BILL NUMBER: AB 2728	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 3, 2008

INTRODUCED BY   Assembly Member Karnette

                        FEBRUARY 22, 2008

    An act to amend Section 8752 of the Government Code,
relating to the Arts Council.   An act to add Section
7101.2 to the Revenue and Taxation Code, relating to the Arts
Council. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2728, as amended, Karnette. Arts  Council. 
 Council: funding.  
   Existing law establishes in state government an Arts Council with
specified members and duties related to promoting art and requires
the council to meet no more than 8 times each calendar year, with
each meeting preceded by at least 8 days public notice. 

   This bill would make a technical, nonsubstantive change to these
provisions.  
   The Sales and Use Tax Law imposes a tax on gross receipts from the
sale in this state of, or the storage, use, or other consumption in
this state of, tangible personal property, and generally requires
that all revenues derived from that tax be deposited in the State
Treasury to the credit of the Retail Sales Tax Fund. Existing law
establishes in state government the California Arts Council and
imposes various duties on the council to foster arts development and
to award grants and prizes to individuals and organizations in the
arts, as provided.  
   This bill would require that 20% of all revenues derived from the
payment of the tax imposed, as provided, in connection with the sale,
or the storage, use, or other consumption, of a work of art, as
defined, and remitted to the State Board of Equalization by the
taxpayers engaged in specified lines of business be allocated, upon
appropriation by the Legislature, to the California Arts Council to
be used exclusively for specified purposes, as provided. 
   This bill would provide that it will become operative only if the
General Fund has achieved ongoing structural balance on or before
July 1, 2015, as specified.
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 7101.2 is added to the 
 Revenue and Taxation Code   , to read:  
   7101.2.  (a) Notwithstanding Section 7101, 20 percent of all
revenues, less refunds, derived from the taxes imposed pursuant to
Sections 6051 and 6201 and remitted to the board by the taxpayers
identified in the board's records as engaged in those lines of
business described in Codes 11 and 15 of the board's business
classification coding system or Codes 45110, 453920, and 453998 of
the North American Industry Classification System, provided that the
board has fully implemented use of the North American Industry
Classification System, shall be deposited in the State Treasury to be
allocated, upon appropriation by the Legislature, to the California
Arts Council to be used exclusively for the purposes specified in
Section 8753 of the Government Code.
   (b) The act adding this section shall become operative only if the
General Fund has achieved ongoing structural balance on or before
July 1, 2015. Ongoing structural balance is achieved only if all
economic recovery bonds are retired and the May Revision of the
Governor's Budget shows revenues exceeding expenditures during both
the prior and current years, excluding proceeds from borrowing. 

  SECTION 1.    Section 8752 of the Government Code
is amended to read:
   8752.  The council shall meet at the call of the chairperson no
more than eight times each calendar year. Unless there are
extraordinary circumstances, all meetings shall be preceded by at
least eight days public notice and shall be held in various places
throughout the state so as to encourage broad and diverse attendance.