for separately. This bill would authorize the California ABLE Act Board to additionally accept grants, gifts, appropriations, and other moneys from a philanthropic entity, and would specify that the program can receive legislative appropriations. The bill would authorize the board to delegate specific amounts of grants, gifts, legislative appropriations, or other moneys into the administrative fund or the program fund at its discretion, and would allow the board to use those moneys to encourage eligible individuals to create an ABLE account or maximize account use, including through offering financial incentives in an amount determined by the board. The bill would authorize the board to adopt eligibility criteria for individuals to receive financial incentives, and would require the financial incentives be provided directly to the designated beneficiary or their authorized legal representative. By authorizing new uses of moneys in a continuously appropriated fund, the bill would make an appropriation.(2) Existing law requires the Franchise Tax Board to include, on a taxpayers form instructions for filing a return, information about the ability of a taxpayer to directly deposit a portion of their refund into the Golden State Scholarshare College Savings Trust, as specified.This bill would additionally require the Franchise Tax Board to include, on a taxpayers form instructions for filing a return, information about the ability of a taxpayer to directly deposit a portion of their refund into the California ABLE Program Trust.(3) Existing law establishes the California Kids Investment and Development Savings (KIDS) Program, under the administration of the Scholarshare Investment Board, for purposes of expanding access to higher education through savings.This bill would authorize the Scholarshare Investment Board to establish a process to allow a beneficiary, to the extent permitted under law, to transfer moneys designated for the beneficiary in a KIDS Account into a qualifying ABLE account. | |
| 29 | 29 | ||
| 30 | - | (1) Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program | |
| 30 | + | (1) Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), encourages and assists individuals and families to save private funds for the purpose of supporting eligible individuals with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified. | |
| 31 | 31 | ||
| 32 | 32 | Existing law establishes the Qualified ABLE Program for purposes of implementing the federal ABLE Act in this state, and creates the California ABLE Program Trust with the purposes, powers, and duties of the trust to be vested in and exercised by the California ABLE Act Board. Existing law requires the board to segregate the moneys coming into the ABLE program trust into 2 funds: the program fund, which is continuously appropriated, for specified purposes of the act, and the administrative fund, which is available upon appropriation by the Legislature for administration of the act. Existing law requires all moneys paid by designated beneficiaries or eligible individuals in connection with ABLE accounts to be deposited, as received, into the program fund, promptly invested, and accounted for separately. | |
| 33 | 33 | ||
| 34 | 34 | This bill would authorize the California ABLE Act Board to additionally accept grants, gifts, appropriations, and other moneys from a philanthropic entity, and would specify that the program can receive legislative appropriations. The bill would authorize the board to delegate specific amounts of grants, gifts, legislative appropriations, or other moneys into the administrative fund or the program fund at its discretion, and would allow the board to use those moneys to encourage eligible individuals to create an ABLE account or maximize account use, including through offering financial incentives in an amount determined by the board. The bill would authorize the board to adopt eligibility criteria for individuals to receive financial incentives, and would require the financial incentives be provided directly to the designated beneficiary or their authorized legal representative. By authorizing new uses of moneys in a continuously appropriated fund, the bill would make an appropriation. | |
| 35 | 35 | ||
| 36 | 36 | (2) Existing law requires the Franchise Tax Board to include, on a taxpayers form instructions for filing a return, information about the ability of a taxpayer to directly deposit a portion of their refund into the Golden State Scholarshare College Savings Trust, as specified. | |
| 37 | 37 | ||
| 38 | 38 | This bill would additionally require the Franchise Tax Board to include, on a taxpayers form instructions for filing a return, information about the ability of a taxpayer to directly deposit a portion of their refund into the California ABLE Program Trust. | |
| 39 | 39 | ||
| 40 | 40 | (3) Existing law establishes the California Kids Investment and Development Savings (KIDS) Program, under the administration of the Scholarshare Investment Board, for purposes of expanding access to higher education through savings. | |
| 41 | 41 | ||
| 42 | - | ||
| 43 | - | ||
| 44 | 42 | This bill would authorize the Scholarshare Investment Board to establish a process to allow a beneficiary, to the extent permitted under law, to transfer moneys designated for the beneficiary in a KIDS Account into a qualifying ABLE account. | |
| 45 | - | ||
| 46 | - | ||
| 47 | 43 | ||
| 48 | 44 | ## Digest Key | |
| 49 | 45 | ||
| 50 | 46 | ## Bill Text | |
| 51 | 47 | ||
| 52 | - | The people of the State of California do enact as follows:SECTION 1.Section 69996.3 of the Education Code is amended to read:69996.3. | |
| 48 | + | The people of the State of California do enact as follows:SECTION 1. Section 69996.3 of the Education Code is amended to read:69996.3. (a) (1) Each child born on or after a date determined by the board pursuant to paragraph (2) who is a California resident at the time of birth is eligible for the program.(2) The date designated by the board for which eligibility commences shall be no later than July 1, 2022.(b) No later than 90 days after a birth certificate is registered for a child described in subdivision (a), the State Department of Public Health shall provide the board with identifiable birth data for the child in a file format as defined by the board. The birth data shall include the childs name and birth date and the name and contact information of each parent of the child, including the parents street address and, if provided to the department, the parents mobile telephone number and email address. In addition, upon request by the board, the department shall include, in the birth data it provides to the board, information collected pursuant to subparagraph (C) of paragraph (2) of subdivision (a) of Section 102426 of the Health and Safety Code. The department may provide additional identifiable birth data to the board, upon request, and upon a determination by the State Registrar, in consultation with the board, that the data is necessary for administration of the program. To the extent permitted by state and federal law, the department shall provide amended birth record information of a child to the board in order to assist the board in verifying a legal name change of the child, and any other information necessary, for the administration of the program. The department is not required to provide the board amended birth record information of a child that would reveal information that was sealed by statute or court order. The birth data is confidential and shall not be disclosed except as necessary for the program. No more than 90 days after receiving the birth data from the department, the board shall notify at least one parent of each eligible child about the program. The notification shall include information on all of the following:(1) How the parent may opt out of the program.(2) The KIDS Account opened for the child pursuant to subdivision (f).(3) How the parent may establish a separate account pursuant to Article 19 (commencing with Section 69980) and additional financial incentives provided pursuant to that article.(c) The board shall make a childs designated balance in a KIDS Account viewable by the childs parent or legal guardian through a secured internet link.(d) The board shall establish rules and regulations for a program recipient child, and the childs parents or legal guardians, to be notified of the moneys deposited and accrued in the childs KIDS Account, and rules and regulations regarding the establishment and operation of program components, including, but not limited to, the claims process, necessary documentation, deadlines for the claims, an appeals procedure, and any forfeiture procedures. A KIDS Account recipient child and each of the childs parents or legal guardians shall be informed of the establishment of the childs KIDS Account, provided information on how the parent or legal guardian may establish a separate account pursuant to Article 19 (commencing with Section 69980), and provided information on opportunities for financial incentives provided pursuant to that article.(e) The board shall translate program notifications and information provided pursuant to subdivisions (b) to (d), inclusive, into languages pursuant to Section 7295.2 of the Government Code.(f) Upon appropriation by the Legislature, the board shall establish one or more accounts and shall make a separately accounted-for seed deposit from the fund into a KIDS Account established within an account in an amount determined by the board. Each seed deposit shall be designated for a particular child for whom the board receives birth data pursuant to subdivision (b), if no parent or legal guardian has opted that child out of the program. Moneys in a KIDS Account designated for a child, including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be used for the purpose of providing awards for qualified higher education expenses associated with the attendance of the child at an eligible institution of higher education. Before the 202324 fiscal year, each seed deposit shall be at least twenty-five dollars ($25). Commencing with the 202324 fiscal year, each seed deposit shall be at least one hundred dollars ($100). The board may provide additional financial incentives designated for a child into a KIDS Account if the parent or legal guardian of the child engages with the KIDS Account by verifying receipt of information provided pursuant to paragraph (2) of subdivision (b), establishing a separate account pursuant to Article 19 (commencing with Section 69980), or engaging with the KIDS Account by other means approved by the board.(g) Upon the student self-certifying that they are enrolled at an institution of higher education and that they have resided in the state for at least one year immediately preceding the payment of qualified higher education expenses on the students behalf, the board shall make a payment to that institution in an amount determined by the student or their parent or legal guardian, which may include the total or a partial amount of the seed deposit, enhanced deposit, if applicable, and any additional financial incentives designated for the child pursuant to subdivision (f), plus any investment earnings attributed to that amount since the date of that deposit as calculated by the board, for qualified higher education expenses associated with the childs attendance at that institution. If the child has no account balance with the institution, the institution may distribute funds received for the child pursuant to this subdivision directly to the child for the purpose of paying the childs qualified higher education expenses.(h) Subject to available money in the fund, the board may provide additional incentives from the fund for children participating in the program, including, but not limited to, incentives targeting low-income households.(i) (1) Subject to available funding, a parent or legal guardian, residing in California, of a child who meets the criteria in paragraph (2) may apply to the board to enroll the child into the program. Subject to available funding, the enrollee shall be eligible for any incentives described in subdivision (h), as applicable, but is not eligible for a seed deposit.(2) The child is a current California resident under six years of age who was both of the following:(A) Born on or after the date designated by the board for which eligibility commences.(B) Not a California resident at the time of birth.(j) (1) A KIDS Account established pursuant to this article, and its investment earnings, shall remain assets of, and owned by, the state until used for the payment of qualified higher education expenses at an institution of higher education, and funds shall remain invested until they are used for the purposes authorized by this article or until the recipient achieves 26 years of age, whichever occurs first. If a beneficiary does not use any portion, or all, of the moneys intended for the beneficiary in a KIDS Account for a qualified higher education expense for any reason, including the death or disability of the beneficiary, before the beneficiary turns 26 years of age, all contributions made for the beneficiary into the KIDS Account and any earnings from those moneys shall be forfeited and deposited into the fund for the program.(2) Notwithstanding paragraph (1), subject to available funding, the board may establish an appeal process to allow a beneficiary to use the moneys designated for the beneficiary in a KIDS Account after the beneficiary turns 26 years of age.(3) The board may establish a process to allow a beneficiary, to the extent permitted under federal law, to transfer moneys designated for the beneficiary in a KIDS Account into a qualifying ABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code.(3)(4) Moneys, less applicable penalties, collected pursuant to Section 529 of the Internal Revenue Code not used within the time period described in paragraph (1) shall revert to the fund after the payment of any amount determined to be due to the federal government as a result of the reversion.