BILL NUMBER: SB 150	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 4, 2015
	AMENDED IN SENATE  MAY 14, 2015

INTRODUCED BY   Senators Nguyen and Huff
   (Coauthors: Senators  Bates,  Berryhill,  Fuller,
 Morrell, and Vidak)
    (   Coauthors:   Assembly Members 
 Chávez   and Mathis   ) 

                        JANUARY 29, 2015

   An act to add Section 17144.7 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 150, as amended, Nguyen. Personal Income Tax Law: exclusion:
student loan debt forgiveness.
   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.
   This 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.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 17144.7 is added to the Revenue and Taxation
Code, to read:
   17144.7.  (a) Section 108(f)(1) of the Internal Revenue Code is
modified to additionally provide that in the case of an individual,
gross income does not include any amount that, but for this section,
would be includable in gross income by reason of the discharge, in
whole or in part, of any student loan if the individual is an
eligible individual for the taxable year.
   (b) Section 108(f)(2) of the Internal Revenue Code  , relating
to student loan,  is modified to additionally provide that a
student loan means a student obligation note or other debt evidencing
a loan to any individual for the purpose of attending a for-profit
higher education company or for the purpose of consolidating or
refinancing a loan used to attend a for-profit higher education
company, which is either a guaranteed student loan, an educational
loan, or a loan eligible for consolidation or refinancing under Part
B of Title IV of the Higher Education Act of 1965, as amended (20
U.S.C. Sec. 1071 et seq.).
   (c) For purposes of this section, an individual is an eligible
individual for a taxable year if either of the following apply during
the taxable year:
   (1) The individual is granted a discharge of any student loan
pursuant to the discharge agreement.
   (2) The individual is granted a discharge of any student loan
pursuant to paragraph 23 of the William D. Ford Federal Direct Loan
Program Borrower's Rights and Responsibilities Statement because of
either of the following:
   (A) The individual could not complete a program of study because
the school closed.
   (B) The individual successfully asserts that the school did
something wrong or failed to do something that it should have done.
   (d) For purposes of this section, "discharge agreement" means the
agreement between ECMC Group, Inc., Zenith Education Group, and the
Consumer Financial Protection Bureau concerning the purchase of
certain assets of Corinthian Colleges, Inc., dated February 2, 2015.
   (e) This section shall apply to discharges of indebtedness
occurring on or after January 1, 2015.
  SEC. 2.   This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.