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SB-140 Education finance: Learning Communities for School Success Program.(2017-2018)

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Date Published: 03/22/2017 04:00 AM
SB140:v98#DOCUMENT

Amended  IN  Senate  March 21, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill
No. 140

Introduced by Senator Allen

January 13, 2017

An act to amend Sections 17053.88 and 23688 of the Revenue and Taxation Section 33432 of the Education Code, relating to taxation, to take effect immediately, tax levy. education finance.


LEGISLATIVE COUNSEL'S DIGEST


SB 140, as amended, Allen. Income taxes: credits: food bank donations. Education finance: Learning Communities for School Success Program.
Existing law, the Safe Neighborhoods and Schools Act, enacted by Proposition 47, as approved by the voters at the November 4, 2014, statewide general election, among other things, established the Safe Neighborhoods and Schools Fund, a continuously appropriated fund, which is funded by savings that accrue to the state from the implementation of the act. The act provides that, among other purposes, 25% of the funds shall be disbursed to the State Department of Education to administer a grant program to public agencies aimed at improving outcomes for public school pupils by reducing truancy and supporting pupils who are at risk of dropping out of school or are victims of crime.
Existing law establishes the Learning Communities for School Success Program for the purpose of implementing that grant program, subject to an appropriation to the Safe Neighborhoods and Schools Fund in the annual Budget Act or another statute for the purposes of the program. Existing law sets forth criteria to guide the department in awarding grants under the program, including criteria giving priority to local educational agencies with high rates of chronic absenteeism, out-of-school suspensions, or school dropouts, located in communities with high crime rates, or that have significant representation of foster youth among their pupil enrollment.
This bill would add designation as a Promise Neighborhood pursuant to a specified federal statute to the criteria that would give priority to local educational agencies seeking funds under the Learning Communities for School Success Program.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2012, and before January 1, 2017, a credit for qualified taxpayers, defined as the person responsible for planting a crop, managing the crop, and harvesting the crop from the land, in an amount equal to 10% of the cost that would otherwise be included in, or required to be included in, inventory costs, as specified under federal law, with respect to the donation of fresh fruits or fresh vegetables to a food bank located in California.

This bill would extend the operation of those credits to taxable years beginning before January 1, 2024. The bill would also make other conforming and nonsubstantive changes.

This bill would take effect immediately as a tax levy.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 33432 of the Education Code, as added by Section 2 of Chapter 397 of the Statutes of 2016, is amended to read:

33432.
 (a) A local educational agency that receives a grant shall use the grant funds for planning, implementation, and evaluation of activities in support of evidence-based, nonpunitive programs and practices to keep the state’s most vulnerable pupils in school. These activities shall complement or enhance the actions and services identified to meet the local educational agency’s goals as identified in its local control and accountability plan pursuant to Section 47606.5, 52060, or 52066, as applicable. These activities may include, but are not limited to, all of the following:
(1) Establishing a community school, as defined in Section 33435.
(2) Implementing activities or programs to improve attendance and reduce chronic absenteeism, including, but not limited to, early warning systems or early intervention programs.
(3) Implementing restorative practices, restorative justice models, or other programs to improve retention rates, reduce suspensions and other school removals, and reduce the referral of pupils to law enforcement agencies.
(4) Implementing activities that advance social-emotional learning, positive behavior interventions and supports, culturally responsive practices, and trauma-informed strategies.
(5) Establishing partnerships with community-based organizations or other relevant entities to support the implementation of evidence-based, nonpunitive approaches to further the goals of the program.
(6) Adding or increasing staff within a local educational agency whose primary purpose is to address ongoing chronic attendance problems, including, but not necessarily limited to, conducting outreach to families and children currently, or at risk of becoming, chronically truant.
(b) In selecting grant recipients pursuant to this article, the department shall give priority to a local educational agency that meets any of the following criteria:
(1) (A) Has a high rate of chronic absenteeism, out-of-school suspension, or school dropout for the general pupil population or for a numerically significant pupil subgroup, as identified in a local control and accountability plan pursuant to paragraphs (2) and (3) of subdivision (a) of Section 52052.
(B) For purposes of this paragraph, “high rate” means a rate that exceeds the state average.
(2) Is located in a community with a high crime rate.
(3) Has a significant representation of foster youth among its pupil enrollment.
(4) Is a Promise Neighborhood as designated by Section 7274 of Title 20 of the United States Code, as that section existed on March 1, 2017.
(c) A local educational agency that receives a grant shall provide a local contribution of matching expenditures equal to at least 20 percent of the total grant award. This local contribution can be from cash expenditures or in-kind contributions. A local educational agency is encouraged to exceed the 20-percent match requirement to enable the local educational agency to sustain the activities or programs established under this article beyond the three-year grant period.
(d) A local educational agency that receives a grant shall use the grant funds to increase or improve services that the local educational agency currently provides for purposes specified in this article.
(e) A local educational agency shall not use grant funds to pay for law enforcement activities, including personnel or equipment.