(4)(5) All contributions made into a KIDS Account for a child who has opted out of the program pursuant to subdivision (b), including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be forfeited and deposited into the fund for the program in a timely manner.(k) The board shall encourage each parent and legal guardian of a beneficiary, including each parent and legal guardian of a child who applies to enroll the child into the program as a beneficiary pursuant to subdivision (i), to establish a separate account pursuant to Article 19 (commencing with Section 69980). The board shall provide assistance on how to establish the separate account.(l) The board may use up to 5 percent of state appropriations provided for purposes of the program for administrative costs. Unless otherwise specified in the annual Budget Act, this subdivision shall not apply to any one-time or ongoing local assistance funds first appropriated in support of the program beginning in the 202122 fiscal year.(m) It is the intent of the Legislature that both of the following occur:(1) The State Department of Public Health and the board share the information described in subdivision (b) in a manner that promotes data privacy and security.(2) The State Department of Public Health and the board enter into memoranda of understanding or participation agreements for data sharing purposes, as necessary, for the implementation and operation of this article.SEC. 2. Section 19304 of the Revenue and Taxation Code is amended to read:19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust. Trust or into the California ABLE Program Trust.(b) The Scholarshare Investment Board shall provide the Franchise Tax Board with a description of the Golden State Scholarshare College Savings Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c) The California ABLE Act Board shall provide the Franchise Tax Board with a description of the California ABLE Program Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c)(d) The Franchise Tax Board shall revise the taxpayer form instructions in the most cost-effective manner.(d)(e) For purposes of this section, Golden State Scholarshare College Savings Trust has the meaning set forth in subdivision (e) of Section 69980 of the Education Code.(f) For purposes of this section, California ABLE Program Trust has the meaning set forth in Section 4875 of the Welfare and Institutions Code.SEC. 3. Section 4877 of the Welfare and Institutions Code is amended to read:4877. (a) There is hereby created an instrumentality of the State of California to be known as the California ABLE Program Trust.(b) The purposes, powers, and duties of the California ABLE Program Trust are vested in, and shall be exercised by, the board.(c) The board, in the capacity of trustee, shall have the power and authority to do all of the following:(1) Sue and be sued.(2) (A) Make and enter into contracts necessary for the administration of the ABLE program trust, and engage personnel, including consultants, actuaries, managers, counsel, and auditors, as necessary for the purpose of rendering professional, managerial, and technical assistance and advice.(B) Subdivision (a) of Section 10365.5 of the Public Contract Code shall not apply to a contract with a program consultant for the qualified ABLE program. Any contract with a program consultant for the qualified ABLE program that would have been prohibited by that subdivision shall be publicly disclosed in a manner specified by the board prior to entering into the contract.(3) Adopt a corporate seal and change and amend it from time to time.(4) Cause moneys in the program fund to be held and invested and reinvested.(5) (A) Accept any grants, gifts, legislative appropriations, and other moneys from any unit of federal, state, or local government or any other person, firm, partnership, philanthropic entity, or corporation for deposit to the administrative fund or the program fund.(B) The board may delegate, to the extent permitted under federal law, specific amounts of grants, gifts, legislative appropriations, or other moneys to be divided or wholly deposited into the administrative fund or the program fund accordingly. The board may also target specific subgroups of eligible individuals provided that they are not limited in such a way that would conflict with the intent of the Legislature in establishing the program or other applicable law.(C) Grants, gifts, legislative appropriations, and other moneys may be used, to the extent permitted under federal law, to encourage eligible individuals to create an account or maximize account use, including financial incentives deposited into accounts and efforts to raise awareness about the program. The board may partner with other public, private, or nonprofit entities to facilitate or administer such moneys.(i) The board may adopt eligibility criteria for individuals to receive financial incentives in accordance with this subparagraph. Eligibility criteria may include, but is not limited to, opening a new account, depositing money into an account, establishing a reoccurring deposit, participating in financial literacy or other education opportunities, or being a state resident.(ii) Financial incentives shall be provided directly to the designated beneficiary or their authorized legal representative that meets the eligibility criteria, as determined by the board.(iii) The amount of any financial incentives shall be at the discretion of the board. Specific financial incentive amounts shall be communicated to the public and shall be applied equally to the designated beneficiaries identified as eligible for each specific financial incentive opportunity. Information including eligibility and actions needed to earn financial incentives shall be posted on the program internet website.(6) Enter into agreements with designated beneficiaries or eligible individuals to establish and maintain an ABLE account.(7) Make provisions for the payment of costs of administration and operation of the ABLE program trust.(8) Carry out the duties and obligations of the ABLE program trust pursuant to this chapter and the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code and federal regulations issued pursuant to that code, and have any other powers as may be reasonably necessary for the effectuation of the purposes, objectives, and provisions of this chapter.(9) Carry out studies and projections in order to advise designated beneficiaries or eligible individuals regarding present and estimated future qualified disability expenses and the levels of financial participation in the ABLE program trust required in order to assist designated beneficiaries or eligible individuals.(10) Participate in any other way in any federal, state, or local governmental program for the benefit of the ABLE program trust.(11) Promulgate, impose, and collect administrative fees and charges in connection with transactions of the ABLE program trust, and provide for reasonable service charges, including penalties for cancellations.(12) Set minimum and maximum investment levels.(13) Administer the funds of the ABLE program trust.(14) Procure insurance against any loss in connection with the property, assets, or activities of the ABLE program trust.(15) Procure insurance indemnifying any member of the board from personal loss or liability resulting from a members action or inaction as a member of the board.(d) 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 board. The Treasurer shall determine the duties of the executive director and other staff as necessary and set his or her 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. | |
| 53 | 49 | ||
| 54 | 50 | The people of the State of California do enact as follows: | |
| 55 | 51 | ||
| 56 | 52 | ## The people of the State of California do enact as follows: | |
| 57 | 53 | ||
| 54 | + | SECTION 1. Section 69996.3 of the Education Code is amended to read:69996.3. (a) (1) Each child born on or after a date determined by the board pursuant to paragraph (2) who is a California resident at the time of birth is eligible for the program.(2) The date designated by the board for which eligibility commences shall be no later than July 1, 2022.(b) No later than 90 days after a birth certificate is registered for a child described in subdivision (a), the State Department of Public Health shall provide the board with identifiable birth data for the child in a file format as defined by the board. The birth data shall include the childs name and birth date and the name and contact information of each parent of the child, including the parents street address and, if provided to the department, the parents mobile telephone number and email address. In addition, upon request by the board, the department shall include, in the birth data it provides to the board, information collected pursuant to subparagraph (C) of paragraph (2) of subdivision (a) of Section 102426 of the Health and Safety Code. The department may provide additional identifiable birth data to the board, upon request, and upon a determination by the State Registrar, in consultation with the board, that the data is necessary for administration of the program. To the extent permitted by state and federal law, the department shall provide amended birth record information of a child to the board in order to assist the board in verifying a legal name change of the child, and any other information necessary, for the administration of the program. The department is not required to provide the board amended birth record information of a child that would reveal information that was sealed by statute or court order. The birth data is confidential and shall not be disclosed except as necessary for the program. No more than 90 days after receiving the birth data from the department, the board shall notify at least one parent of each eligible child about the program. The notification shall include information on all of the following:(1) How the parent may opt out of the program.(2) The KIDS Account opened for the child pursuant to subdivision (f).(3) How the parent may establish a separate account pursuant to Article 19 (commencing with Section 69980) and additional financial incentives provided pursuant to that article.(c) The board shall make a childs designated balance in a KIDS Account viewable by the childs parent or legal guardian through a secured internet link.(d) The board shall establish rules and regulations for a program recipient child, and the childs parents or legal guardians, to be notified of the moneys deposited and accrued in the childs KIDS Account, and rules and regulations regarding the establishment and operation of program components, including, but not limited to, the claims process, necessary documentation, deadlines for the claims, an appeals procedure, and any forfeiture procedures. A KIDS Account recipient child and each of the childs parents or legal guardians shall be informed of the establishment of the childs KIDS Account, provided information on how the parent or legal guardian may establish a separate account pursuant to Article 19 (commencing with Section 69980), and provided information on opportunities for financial incentives provided pursuant to that article.(e) The board shall translate program notifications and information provided pursuant to subdivisions (b) to (d), inclusive, into languages pursuant to Section 7295.2 of the Government Code.(f) Upon appropriation by the Legislature, the board shall establish one or more accounts and shall make a separately accounted-for seed deposit from the fund into a KIDS Account established within an account in an amount determined by the board. Each seed deposit shall be designated for a particular child for whom the board receives birth data pursuant to subdivision (b), if no parent or legal guardian has opted that child out of the program. Moneys in a KIDS Account designated for a child, including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be used for the purpose of providing awards for qualified higher education expenses associated with the attendance of the child at an eligible institution of higher education. Before the 202324 fiscal year, each seed deposit shall be at least twenty-five dollars ($25). Commencing with the 202324 fiscal year, each seed deposit shall be at least one hundred dollars ($100). The board may provide additional financial incentives designated for a child into a KIDS Account if the parent or legal guardian of the child engages with the KIDS Account by verifying receipt of information provided pursuant to paragraph (2) of subdivision (b), establishing a separate account pursuant to Article 19 (commencing with Section 69980), or engaging with the KIDS Account by other means approved by the board.(g) Upon the student self-certifying that they are enrolled at an institution of higher education and that they have resided in the state for at least one year immediately preceding the payment of qualified higher education expenses on the students behalf, the board shall make a payment to that institution in an amount determined by the student or their parent or legal guardian, which may include the total or a partial amount of the seed deposit, enhanced deposit, if applicable, and any additional financial incentives designated for the child pursuant to subdivision (f), plus any investment earnings attributed to that amount since the date of that deposit as calculated by the board, for qualified higher education expenses associated with the childs attendance at that institution. If the child has no account balance with the institution, the institution may distribute funds received for the child pursuant to this subdivision directly to the child for the purpose of paying the childs qualified higher education expenses.(h) Subject to available money in the fund, the board may provide additional incentives from the fund for children participating in the program, including, but not limited to, incentives targeting low-income households.(i) (1) Subject to available funding, a parent or legal guardian, residing in California, of a child who meets the criteria in paragraph (2) may apply to the board to enroll the child into the program. Subject to available funding, the enrollee shall be eligible for any incentives described in subdivision (h), as applicable, but is not eligible for a seed deposit.