Student financial aid: Children's Savings Account Program.

Under existing law, the segments of postsecondary education in this state are the University of California, the California State University, the California Community Colleges, independent institutions of higher education, and private postsecondary educational institutions. The Golden State Scholarshare Trust Act establishes the Golden State Scholarshare Trust, under the administration of the Scholarshare Investment Board. This bill would establish the Children's Savings Account Program, under the administration of the board, for the purposes of expanding access to higher education through savings. The program would require the board to establish a 529 plan account under Section 529 of the Internal Revenue Code of 1986, as specified, for each California resident child born on or after January 1, 2018, who is a California resident at the time of birth, except for the children whose parents or legal guardians have opted out, as specified. Upon appropriation by the Legislature, the bill would require the board to make an initial contribution to the account and provide certain incentives for contributions made by participants to the account, as specified. The bill would prescribe the powers and duties of the board to administer and implement the program. The bill would require the board to aggressively market the program to California residents, as specified. This bill would establish the Children's Savings Account Program Fund in the State Treasury. The bill would continuously appropriate the moneys in the fund to the board for the program. The bill would require the Director of Finance to determine, at the commencement of each fiscal year, whether there are sufficient funds to implement the program in that fiscal year, and to communicate this determination to the board in a timely manner each fiscal year.