SEC. 2.

 Section 33432 of the Education Code, as added by Section 2 of Chapter 533 of the Statutes of 2016, is amended to read:

33432.
 (a) A local educational agency that receives a grant shall use the grant funds for planning, implementation, and evaluation of activities in support of evidence-based, nonpunitive programs and practices to keep the state’s most vulnerable pupils in school. These activities shall complement or enhance the actions and services identified to meet the local educational agency’s goals as identified in its local control and accountability plan pursuant to Section 47606.5, 52060, or 52066, as applicable. These activities may include, but are not limited to, all of the following:
(1) Establishing a community school, as defined in Section 33435.
(2) Implementing activities or programs to improve attendance and reduce chronic absenteeism, including, but not limited to, early warning systems or early intervention programs.
(3) Implementing restorative practices, restorative justice models, or other programs to improve retention rates, reduce suspensions and other school removals, and reduce the referral of pupils to law enforcement agencies.
(4) Implementing activities that advance social-emotional learning, positive behavior interventions and supports, culturally responsive practices, and trauma-informed strategies.
(5) Establishing partnerships with community-based organizations or other relevant entities to support the implementation of evidence-based, nonpunitive approaches to further the goals of the program.
(6) Adding or increasing staff within a local educational agency whose primary purpose is to address ongoing chronic attendance problems, including, but not necessarily limited to, conducting outreach to families and children currently, or at risk of becoming, chronically truant.
(b) In selecting grant recipients pursuant to this article, the department shall give priority to a local educational agency that meets any of the following criteria:
(1) (A) Has a high rate of chronic absenteeism, out-of-school suspension, or school dropout for the general pupil population or for a numerically significant pupil subgroup, as identified in a local control and accountability plan pursuant to paragraphs (2) and (3) of subdivision (a) of Section 52052.
(B) For purposes of this paragraph, “high rate” means a rate that exceeds the state average.
(2) Is located in a community with a high crime rate.
(3) Has a significant representation of foster youth among its pupil enrollment.
(4) Is a Promise Neighborhood as designated by Section 7274 of Title 20 of the United States Code, as that section existed on March 1, 2017.
(c) A local educational agency that receives a grant shall provide a local contribution of matching expenditures equal to at least 20 percent of the total grant award. This local contribution can be from cash expenditures or in-kind contributions. A local educational agency is encouraged to exceed the 20-percent match requirement to enable the local educational agency to sustain the activities or programs established under this article beyond the three-year grant period.
(d) A local educational agency that receives a grant shall use the grant funds to increase or improve services that the local educational agency currently provides for purposes specified in this article.
(e) A local educational agency shall not use grant funds to pay for law enforcement activities, including personnel or equipment.

SECTION 1.Section 17053.88 of the Revenue and Taxation Code is amended to read:
17053.88.

(a)In the case of a qualified taxpayer who donates fresh fruits or fresh vegetables to a food bank located in California under Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code, for taxable years beginning on or after January 1, 2012, and before January 1, 2024, there shall be allowed, without regard to the taxpayer’s method of accounting, as a credit against the “net tax” (as defined by Section 17039), an amount equal to 10 percent of the cost that would otherwise be included in inventory costs under Section 263A of the Internal Revenue Code, or that would be required to be included in inventory costs under Section 263A of the Internal Revenue Code, but for the exception for farming businesses contained in Section 263A(d) of the Internal Revenue Code, with respect to those fresh fruits or fresh vegetables.

