BILL ANALYSIS �
AB 482
Page 1
Date of Hearing: April 9, 2013
ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, TOURISM, AND
INTERNET MEDIA
Ian C. Calderon, Chair
AB 482 (Atkins) - As Introduced: February 19, 2013
AS PROPOSED TO BE AMENDED IN COMMITTEE
SUBJECT : California Cultural and Historic Endowment
SUMMARY : This bill would transfer the California Cultural and
Historical Endowment (CCHE) from the California State Library to
the Natural Resources Agency. It also authorizes the CCHE to
create a small museum competitive grant program as specified,
and would require the CCHE to apply to the California Department
of Motor Vehicles (DMV) for a specialized license plate using
the cartoon character Snoopy, as specified, to fund the grant
program. Specifically, this bill :
1)Establishes in the Natural Resources Agency, the CCHE,
consisting of 10 members, as specified.
2)Provides that the Secretary of the Natural Resources Agency
shall serve as chair of the endowment, or his or her designee.
3)Continues the requirements in current law that the endowment
must undertake a comprehensive survey of the state of cultural
and historical preservation, accessibility, and interpretation
in California, as specified, and; that in conducting the
survey, the endowment shall coordinate with existing state
agencies, including the California Arts Council and the
Secretary of State.
4)Authorizes the endowment to create a competitive grant program
to support small capital projects in museums and establishes
priorities for grantee objectives.
5)Requires that the grants be funded initially from any moneys
deposited in the California Cultural and Historical Endowment
Fund from the California Clean Water, Clean Air, Safe
Neighborhood Parks, and Coastal Protection Fund (Fund) for the
administration of the endowment.
AB 482
Page 2
6)Declares that once funding becomes available from the sale of
Snoopy specialized license plates (which this bill would
authorize) funding for the grant program shall only be made
from the funds collected from the specialized license plate
program.
7)Requires that if the endowment creates the museum grant
program described above, the endowment shall apply, on or
before October 1, 2013, to the DMV for the purpose of creating
a specialized license plate program using the cartoon
character Snoopy.
8)Requires that the additional fees collected from the sale of
the Snoopy specialized license plates shall be deposited in
the Fund.
9)Limits the expenditures of the proceeds from the Snoopy
special license funding the competitive small museum grant
program created under the bill.
10)Requires that in seeking authorization from DMV for the
special Snoopy license plate, the endowment shall comply with
all of the requirements that apply to a state agency that
sponsors a specialized license plate program.
11)Provides that this is an urgency measure.
EXISTING LAW :
1)Establishes the California Cultural and Historical Endowment
within the California State Library, consisting of 10 members
as specified. Require that those appointed be persons with
distinguished achievements in specified fields, representative
of diverse ethnic and other groups, and be geographically
balanced. (Education Code Section 20053 and 20054.)
2)Provides that the endowment may apply for and accept federal
grants, and allows the endowment to receive gifts, donations,
subventions, rents, royalties, and other financial support
from public and private sources. (Education Code Section
20060.)
3)Allows the endowment to award grants and loans on a
competitive basis to public agencies and non-profit
AB 482
Page 3
organizations, including museums. Requires that priority be
given, among others, to projects to preserve, interpret, and
enhance understanding and appreciation of the state's
subsequent cultural, social, and economic evolution. Allows
the endowment to create financial and other incentives to
support specified projects. (Education Code Section 20070.)
4)Requires public agencies requesting a grant to provide a
matching amount of resources which may include resources
obtained from other funding agencies, and may include in-kind
resources. (Education Code Section 20071.)
5)Allows funds to be granted or loaned to a non-profit
organization if the non-profit organization enters into an
agreement with the endowment on such terms and conditions as
the endowment specifies. Specify requirements relating to
non-profits and to grants for real property acquisition.
(Education Code Section 20073.)
6)Requires the endowment, to the extent that funding is
available, to establish a program to assist and enhance the
services of the state's museums and of other groups and
institutions that undertake cultural projects that are rooted
in and reflective of previously underserved communities.
Specify priorities for the program. (Education Code Section
20091.)
7)Creates the California Cultural and Historical Endowment Fund,
and requires the endowment to report annually to the
Legislature on the condition and status of the fund.
