BILL NUMBER: SB 798	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 6, 2014

INTRODUCED BY   Senator De León
    (   Principal coauthor: 
 Senator   Pavley   )


                        FEBRUARY 22, 2013

    An act to add Division 4 (commencing with Section 64300)
to Title 6.7 of the Government Code, and to amend Section 39712 of
the Health and Safety Code, relating to infrastructure finance, and
making an appropriation therefor.   An act to add and
repeal Sections 17053.86 and 23686 of the Revenue and Taxation Code,
relating to student financial aid, and declaring the urgency thereof,
to take effect immediately. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 798, as amended, De León.  California Green
Infrastructure Bank Act.   Income taxes: credits:
contributions to education funds.  
   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, 2014, and before January 1, 2017, would allow a
credit equal to a certain percentage of a contribution to the College
Access Tax Credit Fund, established by this bill, for specified
education purposes, as provided. The bill would specify that the
aggregate amount of credit that may be allocated under both laws
shall not exceed $500,000,000 for each calendar year, as specified,
and would require the California Educational Facilities Authority to
perform certain duties with regard to allocating and certifying the
tax credits allowed under these provisions.  
   This bill would become operative only if SB 174 of the 2013-14
Regular Session is enacted and takes effect on or before January 1,
2015.  
   This bill would declare that it is to take effect immediately as
an urgency statute.  
   The Bergeson-Peace Infrastructure and Economic Development Bank
Act authorizes the California Infrastructure and Economic Development
Bank, governed by a board of directors, to make loans and provide
other assistance to public and private entities for various types of
economic development projects, among other things. The activities of
the bank under these provisions are funded from the California
Infrastructure and Economic Development Bank Fund, which is
continuously appropriated for these purposes.  
   This bill would enact the California Green Infrastructure Bank Act
(act). The bill would establish the California Green Infrastructure
Bank (bank) as a public corporation and would make it responsible for
administering the act. The bill would make the bank under the
direction of an executive director to be appointed by the Governor
subject to Senate confirmation. Under the bill, the bank would be
governed and its corporate power exercised by a board of directors
consisting of 5 members, including 3 members appointed by the
Governor subject to Senate confirmation and the Senate Committee on
Rules and the Speaker of the Assembly would each appoint one member.
 
   In order to facilitate green economic development, the bill would,
among other things, authorize the executive director, subject to
board resolution, to enter into any contract or loan agreement
between the bank or special purpose trust, as defined, and any
subdivision of the state or local government, that provides that the
bank will loan funds to the subdivision or local government and that
the subdivision or local government will repay the principal and pay
the interest and redemption premium, as specified. The bill would
require the bank to establish criteria for the selection of projects
to receive assistance from the bank. The bill would also require the
bank to notify the Governor and specified legislative committees when
the bank makes changes to that criteria. Prior to submitting a
project to the bank for consideration, the bill would require the
subdivision of the state or local government to make specified
findings by resolution.  
   The bill would authorize the board or the executive director, as
delegated by the board, to issue bonds and would also authorize a
special purpose trust, as defined, to issue bonds. The bill would
require the bank to establish fees to be paid by the sponsor or the
participating party, as defined, to reimburse the state for the costs
of administering these provisions. The bill would direct the deposit
of these fees into the California Green Infrastructure Bank Fund,
described below.  
   In addition to the bank, the bill would require the executive
director to manage and conduct the business and affairs of the Green
Infrastructure Bank Fund and the California Green Infrastructure
Trust Fund, subject to the direction of the board. The bill would
establish the California Green Infrastructure Bank Fund and the
California Green Infrastructure Trust Fund, both of which would be
continuously appropriated for purposes of carrying out the provisions
of the act. By establishing these continuously appropriated funds,
the bill would make an appropriation.  
   This bill would require the bank, not later than February 1
annually, to submit to the Governor and the Joint Legislative Budget
Committee a report of its activities for the preceding fiscal year,
that includes, among other things, a specification of bonds sold and
the applicable interest rates and the amount of other public and
private funds leveraged by the bank's assistance. The bill would
require the bank's budget respecting the guarantee trust fund to be
prepared and reviewed not later than February 1 annually and would
require the bank to submit to the Legislature a report of its
activities.  
   The bill would authorize the bank to issue revenue bonds in a
principal amount that the bank is required to determine is necessary
to provide sufficient funds for its purposes, that may include, among
other things, providing funds for the payment of costs of a project,
for the purchase of bonds of a special purpose trust or a sponsor,
or payment of interest on bonds of the bank or a special purpose
trust. The bill would authorize the bank to give final approval for
the issuance of the bonds or of the authorization of a special
purpose trust upon terms it deems necessary or desirable. 