(b)For purposes of this section, “qualified taxpayer” means the person responsible for planting a crop, managing the crop, and harvesting the crop from land.

(c)If the credit allowed by this section is claimed by the qualified taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the qualified taxpayer that is eligible for the credit shall be reduced by the amount of the credit provided in subdivision (a).

(d)The donor shall provide to the nonprofit organization the estimated value of the donated fresh fruits or fresh vegetables and information regarding the origin of where the donated fruits or vegetables were grown, and upon receipt of the donated fresh fruits or fresh vegetables, the nonprofit organization shall provide a certificate to the donor. The certificate shall contain a statement signed and dated by a person authorized by that organization that the product is donated under Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code. The certificate shall also contain the type and quantity of product donated, the name of donor or donors, the name and address of the donee nonprofit organization, and, as provided by the donor, the estimated value of the donated fresh fruits or fresh vegetables and its origins. Upon the request of the Franchise Tax Board, the qualified taxpayer shall provide a copy of the certification to the Franchise Tax Board.

(e)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 for the six succeeding years if necessary, until the credit has been exhausted.

(f)Using the information available to the Franchise Tax Board from the certificates required under subdivision (d) and subdivision (d) of Section 23688, the Franchise Tax Board shall report to the Legislature on or before December 1, 2014, and each December 1 thereafter until the inoperative date specified in subdivision (g), regarding the utilization of the credit authorized by this section and Section 23688. The Franchise Tax Board shall also include in the report the estimated value of the fresh fruits and fresh vegetables donated, the county in which the products originated, and the month the donation was made.

(g)(1)A report required to be submitted pursuant to subdivision (f) shall be submitted in compliance with Section 9795 of the Government Code.

(2)The requirement for submitting a report imposed under subdivision (f) is inoperative on January 1, 2023, pursuant to Section 10231.5 of the Government Code.

(h)This section shall be repealed on December 1, 2024.

SEC. 2.Section 23688 of the Revenue and Taxation Code is amended to read:
23688.

(a)In the case of a qualified taxpayer who donates fresh fruits or fresh vegetables to a food bank located in California under Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code, for taxable years beginning on or after January 1, 2012, and before January 1, 2024, there shall be allowed, without regard to the taxpayer’s method of accounting, as a credit against the “tax” (as defined by Section 23036), an amount equal to 10 percent of the cost that would otherwise be included in inventory costs under Section 263A of the Internal Revenue Code, or that would be required to be included in inventory costs under Section 263A of the Internal Revenue Code, but for the exception for farming businesses contained in Section 263A(d) of the Internal Revenue Code, with respect to those fresh fruits or fresh vegetables.

(b)For purposes of this section, “qualified taxpayer” means the person responsible for planting a crop, managing the crop, and harvesting the crop from land.

(c)If the credit allowed by this section is claimed by the qualified taxpayer, any deduction otherwise allowed under this part for that amount of the cost paid or incurred by the qualified taxpayer that is eligible for the credit shall be reduced by the amount of the credit provided in subdivision (a).

(d)The donor shall provide to the nonprofit organization the estimated value of the donated fresh fruits or fresh vegetables and information regarding the origin of where the donated fruits or vegetables were grown, and upon receipt of the donated fresh fruits or fresh vegetables, the nonprofit organization shall provide a certificate to the donor. The certificate shall contain a statement signed and dated by a person authorized by that organization that the product is donated under Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of the Food and Agricultural Code. The certificate shall also contain the type and quantity of product donated, the name of donor or donors, the name and address of the donee nonprofit organization, and, as provided by the donor, the estimated value of the donated fresh fruits or fresh vegetables and its origins. Upon the request of the Franchise Tax Board, the qualified taxpayer shall provide a copy of the certification to the Franchise Tax Board.

(e)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 for the six succeeding years if necessary, until the credit has been exhausted.

(f)This section shall be repealed on December 1, 2024.

SEC. 3.

This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.