SB 150,
as amended, begin deleteHuffend delete begin insertNguyenend insert. begin deleteCertificated school employees: salary deduction for organization dues. end deletebegin insertPersonal Income Tax Law: exclusion: student loan debt forgiveness.end insert
The Personal Income Tax Law provides for various exclusions from gross income, including an exclusion for the amount of student loan indebtedness repaid or canceled pursuant to a specified federal law.
end insertbegin insertThis bill would exclude from gross income the amount of student loan indebtedness discharged on or after January 1, 2015, for an eligible individual who is granted a discharge under specified agreements, as provided.
end insertbegin insertThis bill would take effect immediately as a tax levy.
end insertExisting law requires the governing board of a school district to reduce a certificated school employee’s salary, pursuant to the employee’s authorization, to pay the employee’s dues in a local or statewide professional organization.
end deleteThis bill would make nonsubstantive changes to this provision.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 17144.7 is added to the end insertbegin insertRevenue and
2Taxation Codeend insertbegin insert, to read:end insert
(a) Section 108(f)(1) of the Internal Revenue Code
4is modified to additionally provide that in the case of an individual,
5gross income does not include any amount that, but for this section,
6would be includible in gross income by reason of the discharge,
7in whole or in part, of any student loan if the individual is an
8eligible individual for the taxable year.
9(b) Section 108(f)(2) of the Internal Revenue Code is modified
10to additionally provide that a student loan means a student
11obligation note or other debt evidencing a loan to any individual
12for the purpose of attending a for-profit higher education company
13or for the purpose of consolidating or refinancing a loan used to
14attend a for-profit higher education company, which is either a
15
guaranteed student loan, an educational loan, or a loan eligible
16for consolidation or refinancing under Part B of Title IV of the
17Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1071
18et seq.).
19(c) For purposes of this section, an individual is an eligible
20individual for a taxable year if either of the following apply during
21the taxable year:
22(1) The individual is granted a discharge of any student loan
23pursuant to the discharge agreement.
24(2) The individual is granted a discharge of any student loan
25pursuant to paragraph 23 of the William D. Ford Federal Direct
26Loan Program Borrower’s Rights and Responsibilities Statement
27because of either of the following:
28(A) The individual could not complete a program of study
29because the school closed.
30(B) The individual successfully asserts that the school did
31something wrong or failed to do something that it should have
32done.
33(d) For purposes of this section, “discharge agreement” means
34the agreement between ECMC Group, Inc., Zenith Education
35Group, and the Consumer Financial Protection Bureau concerning
36the purchase of certain assets of Corinthian Colleges, Inc., dated
37February 2, 2015.
P3 1(e) This section shall apply to discharges of indebtedness
2occurring on or after January 1, 2015.
This act provides for a tax levy within the meaning of
4Article IV of the Constitution and shall go into immediate effect.
Section 45060 of the Education Code is amended
6to read:
(a) Except as provided in Section 45061, the governing
8board of each school district, when drawing an order for the salary
9payment due to a certificated employee of the school district, shall
10reduce the order, with or without charge, by the amount
the
11employee has requested in a revocable written authorization for
12the purpose of paying the dues of the employee for membership
13in any local or statewide professional organization or in any other
14professional organization affiliated or otherwise connected with
15a statewide professional organization
that authorizes the statewide
16organization to receive membership dues on its behalf and for the
17purpose of paying his or her pro rata share of the costs incurred
18by the school district in making the deduction. This charge shall
19not exceed the actual cost to the school district of the dues
20deduction.
The revocation of a written authorization shall be in
21writing and shall be effective commencing with the next pay
22period.
23(b) Unless otherwise provided in an agreement negotiated
24pursuant to Chapter 10.7 (commencing with Section 3540) of
25Division 4 of Title 1 of the Government Code, the governing
board
26of a school district, no later than the 10th day of each pay period
27for certificated employees, shall draw its order upon the funds of
28the school district in favor of the organization designated by the
29employee for an amount equal to the total of the dues deductions
30made with respect to that organization for the previous pay period
31and shall transmit the total amount to that organization no later
32than the 15th day of each pay period for certificated employees.
33When timely transmittal of dues payments by a county is necessary
34for a school district to comply with the provisions of this section,
35the county shall act in a timely manner. If the employees of a
36school
district do not authorize the governing board of the school
37district to make a deduction to pay their pro rata share of the costs
38of making deductions for the payment of dues, the governing board
39of the school district shall deduct from the amount transmitted to
P4 1the organization on whose account the dues payments were
2deducted the actual costs of making the deduction.
3(c) The
revocable written authorization shall remain in effect
4until expressly revoked in writing by the employee. Whenever
5there is a change in the amount required for the payment to the
6organization, the employee organization shall provide the employee
7with adequate and necessary data on the change at a time
8sufficiently prior to the effective date of the change to allow the
9employee an opportunity to revoke the written authorization, if
10desired. The employee organization shall provide the public school
11employer with notification of the change at a time sufficiently
12before the effective date of the change to allow the employer an
13opportunity to make the necessary adjustments and with a copy
14of the notification of the change
that has been sent to all concerned
15employees.
16(d) The governing board of a school district shall not require
17the completion of a new deduction authorization when a dues
18change has been effected or at any other time without the express
19approval of the concerned employee organization.
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