California Kids Investment and Development Savings Program.

Existing law establishes the California Kids Investment and Development Savings Program, which is administered by the Scholarshare Investment Board, for the purpose of expanding access to higher education through savings. Existing law establishes the California Kids Investment and Development Savings Program Fund, the moneys in which are continuously appropriated to the board for the program. Existing law requires implementation of the program before January 1, 2021, subject to the availability of funding. This bill would require a financial institution that does business in California to pay a fee in the amount of 1% of the amount of each educational loan made to a private person for purposes of financing study in California. The bill would specify that the fee does not apply to subsidized loans made through educational institutions. The bill would require that the fees be remitted to the State Treasury for deposit into the California Kids Investment and Development Savings Program Fund. By providing for additional moneys to be deposited into a continuously appropriated fund, this bill would make an appropriation. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.