Cal. Code Regs. tit. 5 § 31017

Current through Register 2024 Notice Reg. No. 49, December 6, 2024

Section 31017 - Forfeiture of Account Funds

(a) The following disqualifying events, if not disproved, will result in forfeiture by the Beneficiary:

(1) The Beneficiary provided false or misleading information in registering or submitting a withdrawal claim for CalKIDS Account funds;

(2) The Beneficiary was incorrectly identified as eligible.

(b) The Board shall provide the Beneficiary with written notice of the disqualifying event which, if not resolved, would result in forfeiture. The written notice shall inform the Beneficiary that they have thirty (30) days from receipt of the notice to resolve the disqualifying event before a final determination of forfeiture is made by the Executive Director of the Board and that funds will not be distributed pending resolution of the disqualifying event. If the Beneficiary receives an unsatisfactory final determination, they may appeal the determination. Such an appeal shall be submitted within thirty (30) days of receipt of the final determination.

(c) After a final determination of forfeiture has been issued and no appeal has been submitted or the Board has upheld the final determination, the Board shall withdraw the forfeited funds and deposit the funds back into the Program.

(d) Absent a successful appeal, if a Beneficiary does not use any portion, or all, of the moneys intended for the Beneficiary in a CalKIDS Account for a qualified higher education expense for any reason, including the death or disability of the Beneficiary, before the Beneficiary's 26^th birthday, all deposits and financial incentives designated for the Beneficiary in a CalKIDS Account and any earnings from those moneys shall be forfeited and deposited back into the Program.

(e) A Beneficiary, age 18 or older, or a parent or legal guardian for a Beneficiary under the age of 18, may forfeit funds from the Program, only by completing, signing, and submitting to the Board the "CalKIDS Forfeiture Form" (Rev. October 2023), that is incorporated herein by reference.

Cal. Code Regs. Tit. 5, § 31017

Note: Authority cited: Section 69996.4, Education Code. Reference: Section 69996.3, Education Code.

1. New section filed 8-15-2022; operative 8/15/2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 33).
2. New subsection (e) filed 6-26-2024; operative 10/1/2024 (Register 2024, No. 26).