BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1076| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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. CONTINUED SB 1076 Page 2 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 programs. This bill requires that the checkoff meet the minimum contribution requirement of $250,000. Background 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 CONTINUED SB 1076 Page 3 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 Abuse 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 5/17/10) Arts Orange County California Alliance for Arts Education California Arts Advocates California Arts Council California Association of Museums 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 5/17/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED