text:
(a) The board shall submit an annual audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of the Scholarshare trust by October 31 to the Governor, the Controller, the State Auditor, and the Legislature. The annual audit shall be made by an independent certified public accountant, and shall include, but need not be limited to, direct and indirect costs attributable to the use of outside consultants, independent contractors, and any other persons who are not state employees. Any contributions to the Scholarshare trust that are not directed to a specified beneficiary shall be accounted for and treated separately in the annual audit.

(b) The annual audit shall be supplemented by the following information prepared by the board:

(1) Any studies or evaluations prepared in the preceding year.

(2) A summary of the benefits provided by the Scholarshare trust, including the number of participants and beneficiaries in the Scholarshare trust.

(3) Any other information that is relevant in order to make a full, fair, and effective disclosure of the operations of the Scholarshare trust.

history: (History: Amended by Stats. 2005, Ch. 318, Sec. 7. Effective January 1, 2006.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act


kind: section

code: EDC

text:
(a) The board shall provide an annual listing of distributions to individuals with respect to an interest in a participation agreement to the Franchise Tax Board at a time and in a manner and form as specified by the Franchise Tax Board. The taxpayers’ identification numbers obtained through the participation agreement process shall be used exclusively for state and federal tax administration purposes.

(b) The board shall make a report to the appropriate individual of any distribution to any individual with respect to an interest in a participation agreement, at a time and in a form and manner as required by the Franchise Tax Board.

(c) The board also shall report annually to each participant or beneficiary all of the following:

(1) The value of the beneficiary’s account.

(2) The interest earned thereon.

(3) The rate of return of the investments in the beneficiary’s account for that reporting period.

(4) Information on investments and education costs that participants can use to set savings goals and contribution amounts.

(5) Information regarding the trends in qualified higher education expenses at the state’s public segments of higher education, which shall include, but need not be limited to, the following:

(A) The actual increase or decrease in qualified higher education expenses in the prior year.

(B) To the extent possible, any proposals by the segments to increase or decrease fees or tuition in the next fiscal year.

(C) To the extent possible, any proposals by the Legislature or the Governor to increase or decrease fees or tuition in the next fiscal year.

(D) An Internet Web site and toll-free telephone number where the names of the State Senator and Assembly Member who represent the district in which the participant or beneficiary resides, and a business address and telephone number where they may be reached, may be accessed.

(d) The board, as an advocate for affordable higher education opportunities for participants and beneficiaries of the program, shall also provide a means for participants or beneficiaries to express concerns or comments regarding the Scholarshare trust program and any information required to be reported by this section.

history: (History: Amended by Stats. 2005, Ch. 318, Sec. 8. Effective January 1, 2006.)

division: 5. GENERAL PROVISIONS

part: 42. STUDENT FINANCIAL AID PROGRAM

title: 3. POSTSECONDARY EDUCATION

chapter: 2. Student Financial Aid Programs

article: 19. Golden State Scholarshare Trust Act

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 19. Golden State Scholarshare Trust Act


text: The assets of the trust, including the program fund, shall at all times be preserved, invested, and expended solely and only for the purposes of the trust and shall be held in trust for the participants and beneficiaries and no property rights therein shall exist in favor of the state. The assets shall not be transferred or used by the State of California for any purposes other than the purposes of the trust.

history: (History: Added by Stats. 1997, Ch. 851, Sec. 2. Effective January 1, 1998.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act


text: The board shall aggressively market this program to the citizens of the State of California. The board shall include in its marketing efforts information designed to educate citizens about the benefits of saving for higher education and information to help them decide the level of Scholarshare participation and the combination of savings strategies that may be appropriate for them. The board shall also develop a mechanism to keep participants in this program motivated about their current and future academic endeavors.

history: (History: Amended by Stats. 2005, Ch. 318, Sec. 9. Effective January 1, 2006.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act


text: Funding for startup and first-year administrative costs shall be appropriated from the General Fund in the annual Budget Act. The board shall repay, within five years, the amount appropriated, plus interest calculated at the rate earned by the Pooled Money Investment Account. Necessary administrative costs in future years shall be paid out of the administrative fund.

history: (History: Amended by Stats. 2005, Ch. 318, Sec. 10. Effective January 1, 2006.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act


text: The board may adopt regulations for the purposes of this chapter as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). For the purposes of the Administrative Procedure Act, including Section 11349.6 of the Government Code, the adoption of the regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare, notwithstanding subdivision (e) of Section 11346.1 of the Government Code. Notwithstanding subdivision (e) of Section 11346.1 of the Government Code, any regulation adopted pursuant to this section shall not remain in effect more than 180 days unless the board complies with rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), as required by subdivision (e) of Section 11346.1 of the Government Code.

history: (History: Amended by Stats. 1999, Ch. 664, Sec. 9. Effective January 1, 2000.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act


text: No public funds nor any funds available pursuant to this article may be expended to pay for, nor shall the board enter into any agreement that provides for, the appearance of any elected official or declared candidate for public office in any paid advertisement promoting the act.

history: (History: Added by Stats. 1999, Ch. 664, Sec. 10. Effective January 1, 2000.)

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act


text: This act shall be construed liberally in order to effectuate its legislative intent. The purposes of this act and all of its provisions with respect to powers granted shall be broadly interpreted to effectuate that intent and purposes and not as to any limitation of powers.

title: 3. POSTSECONDARY EDUCATION

article: 19. Golden State Scholarshare Trust Act


text: This article shall be known, and may be cited, as the California Kids Investment and Development Savings Program or KIDS Program.

history: (History: Added by Stats. 2019, Ch. 53, Sec. 16. (SB 77) Effective July 1, 2019.)

title: 3. POSTSECONDARY EDUCATION

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 19.5. California Kids Investment and Development Savings Program


text: 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.

title: 3. POSTSECONDARY EDUCATION

article: 19.5. California Kids Investment and Development Savings Program


text:
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.

history: (History: Amended by Stats. 2022, Ch. 54, Sec. 20. (AB 183) Effective June 30, 2022.)

title: 3. POSTSECONDARY EDUCATION


text:
(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.

history: (History: Amended by Stats. 2023, Ch. 50, Sec. 7. (SB 117) Effective July 10, 2023.)

title: 3. POSTSECONDARY EDUCATION


text:
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.

title: 3. POSTSECONDARY EDUCATION


text: 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.

title: 3. POSTSECONDARY EDUCATION


text:
(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.

history: (History: Amended by Stats. 2023, Ch. 195, Sec. 4. (SB 142) Effective September 13, 2023.)

title: 3. POSTSECONDARY EDUCATION


text:
(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.

history: (History: Added by Stats. 2021, Ch. 144, Sec. 54. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION


text:
(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.

history: (History: Added by Stats. 2021, Ch. 144, Sec. 55. (AB 132) Effective July 27, 2021.)

title: 3. POSTSECONDARY EDUCATION


text:
(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), or subparagraph (A) of paragraph (2), 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 federal Family Educational Rights and Privacy Act of 1974 (Public Law 93-380, as amended).

