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AB-15 Student financial aid: California Kids Investment and Development Savings Program.(2019-2020)

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Date Published: 07/02/2020 09:00 PM
AB15:v95#DOCUMENT

Amended  IN  Senate  July 02, 2020
Amended  IN  Assembly  May 17, 2019
Amended  IN  Assembly  March 25, 2019
Amended  IN  Assembly  March 14, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 15


Introduced by Assembly Members Nazarian, McCarty, and Ting Member Nazarian
(Coauthors: Assembly Members Berman, Friedman, Gabriel, Levine, and Blanca Rubio)(Coauthors: Senators Allen, Glazer, and Jackson)

December 03, 2018


An act to add Article 19.5 (commencing with Section 69996) to Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, relating to student financial aid, and making an appropriation therefor. amend Section 69996.3 of the Education Code, and to amend Section 102425 of the Health and Safety Code, relating to student financial aid, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 15, as amended, Nazarian. Student financial aid: Children’s Savings Account Program. California Kids Investment and Development Savings Program.
(1) Existing law establishes the California Kids Investment and Development Savings Program, under the administration of the Scholarshare Investment Board, for the purposes of expanding access to higher education through savings. The program requires the State Department of Public Health to provide the board with identifiable birth data, as specified. The program establishes the California Kids Investment and Development Savings Program Fund in the State Treasury to serve as the initial repository of all moneys received from state and private sources for the program, and continuously appropriates moneys in the fund to the board for the program. Subject to available moneys in the fund, the program requires the board to establish one or more Scholarshare 529 accounts and make a seed deposit of moneys from the fund into a Scholarshare 529 account, as specified, in an amount of at least $25, as determined by the board. The program requires those moneys to be deposited in subaccounts, one designated for each California resident child born on or after January 1, 2020, and who is a California resident at the time of birth, except as specified. Existing law authorizes a parent or legal guardian currently residing in California to apply to the board to enroll in the program a child who is a current California resident under 10 years of age who either was born a California resident prior to July 1, 2020, or was not a California resident at the time of birth. Existing law, subject to sufficient moneys in the fund, authorizes additional incentive payments from the fund, including, among others, incentives targeting low-income households, as defined.
This bill would require the State Department of Public Health, when providing the board with identifiable birth data, to additionally provide a child’s parents’ mobile telephone number and email address. The bill instead would authorize a parent or legal guardian currently residing in California to apply to the board to enroll in the program a child who is a California resident and who both was born on or after July 1, 2020, and was not a California resident at the time of birth. The bill would require the California Health and Human Services Agency, in consultation with the board, to establish a mechanism to expand the childbirth data report required to be produced by the State Department of Public Health and shared with the board to include information to assist the board in determining which families on the report are to be considered low-income households, as defined, based on specified criteria for the purposes of offering progressive financial incentives as part of the program. The bill makes various technical, conforming changes. By expanding the duties of the board and the purposes of an existing continuous appropriation, the bill would make an appropriation.
(2) Existing law prescribes the duties of the State Registrar of Vital Statistics and local registrars of births and deaths with respect to the registration of certificates of live birth, fetal death, or death, and marriage licenses. Existing law requires the certificate of live birth to contain specified medical and social information, provided that the information is kept confidential, as specified.
This bill would additionally require a certificate of live birth to contain the email address and mobile telephone number of each parent, provided that the information is kept confidential, as specified.

Under existing law, the segments of postsecondary education in this state are the University of California, the California State University, the California Community Colleges, independent institutions of higher education, and private postsecondary educational institutions. The Golden State Scholarshare Trust Act establishes the Golden State Scholarshare Trust, under the administration of the Scholarshare Investment Board.

