(a) Notwithstanding Section 13340 of the Government Code, all money transferred to the Schools Not Prisons Voluntary Tax Contribution Fund shall be continuously appropriated and allocated as follows:

(1) To the Franchise Tax Board, the Controller, and the State Department of Education for reimbursement of all costs incurred by the Franchise Tax Board, the Controller, and the State Department of Education in connection with their administrative duties under this article.

(2) To the State Department of Education for distribution of grants to nonprofit public charities in California that are in active status, as listed on the Secretary of State’s Internet Web site and, except as provided in subparagraph (B) of paragraph (1) of subdivision (b), are exempt from federal income taxation as an organization pursuant to Section 501(c)(3) of the Internal Revenue Code for the purpose of funding academic and career readiness programs that seek to break the school-to-prison pipeline. For purposes of this section, “school-to-prison pipeline” is the process through which pupils are pushed out of schools and into prisons. The State Department of Education shall award grants through a competitive, project-specific grant process and shall be responsible for overseeing the grant program. A nonprofit public charity awarded a grant under this section shall not use more than 10 percent of the grant for administrative expenses.

(b) The State Department of Education shall award the grants described in paragraph (2) of subdivision (a) pursuant to all of the following:

(1) (A) Except as provided in subparagraph (B), an eligible applicant shall be a nonprofit public charity with current 501(c)(3) status.

(B) A nonprofit public charity that does not have current 501(c)(3) status may apply with a nonprofit public charity sponsor that has current 501(c)(3) status.

(C) Each applicant shall submit an Internal Revenue Service statement certifying the charity’s nonprofit status.

(D) For purposes of this section, “current 501(c)(3) status” means exempt from federal income taxation as an organization pursuant to Section 501(c)(3) of the Internal Revenue Code.

(2) Projects that are eligible for grants shall serve one or more of the following target populations:

(A) Youth who are, or have been within the last five years, wards of the court.

(B) Youth who are considered “opportunity youth.” For purposes of this section, “opportunity youth” means youth between the ages of 16 to 24, inclusive, who are out of school and unemployed.

(C) Youth who attend, or within the last two years have graduated from, a school that has been given a “red” or “orange” performance designation on any one of the state or local indicators on the California School Dashboard for the most recent academic year reported.

(D) Youth who currently participate in, or within the last two years have completed, a continuation education program.

(E) Youth who are any of the following types of “targeted disadvantaged pupils” pursuant to the local control funding formula supplemental funding guidelines:

(i) Youth who are English learners.

(ii) Youth who are foster youth.

(iii) Youth who meet income requirements to receive a free or reduced-price meal.

(3) The State Department of Education shall provide funding for grant awards to applicants with proposals that satisfy paragraph (4) and demonstrate advancement of the following objectives:

(A) Youth leadership development.

(B) Youth or community organizing.

(C) Pupil enrichment.

(D) Youth life skills development.

(E) Youth workforce readiness development.

(F) Youth mentorship.

(4) The State Department of Education shall evaluate and prioritize all of the following in selecting an applicant to receive a grant:

(A) The applicant’s development of clearly articulated outcomes.

(B) The applicant’s capacity to operate culturally competent, high-quality, and cost-effective programs for the target population or populations identified pursuant to paragraph (2).

(C) The extent to which the applicant’s proposal advances the identified funding objectives listed in paragraph (3) for the identified target population or populations identified pursuant to paragraph (2).

(D) The applicant’s demonstration of viability of its proposed program beyond the life cycle of the grant program, including, but not limited to, a plan to pursue other forms of funding, to leverage existing resources, and to collaborate with local, state, or federal partners. Each applicant’s proposal shall include, and be evaluated by the State Department of Education based on, the demonstrated need of the community to be served, alignment of projected outcomes with grant program goals, and evidence of effectiveness in serving the target population or populations identified pursuant to paragraph (2).

(5) A grant award shall be in the amount of ten thousand dollars ($10,000), at minimum, and may not exceed seventy-five thousand dollars ($75,000), as determined by the State Department of Education.

(6) Each recipient shall use grant moneys to provide direct community-based services to the target population or populations identified pursuant to paragraph (2).

(7) Grant moneys shall not be used for any purpose outside of this state.

(c) The State Department of Education shall comply with the Internet Web site reporting requirements described in Section 18873.

(Added by Stats. 2018, Ch. 441, Sec. 1. (AB 2944) Effective January 1, 2019. Inoperative on date prescribed in Section 18913. Repealed, pursuant to Section 18913, on December 1 following inoperative date.)