(B) The federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191, as amended).

(C) The federal 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 2024–25 to 2029–30 fiscal years, inclusive, the board shall partner with 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. For the 2025–26 to 2029–30 fiscal years, inclusive, the board shall partner with the San Diego Unified School District 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 federal Family Educational Rights and Privacy Act of 1974 (Public Law 93-380, as amended).

(B) The federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191, as amended).

(C) The federal Higher Education Act of 1965 (Public Law 89-329, as amended).

(4) (A) On or before September 30, 2025, and on or before September 30, 2029, 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, 2030.

history: (History: Amended by Stats. 2025, Ch. 9, Sec. 7. (AB 123) Effective June 27, 2025.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) In enacting this article, it is the intent of the Legislature to accomplish all of the following:

(1) Provide explicit authority to the board to continue to administer accounts for, and make awards to, persons who qualified for awards under the provisions of the Governor’s Scholarship Programs as those provisions existed on January 1, 2003, prior to the repeal of former Article 20 (commencing with Section 69995).

(2) Provide for the management and disbursement of funds previously set aside for the scholarship programs authorized by former Article 20 (commencing with Section 69995).

(3) Provide a guarantee should additional funds be needed to cover awards authorized and made pursuant to former Article 20 (commencing with Section 69995).

(b) The board may manage and disburse the funds previously set aside for the scholarship programs authorized by former Article 20 (commencing with Section 69995).

(c) If a person has earned an award under the Governor’s Scholarship Programs on or before January 1, 2003, but has not claimed the award on or before June 30, 2004, he or she still may claim the award by a date that is five years from the first June 30 that fell after he or she took the qualifying test. An award shall not be made by the board after that date.

(d) The board shall negotiate with the current manager of the Governor’s Scholarship Programs and execute an amended or new management and funding agreement, before January 1, 2013, which shall include, but not be limited to, all of the following:

(1) Terms providing for the return to the General Fund by no later than January 1, 2013, of moneys appropriated to the Governor’s Scholarship Programs that are not anticipated to be needed to make awards pursuant to paragraphs (1) and (2) of subdivision (a).

(2) Provisions that authorize the board to pay agreed-upon early withdrawal penalties or fees.

(3) Terms that extend to the final date upon which the board may withdraw funds for a person who earned an award under the Governor’s Scholarship Programs.

(e) (1) If funds retained in the Golden State Scholarshare Trust after January 1, 2013, are insufficient to cover the remaining withdrawal requests, it is the intent of the Legislature to appropriate the necessary funds to the Golden State Scholarshare Trust for the purpose of funding individual beneficiary accounts.

(2) The board shall notify the Department of Finance and the Legislature no later than 10 working days after determining that a shortfall in available funding described in paragraph (1) will occur.

(f) (1) (A) Of the funds transferred to the General Fund pursuant to paragraph (1) of subdivision (d), five million dollars ($5,000,000) is hereby appropriated to the Chancellor of the California State University, without regard to fiscal years, to fund the establishment and administration of the California Open Education Resources Council and the California Digital Open Source Library, and the development or acquisition of open education resources, or any combination thereof, pursuant to legislation enacted in the 2011–12 Regular Session of the Legislature, provided that the chancellor may provide reimbursement to the California Community Colleges and the University of California for costs those segments, or their representatives, incur in association with the activities described in this paragraph.

(B) Effective January 1, 2016, three million dollars ($3,000,000) of the moneys appropriated pursuant to this paragraph are hereby reappropriated pursuant to paragraph (4).

(2) Except those moneys allocated pursuant to paragraphs (3) and (4), moneys, or a portion of moneys, appropriated pursuant to paragraph (1) shall not be encumbered unless at least 100 percent of that amount encumbered is matched by private funds and, if not matched by private funds, shall revert to the Golden State Scholarshare Trust for purposes of the Governor’s Scholarship Programs.

(3) Of the unencumbered amount appropriated pursuant to paragraph (1) as of June 30, 2015:

(A) Up to two hundred thousand dollars ($200,000) may be used for administration of the California Open Online Library for Education. These funds may be used by the California Open Online Library for Education to continue developing and updating its services to provide faculty, staff, and students convenient access to open educational resources as course materials and to provide administrative support for the California Open Educational Resources Council. These funds may be used by the California Open Online Library for Education for purposes of the Open Educational Resources and Adoption Incentive Program until September 1, 2020.

(B) Up to twenty-seven thousand dollars ($27,000) may be used for stipends to members of the California Open Education Resources Council for these members to carry out their duties in accordance with the Open Educational Resources Adoption Incentive Program.

(4) Of the funds transferred to the General Fund pursuant to paragraph (1) of subdivision (d) and appropriated pursuant to paragraph (1), three million dollars ($3,000,000) is hereby reappropriated to the Chancellor of the California State University, without regard to fiscal years, for allocation for the Open Educational Resources Adoption Incentive Program.

(g) The board may adopt rules and regulations for the implementation of this article.

history: (History: Amended by Stats. 2015, Ch. 633, Sec. 2. (AB 798) Effective January 1, 2016.)

title: 3. POSTSECONDARY EDUCATION

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 20.5. Management and Disbursement of Funds Previously Set Aside for Repealed Governor’s Scholarship Programs


text:
(a) Notwithstanding any other provision of law, not later than 30 days after enactment of the Budget Act of 2004, the Scholarshare Investment Board shall transfer from the Golden State Scholarshare Trust to the General Fund the lesser of (1) fifty million dollars ($50,000,000) or (2) the balance resulting from unclaimed awards in the Golden State Scholarshare Trust that exceeds five million dollars ($5,000,000) as of the close of business on the business day preceding the transfer.