(2) The child is a current California resident under six years of age who was both of the following:(A) Born on or after the date designated by the board for which eligibility commences.(B) Not a California resident at the time of birth.(j) (1) A KIDS Account established pursuant to this article, and its investment earnings, shall remain assets of, and owned by, the state until used for the payment of qualified higher education expenses at an institution of higher education, and funds shall remain invested until they are used for the purposes authorized by this article or until the recipient achieves 26 years of age, whichever occurs first. If a beneficiary does not use any portion, or all, of the moneys intended for the beneficiary in a KIDS Account for a qualified higher education expense for any reason, including the death or disability of the beneficiary, before the beneficiary turns 26 years of age, all contributions made for the beneficiary into the KIDS Account and any earnings from those moneys shall be forfeited and deposited into the fund for the program.(2) Notwithstanding paragraph (1), subject to available funding, the board may establish an appeal process to allow a beneficiary to use the moneys designated for the beneficiary in a KIDS Account after the beneficiary turns 26 years of age.(3) The board may establish a process to allow a beneficiary, to the extent permitted under federal law, to transfer moneys designated for the beneficiary in a KIDS Account into a qualifying ABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code.(3)(4) Moneys, less applicable penalties, collected pursuant to Section 529 of the Internal Revenue Code not used within the time period described in paragraph (1) shall revert to the fund after the payment of any amount determined to be due to the federal government as a result of the reversion.(4)(5) All contributions made into a KIDS Account for a child who has opted out of the program pursuant to subdivision (b), including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be forfeited and deposited into the fund for the program in a timely manner.(k) The board shall encourage each parent and legal guardian of a beneficiary, including each parent and legal guardian of a child who applies to enroll the child into the program as a beneficiary pursuant to subdivision (i), to establish a separate account pursuant to Article 19 (commencing with Section 69980). The board shall provide assistance on how to establish the separate account.(l) The board may use up to 5 percent of state appropriations provided for purposes of the program for administrative costs. Unless otherwise specified in the annual Budget Act, this subdivision shall not apply to any one-time or ongoing local assistance funds first appropriated in support of the program beginning in the 202122 fiscal year.(m) It is the intent of the Legislature that both of the following occur:(1) The State Department of Public Health and the board share the information described in subdivision (b) in a manner that promotes data privacy and security.(2) The State Department of Public Health and the board enter into memoranda of understanding or participation agreements for data sharing purposes, as necessary, for the implementation and operation of this article. | |
| 55 | + | ||
| 56 | + | SECTION 1. Section 69996.3 of the Education Code is amended to read: | |
| 57 | + | ||
| 58 | + | ### SECTION 1. | |
| 59 | + | ||
| 60 | + | 69996.3. (a) (1) Each child born on or after a date determined by the board pursuant to paragraph (2) who is a California resident at the time of birth is eligible for the program.(2) The date designated by the board for which eligibility commences shall be no later than July 1, 2022.(b) No later than 90 days after a birth certificate is registered for a child described in subdivision (a), the State Department of Public Health shall provide the board with identifiable birth data for the child in a file format as defined by the board. The birth data shall include the childs name and birth date and the name and contact information of each parent of the child, including the parents street address and, if provided to the department, the parents mobile telephone number and email address. In addition, upon request by the board, the department shall include, in the birth data it provides to the board, information collected pursuant to subparagraph (C) of paragraph (2) of subdivision (a) of Section 102426 of the Health and Safety Code. The department may provide additional identifiable birth data to the board, upon request, and upon a determination by the State Registrar, in consultation with the board, that the data is necessary for administration of the program. To the extent permitted by state and federal law, the department shall provide amended birth record information of a child to the board in order to assist the board in verifying a legal name change of the child, and any other information necessary, for the administration of the program. The department is not required to provide the board amended birth record information of a child that would reveal information that was sealed by statute or court order. The birth data is confidential and shall not be disclosed except as necessary for the program. No more than 90 days after receiving the birth data from the department, the board shall notify at least one parent of each eligible child about the program. The notification shall include information on all of the following:(1) How the parent may opt out of the program.(2) The KIDS Account opened for the child pursuant to subdivision (f).(3) How the parent may establish a separate account pursuant to Article 19 (commencing with Section 69980) and additional financial incentives provided pursuant to that article.(c) The board shall make a childs designated balance in a KIDS Account viewable by the childs parent or legal guardian through a secured internet link.(d) The board shall establish rules and regulations for a program recipient child, and the childs parents or legal guardians, to be notified of the moneys deposited and accrued in the childs KIDS Account, and rules and regulations regarding the establishment and operation of program components, including, but not limited to, the claims process, necessary documentation, deadlines for the claims, an appeals procedure, and any forfeiture procedures. A KIDS Account recipient child and each of the childs parents or legal guardians shall be informed of the establishment of the childs KIDS Account, provided information on how the parent or legal guardian may establish a separate account pursuant to Article 19 (commencing with Section 69980), and provided information on opportunities for financial incentives provided pursuant to that article.(e) The board shall translate program notifications and information provided pursuant to subdivisions (b) to (d), inclusive, into languages pursuant to Section 7295.2 of the Government Code.(f) Upon appropriation by the Legislature, the board shall establish one or more accounts and shall make a separately accounted-for seed deposit from the fund into a KIDS Account established within an account in an amount determined by the board. Each seed deposit shall be designated for a particular child for whom the board receives birth data pursuant to subdivision (b), if no parent or legal guardian has opted that child out of the program. Moneys in a KIDS Account designated for a child, including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be used for the purpose of providing awards for qualified higher education expenses associated with the attendance of the child at an eligible institution of higher education. Before the 202324 fiscal year, each seed deposit shall be at least twenty-five dollars ($25). Commencing with the 202324 fiscal year, each seed deposit shall be at least one hundred dollars ($100). The board may provide additional financial incentives designated for a child into a KIDS Account if the parent or legal guardian of the child engages with the KIDS Account by verifying receipt of information provided pursuant to paragraph (2) of subdivision (b), establishing a separate account pursuant to Article 19 (commencing with Section 69980), or engaging with the KIDS Account by other means approved by the board.(g) Upon the student self-certifying that they are enrolled at an institution of higher education and that they have resided in the state for at least one year immediately preceding the payment of qualified higher education expenses on the students behalf, the board shall make a payment to that institution in an amount determined by the student or their parent or legal guardian, which may include the total or a partial amount of the seed deposit, enhanced deposit, if applicable, and any additional financial incentives designated for the child pursuant to subdivision (f), plus any investment earnings attributed to that amount since the date of that deposit as calculated by the board, for qualified higher education expenses associated with the childs attendance at that institution. If the child has no account balance with the institution, the institution may distribute funds received for the child pursuant to this subdivision directly to the child for the purpose of paying the childs qualified higher education expenses.(h) Subject to available money in the fund, the board may provide additional incentives from the fund for children participating in the program, including, but not limited to, incentives targeting low-income households.(i) (1) Subject to available funding, a parent or legal guardian, residing in California, of a child who meets the criteria in paragraph (2) may apply to the board to enroll the child into the program. Subject to available funding, the enrollee shall be eligible for any incentives described in subdivision (h), as applicable, but is not eligible for a seed deposit.(2) The child is a current California resident under six years of age who was both of the following:(A) Born on or after the date designated by the board for which eligibility commences.(B) Not a California resident at the time of birth.(j) (1) A KIDS Account established pursuant to this article, and its investment earnings, shall remain assets of, and owned by, the state until used for the payment of qualified higher education expenses at an institution of higher education, and funds shall remain invested until they are used for the purposes authorized by this article or until the recipient achieves 26 years of age, whichever occurs first. If a beneficiary does not use any portion, or all, of the moneys intended for the beneficiary in a KIDS Account for a qualified higher education expense for any reason, including the death or disability of the beneficiary, before the beneficiary turns 26 years of age, all contributions made for the beneficiary into the KIDS Account and any earnings from those moneys shall be forfeited and deposited into the fund for the program.(2) Notwithstanding paragraph (1), subject to available funding, the board may establish an appeal process to allow a beneficiary to use the moneys designated for the beneficiary in a KIDS Account after the beneficiary turns 26 years of age.(3) The board may establish a process to allow a beneficiary, to the extent permitted under federal law, to transfer moneys designated for the beneficiary in a KIDS Account into a qualifying ABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code.(3)(4) Moneys, less applicable penalties, collected pursuant to Section 529 of the Internal Revenue Code not used within the time period described in paragraph (1) shall revert to the fund after the payment of any amount determined to be due to the federal government as a result of the reversion.(4)(5) All contributions made into a KIDS Account for a child who has opted out of the program pursuant to subdivision (b), including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be forfeited and deposited into the fund for the program in a timely manner.(k) The board shall encourage each parent and legal guardian of a beneficiary, including each parent and legal guardian of a child who applies to enroll the child into the program as a beneficiary pursuant to subdivision (i), to establish a separate account pursuant to Article 19 (commencing with Section 69980). The board shall provide assistance on how to establish the separate account.(l) The board may use up to 5 percent of state appropriations provided for purposes of the program for administrative costs. Unless otherwise specified in the annual Budget Act, this subdivision shall not apply to any one-time or ongoing local assistance funds first appropriated in support of the program beginning in the 202122 fiscal year.(m) It is the intent of the Legislature that both of the following occur:(1) The State Department of Public Health and the board share the information described in subdivision (b) in a manner that promotes data privacy and security.(2) The State Department of Public Health and the board enter into memoranda of understanding or participation agreements for data sharing purposes, as necessary, for the implementation and operation of this article. | |
| 61 | + | ||
