SENATE BILL 24-226
BY SENATOR(S) Fenberg and Marchman, Bridges, Buckner, Cutter,
Exum, Jaquez Lewis, Michaelson Jenet, Priola;
also REPRESENTATIVE(S) Herod and Brown, Amabile, Bacon, Bird,
Daugherty, Duran, English, Garcia, Hamrick, Hernandez, Jodeh, Lieder,
Lindsay, Mabrey, McLachlan, Ortiz, Ricks, Sirota, Snyder, Story, Titone,
Valdez, Velasco, Weissman, Willford, McCluskie.
C
ONCERNING MODIFICATIONS TO THE COLLEGE KICKSTARTER ACCOUNT
PROGRAM
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 23-3.1-306.5, amend
(1)(a)(V), (1)(b) introductory portion, (2)(a), (2)(d), (3), (4)(a), (4)(b), (4)(c)
introductory portion, (4)(c)(I), (4)(c)(II), (5), (6) introductory portion,
(6)(a), (6)(b)(II), (6)(b)(IV), (6)(b)(V), (7), and (8)(c); repeal (6)(b)(III) and
(6)(b)(VI); and add (2)(a.5), (2)(a.7), (2)(b.5), (2)(c.5), (6)(b)(VII), (6)(c),
and (6)(d) as follows:
23-3.1-306.5. College kickstarter account program - funding -
administration - financial literacy course - rules - legislative declaration
- definitions. (1) (a) The general assembly hereby finds and declares that:
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (V) Providing seed money for each child born in OR ADOPTED INTO
Colorado as an incentive to enroll in a college savings account helps make
saving for college part of the collective culture of Colorado by opening the
door for economic opportunity for all children and their families, better
positions the state as a pioneer in building family financial capability, and
promotes the development of a stronger, more qualified Colorado
workforce.
(b) The general assembly further finds and declares that establishing
the college kickstarter account program, which provides both an initial
contribution of money for every child born in
OR ADOPTED INTO Colorado
that may be claimed and transferred to a college savings account and
subsequently supplemented by parental and family
OTHER contributions and
a potential opportunity for financial literacy education free of charge:
(2) As used in this section, unless the context otherwise requires:
(a) "Eligible child" means a child born or adopted in Colorado on or
after January 1, 2020, but before January 1, 2040. "ACCOUNT SPONSOR"
MEANS, BEFORE JANUARY 1, 2025, A PARENT OR PARENTS AND ON OR AFTER
JANUARY 1, 2025, A PARENT OR PARENTS OR ANY OTHER INDIVIDUAL WHO
PROVIDES THE BIRTH CERTIFICATE NUMBER OR ORDER OF ADOPTION FOR AN
ELIGIBLE CHILD IN ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION
.
(a.5) "B
ASE AMOUNT" MEANS:
(I) O
NE HUNDRED DOLLARS BEFORE JANUARY 1, 2021; OR
(II) ONE HUNDRED DOLLARS, ANNUALLY ADJUSTED FOR INFLATION ,
FOR EACH YEAR BEGINNING ON OR AFTER JANUARY 1, 2021.
(a.7) "E
LIGIBLE CHILD" MEANS A CHILD BORN OR ADOPTED IN
COLORADO ON OR AFTER JANUARY 1, 2020, BUT BEFORE JANUARY 1, 2040.
(b.5) "I
NDIVIDUAL COLLEGE SAVINGS ACCOUNT " MEANS ANY
COLLEGEINVEST ACCOUNT
.
(c.5) "I
NTEREST ACCRUAL AMOUNT " MEANS THE AMOUNT OF
INTEREST THAT HAS ACCRUED FROM THE BASE AMOUNT IN THE YEAR THE
PAGE 2-SENATE BILL 24-226 ELIGIBLE CHILD WAS BORN TO THE YEAR THAT THE ACCOUNT SPONSOR
CLAIMS KICKSTARTER FUNDING
.
(d) "Kickstarter funding" means an amount in the master account
designated for each eligible child by the authority
THAT IS EQUAL TO THE
BASE AMOUNT IN THE CLAIM YEAR PLUS
, IF APPLICABLE, THE INTEREST
ACCRUAL AMOUNT
, which the parent or parents of
AN ACCOUNT SPONSOR
FOR
the eligible child can claim on behalf of the eligible child, LIMITED TO
ONE CLAIM PER BIRTH CERTIFICATE NUMBER OR ORDER OF ADOPTION PER
CHILD
, AS APPLICABLE, by opening an INDIVIDUAL COLLEGE SAVINGS
account for the eligible child. as follows:
(I) One hundred dollars for each eligible child born before January
1, 2021; or
(II) One hundred dollars, annually adjusted for inflation for each
year beginning on or after January 1, 2021, for each eligible child born on
or after January 1, 2021.
