Amended IN Assembly March 20, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2957Introduced by Assembly Member GallagherFebruary 16, 2018 An act relating to water resources. to add Article 5 (commencing with Section 78056) to Chapter 1 of Part 48 of Division 7 of Title 3 of the Education Code, and to add Section 23605 to the Revenue and Taxation Code, relating to water.LEGISLATIVE COUNSEL'S DIGESTAB 2957, as amended, Gallagher. Safe and reliable water supplies. Water: community colleges: California Institute for Water Innovation and Technology: corporate income taxes: credit: water technology.Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes them to provide instruction at the campuses they operate.This bill would request the board of governors to establish the California Institute for Water Innovation and Technology in order to achieve specified goals, including developing Californias next generation of water professionals and technicians and growing the states economy by creating new opportunities for jobs in water research, management, and technology. The bill would request the board of governors to locate the institute at Butte College or at a satellite campus within the City of Oroville.The Corporation Tax Law allows various credits against the taxes imposed by that law, including allowing a hiring credit for taxpayers within the specified areas.This bill would, for each taxable year beginning on or after January 1, 2019, allow a credit against the taxes imposed by the Corporation Tax Law to qualified taxpayers, as defined, located in a water technology and innovation zone for qualified wages paid during the taxable year, as provided.This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Oroville.The California Constitution declares that the general welfare requires that the water resources of the state be put to beneficial use to the fullest extent of which they are capable, and that the right to the use of water does not extend to the waste or unreasonable use, method of use, or method of diversion of water. This bill would state the intent of the Legislature to enact legislation that would offer incentives to encourage innovation to ensure Californians have access to safe and reliable water supplies.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) Water is the lifeblood of California. Without safe and reliable water, no community or sector of the economy, from agriculture to high tech to manufacturing, can thrive or expand.(2) Growing population, climate change, and the need to protect and grow Californias economy while protecting and restoring our fish and wildlife habitats make it essential for the state to invest in new water conservation, conveyance, treatment, efficiency, and supply technologies to help manage the states water resources as efficiently as possible.(3) California has always faced cyclical water patterns with years of rain followed by years of drought, and due to this cyclical nature, it is important for California to increase water supply reliability.(4) Improvements in technology, infrastructure, and management practices offer the potential for increasing water efficiency in California over time, providing an essential water management tool to meet the need for water for urban, agricultural, and environmental uses.(5) Section 106.3 of the Water Code declares that it is the policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.(6) Section 85021 of the Water Code declares that it is the policy of the state to reduce reliance on the Delta in meeting Californias future water supply needs through improved regional self-reliance that includes investments in advanced water technologies.(7) Thanks to technological advances by water professionals and the dedication of thousands of water industry professionals in the state, California drinking water and treated wastewater meet some of the most stringent water quality standards in the nation.(8) California needs more trained water professionals to ensure smooth operation and maintenance of public water systems.(9) It is in the interest of all Californians to establish training for water professionals and to incentivize new and emerging water technologies.(b) (1) It is the intent of the Legislature in enacting Section 23605 of the Revenue and Taxation Code to provide local governments with opportunities to attract large manufacturing and research facilities to invest in their communities and to encourage water technology industries to locate and invest in those facilities in California.(2) The Water Technology and Innovation Tax Incentive Program is hereby established for the purpose of encouraging investments in water technology and to promote the advancement of water management, efficiency, storage, conveyance, and conservation technology.(3) The Water Technology and Innovation Tax Incentive Programs purpose is also to provide tax incentives to eligible businesses that are located in a water technology and innovation zone and engage in specified activities related to water innovation.SEC. 2. Article 5 (commencing with Section 78056) is added to Chapter 1 of Part 48 of Division 7 of Title 3 of the Education Code, to read: Article 5. California Institute for Water Innovation and Technology78056. (a) The Board of Governors of the California Community Colleges is requested to establish the California Institute for Water Innovation and Technology in order to achieve all of the following goals:(1) Ensure California is a leader in water management and adapts to changing conditions by developing Californias next generation of water professionals and technicians.(2) Grow Californias economy by creating new opportunities for jobs in water research, management, and technology.(3) Utilize public-private partnerships to perform innovative research in water technology.(4) Strengthen Californias position as a global leader in water management by increasing the states water research, development, and design.