(a)
Subject to an appropriation in the Budget Act, the commission shall distribute grants to qualifying entities based on how many of them are eligible to receive a grant pursuant to subdivisions (b) to (d), inclusive, the amount of available funding under the Child Savings Account Grant Program to award grants, the number of students that each participating entity intends to serve under the program, and the percentage of low-income families residing in the community served by each participating entity. The amount of each grant award to a participating entity shall be, at a minimum, one hundred thousand dollars ($100,000). Funds appropriated in the Budget Act of 2019 for this purpose shall be available for encumbrance or expenditure by the commission until June 30, 2022.
(b)
(1)
The commission shall award a grant to a qualifying entity for one of the following purposes:
(A)
For funding to initiate a new local child savings account program.
(B)
For funding to expand an existing local child savings account program.
(2)
Up to 74 percent of any appropriation to support the Child Savings Account Grant Program shall be expended pursuant to subparagraph (A) of paragraph (1).
(3)
A minimum of 24 percent of any appropriation to support the Child Savings Account Grant Program shall be expended pursuant to subparagraph (B) of paragraph (1).
(4)
Two percent of any appropriation to
support the Child Savings Account Grant Program shall be used by the commission for outreach and administration of the program, to establish the Child Savings Account Grant Program Council pursuant to subdivision (d) of Section 70115.2, and to provide technical assistance to applicants pursuant to subdivision (b) of Section 70115.2.
(c)
(1)
A qualifying entity seeking a grant pursuant to subparagraph (A) of paragraph (1) of subdivision (b) shall meet all of the following requirements to receive the grant:
(A)
Not have a local child savings account program in operation or under development.
(B)
Seek the grant to establish a local child savings account program that primarily targets children who are 0 to 10 years of age, inclusive.
(C)
Have or develop a plan to augment funding it receives under this chapter to provide continued financial support for its proposed program.
(D)
Indicate in its application that its proposed program has the capacity to enroll eligible children into the program or that the program has the ability to automatically enroll eligible children.
(2)
(A)
The commission shall give grant priority to an applicant meeting the qualifications described in paragraph (1) based upon the following:
(i)
Higher percentages of students in the local program’s geographic region who are eligible to receive free or reduced-price meals.
(ii)
Lower average and median incomes of families living in the local program’s geographic region.
(iii)
Lower college-going rates for students in the local program’s geographic region.
(iv)
A higher amount of funding secured, or planned to be secured, through local budget commitments, philanthropy, or other funding sources.
(v)
Greater fiscal soundness of the applicant’s long-term plan to sustain its local program.
(vi)
A higher number of children who would have access to a college savings account under the local program.
(vii)
The extent to which the applicant has a more detailed and effective plan to inform local families about the importance of establishing a college savings account, provide local families with college savings fiscal literacy assistance, and establish a college-going
culture.
(B)
The commission shall give grant priority to an applicant meeting the qualifications described in paragraph (1) that has a plan to invest a minimum of one hundred dollars ($100), through a combination of initial deposits and incentive payments, into each college savings account opened under the local program.
(d)
(1)
A qualifying entity seeking a grant pursuant to subparagraph (B) of paragraph (1) of subdivision (b) shall meet all of the following requirements to receive the grant:
(A)
Have a local child savings account program in operation or under development that primarily targets children who are 0 to 10 years of age, inclusive.
(B)
Have moneys, in addition to grants received under this chapter, to support its
program.
(C)
Indicate in its application that its program has the capacity to enroll eligible children into the program or that the program has the ability to automatically enroll eligible children.
(2)
(A)
The commission shall give grant priority to an entity meeting the qualifications of paragraph (1) based upon the following:
(i)
Higher percentages of students in the local program’s geographic region who are eligible to receive free or reduced-price meals.
(ii)
Lower average and median incomes of families living in the local program’s geographic region.
(iii)
Lower college-going rates for students in the local program’s geographic region.
(iv)
A higher amount of funding secured through local budget commitments, philanthropy, or other funding sources.
(v)
A higher total amount of funds saved for the local program.
(vi)
A higher number of outreach events demonstrated by the applicant in its application to cultivate a college-going culture and encourage contributions to child savings accounts.
(vii)
Demonstrated ability to sustain and potentially expand its program.
(B)
The commission shall give grant priority to an applicant meeting the qualifications described in paragraph (1) that has a plan to invest a minimum of one hundred dollars ($100), through a combination of initial deposits and incentive payments, into each child
savings account opened under the local program.
(e)
The commission shall adopt, as necessary, application procedures, forms, administrative guidelines, and other requirements for purposes of implementing and administering the Child Savings Account Grant Program.
