BILL NUMBER: AB 777	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 16, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Muratsuchi

                        FEBRUARY 21, 2013

    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.   An act to add Section 242  
to the Revenue and Taxation Code, relating to taxation, to take
effect immediately, tax levy. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 777, as amended, Muratsuchi.  Adult education: fees.
  Taxes: exemption: space flight property.  
   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.  
   Pursuant to this constitutional authorization, this bill would
exempt qualified property, as defined, for use, or intended for use,
in space flight.  
   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.  
   This bill would make a legislative finding and declaration as to
the public purpose served by the bill.  
   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.  
   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. 
   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.  
   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.  
   This bill would take effect immediately as a tax levy. 

   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.  
   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. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: yes. State-mandated local program:  no
  yes  .


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

   SECTION 1.    Section 242 is added to the  
Revenue and Taxation Code   , to read:  
   242.  (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. 
   SEC. 2.    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. 
   SEC. 3.    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. 
   SEC. 4.    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. 
   SEC. 5.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  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.