(3) (a) Except as otherwise provided in subsection (5) of this
section, the authority shall oversee and administer the college kickstarter
account program, which is created within the authority. The department
shall create an advisory board,
FACILITATED BY THE AUTHORITY, which shall
include, at a minimum, the state treasurer or the state treasurer's designee
and both an employee of the department who is not an employee of the
authority and an employee of the authority IN ACCORDANCE WITH
SUBSECTION
(3)(b) OF THIS SECTION, WHICH IS A SUBCOMMITTEE OF THE
BOARD OF DIRECTORS OF THE AUTHORITY
, to advise the authority regarding
the oversight and administration of the kickstarter program. The advisory
board is subject to the open meetings provisions of the Colorado sunshine
law contained in part 4 of article 6 of title 24 and the "Colorado Open
Records Act", article 72 of title 24.
(b) (I) M
EMBERS OF THE ADVISORY BOARD MUST INCLUDE :
(A) T
HE STATE TREASURER OR THE STATE TREASURER 'S DESIGNEE;
(B) T
HE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF HIGHER
EDUCATION OR THE EXECUTIVE DIRECTOR
'S DESIGNEE;
PAGE 3-SENATE BILL 24-226 (C) THE CHAIR OR THE VICE-CHAIR OF THE BOARD OF DIRECTORS OF
THE AUTHORITY
;
(D) T
HE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF EARLY
CHILDHOOD OR THE EXECUTIVE DIRECTOR
'S DESIGNEE;
(E) T
HE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF EDUCATION
OR THE EXECUTIVE DIRECTOR
'S DESIGNEE;
(F) A
REPRESENTATIVE FROM THE OFFICE OF CHILDREN , YOUTH, AND
FAMILIES IN THE DIVISION OF CHILD WELFARE IN THE DEPARTMENT OF
HUMAN SERVICES
;
(G) A
MARKETING EXPERT FROM OUTSIDE THE AUTHORITY ;
(H) A
CUSTOMER EXPERIENCE DESIGN EXPERT FROM OUTSIDE THE
AUTHORITY
; AND
(I) AN EMPLOYEE OF THE AUTHORITY WITH CONTENT KNOWLEDGE
OF THE KICKSTARTER PROGRAM
.
(II) A
NY MEMBER OF THE BOARD OF DIRECTORS OF THE AUTHORITY
MAY SERVE ON THE ADVISORY BOARD
.
(c) T
HE ADVISORY BOARD MUST MEET AT LEAST QUARTERLY EACH
YEAR
.
(4) (a) The authority shall create a kickstarter program master
account. By increasing available revenue, without reducing existing levels
of scholarship or matching grant funding, the authority shall annually
deposit to the master account for state fiscal year 2019-20 and for each
succeeding state fiscal year thereafter through state fiscal year 2044-45 the
amount needed to ensure that there is sufficient money in the master
account to make all transfers of kickstarter funding from the master account
to
INDIVIDUAL COLLEGE SAVINGS accounts that name an eligible child as the
beneficiary required by subsection (4)(b) of this section during the state
fiscal year for which the transfer is made. Notwithstanding any other law,
the amounts to be transferred shall be taken from money of the authority
that is available for use by the authority for the Colorado collegeinvest
scholarship program created in section 23-3.1-206.9 (1) or for the
PAGE 4-SENATE BILL 24-226 authority's matching grant program.
