BILL NUMBER: SB 594 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 24, 2013
AMENDED IN SENATE APRIL 18, 2013
INTRODUCED BY Senator Steinberg
FEBRUARY 22, 2013
An act to add Part 38 (commencing with Section 64200) to Division
4 of Title 2 of the Education Code, and to add Sections 17057.6 and
23610.6 to the Revenue and Taxation Code, relating to education.
LEGISLATIVE COUNSEL'S DIGEST
SB 594, as amended, Steinberg. California Career Pathways
Investment.
The Personal Income Tax Law and The Corporation Tax Law authorize
various credits against the taxes imposed by those laws.
This bill, in accordance with legislative findings contained in
this bill and for calendar years beginning on or after January 1,
2014, would, for a business entity, as described, that provides
career technical education, authorize a credit against those taxes,
subject to specified limitations, in an amount equal to that
allocated by the California Career Pathways State Investment
Committee, a committee established by this bill. This bill would
require each school district establish in
each local educational agency and community college
district to create a Career Pathways Investment
Trust Fund, the funds moneys in which
would be used for the purposes of financing
program and administrative costs relating to the operation of career
pathways programs, as provided.
This bill would impose specified duties on school districts with
regard to career pathways programs.
Existing law authorizes the governing board of a community college
district to establish contract education programs within or outside
the state by agreement with any public or private agency,
corporation, association, or any other person or body, to provide
specific educational programs or training to meet the specific needs
of these bodies. Existing law authorizes the governing board of any
school district to initiate and carry on any program or activity, or
may to otherwise act in any manner that
is not in conflict with or inconsistent with, or preempted by, any
law and that is not in conflict with the purposes for which school
districts are established.
This bill would, among other things, authorize the California
Career Pathways State Investment Committee and a business
entity school district or districts, or a community
college district or districts, to enter into Workforce
Development Bonds, as defined, in accordance with applicable laws,
a pay-for-performance contract for a career pathways
pay-for-performance pilot project to fund career pathways
programs operated by the business entity and a
school district, community college district, or a consortium of
school districts and community college districts. The bill
would authorize a local educational agency or community college
district to issue lease revenue bonds, as specified, or enter into
loan or lease agreements, to finance the operation of career pathways
programs districts, and under which a business entity
partner may be compens ated for its costs .
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 no reimbursement shall be made
pursuant to these statutory provisions for costs mandated by the
state pursuant to this act, but would recognize that local agencies
and school districts may pursue any available remedies to seek
reimbursement for these costs.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to appropriate two
hundred fifty million dollars ($250,000,000) from the General Fund in
the 2013-14 fiscal year to the Career Pathways State Revolving Fund.
The source of funds for that appropriation may include state
apportionments for purposes of Section 8 of Article XVI of the
California Constitution and offsetting budget savings derived from
reforms to the Enterprise Zone Act (Chapter 12.8 (commencing with
Section 7070) of Division 7 of Title 1 of the Government Code) and
the New Jobs Tax Credit.
SEC. 2. Part 38 (commencing with Section 64200) is added to
Division 4 of Title 2 of the Education Code, to read:
PART 38. Career Pathways Investment Credit and Trust Fund
64200. (a) The Legislature finds and declares the following:
(1) After five years of deep recession and high rates of
unemployment, the California economy has begun to recover.
(2) One of the most important actions California can take to
hasten that recovery is to invest in the development of a skilled
workforce to perform well-paying jobs in growing and emerging sectors
of its regional economies.
(3) The fastest-growing occupations are expected to be those that
require scientific, technical, engineering, or mathematics (STEM)
skills, such as jobs in biotechnology, digital media arts,
agricultural technology, green technology, or computer-related and
health-related fields.
(4) California's systems of public education, which includes
primary and secondary schools, technical training, apprenticeship,
two-year and four-year colleges, and graduate schools, play a
critical role in workforce preparation, one that could be
significantly strengthened by a tighter focus on education and
training that delivers the skills and capacities most called for in
high-opportunity sectors.