(b) The board of governors is requested to locate the California Institute for Water Innovation and Technology at Butte College or at a satellite campus within the City of Oroville so that the institute is located in close proximity to Lake Oroville, which is a key part of the State Water Project and Californias water system.SEC. 3. Section 23605 is added to the Revenue and Taxation Code, to read:23605. (a) (1) For each taxable year beginning on or after January 1, 2019, there shall be allowed a credit against the tax, as defined by Section 23036, to a qualified taxpayer who employs a qualified employee in a water technology and innovation zone during the taxable year. The credit shall be equal to the sum of each of the following: (A) Fifty percent of qualified wages in the first year of employment.(B) Forty percent of qualified wages in the second year of employment.(C) Thirty percent of qualified wages in the third year of employment.(D) Twenty percent of qualified wages in the fourth year of employment.(E) Ten percent of qualified wages in the fifth year of employment. (2) The total amount of qualified wages that may be taken into account for purposes of claiming the credit allowed by this section shall not exceed two million dollars ($2,000,000) per taxable year.(b) For purposes of this section:(1) Qualified employee means an individual employed by the qualified taxpayer during the taxable year in the water technology and innovation zone. (2) Qualified taxpayer means a person or entity that is located in a water technology and innovation zone and engages in either of the following:(A) Water resource management research or education.(B) Water efficiency, recycling, conservation, treatment, or supply technology research or manufacturing.(3) Qualified wages means that portion of wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees that does not exceed 150 percent of the minimum wage. (4) Water innovation and technology zone means the City of Oroville.(c) In the case where the credit otherwise allowed under this section exceeds the tax for the taxable year, that portion of the credit that exceeds the tax may be carried over and added to the credit, if any, in the succeeding two taxable years, if necessary, until the credit is exhausted. (d) (1) Any deduction otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which the credit is based shall be reduced by the amount of the credit.(2) Any credit otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which this credit is based shall not be reduced by the amount of this credit.(e) Section 41 does not apply to the credit allowed by this section.SEC. 4. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because the City of Oroville, home of Lake Oroville, is the cornerstone and starting point of the State Water Project, provides drinking water to 25 million people, and is the location of the largest reservoir in the State Water Project system. Additionally, the City of Oroville is a leader in water management, providing clean water straight from the Sierra Nevada mountains at the cheapest rate in the country.SECTION 1.It is the intent of the Legislature to enact legislation that would offer incentives to encourage innovation to ensure Californians have access to safe and reliable water supplies.
Amended IN Assembly March 20, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2957Introduced by Assembly Member GallagherFebruary 16, 2018 An act relating to water resources. to add Article 5 (commencing with Section 78056) to Chapter 1 of Part 48 of Division 7 of Title 3 of the Education Code, and to add Section 23605 to the Revenue and Taxation Code, relating to water.LEGISLATIVE COUNSEL'S DIGESTAB 2957, as amended, Gallagher. Safe and reliable water supplies. Water: community colleges: California Institute for Water Innovation and Technology: corporate income taxes: credit: water technology.Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes them to provide instruction at the campuses they operate.This bill would request the board of governors to establish the California Institute for Water Innovation and Technology in order to achieve specified goals, including developing Californias next generation of water professionals and technicians and growing the states economy by creating new opportunities for jobs in water research, management, and technology. The bill would request the board of governors to locate the institute at Butte College or at a satellite campus within the City of Oroville.The Corporation Tax Law allows various credits against the taxes imposed by that law, including allowing a hiring credit for taxpayers within the specified areas.This bill would, for each taxable year beginning on or after January 1, 2019, allow a credit against the taxes imposed by the Corporation Tax Law to qualified taxpayers, as defined, located in a water technology and innovation zone for qualified wages paid during the taxable year, as provided.This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Oroville.The California Constitution declares that the general welfare requires that the water resources of the state be put to beneficial use to the fullest extent of which they are capable, and that the right to the use of water does not extend to the waste or unreasonable use, method of use, or method of diversion of water. This bill would state the intent of the Legislature to enact legislation that would offer incentives to encourage innovation to ensure Californians have access to safe and reliable water supplies.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Assembly March 20, 2018
Amended IN Assembly March 20, 2018
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 2957
Introduced by Assembly Member GallagherFebruary 16, 2018
Introduced by Assembly Member Gallagher
February 16, 2018
An act relating to water resources. to add Article 5 (commencing with Section 78056) to Chapter 1 of Part 48 of Division 7 of Title 3 of the Education Code, and to add Section 23605 to the Revenue and Taxation Code, relating to water.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2957, as amended, Gallagher. Safe and reliable water supplies. Water: community colleges: California Institute for Water Innovation and Technology: corporate income taxes: credit: water technology.
Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes them to provide instruction at the campuses they operate.This bill would request the board of governors to establish the California Institute for Water Innovation and Technology in order to achieve specified goals, including developing Californias next generation of water professionals and technicians and growing the states economy by creating new opportunities for jobs in water research, management, and technology. The bill would request the board of governors to locate the institute at Butte College or at a satellite campus within the City of Oroville.The Corporation Tax Law allows various credits against the taxes imposed by that law, including allowing a hiring credit for taxpayers within the specified areas.This bill would, for each taxable year beginning on or after January 1, 2019, allow a credit against the taxes imposed by the Corporation Tax Law to qualified taxpayers, as defined, located in a water technology and innovation zone for qualified wages paid during the taxable year, as provided.This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Oroville.The California Constitution declares that the general welfare requires that the water resources of the state be put to beneficial use to the fullest extent of which they are capable, and that the right to the use of water does not extend to the waste or unreasonable use, method of use, or method of diversion of water. This bill would state the intent of the Legislature to enact legislation that would offer incentives to encourage innovation to ensure Californians have access to safe and reliable water supplies.
Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes them to provide instruction at the campuses they operate.
This bill would request the board of governors to establish the California Institute for Water Innovation and Technology in order to achieve specified goals, including developing Californias next generation of water professionals and technicians and growing the states economy by creating new opportunities for jobs in water research, management, and technology. The bill would request the board of governors to locate the institute at Butte College or at a satellite campus within the City of Oroville.
The Corporation Tax Law allows various credits against the taxes imposed by that law, including allowing a hiring credit for taxpayers within the specified areas.
This bill would, for each taxable year beginning on or after January 1, 2019, allow a credit against the taxes imposed by the Corporation Tax Law to qualified taxpayers, as defined, located in a water technology and innovation zone for qualified wages paid during the taxable year, as provided.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Oroville.
The California Constitution declares that the general welfare requires that the water resources of the state be put to beneficial use to the fullest extent of which they are capable, and that the right to the use of water does not extend to the waste or unreasonable use, method of use, or method of diversion of water.
This bill would state the intent of the Legislature to enact legislation that would offer incentives to encourage innovation to ensure Californians have access to safe and reliable water supplies.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) Water is the lifeblood of California. Without safe and reliable water, no community or sector of the economy, from agriculture to high tech to manufacturing, can thrive or expand.(2) Growing population, climate change, and the need to protect and grow Californias economy while protecting and restoring our fish and wildlife habitats make it essential for the state to invest in new water conservation, conveyance, treatment, efficiency, and supply technologies to help manage the states water resources as efficiently as possible.(3) California has always faced cyclical water patterns with years of rain followed by years of drought, and due to this cyclical nature, it is important for California to increase water supply reliability.(4) Improvements in technology, infrastructure, and management practices offer the potential for increasing water efficiency in California over time, providing an essential water management tool to meet the need for water for urban, agricultural, and environmental uses.(5) Section 106.3 of the Water Code declares that it is the policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.(6) Section 85021 of the Water Code declares that it is the policy of the state to reduce reliance on the Delta in meeting Californias future water supply needs through improved regional self-reliance that includes investments in advanced water technologies.(7) Thanks to technological advances by water professionals and the dedication of thousands of water industry professionals in the state, California drinking water and treated wastewater meet some of the most stringent water quality standards in the nation.(8) California needs more trained water professionals to ensure smooth operation and maintenance of public water systems.(9) It is in the interest of all Californians to establish training for water professionals and to incentivize new and emerging water technologies.(b) (1) It is the intent of the Legislature in enacting Section 23605 of the Revenue and Taxation Code to provide local governments with opportunities to attract large manufacturing and research facilities to invest in their communities and to encourage water technology industries to locate and invest in those facilities in California.(2) The Water Technology and Innovation Tax Incentive Program is hereby established for the purpose of encouraging investments in water technology and to promote the advancement of water management, efficiency, storage, conveyance, and conservation technology.(3) The Water Technology and Innovation Tax Incentive Programs purpose is also to provide tax incentives to eligible businesses that are located in a water technology and innovation zone and engage in specified activities related to water innovation.SEC. 2. Article 5 (commencing with Section 78056) is added to Chapter 1 of Part 48 of Division 7 of Title 3 of the Education Code, to read: Article 5. California Institute for Water Innovation and Technology78056. (a) The Board of Governors of the California Community Colleges is requested to establish the California Institute for Water Innovation and Technology in order to achieve all of the following goals:(1) Ensure California is a leader in water management and adapts to changing conditions by developing Californias next generation of water professionals and technicians.