(b) The authority shall designate kickstarter funding in the master
account for each eligible child upon receiving notice of the birth or adoption
of the eligible child from the office of the state registrar of vital statistics in
the department of public health and environment, created in section
25-2-103 (1), as required by section 25-2-112 (8). The authority shall
initially invest the kickstarter funding in its stable value plus plan or any
successor plan that has a similar investment strategy. A
N ACCOUNT SPONSOR
SHALL IDENTIFY AN INDIVIDUAL COLLEGE SAVINGS ACCOUNT THAT NAMES
THE ELIGIBLE CHILD AS THE BENEFICIARY WHEN CLAIMING KICKSTARTER
FUNDING FOR THE ELIGIBLE CHILD
. THE ACCOUNT SPONSOR MAY OPEN AN
INDIVIDUAL COLLEGE SAVINGS ACC OUNT WITHOUT MAKING ANY
ADDITIONAL CONTRIBUTION BEYOND KICKSTARTER FUNDING
. If the parent
or parents of an eligible child open an account, which they may do without
making any additional contribution, that names the child as the beneficiary
AN ACCOUNT SPONSOR MAY CLAIM KICKSTARTER FUNDING FOR AN ELIGIBLE
CHILD
within five
EIGHT years of the date of the eligible child's birth or
adoption,
AT WHICH TIME the authority shall transfer the kickstarter funding
designated for the eligible child and any associated interest
from the master
account to the eligible child's
INDIVIDUAL COLLEGE SAVINGS account. If theparent or parents of AN ACCOUNT SPONSOR FOR an eligible child do DOES not
open an
INDIVIDUAL COLLEGE SAVINGS account that names the eligible child
as a beneficiary
AND CLAIMS KICKSTARTER FUNDING within five
EIGHT years
of the eligible child's birth or adoption, any money in the master account
that was designated for the eligible child remains in the master account and
may be designated for another eligible child. Kickstarter funding and any
associated interest, whether it is designated for an eligible child in the
master account or in an
INDIVIDUAL COLLEGE SAVINGS account that names
an eligible child as the beneficiary, is excluded from the income of the
eligible child and the parent or parents of
AN ACCOUNT SPONSOR FOR the
eligible child for purposes of determining eligibility or benefits amounts for
any state-funded program.
(c) The authority, in consultation with the advisory board created in
subsection (3) of this section, shall develop and, no later than November 1,
2019, NOVEMBER 1, 2024, obtain the approval of the department to
implement, directly or through a contractor, a comprehensive and robust
marketing and outreach plan to make the parent or parents of each eligible
child aware of the kickstarter program and encourage them to claim the
PAGE 5-SENATE BILL 24-226 kickstarter funding designated for their eligible child by enrolling in an
INDIVIDUAL COLLEGE SAVINGS account. The marketing and outreach plan
shall include multiple strategies, including grants to appropriate
community-based nonprofit organizations, to specifically target low- and
middle-income families who may be less likely than wealthier families to
already be aware of the authority and the availability of accounts. Upon
making initial contact with the parent or parents of
AN ACCOUNT SPONSOR
FOR
an eligible child, the authority or its contractor shall:
(I) Educate the parent or parents
ACCOUNT SPONSOR as to how to
claim the designated kickstarter funding for their AN eligible child by
enrolling in an
INDIVIDUAL COLLEGE SAVINGS account, make future
contributions to the account, choose from available fund options for the
investment of the
INDIVIDUAL COLLEGE SAVINGS account, and contact the
authority regarding questions concerning the
INDIVIDUAL COLLEGE SAVINGS
account;
(II) Advise the parent or parents
ACCOUNT SPONSOR of the
opportunity to take any financial literacy education program provided by the
state treasurer as authorized in subsection (5) of this section; and
(5) If, in the sole discretion of the state treasurer, adequate gifts,
grants, and donations are received, the kickstarter program may include a
free program for financial literacy education for eligible children and their
parent or parents AN ACCOUNT SPONSOR and other family members OF THE
ELIGIBLE CHILD
. The state treasurer shall develop and administer any
program for financial literacy education included in the kickstarter program.