(5) This kind of workforce preparation is best accomplished in
concert with regional business and industry, so that students receive
the most current and relevant education that prepares them to
compete for good jobs in their communities after graduation from high
school or postsecondary education and training.
(6) Work-based educational and training opportunities enhance the
employment prospects of low- and moderate-income individuals and
contribute to the stability and economic development of their
communities.
(b) It is the intent of the Legislature that federal bank
regulators, specifically, the Federal Reserve bank, the Office of the
Comptroller of the Currency, the Federal Deposit Insurance
Corporation, and the Office of Thrift Supervision, give credit to
federally insured banks and thrifts on their compliance
exams examinations under the federal Community
Reinvestment Act of 1977 (Public Law 95-128) for grants, investments,
and loans to educational institutions, nonprofit organizations, and
businesses in support of career pathways programs.
(c) It is the intent of the Legislature to establish state fiscal
incentives, such as Workforce Development Bonds, grants,
loans, pay-for-performance contracts, grants,
and tax credits, that encourage California businesses and industry to
enter into partnerships with schools and community colleges that
strengthen the nature and quality of education provided by those
institutions. These partnerships will connect high school pupils and
teachers, and college students and faculty, to real-world experience
that provides sustained exposure to applied academics, skill
development, work-related experience, and potential future
employment. This experience will keep students on track to
graduation, further education, and productive careers.
(d) The dissolution of redevelopment agencies will increase
property tax revenues to K-14 school districts and community college
districts, including the one-time distribution of redevelopment
agency cash assets expected to occur in the 2012-13 and 2013-14
fiscal years. It is the intent of the Legislature that school
districts and community college districts capitalize the Career
Pathways Investment Trust Funds established pursuant to
this act for purposes of funding grants and loans to
businesses and offsetting administrative costs of the program
financing program and administrative costs relating to
the operation of career pathways programs .
64201. For the purposes of this part:
(a) "Applicant" means a business entity that enters into a
contract or memorandum of understanding with a local educational
agency, community college, or workforce investment board to provide
career technical education that connects pupils to real-world
experience and provides sustained exposure to applied academics,
skill development, work-related education, and potential future
employment, and that applies to the committee for state
financial assistance, including Workforce Development Bonds and
the career pathways investment credit.
(b) "Authentic application" means an activity in the context of a
middle, high school, or community college course that requires pupils
to work actively with academic and technical concepts, facts, and
skills in a realistic, work-like setting that emulates the problems
encountered by professionals and the practices they use to address
them. These applications typically require pupils to examine a task
from a variety of perspectives, to draw upon multiple resources, to
collaborate with others, and to accomplish tasks and projects by
working in teams rather than individually.
(c)
(b) "Budget" means an estimate of all qualified
expenditures to be paid or incurred in providing the career pathways
program over the period for which the applicant is applying for the
career pathways investment credit.
(c) "Career Pathways Investment Trust Fund" means a fund
established in each local educational agency and community college
district for the purpose of financing program and administrative
costs relating to the operation of career pathways programs.
(d) "Career pathways pay-for-performance pilot project" means a
career pathways program approved for funding by the committee under a
pay-for-performance contract between the committee and the school
district or districts or community college district or districts. The
pay-for-performance contract shall specify the accountability and
performance measurements that determine the extent to which a
business entity partnering with the school districts or districts or
community college district or districts may be compensated for its
costs. The amount of compensation shall vary in accordance with
demonstrated performance. Performance measures shall include all of
the following:
(1) Demonstrated improvement in academic performance.
(2) Demonstrated improvement in postsecondary enrollment.
(3) Decreased dropout rates.
(4) Demonstrated improvement in transitions to appropriate
employment, apprenticeships, or any other job training school, if
applicable.
(5) Measurements of pupil, parent, and employer satisfaction.