(2) Grow Californias economy by creating new opportunities for jobs in water research, management, and technology.(3) Utilize public-private partnerships to perform innovative research in water technology.(4) Strengthen Californias position as a global leader in water management by increasing the states water research, development, and design.(b) The board of governors is requested to locate the California Institute for Water Innovation and Technology at Butte College or at a satellite campus within the City of Oroville so that the institute is located in close proximity to Lake Oroville, which is a key part of the State Water Project and Californias water system.SEC. 3. Section 23605 is added to the Revenue and Taxation Code, to read:23605. (a) (1) For each taxable year beginning on or after January 1, 2019, there shall be allowed a credit against the tax, as defined by Section 23036, to a qualified taxpayer who employs a qualified employee in a water technology and innovation zone during the taxable year. The credit shall be equal to the sum of each of the following: (A) Fifty percent of qualified wages in the first year of employment.(B) Forty percent of qualified wages in the second year of employment.(C) Thirty percent of qualified wages in the third year of employment.(D) Twenty percent of qualified wages in the fourth year of employment.(E) Ten percent of qualified wages in the fifth year of employment. (2) The total amount of qualified wages that may be taken into account for purposes of claiming the credit allowed by this section shall not exceed two million dollars ($2,000,000) per taxable year.(b) For purposes of this section:(1) Qualified employee means an individual employed by the qualified taxpayer during the taxable year in the water technology and innovation zone. (2) Qualified taxpayer means a person or entity that is located in a water technology and innovation zone and engages in either of the following:(A) Water resource management research or education.(B) Water efficiency, recycling, conservation, treatment, or supply technology research or manufacturing.(3) Qualified wages means that portion of wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees that does not exceed 150 percent of the minimum wage. (4) Water innovation and technology zone means the City of Oroville.(c) In the case where the credit otherwise allowed under this section exceeds the tax for the taxable year, that portion of the credit that exceeds the tax may be carried over and added to the credit, if any, in the succeeding two taxable years, if necessary, until the credit is exhausted. (d) (1) Any deduction otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which the credit is based shall be reduced by the amount of the credit.(2) Any credit otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which this credit is based shall not be reduced by the amount of this credit.(e) Section 41 does not apply to the credit allowed by this section.SEC. 4. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because the City of Oroville, home of Lake Oroville, is the cornerstone and starting point of the State Water Project, provides drinking water to 25 million people, and is the location of the largest reservoir in the State Water Project system. Additionally, the City of Oroville is a leader in water management, providing clean water straight from the Sierra Nevada mountains at the cheapest rate in the country.SECTION 1.It is the intent of the Legislature to enact legislation that would offer incentives to encourage innovation to ensure Californians have access to safe and reliable water supplies.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. (a) The Legislature finds and declares all of the following:(1) Water is the lifeblood of California. Without safe and reliable water, no community or sector of the economy, from agriculture to high tech to manufacturing, can thrive or expand.(2) Growing population, climate change, and the need to protect and grow Californias economy while protecting and restoring our fish and wildlife habitats make it essential for the state to invest in new water conservation, conveyance, treatment, efficiency, and supply technologies to help manage the states water resources as efficiently as possible.(3) California has always faced cyclical water patterns with years of rain followed by years of drought, and due to this cyclical nature, it is important for California to increase water supply reliability.(4) Improvements in technology, infrastructure, and management practices offer the potential for increasing water efficiency in California over time, providing an essential water management tool to meet the need for water for urban, agricultural, and environmental uses.(5) Section 106.3 of the Water Code declares that it is the policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.(6) Section 85021 of the Water Code declares that it is the policy of the state to reduce reliance on the Delta in meeting Californias future water supply needs through improved regional self-reliance that includes investments in advanced water technologies.(7) Thanks to technological advances by water professionals and the dedication of thousands of water industry professionals in the state, California drinking water and treated wastewater meet some of the most stringent water quality standards in the nation.(8) California needs more trained water professionals to ensure smooth operation and maintenance of public water systems.(9) It is in the interest of all Californians to establish training for water professionals and to incentivize new and emerging water technologies.(b) (1) It is the intent of the Legislature in enacting Section 23605 of the Revenue and Taxation Code to provide local governments with opportunities to attract large manufacturing and research facilities to invest in their communities and to encourage water technology industries to locate and invest in those facilities in California.(2) The Water Technology and Innovation Tax Incentive Program is hereby established for the purpose of encouraging investments in water technology and to promote the advancement of water management, efficiency, storage, conveyance, and conservation technology.(3) The Water Technology and Innovation Tax Incentive Programs purpose is also to provide tax incentives to eligible businesses that are located in a water technology and innovation zone and engage in specified activities related to water innovation.
