SB 1344

Bill Subjects

Abstract

(1) Existing law establishes a system of higher education in this state, consisting of 4 segments: the University of California, under the administration of the Regents of the University of California; the California State University, under the administration of the Trustees of the California State University; the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges; and independent institutions of higher education. This bill would prohibit a nonresident who applies to either the University of California or the California State University for admission at the freshman or sophomore level from being admitted unless and until the regents or the trustees, as appropriate, determine that there are no resident applicants from specified groups who meet the eligibility requirements for admission to that segment. This provision would become operative on January 1, 2019, only if Senate Constitutional Amendment 16 of the 2017–18 Regular Session is approved by the voters at the statewide general election on November 6, 2018. (2) Existing law establishes a system of elementary and secondary education in this state. This system consists of the public and private schools that provide instruction in kindergarten and in grades 1 to 12, inclusive. This bill would enact the Education Savings Account Act of 2020, which would be administered by an Education Savings Account Trust, to be known as the ESA Trust, that the bill would establish. The bill would entitle every child eligible to be enrolled in kindergarten, or in an elementary or secondary school, in any of grades 1 to 12, inclusive, to an Education Savings Account. The bill would specify that every child enrolled in an eligible school shall be entitled, pursuant to this act, to a credit to his or her account for K–12 and college tuition, as defined, and education-related expenses. The bill would require, commencing with the 2019–20 fiscal year, the Department of Finance to determine, on July 1 of each year, the annual Education Savings Account deposit amount for the upcoming school year. The bill would specify the procedure for calculating that deposit amount. The bill would establish an Education Savings Account Trust Board, to be known as the ESA Trust Board, with specified membership, to administer the ESA Trust. The bill would establish 2 funds, known as the ESA Trust Program Fund and the ESA Trust Administrative Fund, and would continuously appropriate the moneys in the program fund to the ESA Trust Board for purposes of the bill. The bill would establish a procedure for the parents and legal guardians of eligible pupils to apply for the establishment of an Education Savings Account under the bill. The bill would authorize the ESA Trust Board to distribute funds from the Education Savings Accounts of participating pupils to eligible schools as defined, to include a public school as defined, a full-time charter school operating as a nonprofit public benefit corporation as specified, a full-time private school as defined, a private college or university accredited as specified, or a vocational educational or training institution accredited as specified. The bill would specify procedures pursuant to which participating eligible schools would receive funds distributed by the ESA Trust pursuant to the act. These provisions would become operative on January 1, 2019, only if Senate Constitutional Amendment 16 of the 2017–18 Regular Session is approved by the voters at the statewide general election on November 6, 2018. (2) The Personal Income Tax Law imposes taxes upon taxable income and the Corporation Tax Law imposes taxes according to, measured by, or upon net income, as specified. Those laws generally define "gross income" as income from whatever source derived, except as specifically excluded, and provide various exclusions from gross income. This bill would provide an exclusion from gross income under the Personal Income Tax Law for any distribution or earnings under an education savings account participation agreement or any contribution to an education savings account, as provided. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. Existing state law generally conforms, except as specified, to federal law regarding Coverdell general savings accounts and exempts distribution from a Coverdell general savings account if the distribution is made for qualified education expenses, which includes expenses for postsecondary education or elementary and secondary education. Existing federal law defines "school" for these purposes to mean any school which provides elementary education or secondary education, as determined by state law. This bill would allow a credit against the taxes imposed by the Personal Income Tax Law for an amount equal to the contribution made by a taxpayer into a Coverdell education savings account, as specified. The bill would also define "school," for these purposes, to include any eligible school under the Education Savings Account Act of 2020. The bill also would include that additional information required for any bill authorizing a new income tax credit. These provisions would become operative on January 1, 2019, only if Senate Constitutional Amendment 16 of the 2017–18 Regular Session is approved by the voters at the statewide general election on November 6, 2018. (3) This bill would declare that, if any of its provisions is for any reason held to be invalid or unconstitutional, the remaining provisions would not be affected, but would remain in full force and effect, and to this end the provisions of the bill would be severable. The bill would provide that, except as specified, the Attorney General would defend against any action challenging, in whole or in part, the validity of the bill, and would have an unconditional right to intervene in any action to defend the validity of the bill.