Bill Text: CA AB462 | 2009-2010 | Regular Session | Introduced
Bill Title: Public postsecondary education: systemwide fees:
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-04-22 - From committee without further action pursuant to Joint Rule 62(a). [AB462 Detail]
Download: California-2009-AB462-Introduced.html
BILL NUMBER: AB 462 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Price
FEBRUARY 24, 2009
An act to add Article 3.5 (commencing with Section 66026) to
Chapter 2 of Part 40 of Division 5 of Title 3 of the Education Code,
and to add Section 17044 to the Revenue and Taxation Code, relating
to public postsecondary education, and making an appropriation
therefor, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 462, as introduced, Price. Public postsecondary education:
systemwide fees: limitations: tax levy.
(1) The Donahoe Higher Education Act sets forth, among other
things, the missions and functions of California's public and
independent segments of higher education and their respective
institutions of higher education. The act establishes the California
State University, under the administration of the Trustees of the
California State University, and the University of California, under
the administration of the Regents of the University of California, as
2 of the segments of public postsecondary education in this state.
The act provides that it applies to the University of California only
to the extent that the regents act, by resolution, to make it
applicable.
This bill would establish the College Affordability Act of 2009.
The bill would limit, notwithstanding any law and commencing with the
2010-11 fiscal year, the systemwide tuition and fees charged to
resident undergraduate students at the California State University
and the University of California to those in effect during the
2009-10 academic year. Commencing with the 2015-16 fiscal year, the
bill would limit any increase in statewide tuition and fees to the
annual percentage change in the California Consumer Price Index for
the prior year. The bill would apply to the University of California
only if the regents, by resolution, make it applicable.
The bill would create the College Affordability Funding
Accountability Panel. The panel would be required to annually review
the expenditure of funds received pursuant to the tax created in (2)
and provide an accountability update to the public that would be
posted on the California State University and University of
California Internet Web sites.
(2) The Personal Income Tax Law provides for specified treatment
and calculations with respect to the taxation of the income of
residents, nonresidents, and part-year residents.
This bill would, in addition, for each taxable year beginning on
or after January 1, 2010, impose an additional tax at the rate of 1%
on that portion of a taxpayer's taxable income in excess of
$1,000,000. Revenue from the additional tax would be deposited in the
General Fund. Sixty percent of these revenues would be credited to
the College Affordability Fund, which the bill would create. The bill
would continuously appropriate the money in that fund to the
California State University and the University of California. The
bill would require that the funds be used to offset increased costs
of educating resident undergraduate students attending the California
State University and the University of California thereby mitigating
the need for increases in student tuition and fees. In the event
that the provisions of the bill would not apply to the University of
California, the bill would require the California State University to
receive all of the revenues that would have been allocated to the
University of California. This bill would provide that its provisions
are severable.
(3) This bill would result in a change in state taxes for the
purpose of increasing state revenues within the meaning of Section 3
of Article XIII A of the California Constitution, and thus would
require for passage the approval of 2/3 of the membership of each
house of the Legislature.
This bill would take effect immediately as a tax levy.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 3.5 (commencing with Section 66026) is added to
Chapter 2 of Part 40 of Division 5 of Title 3 of the Education Code,
to read:
Article 3.5. College Affordability Act of 2009
66026. This act shall be known, and may be cited as, the College
Affordability Act of 2009.
66027. The Legislature finds and declares as follows:
(a) Education is the foundation of our society and maximum efforts
should be made to help all students attend college.
(b) The State of California has a historical commitment to making
higher education accessible and affordable for all eligible students.
(c) California's 21st century economy needs a strong public
university system that is accessible and affordable to all
Californians and can provide an educated workforce.
(d) Student tuition and fees, at the University of California and
the California State University has almost doubled in the past six
years, making it much more difficult for California families to send
their children to college.
(e) According to a recent study released by the Public Policy
Institute of California, nearly two-thirds of Californians believe
that a person must have a college education to succeed in today's
workplace and that the cost of college prevents qualified, motivated
students from pursuing higher education. Eighty-four percent of
residents, an overwhelming share, believe college affordability is a
problem.