SECTION 1. (a) The Legislature finds and declares all of the following:(1) Water is the lifeblood of California. Without safe and reliable water, no community or sector of the economy, from agriculture to high tech to manufacturing, can thrive or expand.(2) Growing population, climate change, and the need to protect and grow Californias economy while protecting and restoring our fish and wildlife habitats make it essential for the state to invest in new water conservation, conveyance, treatment, efficiency, and supply technologies to help manage the states water resources as efficiently as possible.(3) California has always faced cyclical water patterns with years of rain followed by years of drought, and due to this cyclical nature, it is important for California to increase water supply reliability.(4) Improvements in technology, infrastructure, and management practices offer the potential for increasing water efficiency in California over time, providing an essential water management tool to meet the need for water for urban, agricultural, and environmental uses.(5) Section 106.3 of the Water Code declares that it is the policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.(6) Section 85021 of the Water Code declares that it is the policy of the state to reduce reliance on the Delta in meeting Californias future water supply needs through improved regional self-reliance that includes investments in advanced water technologies.(7) Thanks to technological advances by water professionals and the dedication of thousands of water industry professionals in the state, California drinking water and treated wastewater meet some of the most stringent water quality standards in the nation.(8) California needs more trained water professionals to ensure smooth operation and maintenance of public water systems.(9) It is in the interest of all Californians to establish training for water professionals and to incentivize new and emerging water technologies.(b) (1) It is the intent of the Legislature in enacting Section 23605 of the Revenue and Taxation Code to provide local governments with opportunities to attract large manufacturing and research facilities to invest in their communities and to encourage water technology industries to locate and invest in those facilities in California.(2) The Water Technology and Innovation Tax Incentive Program is hereby established for the purpose of encouraging investments in water technology and to promote the advancement of water management, efficiency, storage, conveyance, and conservation technology.(3) The Water Technology and Innovation Tax Incentive Programs purpose is also to provide tax incentives to eligible businesses that are located in a water technology and innovation zone and engage in specified activities related to water innovation.
SECTION 1. (a) The Legislature finds and declares all of the following:
### SECTION 1.
(1) Water is the lifeblood of California. Without safe and reliable water, no community or sector of the economy, from agriculture to high tech to manufacturing, can thrive or expand.
(2) Growing population, climate change, and the need to protect and grow Californias economy while protecting and restoring our fish and wildlife habitats make it essential for the state to invest in new water conservation, conveyance, treatment, efficiency, and supply technologies to help manage the states water resources as efficiently as possible.
(3) California has always faced cyclical water patterns with years of rain followed by years of drought, and due to this cyclical nature, it is important for California to increase water supply reliability.
(4) Improvements in technology, infrastructure, and management practices offer the potential for increasing water efficiency in California over time, providing an essential water management tool to meet the need for water for urban, agricultural, and environmental uses.
(5) Section 106.3 of the Water Code declares that it is the policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes.
(6) Section 85021 of the Water Code declares that it is the policy of the state to reduce reliance on the Delta in meeting Californias future water supply needs through improved regional self-reliance that includes investments in advanced water technologies.
(7) Thanks to technological advances by water professionals and the dedication of thousands of water industry professionals in the state, California drinking water and treated wastewater meet some of the most stringent water quality standards in the nation.
(8) California needs more trained water professionals to ensure smooth operation and maintenance of public water systems.
(9) It is in the interest of all Californians to establish training for water professionals and to incentivize new and emerging water technologies.
(b) (1) It is the intent of the Legislature in enacting Section 23605 of the Revenue and Taxation Code to provide local governments with opportunities to attract large manufacturing and research facilities to invest in their communities and to encourage water technology industries to locate and invest in those facilities in California.
(2) The Water Technology and Innovation Tax Incentive Program is hereby established for the purpose of encouraging investments in water technology and to promote the advancement of water management, efficiency, storage, conveyance, and conservation technology.
(3) The Water Technology and Innovation Tax Incentive Programs purpose is also to provide tax incentives to eligible businesses that are located in a water technology and innovation zone and engage in specified activities related to water innovation.
