Bill Text: CA AB1261 | 2013-2014 | Regular Session | Amended

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Bill Title: Preschool: privately funded pilot program: tax credits.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2014-06-05 - From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on ED. [AB1261 Detail]

Download: California-2013-AB1261-Amended.html

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BILL NUMBER: AB 1261	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 5, 2014
	AMENDED IN ASSEMBLY  MAY 6, 2013
	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly  Member   Gorell
  Members   Gorell,   Holden, 
 and Olsen 
    (  Principal coauthor:   Assembly Member
  Bocanegra   ) 

                        FEBRUARY 22, 2013

   An act to amend Section  17292.5 of the Education Code,
relating to public school facilities.   41202 of, and to
add and repeal Article 7.5 (commencing with Section 8239.5) of
Chapter 2 of Part 6 of Division 1 of Title 1 of, the Education Code,
and to add and repeal Sections 17053.87 and 23687 of the Revenue and
Taxation Code, relating to preschool funding. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1261, as amended, Gorell.  Public school facilities:
expelled pupils program.   Preschool: privately funded
pilot program: tax credits.  
   Existing law, the Child Care and Development Services Act,
administered by the State Department of Education, requires the
Superintendent of Public Instruction to administer child care and
development programs that offer a full range of services for eligible
children from infancy to 13 years of age. Existing law requires the
Superintendent to administer all California state preschool programs,
including, but not limited to, part-day and full-day age and
developmentally appropriate programs for 3- and 4-year-old children.
 
   This bill would, until January 1, 2020, authorize the department,
as part of a pilot program, to accept monetary contributions made to
the California Preschool Investment Fund, which this bill would
create, by a person for purposes of preschool education, as provided.
The bill would require the money in the fund to be used to, among
other things, fund state preschools part of the California state
preschool program located in one of the 5 participating counties, as
provided. The bill would require participating counties to report to
the department's Early Education & Support Division regarding the
county's assessment of how the pilot program is performing. The bill
would require any moneys remaining in the fund after January 1, 2020,
to be transferred to any other state fund identified by the
department that provides funding for increased access to preschool
programs for low-income children.  
   The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.  
   This bill, under both laws, for taxable years beginning on or
after January 1, 2015, and before January 1, 2019, would allow a
credit equal to 40% of the amount contributed by the taxpayer during
the taxable year to the California Preschool Investment Fund, as
provided. The bill would limit the aggregate amount of credit allowed
under both laws to not exceed $250,000,000 and would require the
State Department of Education to establish a procedure for a person
to obtain from the department a receipt indicating specified
information, including the amount of monetary contributions made, for
purposes of the tax credits allowed under these provisions. 

   The bill would, until January 1, 2020, require the total annual
amount of credits claimed pursuant to these provisions to be treated
as though they were proceeds of taxes for purposes of calculating the
moneys to be applied by the state for the support of school
districts and community college districts pursuant to a specified
provision of the California Constitution.  
   Existing law requires a school district that operates a program
for expelled pupils to use available school facilities that conform
with specified requirements, apply for emergency portable classrooms,
or enter into a lease agreement for facilities, as specified.
 
   This bill would also authorize a school district, if facilities
that conform to specified requirements are not available, to submit a
request to the State Allocation Board to exempt a building or
portion of a building to be used to operate a program for expelled
pupils from the definition of "school building." The bill would
authorize the State Allocation Board to grant an exemption for no
longer than 2 years, if certain requirements are met. The bill would
provide that the exemption is renewable. The bill would make other
nonsubstantive changes. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Article 7.5 (commencing with Section
8239.5) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of
the   Education Code   , to read:  