| 62 | + | 69996.3. (a) (1) Each child born on or after a date determined by the board pursuant to paragraph (2) who is a California resident at the time of birth is eligible for the program.(2) The date designated by the board for which eligibility commences shall be no later than July 1, 2022.(b) No later than 90 days after a birth certificate is registered for a child described in subdivision (a), the State Department of Public Health shall provide the board with identifiable birth data for the child in a file format as defined by the board. The birth data shall include the childs name and birth date and the name and contact information of each parent of the child, including the parents street address and, if provided to the department, the parents mobile telephone number and email address. In addition, upon request by the board, the department shall include, in the birth data it provides to the board, information collected pursuant to subparagraph (C) of paragraph (2) of subdivision (a) of Section 102426 of the Health and Safety Code. The department may provide additional identifiable birth data to the board, upon request, and upon a determination by the State Registrar, in consultation with the board, that the data is necessary for administration of the program. To the extent permitted by state and federal law, the department shall provide amended birth record information of a child to the board in order to assist the board in verifying a legal name change of the child, and any other information necessary, for the administration of the program. The department is not required to provide the board amended birth record information of a child that would reveal information that was sealed by statute or court order. The birth data is confidential and shall not be disclosed except as necessary for the program. No more than 90 days after receiving the birth data from the department, the board shall notify at least one parent of each eligible child about the program. The notification shall include information on all of the following:(1) How the parent may opt out of the program.(2) The KIDS Account opened for the child pursuant to subdivision (f).(3) How the parent may establish a separate account pursuant to Article 19 (commencing with Section 69980) and additional financial incentives provided pursuant to that article.(c) The board shall make a childs designated balance in a KIDS Account viewable by the childs parent or legal guardian through a secured internet link.(d) The board shall establish rules and regulations for a program recipient child, and the childs parents or legal guardians, to be notified of the moneys deposited and accrued in the childs KIDS Account, and rules and regulations regarding the establishment and operation of program components, including, but not limited to, the claims process, necessary documentation, deadlines for the claims, an appeals procedure, and any forfeiture procedures. A KIDS Account recipient child and each of the childs parents or legal guardians shall be informed of the establishment of the childs KIDS Account, provided information on how the parent or legal guardian may establish a separate account pursuant to Article 19 (commencing with Section 69980), and provided information on opportunities for financial incentives provided pursuant to that article.(e) The board shall translate program notifications and information provided pursuant to subdivisions (b) to (d), inclusive, into languages pursuant to Section 7295.2 of the Government Code.(f) Upon appropriation by the Legislature, the board shall establish one or more accounts and shall make a separately accounted-for seed deposit from the fund into a KIDS Account established within an account in an amount determined by the board. Each seed deposit shall be designated for a particular child for whom the board receives birth data pursuant to subdivision (b), if no parent or legal guardian has opted that child out of the program. Moneys in a KIDS Account designated for a child, including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be used for the purpose of providing awards for qualified higher education expenses associated with the attendance of the child at an eligible institution of higher education. Before the 202324 fiscal year, each seed deposit shall be at least twenty-five dollars ($25). Commencing with the 202324 fiscal year, each seed deposit shall be at least one hundred dollars ($100). The board may provide additional financial incentives designated for a child into a KIDS Account if the parent or legal guardian of the child engages with the KIDS Account by verifying receipt of information provided pursuant to paragraph (2) of subdivision (b), establishing a separate account pursuant to Article 19 (commencing with Section 69980), or engaging with the KIDS Account by other means approved by the board.(g) Upon the student self-certifying that they are enrolled at an institution of higher education and that they have resided in the state for at least one year immediately preceding the payment of qualified higher education expenses on the students behalf, the board shall make a payment to that institution in an amount determined by the student or their parent or legal guardian, which may include the total or a partial amount of the seed deposit, enhanced deposit, if applicable, and any additional financial incentives designated for the child pursuant to subdivision (f), plus any investment earnings attributed to that amount since the date of that deposit as calculated by the board, for qualified higher education expenses associated with the childs attendance at that institution. If the child has no account balance with the institution, the institution may distribute funds received for the child pursuant to this subdivision directly to the child for the purpose of paying the childs qualified higher education expenses.(h) Subject to available money in the fund, the board may provide additional incentives from the fund for children participating in the program, including, but not limited to, incentives targeting low-income households.(i) (1) Subject to available funding, a parent or legal guardian, residing in California, of a child who meets the criteria in paragraph (2) may apply to the board to enroll the child into the program. Subject to available funding, the enrollee shall be eligible for any incentives described in subdivision (h), as applicable, but is not eligible for a seed deposit.(2) The child is a current California resident under six years of age who was both of the following:(A) Born on or after the date designated by the board for which eligibility commences.(B) Not a California resident at the time of birth.(j) (1) A KIDS Account established pursuant to this article, and its investment earnings, shall remain assets of, and owned by, the state until used for the payment of qualified higher education expenses at an institution of higher education, and funds shall remain invested until they are used for the purposes authorized by this article or until the recipient achieves 26 years of age, whichever occurs first. If a beneficiary does not use any portion, or all, of the moneys intended for the beneficiary in a KIDS Account for a qualified higher education expense for any reason, including the death or disability of the beneficiary, before the beneficiary turns 26 years of age, all contributions made for the beneficiary into the KIDS Account and any earnings from those moneys shall be forfeited and deposited into the fund for the program.(2) Notwithstanding paragraph (1), subject to available funding, the board may establish an appeal process to allow a beneficiary to use the moneys designated for the beneficiary in a KIDS Account after the beneficiary turns 26 years of age.(3) The board may establish a process to allow a beneficiary, to the extent permitted under federal law, to transfer moneys designated for the beneficiary in a KIDS Account into a qualifying ABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code.(3)(4) Moneys, less applicable penalties, collected pursuant to Section 529 of the Internal Revenue Code not used within the time period described in paragraph (1) shall revert to the fund after the payment of any amount determined to be due to the federal government as a result of the reversion.(4)(5) All contributions made into a KIDS Account for a child who has opted out of the program pursuant to subdivision (b), including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be forfeited and deposited into the fund for the program in a timely manner.(k) The board shall encourage each parent and legal guardian of a beneficiary, including each parent and legal guardian of a child who applies to enroll the child into the program as a beneficiary pursuant to subdivision (i), to establish a separate account pursuant to Article 19 (commencing with Section 69980). The board shall provide assistance on how to establish the separate account.(l) The board may use up to 5 percent of state appropriations provided for purposes of the program for administrative costs. Unless otherwise specified in the annual Budget Act, this subdivision shall not apply to any one-time or ongoing local assistance funds first appropriated in support of the program beginning in the 202122 fiscal year.(m) It is the intent of the Legislature that both of the following occur:(1) The State Department of Public Health and the board share the information described in subdivision (b) in a manner that promotes data privacy and security.(2) The State Department of Public Health and the board enter into memoranda of understanding or participation agreements for data sharing purposes, as necessary, for the implementation and operation of this article. | |
| 63 | + | ||
| 64 | + | 69996.3. (a) (1) Each child born on or after a date determined by the board pursuant to paragraph (2) who is a California resident at the time of birth is eligible for the program.(2) The date designated by the board for which eligibility commences shall be no later than July 1, 2022.(b) No later than 90 days after a birth certificate is registered for a child described in subdivision (a), the State Department of Public Health shall provide the board with identifiable birth data for the child in a file format as defined by the board. The birth data shall include the childs name and birth date and the name and contact information of each parent of the child, including the parents street address and, if provided to the department, the parents mobile telephone number and email address. In addition, upon request by the board, the department shall include, in the birth data it provides to the board, information collected pursuant to subparagraph (C) of paragraph (2) of subdivision (a) of Section 102426 of the Health and Safety Code. The department may provide additional identifiable birth data to the board, upon request, and upon a determination by the State Registrar, in consultation with the board, that the data is necessary for administration of the program. To the extent permitted by state and federal law, the department shall provide amended birth record information of a child to the board in order to assist the board in verifying a legal name change of the child, and any other information necessary, for the administration of the program. The department is not required to provide the board amended birth record information of a child that would reveal information that was sealed by statute or court order. The birth data is confidential and shall not be disclosed except as necessary for the program. No more than 90 days after receiving the birth data from the department, the board shall notify at least one parent of each eligible child about the program. The notification shall include information on all of the following:(1) How the parent may opt out of the program.(2) The KIDS Account opened for the child pursuant to subdivision (f).(3) How the parent may establish a separate account pursuant to Article 19 (commencing with Section 69980) and additional financial incentives provided pursuant to that article.(c) The board shall make a childs designated balance in a KIDS Account viewable by the childs parent or legal guardian through a secured internet link.(d) The board shall establish rules and regulations for a program recipient child, and the childs parents or legal guardians, to be notified of the moneys deposited and accrued in the childs KIDS Account, and rules and regulations regarding the establishment and operation of program components, including, but not limited to, the claims process, necessary documentation, deadlines for the claims, an appeals procedure, and any forfeiture procedures. A KIDS Account recipient child and each of the childs parents or legal guardians shall be informed of the establishment of the childs KIDS Account, provided information on how the parent or legal guardian may establish a separate account pursuant to Article 19 (commencing with Section 69980), and provided information on opportunities for financial incentives provided pursuant to that article.(e) The board shall translate program notifications and information provided pursuant to subdivisions (b) to (d), inclusive, into languages pursuant to Section 7295.2 of the Government Code.(f) Upon appropriation by the Legislature, the board shall establish one or more accounts and shall make a separately accounted-for seed deposit from the fund into a KIDS Account established within an account in an amount determined by the board. Each seed deposit shall be designated for a particular child for whom the board receives birth data pursuant to subdivision (b), if no parent or legal guardian has opted that child out of the program. Moneys in a KIDS Account designated for a child, including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be used for the purpose of providing awards for qualified higher education expenses associated with the attendance of the child at an eligible institution of higher education. Before the 202324 fiscal year, each seed deposit shall be at least twenty-five dollars ($25). Commencing with the 202324 fiscal year, each seed deposit shall be at least one hundred dollars ($100). The board may provide additional financial incentives designated for a child into a KIDS Account if the parent or legal guardian of the child engages with the KIDS Account by verifying receipt of information provided pursuant to paragraph (2) of subdivision (b), establishing a separate account pursuant to Article 19 (commencing with Section 69980), or engaging with the KIDS Account by other means approved by the board.(g) Upon the student self-certifying that they are enrolled at an institution of higher education and that they have resided in the state for at least one year immediately preceding the payment of qualified higher education expenses on the students behalf, the board shall make a payment to that institution in an amount determined by the student or their parent or legal guardian, which may include the total or a partial amount of the seed deposit, enhanced deposit, if applicable, and any additional financial incentives designated for the child pursuant to subdivision (f), plus any investment earnings attributed to that amount since the date of that deposit as calculated by the board, for qualified higher education expenses associated with the childs attendance at that institution. If the child has no account balance with the institution, the institution may distribute funds received for the child pursuant to this subdivision directly to the child for the purpose of paying the childs qualified higher education expenses.