   The California Global Warming Solutions Act of 2006 requires the
State Air Resources Board to adopt regulations to require the
reporting and verification of emissions of greenhouse gases and,
among other things, authorizes the state board to include use of
market-based compliance mechanisms. Existing law requires all moneys,
except for fines and penalties, collected by the state board from
the auction or sale of allowances as part of a market-based
compliance mechanism to be deposited in the Greenhouse Gas Reduction
Fund and to be available upon appropriation by the Legislature.
Existing law requires the Department of Finance, in consultation with
the state board and any other relevant state agency, to develop, as
specified, a 3-year investment plan for the moneys deposited in the
Greenhouse Gas Reduction Fund.  
   Existing law authorizes the allocation of moneys appropriated from
the Greenhouse Gas Reduction Fund for the purpose of reducing
greenhouse gas emissions through, among other things, investments in
programs implemented by local and regional agencies and
collaboratives, and by nonprofit organizations coordinating with
local governments.  
   This bill would specify that these investments include the
California Green Infrastructure Bank. The bill would declare the
intent of the Legislature to enact legislation that would appropriate
a specified amount from the Greenhouse Gas Reduction Fund to be used
for carrying out the act. The bill would make conforming changes in
this regard. 
   Vote:  majority   2/3  . Appropriation:
 yes   no  . Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    Section 17053.86 is added to the 
 Revenue and Taxation Code   , to read:  
   17053.86.  (a) (1) For taxable years beginning on or after January
1, 2014, and before January 1, 2017, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to the following:
   (A) For each taxable year beginning on and after January 1, 2014,
and before January 1, 2015, 60 percent of the amount contributed by
the taxpayer for the 2014 taxable year to the College Access Tax
Credit Fund, as allocated and certified by the California Educational
Facilities Authority.
   (B) For each taxable year beginning on and after January 1, 2015,
and before January 1, 2016, 55 percent of the amount contributed by
the taxpayer for the 2015 taxable year to the College Access Tax
Credit Fund, as allocated and certified by the California Educational
Facilities Authority.
   (C) For each taxable year beginning on and after January 1, 2016,
and before January 1, 2017, 50 percent of the amount contributed by
the taxpayer for the 2016 taxable year to the College Access Tax
Credit Fund, as allocated and certified by the California Educational
Facilities Authority.
   (2) Contributions shall be made only in cash.
   (b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 23686 shall be an
amount equal to the sum of all of the following:
   (A) Five hundred million dollars ($500,000,000) in credits for the
2014 calendar year and each calendar year thereafter.
   (B) The amount of previously unallocated and uncertified credits.
   (2) (A) For purposes of this section, the California Educational
Facilities Authority shall do all of the following:
   (i) On or after January 1, 2014, and before January 1, 2017,
allocate and certify tax credits to taxpayers under this section.
   (ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
   (iii) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
   (B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
   (ii) 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
regulation adopted by the California Educational Facilities Authority
pursuant to clause (i).
   (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 five years if
necessary, until the credit is exhausted.
   (2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
   (d) (1) The College Access Tax Credit Fund is hereby created as a
special fund in the State Treasury. All revenue in this special fund
shall be allocated as follows:
   (A) First to the General Fund in an amount equal to the aggregate
amount of certified credits allowed pursuant to this section and
Section 23686 for the taxable year. Funds allocated to the General
Fund shall be considered General Fund revenues for purposes of
Sections 8 and 8.5 of Article XVI of the California Constitution.
   (B) Second, upon appropriation, as follows:
   (i) To the Franchise Tax Board, the California Educational
Facilities Authority, the Controller, and the Student Aid Commission
for reimbursement of all administrative costs incurred by those
agencies in connection with their duties under this section, Section
23686, and Section 69432.7 of the Education Code.
   (ii) To the Student Aid Commission for purposes of awarding Cal
Grants to students pursuant to Section 69431.7 of the Education Code.

   (2) The tax credit allowed by subdivision (a) of this section and
subdivision (a) of Section 23686 for donations to the College Access
Tax Credit Fund shall be known as the College Access Tax Credit.
   (e) This section shall remain in effect only until December 1,
2017, and as of that date is repealed. 
   SEC. 2.    Section 23686 is added to the  
Revenue and Taxation Code   , to read:  
   23686.  (a) (1) For each taxable year beginning on or after
January 1, 2014, and before January 1, 2017, there shall be allowed
as a credit against the "tax," as defined in Section 23036, an amount
equal to the following:
   (A) For taxable years beginning on and after January 1, 2014, and
before January 1, 2015, 60 percent of the amount contributed by the
taxpayer for the 2014 taxable year to the College Access Tax Credit
Fund, as allocated and certified by the California Educational
Facilities Authority.
   (B) For taxable years beginning on and after January 1, 2015, and
before January 1, 2016, 55 percent of the amount contributed by the
taxpayer for the 2015 taxable year to the College Access Tax Credit
Fund, as allocated and certified by the California Educational
Facilities Authority.
   (C) For taxable years beginning on and after January 1, 2016, and
before January 1, 2017, 50 percent of the amount contributed by the
taxpayer for the 2016 taxable year to the College Access Tax Credit
Fund, as allocated and certified by the California Educational
Facilities Authority.
   (2) Contributions shall be made only in cash.
   (b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 17053.86 shall be an
amount equal to the sum of all of the following:
   (A) Five hundred million dollars ($500,000,000) for the 2014
calendar year and each calendar year thereafter.
   (B) The amount of previously unallocated and uncertified credits.
   (2) (A) For purposes of this section, the California Educational
Facilities Authority shall do all of the following:
   (i) On or after January 1, 2014, and before January 1, 2017,
allocate and certify tax credits to taxpayers under this section.
   (ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
   (iii) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
   (B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
   (ii) 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
regulation adopted by the California Educational Facilities Authority
pursuant to clause (i).
   (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 five years if necessary, until
the credit is exhausted.
   (2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
   (d) This section shall remain in effect only until December 1,
2017, and as of that date is repealed. 
   SEC. 3.    This act shall become operative only if
Senate Bill 174 of the 2013-14 Regular Session is enacted and takes
effect on or before January 1, 2015. 
   SEC. 4.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   As our state economy is recovering, it is important to provide
adequate funding to the Cal Grant B Access Awards beginning in the
2015-16 academic year so that these students can stay enrolled, it is
therefore necessary that this act take effect immediately so that
contributions can be made to the College Access Tax Credit Fund in
2014.  All matter omitted in this version of the bill appears in
the bill as introduced in the Senate, February 22, 2013. (JR11)