      Article 7.5.  California Preschool Investment Pilot Program


   8239.5.  The Legislature finds and declares that by providing an
additional source of funding, the state can expand the number of
preschool slots and the number of subsidies provided to help reduce
the waitlist for parents seeking prekindergarten child care
assistance.
   8239.6.  For purposes of this article, the following terms have
the following meanings:
   (a) "Department" means the State Department of Education.
   (b) "Fund" means the California Preschool Investment Fund.
   (c) "Person" means an individual, partnership, corporation,
limited liability company, association, or other group, however
organized.
   (d) "Program" means the five-county investor funded preschool
pilot program.
   8239.7.  (a) No later than June 1, 2015, a county may apply to the
department for consideration of inclusion in the program. For
purposes of this section, a county's local child care and development
planning council, established pursuant to Chapter 2.3 (commencing
with Section 8499), shall be responsible for making the application
authorized pursuant to this section.
   (b) No later than September 1, 2015, the department shall
determine, pursuant to subdivision (c), the five counties that shall
be included in the program. When making this determination, the
department shall ensure that urban, suburban, and rural counties are
represented in the program.
   (c) The department shall make the determination of which five
counties shall be included in the program by giving priority to
counties that meet any of the following factors:
   (1) The length of the county's waitlist of individuals seeking
public child care assistance.
   (2) The ability to increase the number of preschool slots
available to children in the county.
   (3) Whether the county received federal Race to the Top funds,
authorized under the federal American Recovery and Reinvestment Act
of 2009 (Public Law 111-5), with favorable consideration going to the
counties that received the funds.
   8239.8.  (a) (1) The department may accept monetary contributions
made by a person for funding the purposes of this article. The
California Preschool Investment Fund is hereby created in the State
Treasury to receive any monetary contributions made pursuant to this
article.
   (2) (A) The department shall establish a procedure for a person to
make monetary contributions to the fund and for a person to obtain
from the department a receipt that indicates the amount of monetary
contributions made by that person. The receipt shall also contain, at
minimum, the date the monetary contribution was made, the name of
the person who made the contribution, the amount of the monetary
contribution, and whether the person has or has not been allocated a
tax credit pursuant to Section 17053.87 or 23687 of the Revenue and
Taxation Code.
   (B) Subject to the annual cap as provided in subdivision (f) of
Sections 17053.87 and 23687 of the Revenue and Taxation Code, the
department shall allocate credits to contributors on a first come,
first served basis.
   (C) The department shall notify the Franchise Tax Board of the
credits allocated on at least a monthly basis, and the Franchise Tax
Board and the department shall place this information on their
respective Internet Web sites together with information as to the
amount of remaining credits, at least every calendar quarter,
including information as to whether the cap described in subdivision
(f) of Sections 17053.87 and 23687 of the Revenue and Taxation Code
may be reached by the end of the calendar quarter.
   (3) Moneys in the fund shall be allocated as follows:
   (A) First, moneys in the fund shall be transferred to the General
Fund in an amount equal to the aggregate amount of certified credits
allowed pursuant to Sections 17053.87 and 23687 of the Revenue and
Taxation Code for the taxable year.
   (B) Second, upon appropriation:
   (i) To the Franchise Tax Board and the department for
reimbursement of all administrative costs incurred by those agencies
