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AB-81 Schools: employees: income and bank and corporation taxes: credits.(1999-2000)



Current Version: 04/06/99 - Amended Assembly Compare Versions information image


AB81:v97#DOCUMENT

Amended  IN  Assembly  February 04, 1999
Amended  IN  Assembly  April 06, 1999

CALIFORNIA LEGISLATURE— 1999–2000 REGULAR SESSION

Assembly Bill
No. 81

Introduced  by  Assembly Member Cunneen

December 09, 1998

An act to add and repeal Section 24216.6 of the Education Code, and to add and repeal Sections 17052.55, 17052.56, 23655, and 23656 of the Revenue and Taxation Code, relating to schools.


LEGISLATIVE COUNSEL'S DIGEST


AB 81, as amended, Cunneen. Schools: employees: income and bank and corporation taxes: credits.
(1) The State Teachers’ Retirement Law limits the amount of compensation that may be received by a retired member without reduction in retirement allowance.
This bill would provide that until July 1, 2002, the earnings paid to a member who retired for service on or before July 1, 1998, and who is employed by a high school to teach science or mathematics is exempt from those limitations if specified conditions are met.
(2) The Personal Income Tax Law and the Bank and Corporation Tax Law authorize various credits against the taxes imposed by those laws.
This bill would authorize a credit against those taxes for each taxable and income year beginning on or after January 1, 2000, and before January 1, 2004, in an amount equal to 50% of the amount paid or incurred during the taxable or income year for qualified expenses, as defined, in connection with lending qualified employees, as defined, to public high schools, community colleges, or vocational institutions in California for the purpose of teaching math or science.
This bill would also authorize a credit against those taxes for each taxable and income year beginning on or after January 1, 2000, and before January 1, 2004, in an amount equal to 50% of the amount paid or incurred during the taxable or income year for allowing public high school or community college teachers in California to attend an employer-sponsored education class by using an open enrollment space.
(3) The bill would require the Teachers’ Retirement Board and the Franchise Tax Board to submit reports to the Legislature.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 24216.6 is added to the Education Code, to read:

24216.6.
 (a) The earnings paid to a member who retired for service with an effective date on or before July 1, 1998, and who is employed by a school district to provide direct instruction to pupils in grades kindergarten through 12 are exempt from subdivisions (d), (e), and (f) of Section 24214, if all of the following conditions are met:
(1) The member is employed by a high school to teach only science or mathematics.
(2) All members retired for service whose employment with a school district meets the conditions specified in this section are treated as a distinct class of temporary employees within the existing bargaining unit. The rate of pay for service performed by this class of employees shall be the rate established in accordance with subdivision (b) of Section 24214 and agreed to in the collective bargaining agreement between the employer and the exclusive representative for employees of the school district.
(3) The Commission on Teacher Credentialing and the school district submit documentation required by the system to substantiate the eligibility of the employment of a member retired for service for the exemption under this subdivision.
(b) A school district that employs a member retired for service pursuant to this section shall maintain accurate records of the retired member’s earnings and shall report those earnings monthly to the system regardless of the method of payment or the source of funds from which the earnings are paid.
(c) A member who retired for service with an effective date on or before July 1, 1998, and who, between July 1, 1998, and 60 days following the effective date of this section, terminated his or her service retirement allowance and returned to employment that qualifies for the exemption specified in subdivision (a) shall have the right to cancel his or her reinstatement and return to status as a member retired for service as if the service retirement allowance had not been terminated.
(d) This section shall not apply to the earnings paid to a member retired for service for service performed for a county office of education or a community college district.
(e) The board shall submit a report to the Legislature on or before December 31, 2002, regarding the number of retired members who have been employed to teach science or mathematics between July 1, 2000, and July 1, 2002.
(f) This section shall become operative on July 1, 2000, and shall remain in effect only until July 1, 2002, and as of that date is repealed unless a later enacted statute which is enacted before July 1, 2002, deletes or extends that date.

SEC. 2.

 Section 17052.55 is added to the Revenue and Taxation Code, to read:

17052.55.
 (a) For each taxable year beginning on or after January 1, 2000, and before January 1, 2004, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of the amount paid or incurred during the taxable year for qualified expenses in connection with lending a qualified employee to a public school or vocational institution for the purpose of teaching math or science.
(b) For purposes of this section:
(1) “Qualified expenses” means all of the following:
(A) Amounts paid or incurred by the taxpayer with respect to expenses incurred by or on behalf of a taxpayer’s employee in connection with lending a qualified employee to a public school or vocational institution for the purpose of teaching math or science.
(B) Expenses paid or incurred by the taxpayer for the wages of a qualified employee, to the extent those wages are allocable to teaching or preparation time.
(2) “Qualified employee” means an employee whose employment specialty includes math or science.
(3) “Public school” means any high school in this state that is a part of a public school district or any community college in this state that is a part of the California Community College system.
(c) A credit shall be allowed under this section only if the teaching is certified by the public school or vocational institution receiving the teaching services. “Certified” means the issuance to the taxpayer of a service record by the public school or vocational institution, verifying receipt of the teaching services. That service record shall contain the employee’s name, dates of teaching service, number of teaching hours, and a verification signature from an authorized agent or designee of the public school or vocational institution.
(d) The credit allowed by this section shall be limited to expenses paid or incurred in connection with employees located in this state.
(e) No deduction shall be allowed to a taxpayer for that amount of expenses for which a credit is allowed to that taxpayer under this section.
(f) No credit shall be allowed under this section with respect to the lending of a qualified employee to a high school unless that employee has been issued, or is eligible for the issuance of, an eminence credential pursuant to Section 44262 of the Education Code.
(g) 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 years if necessary, until the credit is exhausted.
(h) No credit shall be allowed under this section with respect to the lending of a qualified employee to a high school unless that employee has filled a vacant teaching position for which no certified high school teacher was available as certified by the employing school district.
(i) This section shall remain in effect only until December 1, 2004, and as of that date is repealed.

