BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1076
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          SENATE THIRD READING
          SB 1076 (Price)
          As Amended  August 2, 2010
          Majority vote.  Fiscal committee. 

           SENATE VOTE :22-7  
           
           REVENUE & TAXATION  8-1         APPROPRIATIONS      16-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Portantino, Beall,        |Ayes:|Fuentes, Conway,          |
          |     |Charles Calderon, Coto,   |     |Bradford,                 |
          |     |Fuentes, Gatto, Harkey,   |     |Charles Calderon, Coto,   |
          |     |Nestande                  |     |Davis,                    |
          |     |                          |     |De Leon, Gatto, Hall,     |
          |     |                          |     |Harkey, Miller, Norby,    |
          |     |                          |     |Skinner, Solorio,         |
          |     |                          |     |Torlakson, Torrico        |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|DeVore                    |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Authorizes the addition of the Arts Council Fund  
          (Fund) checkoff to the personal income tax (PIT) form upon the  
          removal of another voluntary contribution fund (VCF) from the  
          form.  Specifically,  this bill  :   

          1)Establishes the Fund in the State Treasury. 

          2)Provides that all money transferred to the Fund, upon  
            appropriation by the Legislature, shall be allocated as  
            follows:

             a)   To the Franchise Tax Board (FTB) and the State  
               Controller for reimbursement of costs incurred in  
               administering the checkoff; and,

             b)   To the Arts Council, for allocation of grants to  
               individuals or organizations administering arts programs  
               under Government Code Section 8753(o).  

          3)Provides that funds made available to the Arts Council shall  
            not be used for any purpose other than to provide grants as  
            prescribed by this bill.  Specifically, funds shall not be  








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            used for administrative purposes, or for any purpose relating  
            to the Art Council's own operations.  

          4)Provides for the Fund provisions' automatic repeal on either  
            January 1 of the fifth taxable year following the first  
            appearance of the Fund on the PIT return or on January 1 of an  
            earlier year, if FTB estimates that the annual contribution  
            amount will be less than $250,000, or an adjusted amount for  
            subsequent years.

           EXISTING LAW  :

          1)Allows taxpayers to designate on their PIT returns a  
            contribution to any of 15 VCFs.

          2)Provides a specific sunset date for each VCF, except for the  
            California Seniors Special Fund.

          3)Provides that each VCF must meet a minimum annual contribution  
            amount to remain in effect, except for the California Seniors  
            Special Fund, the California Firefighters' Memorial Fund, and  
            the California Peace Officer Memorial Foundation Fund.  

          4)Provides for an Arts Council composed of 11 members.  

           FISCAL EFFECT  :  FTB staff estimates annual revenue losses,  
          beginning in fiscal year 2011-12, of roughly $15,000 resulting  
          from itemized deductions.    

           COMMENTS  :   

          The author states, "SB 1076 would assist the California Arts  
          Council to offset the 80% reduction to its budget over the last  
          8 years (citations omitted), which has resulted in reduced arts  
          education programming and less funding for arts programs in  
          rural and underserved urban areas."  

          Proponents state:  Since 2003, California has ranked last among  
          all the states in per capita investment in the arts - allocating  
          just three cents per person from the General Fund, when the  
          national average is one dollar.  SB 1076 would assist the  
          California Arts Council to offset the 81% reduction to its  
          budget over the last 8 years - cuts which have resulted in  
          reduced arts education programming and less funding for arts  








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          programs in rural and underserved urban areas.  

          Committee Staff Comments:  The Arts Council:  As noted above,  
          state law provides for an Arts Council of 11 members.  The Arts  
          Council is charged with encouraging artistic awareness,  
          promoting the employment of artists, and assisting independent  
          local groups in developing their own art programs.  The Arts  
          Council is also tasked with awarding prizes and direct grants to  
          individuals and organizations.

          Related bills in the current legislative session:

             a)   AB 1088 (Fletcher) authorizes the addition of the  
               California Veterans Homes Fund checkoff to the PIT form  
               upon the removal of another VCF from the form.  AB 1088 is  
               currently pending on the Senate Floor.

             b)   AB 1983 (Torrico) authorizes the addition of the Safely  
               Surrendered Baby Fund checkoff to the PIT form upon the  
               removal of another VCF from the form.  AB 1983 is currently  
               pending on the Senate Floor.

             c)   AB 2017 (Hall) authorizes the addition of the California  
               Youth Leadership Fund checkoff to the PIT form upon the  
               removal of another VCF from the form.  AB 2017 is currently  
               pending on the Senate Floor. 


           Analysis Prepared by  :    M. David Ruff / REV. & TAX. / (916)  
          319-2098 

                                                               FN:  0005660