ARTICLE 19.5. California Kids Investment and Development Savings Program [69996 - 69996.9]
( Article 19.5 added by Stats. 2019, Ch. 53, Sec. 16. )
This article shall be known, and may be cited, as the California Kids Investment and Development Savings Program or KIDS Program.
(Added by Stats. 2019, Ch. 53, Sec. 16. (SB 77) Effective July 1, 2019.)
The California Kids Investment and Development Savings Program is hereby established. The board shall administer the program for the purposes of expanding access to higher education through savings.
(Added by Stats. 2019, Ch. 53, Sec. 16. (SB 77) Effective July 1, 2019.)
For purposes of this article, unless the context requires otherwise, the following definitions apply:
(a) “Account” means a Scholarshare 529 account established pursuant to this article under Article 19 (commencing with Section 69980), or other child savings plan where applicable and as determined by the board.
(b) “Beneficiary” is an eligible child receiving funds under the program.
(c) “Board” means the Scholarshare Investment Board created pursuant to Section 69984.
(d) “Enhanced deposit” means an initial
or supplemental contribution into a KIDS Account or another plan option determined by the board pursuant to Section 69996.9.
(e) “Fund” means the California Kids Investment and Development Savings Program Fund established pursuant to subdivision (a) of Section 69996.6.
(f) “Institution of higher education” has the same meaning as “eligible educational institution,” as provided in Section 529(e)(5) of the Internal Revenue Code, and registered apprenticeship programs registered under the National Apprenticeship Act of 1937 (29 U.S.C. Sec. 50 et seq.), except as provided in Section 3226 of Title 29 of the United States Code.
(g) “Internal Revenue Code” means the Internal Revenue Code of 1986, as it is amended from
time to time, if, as determined by the board, the amendment is consistent with the purposes of this article.
(h) “KIDS Account” means an account in which designated funding for eligible children is held.
(i) “Low-income households” means households with a total annual adjusted gross income less than seventy-five thousand dollars ($75,000) or households identified by the board by other means as low-income for purposes of the program.
(j) “Participant” means
one of the following:
(1) A parent or legal guardian of an eligible child.
(2) A parent or legal guardian of a child described in subdivision (i) of Section 69996.3.
(3) Any private individual or entity who contributes moneys to the program.
(k) “Program” means the California Kids Investment and Development Savings Program established pursuant to this article.
(l) “Qualified higher education expenses” means the expenses of attendance at an institution of higher education, as provided in Section 529(e)(3) of the Internal Revenue
Code, or at a registered apprenticeship program, as provided in Section 529(c)(8) of the Internal Revenue Code. Notwithstanding Section 529(c)(7) of the Internal Revenue Code, “qualified higher education expenses” shall not include any tuition expenses in connection with enrollment or attendance at an elementary or secondary public, private, or religious school.
(m) “Seed deposit” means an initial contribution into a KIDS Account for a child born on or after a date determined by the board.
(Amended by Stats. 2022, Ch. 54, Sec. 20. (AB 183) Effective June 30, 2022.)
(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 child’s name and birth date and the name and contact information of each parent of the child, including the parent’s
street address and, if provided to the department, the parent’s 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 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 shall establish rules and regulations for a program recipient child, and the child’s parents or legal guardians, to be notified of the moneys deposited and accrued in the child’s 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 child’s parents or legal guardians shall be informed of the establishment of the child’s 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 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.
Before the 2023–24 fiscal year, each seed deposit shall be at least twenty-five dollars ($25). Commencing with the 2023–24 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 student’s 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 child’s 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 child’s 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) 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) 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. 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 2021–22 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.
(Amended by Stats. 2023, Ch. 50, Sec. 7. (SB 117) Effective July 10, 2023.)
The board shall have the power and authority to do all of the following:
(a) Sue and be sued.
(b) Make and enter into contracts necessary for the implementation and administration of the program.
(c) Cause moneys in the fund to be held and invested and reinvested.
(d) Enter into agreements with any institution of higher education or any federal or state agency or other entity as required for the effectuation of its rights and duties.
(e) Accept any grants, gifts, appropriations, and other moneys from any unit
of federal, state, or local government or any other person, firm, partnership, or corporation for deposit to the fund.
(f) Make payments to institutions of higher education on behalf of beneficiaries.
(g) Make provisions for the payment of costs of administration and operation of the program.
(h) Carry out the duties and obligations of the program pursuant to this article and have all other powers as may be necessary for the effectuation of the purposes, objectives, and provisions of this article.
(i) Carry out studies and projections to advise participants regarding present and estimated future higher education expenses.
(j) Contract for goods and services and engage personnel, including
consultants, actuaries, managers, counsel, and auditors, as necessary for the purpose of rendering professional, managerial, and technical assistance and advice.
(k) Participate in any federal, state, or local governmental program for the benefit of the program.
(l) Procure insurance against any loss in connection with the property, assets, or activities of the program.
(m) Administer the funds of the program.
(n) Adopt regulations for the implementation and administration of the program.
(Added by Stats. 2019, Ch. 53, Sec. 16. (SB 77) Effective July 1, 2019.)
The board may consider marketing the program to California residents. The board may include in its marketing efforts information designed to educate California residents about the benefits of saving for higher education and information to help them decide the combination of savings strategies that may be appropriate for them.
(Added by Stats. 2019, Ch. 53, Sec. 16. (SB 77) Effective July 1, 2019.)
(a) The California Kids Investment and Development Savings Program Fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, except for moneys derived from the federal American Rescue Plan Act, moneys in the fund shall be continuously appropriated, without regard to fiscal years, to the board for the program. The fund shall be the initial repository of all appropriations, gifts, or other financial assets received by the board in connection with operation of the program.
(b) (1) Subject to available funding, the program shall be implemented on or before July 1, 2022. The board may establish an implementation timeline for the program based on available funding. If the board does not secure adequate
funds to implement the program before July 2, 2022, program implementation may be delayed while the board makes good faith efforts to secure necessary funding. The board may accept gifts, grants, awards, matching contributions, interest income, and appropriations from individuals, businesses, state and local governmental entities, and third-party sources for the program on terms the board deems advisable.
(2) Before the program is implemented and throughout the program’s operation, the board may authorize a county, city, nonprofit organization, or any other entity operating a local child savings account program to provide input to the program established pursuant to this article. The input may include, but is not limited to, information on any of the following:
(A) Infrastructure and systems development.
(B) Outreach
and coordination with local child savings account programs.
(C) Program incentives to promote equity.
(D) Administrative fees and caps.
(E) Contribution strategies.
(F) Program accessibility, including language, identification, and banking access.
(c) On or before June 30, 2023, and on or before September 30 annually thereafter, the board shall report to the Department of Finance and the Legislature, pursuant to Section 9795 of the Government Code, information pertaining to the program’s implementation. The report shall include, at a minimum, all of the following:
(1) Detailed program expenditure information, including the
amount of funds expended to establish KIDS Accounts pursuant to this article in the previous five fiscal years.
(2) The number of KIDS Accounts opened and state and nonstate contributions made to KIDS Accounts.
(3) Information about how parents were notified pursuant to subdivision (b) of Section 69996.3.
(4) The number of parents or legal guardians who engage with KIDS Accounts by verifying receipt of information provided to them pursuant to paragraph (2) of subdivision (b) of Section 69996.3, establishing separate accounts pursuant to Article 19 (commencing with Section 69980), or engaging with KIDS Accounts by other means approved by the board.
(5) A description of the board’s efforts and success in soliciting philanthropic or nonstate money to
support the program.
(6) A description of the board’s marketing of the program.
(7) The rate of investment return earned by the money authorized by this article in the previous five fiscal years.
(8) To the extent that information is available and can be disclosed without providing any opportunity to associate the information with particular individuals, the board shall include information on the ethnicity, gender, and family income of account recipients.
(9) Recommendations for improving the program.
(Amended by Stats. 2023, Ch. 195, Sec. 4. (SB 142) Effective September 13, 2023.)
(a) Funds appropriated pursuant to Schedule 1 of Item 0954-162-8506 of Section 2.00 of the Budget Act of 2021 shall be used to support program enhanced deposits and to establish KIDS Accounts for eligible children who do not already have a KIDS Account established. For the 2021–22 fiscal year, funds appropriated pursuant to Provision 2 of Item 0954-101-0001 of Section 2.00 of the Budget Act of 2021 shall be used to support program enhanced deposits and to establish KIDS Accounts for eligible children that are ineligible to receive funds appropriated pursuant to Schedule 1 of Item 0954-162-8506 of Section 2.00 of the Budget Act of 2021. Commencing with the 2022–23 fiscal year, funds appropriated pursuant to Provision 2 of Item 0954-101-0001 of Section 2.00 of the annual Budget Act shall be used to support
program enhanced deposits and to establish KIDS Accounts for eligible children who do not already have a KIDS Account established.
(b) All assets of the fund and moneys allocated to individual KIDS Accounts shall be considered to be owned by the state until used for the payment of qualified higher education expenses at an institution of higher education.
(c) Deposits made to the fund or disbursements from the fund allocated to individual participant KIDS Accounts shall be invested through a Scholarshare 529 account or through another investment plan determined by the board.
(d) This article shall not be construed to prevent any child from seeking private or other funding sources to supplement the amount of funds deposited in the child’s KIDS Account.
(e) Notwithstanding any other law, funds deposited and investment returns accrued in a KIDS Account established pursuant to this article shall augment and not supplant student financial aid from other public sources, and shall not be considered when calculating eligibility for student financial aid.
(f) Notwithstanding any other law, funds deposited and investment returns accrued in a KIDS Account established pursuant to this article and claimed by a recipient pursuant to this article shall be exempt from state income tax liability.
(g) To the extent permissible under federal law, funds deposited and investment returns accrued in a KIDS Account established pursuant to this article shall not be considered in the federal needs analysis for student financial aid, as they shall be considered an asset of the state until used for the payment of qualified higher education
expenses at an institution of higher education.
(Added by Stats. 2021, Ch. 144, Sec. 54. (AB 132) Effective July 27, 2021.)
(a) The board may establish rules and regulations to ensure that money in a KIDS Account established pursuant to this article is disbursed directly to the institution of higher education indicated on the award recipient’s claim form. These rules and regulations, if established, shall ensure that the program meets all applicable criteria for federal tax-deferral benefits, federal tax-exempt benefits, or both.
(b) Moneys in the fund or in KIDS Accounts authorized under this article are nontransferable to any person other than the award recipient or any other entity than the institution of higher education indicated on the award recipient’s claim form, and may only be used for the purposes stated in this article. Moneys in the fund or in KIDS
Accounts authorized by this article shall not be pledged as collateral for any loan.
(c) The board shall request each KIDS Account recipient or their parent or legal guardian to voluntarily report personal information about the award recipient, including, but not limited to, ethnicity, gender, and family income. The board shall compile and retain that information in a confidential manner so that the personal information of any award recipient is not publicly disclosed in a manner that may be associated with a particular individual.
(Added by Stats. 2021, Ch. 144, Sec. 55. (AB 132) Effective July 27, 2021.)
(a) (1) For the 2021–22 fiscal year, through the program, all of the following shall occur:
(A) Each pupil enrolled in grades 1 to 12, inclusive, on the State Department of Education’s official census day in the 2021–22 fiscal year who meets the requirements to be considered an unduplicated pupil for purposes of paragraph (2) of subdivision (b) of Section 2574 or paragraph (1) of subdivision (b) of Section 42238.02 and who is enrolled at a school district, public charter school, state special school, or other local educational agency, shall have a KIDS Account established on the pupil’s behalf, unless the pupil’s KIDS Account has already been established pursuant to
Section 69996.3, and shall receive an enhanced deposit into the pupil’s KIDS Account in the amount of five hundred dollars ($500).
