BILL ANALYSIS                                                                                                                                                                                                    


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                                 THIRD READING

          Bill No:  SB 1076
          Author:   Price (D)
          Amended:  3/22/10
          Vote:     21

           SENATE REVENUE & TAXATION COMMITTEE  :  3-1, 4/14/10
          AYES:  Wolk, Alquist, Padilla
          NOES:  Walters
          NO VOTE RECORDED:  Ashburn
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           SUBJECT  :    Income tax checkoff:  California Arts Council

           SOURCE  :     Author

           DIGEST  :    This bill allows taxpayers to make voluntary  
          contributions to the California Arts Council on their state  
          personal income tax returns.

           ANALYSIS  :    Existing law allows taxpayers to contribute  
          money to one or more of 15 voluntary contribution funds by  
          checking a box on their state income tax return.   
          California law requires contributions made through  
          check-offs to be made from taxpayers' own resources (not  
          from their tax liability, as is possible on federal tax  
          returns).  Checkoff amounts may be claimed as charitable  
          contributions on taxpayers' tax returns during the  
          subsequent year. 



                                                               SB 1076

          Existing law allows the Franchise Tax Board (FTB) to design  
          tax returns to provide for the designation of contributions  
          to specified funds either on the return itself or on a  
          separate schedule that must be attached to the return.

          This bill creates a checkoff designation on the state  
          personal income tax return for taxpayers to voluntarily  
          contribute to the California Arts Council (CAC). 

          This bill Establishes the Arts Council Fund in the State  
          Treasury and allows the CAC to receive the moneys deposited  
          into this Fund and use these moneys only for allocation of  
          grants to individuals or organizations administering arts  

          This bill requires that the checkoff meet the minimum  
          contribution requirement of $250,000.


          The CAC was established in 1975.  The mission of the CAC is  
          to promote the arts in California.  The CAC consists of 11  
          members, nine appointed by the Governor (subject to Senate  
          confirmation) and one each by the President pro Tempore of  
          the Senate and the Speaker of the Assembly. 

          The Governor's Budget proposes $5.7 million for the CAC in  
          2010-1l, approximately five percent less funding than in  
          the current year.  Funding sources consist of about  
          one-third each from the General Fund, the Graphic Design  
          License Plate Account (GDLPA), and federal funds.  While  
          the amount of federal funds budgeted for 2010-11 have  
          decreased over the current year, the General Fund and GDLPA  
          budgeted funding portions for 2010-11 have increased  
          slightly over the current year.  

          The following are the current 15 checkoffs:

           1. Alzheimer's Disease/Related Disorders Fund
           2. California Breast Cancer Research Fund
           3. California Firefighters' Memorial Fund
           4. California Fund for Senior Citizens
           5. California Military Family Relief Fund
           6. California Peace Officer Memorial Foundation Fund



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           7. California Sea Otter Fund
           8. Emergency Food for Families Fund
           9. Rare and Endangered Species Preservation Fund
           10.State Children's Trust for the Prevention of Child  
           11.ALS/Lou Gehrig's Disease Research Fund
           12.California Cancer Center Research Fund
           13.California Ovarian Cancer Research Fund
           14.California Seniors Special Fund
           15.Municipal Shelter Spay and Neuter Fund

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  4/24/10) (per Senate Revenue and  
          Taxation Committee analysis)

          Arts Orange County
          California Alliance for Arts Education
          California Arts Council
          Gay Men's Chorus of Los Angeles
          P.S. ARTS

           ARGUMENTS IN SUPPORT :    According to the author's office,  
          this bill will assist the CAC in offsetting the 80 percent  
          reduction to CAC's budget since 2001-2002.  The reduction  
          in CAC's budget has resulted in reduced arts education  
          programming and less funding for arts programs both in  
          rural and underserved urban areas.  By creating a checkoff  
          designation on the personal income tax return for taxpayers  
          to voluntarily contribute to the CAC, this bill creates a  
          dedicated source of funding for arts programs throughout  
          the state. 

          DLW:mw  5/5/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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