SEC. 2. Article 5 (commencing with Section 78056) is added to Chapter 1 of Part 48 of Division 7 of Title 3 of the Education Code, to read: Article 5. California Institute for Water Innovation and Technology78056. (a) The Board of Governors of the California Community Colleges is requested to establish the California Institute for Water Innovation and Technology in order to achieve all of the following goals:(1) Ensure California is a leader in water management and adapts to changing conditions by developing Californias next generation of water professionals and technicians.(2) Grow Californias economy by creating new opportunities for jobs in water research, management, and technology.(3) Utilize public-private partnerships to perform innovative research in water technology.(4) Strengthen Californias position as a global leader in water management by increasing the states water research, development, and design.(b) The board of governors is requested to locate the California Institute for Water Innovation and Technology at Butte College or at a satellite campus within the City of Oroville so that the institute is located in close proximity to Lake Oroville, which is a key part of the State Water Project and Californias water system.
SEC. 2. Article 5 (commencing with Section 78056) is added to Chapter 1 of Part 48 of Division 7 of Title 3 of the Education Code, to read:
### SEC. 2.
Article 5. California Institute for Water Innovation and Technology78056. (a) The Board of Governors of the California Community Colleges is requested to establish the California Institute for Water Innovation and Technology in order to achieve all of the following goals:(1) Ensure California is a leader in water management and adapts to changing conditions by developing Californias next generation of water professionals and technicians.(2) Grow Californias economy by creating new opportunities for jobs in water research, management, and technology.(3) Utilize public-private partnerships to perform innovative research in water technology.(4) Strengthen Californias position as a global leader in water management by increasing the states water research, development, and design.(b) The board of governors is requested to locate the California Institute for Water Innovation and Technology at Butte College or at a satellite campus within the City of Oroville so that the institute is located in close proximity to Lake Oroville, which is a key part of the State Water Project and Californias water system.
Article 5. California Institute for Water Innovation and Technology78056. (a) The Board of Governors of the California Community Colleges is requested to establish the California Institute for Water Innovation and Technology in order to achieve all of the following goals:(1) Ensure California is a leader in water management and adapts to changing conditions by developing Californias next generation of water professionals and technicians.(2) Grow Californias economy by creating new opportunities for jobs in water research, management, and technology.(3) Utilize public-private partnerships to perform innovative research in water technology.(4) Strengthen Californias position as a global leader in water management by increasing the states water research, development, and design.(b) The board of governors is requested to locate the California Institute for Water Innovation and Technology at Butte College or at a satellite campus within the City of Oroville so that the institute is located in close proximity to Lake Oroville, which is a key part of the State Water Project and Californias water system.
Article 5. California Institute for Water Innovation and Technology
Article 5. California Institute for Water Innovation and Technology
78056. (a) The Board of Governors of the California Community Colleges is requested to establish the California Institute for Water Innovation and Technology in order to achieve all of the following goals:(1) Ensure California is a leader in water management and adapts to changing conditions by developing Californias next generation of water professionals and technicians.(2) Grow Californias economy by creating new opportunities for jobs in water research, management, and technology.(3) Utilize public-private partnerships to perform innovative research in water technology.(4) Strengthen Californias position as a global leader in water management by increasing the states water research, development, and design.(b) The board of governors is requested to locate the California Institute for Water Innovation and Technology at Butte College or at a satellite campus within the City of Oroville so that the institute is located in close proximity to Lake Oroville, which is a key part of the State Water Project and Californias water system.
78056. (a) The Board of Governors of the California Community Colleges is requested to establish the California Institute for Water Innovation and Technology in order to achieve all of the following goals:
(1) Ensure California is a leader in water management and adapts to changing conditions by developing Californias next generation of water professionals and technicians.
(2) Grow Californias economy by creating new opportunities for jobs in water research, management, and technology.
(3) Utilize public-private partnerships to perform innovative research in water technology.
(4) Strengthen Californias position as a global leader in water management by increasing the states water research, development, and design.
(b) The board of governors is requested to locate the California Institute for Water Innovation and Technology at Butte College or at a satellite campus within the City of Oroville so that the institute is located in close proximity to Lake Oroville, which is a key part of the State Water Project and Californias water system.
