(

a) Funds appropriated pursuant to

Schedule of Item 0954-162-8506 of

Section 2.00 of the Budget Act of shall be used to support program enhanced deposits and to establish KIDS Accounts for eligible children who do not already have a KIDS Account established. For the 2021–22 fiscal year, funds appropriated pursuant to Provision of Item 0954-101-0001 of

Section 2.00 of the Budget Act of shall be used to support program enhanced deposits and to establish KIDS Accounts for eligible children that are ineligible to receive funds appropriated pursuant to

Schedule of Item 0954-162-8506 of

Section 2.00 of the Budget Act of 2021. Commencing with the 2022–23 fiscal year, funds appropriated pursuant to Provision of Item 0954-101-0001 of

Section 2.00 of the annual Budget Act shall be used to support program enhanced deposits and to establish KIDS Accounts for eligible children who do not already have a KIDS Account established. (

b) All assets of the fund and moneys allocated to individual KIDS Accounts shall be considered to be owned by the state until used for the payment of qualified higher education expenses at an institution of higher education. (

c) Deposits made to the fund or disbursements from the fund allocated to individual participant KIDS Accounts shall be invested through a Scholarshare account or through another investment plan determined by the board. (

d) This

article shall not be construed to prevent any child from seeking private or other funding sources to supplement the amount of funds deposited in the child’s KIDS Account. (

e) Notwithstanding any other law, funds deposited and investment returns accrued in a KIDS Account established pursuant to this

article shall augment and not supplant student financial aid from other public sources, and shall not be considered when calculating eligibility for student financial aid. (

f) Notwithstanding any other law, funds deposited and investment returns accrued in a KIDS Account established pursuant to this

article and claimed by a recipient pursuant to this

article shall be exempt from state income tax liability. (

g) To the extent permissible under federal law, funds deposited and investment returns accrued in a KIDS Account established pursuant to this

article shall not be considered in the federal needs analysis for student financial aid, as they shall be considered an asset of the state until used for the payment of qualified higher education expenses at an institution of higher education.