(Education Code Section 20062.)
8)Appropriated on a one time basis $128,415,000 from the Clean
Water, Clean Air, Safe Neighborhood Parks, and Coastal
Protection Act (Proposition 40) to the California State
Library for purposes of the endowment, as specified.
9)Allows any state agency to apply to DMV to sponsor a
specialized license plate program. [Vehicle Code Section
5151(b).]
10)Requires DMV to issue specialized license plates for that
program, if the agency complies with all statutory
requirements. [Vehicle Code Section 5156(a)(1).]
AB 482
Page 4
11)Prohibits DMV from establishing a specialized license plate
program for an agency until it has received not less than
7,500 paid applications for that agency's specialized license
plates. [Vehicle Code Section 5156(b).]
12)Requires the agency to collect and hold applications for the
plates. Once the agency has received at least 7,500
applications, it must submit the applications, along with the
necessary fees, to DMV. [Vehicle Code Section 5156(b).]
13)Prohibits advance payment to DMV of its estimated or actual
administrative costs associated with the issuance of a
particular specialized license plate from constituting
compliance with the 7,500 application threshold requirement.
(Vehicle Code Section 5156.)
14)Requires funds accruing to a sponsoring state agency from the
sale of specialized license plates to be expended exclusively
for projects and programs that promote that agency's official
policy, mission or work. [Vehicle Code Section 5157(c).]
15)Allows specialized license plates to feature a distinctive
design, decal, or distinctive message in a two-inch by
three-inch space to the left of the plate's numerical sequence
and a space not larger than 5/8 inch in height below the
numerical series. [Vehicle Code Section 5155(a).]
FISCAL EFFECT : Unknown
COMMENTS :
1)Author and Supporter's Statement of Need for Legislation :
According to the author's office, "The California Cultural and
Historical Endowment (CCHE) is winding down its grant program
that has funded 180 capital projects and planning grants with
approximately $122 million in Proposition 40 bond funds. AB
482 would shift the agency's location from the State Library
to the Resources Agency, with a reduction in administrative
and facility costs. The bill has urgency because of the
potential savings.
"From the beginning, the Resources Agency played an important
role in the implementation of the CCHE program because of its
expertise in dealing with grants involving the California
Environmental Quality Act (CEQA), and overseeing grant
AB 482
Page 5
programs involving public access to historic and cultural
sites. Due to dwindling funding, the CCHE will gradually
reduce its staff over the next few years. Shifting the CCHE
to the Resources Agency will reduce CCHE's administrative and
facility costs plus costs that the State Library has been
absorbing in housing the agency.
"In May 2012 the CCHE Board voted to accept an offer by the
California Association of Museums to sponsor a "Snoopy"
specialty license plate, which would provide an ongoing new
funding source that could allow the agency to develop a
competitive grant program to support small capital projects in
museums, consistent with the original legislation that created
the CCHE."
The California Association of Museums, add the following in
support, "This bill represents an opportunity for the State of
California to leverage residual funds from a voter-approved
bond, help strengthen the state's weakened economy, build the
capacity of museums to serve California's citizens, and lay
the foundation for a successful special license plate program
celebrating and benefiting museums.
"Current funding for CCHE projects is from voter-approved
Proposition 40 bonds from the California Clean Water, Clean
Air, Safe Neighborhood Parks, and Coastal Protection Act of
2002. Approximately $122 million was appropriated to CCHE to
distribute competitively for the acquisition, restoration,
preservation and interpretation of historical and cultural
resources.
"With diminishing operating funds and a reduction in grant
administration duties, moving the CCHE to the Resources Agency
will allow minimal staffing and better leverage remaining
funds to enable a more efficient close-out of the current
program. We endorse this cost-saving measure for CCHE and
support this move taking place immediately."
They conclude by saying, "California is home to a great
variety of museums - from world renowned destinations to small
museums that preserve the unique histories and culture of our
state. CCHE and the California Association of Museums (CAM)
have a sustainable vision to support California museums and
the vital educational and preservation services they provide
without relying on the State's limited resources. The Snoopy
AB 482
Page 6
special license plate is the key to establishing a new and
self-sufficient grant program to support the success of
California museums."