in connection with their duties under this article.
   (ii) To the department for the purposes of this article, as
provided in subdivision (b).
   (b) The money appropriated to the department pursuant to clause
(ii) of subparagraph (B) of paragraph (3) of subdivision (a) shall be
used to fund the California state preschool programs, pursuant to
Article 7 (commencing with 8235). The money shall only be used to
support state preschools located in one of the five counties
participating in the program.
   8239.9.  A county selected to participate in the program pursuant
to Section 8239.7 shall annually report to the department's Early
Education & Support Division. The report shall contain the county's
assessment of how the program is performing.
   8239.10.  (a) This article shall remain in effect only until
January 1, 2020, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2020, deletes or
extends that date.
   (b) Any moneys remaining in the fund as of January 1, 2020, shall
be transferred to any other state fund identified by the department
that provides funding for increased access to preschool programs for
low-income children. 
   SEC. 2.    Section 41202 of the   Education
Code   is amended to read: 
   41202.  The words and phrases set forth in subdivision (b) of
Section 8 of Article XVI of the Constitution of the State of
California shall have the following meanings:
   (a) "Moneys to be applied by the State," as used in subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
appropriations from the General Fund that are made for allocation to
school districts, as defined, or community college districts. An
appropriation that is withheld, impounded, or made without provisions
for its allocation to school districts or community college 
districts,   districts  shall not be considered to
be "moneys to be applied by the State."
   (b)  (1)    "General Fund revenues which may be
appropriated pursuant to Article XIII B," as used in paragraph (1) of
subdivision (b) of Section 8 of Article XVI, means General Fund
revenues that are the proceeds of taxes as defined by subdivision (c)
of Section 8 of Article XIII B of the California Constitution,
including, for the 1986-87 fiscal year only, any revenues that are
determined to be in excess of the appropriations limit established
pursuant to Article XIII B for the fiscal year in which they are
received. General Fund revenues for a fiscal year to which paragraph
(1) of subdivision (b) is being applied shall include, in that
computation, only General Fund revenues for that fiscal year that are
the proceeds of taxes, as defined in subdivision (c) of Section 8 of
Article XIII B of the California Constitution, and shall not include
prior fiscal year revenues. Commencing with the 1995-96 fiscal year,
and each fiscal year thereafter, "General Fund revenues that are the
proceeds of taxes," as defined in subdivision (c) of Section 8 of
Article XIII B of the California Constitution, includes any portion
of the proceeds of taxes received from the state sales tax that are
transferred to the counties pursuant to, and only if, legislation is
enacted during the 1995-96 fiscal year the purpose of which is to
realign children's programs. The amount of the proceeds of taxes
shall be computed for any fiscal year in a manner consistent with the
manner in which the amount of the proceeds of taxes was computed by
the Department of Finance for purposes of the Governor's Budget for
the Budget Act of 1986. 
   (2) (A) For purposes of calculating the moneys to be applied by
the state, as used in subdivision (b) of Section 8 of Article XVI,
the "General Fund revenues that are the proceeds of taxes," as
defined in subdivision (c) of Section 8 of Article XIII B of the
California Constitution, shall include the total annual amount of
credit claimed pursuant to Sections 17053.87 and 23687 of the Revenue
and Taxation Code as though they were proceeds of taxes.  
   (B) This paragraph shall become inoperative on January 1, 2020.