(b) The amount remaining in the Golden State Scholarshare Trust after the transfer required by subdivision (a) shall be available as a reserve for funding claims for these awards. If claims for these awards exceed four million dollars ($4,000,000) of the reserve established by this act in the Golden State Scholarshare Trust, the Scholarshare Investment Board shall notify the Controller of the amount of any shortfall of funds for the payment of claims, and the Controller shall transfer an amount of money equal to the shortfall from the General Fund to the Golden State Scholarshare Trust.

history: (History: Added by Stats. 2004, Ch. 227, Sec. 15. Effective August 16, 2004.)

title: 3. POSTSECONDARY EDUCATION

article: 20.5. Management and Disbursement of Funds Previously Set Aside for Repealed Governor’s Scholarship Programs


text:
As used in this article:

(a) “Board” means the Scholarshare Investment Board established pursuant to subparagraph (B) of paragraph (2) of subdivision (a) of Section 69984.

(b) “Former Article 20” means former Article 20 (commencing with Section 69995) of Chapter 2 of Part 42 of the Education Code, as it read on January 1, 2003.

title: 3. POSTSECONDARY EDUCATION


text: This article shall be known, and may be cited, as the California Military Department GI Bill.

history: (History: Amended by Stats. 2018, Ch. 547, Sec. 2. (AB 2722) Effective January 1, 2019. Article conditionally operative as provided in Section 69999.28.)

title: 3. POSTSECONDARY EDUCATION

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 20.7. California Military Department GI Bill Award Program


text: There is hereby established the California Military Department GI Bill Award Program.

history: (History: Amended by Stats. 2018, Ch. 547, Sec. 3. (AB 2722) Effective January 1, 2019. Article conditionally operative as provided in Section 69999.28.)

title: 3. POSTSECONDARY EDUCATION

article: 20.7. California Military Department GI Bill Award Program


text:
The Legislature finds and declares all of the following:

(a) The California Military Department exists to provide a military organization in California with the capability to protect the lives and property of the people of the state during periods of natural disaster and civil disturbances, and to perform other functions required by the Military and Veterans Code or as directed by the Governor.

(b) The California Military Department performs an essential public purpose in protecting the health, safety, and property of California’s citizens and, in order to fulfill its objectives, it is necessary for the California Military Department to have sufficient service members to deal with natural or human-caused disasters and emergencies.

(c) The state-sponsored education benefit is an important tool used to ensure that the California Military Department attracts and retains highly competent and capable service members who stand ready to immediately respond to the state’s call.

(d) The California Military Department GI Bill is an investment in the men and women who serve California faithfully. This incentive ensures that members of the California National Guard and the California State Guard are not placed at an educational disadvantage when compared to their active duty or reserve component counterparts.

(e) The Legislature and the California Military Department believe that every service member who takes the oath to serve this great state needs to be afforded the best opportunity to achieve a higher education.

history: (History: Amended by Stats. 2020, Ch. 97, Sec. 7. (AB 2193) Effective January 1, 2021. Article conditionally operative as provided in Section 69999.28.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) Commencing January 1 of the 2009–10 academic year, and each academic year thereafter, any qualifying member of the California National Guard, the State Guard, or the Naval Militia may apply for an award under the California Military Department GI Bill.

(b) (1) A qualifying member shall meet all of the following conditions to be eligible to receive a California Military Department GI Bill award:

(A) The person is a resident within the meaning of Section 68017.

(B) The person is an active member of the California National Guard, the State Guard, or the Naval Militia.

(C) The person has been accepted or registered at, or enrolled in, a qualifying institution, as defined in subdivision (l) of Section 69432.7.

(D) The person agrees to use the award to obtain a certificate, degree, or diploma that the person does not hold at the time the person applies for the award, and enrolls in at least three academic units per semester, or the equivalent thereof. The award may be used to obtain one baccalaureate, graduate, or doctoral degree. The award may be used for a certificate, degree, or diploma that leads to a baccalaureate, graduate, or doctoral degree.

(E) The person agrees to serve two years in the California National Guard, the Naval Militia, or the California State Guard upon completion of the last academic period that the person uses educational assistance under this program.

(F) The person agrees to complete their course of study within 10 years of the person’s initial acceptance into the program. If a person is unable to complete their course of study in the 10-year period due to federal military activation or other unexpected circumstance, the Adjutant General of the California Military Department may extend that person’s participation in the program for a period of up to five additional years.

(G) The person has submitted the Free Application for Federal Student Aid (FAFSA) to the United States Department of Education.

(2) To be eligible for an award for a summer session term, a qualifying member who meets the conditions in paragraph (1) shall submit a letter from the member’s unit commander that states that the member’s enrollment in that summer session will not adversely impact the member’s attendance at mandatory military training.

(c) Each person applying for a California Military Department GI Bill award shall submit an application for an award to the Adjutant General.

(d) The Adjutant General shall do all of the following:

(1) Annually identify the skills most needed by the California National Guard to retain members who possess, or seek to possess, those identified skills.

(2) Prioritize those applicants who qualify for an award pursuant to subdivision (b) based on the skills most needed by the California National Guard, as identified pursuant to paragraph (1).

(3) Select award recipients from among eligible applicants pursuant to subdivision (e).

(4) Certify the eligibility of applicants to the Student Aid Commission.

(5) Notify recipients of their selection for an award.

(e) The Adjutant General shall select recipients who have been judged by the Adjutant General to have outstanding ability on the basis of criteria that may include, but shall not be limited to, any of the following:

(1) The Military Occupational Specialty Code or the Air Force Specialty Code.

(2) An annual noncommissioned officer evaluation report or officer evaluation report of the preceding two years.

(3) A memorandum from the applicant’s commander recommending the applicant for the award.

(4) Commendations the applicant has received.

(5) An essay, written by the applicant, explaining why education is important to the applicant.

(f) The number of awards issued by the Student Aid Commission in any fiscal year shall be limited to the number authorized in the annual Budget Act for that year, but in no event shall exceed 1,000 in any fiscal year.

(g) The Student Aid Commission shall issue the awards in accordance with Section 69999.18.

history: (History: Amended by Stats. 2020, Ch. 97, Sec. 8. (AB 2193) Effective January 1, 2021. Article conditionally operative as provided in Section 69999.28.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) The Student Aid Commission is responsible for issuing awards authorized by Section 69999.16, upon receipt of a certificate from the Adjutant General verifying that the applicant meets the eligibility requirements of this article. The commission shall provide any information to the Military Department that is necessary to meet the reporting requirements of Section 69999.24.