(B) In addition to the amount allocated pursuant to subparagraph (A), the KIDS Account of each eligible pupil who is also a foster youth, as defined under subdivision (b) of Section 42238.01, shall receive an enhanced deposit of an additional five hundred dollars ($500).
(C) In addition to the amount allocated pursuant to subparagraphs (A) and (B), the KIDS Account of each eligible pupil who is also a homeless pupil meeting the definition of “homeless children and youths” in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)) shall receive an enhanced deposit of an additional five
hundred dollars ($500).
(2) Commencing with the 2022–23 fiscal year, through the program, all of the following shall occur:
(A) Each pupil who meets all of the following conditions shall have a KIDS Account opened on their behalf, unless their account has already been established pursuant to Section 69996.3, and shall receive an enhanced deposit into their KIDS Account in the amount of five hundred dollars ($500):
(i) The pupil is enrolled in first grade on the State Department of Education’s official census day in the applicable fiscal year.
(ii) The pupil meets the requirements to be considered an unduplicated pupil for purposes of paragraph (2) of subdivision (b)
of Section 2574 or paragraph (1) of subdivision (b) of Section 42238.02.
(iii) The pupil is enrolled at a school district, public charter school, state special school, or other local educational agency.
(B) In addition to the amount allocated pursuant to subparagraph (A), the KIDS Account of each pupil who meets the requirements of subparagraph (A) and is also a foster youth, as defined under subdivision (b) of Section 42238.01, shall receive an enhanced deposit of an additional five hundred dollars ($500).
(C) In addition to the amount allocated pursuant to subparagraphs (A) and (B), the KIDS Account of each pupil who meets the requirements of subparagraph (A) and is also a homeless pupil under the definition of “homeless
children and youths” in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)) shall receive an enhanced deposit of an additional five hundred dollars ($500).
(D) For pupils for whom a KIDS Account has already been established pursuant to Section 69996.3 and who are also eligible for an enhanced deposit pursuant to this paragraph, the enhanced deposit shall be deposited in the KIDS Account in which funding for that pupil is currently held.
(3) (A) Commencing with the 2025–26 fiscal year, and subject to an appropriation by the Legislature, through the program, both of the following shall occur:
(i) (I) Each pupil who is a foster youth, as defined under subdivision (b) of Section 42238.01, and is enrolled in any of grades 1 to 12, inclusive, at a school district, public charter school, state special school, or other local educational agency, shall have a KIDS Account opened on their behalf, unless their account has already been established pursuant to Section 69996.3, and shall receive an enhanced deposit of an additional five hundred dollars ($500).
(II) Each foster youth pupil described in subclause (I) who did not previously receive a deposit pursuant to either subparagraph (A) of paragraph (1) of subdivision (a), or subparagraph (A) of paragraph (2) of subdivision (a), shall further receive an enhanced deposit of five hundred dollars ($500) in addition to the deposit pursuant to subclause (I).
(III) Upon receiving an enhanced deposit pursuant to
subclause (I) or (II)
in any fiscal year, a pupil shall not be eligible for an enhanced deposit pursuant to subclause (I) or (II) in any subsequent fiscal year.
(ii) For pupils for whom a KIDS Account has already been established pursuant to Section 69996.3 and who are also eligible for an enhanced deposit pursuant to this
subparagraph, the enhanced deposit shall be deposited in the KIDS Account in which funding for that pupil is currently held.
(B) This paragraph shall become inoperative on January 1, 2029.
(4) (A) A pupil who receives an enhanced deposit into their KIDS Account pursuant to paragraph (1) or (2) may only have one enhanced deposit made into their existing or newly established KIDS Account pursuant to this article, except as provided for in subparagraph (B). A pupil shall not have more than one KIDS Account established for them pursuant to this article.
(B) Notwithstanding
subparagraph (A), a pupil who receives an enhanced deposit into their KIDS Account pursuant to subparagraph (A) or (C) of paragraph (1), or a pupil who receives an enhanced deposit pursuant to subparagraph (A) or (C) of paragraph (2), may also receive enhanced deposits pursuant to paragraph (3).