2)Background :
a) California Cultural and Historical Endowment :
The following is excerpted from the California State
Library CCHE webpage:
The CCHE was established in 2002 when then-Governor Gray
Davis signed Assembly Bill 716, introduced by the late
Assemblyman Marco Firebaugh. The CCHE was created to raise
the profile and scope of California's historic and cultural
preservation program in an era of dwindling historic
structures and cultural homogeneity.
Since 2005, the CCHE has funded over 170 capital projects
and planning grants. These projects span 48 different
counties in California. The structures which have been
preserved with CCHE funding help tell the stories and
document the contributions of the many groups of people
that together comprise California's history. The CCHE is
devoted to telling California's history as experienced by
the many diverse peoples of California and is intended to
help strengthen and deepen Californians' understanding of
the state's history, its present society, and themselves.
The Legislature intended the CCHE to enhance California's
cultural heritage preservation program and perhaps
eventually to become a stand-alone entity in state
government without ties to any existing agency or
department, yet subject to the authority of the Governor.
The California State Library currently houses the CCHE.
b) Snoopy License Plate :
Prior to 2007, any new special interest license plate
required specific legislative authorization. This practice
was held to be unconstitutional in that the Legislature
approved some of the plates, and rejected others, using no
standardized or objective criteria for those decisions.
Subsequently, as a result of AB 84 (Leslie), Chapter 91,
Statutes of 2006, an administrative process has been
AB 482
Page 7
established wherein the DMV will issue specialized license
plates when they are sponsored by a state agency, the
plate's message and the revenues it generates support that
agency's program, and at least 7,500 paid applications have
been received. The 7,500-application threshold was
previously put into statute for special interest license
plates and was arrived at in an attempt to assure that
DMV's startup costs would be fully covered by the portion
of the registration fee surcharge that is directed to the
department and to avoid a proliferation of different types
of plates, which can be troublesome from a law enforcement
perspective.
According to information provided by the author, "The
California Association of Museums (CAM) requested the CCHE
serve as the state sponsor for a proposed new specialized
license plate featuring the image of Snoopy. As the state
sponsor, the CCHE would receive a share of the plate
program revenue which it would use to administer a
competitive grant program for the benefit of California
museums.
"Each new specialized license plate costs $50 in addition
to the cost of the regular plate. These standard issue
configuration plates or 'sequential' plates will have the
dancing Snoopy image to the left of the numbers and letters
that comprise a normal license plate.
A 'personalized' or 'vanity' plate will cost an additional
$48 and it is estimated, based on historical data, that 80%
of individuals who buy a specialized plate will also buy a
personalized plate for a total cost of $98 ($50 for the
basic plate + $48 for the personalization). These plate
prices are for new plates only. All renewals drop the cost
by $10 per year for both the basic plate and the
personalized plate."
i) Revenue Projections :
The stream of funding from the specialized Snoopy plates,
net of DMV administrative fees, is expected to be $8.52
million over just the first ten years, including the
Pre-Sale Period when 7,500 plates must be sold. The
revenue is expected to build from a modest start of
$663,000 with 7,500 plates to a high of $2.4 million with
33,000 plates. These projections include calculations
AB 482
Page 8
for personalized license plates which generate a separate
funding stream for the Environmental License Plate (ELP)
Fund, a fund which supports environmental programs.
Historically, 80% of specialized license plate buyers
also buy personalized license plates. Over the first ten
years of the Snoopy plate, the personalized plates are
expected to generate over $7.2 million for the ELP Fund.
This anticipated revenue stream resulting from the Snoopy
plate is what sparked the Natural Resources Agency's
interest to contribute to the CCHE's plate program with
the $30,000 appropriation proposed in the CCHE's 2012-13
BCP.
ii) Revenue Distribution Plan :
The program revenues are proposed to be distributed as
follows:
(1) 60% of the plate revenue will be made
available for a grant program to benefit museums in
California;
(2) 20% of the plate revenue will be made
available for the CCHE to administer the grant
program;
(3) 20% of the plate revenue will be made
available to CAM as the licensing fee for the Snoopy
image.
