California tax - child's investment income

My daughter has a college scholarship, a portion of which is taxable as it is used for room and board - let's say around $4,500 (I'm still calculating the exact amount).  She will be shown as a dependent on my return, so there's no AOTC etc on hers.

 

I've done her Federal return, and it shows no tax due.  I don't recall specifically being asked questions for the Form 8615 election.  But when I go to do the CA return in TT, it shows CA tax due of around $1,500, after asking what the income is on my 540.  I don't understand how the CA tax due can be so high (a total rate of 30%!) or what I should do to have it taxed at my rate (which is not even the highest rate for CA).

 

Please let me know.  Thanks.