(d)
(e) "Career pathways programs" means programs that
support the following:
(1) Integrated academic and technical learning that prepares
pupils for both postsecondary education and careers in high-growth or
high-need sectors of the economy. These programs include core
academic courses emphasizing authentic applications, sequences or
clusters of three or more courses that align with the Office of the
Chancellor of the California Community Colleges-approved or state
board-approved career technical education standards and frameworks
that also integrate key academic concepts and skills, work-based
learning opportunities, and additional services like counseling or
supplementary instruction in reading, writing, and mathematics. These
programs may be delivered through high schools, regional
occupational centers or programs, California Partnership Academies or
other career academies, alternative education programs, including
continuation schools and programs administered by county offices of
education, adult education programs, or community colleges.
(2) Curriculum and professional development.
(3) Middle school and early high school career exploration
activities.
(4) Externship and fellowship opportunities that expose middle
school and high school teachers and community college faculty to the
skills and competencies that pupils need for successful employment in
high-growth sectors of the California economy.
(5) Active engagement by business and industry in pathway design
and implementation, work-based learning, assessment of student work,
and other aspects of effective preparation for success in further
postsecondary education and careers.
(6) Workplace learning and educational opportunities that prepare
pupils for careers in high-skilled, high-growth, and emerging
employment sectors, including, but not limited to, biotechnology
research and development, engineering and construction, advanced
manufacturing, health sciences and nursing, environmental sciences,
and agricultural technology.
(7) Programs that provide employment services and support to
individuals with exceptional needs, including autistic individuals.
(e) "Career Pathways Investment Trust Fund" means a fund
established in each local educational agency or community college
district for the purpose of financing program and administrative
costs relating to the operation of career pathways programs.
(f) "Career Pathways State Revolving Fund" means a fund
established in the State Treasury for the purpose of providing state
financial assistance to local educational agencies, community college
districts, and business entities that have entered into agreements
to implement and operate career pathways programs. State financial
assistance may include grants, loans, and the repayment of
Workforce Development Bonds grants and
pay-for-performance contracts .
(g) "Committee" means the California Career Pathways State
Investment Committee.
(h) "Qualified expenditures" includes the following:
(1) The costs of work-based learning specialists that convene,
connect, measure, and broker partnerships between local educational
agencies and business entities, including the costs of all of the
following activities:
(A) Matching pupils with work-based learning opportunities,
including school year or summer internships and paid employment
within a career pathway.
(B) Using schoolsite mentors as liaisons between local educational
agencies, business entities, parents, and community partners.
(C) Providing technical assistance to help local educational
entities and business entities design comprehensive career pathways
programs.
(D) Providing technical assistance to help teachers integrate
school-based and work-based learning with academic and career
technical subject matters.
(E) Brokering the involvement of business entities in school-based
and work-based activities.
(F) Assisting pupils in finding appropriate work, continuing
pupils' education or training, and linking pupils to other community
services.
(G) Evaluating outcomes to assess career pathways program success,
particularly in regard to pupil subgroups.
(H) Linking existing youth development activities with employer
and industry strategies to upgrade worker skills.
(1)
(2) Paid jobs or internships for high school pupils or
community college students that are related to course work in a
career pathway pathways program.
(2)
(3) Support and supervision for unpaid internships or
other work-based learning opportunities that give pupils the
opportunity to connect what they are learning in high school or
community college to its application in the real world.
(3)
(4) Teacher or faculty externships.
(4)
(5) Contributions to programs administered by
postsecondary institutions that provide support to middle school,
high school, or community college career pathways programs. This
support may include, but shall not be limited to, teacher training,
curriculum development, and other forms of technical assistance.
(5)
(6) Equipment and instructional materials, including
equipment and software to support technology-based instruction that
provides one or more of the following:
(A) Accelerated learning opportunities.
(B) Identification of skill and knowledge gaps.