SEC. 3. Section 23605 is added to the Revenue and Taxation Code, to read:23605. (a) (1) For each taxable year beginning on or after January 1, 2019, there shall be allowed a credit against the tax, as defined by Section 23036, to a qualified taxpayer who employs a qualified employee in a water technology and innovation zone during the taxable year. The credit shall be equal to the sum of each of the following: (A) Fifty percent of qualified wages in the first year of employment.(B) Forty percent of qualified wages in the second year of employment.(C) Thirty percent of qualified wages in the third year of employment.(D) Twenty percent of qualified wages in the fourth year of employment.(E) Ten percent of qualified wages in the fifth year of employment. (2) The total amount of qualified wages that may be taken into account for purposes of claiming the credit allowed by this section shall not exceed two million dollars ($2,000,000) per taxable year.(b) For purposes of this section:(1) Qualified employee means an individual employed by the qualified taxpayer during the taxable year in the water technology and innovation zone. (2) Qualified taxpayer means a person or entity that is located in a water technology and innovation zone and engages in either of the following:(A) Water resource management research or education.(B) Water efficiency, recycling, conservation, treatment, or supply technology research or manufacturing.(3) Qualified wages means that portion of wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees that does not exceed 150 percent of the minimum wage. (4) Water innovation and technology zone means the City of Oroville.(c) In the case where the credit otherwise allowed under this section exceeds the tax for the taxable year, that portion of the credit that exceeds the tax may be carried over and added to the credit, if any, in the succeeding two taxable years, if necessary, until the credit is exhausted. (d) (1) Any deduction otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which the credit is based shall be reduced by the amount of the credit.(2) Any credit otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which this credit is based shall not be reduced by the amount of this credit.(e) Section 41 does not apply to the credit allowed by this section.
SEC. 3. Section 23605 is added to the Revenue and Taxation Code, to read:
### SEC. 3.
23605. (a) (1) For each taxable year beginning on or after January 1, 2019, there shall be allowed a credit against the tax, as defined by Section 23036, to a qualified taxpayer who employs a qualified employee in a water technology and innovation zone during the taxable year. The credit shall be equal to the sum of each of the following: (A) Fifty percent of qualified wages in the first year of employment.(B) Forty percent of qualified wages in the second year of employment.(C) Thirty percent of qualified wages in the third year of employment.(D) Twenty percent of qualified wages in the fourth year of employment.(E) Ten percent of qualified wages in the fifth year of employment. (2) The total amount of qualified wages that may be taken into account for purposes of claiming the credit allowed by this section shall not exceed two million dollars ($2,000,000) per taxable year.(b) For purposes of this section:(1) Qualified employee means an individual employed by the qualified taxpayer during the taxable year in the water technology and innovation zone. (2) Qualified taxpayer means a person or entity that is located in a water technology and innovation zone and engages in either of the following:(A) Water resource management research or education.(B) Water efficiency, recycling, conservation, treatment, or supply technology research or manufacturing.(3) Qualified wages means that portion of wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees that does not exceed 150 percent of the minimum wage. (4) Water innovation and technology zone means the City of Oroville.(c) In the case where the credit otherwise allowed under this section exceeds the tax for the taxable year, that portion of the credit that exceeds the tax may be carried over and added to the credit, if any, in the succeeding two taxable years, if necessary, until the credit is exhausted. (d) (1) Any deduction otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which the credit is based shall be reduced by the amount of the credit.(2) Any credit otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which this credit is based shall not be reduced by the amount of this credit.(e) Section 41 does not apply to the credit allowed by this section.
23605. (a) (1) For each taxable year beginning on or after January 1, 2019, there shall be allowed a credit against the tax, as defined by Section 23036, to a qualified taxpayer who employs a qualified employee in a water technology and innovation zone during the taxable year. The credit shall be equal to the sum of each of the following: (A) Fifty percent of qualified wages in the first year of employment.(B) Forty percent of qualified wages in the second year of employment.(C) Thirty percent of qualified wages in the third year of employment.(D) Twenty percent of qualified wages in the fourth year of employment.(E) Ten percent of qualified wages in the fifth year of employment. (2) The total amount of qualified wages that may be taken into account for purposes of claiming the credit allowed by this section shall not exceed two million dollars ($2,000,000) per taxable year.(b) For purposes of this section:(1) Qualified employee means an individual employed by the qualified taxpayer during the taxable year in the water technology and innovation zone. (2) Qualified taxpayer means a person or entity that is located in a water technology and innovation zone and engages in either of the following:(A) Water resource management research or education.(B) Water efficiency, recycling, conservation, treatment, or supply technology research or manufacturing.(3) Qualified wages means that portion of wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees that does not exceed 150 percent of the minimum wage. (4) Water innovation and technology zone means the City of Oroville.(c) In the case where the credit otherwise allowed under this section exceeds the tax for the taxable year, that portion of the credit that exceeds the tax may be carried over and added to the credit, if any, in the succeeding two taxable years, if necessary, until the credit is exhausted. (d) (1) Any deduction otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which the credit is based shall be reduced by the amount of the credit.(2) Any credit otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which this credit is based shall not be reduced by the amount of this credit.(e) Section 41 does not apply to the credit allowed by this section.