(h) Subject to available money in the fund, the board may provide additional incentives from the fund for children participating in the program, including, but not limited to, incentives targeting low-income households.(i) (1) Subject to available funding, a parent or legal guardian, residing in California, of a child who meets the criteria in paragraph (2) may apply to the board to enroll the child into the program. Subject to available funding, the enrollee shall be eligible for any incentives described in subdivision (h), as applicable, but is not eligible for a seed deposit.(2) The child is a current California resident under six years of age who was both of the following:(A) Born on or after the date designated by the board for which eligibility commences.(B) Not a California resident at the time of birth.(j) (1) A KIDS Account established pursuant to this article, and its investment earnings, shall remain assets of, and owned by, the state until used for the payment of qualified higher education expenses at an institution of higher education, and funds shall remain invested until they are used for the purposes authorized by this article or until the recipient achieves 26 years of age, whichever occurs first. If a beneficiary does not use any portion, or all, of the moneys intended for the beneficiary in a KIDS Account for a qualified higher education expense for any reason, including the death or disability of the beneficiary, before the beneficiary turns 26 years of age, all contributions made for the beneficiary into the KIDS Account and any earnings from those moneys shall be forfeited and deposited into the fund for the program.(2) Notwithstanding paragraph (1), subject to available funding, the board may establish an appeal process to allow a beneficiary to use the moneys designated for the beneficiary in a KIDS Account after the beneficiary turns 26 years of age.(3) The board may establish a process to allow a beneficiary, to the extent permitted under federal law, to transfer moneys designated for the beneficiary in a KIDS Account into a qualifying ABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code.(3)(4) Moneys, less applicable penalties, collected pursuant to Section 529 of the Internal Revenue Code not used within the time period described in paragraph (1) shall revert to the fund after the payment of any amount determined to be due to the federal government as a result of the reversion.(4)(5) All contributions made into a KIDS Account for a child who has opted out of the program pursuant to subdivision (b), including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be forfeited and deposited into the fund for the program in a timely manner.(k) The board shall encourage each parent and legal guardian of a beneficiary, including each parent and legal guardian of a child who applies to enroll the child into the program as a beneficiary pursuant to subdivision (i), to establish a separate account pursuant to Article 19 (commencing with Section 69980). The board shall provide assistance on how to establish the separate account.(l) The board may use up to 5 percent of state appropriations provided for purposes of the program for administrative costs. Unless otherwise specified in the annual Budget Act, this subdivision shall not apply to any one-time or ongoing local assistance funds first appropriated in support of the program beginning in the 202122 fiscal year.(m) It is the intent of the Legislature that both of the following occur:(1) The State Department of Public Health and the board share the information described in subdivision (b) in a manner that promotes data privacy and security.(2) The State Department of Public Health and the board enter into memoranda of understanding or participation agreements for data sharing purposes, as necessary, for the implementation and operation of this article. | |
| 58 | 65 | ||
| 59 | 66 | ||
| 60 | 67 | ||
| 61 | - | ||
| 62 | - | (a)(1)Each child born on or after a date determined by the board pursuant to paragraph (2) who is a California resident at the time of birth is eligible for the program. | |
| 63 | - | ||
| 64 | - | ||
| 68 | + | 69996.3. (a) (1) Each child born on or after a date determined by the board pursuant to paragraph (2) who is a California resident at the time of birth is eligible for the program. | |
| 65 | 69 | ||
| 66 | 70 | (2) The date designated by the board for which eligibility commences shall be no later than July 1, 2022. | |
| 67 | 71 | ||
| 68 | - | ||
| 69 | - | ||
| 70 | 72 | (b) No later than 90 days after a birth certificate is registered for a child described in subdivision (a), the State Department of Public Health shall provide the board with identifiable birth data for the child in a file format as defined by the board. The birth data shall include the childs name and birth date and the name and contact information of each parent of the child, including the parents street address and, if provided to the department, the parents mobile telephone number and email address. In addition, upon request by the board, the department shall include, in the birth data it provides to the board, information collected pursuant to subparagraph (C) of paragraph (2) of subdivision (a) of Section 102426 of the Health and Safety Code. The department may provide additional identifiable birth data to the board, upon request, and upon a determination by the State Registrar, in consultation with the board, that the data is necessary for administration of the program. To the extent permitted by state and federal law, the department shall provide amended birth record information of a child to the board in order to assist the board in verifying a legal name change of the child, and any other information necessary, for the administration of the program. The department is not required to provide the board amended birth record information of a child that would reveal information that was sealed by statute or court order. The birth data is confidential and shall not be disclosed except as necessary for the program. No more than 90 days after receiving the birth data from the department, the board shall notify at least one parent of each eligible child about the program. The notification shall include information on all of the following: | |
| 71 | - | ||
| 72 | - | ||
| 73 | 73 | ||
| 74 | 74 | (1) How the parent may opt out of the program. | |
| 75 | 75 | ||
| 76 | - | ||
| 77 | - | ||
| 78 | 76 | (2) The KIDS Account opened for the child pursuant to subdivision (f). | |
| 79 | - | ||
| 80 | - | ||
| 81 | 77 | ||
| 82 | 78 | (3) How the parent may establish a separate account pursuant to Article 19 (commencing with Section 69980) and additional financial incentives provided pursuant to that article. | |
| 83 | 79 | ||
| 84 | - | ||
| 85 | - | ||
| 86 | 80 | (c) The board shall make a childs designated balance in a KIDS Account viewable by the childs parent or legal guardian through a secured internet link. | |
| 87 | - | ||
| 88 | - | ||
| 89 | 81 | ||
| 90 | 82 | (d) The board shall establish rules and regulations for a program recipient child, and the childs parents or legal guardians, to be notified of the moneys deposited and accrued in the childs KIDS Account, and rules and regulations regarding the establishment and operation of program components, including, but not limited to, the claims process, necessary documentation, deadlines for the claims, an appeals procedure, and any forfeiture procedures. A KIDS Account recipient child and each of the childs parents or legal guardians shall be informed of the establishment of the childs KIDS Account, provided information on how the parent or legal guardian may establish a separate account pursuant to Article 19 (commencing with Section 69980), and provided information on opportunities for financial incentives provided pursuant to that article. | |
| 91 | 83 | ||
| 92 | - | ||
| 93 | - | ||
| 94 | 84 | (e) The board shall translate program notifications and information provided pursuant to subdivisions (b) to (d), inclusive, into languages pursuant to Section 7295.2 of the Government Code. | |
| 95 | - | ||
| 96 | - | ||
| 97 | 85 | ||
| 98 | 86 | (f) Upon appropriation by the Legislature, the board shall establish one or more accounts and shall make a separately accounted-for seed deposit from the fund into a KIDS Account established within an account in an amount determined by the board. Each seed deposit shall be designated for a particular child for whom the board receives birth data pursuant to subdivision (b), if no parent or legal guardian has opted that child out of the program. Moneys in a KIDS Account designated for a child, including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be used for the purpose of providing awards for qualified higher education expenses associated with the attendance of the child at an eligible institution of higher education. Before the 202324 fiscal year, each seed deposit shall be at least twenty-five dollars ($25). Commencing with the 202324 fiscal year, each seed deposit shall be at least one hundred dollars ($100). The board may provide additional financial incentives designated for a child into a KIDS Account if the parent or legal guardian of the child engages with the KIDS Account by verifying receipt of information provided pursuant to paragraph (2) of subdivision (b), establishing a separate account pursuant to Article 19 (commencing with Section 69980), or engaging with the KIDS Account by other means approved by the board. | |
| 99 | 87 | ||
| 100 | - | ||
| 101 | - | ||
| 102 | 88 | (g) Upon the student self-certifying that they are enrolled at an institution of higher education and that they have resided in the state for at least one year immediately preceding the payment of qualified higher education expenses on the students behalf, the board shall make a payment to that institution in an amount determined by the student or their parent or legal guardian, which may include the total or a partial amount of the seed deposit, enhanced deposit, if applicable, and any additional financial incentives designated for the child pursuant to subdivision (f), plus any investment earnings attributed to that amount since the date of that deposit as calculated by the board, for qualified higher education expenses associated with the childs attendance at that institution. If the child has no account balance with the institution, the institution may distribute funds received for the child pursuant to this subdivision directly to the child for the purpose of paying the childs qualified higher education expenses. | |
| 103 | - | ||
| 104 | - | ||
| 105 | 89 | ||
| 106 | 90 | (h) Subject to available money in the fund, the board may provide additional incentives from the fund for children participating in the program, including, but not limited to, incentives targeting low-income households. | |
| 107 | 91 | ||
| 108 | - | ||
| 109 | - | ||
| 110 | 92 | (i) (1) Subject to available funding, a parent or legal guardian, residing in California, of a child who meets the criteria in paragraph (2) may apply to the board to enroll the child into the program. Subject to available funding, the enrollee shall be eligible for any incentives described in subdivision (h), as applicable, but is not eligible for a seed deposit. | |
| 111 | - | ||
| 112 | - | ||
| 113 | 93 | ||
| 114 | 94 | (2) The child is a current California resident under six years of age who was both of the following: | |
| 115 | 95 | ||
| 116 | - | ||
| 117 | - | ||
| 118 | 96 | (A) Born on or after the date designated by the board for which eligibility commences. | |
| 119 | - | ||
| 120 | - | ||
| 121 | 97 | ||
| 122 | 98 | (B) Not a California resident at the time of birth. | |
| 123 | 99 | ||
| 124 | - | ||
| 125 | - | ||
| 126 | 100 | (j) (1) A KIDS Account established pursuant to this article, and its investment earnings, shall remain assets of, and owned by, the state until used for the payment of qualified higher education expenses at an institution of higher education, and funds shall remain invested until they are used for the purposes authorized by this article or until the recipient achieves 26 years of age, whichever occurs first. If a beneficiary does not use any portion, or all, of the moneys intended for the beneficiary in a KIDS Account for a qualified higher education expense for any reason, including the death or disability of the beneficiary, before the beneficiary turns 26 years of age, all contributions made for the beneficiary into the KIDS Account and any earnings from those moneys shall be forfeited and deposited into the fund for the program. | |
| 127 | - | ||
| 128 | - | ||
| 129 | 101 | ||
| 130 | 102 | (2) Notwithstanding paragraph (1), subject to available funding, the board may establish an appeal process to allow a beneficiary to use the moneys designated for the beneficiary in a KIDS Account after the beneficiary turns 26 years of age. | |
| 131 | 103 | ||
| 104 | + | (3) The board may establish a process to allow a beneficiary, to the extent permitted under federal law, to transfer moneys designated for the beneficiary in a KIDS Account into a qualifying ABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code. | |
| 132 | 105 | ||
| 133 | - | ||
| 134 | - | (3)The board may establish a process to allow a beneficiary, to the extent permitted under federal law, to transfer moneys designated for the beneficiary in a KIDS Account into a qualifying ABLE account established pursuant to Chapter 15 (commencing with Section 4875) of Division 4.5 of the Welfare and Institutions Code. | |
| 106 | + | (3) | |
| 135 | 107 | ||
| 136 | 108 | ||
| 137 | 109 | ||