Revenue projections are estimates, subject to
fluctuation. CCHE and CAM have agreed that, if actual
plate program revenues falls below projected levels, the
funding distribution of 60% Museum Grants: 20% CCHE: 20%
CAM would shift to guarantee the CCHE an operating budget
of $180,000 before CAM receives their share. $180,000 is
an amount considered the minimum annual amount necessary
for the CCHE to administer the grant program. Similarly,
in order to protect the State's interest, CCHE's
obligation to oversee the grant program will be subject
to funding from the plate program materializing and the
CCHE could withdraw its position if funds don't
materialize.
3) Shifting the CCHE From the State Library to Resources
AB 482
Page 9
Agency :
According to information provided by the author, "The CCHE is
winding down its grant program. As the agency oversees the
completion of the last few projects and awards final grants as
funds allow, an opportunity arose to shift its location from
Library Services to the Resources Agency. Indications are
that this move will significantly reduce administrative and
facility savings for the CCHE, plus eliminate costs currently
being absorbed by the State Library." Resources Agency states
that the estimated savings per year would be approximately
$30,000, should the change take place.
The author notes, "The Resources Agency has provided advice
and counsel to the agency since the CCHE was created in 2003.
Now that the CCHE is reducing its staff and experiencing a
shift in day-to-day activities, moving the CCHE to the
Resources Agency will facilitate a smooth transition to its
new role. The cultural and historic expertise housed in the
Natural Resources Agency plus the applicability of mutual
roles and shared goals, makes this a good fit."
This bill maintains the existing members of the Board of
Directors and all current activities, staffing and obligations
of the CCHE. The current Chair of the Board is the State
Librarian. This bill would shift the Chair to the Secretary of
Natural Resources or his/her designee, and add the State
Librarian and his/her designee to the CCHE Board.
4) Urgency :
This bill contains an urgency provision and, if adopted by the
Legislature and signed by the Governor will take effect
immediately. The bill states that an urgency statute is
necessary for the immediate preservation of the public peace,
health, or safety within the meaning of Article IV of the
Constitution and shall go into immediate effect. The facts
constituting the necessity are: In order for the transfer of
the CCHE to the Natural Resources Agency be accomplished in a
timely, effective, and economical manner, it is necessary that
this act take immediate effect.
Amendments:
5) Amendments :
AB 482
Page 10
The attached amendments delete a reference which the bill
makes obsolete and add co-authors.
Prior Related Legislation
a) AB 1658 (Gatto), Chapter 720, Statutes of 2012, required
DMV to produce "replica" license plates upon receiving
7,500 paid applications.
b) AB 1539 (Hayashi), of the 2011-12 Legislative Session,
would have required the DMV, in consultation with the State
Department of Education, to design and make available for
issuance specialized license plates that contain a message
that promotes the policy of the state that prohibits
discrimination, harassment, intimidation, and bullying
based on actual or perceived characteristics and
disability, gender, gender identity, nationality, race or
ethnicity, religion, sexual orientation, or association
with a person or group with one or more of these actual or
perceived characteristics, to be known as the "Antibullying
License Plate Program." Would have required the Department
of Education to transfer sufficient monies to DMV to
initiate the Antibullying License Plate Program. AB 1539
was held in Assembly Transportation Committee.
c) AB 610 (Solorio), Chapter 9, Statutes of 2012, allowed
the Veterinary Medical Board an additional 12 months to
accumulate the required 7,500 applications for the
establishment of a Pet Lover's license plate.
d) AB 1815 (Emmerson) of the 2009-10 Legislative Session,
would have allowed the establishment of a NASCAR plate,
with the proceeds benefitting the Bureau of Automotive
Repair's vehicle repair and retirement program. AB 1815 was
held in Senate Committee on Transportation and Housing
without being heard.
e) AB 716 (Firebaugh), Chapter 1126, Statutes of 2002,
established the CCHE within the California State Library,
described above, which the instant measure seeks to modify.
REGISTERED SUPPORT / OPPOSITION :
Support
AB 482
Page 11
California Association of Museums (sponsor)
Autry National Center
Conference of California Historical Societies
Bay Area Discovery Museum
Escondido History Center
Exhibit Envoy
Santa Monica Museum of Art
Valley Center History Museum
William S. Hart Museum
Opposition
None on file
Analysis Prepared by : Dana Mitchell / A.,E.,S.,T. & I.M. /
(916) 319-3450