23605. (a) (1) For each taxable year beginning on or after January 1, 2019, there shall be allowed a credit against the tax, as defined by Section 23036, to a qualified taxpayer who employs a qualified employee in a water technology and innovation zone during the taxable year. The credit shall be equal to the sum of each of the following: (A) Fifty percent of qualified wages in the first year of employment.(B) Forty percent of qualified wages in the second year of employment.(C) Thirty percent of qualified wages in the third year of employment.(D) Twenty percent of qualified wages in the fourth year of employment.(E) Ten percent of qualified wages in the fifth year of employment. (2) The total amount of qualified wages that may be taken into account for purposes of claiming the credit allowed by this section shall not exceed two million dollars ($2,000,000) per taxable year.(b) For purposes of this section:(1) Qualified employee means an individual employed by the qualified taxpayer during the taxable year in the water technology and innovation zone. (2) Qualified taxpayer means a person or entity that is located in a water technology and innovation zone and engages in either of the following:(A) Water resource management research or education.(B) Water efficiency, recycling, conservation, treatment, or supply technology research or manufacturing.(3) Qualified wages means that portion of wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees that does not exceed 150 percent of the minimum wage. (4) Water innovation and technology zone means the City of Oroville.(c) In the case where the credit otherwise allowed under this section exceeds the tax for the taxable year, that portion of the credit that exceeds the tax may be carried over and added to the credit, if any, in the succeeding two taxable years, if necessary, until the credit is exhausted. (d) (1) Any deduction otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which the credit is based shall be reduced by the amount of the credit.(2) Any credit otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which this credit is based shall not be reduced by the amount of this credit.(e) Section 41 does not apply to the credit allowed by this section.
23605. (a) (1) For each taxable year beginning on or after January 1, 2019, there shall be allowed a credit against the tax, as defined by Section 23036, to a qualified taxpayer who employs a qualified employee in a water technology and innovation zone during the taxable year. The credit shall be equal to the sum of each of the following:
(A) Fifty percent of qualified wages in the first year of employment.
(B) Forty percent of qualified wages in the second year of employment.
(C) Thirty percent of qualified wages in the third year of employment.
(D) Twenty percent of qualified wages in the fourth year of employment.
(E) Ten percent of qualified wages in the fifth year of employment.
(2) The total amount of qualified wages that may be taken into account for purposes of claiming the credit allowed by this section shall not exceed two million dollars ($2,000,000) per taxable year.
(b) For purposes of this section:
(1) Qualified employee means an individual employed by the qualified taxpayer during the taxable year in the water technology and innovation zone.
(2) Qualified taxpayer means a person or entity that is located in a water technology and innovation zone and engages in either of the following:
(A) Water resource management research or education.
(B) Water efficiency, recycling, conservation, treatment, or supply technology research or manufacturing.
(3) Qualified wages means that portion of wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees that does not exceed 150 percent of the minimum wage.
(4) Water innovation and technology zone means the City of Oroville.
(c) In the case where the credit otherwise allowed under this section exceeds the tax for the taxable year, that portion of the credit that exceeds the tax may be carried over and added to the credit, if any, in the succeeding two taxable years, if necessary, until the credit is exhausted.
(d) (1) Any deduction otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which the credit is based shall be reduced by the amount of the credit.
(2) Any credit otherwise allowed under this part for the wages paid or incurred by the qualified employer upon which this credit is based shall not be reduced by the amount of this credit.
(e) Section 41 does not apply to the credit allowed by this section.
SEC. 4. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because the City of Oroville, home of Lake Oroville, is the cornerstone and starting point of the State Water Project, provides drinking water to 25 million people, and is the location of the largest reservoir in the State Water Project system. Additionally, the City of Oroville is a leader in water management, providing clean water straight from the Sierra Nevada mountains at the cheapest rate in the country.
SEC. 4. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because the City of Oroville, home of Lake Oroville, is the cornerstone and starting point of the State Water Project, provides drinking water to 25 million people, and is the location of the largest reservoir in the State Water Project system. Additionally, the City of Oroville is a leader in water management, providing clean water straight from the Sierra Nevada mountains at the cheapest rate in the country.
SEC. 4. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because the City of Oroville, home of Lake Oroville, is the cornerstone and starting point of the State Water Project, provides drinking water to 25 million people, and is the location of the largest reservoir in the State Water Project system. Additionally, the City of Oroville is a leader in water management, providing clean water straight from the Sierra Nevada mountains at the cheapest rate in the country.
### SEC. 4.
It is the intent of the Legislature to enact legislation that would offer incentives to encourage innovation to ensure Californians have access to safe and reliable water supplies.