| 138 | 110 | (4) Moneys, less applicable penalties, collected pursuant to Section 529 of the Internal Revenue Code not used within the time period described in paragraph (1) shall revert to the fund after the payment of any amount determined to be due to the federal government as a result of the reversion. | |
| 139 | 111 | ||
| 112 | + | (4) | |
| 113 | + | ||
| 140 | 114 | ||
| 141 | 115 | ||
| 142 | 116 | (5) All contributions made into a KIDS Account for a child who has opted out of the program pursuant to subdivision (b), including any investment earnings attributed to the amount of the childs seed deposit since the date of the deposit as calculated by the board, shall be forfeited and deposited into the fund for the program in a timely manner. | |
| 143 | 117 | ||
| 118 | + | (k) The board shall encourage each parent and legal guardian of a beneficiary, including each parent and legal guardian of a child who applies to enroll the child into the program as a beneficiary pursuant to subdivision (i), to establish a separate account pursuant to Article 19 (commencing with Section 69980). The board shall provide assistance on how to establish the separate account. | |
| 144 | 119 | ||
| 120 | + | (l) The board may use up to 5 percent of state appropriations provided for purposes of the program for administrative costs. Unless otherwise specified in the annual Budget Act, this subdivision shall not apply to any one-time or ongoing local assistance funds first appropriated in support of the program beginning in the 202122 fiscal year. | |
| 145 | 121 | ||
| 146 | - | (k)The board shall encourage each parent and legal guardian of a beneficiary, including each parent and legal guardian of a child who applies to enroll the child into the program as a beneficiary pursuant to subdivision (i), to establish a separate account pursuant to Article 19 (commencing with Section 69980). The board shall provide assistance on how to establish the separate account. | |
| 122 | + | (m) It is the intent of the Legislature that both of the following occur: | |
| 123 | + | ||
| 124 | + | (1) The State Department of Public Health and the board share the information described in subdivision (b) in a manner that promotes data privacy and security. | |
| 125 | + | ||
| 126 | + | (2) The State Department of Public Health and the board enter into memoranda of understanding or participation agreements for data sharing purposes, as necessary, for the implementation and operation of this article. | |
| 127 | + | ||
| 128 | + | SEC. 2. Section 19304 of the Revenue and Taxation Code is amended to read:19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust. Trust or into the California ABLE Program Trust.(b) The Scholarshare Investment Board shall provide the Franchise Tax Board with a description of the Golden State Scholarshare College Savings Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c) The California ABLE Act Board shall provide the Franchise Tax Board with a description of the California ABLE Program Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c)(d) The Franchise Tax Board shall revise the taxpayer form instructions in the most cost-effective manner.(d)(e) For purposes of this section, Golden State Scholarshare College Savings Trust has the meaning set forth in subdivision (e) of Section 69980 of the Education Code.(f) For purposes of this section, California ABLE Program Trust has the meaning set forth in Section 4875 of the Welfare and Institutions Code. | |
| 129 | + | ||
| 130 | + | SEC. 2. Section 19304 of the Revenue and Taxation Code is amended to read: | |
| 131 | + | ||
| 132 | + | ### SEC. 2. | |
| 133 | + | ||
| 134 | + | 19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust. Trust or into the California ABLE Program Trust.(b) The Scholarshare Investment Board shall provide the Franchise Tax Board with a description of the Golden State Scholarshare College Savings Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c) The California ABLE Act Board shall provide the Franchise Tax Board with a description of the California ABLE Program Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c)(d) The Franchise Tax Board shall revise the taxpayer form instructions in the most cost-effective manner.(d)(e) For purposes of this section, Golden State Scholarshare College Savings Trust has the meaning set forth in subdivision (e) of Section 69980 of the Education Code.(f) For purposes of this section, California ABLE Program Trust has the meaning set forth in Section 4875 of the Welfare and Institutions Code. | |
| 135 | + | ||
| 136 | + | 19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust. Trust or into the California ABLE Program Trust.(b) The Scholarshare Investment Board shall provide the Franchise Tax Board with a description of the Golden State Scholarshare College Savings Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c) The California ABLE Act Board shall provide the Franchise Tax Board with a description of the California ABLE Program Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c)(d) The Franchise Tax Board shall revise the taxpayer form instructions in the most cost-effective manner.(d)(e) For purposes of this section, Golden State Scholarshare College Savings Trust has the meaning set forth in subdivision (e) of Section 69980 of the Education Code.(f) For purposes of this section, California ABLE Program Trust has the meaning set forth in Section 4875 of the Welfare and Institutions Code. | |
| 137 | + | ||
| 138 | + | 19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust. Trust or into the California ABLE Program Trust.(b) The Scholarshare Investment Board shall provide the Franchise Tax Board with a description of the Golden State Scholarshare College Savings Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c) The California ABLE Act Board shall provide the Franchise Tax Board with a description of the California ABLE Program Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c)(d) The Franchise Tax Board shall revise the taxpayer form instructions in the most cost-effective manner.(d)(e) For purposes of this section, Golden State Scholarshare College Savings Trust has the meaning set forth in subdivision (e) of Section 69980 of the Education Code.(f) For purposes of this section, California ABLE Program Trust has the meaning set forth in Section 4875 of the Welfare and Institutions Code. | |
| 147 | 139 | ||
| 148 | 140 | ||
| 149 | 141 | ||
| 150 | - | (l)The board may use up to 5 percent of state appropriations provided for purposes of the program for administrative costs. Unless otherwise specified in the annual Budget Act, this subdivision shall not apply to any one-time or ongoing local assistance funds first appropriated in support of the program beginning in the 202122 fiscal year. | |
| 151 | - | ||
| 152 | - | ||
| 153 | - | ||
| 154 | - | (m)It is the intent of the Legislature that both of the following occur: | |
| 155 | - | ||
| 156 | - | ||
| 157 | - | ||
| 158 | - | (1)The State Department of Public Health and the board share the information described in subdivision (b) in a manner that promotes data privacy and security. | |
| 159 | - | ||
| 160 | - | ||
| 161 | - | ||
| 162 | - | (2)The State Department of Public Health and the board enter into memoranda of understanding or participation agreements for data sharing purposes, as necessary, for the implementation and operation of this article. | |
| 163 | - | ||
| 164 | - | ||
| 165 | - | ||
| 166 | - | SEC. 2.SECTION 1. Section 19304 of the Revenue and Taxation Code is amended to read:19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust or into the California ABLE Program Trust.(b) The Scholarshare Investment Board shall provide the Franchise Tax Board with a description of the Golden State Scholarshare College Savings Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c) The California ABLE Act Board shall provide the Franchise Tax Board with a description of the California ABLE Program Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(d) The Franchise Tax Board shall revise the taxpayer form instructions in the most cost-effective manner.(e) For purposes of this section, Golden State Scholarshare College Savings Trust has the meaning set forth in subdivision (e) of Section 69980 of the Education Code.(f) For purposes of this section, California ABLE Program Trust has the meaning set forth in Section 4875 of the Welfare and Institutions Code. | |
| 167 | - | ||
| 168 | - | SEC. 2.SECTION 1. Section 19304 of the Revenue and Taxation Code is amended to read: | |
| 169 | - | ||
| 170 | - | ### SEC. 2.SECTION 1. | |
| 171 | - | ||
| 172 | - | 19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust or into the California ABLE Program Trust.(b) The Scholarshare Investment Board shall provide the Franchise Tax Board with a description of the Golden State Scholarshare College Savings Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c) The California ABLE Act Board shall provide the Franchise Tax Board with a description of the California ABLE Program Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(d) The Franchise Tax Board shall revise the taxpayer form instructions in the most cost-effective manner.(e) For purposes of this section, Golden State Scholarshare College Savings Trust has the meaning set forth in subdivision (e) of Section 69980 of the Education Code.(f) For purposes of this section, California ABLE Program Trust has the meaning set forth in Section 4875 of the Welfare and Institutions Code. | |
| 173 | - | ||
| 174 | - | 19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust or into the California ABLE Program Trust.(b) The Scholarshare Investment Board shall provide the Franchise Tax Board with a description of the Golden State Scholarshare College Savings Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c) The California ABLE Act Board shall provide the Franchise Tax Board with a description of the California ABLE Program Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(d) The Franchise Tax Board shall revise the taxpayer form instructions in the most cost-effective manner.(e) For purposes of this section, Golden State Scholarshare College Savings Trust has the meaning set forth in subdivision (e) of Section 69980 of the Education Code.(f) For purposes of this section, California ABLE Program Trust has the meaning set forth in Section 4875 of the Welfare and Institutions Code. | |
| 175 | - | ||
| 176 | - | 19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust or into the California ABLE Program Trust.(b) The Scholarshare Investment Board shall provide the Franchise Tax Board with a description of the Golden State Scholarshare College Savings Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(c) The California ABLE Act Board shall provide the Franchise Tax Board with a description of the California ABLE Program Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less.(d) The Franchise Tax Board shall revise the taxpayer form instructions in the most cost-effective manner.(e) For purposes of this section, Golden State Scholarshare College Savings Trust has the meaning set forth in subdivision (e) of Section 69980 of the Education Code.(f) For purposes of this section, California ABLE Program Trust has the meaning set forth in Section 4875 of the Welfare and Institutions Code. | |
| 177 | - | ||
| 178 | - | ||
| 179 | - | ||
| 180 | - | 19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust or into the California ABLE Program Trust. | |
| 142 | + | 19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust. Trust or into the California ABLE Program Trust. | |
| 181 | 143 | ||
| 182 | 144 | (b) The Scholarshare Investment Board shall provide the Franchise Tax Board with a description of the Golden State Scholarshare College Savings Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less. | |
| 183 | 145 | ||
| 184 | 146 | (c) The California ABLE Act Board shall provide the Franchise Tax Board with a description of the California ABLE Program Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less. | |
| 185 | 147 | ||
| 148 | + | (c) | |
| 149 | + | ||
| 150 | + | ||
| 151 | + | ||
| 186 | 152 | (d) The Franchise Tax Board shall revise the taxpayer form instructions in the most cost-effective manner. | |
| 153 | + | ||
| 154 | + | (d) | |
| 155 | + | ||
| 156 | + | ||
| 187 | 157 | ||
| 188 | 158 | (e) For purposes of this section, Golden State Scholarshare College Savings Trust has the meaning set forth in subdivision (e) of Section 69980 of the Education Code. | |
| 189 | 159 | ||
| 190 | 160 | (f) For purposes of this section, California ABLE Program Trust has the meaning set forth in Section 4875 of the Welfare and Institutions Code. | |
| 191 | 161 | ||
| 192 | - | SEC. 3 | |