(C) Targeted remediation to prepare pupils for college and
careers.
(6)
(7) Employees to provide instruction, in partnership
with credentialed teachers employed by the school district or faculty
employed by the community college, at the schoolsite or community
college campus.
(7)
(8) Contributions to support staff who link career
pathway pathways programs with regional
business entities and assist in the development of the memoranda of
understanding provided in subdivision (h) of Section 64204. The staff
may be employed by local education
educational agencies, community colleges, or regional
intermediary organizations.
(i) "Workforce Development Bond" means a contract between the
California Career Pathways State Investment Committee and an
applicant who agrees to provide capital to fund a career pathways
program jointly operated by the applicant and a school district or
community college district, or a consortium of school districts and
community college districts. The contract shall specify that the
California Career Pathways State Investment Committee shall repay the
bond if performance targets established for the career pathways
program are met. Financial returns to the applicant may vary pursuant
to the measured level of performance. Proceeds from the sale of the
bonds shall be disbursed by the committee to the Career Pathways
Investment Trust Fund for the local educational agency or community
college district, and may be used for career pathways program
operations, development of rigorous and career-relevant curriculum by
the applicant and the school district, community college district,
or consortium of school districts and community college districts,
paid internships, post-high-school financial aid for college,
licensing and credentialing programs, and wage subsidies for
full-time employment for pupils who successfully complete a career
pathways program.
64202. (a) A local educational agency or community college
district may issue lease revenue bonds secured by the lease of any
property of the local educational agency or community college
district pursuant to subdivision (b), or enter into loan or lease
agreements not subject to Section 18 of Article XVI of the California
Constitution with the committee or private entities, to finance the
operation of career pathways programs.
(b) For purposes of the lease revenue bonds authorized in
subdivision (a), and notwithstanding any other law, a local
educational agency or community college district may lease any
property of the local educational agency or community college
district. The local educational agency or community college district
may enter into any other agreements or execute any other documents
necessary or desirable to carry out the purposes of this subdivision.
(c) A local educational agency or community college district may
enter into contracts or agreements with banks, insurers, or other
financial institutions or parties that it determines are necessary or
desirable to improve the security and marketability of, or to manage
interest rates or other risks associated with, the lease revenue
bonds issued pursuant to this section.
64203. (a) A Career Pathways Investment Trust Fund is hereby
established in each local educational agency or
and community college district for the purpose of
financing program and administrative costs relating to the operation
of career pathways programs. The trust fund may accept revenues from
any source, including one-time property tax revenues resulting from
the dissolution of the assets of the former redevelopment agencies,
proceeds from the sale of Workforce Development Bonds,
other tax revenues, grants, loans, and
contributions or employment training funds made available through the
employment training panel or workforce investment boards. The trust
fund shall be administered by each local educational agency or
community college district.
(b) Moneys in a Career Pathways Investment Trust Fund
shall may be used for any of the following
purposes:
(1) Qualified expenditures.
(2) Administrative costs.
(3) Grants, loans, and program costs associated with career
pathways programs.
(1) Career pathways program operations.
(2) Development of rigorous and career-relevant curriculum by the
applicant and the school district, community college district, or
consortium of school districts and community college districts.
(3) Paid internships.
(4) Post-high-school financial aid for college, licensing, and
credentialing programs.
(5) Wage subsidies for full-time employment for pupils who
successfully complete a career pathways program.
64204. (a) The California Career Pathways State Investment
Committee is hereby established in state government.
(b) The committee shall be composed of the following members:
(1) The Chancellor of the California Community Colleges, or his or
her designee, who will serve as the chairperson of the committee.
(2) The Superintendent or his or her designee.
(3) The Chair of the California Workforce Investment Board, or his
or her designee.
(4) One appointee of the Senate Committee on Rules, who shall
represent the business community and will serve a four-year term.
(5) One appointee of the Speaker of the Assembly, who will serve a
four-year term.