(b) The amount of an award issued pursuant to this article shall be as follows:

(1) For a recipient attending the University of California or the California State University, the maximum amount of the Cal Grant A award, pursuant to Section 66021.2, as adjusted in the annual Budget Act.

(2) For a recipient attending a community college, the maximum amount of the Cal Grant B award, pursuant to Section 66021.2, as adjusted in the annual Budget Act.

(3) For a recipient attending a nonpublic institution, the maximum amount of a Cal Grant A award for a student attending the University of California pursuant to Section 66021.2, as adjusted in the annual Budget Act.

(c) An award used for graduate studies shall not exceed the maximum amount of a Cal Grant A award, as specified in paragraph (1) of subdivision (b).

(d) The award amount under subdivisions (b) and (c) shall not exceed the difference between the recipient’s cost of attendance and any other student financial aid and educational benefits pursuant to the federal Montgomery GI Bill (38 U.S.C. Sec. 3001 et seq.) or any other federal educational benefits program for veterans.

(e) California Military Department GI Bill awards may be renewed for each new academic year, for a maximum of the greater of either (1) four years of full-time equivalent enrollment or (2) the duration for which the qualifying member would otherwise be eligible pursuant to the Cal Grant Program (Chapter 1.7 (commencing with Section 69430)), if the Adjutant General certifies the qualifying member’s eligibility and the qualifying member maintains at least a 2.0 cumulative grade point average.

history: (History: Amended by Stats. 2018, Ch. 547, Sec. 6. (AB 2722) Effective January 1, 2019. Article conditionally operative as provided in Section 69999.28.)

title: 3. POSTSECONDARY EDUCATION


text: Qualifying members shall not receive both a California Military Department GI Bill award and any Cal Grant award for the same academic year. A qualifying member under this article who is also eligible for a Cal Grant award may elect between an award under this article and any Cal Grant award for the same academic year.

history: (History: Amended by Stats. 2018, Ch. 547, Sec. 7. (AB 2722) Effective January 1, 2019. Article conditionally operative as provided in Section 69999.28.)

title: 3. POSTSECONDARY EDUCATION


text: The Student Aid Commission, in consultation with the Military Department, shall adopt emergency rules and regulations, pursuant to Section 11346.1 of the Government Code, for the purpose of administering this article. These rules and regulations shall include provisions that establish criteria for selecting award recipients, including priorities for allocating available money to applicants. The Student Aid Commission may solicit the advice of representatives from postsecondary educational institutions regarding any proposed rules and regulations.

history: (History: Added by Stats. 2009, 4th Ex. Sess., Ch. 12, Sec. 4. Effective July 28, 2009. Article conditionally operative as provided in Section 69999.28.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) Costs incurred by the Student Aid Commission for issuing and processing awards shall be reimbursed through an interagency agreement from appropriations in the annual Budget Act to the Military Department for purposes of this article.

(b) The Student Aid Commission may enter into contracts with a public agency or a private entity to improve the processing and distribution of awards through the use of electronic networks and unified databases.

title: 3. POSTSECONDARY EDUCATION


text:
The Student Aid Commission shall report annually to the Legislature regarding program participation, including, but not necessarily limited to, both of the following, as categorized on the basis of age, ethnicity, and gender:

(a) The total number of participants in the program established by this article.

(b) The number of participants who receive a California Military Department GI Bill award, classified by academic year.

history: (History: Amended by Stats. 2018, Ch. 547, Sec. 8. (AB 2722) Effective January 1, 2019. Article conditionally operative as provided in Section 69999.28.)

title: 3. POSTSECONDARY EDUCATION


text: This article shall become operative only upon an appropriation by the Legislature for the purposes of this article.

history: (History: Added by Stats. 2009, 4th Ex. Sess., Ch. 12, Sec. 4. Effective July 28, 2009. Note: Contingent operation provision applies to Article 20.7, commencing with Section 69999.10.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) The Governor’s Teaching Fellowships Program is hereby established to be administered by the Chancellor’s office of the California State University. The chancellor’s office shall collaborate with the University of California, the California Community Colleges, the Association of Independent California Colleges and Universities, the State Department of Education, and the Commission on Teacher Credentialing to ensure that access to the fellowships is available to students in a variety of teaching preparation programs.

(b) In January 2001, 250 nonrenewable graduate teaching fellowships in the amount of twenty thousand dollars ($20,000) each shall be awarded, with funds disbursed one-half in January 2001 and one-half in September 2001.

(c) During the 2001–02 fiscal year, 1,000 nonrenewable, graduate teaching fellowships in the amount of twenty thousand dollars ($20,000) each shall be awarded.

(d) Commencing with the 2002–03 fiscal year and each fiscal year thereafter, the number of fellowships awarded shall be determined pursuant to an appropriation in the annual Budget Act for this purpose.

(e) The fellowship award may be used to defer tuition for a teacher certification program at any accredited postsecondary institution in California and for living expenses while enrolled in that program.

history: (History: Amended by Stats. 2002, Ch. 1167, Sec. 31. Effective September 30, 2002.)

title: 3. POSTSECONDARY EDUCATION

article: 21. Governor’s Teaching Fellowships

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 21. Governor’s Teaching Fellowships


text:
(a) The Chancellor’s office of the California State University shall have the following duties:

(1) Developing an application process that establishes a merit-based fellowship program for graduate students who agree to teach at a high-priority school for four years.

(2) Establishing a broad and effective outreach effort to promote the availability and the merits of the fellowship program.

(3) Conducting the selection process for fellowship applicants.

(4) Collaborating with the Commission on Teacher Credentialing to develop and implement a system for monitoring program participants through the completion of their four-year teaching obligation.

(5) Determining the criteria for selecting teaching fellowship candidates. The criteria shall include, at a minimum, all of the following:

(A) Previous academic and employment record.

(B) A demonstrated commitment to serve in a high-priority school.

(C) Faculty and employer evaluations.

(D) Interviews.

(E) Letters of recommendation.