| 162 | + | SEC. 3. Section 4877 of the Welfare and Institutions Code is amended to read:4877. (a) There is hereby created an instrumentality of the State of California to be known as the California ABLE Program Trust.(b) The purposes, powers, and duties of the California ABLE Program Trust are vested in, and shall be exercised by, the board.(c) The board, in the capacity of trustee, shall have the power and authority to do all of the following:(1) Sue and be sued.(2) (A) Make and enter into contracts necessary for the administration of the ABLE program trust, and engage personnel, including consultants, actuaries, managers, counsel, and auditors, as necessary for the purpose of rendering professional, managerial, and technical assistance and advice.(B) Subdivision (a) of Section 10365.5 of the Public Contract Code shall not apply to a contract with a program consultant for the qualified ABLE program. Any contract with a program consultant for the qualified ABLE program that would have been prohibited by that subdivision shall be publicly disclosed in a manner specified by the board prior to entering into the contract.(3) Adopt a corporate seal and change and amend it from time to time.(4) Cause moneys in the program fund to be held and invested and reinvested.(5) (A) Accept any grants, gifts, legislative appropriations, and other moneys from any unit of federal, state, or local government or any other person, firm, partnership, philanthropic entity, or corporation for deposit to the administrative fund or the program fund.(B) The board may delegate, to the extent permitted under federal law, specific amounts of grants, gifts, legislative appropriations, or other moneys to be divided or wholly deposited into the administrative fund or the program fund accordingly. The board may also target specific subgroups of eligible individuals provided that they are not limited in such a way that would conflict with the intent of the Legislature in establishing the program or other applicable law.(C) Grants, gifts, legislative appropriations, and other moneys may be used, to the extent permitted under federal law, to encourage eligible individuals to create an account or maximize account use, including financial incentives deposited into accounts and efforts to raise awareness about the program. The board may partner with other public, private, or nonprofit entities to facilitate or administer such moneys.(i) The board may adopt eligibility criteria for individuals to receive financial incentives in accordance with this subparagraph. Eligibility criteria may include, but is not limited to, opening a new account, depositing money into an account, establishing a reoccurring deposit, participating in financial literacy or other education opportunities, or being a state resident.(ii) Financial incentives shall be provided directly to the designated beneficiary or their authorized legal representative that meets the eligibility criteria, as determined by the board.(iii) The amount of any financial incentives shall be at the discretion of the board. Specific financial incentive amounts shall be communicated to the public and shall be applied equally to the designated beneficiaries identified as eligible for each specific financial incentive opportunity. Information including eligibility and actions needed to earn financial incentives shall be posted on the program internet website.(6) Enter into agreements with designated beneficiaries or eligible individuals to establish and maintain an ABLE account.(7) Make provisions for the payment of costs of administration and operation of the ABLE program trust.(8) Carry out the duties and obligations of the ABLE program trust pursuant to this chapter and the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code and federal regulations issued pursuant to that code, and have any other powers as may be reasonably necessary for the effectuation of the purposes, objectives, and provisions of this chapter.(9) Carry out studies and projections in order to advise designated beneficiaries or eligible individuals regarding present and estimated future qualified disability expenses and the levels of financial participation in the ABLE program trust required in order to assist designated beneficiaries or eligible individuals.(10) Participate in any other way in any federal, state, or local governmental program for the benefit of the ABLE program trust.(11) Promulgate, impose, and collect administrative fees and charges in connection with transactions of the ABLE program trust, and provide for reasonable service charges, including penalties for cancellations.(12) Set minimum and maximum investment levels.(13) Administer the funds of the ABLE program trust.(14) Procure insurance against any loss in connection with the property, assets, or activities of the ABLE program trust.(15) Procure insurance indemnifying any member of the board from personal loss or liability resulting from a members action or inaction as a member of the board.(d) 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 board. The Treasurer shall determine the duties of the executive director and other staff as necessary and set his or her 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. | |
| 193 | 163 | ||
| 194 | - | SEC. 3 | |
| 164 | + | SEC. 3. Section 4877 of the Welfare and Institutions Code is amended to read: | |
| 195 | 165 | ||
| 196 | - | ### SEC. 3. | |
| 166 | + | ### SEC. 3. | |
| 197 | 167 | ||
| 198 | - | 4877. (a) There is hereby created an instrumentality of the State of California to be known as the California ABLE Program Trust.(b) The purposes, powers, and duties of the California ABLE Program Trust are vested in, and shall be exercised by, the board.(c) The board, in the capacity of trustee, shall have the power and authority to do all of the following:(1) Sue and be sued.(2) (A) Make and enter into contracts necessary for the administration of the ABLE program trust, and engage personnel, including consultants, actuaries, managers, counsel, and auditors, as necessary for the purpose of rendering professional, managerial, and technical assistance and advice.(B) Subdivision (a) of Section 10365.5 of the Public Contract Code shall not apply to a contract with a program consultant for the qualified ABLE program. | |
| 168 | + | 4877. (a) There is hereby created an instrumentality of the State of California to be known as the California ABLE Program Trust.(b) The purposes, powers, and duties of the California ABLE Program Trust are vested in, and shall be exercised by, the board.(c) The board, in the capacity of trustee, shall have the power and authority to do all of the following:(1) Sue and be sued.(2) (A) Make and enter into contracts necessary for the administration of the ABLE program trust, and engage personnel, including consultants, actuaries, managers, counsel, and auditors, as necessary for the purpose of rendering professional, managerial, and technical assistance and advice.(B) Subdivision (a) of Section 10365.5 of the Public Contract Code shall not apply to a contract with a program consultant for the qualified ABLE program. Any contract with a program consultant for the qualified ABLE program that would have been prohibited by that subdivision shall be publicly disclosed in a manner specified by the board prior to entering into the contract.(3) Adopt a corporate seal and change and amend it from time to time.(4) Cause moneys in the program fund to be held and invested and reinvested.(5) (A) Accept any grants, gifts, legislative appropriations, and other moneys from any unit of federal, state, or local government or any other person, firm, partnership, philanthropic entity, or corporation for deposit to the administrative fund or the program fund.(B) The board may delegate, to the extent permitted under federal law, specific amounts of grants, gifts, legislative appropriations, or other moneys to be divided or wholly deposited into the administrative fund or the program fund accordingly. The board may also target specific subgroups of eligible individuals provided that they are not limited in such a way that would conflict with the intent of the Legislature in establishing the program or other applicable law.(C) Grants, gifts, legislative appropriations, and other moneys may be used, to the extent permitted under federal law, to encourage eligible individuals to create an account or maximize account use, including financial incentives deposited into accounts and efforts to raise awareness about the program. The board may partner with other public, private, or nonprofit entities to facilitate or administer such moneys.(i) The board may adopt eligibility criteria for individuals to receive financial incentives in accordance with this subparagraph. Eligibility criteria may include, but is not limited to, opening a new account, depositing money into an account, establishing a reoccurring deposit, participating in financial literacy or other education opportunities, or being a state resident.(ii) Financial incentives shall be provided directly to the designated beneficiary or their authorized legal representative that meets the eligibility criteria, as determined by the board.(iii) The amount of any financial incentives shall be at the discretion of the board. Specific financial incentive amounts shall be communicated to the public and shall be applied equally to the designated beneficiaries identified as eligible for each specific financial incentive opportunity. Information including eligibility and actions needed to earn financial incentives shall be posted on the program internet website.(6) Enter into agreements with designated beneficiaries or eligible individuals to establish and maintain an ABLE account.(7) Make provisions for the payment of costs of administration and operation of the ABLE program trust.(8) Carry out the duties and obligations of the ABLE program trust pursuant to this chapter and the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code and federal regulations issued pursuant to that code, and have any other powers as may be reasonably necessary for the effectuation of the purposes, objectives, and provisions of this chapter.(9) Carry out studies and projections in order to advise designated beneficiaries or eligible individuals regarding present and estimated future qualified disability expenses and the levels of financial participation in the ABLE program trust required in order to assist designated beneficiaries or eligible individuals.(10) Participate in any other way in any federal, state, or local governmental program for the benefit of the ABLE program trust.(11) Promulgate, impose, and collect administrative fees and charges in connection with transactions of the ABLE program trust, and provide for reasonable service charges, including penalties for cancellations.(12) Set minimum and maximum investment levels.(13) Administer the funds of the ABLE program trust.(14) Procure insurance against any loss in connection with the property, assets, or activities of the ABLE program trust.(15) Procure insurance indemnifying any member of the board from personal loss or liability resulting from a members action or inaction as a member of the board.(d) 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 board. The Treasurer shall determine the duties of the executive director and other staff as necessary and set his or her 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. | |
| 199 | 169 | ||
| 200 | - | 4877. (a) There is hereby created an instrumentality of the State of California to be known as the California ABLE Program Trust.(b) The purposes, powers, and duties of the California ABLE Program Trust are vested in, and shall be exercised by, the board.(c) The board, in the capacity of trustee, shall have the power and authority to do all of the following:(1) Sue and be sued.(2) (A) Make and enter into contracts necessary for the administration of the ABLE program trust, and engage personnel, including consultants, actuaries, managers, counsel, and auditors, as necessary for the purpose of rendering professional, managerial, and technical assistance and advice.(B) Subdivision (a) of Section 10365.5 of the Public Contract Code shall not apply to a contract with a program consultant for the qualified ABLE program. | |
| 170 | + | 4877. (a) There is hereby created an instrumentality of the State of California to be known as the California ABLE Program Trust.(b) The purposes, powers, and duties of the California ABLE Program Trust are vested in, and shall be exercised by, the board.(c) The board, in the capacity of trustee, shall have the power and authority to do all of the following:(1) Sue and be sued.(2) (A) Make and enter into contracts necessary for the administration of the ABLE program trust, and engage personnel, including consultants, actuaries, managers, counsel, and auditors, as necessary for the purpose of rendering professional, managerial, and technical assistance and advice.(B) Subdivision (a) of Section 10365.5 of the Public Contract Code shall not apply to a contract with a program consultant for the qualified ABLE program. Any contract with a program consultant for the qualified ABLE program that would have been prohibited by that subdivision shall be publicly disclosed in a manner specified by the board prior to entering into the contract.(3) Adopt a corporate seal and change and amend it from time to time.(4) Cause moneys in the program fund to be held and invested and reinvested.(5) (A) Accept any grants, gifts, legislative appropriations, and other moneys from any unit of federal, state, or local government or any other person, firm, partnership, philanthropic entity, or corporation for deposit to the administrative fund or the program fund.(B) The board may delegate, to the extent permitted under federal law, specific amounts of grants, gifts, legislative appropriations, or other moneys to be divided or wholly deposited into the administrative fund or the program fund accordingly. The board may also target specific subgroups of eligible individuals provided that they are not limited in such a way that would conflict with the intent of the Legislature in establishing the program or other applicable law.(C) Grants, gifts, legislative appropriations, and other moneys may be used, to the extent permitted under federal law, to encourage eligible individuals to create an account or maximize account use, including financial incentives deposited into accounts and efforts to raise awareness about the program. The board may partner with other public, private, or nonprofit entities to facilitate or administer such moneys.(i) The board may adopt eligibility criteria for individuals to receive financial incentives in accordance with this subparagraph. Eligibility criteria may include, but is not limited to, opening a new account, depositing money into an account, establishing a reoccurring deposit, participating in financial literacy or other education opportunities, or being a state resident.(ii) Financial incentives shall be provided directly to the designated beneficiary or their authorized legal representative that meets the eligibility criteria, as determined by the board.(iii) The amount of any financial incentives shall be at the discretion of the board. Specific financial incentive amounts shall be communicated to the public and shall be applied equally to the designated beneficiaries identified as eligible for each specific financial incentive opportunity. Information including eligibility and actions needed to earn financial incentives shall be posted on the program internet website.(6) Enter into agreements with designated beneficiaries or eligible individuals to establish and maintain an ABLE account.(7) Make provisions for the payment of costs of administration and operation of the ABLE program trust.(8) Carry out the duties and obligations of the ABLE program trust pursuant to this chapter and the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code and federal regulations issued pursuant to that code, and have any other powers as may be reasonably necessary for the effectuation of the purposes, objectives, and provisions of this chapter.(9) Carry out studies and projections in order to advise designated beneficiaries or eligible individuals regarding present and estimated future qualified disability expenses and the levels of financial participation in the ABLE program trust required in order to assist designated beneficiaries or eligible individuals.(10) Participate in any other way in any federal, state, or local governmental program for the benefit of the ABLE program trust.(11) Promulgate, impose, and collect administrative fees and charges in connection with transactions of the ABLE program trust, and provide for reasonable service charges, including penalties for cancellations.(12) Set minimum and maximum investment levels.(13) Administer the funds of the ABLE program trust.(14) Procure insurance against any loss in connection with the property, assets, or activities of the ABLE program trust.(15) Procure insurance indemnifying any member of the board from personal loss or liability resulting from a members action or inaction as a member of the board.(d) 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 board. The Treasurer shall determine the duties of the executive director and other staff as necessary and set his or her 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. | |