(c) The committee is granted the sole authority to allocate to
local educational agencies, community college districts, and
applicants moneys appropriated to the Career Pathways State Revolving
Fund for state financial assistance, including grants,
loans, grants and the repayment
payment of Workforce Development Bonds
issued pay-for-performance contracts entered into
by the committee as part of a career pathways
pay-for-performance pilot project . The committee is also
granted the sole authority to allocate to applicants the Career
Pathways Investment Credits authorized pursuant to Section 64206.
(d) The committee shall establish criteria and guidelines for
evaluating applications for state financial assistance, including
requirements for commitments of financial or other resources by
applicants or a local educational agency, community college district,
or workforce investment board. The committee shall give priority in
allocating state financial assistance to the following:
(1) Proposals that would fund a work-based learning specialist to
convene, connect, measure, and broker efforts to establish or enhance
a locally defined career pathways program that provides connections
between local educational agencies and business entities.
(1)
(2) Local educational agencies and community college
districts that have an unemployment rate higher than the statewide
average unemployment rate for the most recent calendar year, as
determined by the Employment Development Department, or a high school
graduation rate lower than the statewide high school graduation rate
for the most recent calendar year, as determined by the committee
using the California Longitudinal Pupil Achievement Data System.
(2)
(3) Local educational agencies and community college
districts that include in their application a significant amount of
private funding support from their business partners.
(3)
(4) Local educational agencies and community college
districts that include in their application articulated pathways
connecting high school and postsecondary certificate and degree
programs in their region.
(4)
(5) Local educational agencies and community college
districts that are not seeking state financial assistance for
existing activities. However, priority in allocating state financial
assistance shall be given to applicants that seek to expand or
augment existing investments in career pathways programs.
(e) The committee may allocate the proceeds from the sale of
Workforce Development Bonds to applicants that have entered into
memoranda of understanding with a local educational agency or
community college district to fund career pathways programs.
(f)
(e) The committee shall develop performance criteria
for determining the financial returns to private entities
investing in Workforce Development Bonds participating
in a career pathways pay-for-performance pilot project.
The performance-based compensation to be paid to private entities by
educational agency participants for each pay-for-performance contract
shall be specified in the contract . The performance criteria
shall include, but are not limited to, high school pupil and
community college student achievement and opportunity in the
following areas:
(1) High school graduation.
(2) Completion of postsecondary programs that culminate in a
certificate or degree.
(3) Attainment of industry-recognized credentials that are valued
in high-growth, high-need, or emerging economic sectors.
(4) Provision of internships to high school pupils and community
college students.
(5) Provision of paid summer jobs for high school pupils and
community college students.
(6) Provision of externships for high school teachers and
community college faculty.
(7) Provision of scholarships or other financial assistance for
students pursuing postsecondary education or training in a relevant
career pathway.
(8) Offer of paid employment or apprenticeship to high school
pupils or community college students who are participants or
graduates of a career pathways program.
(f) The committee may spend up to ten million dollars
($10,000,000) of the amount appropriated to the California Career
Pathways State Revolving Fund for the career pathways
pay-for-performance pilot project.
(g) The committee may prepare forms, establish procedures, set
priorities, assess, and perform other administrative functions as
necessary.
(h) The Superintendent, the Chancellor of the Community Colleges,
and the California Workforce Investment Board shall enter into a
memorandum of understanding to allocate staff resources to the
committee. The costs to these entities shall be offset by fees
charged to applicants for Career Pathways Tax Credits.
64205. (a) There is hereby created in the State Treasury the
California Career Pathways State Revolving Fund for the purpose of
providing financial assistance to local educational agencies,
community college districts, and business entities that have entered
into agreements to implement and operate career pathways programs.
Within the fund there shall also be established a Career Pathways
Financing Account, a Career Pathways Grant Account, a Career
Pathways Loan Account, and additional accounts and
subaccounts that the committee may establish from time to time.