(b) For the purposes of this article, a “high-priority school” is a school in the bottom half of the Academic Performance Index rankings established pursuant to subdivision (a) of Section 52056. If a school meets this criteria at the time a teacher is hired, continued employment of the teacher at that school fulfills the commitment made by the teacher, even if the school improves its rank on the Academic Performance Index.

history: (History: Amended by Stats. 2003, Ch. 91, Sec. 30. Effective January 1, 2004.)

title: 3. POSTSECONDARY EDUCATION

article: 21. Governor’s Teaching Fellowships


text:
An intersegmental review committee is hereby established to review all applications for the Governor’s Teaching Fellowships. The committee shall recommend teaching fellowship candidates to the Chancellor’s office of the California State University. The committee shall consist of 12 members, appointed by the Governor to a term of four years, based on recommendations as follows:

(a) The Chancellor of the California State University shall recommend six members. Two shall be faculty members. One shall be an administrator from higher education. One shall be an administrator from a school maintaining kindergarten or any of grades 1 to 12, inclusive. Two shall be teachers from schools maintaining kindergarten or any of grades 1 to 12, inclusive.

(b) The President of the University of California shall recommend three members. One shall be a faculty member. One shall be an administrator from either higher education or schools maintaining kindergarten or any of grades 1 to 12, inclusive. One shall be an elementary or secondary teacher.

(c) The Chair of the Association of Independent California Colleges and Universities shall recommend three members. One shall be a faculty member. One shall be an administrator from either higher education or schools maintaining kindergarten or any of grades 1 to 12, inclusive. One shall be an elementary or secondary teacher.

history: (History: Added by Stats. 2000, Ch. 70, Sec. 21. Effective July 5, 2000. Operative September 23, 2000, pursuant to Sec. 22 of Ch. 70.)

title: 3. POSTSECONDARY EDUCATION

article: 21. Governor’s Teaching Fellowships


text:
(a) A fellowship recipient shall agree to teach in a high-priority school for four years and shall have four years, upon completion of his or her preparation program, to meet that obligation. Except as provided in subdivision (c), a fellowship recipient shall agree to repay the state five thousand dollars ($5,000) annually for each year the recipient fails to complete either the teacher preparation program or the required teaching service, up to full repayment of twenty thousand dollars ($20,000).

(b) Nonperformance of the commitment to teach in a high-priority school for four years shall be certified by the Commission on Teacher Credentialing to the chancellor’s office.

(c) Any exceptions to the requirement for repayment shall be defined by the chancellor’s office.

history: (History: Amended by Stats. 2003, Ch. 91, Sec. 31. Effective January 1, 2004.)

title: 3. POSTSECONDARY EDUCATION

article: 21. Governor’s Teaching Fellowships


text: The Trustees of the California State University shall provide an annual report, for each higher education institution, on the number of fellows receiving funding, the number of fellows completing programs, and the place of employment for each candidate.

title: 3. POSTSECONDARY EDUCATION

article: 21. Governor’s Teaching Fellowships


text:
(a) The Chancellor’s office of the California State University shall adopt any rules and regulations it deems necessary for the administration of this section and the recovery of funds it determines are owed to the state. The rules and regulations adopted by the chancellor’s office pursuant to this section shall also include a provision authorizing the chancellor’s office to seek a civil penalty on a recipient of funds under this program, in an amount not to exceed five thousand dollars ($5,000) per year for each year that the recipient of funds is determined by the Commission on Teacher Credentialing to have failed to fulfill his or her obligation to teach in a high-priority school.

(b) Any moneys derived from the assessment of penalties pursuant to this section shall be deposited into the General Fund.

history: (History: Amended by Stats. 2003, Ch. 91, Sec. 32. Effective January 1, 2004.)

title: 3. POSTSECONDARY EDUCATION

article: 21. Governor’s Teaching Fellowships


text:
(a) The California Memorial Scholarship Program is hereby established. The program shall be administered by the Scholarshare Investment Board established pursuant to Section 69984. The program shall be funded by the California Memorial Scholarship Fund established pursuant to Section 5066 of the Vehicle Code.

(b) The purpose of the program is to provide scholarships for surviving dependents of California residents killed as a result of injuries sustained during the terrorist attacks of September 11, 2001. These scholarships shall be used to defray the costs incurred by participants in the program at institutions of higher education. The Legislature finds and declares that the scholarships provided by this act are funded by voluntary donations provided by California vehicle owners.

history: (History: Amended by Stats. 2003, Ch. 62, Sec. 78. Effective January 1, 2004.)

title: 3. POSTSECONDARY EDUCATION

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 21.5. The California Memorial Scholarship Program


text:
As used in this article:

(a) “Board” means the Scholarshare Investment Board established pursuant to Section 69984.

(b) “California resident” means a person who would not be required to pay nonresident tuition under Chapter 1 (commencing with Section 68000) of Part 41.

(c) “Dependent” means a person identified by the California Victim Compensation Board because of his or her relationship to a California resident killed as a result of injuries sustained during the terrorist attacks of September 11, 2001.

(d) “Fund” means the California Memorial Scholarship Fund established pursuant to Section 5066 of the Vehicle Code.

(e) “Institution of higher education” has the same meaning as “eligible educational institution,” as defined in paragraph (5) of subsection (e) of Section 529 of the Internal Revenue Code of 1986, as amended by Section 211 of the Taxpayer Relief Act of 1997 (Public Law 105-34).

(f) “Participant” means a surviving dependent of a California resident killed as a result of injuries sustained during the terrorist attacks of September 11, 2001, who has executed, or on whose behalf has been executed, an agreement pursuant to Section 70011.

(g) “Program” means the California Memorial Scholarship Program established pursuant to Section 70010.

(h) “Scholarship” means a participant’s account as established by the board with moneys deposited in the fund.

history: (History: Amended by Stats. 2016, Ch. 31, Sec. 22. (SB 836) Effective June 27, 2016.)

title: 3. POSTSECONDARY EDUCATION

article: 21.5. The California Memorial Scholarship Program


text:
(a) The California Victim Compensation Board shall identify, and confirm by documentation, all persons who are eligible for scholarships under the program. The California Victim Compensation Board shall use various methods to identify those persons, including, but not limited to, all of the following:

(1) Media outreach, including, but not limited to, social media, that explains the details of the program, who is eligible for scholarships under the program, and how to sign up for further notifications regarding the program.

(2) Written notification to persons, or in the case of minors, their parents or guardians, who have previously been identified as eligible for scholarships under the program, and their known family members. The notification shall explain that the program has been reopened, and that the California Victim Compensation Board is seeking information regarding other persons who may be eligible for the program, and shall provide instructions on how to sign up for further notifications regarding the program.

(3) Communication with the Special Master of the federal September 11th Victim Compensation Fund to determine if additional victims who were California residents have been identified.

