Article 21.5 - The California Memorial Scholarship Program

California Education Code — §§ 70010-70011.9

Sections (9)

Amended by Stats. 2003, Ch. 62, Sec. 78. Effective January 1, 2004.

(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.

§ 70010.1

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

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.

§ 70010.5

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

(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.

§ 70010.7

Amended by Stats. 2002, Ch. 406, Sec. 9. Effective September 9, 2002.

(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.

§ 70011

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

(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.

§ 70011.3

Added by Stats. 2002, Ch. 38, Sec. 1. Effective May 13, 2002.

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.

§ 70011.5

Added by Stats. 2002, Ch. 38, Sec. 1. Effective May 13, 2002.

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.

§ 70011.7

Amended by Stats. 2002, Ch. 406, Sec. 11. Effective September 9, 2002.

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.

§ 70011.9

Added by Stats. 2002, Ch. 38, Sec. 1. Effective May 13, 2002.

(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.