   (c) "General Fund revenues appropriated for school districts," as
used in paragraph (1) of subdivision (b) of Section 8 of Article XVI
of the California Constitution, means the sum of appropriations made
that are for allocation to school districts, as defined in Section
41302.5, regardless of whether those appropriations were made from
the General Fund to the Superintendent, to the Controller, or to any
other fund or state agency for the purpose of allocation to school
districts. The full amount of any appropriation shall be included in
the calculation of the percentage required by paragraph (1) of
subdivision (b) of Article XVI, without regard to any unexpended
balance of any appropriation. Any reappropriation of funds
appropriated in any prior year shall not be included in the sum of
appropriations.
   (d) "General Fund revenues appropriated for community college
districts," as used in paragraph (1) of subdivision (b) of Section 8
of Article XVI of the California Constitution, means the sum of
appropriations made that are for allocation to community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Chancellor of the
California Community Colleges, or to any other fund or state agency
for the purpose of allocation to community college districts. The
full amount of any appropriation shall be included in the calculation
of the percentage required by paragraph (1) of subdivision (b) of
Article XVI, without regard to any unexpended balance of any
appropriation. Any reappropriation of funds appropriated in any prior
year shall not be included in the sum of appropriations.
   (e) "Total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B," as used in paragraph (2) or (3) of subdivision
(b) of Section 8 of Article XVI of the California Constitution, means
the sum of appropriations made that are for allocation to school
districts, as defined in Section 41302.5, and community college
districts, regardless of whether those appropriations were made from
the General Fund to the Controller, to the Superintendent, to the
Chancellor of the California Community Colleges, or to any other fund
or state agency for the purpose of allocation to school districts
and community college districts. The full amount of any appropriation
shall be included in the calculation of the percentage required by
paragraph (2) or (3) of subdivision (b) of Section 8 of Article XVI,
without regard to any unexpended balance of any appropriation. Any
reappropriation of funds appropriated in any prior year shall not be
included in the sum of appropriations.
   (f) "General Fund revenues appropriated for school districts and
community college districts, respectively" and "moneys to be applied
by the state for the support of school districts and community
college districts," as used in Section 8 of Article XVI of the
California Constitution, shall include funds appropriated for
part-day California state preschool programs under Article 7
(commencing with Section 8235) of Chapter 2 of Part 6 of Division 1
of Title 1, and the After School Education and Safety Program
established pursuant to Article 22.5 (commencing with Section 8482)
of Chapter 2 of Part 6 of Division 1 of Title 1, and shall not
include any of the following:
   (1) Any appropriation that is not made for allocation to a school
district, as defined in Section 41302.5, or to a community college
district, regardless of whether the appropriation is made for any
purpose that may be considered to be for the benefit to a school
district, as defined in Section 41302.5, or a community college
district. This paragraph shall not be construed to exclude any
funding appropriated for part-day California state preschool programs
under Article 7 (commencing with Section 8235) of Chapter 2 of Part
6 of Division 1 of Title 1 or the After School Education and Safety
Program established pursuant to Article 22.5 (commencing with Section
8482) of Chapter 2 of Part 6 of Division 1 of Title 1.
   (2) Any appropriation made to the Teachers' Retirement Fund or to
the Public Employees' Retirement Fund except those appropriations for
reimbursable state mandates imposed on or before January 1, 1988.
   (3) Any appropriation made to service any public debt approved by
the voters of this state.
   (4) With the exception of the programs identified in paragraph
(1), commencing with the 2011-12 fiscal year, any funds appropriated
for the Child Care and Development Services Act, pursuant to Chapter
2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1.
   (g) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for school districts as defined,
those local revenues, except revenues identified pursuant to
paragraph (5) of subdivision  (h)   (j)  of
Section  42238,   42238.02,  that are used
to offset state aid for school districts in calculations performed
pursuant to Sections  2558, 42238,   2575,
42238.02,  and Chapter 7.2 (commencing with Section 56836) of
Part 30.
   (h) "Allocated local proceeds of taxes," as used in paragraph (2)
or (3) of subdivision (b) of Section 8 of Article XVI of the
California Constitution, means, for community college districts,
those local revenues that are used to offset state aid for community
college  districts in calculations performed pursuant to
Section 84700.   districts.  In no event shall the
revenues or receipts derived from student fees be considered
"allocated local proceeds of taxes."
   (i) For purposes of calculating the 4-percent entitlement pursuant
to subdivision (a) of Section 8.5 of Article XVI of the California
Constitution, "the total amount required pursuant to Section 8(b)"
shall mean the General Fund aid required for schools pursuant to
subdivision (b) of Section 8 of Article XVI of the California
Constitution, and shall not include allocated local proceeds of
taxes. 
   (j) This section shall become inoperative on December 15, 2012,
and, as of January 1, 2013, is repealed, only if the Schools and
Local Public Safety Protection Act of 2012 (Attorney General
reference number 12-0009) is not approved by the voters at the
November 6, 2012, statewide general election, or if the provisions of
that act that modify personal income tax rates do not become
operative due to a conflict with another initiative measure that is
approved at the same election and receives a greater number of
affirmative votes. 