(b) After creating a new list of eligible persons for the program, the California Victim Compensation Board shall notify these persons or, in the case of minors, the parents or guardians of these persons, of their eligibility for scholarships under the program.

(1) The notification shall be in writing.

(2) The notification shall provide details on the program and how to apply for scholarships under the program.

(3) The notification shall be received by all of the appropriate persons no later than July 1, 2015.

(c) The Scholarshare Investment Board shall service scholarships pursuant to this article only for individuals determined to be eligible by the California Victim Compensation Board.

(d) Eligible persons, or in the case of minors, the parents or guardians of these persons, shall inform the Scholarshare Investment Board of their decision on whether to participate in the program in a timely manner. Eligible persons, or in the case of minors, the parents or guardians of these persons, who are to become participants in the program shall execute agreements pursuant to Section 70011 no later than July 1, 2016.

history: (History: Amended by Stats. 2016, Ch. 31, Sec. 23. (SB 836) Effective June 27, 2016.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) (1) The Department of Motor Vehicles shall deposit the proceeds of the sale of California memorial license plates into the fund in accordance with paragraph (2) of subdivision (c) of Section 5066 of the Vehicle Code. When an agreement is executed pursuant to Section 70011, the board shall establish an account within the fund for the benefit of a person eligible for the program.

(2) Distributions from the fund shall commence on July 1, 2005. After July 1, 2005, the total amount of moneys in the fund shall, at all times, be evenly divided among the accounts that are in existence at that time until the board has transferred five thousand dollars ($5,000) from the fund into each account. When five thousand dollars ($5,000) has been transferred by the board into each account, all revenues remaining in the fund shall be deposited into the Antiterrorism Fund created by paragraph (1) of subdivision (c) of Section 5066 of the Vehicle Code and distributed as provided in that paragraph.

(b) Moneys in the fund, including moneys in the accounts, may be invested and reinvested by the board, or may be invested in whole or in part under contract with private money managers, as determined by the board. The interest earned shall accrue to the accounts.

(c) The board shall establish within the fund an administrative account, the amount deposited in which may not exceed 5 percent of the total amount of moneys in the fund. Funds in the administrative account may be used, upon appropriation in the annual Budget Act or in another statute, for the administrative costs of the board in administering the program.

(d) No moneys from the fund may be encumbered, and no distribution may be made from any account in the fund, unless and until an appropriation authorizing that encumbrance or distribution is made in the annual Budget Act or in another statute.

history: (History: Amended by Stats. 2002, Ch. 406, Sec. 9. Effective September 9, 2002.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) The board may enter into agreements with participants or with persons entitled to act on behalf of participants.

(b) An agreement shall specify that any moneys remaining in an account after the 30th birthday of the participant, or not later than July 1, 2026, whichever occurs last, shall revert to the Antiterrorism Fund established under paragraph (1) of subdivision (c) of Section 5066 of the Vehicle Code. The agreements may also include, but need not be limited to, the terms and subject matter set forth in Section 69983.

history: (History: Amended by Stats. 2014, Ch. 242, Sec. 2. (SB 384) Effective August 22, 2014.)

title: 3. POSTSECONDARY EDUCATION


text: Nothing in this article shall be construed to authorize or require the admission of a participant into a specific institution of higher education or degree program.

history: (History: Added by Stats. 2002, Ch. 38, Sec. 1. Effective May 13, 2002.)

title: 3. POSTSECONDARY EDUCATION


text: Notwithstanding any other provisions of state law, any funds awarded pursuant to this article shall augment and not supplant student financial aid from other state sources. All calculations for eligibility for student financial aid from other state sources shall be made without consideration of any funds awarded pursuant to this article.

title: 3. POSTSECONDARY EDUCATION


text: Within the annual report required pursuant to Section 69989, the board shall also include information on the operation of the program. This information shall include, but need not be limited to, data on the number of agreements executed during the year, the date on which each agreement is executed, the age of each participant, the amount and number of distributions made from accounts within the fund, and the rate of return on the funds invested under this article.

history: (History: Amended by Stats. 2002, Ch. 406, Sec. 11. Effective September 9, 2002.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) The board may adopt regulations for the purposes of this article as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). For the purposes of the Administrative Procedure Act, including Section 11349.6 of the Government Code, the adoption of the regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, and safety, or general welfare, notwithstanding subdivision (e) of Section 11346.1 of the Government Code.

(b) Notwithstanding subdivision (e) of Section 11346.1 of the Government Code, any regulation adopted pursuant to this section shall not remain in effect more than one year unless the board complies with rulemaking provisions of the Administrative Procedure Act, as required by subdivision (e) of Section 11346.1 of the Government Code.

title: 3. POSTSECONDARY EDUCATION


text: The Middle Class Scholarship Fund is hereby established in the State Treasury. Moneys in the fund shall be allocated, in accordance with this article, to make higher education more affordable.

history: (History: Added by Stats. 2013, Ch. 50, Sec. 2. (AB 94) Effective July 1, 2013.)

title: 3. POSTSECONDARY EDUCATION

article: 22. Middle Class Scholarship Program

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 22. Middle Class Scholarship Program


text: The Middle Class Scholarship Program is hereby established under the administration of the Student Aid Commission. For purposes of this article, “commission” means the Student Aid Commission.

title: 3. POSTSECONDARY EDUCATION

article: 22. Middle Class Scholarship Program


text:
(a) (1) Subject to an available and sufficient appropriation, an undergraduate student enrolled in the California State University or the University of California, or a community college student enrolled in upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, who meets the requirements of paragraph (3) is eligible for a scholarship award as described in paragraph (2).

(2) (A) For the 2013–14 to the 2021–22 academic year, inclusive, except as provided in paragraphs (4) and (5), an eligible student shall receive a scholarship award in an amount that, combined with other federal, state, or institutionally administered student grants or fee waivers received by an eligible student, is up to 40 percent of the amount charged to that student in that academic year for mandatory systemwide tuition and fees, or for an eligible community college student, up to 40 percent of the amount charged to that student in upper division fees for a community college baccalaureate degree program, if all of the requirements in paragraph (3) are met, to the satisfaction of the commission, each academic year.

