Amended in Assembly April 16, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 777

Introduced by Assembly Member Muratsuchi

February 21, 2013

begin delete An act to amend Section 52517 of, and to add Sections 52612.5, 52613.5, and 52613.6 to, the Education Code, relating to adult education. end delete begin insert An act to add Section 242 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 777, as amended, Muratsuchi. begin delete Adult education: fees. end delete begin insert Taxes: exemption: space flight property. end insert

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The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 2⁄3 vote of the membership of each house.

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Pursuant to this constitutional authorization, this bill would exempt qualified property, as defined, for use, or intended for use, in space flight.

end insert begin insert

By imposing new duties upon local tax officials with respect to the personal property tax exemption described above, this bill would impose a state-mandated local program.

end insert begin insert

This bill would make a legislative finding and declaration as to the public purpose served by the bill.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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Section 2229 of the Revenue and Taxation Code requires the Legislature to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.

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This bill would provide that, notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.

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This bill would take effect immediately as a tax levy.

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Existing law authorizes the governing board of a school district maintaining an adult class to require an adult enrolled in the class to pay a fee and prohibits the governing board, after July 1, 2015, from imposing a charge for a class in English and citizenship for foreigners or a class in an elementary subject. Existing law requires each governing board of a school district to charge a nonimmigrant alien a fee to cover the full costs of instruction for maintaining certain classes for adults.

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This bill would provide for the reenactment of that authorization and those requirements, with nonsubstantive changes, if those existing provisions are repealed on or before January 1, 2014. The bill would require the State Department of Education to identify, and recommend to the Legislature, a dedicated funding stream for supporting adult education, regional occupation centers, and career technical education programs.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 242 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

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begin insert 242. end insert   

(a) There is exempted from the taxes imposed by this part
qualified property for use, or for intended use, in space flight.

(b) For purposes of this section:

(1) “Qualified property” means any of the following:

(A) Tangible personal property, whether raw materials, work
in process or finished goods, that has, or upon manufacture,
assembly, or installation has, space flight capacity, including, but
not limited to, an orbital space facility, space propulsion system,
space vehicle, launch vehicle, satellite, or space station of any
kind, and any component thereof, regardless of whether that
property is to be ultimately returned to this state.

(B) Tangible personal property to be placed or used aboard
any facility, system, vehicle, satellite, or station described in
subparagraph (A), regardless of whether that property is to be
ultimately returned to this state.

(C) Fuel of a quality that is not adaptable for use in ordinary
motor vehicles, but is produced, sold, and used exclusively for
space flight.

(2) “Space flight” means any flight designed for suborbital,
orbital, or interplanetary travel by a space vehicle, satellite, space
facility, or space station of any kind.

(c) The exemption established by this section shall not be denied
by reason of failure, postponement, or cancellation of a launch of
a space vehicle, satellite, space facility, or space station of any
kind, or the destruction of any launch vehicle or any component
thereof, but the exemption shall not apply to any material that is
not intended to by launched into space.

(d) The exemption pursuant to this section shall apply to lien
dates that are on or after January 1, 2007.

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begin insert

begin insert SEC. 2. end insert   

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begin insert The Legislature finds and declares that this act fulfills
a statewide public purpose because it promotes businesses within
the state that consistently expand and provide secure employment
in a much needed industry. end insert

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begin insert SEC. 3. end insert   

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If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

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begin insert

begin insert SEC. 4. end insert   

end insert begin insert

Notwithstanding Section 2229 of the Revenue and
Taxation Code, no appropriation is made by this act and the state
shall not reimburse any local agency for any property tax revenues
lost by it pursuant to this act.

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begin insert

begin insert SEC. 5. end insert   

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This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.

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SECTION 1.  

The Legislature finds and declares all of the
following:

(a) To support local efforts for workforce development and
prepare Californians for the new economy, adult education should
be fully funded.

(b) Regional occupation centers and career technical education
programs address the shortage of highly qualified, skilled, and
diverse workers in the workforce, prepare California’s youth and
adults to be successful contributors to that workforce, and add to
the economic well-being of California.

(c) A dedicated funding stream should be identified for district
regional occupation centers, joint powers authorities that operate
regional occupation centers, and adult education programs.

SEC. 2.  

Section 52517 of the Education Code is amended to
read:

52517.  

(a) A high school or unified school district shall not
report for state apportionments average daily attendance in classes
under either of the following conditions:

(1) If the district receives full compensation for the class from
any public or private agency, individual, or group of individuals,
except fees authorized by Section 52612.5.

(2) The classes are not located in facilities clearly identified in
a manner, and established by appropriate procedures, to insure that
attendance in those classes is open to the general public, except
those authorized pursuant to Section 52570 and those in state
hospitals.

(b) The State Board of Education may adopt regulations as may
be necessary to enforce this section.

SEC. 3.  

Section 52612.5 is added to the Education Code, to
read:

52612.5.  

(a) (1) Except as specified in this section, the
governing board of a school district maintaining a class for adults
may require an adult enrolled in the class to pay a fee for the class.

(2) Except as specified in Section 52613.5, the governing board
of a school district shall not impose a charge of any kind for a class
in English and citizenship or a class in an elementary subject.

(3) A fee shall not be charged for a class designated by the
governing board as a class for which high school credit is granted
if the class is taken by a person who does not hold a high school
diploma.

(4) The total of the fees required and revenues derived from
average daily attendance for classes for adults shall not exceed the
estimated cost of all those classes maintained under this section,
including any funds whose expenditure is subject to Section
52501.5.

(b) A textbook, or any other type of instructional material, that
is furnished without charge for a course in which some students
are required pursuant to this section to pay fees may also be offered
for sale at the school bookstore.

(c) Notwithstanding subdivision (a), the governing board of a
school district may charge a fee for a class in English and
citizenship until July 1, 2015.

SEC. 4.  

Section 52613.5 is added to the Education Code, to
read:

52613.5.  

(a) Notwithstanding any other provision of law, the
governing board of a school district maintaining classes for adults
that issues a Certificate of Eligibility for Nonimmigrant (F-1)
Student Status - For Academic and Language Students, Form
I-20AB, or completes Form I-20AB for a nonimmigrant alien, as
defined in Section 1101(a)(15)(F)(i) of Title 8 of the United States
Code, for the purposes of enrolling the nonimmigrant alien in a
class in English and citizenship for foreigners or a class in an
elementary subject, shall charge the nonimmigrant alien a fee to
cover the full costs of instruction, but the fee shall not exceed the
actual cost of the instruction. The fee shall be adopted at a regular
meeting of the governing board of each of these school districts
maintaining classes for adults at least 90 days prior to the
commencement of the classes for which the fee is charged.

(b) A district maintaining classes for adults shall not include
the attendance of F-1 visa students enrolled in a class in English
and citizenship for foreigners or in a class in elementary subjects
for apportionment purposes.

SEC. 5.  

Section 52613.6 is added to the Education Code, to
read:

52613.6.  

The department shall identify, and recommend to the
Legislature, a dedicated funding stream for supporting adult
education, regional occupation centers, and career technical
education programs.

SEC. 6.  

This act shall become operative only if Sections 52612
and 52613 of the Education Code are repealed on or before January
1, 2014.

end delete