Bill Text: CA SB150 | 2015-2016 | Regular Session | Amended

California Senate Bill 150 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Personal Income Tax Law: exclusion: student loan debt forgiveness.

Spectrum: Strong Partisan Bill (Republican 11-1)

Status: (Passed) 2015-10-08 - Chaptered by Secretary of State. Chapter 650, Statutes of 2015. [SB150 Detail]

Download: California-2015-SB150-Amended.html

BILL NUMBER: SB 150	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 14, 2015

INTRODUCED BY    Senator   Huff 
 Senators   Nguyen   and Huff 
    (   Coauthors:   Senators  
Berryhill,   Morrell,   and Vidak   )


                        JANUARY 29, 2015

    An act to amend Section 45060 of the Education Code,
relating to certificated school employees.   An act to
add Section 17144.7 to the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 150, as amended,  Huff   Nguyen  .
 Certificated school employees: salary deduction for
organization dues.   Personal Income Tax Law: exclusion:
student loan debt forgiveness.  
   The Personal Income Tax Law provides for various exclusions from
gross income, including an exclusion for the amount of student loan
indebtedness repaid or canceled pursuant to a specified federal law.
 
   This bill would exclude from gross income the amount of student
loan indebtedness discharged on or after January 1, 2015, for an
eligible individual who is granted a discharge under specified
agreements, as provided.  
   This bill would take effect immediately as a tax levy. 

   Existing law requires the governing board of a school district to
reduce a certificated school employee's salary, pursuant to the
employee's authorization, to pay the employee's dues in a local or
statewide professional organization.  
   This bill would make nonsubstantive changes to this provision.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 17144.7 is added to the 
 Revenue and Taxation Code   , to read:  
   17144.7.  (a) Section 108(f)(1) of the Internal Revenue Code is
modified to additionally provide that in the case of an individual,
gross income does not include any amount that, but for this section,
would be includible in gross income by reason of the discharge, in
whole or in part, of any student loan if the individual is an
eligible individual for the taxable year.
   (b) Section 108(f)(2) of the Internal Revenue Code is modified to
additionally provide that a student loan means a student obligation
note or other debt evidencing a loan to any individual for the
purpose of attending a for-profit higher education company or for the
purpose of consolidating or refinancing a loan used to attend a
for-profit higher education company, which is either a guaranteed
student loan, an educational loan, or a loan eligible for
consolidation or refinancing under Part B of Title IV of the Higher
Education Act of 1965, as amended (20 U.S.C. Sec. 1071 et seq.).
   (c) For purposes of this section, an individual is an eligible
individual for a taxable year if either of the following apply during
the taxable year:
   (1) The individual is granted a discharge of any student loan
pursuant to the discharge agreement.
   (2) The individual is granted a discharge of any student loan
pursuant to paragraph 23 of the William D. Ford Federal Direct Loan
Program Borrower's Rights and Responsibilities Statement because of
either of the following:
   (A) The individual could not complete a program of study because
the school closed.
   (B) The individual successfully asserts that the school did
something wrong or failed to do something that it should have done.
   (d) For purposes of this section, "discharge agreement" means the
agreement between ECMC Group, Inc., Zenith Education Group, and the
Consumer Financial Protection Bureau concerning the purchase of
certain assets of Corinthian Colleges, Inc., dated February 2, 2015.
   (e) This section shall apply to discharges of indebtedness
occurring on or after January 1, 2015. 
   SEC. 2.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  SECTION 1.    Section 45060 of the Education Code
is amended to read:
   45060.  (a) Except as provided in Section 45061, the governing
board of each school district, when drawing an order for the salary
payment due to a certificated employee of the school district, shall
reduce the order, with or without charge, by the amount the employee
has requested in a revocable written authorization for the purpose of
paying the dues of the employee for membership in any local or
statewide professional organization or in any other professional
organization affiliated or otherwise connected with a statewide
professional organization that authorizes the statewide organization
to receive membership dues on its behalf and for the purpose of
paying his or her pro rata share of the costs incurred by the school
district in making the deduction. This charge shall not exceed the
actual cost to the school district of the dues deduction. The
revocation of a written authorization shall be in writing and shall
be effective commencing with the next pay period.
   (b) Unless otherwise provided in an agreement negotiated pursuant
to Chapter 10.7 (commencing with Section 3540) of Division 4 of Title
1 of the Government Code, the governing board of a school district,
no later than the 10th day of each pay period for certificated
employees, shall draw its order upon the funds of the school district
in favor of the organization designated by the employee for an
amount equal to the total of the dues deductions made with respect to
that organization for the previous pay period and shall transmit the
total amount to that organization no later than the 15th day of each
pay period for certificated employees. When timely transmittal of
dues payments by a county is necessary for a school district to
comply with the provisions of this section, the county shall act in a
timely manner. If the employees of a school district do not
authorize the governing board of the school district to make a
deduction to pay their pro rata share of the costs of making
deductions for the payment of dues, the governing board of the school
district shall deduct from the amount transmitted to the
organization on whose account the dues payments were deducted the
actual costs of making the deduction.
   (c) The revocable written authorization shall remain in effect
until expressly revoked in writing by the employee. Whenever there is
a change in the amount required for the payment to the organization,
the employee organization shall provide the employee with adequate
and necessary data on the change at a time sufficiently prior to the
effective date of the change to allow the employee an opportunity to
revoke the written authorization, if desired. The employee
organization shall provide the public school employer with
notification of the change at a time sufficiently before the
effective date of the change to allow the employer an opportunity to
make the necessary adjustments and with a copy of the notification of
the change that has been sent to all concerned employees.
   (d) The governing board of a school district shall not require the
completion of a new deduction authorization when a dues change has
been effected or at any other time without the express approval of
the concerned employee organization.