(B) For the 2022–23 academic year, except as provided in paragraph (5), an eligible student shall receive a scholarship award in an amount that equals the difference between their cost of attendance as determined by the commission and the sum of the following amounts:

(i) Other federal, state, and institutionally administered student scholarships, grants, or fee waivers, and the amount of private scholarships awarded to the student in excess of the sum of the amounts in clauses (ii) and (iii).

(ii) Seven thousand eight hundred ninety-eight dollars ($7,898), reflecting an expected student contribution toward cost of attendance from work earnings or other resources.

(iii) Notwithstanding Section 69506, for dependent students with an annual household income exceeding one hundred thousand dollars ($100,000), 33 percent of the parents’ contribution from adjusted available income, as determined using the federal methodology established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1087mm et seq.), and applicable rules and regulations adopted by the commission.

(C) For the 2023–24 academic year, except as provided in paragraph (5), an eligible student shall receive a scholarship award in an amount that equals the difference between their cost of attendance as determined by the commission and the sum of the following amounts:

(i) Other federal, state, and institutionally administered student scholarships, grants, or fee waivers.

(ii) The amount of private grants and scholarships awarded to the student, and institutionally awarded emergency housing funds and other basic needs emergency assistance awarded to the student, including emergency assistance awarded by an institution-based foster youth support program, in excess of the sum of the amounts in clauses (iii) and (iv).

(iii) Seven thousand eight hundred ninety-eight dollars ($7,898), reflecting an expected student contribution toward cost of attendance from work earnings or other resources.

(iv) Notwithstanding Section 69506, for dependent students with an annual household income exceeding one hundred thousand dollars ($100,000), 33 percent of the parents’ contribution from adjusted available income, as determined using the federal methodology established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1087mm et seq.), and applicable rules and regulations adopted by the commission.

(D) Commencing with the 2024–25 academic year, except as provided in paragraph (5), an eligible student shall receive a scholarship award in an amount that equals the difference between their cost of attendance as determined by the commission and the sum of the following amounts:

(i) Other federal, state, and institutionally administered student need-based scholarships, grants, or fee waivers.

(ii) The amount of private grants and scholarships awarded to the student, and institutionally administered non-need-based scholarships and institutionally awarded emergency housing funds or other basic needs emergency assistance awarded to the student, including emergency assistance awarded by an institution-based foster youth support program, in excess of the sum of the amounts in clauses (iii) and (iv).

(iii) An expected student contribution toward cost of attendance from work earnings or other resources. The commission shall adjust the 2023–24 amount of seven thousand eight hundred ninety-eight dollars ($7,898) annually thereafter based on the percentage change in the minimum wage, pursuant to paragraph (1) of subdivision (c) of Section 1182.12 of the Labor Code.

(iv) Notwithstanding Section 69506, for dependent students with an annual household income exceeding one hundred thousand dollars ($100,000), 33 percent of the parents’ contribution from adjusted available income, as determined using the federal methodology established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1087mm et seq.), and applicable rules and regulations adopted by the commission.

(E) If a student’s total award under this article, in combination with other grants and scholarships treated as estimated financial assistance (EFA) or other financial assistance (OFA) pursuant to federal financial aid regulations, exceeds the allowable gift aid under those regulations, the award under this article shall be reduced to the greatest allowable award to maintain compliance pursuant to federal financial aid regulations.

(F) If an award in clause (i) of subparagraph (D) of less than three hundred dollars ($300) is identified following the determination of a student’s scholarship award under this article, the student’s scholarship award under this article shall not require a recalculation.

(G) Notwithstanding subparagraphs (E) and (F), if a foster youth or former foster youth receives additional financial aid following the determination of the student’s scholarship award under this article, the student’s scholarship award under this article shall not require a recalculation unless a recalculation is necessary in order to comply with federal financial aid regulations.

(3) (A) A student shall be eligible to receive an award if all of the following requirements are met, to the satisfaction of the commission, each academic year:

(B) (i) For each academic year from 2013–14 to 2021–22, inclusive, the student’s annual household income does not exceed one hundred fifty thousand dollars ($150,000). For awards distributed for the 2016–17 academic year and subsequent academic years, the commission shall annually adjust the maximum income level set under this clause in accordance with the percentage changes in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution. For purposes of this article, annual household income shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.

(ii) Commencing with the 2022–23 academic year, the student’s annual household income does not exceed the following amounts:

(I) Two hundred one thousand dollars ($201,000) if the student is a dependent student or an independent student with dependents other than a spouse.

(II) One hundred thirty-three thousand dollars ($133,000) if the student is a married independent student with no dependents other than a spouse.

(III) One hundred sixteen thousand dollars ($116,000) if the student is a single independent student with no dependents.

(iii) For awards distributed for the 2023–24 academic year and subsequent academic years, the commission shall annually adjust the maximum income levels set under clause (ii) in accordance with the percentage changes in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIIIB of the California Constitution. For purposes of this article, annual household income shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.

(C) (i) For each academic year from 2015–16 to 2021–22, inclusive, the student’s household asset level shall not exceed one hundred fifty thousand dollars ($150,000). For awards distributed in the 2016–17 academic year and subsequent academic years, the commission shall annually adjust the maximum household asset level set under this clause in accordance with the percentage changes in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIIIB of the California Constitution. For purposes of this article, student’s household asset level shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.

(ii) Commencing with the 2022–23 academic year, the student’s household asset level does not exceed the following amounts:

(I) Two hundred one thousand dollars ($201,000) if the student is a dependent student or an independent student with dependents other than a spouse.

(II) Ninety-six thousand dollars ($96,000) if the student is a single independent student with no dependents or a married independent student with no dependents other than a spouse.

(iii) For awards distributed in the 2023–24 academic year and subsequent academic years, the commission shall annually adjust the maximum household asset level set under clause (ii) in accordance with the percentage changes in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIIIB of the California Constitution. For purposes of this article, a student’s household asset level shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.

(D) The student satisfies the eligibility requirements for a Cal Grant award pursuant to either subdivision (a) or (b) of Section 69433.9, except that a student who is exempt from nonresident tuition under Section 68130.5 shall not be required to satisfy the requirements of paragraph (1) of subdivision (a) of Section 69433.9.

(E) The student is exempt from paying nonresident tuition.

(F) The student completes and submits a Free Application for Federal Student Aid (FAFSA) or a California Dream Act application. The FAFSA or California Dream Act application must be submitted or postmarked by no later than March 2.

(G) The student makes a timely application or applications for all other federal, state, or institutionally administered grants or fee waivers for which the student is eligible.

