BILL ANALYSIS SB 1076 Page 1 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 SB 1076 Page 2 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 SB 1076 Page 3 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