(f) This article will help give all of California's children the
opportunity to attend college by freezing statewide mandatory tuition
and fees paid by resident undergraduate students at the California
State University and University of California and provide additional
funding for these institutions.
66028. (a) For purposes of this article, "base year" means the
statewide mandatory tuition and fees paid by resident undergraduate
students to attend the California State University or the University
of California in the 2009-10 academic year.
(b) Notwithstanding any law, commencing with the 2010-11 fiscal
year and continuing for a period of five years, there shall be no
increase in the amount of systemwide tuition and fees charged to
resident undergraduate students at the California State University
and University of California. The amount of systemwide tuition and
fees charged to those students shall not exceed the tuition and fees
in effect as of the base year. Commencing with the 2015-16 fiscal
year, any increase in the amount of statewide tuition and fees
charged to resident undergraduate students at the California State
University and University of California shall not exceed the annual
percentage change in the California Consumer Price Index for the
prior year.
(c) This article and Section 17044 of the Revenue and Taxation
Code shall apply to the University of California only if the Regents
of the University of California, by appropriate resolution, make them
applicable.
66029. (a) There is hereby established the College Affordability
Funding Accountability Panel. The panel shall be comprised of six
members appointed by the Governor for a term of two years, including
two members representing administrators, two members representing
faculty, and two members representing resident undergraduate students
from the California State University and University of California.
(b) The panel shall annually review the expenditure of funds that
the California State University and the University of California
receive pursuant to Section 17044 of the Revenue and Taxation Code.
The panel shall annually provide an accountability update to the
public that details the expenditure of these funds on a
campus-by-campus basis for the preceding fiscal year. The
accountability update shall be posted on the California State
University and University of California Internet Web sites.
SEC. 2. Section 17044 is added to the Revenue and Taxation Code,
to read:
17044. (a) For each taxable year beginning on or after January 1,
2010, in addition to any other taxes imposed by this part, an
additional tax shall be imposed at the rate of 1 percent on that
portion of a taxpayer's taxable income in excess of one million
dollars ($1,000,000).
(b) The revenue from the additional tax imposed under subdivision
(a) shall be deposited in the General Fund of the State Treasury.
Sixty percent of these revenues shall be credited to the College
Affordability Fund, which is hereby created. Notwithstanding Section
13340 of the Government Code, the money in the College Affordability
Fund is hereby continuously appropriated to be disbursed on an annual
basis by the Legislature to the California State University and
University of California for expenditure for the purposes of the
College Affordability Act of 2009 (Article 3.5 (commencing with
Section 66026) of Chapter 2 of Part 40 of Division 5 of Title 3 of
the Education Code). The funds shall be used to offset increased
costs of educating resident undergraduate students attending the
California State University and University of California mitigating
the need for other unnecessary increases in student tuition and fees.
Costs eligible for funding shall include, but need not be limited
to, the funding of student instructional materials, new technology,
student scholarships and grants, libraries, campus safety
improvements, and faculty salaries.
(c) The ratio of revenues allocated to the California State
University and University of California pursuant to this section
shall be the same ratio of the resident undergraduate statewide
mandatory fee revenue collected by the California State University to
the University of California in the 2009-10 academic year.
(d) If the Regents of the University of California do not pass a
resolution pursuant to subdivision (c) of Section 66028 of the
Education Code, the University of California shall receive no
revenues provided pursuant to this section. In this event, the
California State University shall receive all of the revenues that
would have been allocated to the University of California.
(e) The funding established pursuant to the College Affordability
Act of 2009 shall be used to supplement, and not supplant, existing
levels of federal, state, and local funding for the California State
University or the University of California.
(f) Moneys in the College Affordability Fund shall not be used for
any purpose other than the purposes authorized pursuant to the
College Affordability Act of 2009 and shall not be loaned to any
other public entity or fund of that entity.
SEC. 3. The provisions of this act are severable. If any provision
of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.
SEC. 4. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