(H) The student maintains satisfactory academic progress in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program pursuant to subdivision (m) of Section 69432.7.

(I) The student is pursuing the student’s first undergraduate baccalaureate degree or has completed a baccalaureate degree and has been admitted to, and is enrolled in, a program of professional teacher preparation at an institution approved by the Commission on Teacher Credentialing.

(J) The student is enrolled at least part time.

(4) (A) For each academic year from 2013–14 to 2021–22, inclusive, the percentages specified in paragraph (2) shall be reduced by 0.6-percent increments per one thousand dollars ($1,000) of annual household income in excess of one hundred thousand dollars ($100,000), to a minimum 10 percent, provided that no scholarship award shall be provided to a student with an annual household income exceeding one hundred fifty thousand dollars ($150,000). Beginning with award calculations for the 2016–17 academic year, and for subsequent academic years, the commission shall annually adjust the income levels specified in this subparagraph by the percentage change in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution and shall adjust the incremental reduction accordingly to ensure that a minimum of 10 percent of mandatory systemwide tuition and fees for an academic year are awarded. This reduction shall be in addition to any reduction required by Section 70023.

(B) Notwithstanding subparagraph (A), for each academic year from 2013–14 to 2021–22, inclusive, for any student who qualifies for a scholarship award of at least one dollar ($1), the minimum annual scholarship amount for full-time enrollment is ninety dollars ($90).

(5) (A) For the 2014–15, 2015–16, and 2016–17 academic years, the maximum amount of a student’s scholarship award shall be 35 percent, 50 percent, and 75 percent, respectively, of the total scholarship award amount that the student would otherwise be eligible to receive.

(B) Commencing with the 2022–23 academic year, except as provided in subparagraph (D), the maximum amount of a student’s scholarship award shall be determined by the percentage determined pursuant to subparagraph (C) of the total scholarship award amount that the student would otherwise be eligible to receive.

(C) The commission shall annually determine the percentage required for purposes of subparagraph (B) by taking the amount appropriated for purposes of this program for the applicable award year, less the amount necessary to fund subparagraph (D), and dividing that by the sum of the projected amount computed pursuant to subparagraph (B), (C), or (D) of paragraph (2) for the applicable award year for all eligible students, except those affected by subparagraph (D).

(D) Commencing with the 2023–24 academic year, a current or former foster youth, as defined in paragraph (2) of subdivision (e) of Section 69433.6, shall receive a scholarship award in the full amount determined in subparagraphs (C) or (D) of paragraph (2), as adjusted, if applicable, pursuant to paragraph (2) of subdivision (d).

(b) In order for students enrolled in their respective segments to remain eligible to receive a scholarship award under this article, the University of California and the California State University shall not supplant their respective institutional need-based or merit-based grants with the funds provided for scholarships under this article. The University of California and the California State University shall ensure that the amount of institutional student aid provided in each academic year beginning with the 2022–23 academic year is adjusted annually to account for increases in systemwide undergraduate enrollment, as applicable, such that the proportion of institutional student aid relative to systemwide undergraduate enrollment is maintained at a level at least equivalent to the level maintained for undergraduate students during the 2021–22 academic year. The University of California and the California State University shall also ensure that at least 33 percent of the revenues of an increase to existing mandatory systemwide fees charged to undergraduate students is set aside by the regents or the trustees, as applicable, for institutional student aid to assist resident undergraduate students, including those undergraduate students exempt from nonresident tuition pursuant to Sections 68075.5 and 68130.5, and families in meeting the total cost of education.

(c) (1) The University of California and the California State University shall report on the implementation of this article as part of the report made pursuant to Section 66021.1. At a minimum, the report shall add the following information, by parental income level or expected family contribution deciles, for the prior academic year:

(A) The number and percentage of students receiving an award under this article and the average dollar amount of that award.

(B) The number and percentage of students receiving a student loan and the average amount borrowed.

(2) The report shall also include the following information by campus for the prior academic year:

(A) The cost of attendance for undergraduates in each living arrangement (on campus, off campus, or at home with parents).

(B) The number and percentage of undergraduates in each living arrangement (on campus, off campus, or at home with parents).

(d) (1) A Middle Class Scholarship Program award authorized pursuant to this article shall be defined as a full-time equivalent grant. An award to a part-time student shall be a fraction of a full-time grant. For each academic year from 2013–14 to 2021–22, inclusive, an award to a part-time student shall be determined by the proportionate amount charged for systemwide tuition and fees. A part-time student shall not be discriminated against in the selection of Middle Class Scholarship Program awards. For purposes of this section, “full-time student” and “part-time student” have the same meaning as specified in subdivision (f) of Section 69432.7.

(2) Commencing with the 2022–23 academic year, an award to a student enrolled in six to eight semester units, inclusive, or the equivalent shall be no more than one-half of the award the student would have received had the student enrolled full time. An award to a student enrolled in 9 to 11 semester units, inclusive, or the equivalent shall be no more than three-quarters of the award the student would have received had the student enrolled full time.

history: (History: Amended by Stats. 2026, Ch. 79, Sec. 12. (SB 135) Effective July 13, 2026.)

title: 3. POSTSECONDARY EDUCATION

article: 22. Middle Class Scholarship Program


text:
(a) A scholarship award under this article may be renewed for a total of the equivalent of four years of full-time attendance in an undergraduate program or, for a community college award recipient, the equivalent of two years of full-time upper division coursework attendance in the community college baccalaureate degree program. Commencing with the 2016–17 academic year, the total number of years of eligibility for grants pursuant to this article shall be based on the student’s educational level in his or her course of study as designated by the institution of attendance when the recipient initially receives payment for a grant.

(b) For a student enrolled in an institutionally prescribed five-year undergraduate program, a scholarship award under this article may be renewed for a total of up to five academic years of attendance as long as the student meets the requirements of Section 70022.

(c) A recipient of a scholarship award under this article who has completed a baccalaureate degree, and who has been admitted to and is enrolled in a program of professional teacher preparation at an institution approved by the Commission on Teacher Credentialing, is eligible for, but not entitled to, renewal of the scholarship award for an additional academic year of full-time attendance as long as the student meets the requirements of Section 70022.

history: (History: Amended by Stats. 2016, Ch. 438, Sec. 6. (SB 1314) Effective January 1, 2017.)

title: 3. POSTSECONDARY EDUCATION

article: 22. Middle Class Scholarship Program