Bill Text: CA AB2107 | 2013-2014 | Regular Session | Amended
Bill Title: Preschool: privately funded pilot program: tax credits.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2014-05-23 - In committee: Set, second hearing. Held under submission. [AB2107 Detail]
Download: California-2013-AB2107-Amended.html
BILL NUMBER: AB 2107 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 30, 2014
AMENDED IN ASSEMBLY APRIL 1, 2014
INTRODUCED BY Assembly Members Gorell and Olsen
FEBRUARY 20, 2014
An act 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, and making an appropriation therefor funding
.
LEGISLATIVE COUNSEL'S DIGEST
AB 2107, as amended, Gorell. 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. The act requires
the department to contract with local contracting agencies to provide
for alternative payment programs, and authorizes alternative payment
programs for services provided in licensed day care centers and
family day care homes and for other types of programs that conform to
applicable law. 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 money in the fund would be continuously appropriated to
the department, thereby making an appropriation. The bill
would require the department to disburse the money to an
alternative payment provider. The bill would require the money to be
only used to support specified families who reside in, and use, a
preschool located in, a county determined by the department to
participate in the pilot program, as provided, in the form of a
subsidy for preschool services. money in the fund to
be used, among other things, to 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 and a list of preschools that were
used by families who receive the subsidy . The bill would
require any money 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 $____ or less
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,
to be retained for purposes of the tax credits
allowed under these provisions.
Vote: majority. Appropriation: yes 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 did not receive 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 and , the name of the person
who made the contribution. The receipt shall be retained by
the person for purposes of an income contribution, the
amount of the monetary contribution, and whether the person has or
has not been allocated a tax credit the person may be
allowed pursuant to Sections
Section 17053.87 and 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) Notwithstanding Section 13340 of the Government Code, the
money in the fund are continuously appropriated, without regard to
fiscal year, to the department for the purposes of this article.
(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
amo unt 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 department shall annually disburse the funds to an
alternative payment provider. The alternative payment provider shall
disburse the money pursuant to Article 3 (commencing with Section
8220).
(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 be only only be
used to support families who reside in, and use a preschool
state preschools located in,
in one of the five counties participating in the
program, in the form of a subsidy for preschool services.
Notwithstanding the eligibility criteria established pursuant to
Section 8263, priority shall be given to families who meet all of the
following conditions: program.
(1) The family has at least one child who is four years of age.
(2) The family has at least one working parent.
(3) The family's adjusted monthly income is set at or below 70
percent of the state median income, adjusted for family size, and
adjusted annually.
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 and a list of
preschools that were used by families who receive the subsidy
pursuant to Section 8239.8 .
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 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 shall be repealed on December 1, 2019.
SEC. 3. 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 shall be repealed on December 1, 2019.