   SEC. 3.    Section 17053.87 is added to the 
 Revenue and Taxation Code   , to read:  
   17053.87.  (a) For taxable years beginning on or after January 1,
2015, and before January 1, 2019, there shall be allowed as a credit
against the "net tax," as defined in Section 17039, an amount equal
to 40 percent of the amount contributed by the taxpayer during the
taxable year to the California Preschool Investment Fund, created by
Section 8239.8 of the Education Code.
   (b) A credit shall only be allowed if the taxpayer has received a
receipt from the State Department of Education pursuant to Section
8239.8 of the Education Code that indicates that the taxpayer has
made a contribution to the California Preschool Investment Fund and
that a credit would be allowed under this section. The taxpayer shall
provide the receipt upon request to the Franchise Tax Board.
   (c) (1) In the case where the credit allowed by this section
exceeds the "net tax," the excess may be carried over to reduce the
"net tax" in the following year, and succeeding four years if
necessary, until the credit is exhausted.
   (2) A deduction otherwise allowed under this part for any amount
contributed by the taxpayer upon which the credit is based shall be
reduced by the amount of the credit allowed in subdivision (a).
   (d) Credit under this section shall be allowed only for credits
claimed on a timely filed original return of the taxpayer.
   (e) (1) The Franchise Tax Board may prescribe rules, guidelines,
or procedures necessary or appropriate to carry out the purposes of
this section.
   (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
   (f) The aggregate amount of credit that may be allowed pursuant to
this section and Section 23687 shall not exceed two hundred fifty
million dollars ($250,000,000) for each calendar year.
   (g) This section is repealed on December 1, 2019. 
   SEC. 4.    Section 23687 is added to the  
Revenue and Taxation Code   , to read:  
   23687.  (a) For taxable years beginning on or after January 1,
2015, and before January 1, 2019, there shall be allowed as a credit
against the "tax," as defined in Section 23036, an amount equal to 40
percent of the amount contributed by the taxpayer during the taxable
year to the California Preschool Investment Fund, created by Section
8239.8 of the Education Code.
   (b) A credit shall only be allowed if the taxpayer has received a
receipt from the State Department of Education pursuant to Section
8239.8 of the Education Code that indicates that the taxpayer has
made a contribution to the California Preschool Investment Fund and
that a credit would be allowed under this section. The taxpayer shall
provide the receipt upon request to the Franchise Tax Board.
   (c) (1) In the case where the credit allowed by this section
exceeds the "tax," the excess may be carried over to reduce the "tax"
in the following year, and succeeding four years if necessary, until
the credit is exhausted.
   (2) A deduction otherwise allowed under this part for any amount
contributed by the taxpayer upon which the credit is based shall be
reduced by the amount of the credit allowed in subdivision (a).
   (d) Credit under this section shall be allowed only for credits
claimed on a timely filed original return of the taxpayer.
   (e) (1) The Franchise Tax Board may prescribe rules, guidelines,
or procedures necessary or appropriate to carry out the purposes of
this section.
   (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
   (f) The aggregate amount of credit that may be allowed pursuant to
this section and Section 17053.87 shall not exceed two hundred fifty
million dollars ($250,000,000) for each calendar year.
   (g) This section is repealed on December 1, 2019.  
  SECTION 1.    Section 17292.5 of the Education
Code is amended to read:
   17292.5.  If the governing board of a school district operates a
program for expelled pupils, the governing board shall do one or more
of the following:
   (a) Utilize available school facilities that conform to the
requirements of Part 2 (commencing with Section 2-101), Part 3
(commencing with Section 3-089-1), Part 4 (commencing with Section
4-403), and Part 5 (commencing with Section 5-102), of Title 24 of
the California Code of Regulations.
   (b) (1) If facilities that conform to the requirements specified
in subdivision (a) are not available, submit a request to the State
Allocation Board to exempt a building or portion of a building to be
used to operate a program for expelled pupils from the definition of
"school building" within the meaning of Section 17283. The State
Allocation Board may grant an exemption for no longer than two years
if the governing board demonstrates all of the following to the
satisfaction of the State Allocation Board:
   (A) The facilities are not located on a regular schoolsite.
   (B) The facilities comply with all current applicable local
building standards and all relevant local health and safety standards
in the community in which it is located.
   (C) The facilities shall be used to operate a program for expelled
pupils.
   (D) There shall be no more than 124 pupils enrolled in
kindergarten or any of grades 1 to 12, inclusive, at any one time in
the facilities, or portion of the facilities, and the remainder of
the facilities shall not be used for instructional purposes.
   (E) The use of the facilities is critical to providing an
effective community-based program.
   (F) The use of other facilities that would meet seismic safety
standards for school facilities is not practical.
   (G) A structural engineer has submitted a report certifying that
the facilities possess no substantial structural hazards.
   (2) An exemption granted pursuant to this subdivision is
renewable.
   (c) Apply for emergency portable classrooms pursuant to Chapter 14
(commencing with Section 17085) of Part 10.
   (d) Enter into a lease agreement for facilities, provided that the
facilities are limited to a structure where a structural engineer
has submitted a report that determines substantial structural hazards
do not exist. Before entering into a lease, the governing board of
the school district shall certify to the State Allocation Board that
all reasonable efforts have been made to locate the program in
facilities that conform to the structural safety standards listed in
subdivision (a).