California Education Code 69996.7 – (a) Funds appropriated pursuant to Schedule 1 of Item …
(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.
Terms Used In California Education Code 69996.7
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
(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.)