California Code, Education Code - EDC § 69996.8

(a) The board may establish rules and regulations to ensure that money in a KIDS Account established pursuant to this article is disbursed directly to the institution of higher education indicated on the award recipient's claim form.  These rules and regulations, if established, shall ensure that the program meets all applicable criteria for federal tax-deferral benefits, federal tax-exempt benefits, or both.

(b) Moneys in the fund or in KIDS Accounts authorized under this article are nontransferable to any person other than the award recipient or any other entity than the institution of higher education indicated on the award recipient's claim form, and may only be used for the purposes stated in this article.  Moneys in the fund or in KIDS Accounts authorized by this article shall not be pledged as collateral for any loan.

(c) The board shall request each KIDS Account recipient or their parent or legal guardian to voluntarily report personal information about the award recipient, including, but not limited to, ethnicity, gender, and family income.  The board shall compile and retain that information in a confidential manner so that the personal information of any award recipient is not publicly disclosed in a manner that may be associated with a particular individual.