(b) Moneys in the Career Pathways Financing Account shall be used
to repay Workforce Development Bonds issued by the
committee, pay pay-for-performance contracts entered
into by the committee as part of a career pathways
pay-for-performance pilot project, or other bonds or
financing agreements entered into by the committee.
(c) Moneys in the Career Pathways Grant Account shall be used to
award grants from the committee to local educational agencies and
community college districts.
(d) Moneys in the Career Pathways Loan Account shall be used to
make loans from the committee to local educational agencies and
community college districts.
(e)
(d) Notwithstanding Section 13340 of the Government
Code, all moneys in the Career Pathways State Revolving Fund shall be
continuously appropriated without regard to fiscal year for the
support of the committee and for expenditure for the purposes stated
in this part.
(f)
(e) All expenses incurred in carrying out the purposes
of this part shall be payable solely from funds provided pursuant to
this part, and no liability or obligation shall be imposed upon the
state and none shall be incurred by the committee beyond the extent
to which money shall have been provided pursuant to this part.
64206. For calendar years beginning on or after January 1, 2014,
the committee shall allocate the Career Pathways Investment
Credit career pathways investment credit in an
amount authorized in the Budget Act for that calendar year. For
purposes of this section, the committee shall do all of the
following:
(a) Allocate the career pathways investment credit for up to five
calendar years for each application the committee approves, as long
as the amount allocated does not exceed the amount authorized in the
Budget Act.
(b) (1) Give priority in allocating tax credits to the following:
(A) Applicants that have entered into a contract or memorandum of
understanding with local educational agencies, community colleges, or
workforce investment boards , as specified in subdivision (a)
of Section 64201, in communities that have an unemployment rate
higher than the statewide unemployment rate, as determined by the
United States Census, and a high school graduation rate lower than
the statewide high school graduation rate, as determined by the
committee using the California Longitudinal Pupil Achievement Data
System.
(B) Applicants that
have entered into a contract or memorandum of understanding with
local educational agencies, community colleges, or workforce
investment boards with proportions of private funding
support that exceed the one-to-one match requirement described in
paragraph (1) of subdivision (e) an applicant financial
commitment that exceeds the commitment of public funds .
(C) Applicants that have entered into a contract or memorandum of
understanding with local educational agencies or community colleges
that offer articulated pathways connecting high school and
postsecondary certificate and degree programs in their region.
(D) Applicants that are not seeking tax credits for existing
activities. However, priority shall be given to applicants that seek
to expand or augment existing investments in career pathway
pathways programs.
(2) To the maximum extent practicable, subject to paragraph (1),
give priority in allocating career pathways investment credits to
applicants that seek to expand or augment existing investments in
career pathway pathways programs.
(3) The committee shall not give priority to any applicant by
virtue of the date of submission of its application, except to
allocate credits where two or more applicants have the same rating.
(c) An applicant shall enter into an enforceable contract or
memorandum of understanding with the committee to comply with the
requirements of this part, Sections 17057.6 and 23610.6 of the
Revenue and Taxation Code, any applicable state laws, and any
additional requirements the department deems necessary or appropriate
to serve the purposes of this part. The contract or memorandum of
understanding shall also provide for legal action to obtain specific
performance or monetary damages for breach of contract and shall
require regular programmatic audits.
(d) Adopt criteria rules that
awards award credits to applicants that
demonstrate that either the applicant or the local educational
agency, community college, or workforce investment board
meets with which it has entered into a memorandum of
understanding pursuant to this part performed well in regard to
the following criteria:
(1) The effectiveness of the career pathway
pathways program toward preparing students for productive,
high-wage employment in growing or high-need sectors of the
California economy. Effectiveness criteria shall include:
(A) Pathway completion rates.
(B) High school graduation rates or community college completion
rates, as appropriate.
(C) Percentages of students attaining an industry certification.
