CA SB 292

Title: Education expenses: Education Savings Account Act of 2024.
Author: Shannon L. Grove

Summary
SB 292, as amended, Grove. Education expenses: Education Savings Account Act of 2024. (1) Existing law establishes a system of elementary and secondary education in this state. This system consists of the public and private schools that provide instruction in kindergarten and in grades 1 to 12, inclusive. Existing law establishes a system of higher education in this state, consisting of 4 segments: the University of California, under the administration of the Regents of the University of California; the California State University, under the administration of the Trustees of the California State University; the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges; and independent institutions of higher education.This bill would enact the Education Savings Account Act of 2024 and establish the Education Savings Account (ESA) Trust, to be known as the ESA Trust, as a fund within the State Treasury to be administered by the ESA Trust Board. During the first 4 school years following the operative date of the act, the bill would authorize certain children eligible to be enrolled in kindergarten, or in an elementary or secondary school, in any of grades 1 to 12, inclusive, to establish an ESA, based on parent or guardian income. The bill would remove these income eligibility limits after 4 school years following the operative date of the act, thereby entitling every child eligible to be enrolled in kindergarten, or in an elementary or secondary school, in any of grades 1 to 12, inclusive, to establish an ESA. The bill would specify that every child enrolled in an eligible school shall be entitled, pursuant to this act, to a credit to the child’s account for tuition, elementary and secondary eligible education expenses, and undergraduate or graduate eligible education expenses, as defined. Commencing with the first fiscal year following the operative date of the act, the bill would require the Department of Finance to determine, on July 1 of each year, the annual ESA deposit amount for the upcoming school year. The bill would specify the procedure for calculating the ESA deposit amount and would require the Controller to transfer an amount of money from the General Fund to the ESA Trust equal to the ESA deposit amount multiplied by the number of ESAs established, as provided.The bill would require the ESA Trust Board to be composed of specified members and would vest the ESA Trust Board with certain powers and duties. The bill would establish 2 accounts within the ESA Trust, the ESA Trust Program Account and the ESA Trust Administrative Account, and would continuously appropriate the moneys in the program account to the ESA Trust Board for purposes of the bill, thereby making an appropriation.The bill would require the Superintendent of Public Instruction to establish a procedure for the parents and legal guardians of eligible students to apply to establish an ESA and submit an executed participation agreement. The bill would authorize the ESA Trust Board to disburse funds from ESAs to eligible schools. The bill would define “eligible school” as a campus of the California Community Colleges, the California State University, and the University of California, a full-time private school, a private college or university, a public college or university, or a vocational educational or training institution, as specified. The bill would specify the procedures for participating eligible schools to receive funds disbursed by the ESA Trust Board. Once an eligible student graduates from high school or obtains a high school equivalency certification, the bill would impose a $60,000 cap on the balance in any ESA available for an eligible student’s use for tuition, undergraduate or graduate eligible education expenses, or expenses associated with vocational education. The bill would require the Department of Finance to adjust this limit annually for inflation using the California Con

Status
Returned to Secretary of Senate pursuant to Joint Rule 62(a).

Bill Documents
CA SB 292 - 03/30/23 - Amended Senate
03/30/23 - CA SB 292 (03/30/23 - Amended Senate)