(6) The authority shall conduct an ongoing summative evaluation to
collect summative data to evaluate the kickstarter program's effectiveness
over time. The authority shall prepare, present
DURING THE DEPARTMENT'S
"SMART ACT" HEARING IN ACCORDANCE WITH SECTION 2-7-203 to the
committees of reference of the general assembly to which the department
is assigned, pursuant to section 2-7-203 (1),
and conspicuously post on its
website an annual written report on the results of the ongoing summative
evaluation, which report shall include, at a minimum:
(a) A descriptive and evaluative summary of the marketing and
outreach plan for the kickstarter program developed and implemented as
required by subsection (4)(c) of this section, including a description of the
PAGE 6-SENATE BILL 24-226 strategies used and an assessment of the successes and failures of the plan
generally and of the individual strategies used; and
(b) Statistical summaries of the usage of the kickstarter program
both for the past calendar year and for the life of the program that include:
(II) The number of eligible children, and the percentage of all
eligible children, for whom the parent or parents AN ACCOUNT SPONSOR
claimed kickstarter funding; by opening accounts
(III) The number of families who had not opened an account for any
of their children before January 1, 2020, who opened an account for an
eligible child or for any of their other children on or after January 1, 2020,
and the total number of accounts opened by such families;
(IV) To the extent that such information is available, The number
of accounts opened CLAIMS FOR KICKSTARTER FUNDING for both eligible
children and other children by low-income, middle-income, and
high-income families AN ACCOUNT SPONSOR CATEGORIZED BY INCOME
LEVELS
;
(V) The number of accounts opened for both
ACCOUNT SPONSORS
CLAIMING KICKSTARTER FUNDING FOR AN
eligible children and otherchildren, CHILD, and the percentage of all accounts opened for both eligible
children and for other children FOR WHOM NO CLAIM FOR KICKSTARTER
FUNDING HAS BEEN MADE
, in each county; and
(VI) The number and percentage of all families claiming kickstarterfunding for an eligible child; by opening an account:
(A) Who did not make additional contributions to the account; and
(B) Who did, or for whom others did, make additional contributions
to the account.
(VII) THE AGE OF ELIGIBLE CHILDREN WHEN THE ACCOUNT SPONSOR
CLAIMS KICKSTARTER FUNDING
;
(c) A
SUMMARY OF GRANTS DISTRIBUTED TO APPROPRIATE
COMMUNITY
-BASED NONPROFIT ORGANIZATIONS PURSUANT TO SUBSECTION
PAGE 7-SENATE BILL 24-226 (4)(c) OF THIS SECTION AND A LIST OF THE GRANTEES; AND
(d) PROJECTIONS OF THE SOLVENCY OF KICKSTARTER FUNDING IN
THE MASTER ACCOUNT
, BASED ON FACTORS INCLUDING THE ACCRUED
INTEREST IN THE MASTER ACCOUNT
.
(7) The kickstarter program is intended to be a public-private
partnership, with the authority designating kickstarter funding for each
eligible child within the master account and transferring the kickstarter
funding into an individual college savings account for each eligible child
when the parent or parents of
AN ACCOUNT SPONSOR FOR the eligible child
claim CLAIMS the kickstarter funding by opening the INDIVIDUAL COLLEGE
SAVINGS
account and the state treasurer working with a private partner to
develop a free program of financial literacy education for eligible children
and their parent or parents
AN ACCOUNT SPONSOR and other family members
OF THE ELIGIBLE CHILD. The state treasurer may seek to enter into
agreements with private foundations or other entities to fund, develop, and
implement the financial literacy education program component of the
kickstarter program, and the authority may seek to enter into agreements
with such private foundations or other entities to provide additional funding
for the kickstarter program.
(8) (c) The authority may expend money from the fund for any
kickstarter program purpose, and the state treasurer may expend money
from the fund for the purpose of developing and implementing a free
program of financial literacy education for eligible children and their parent
or parents AN ACCOUNT SPONSOR and other family members OF THE
ELIGIBLE CHILD
as authorized in subsection (5) of this section.
SECTION 2. In Colorado Revised Statutes, 25-2-112, amend (8)
as follows:
25-2-112. Certificates of birth - filing - establishment of
parentage - notice to collegeinvest. (8) On or before February 15, 2020,
and on or before the fifteenth day of each month thereafter, the state
registrar shall provide to the director of collegeinvest the name of each
eligible child, as defined in section 23-3.1-306.5 (2)(a)
SECTION
23.3-1-306.5 (2)(a.7), born or adopted during the prior calendar month, the date and location of the birth or adoption, and the name and mailing address of the parent or parents, as defined in section 23-3.1-306.5 (2)(g), of the
PAGE 8-SENATE BILL 24-226 eligible child listed on the eligible child's certificate of birth or the report of
adoption forwarded to the state registrar as required by section 25-2-107 (1).
SECTION 3. Effective date. This act takes effect upon passage;
except that section 23-3.1-306.5 (2)(a.5), (2)(c.5), and (2)(d), Colorado
Revised Statutes, as enacted in section 1 of this act, takes effect January 1,
2025.
SECTION 4. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
PAGE 9-SENATE BILL 24-226 the support and maintenance of the departments of the state and state
institutions.
____________________________ ____________________________
Steve Fenberg Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 10-SENATE BILL 24-226