| 201 | 171 | ||
| 202 | - | 4877. (a) There is hereby created an instrumentality of the State of California to be known as the California ABLE Program Trust.(b) The purposes, powers, and duties of the California ABLE Program Trust are vested in, and shall be exercised by, the board.(c) The board, in the capacity of trustee, shall have the power and authority to do all of the following:(1) Sue and be sued.(2) (A) Make and enter into contracts necessary for the administration of the ABLE program trust, and engage personnel, including consultants, actuaries, managers, counsel, and auditors, as necessary for the purpose of rendering professional, managerial, and technical assistance and advice.(B) Subdivision (a) of Section 10365.5 of the Public Contract Code shall not apply to a contract with a program consultant for the qualified ABLE program. | |
| 172 | + | 4877. (a) There is hereby created an instrumentality of the State of California to be known as the California ABLE Program Trust.(b) The purposes, powers, and duties of the California ABLE Program Trust are vested in, and shall be exercised by, the board.(c) The board, in the capacity of trustee, shall have the power and authority to do all of the following:(1) Sue and be sued.(2) (A) Make and enter into contracts necessary for the administration of the ABLE program trust, and engage personnel, including consultants, actuaries, managers, counsel, and auditors, as necessary for the purpose of rendering professional, managerial, and technical assistance and advice.(B) Subdivision (a) of Section 10365.5 of the Public Contract Code shall not apply to a contract with a program consultant for the qualified ABLE program. Any contract with a program consultant for the qualified ABLE program that would have been prohibited by that subdivision shall be publicly disclosed in a manner specified by the board prior to entering into the contract.(3) Adopt a corporate seal and change and amend it from time to time.(4) Cause moneys in the program fund to be held and invested and reinvested.(5) (A) Accept any grants, gifts, legislative appropriations, and other moneys from any unit of federal, state, or local government or any other person, firm, partnership, philanthropic entity, or corporation for deposit to the administrative fund or the program fund.(B) The board may delegate, to the extent permitted under federal law, specific amounts of grants, gifts, legislative appropriations, or other moneys to be divided or wholly deposited into the administrative fund or the program fund accordingly. The board may also target specific subgroups of eligible individuals provided that they are not limited in such a way that would conflict with the intent of the Legislature in establishing the program or other applicable law.(C) Grants, gifts, legislative appropriations, and other moneys may be used, to the extent permitted under federal law, to encourage eligible individuals to create an account or maximize account use, including financial incentives deposited into accounts and efforts to raise awareness about the program. The board may partner with other public, private, or nonprofit entities to facilitate or administer such moneys.(i) The board may adopt eligibility criteria for individuals to receive financial incentives in accordance with this subparagraph. Eligibility criteria may include, but is not limited to, opening a new account, depositing money into an account, establishing a reoccurring deposit, participating in financial literacy or other education opportunities, or being a state resident.(ii) Financial incentives shall be provided directly to the designated beneficiary or their authorized legal representative that meets the eligibility criteria, as determined by the board.(iii) The amount of any financial incentives shall be at the discretion of the board. Specific financial incentive amounts shall be communicated to the public and shall be applied equally to the designated beneficiaries identified as eligible for each specific financial incentive opportunity. Information including eligibility and actions needed to earn financial incentives shall be posted on the program internet website.(6) Enter into agreements with designated beneficiaries or eligible individuals to establish and maintain an ABLE account.(7) Make provisions for the payment of costs of administration and operation of the ABLE program trust.(8) Carry out the duties and obligations of the ABLE program trust pursuant to this chapter and the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code and federal regulations issued pursuant to that code, and have any other powers as may be reasonably necessary for the effectuation of the purposes, objectives, and provisions of this chapter.(9) Carry out studies and projections in order to advise designated beneficiaries or eligible individuals regarding present and estimated future qualified disability expenses and the levels of financial participation in the ABLE program trust required in order to assist designated beneficiaries or eligible individuals.(10) Participate in any other way in any federal, state, or local governmental program for the benefit of the ABLE program trust.(11) Promulgate, impose, and collect administrative fees and charges in connection with transactions of the ABLE program trust, and provide for reasonable service charges, including penalties for cancellations.(12) Set minimum and maximum investment levels.(13) Administer the funds of the ABLE program trust.(14) Procure insurance against any loss in connection with the property, assets, or activities of the ABLE program trust.(15) Procure insurance indemnifying any member of the board from personal loss or liability resulting from a members action or inaction as a member of the board.(d) 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 board. The Treasurer shall determine the duties of the executive director and other staff as necessary and set his or her 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. | |
| 203 | 173 | ||
| 204 | 174 | ||
| 205 | 175 | ||
| 206 | 176 | 4877. (a) There is hereby created an instrumentality of the State of California to be known as the California ABLE Program Trust. | |
| 207 | 177 | ||
| 208 | 178 | (b) The purposes, powers, and duties of the California ABLE Program Trust are vested in, and shall be exercised by, the board. | |
| 209 | 179 | ||
| 210 | 180 | (c) The board, in the capacity of trustee, shall have the power and authority to do all of the following: | |
| 211 | 181 | ||
| 212 | 182 | (1) Sue and be sued. | |
| 213 | 183 | ||
| 214 | 184 | (2) (A) Make and enter into contracts necessary for the administration of the ABLE program trust, and engage personnel, including consultants, actuaries, managers, counsel, and auditors, as necessary for the purpose of rendering professional, managerial, and technical assistance and advice. | |
| 215 | 185 | ||
| 216 | - | (B) Subdivision (a) of Section 10365.5 of the Public Contract Code shall not apply to a contract with a program consultant for the qualified ABLE program. | |
| 186 | + | (B) Subdivision (a) of Section 10365.5 of the Public Contract Code shall not apply to a contract with a program consultant for the qualified ABLE program. Any contract with a program consultant for the qualified ABLE program that would have been prohibited by that subdivision shall be publicly disclosed in a manner specified by the board prior to entering into the contract. | |
| 217 | 187 | ||
| 218 | 188 | (3) Adopt a corporate seal and change and amend it from time to time. | |
| 219 | 189 | ||
| 220 | 190 | (4) Cause moneys in the program fund to be held and invested and reinvested. | |
| 221 | 191 | ||
| 222 | 192 | (5) (A) Accept any grants, gifts, legislative appropriations, and other moneys from any unit of federal, state, or local government or any other person, firm, partnership, philanthropic entity, or corporation for deposit to the administrative fund or the program fund. | |
| 223 | 193 | ||
| 224 | 194 | (B) The board may delegate, to the extent permitted under federal law, specific amounts of grants, gifts, legislative appropriations, or other moneys to be divided or wholly deposited into the administrative fund or the program fund accordingly. The board may also target specific subgroups of eligible individuals provided that they are not limited in such a way that would conflict with the intent of the Legislature in establishing the program or other applicable law. | |
| 225 | 195 | ||
| 226 | 196 | (C) Grants, gifts, legislative appropriations, and other moneys may be used, to the extent permitted under federal law, to encourage eligible individuals to create an account or maximize account use, including financial incentives deposited into accounts and efforts to raise awareness about the program. The board may partner with other public, private, or nonprofit entities to facilitate or administer such moneys. | |
| 227 | 197 | ||
| 228 | 198 | (i) The board may adopt eligibility criteria for individuals to receive financial incentives in accordance with this subparagraph. Eligibility criteria may include, but is not limited to, opening a new account, depositing money into an account, establishing a reoccurring deposit, participating in financial literacy or other education opportunities, or being a state resident. | |
| 229 | 199 | ||
| 230 | 200 | (ii) Financial incentives shall be provided directly to the designated beneficiary or their authorized legal representative that meets the eligibility criteria, as determined by the board. | |
| 231 | 201 | ||
| 232 | 202 | (iii) The amount of any financial incentives shall be at the discretion of the board. Specific financial incentive amounts shall be communicated to the public and shall be applied equally to the designated beneficiaries identified as eligible for each specific financial incentive opportunity. Information including eligibility and actions needed to earn financial incentives shall be posted on the program internet website. | |
| 233 | 203 | ||
| 234 | 204 | (6) Enter into agreements with designated beneficiaries or eligible individuals to establish and maintain an ABLE account. | |
| 235 | 205 | ||
| 236 | 206 | (7) Make provisions for the payment of costs of administration and operation of the ABLE program trust. | |
| 237 | 207 | ||
| 238 | 208 | (8) Carry out the duties and obligations of the ABLE program trust pursuant to this chapter and the federal ABLE Act pursuant to Section 529A of the Internal Revenue Code and federal regulations issued pursuant to that code, and have any other powers as may be reasonably necessary for the effectuation of the purposes, objectives, and provisions of this chapter. | |
| 239 | 209 | ||
| 240 | 210 | (9) Carry out studies and projections in order to advise designated beneficiaries or eligible individuals regarding present and estimated future qualified disability expenses and the levels of financial participation in the ABLE program trust required in order to assist designated beneficiaries or eligible individuals. | |
| 241 | 211 | ||
| 242 | 212 | (10) Participate in any other way in any federal, state, or local governmental program for the benefit of the ABLE program trust. | |
| 243 | 213 | ||
| 244 | 214 | (11) Promulgate, impose, and collect administrative fees and charges in connection with transactions of the ABLE program trust, and provide for reasonable service charges, including penalties for cancellations. | |
| 245 | 215 | ||
| 246 | 216 | (12) Set minimum and maximum investment levels. | |
| 247 | 217 | ||
| 248 | 218 | (13) Administer the funds of the ABLE program trust. | |
| 249 | 219 | ||
| 250 | 220 | (14) Procure insurance against any loss in connection with the property, assets, or activities of the ABLE program trust. | |
| 251 | 221 | ||
| 252 | 222 | (15) Procure insurance indemnifying any member of the board from personal loss or liability resulting from a members action or inaction as a member of the board. | |
| 253 | 223 | ||
| 254 | - | (d) 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 board. The Treasurer shall determine the duties of the executive director and other staff as necessary 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. | |
| 224 | + | (d) 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 board. The Treasurer shall determine the duties of the executive director and other staff as necessary and set his or her 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. |