This bill would establish the Children’s Savings Account Program, under the administration of the board, for the purposes of expanding access to higher education through savings. The program would establish the Children’s Savings Account Program Fund in the State Treasury to serve as the initial repository of all moneys received from state and private sources for the program, and would continuously appropriate moneys in the fund to the board for the program. Subject to available moneys in the fund, the bill would require the board to establish one or more Scholarshare 529 accounts and make a seed deposit of moneys from the fund into a Scholarshare 529 account established pursuant to the bill’s provisions in an amount of at least $25, as determined by the board. Specifically, those moneys would be deposited in subaccounts, one designated for each California resident child born on or after January 1, 2020, who is a California resident at the time of birth, except for children whose parents or legal guardians have opted out, as specified. Subject to sufficient moneys in the fund, the bill would authorize additional incentive payments from the fund, as specified. The bill would require the board to provide awards from these Scholarshare 529 accounts, as specified, for each participating child’s higher education expenses at an eligible institution of higher education. The bill would prescribe the powers and duties of the board to administer and implement the program. The bill would authorize the board to consider marketing the program to California residents, as specified. The bill would require the Director of Finance to determine, at the commencement of each fiscal year, whether there are sufficient funds to implement the program in that fiscal year, and to communicate this determination to the board in a timely manner each fiscal year.

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

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) Each child born on or after July 1, 2020, who is a California resident at the time of birth is eligible for the program.
(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, but not necessarily be limited to, the child’s name and birth date and the name and contact information of each parent of the child, including the parent’s street address. address, mobile telephone number, and email address. 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 each 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 contribution matching opportunities additional financial incentives provided pursuant to that article.
(c) The board shall make a child’s designated balance in a KIDS Account viewable by the child’s parent or legal guardian through a secured internet link.
(d) The board may periodically inform a child’s parent or legal guardian of the balance of a KIDS Account, including earnings designated for the child, information on how the parent or legal guardian may establish a separate account pursuant to Article 19 (commencing with Section 69980), and information on contribution matching opportunities additional 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 child’s 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. Each seed deposit shall be at least twenty-five dollars ($25). The board may provide additional seed funding 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 receiving documentation of a child’s enrollment as a student at an institution of higher education, the board shall make a payment to that institution in the amount of the seed deposit and any additional incentives designated for the child pursuant to subdivision subdivisions (f), (h), and (i), 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 child’s attendance at that institution.
(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 10 years of age who was either both of the following:
(A) Born a California resident before on or after July 1, 2020.
(B) Not a California resident at the time of birth.
(j) (1) If a beneficiary does not use any portion, or all, of the funds 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 funds 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) 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 child’s 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.
(m) The California Health and Human Services Agency, in consultation with the board, shall establish a mechanism to expand the childbirth data report required to be produced by the State Department of Public Health and shared with the board pursuant to subdivision (b) to include information to assist the board in determining which families on the report are to be considered low-income households, based on the criteria established for existing means-tested programs overseen by the California Health and Human Services Agency, and the departments the California Health and Human Services Agency oversees, for the purposes of offering progressive financial incentives as part of the program.

SEC. 2.

 Section 102425 of the Health and Safety Code is amended to read:

102425.
 (a) The certificate of live birth for a live birth occurring on or after January 1, 2016, shall contain those items necessary to establish the fact of the birth and shall contain only the following information:
(1) Full name and sex of the child.
(2) Date of birth, including month, day, hour, and year.
(3) Place of birth.
(4) Full name, birthplace, and date of birth of each parent, including month, day, and year, and the parental relationship of the parent to the child.
(A) The full name of the mother shall be the birth name of the mother.
(B) If the birth mother is one of the parents listed on the certificate of live birth, the birth mother’s name shall be placed on the second parent line.
(C) If the parents are not married to each other, the name of the person identified by the woman giving birth as either the only possible genetic parent other than the woman giving birth or the intended parent of a child conceived through assisted reproduction shall not be listed on the birth certificate unless the woman who gave birth to the child and either the only possible genetic parent other than the woman who gave birth or the intended parent of a child conceived through assisted reproduction sign a voluntary declaration of parentage at the hospital before the birth certificate is submitted for registration. The birth certificate may be amended to add another parent’s name at a later date only if parentage for the child has been established by a judgment of a court of competent jurisdiction or by the filing of a voluntary declaration of parentage.
(5) Multiple births and birth order of multiple births.
(6) Signature, and relationship to the child, of a parent or other informant, and date signed.
(7) Name, title, and mailing address of the attending physician and surgeon or principal attendant, signature, and certification of live birth by the attending physician and surgeon or principal attendant or certifier, date signed, and name and title of the certifier, if other than the attending physician and surgeon or principal attendant.
(8) Date accepted for registration and signature of local registrar.
(9) A state birth certificate number and local registration district and number.
(10) A blank space for entry of the date of death with a caption reading “Date of Death.”
(b) In addition to the items listed in subdivision (a), the certificate of live birth shall contain the following medical and social information, provided that the information is kept confidential pursuant to Sections 102430 and 102447 and is clearly labeled “Confidential Information for Public Health Use Only:”
(1) Birth weight.
(2) Pregnancy history.
(3) Race and ethnicity of the mother and any other parent.
(4) Residence address of the birth mother.
(5) A blank space for entry of census tract for the birth mother’s address.
(6) Date of first prenatal care visit, the number of prenatal care visits, and commencing January 1, 2007, the date of last prenatal care visit.
(7) Date of last normal menses and, commencing January 1, 2007, an obstetric estimate of completed weeks of gestation at delivery.
(8) Description of complications and procedures of pregnancy and concurrent illnesses, congenital malformation, and any complication or procedure of labor and delivery, including surgery, provided that this information is essential medical information and appears in total on the face of the certificate.
(9) Commencing January 1, 2007, hearing Hearing screen results.
(10) The occupations of the mother and father or parent and kind of business or industry.
(11) Education level of the mother and father or parent.
(12) Principal source of payment for prenatal care, which shall include the following: Medi-Cal, private insurance, self-pay, other sources, and any other categories determined by the State Department of Public Health.
(13) Expected principal source of payment for delivery, which shall include the following: Medi-Cal, private insurance, self-pay, other sources, and any other categories determined by the State Department of Public Health.
(14) An indication of whether or not the child’s parent desires the automatic issuance of a social security number to the child.
(15) On and after January 1, 1995, the The social security numbers of the mother and father or parent, unless subdivision (d) applies.
(16) Email address of each parent.
(17) Mobile telephone number of each parent.
(c) When an objection is made by either parent to the furnishing of the information specified in paragraphs (3), (10), and (11) of subdivision (b) for the confidential portion of the certificate of live birth, this information shall not be required to be entered on that portion of the certificate of live birth.
(d) A parent is not required to disclose the parent’s social security number as required by paragraph (15) of subdivision (b) if the parent has good cause for not disclosing the parent’s social security number. Good cause shall be defined by regulations adopted by the Department of Child Support Services.
(e) Paragraph (8) of subdivision (b) shall be completed by the attending physician and surgeon or the attending physician and surgeon’s designated representative. The names and addresses of children born with congenital malformations who require followup treatment, as determined by the child’s physician and surgeon, shall be furnished by the physician and surgeon to the local health officer, if permission is granted by either parent of the child.
(f) The parent shall only be asked to sign the form after both the public portion and the confidential medical and social information items have been entered upon the certificate of live birth.
(g) (1) The State Registrar shall instruct all local registrars to collect the information specified in this section with respect to certificates of live birth. The information shall be transcribed on the certificate of live birth in use at the time and shall be limited to the information specified in this section.
(2) Information relating to concurrent illnesses, complications and procedures of pregnancy and delivery, and congenital malformations shall be completed by the physician and surgeon, or the physician and surgeon’s designee, who shall insert in the space provided on the confidential portion of the certificate the appropriate number or numbers listed on the VS-10A supplemental worksheet. The VS-10A supplemental form shall be used as a worksheet only and shall not in any manner be linked with the identity of the child or the birth mother, nor submitted with the certificate to the State Registrar. All information transferred from the worksheet to the certificate shall be fully explained to the parent or other informant prior to the signing of the certificate. Questions relating to drug or alcohol abuse shall not be asked.
(h) (1) The Vital Statistics Advisory Committee, in accordance with Section 102465, shall conduct a review of the contents of the certificate of live birth to coincide with decennial revisions by the National Center for Health Statistics to the United States Standard Certificate of Live Birth. The Vital Statistics Advisory Committee shall make recommendations to the State Registrar regarding the adoption of modifications to the state certificate of live birth that are similar to those made to the federal certificate.
(2) Notwithstanding Section 102470, the State Registrar shall review the Vital Statistics Advisory Committee recommendations and, at the State Registrar’s discretion, shall submit to the Legislature, for approval, additions or deletions to the certificate of live birth.