BILL NUMBER: AB 2728	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 23, 2008
	AMENDED IN ASSEMBLY  APRIL 3, 2008

INTRODUCED BY   Assembly Member Karnette
    (   Coauthors:   Assembly Members 
 Ma   and Portantino   ) 

                        FEBRUARY 22, 2008

   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: funding.
   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  , on and after a specified date, 
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: 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,  on and after each
July 1 of each fiscal year following the achievement of the ongoing
structural balance described in subdivision (b),  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.