(D) Percentages of students transitioning successfully to
postsecondary education or apprenticeship.
(E) Employment and earnings after high school.
(2) The level of the applicant's investment in, oversight of, and
ability to leverage and sustain current career pathways programs and
current career technical education programs.
(e) Develop and provide forms for the purposes
of informing potential applicants of the purposes of this part.
(f) The amount of the credit reserved for a calendar year shall
not exceed 50 percent of the qualified expenditures estimated by the
applicant for the calendar year.
(g) The committee shall report to the Franchise Tax Board, once
each year, the identity of the qualified taxpayers for whom the
career pathways investment credits are allocated each
year.
(h) The committee may, in its discretion, consult with the
Treasurer and the California Tax Credit Allocation Committee
regarding the allocation of tax credits. If a request for
consultation is made, the Treasurer and the California Tax Credit
Allocation Committee shall aid the committee.
(i) Establish audit requirements. The committee may share
information established during an audit with the Franchise Tax Board.
(j) It is the intent of the Legislature, subsequent to the
enactment of the act adding this section, to reduce the statutory cap
on the authorization for the new jobs tax credit enacted by Chapter
17 of the Statutes of 2009, Third Extraordinary Session, from four
hundred million dollars ($400,000,000) to three hundred million
dollars ($300,000,000) and to authorize one hundred million dollars
($100,000,000) for the Career Pathways Investment Credit, effective
January 1, 2014.
SEC. 3. Section 17057.6 is added to the Revenue and Taxation Code,
to read:
17057.6. (a) For each taxable year beginning on or after January
1, 2014, there shall be allowed to a qualified taxpayer as a credit
against the "net tax," as defined in Section 17039, an amount equal
to that allocated to a qualified taxpayer by the California Career
Pathways Investment Committee pursuant to Section 64206 of the
Education Code.
(b) For purposes of this section a "qualified taxpayer" means an
applicant, as defined in Section 64201 of the Education Code, who is
either the sole owner if an individual, partners if the taxpayer is a
partnership, or shareholders if the taxpayer is an "S" corporation,
and who was awarded an allocation of the career pathways investment
credit by the California Career Pathways Investment Committee.
(c) In the case where the credit allowed under this section
exceeds the "net tax," the excess credit may be carried over to
reduce the "net tax" in the following taxable year, and succeeding
taxable years, if necessary, until the credit has been exhausted.
(d) If a qualified taxpayer fails to comply with the requirements
of this section or with Part 38 (commencing with Section 64200) of
Division 4 of Title 2 of the Education Code, the credit shall be
disallowed and assessed and collected under Section 19051 until the
requirements are satisfied.
SEC. 4. Section 23610.6 is added to the Revenue and Taxation Code,
to read:
23610.6. (a) For each taxable year beginning on or after January
1, 2014, there shall be allowed to a qualified taxpayer as a credit
against the "tax," as defined in Section 23036, an amount equal to
that allocated to a qualified taxpayer by the California Career
Pathways Investment Committee pursuant to Section 64206 of the
Education Code.
(b) For purposes of this section a "qualified taxpayer" means an
applicant, as defined in Section 64201 of the Education Code, that is
subject to the taxes imposed by this part.
(c) In the case where the credit allowed under this section
exceeds the "tax," the excess credit may be carried over to reduce
the "tax" in the following taxable year, and succeeding taxable
years, if necessary, until the credit has been exhausted.
(d) If a qualified taxpayer fails to comply with the requirements
of this section or with Part 38 (commencing with Section 64200) of
Division 4 of Title 2 of the Education Code, the credit shall be
disallowed and assessed and collected under Section 19051 until the
requirements are satisfied.
SEC. 5. No reimbursement shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code for costs mandated by the state pursuant to this act.
It is recognized, however, that a local agency or school district
may pursue any remedies to obtain reimbursement available to it under
Part 7 (commencing with Section 17500) and any other provisions of
law.