(b) (1) The board shall collaborate with the State Department of Education, or other relevant governmental agencies, to identify eligible pupils for the purpose of establishing KIDS Accounts or making an enhanced deposit into existing KIDS Accounts pursuant to this section. To the extent feasible, the State Department of Education shall annually provide necessary data using census day data in a secure manner for the board to fulfill its obligations pursuant to this article, including, but not necessarily limited to, eligible
pupils’ names, pupil identification, birth dates, grade levels, contact information of parents or legal guardians, and eligibility information. For purposes of this subdivision, the information received by the board shall be considered necessary to facilitate the establishment or enhancement of KIDS Accounts, or the establishment of a notification process for parents or legal guardians of eligible pupils.
(2) The board shall comply with federal and state laws to protect individual privacy, including, but not limited to, the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code) and all of the following federal statutes:
(A) The Family Educational Rights and Privacy Act of 1974 (Public Law 93-380, as amended).
(B) The Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191, as amended).
(C) The Higher Education Act of 1965 (Public Law 89-329, as amended).
(3) Notwithstanding any other law, individual records or source data associated with the establishment of a KIDS Account pursuant to this article shall not be subject to disclosure under the California Public
Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(c) The Legislature finds and declares that undocumented persons are eligible for KIDS Accounts within the meaning of subsection (d) of Section 1621 of Title 8 of the United States Code.
(d) It is the intent of the Legislature to appropriate state funding in the annual Budget Act to support the establishment of a KIDS Account for any eligible pupil who meets, or could meet in a future year, the requirements to be exempt from nonresident tuition pursuant to subdivision (a) of Section 68130.5.
(e) (1) For the 2023–24 and 2024–25 fiscal years, the board shall partner with the Los Angeles Unified School District and
the Riverside County Office of Education, including the 23 school districts in the County of Riverside, to explore ways to increase participation in the KIDS Program.
(2) As permissible under federal and state data privacy and data security laws, the board shall provide the local educational agencies specified in paragraph (1) with the statewide student identifiers of pupils within their respective jurisdictions who have not yet engaged with the KIDS Account established on their behalf commencing with the 2021–22 fiscal year. The board shall provide data at least three times per year to the extent feasible. Upon receipt of this data, the local educational agencies shall be responsible for complying with all applicable federal and state data privacy and data security laws relating to pupil record information.
(3) The board shall comply with federal and state laws to protect individual privacy, including, but not limited to, the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code) and all of the following federal statutes:
(A) The Family Educational Rights and Privacy Act of 1974 (Public Law 93-380, as amended).
(B) The Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191, as amended).
(C) The Higher Education Act of 1965 (Public Law 89-329, as amended).
(4) (A) On or before
September 30, 2025, the board, in collaboration with the local educational agencies specified in paragraph (1), shall submit a report to the Department of Finance and the Legislature, pursuant to Section 9795 of the Government Code. The report shall include, at a minimum, all of the following:
(i) The number of KIDS Program participants within the jurisdictions of the partnering local educational agencies that have registered on the program’s online portal and the number that have linked their KIDS Account to a Scholarshare 529 account.
(ii) The number of KIDS Program participants within the jurisdictions of the partnering local educational agencies that have requested a distribution of funds for qualified higher education expenses and the total amount of those payments.
(iii) A comparison of the rates specified in clauses (i) and (ii) with the rates of KIDS Program participants statewide.
(iv) As provided by the partnering local educational agencies, a description of the outreach strategies they implemented that were aimed at increasing participation in the KIDS Program, along with any information available on the direct impact of each of those strategies.
(v) Recommendations for improving KIDS Program structure and outreach in collaboration with local educational agencies.
(B) The board may include this information in its annual report on the KIDS Program pursuant to subdivision (c) of Section 69996.6.
(5) This subdivision shall become inoperative on July 1, 2025.
(Amended by Stats. 2024, Ch. 622, Sec. 1. (AB 2508) Effective January 1, 2025.)