SEC. 3.

 Section 17052.56 is added to the Revenue and Taxation Code, to read:

17052.56.
 (a) For each taxable year beginning on or after January 1, 2000, and before January 1, 2004, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of the amount paid or incurred during the taxable year, for qualified expenses in connection with allowing a public school teacher to attend an employer-sponsored education class by using an open enrollment space.
(b) For purposes of this section:
(1) “Qualified expenses” means amounts paid or incurred by the taxpayer in connection with allowing a public school teacher to attend an employer-sponsored education class by using an open enrollment space.
(2) “Public school” means any high school in this state that is a part of a public school district or any community college in this state that is a part of the California Community College system.
(c) No deduction shall be allowed to a taxpayer for that amount of expenses for which a credit is allowed to that taxpayer under this section.
(d) 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 years if necessary, until the credit is exhausted.
(e) This section shall remain in effect only until December 1, 2004, and as of that date is repealed.

SEC. 4.

 Section 23655 is added to the Revenue and Taxation Code, to read:

23655.
 (a) For each income year beginning on or after January 1, 2000, and before January 1, 2004, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to 50 percent of the amount paid or incurred during the income year for qualified expenses in connection with lending a qualified employee to a public school or vocational institution for the purpose of teaching math or science.
(b) For purposes of this section:
(1) “Qualified expenses” means all of the following:
(A) Amounts paid or incurred by the taxpayer with respect to expenses incurred by or on behalf of a taxpayer’s employee in connection with lending a qualified employee to a public school or vocational institution for the purpose of teaching math or science.
(B) Expenses paid or incurred by the taxpayer for the wages of a qualified employee, to the extent those wages are allocable to teaching or preparation time.
(2) “Qualified employee” means an employee whose employment specialty includes math or science.
(3) “Public school” means any high school in this state that is a part of a public school district or any community college in this state that is a part of the California Community College system.
(c) A credit shall be allowed under this section only if the teaching is certified by the public school or vocational institution receiving the teaching services. “Certified” means the issuance to the taxpayer of a service record by the public school or vocational institution, verifying receipt of the teaching services. That service record shall contain the employee’s name, dates of teaching service, number of teaching hours, and a verification signature from an authorized agent or designee of the public school or vocational institution.
(d) The credit allowed by this section shall be limited to expenses paid or incurred in connection with employees located in this state.
(e) No deduction shall be allowed to a taxpayer for that amount of expenses for which a credit is allowed to that taxpayer under this section.
(f) No credit shall be allowed under this section with respect to the lending of a qualified employee to a high school unless that employee has been issued, or is eligible for the issuance of, an eminence credential pursuant to Section 44262 of the Education Code.
(g) 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 years if necessary, until the credit is exhausted.
(h) No credit shall be allowed under this section with respect to the lending of a qualified employee to a high school unless that employee has filled a vacant teaching position for which no certified high school teacher was available as certified by the employing school district.
(i) This section shall remain in effect only until December 1, 2004, and as of that date is repealed.

SEC. 5.

 Section 23656 is added to the Revenue and Taxation Code, to read:

23656.
 (a) For each income year beginning on or after January 1, 2000, and before January 1, 2004, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to 50 percent of the amount paid or incurred during the income year, for qualified expenses in connection with allowing a public school teacher to attend an employer-sponsored education class by using an open enrollment space.
(b) For purposes of this section:
(1) “Qualified expenses” means amounts paid or incurred by the taxpayer in connection with allowing a public school teacher to attend an employer-sponsored education class by using an open enrollment space.
(2) “Public school” means any high school in this state that is a part of a public school district or any community college in this state that is a part of the California Community College system.
(c) No deduction shall be allowed to a taxpayer for that amount of expenses for which a credit is allowed to that taxpayer under this section.
(d) 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 years if necessary, until the credit is exhausted.
(e) This section shall remain in effect only until December 1, 2004, and as of that date is repealed.
(f) The Franchise Tax Board shall annually submit a report to the Legislature commencing on or before January 1, 2002, regarding the number and types of credit and the dollar amounts of credits that are claimed under the provisions of this section and Sections 17052.55, 17052.56, and 23655. The reports shall include the number and locations of the schools who receive loaned teachers and who send their teachers to employer sponsored classes to fill open enrollment positions.