BILL NUMBER: AB 2107 AMENDED
BILL TEXT
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 Revenu e and Taxation Code, relating to
preschool funding, and making an appropriation therefor .
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.
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. 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 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. The
bill would limit the aggregate amount of credit allowed under both
laws to $____ or less 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.
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. Existing law requires
school districts with early primary programs to provide educational
continuity from preschool through kindergarten and grades 1 to 3,
inclusive, by accomplishing certain goals, including establishing
connections with public preschools programs, as provided.
This bill would state that it is the intent of the Legislature to
enact legislation that would do certain things, including
establishing a pilot program for high-quality, investor funded
preschool education in the County of Ventura in which private
entities may invest, in exchange for state tax credits, in
high-quality preschool programs aimed specifically at
intergenerational low-income and English learner pupils.
Vote: majority. Appropriation: no yes
. Fiscal committee: no 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 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.
(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 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.
(2) 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 tax credit the person may be
allowed pursuant to Sections 17053.87 and 23687 of the Revenue and
Taxation Code.
(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.
(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). The money shall be only used to support families who reside
in, and use a preschool located 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:
(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. 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 ____ dollars
($____).
(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. 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 ____ dollars
($____).
(g) This section shall be repealed on December 1, 2019.
SECTION 1. It is the intent of the Legislature
to enact legislation that would do all of the following:
(a) Establish a pilot program for high-quality, investor funded
preschool education in the County of Ventura in which private
entities, either business or individuals, may invest in high-quality
preschool programs aimed specifically at intergenerational low-income
and English learner pupils, to run for a designated period of time.
(b) Require the County of Ventura to be responsible for compiling
and studying data to determine the program's effectiveness.
(c) Provide state tax credits to the investors of the preschool
programs.