BILL ANALYSIS �
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| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2013-2014 Regular Session |
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BILL NO: AB 482 HEARING DATE: July1, 2013
AUTHOR: Atkins URGENCY: Yes
VERSION: June 19, 2013 CONSULTANT: Katharine Moore
DUAL REFERRAL: No FISCAL: Yes
SUBJECT: California Cultural and Historical Endowment.
BACKGROUND AND EXISTING LAW
The California Natural Resources Agency's (agency's) mission is
"to restore, protect and manage the state's natural, historical
and cultural resources for current and future generations using
creative approaches and solutions based on science,
collaboration and respect for all the communities and interests
involved." The agency is responsible for administering numerous
grant programs, including bond-funded grant programs.
Voters approved the California Clean Water, Clean Air, Safe
Neighborhood Parks, and Coastal Protection Act of 2002
(Proposition 40). Ten percent of the general obligation bonds
authorized for sale were dedicated to historical and cultural
resources preservation. The California Cultural and Historical
Endowment (endowment) was established in the California State
Library in 2003 by AB 716 (Firebaugh, c. 1126, Statutes of
2002). Approximately $122 million in Proposition 40 funds were
appropriated to the endowment for distribution via competitive
grants to government entities, nonprofit organizations and
Native American tribes, as specified, for the acquisition,
restoration, preservation and interpretation of historical and
cultural resources. Since 2005, the endowment has funded over
170 capital projects and planning grants across the state. AB
716 also charged the endowment to "establish a program to assist
and enhance the services of California's museums ?" (Education
code (ED) �20090 et seq) and materials available from the
endowment indicate that many museums of the approximately 1,400
in California received funding through the Proposition 40
program.
The ten member endowment board includes the State Librarian (as
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chair), the agency's Secretary, the Director of Finance, three
members appointed by the Governor, two members appointed by the
Senate Rules Committee, and two members appointed by the
Assembly Speaker. The librarian, secretary and director may be
represented by their designees. Additionally, two members each
of the Senate and Assembly may participate in the board's
activities to the extent they do not conflict with their
positions in the legislature.
The California Cultural and Historical Endowment Fund (fund) is
continuously appropriated to the endowment for its lawful
purposes (ED �20060). Additional funding can be received by the
endowment from public and private sources without additional
approval. All moneys received, with the exception of federal
grants, shall be deposited into the fund.
Existing law allows any state agency to apply to the California
Department of Motor Vehicles (DMV) to sponsor a specialized
license plate program. The DMV may issue the new plates if
certain conditions are met. These include that the license plate
publicizes or promotes the agency or its mission, 7,500
applications and fees are received within a 24 month period and
plate revenues are used "exclusively for projects and programs
that promote the state or local agency's official policy,
mission, or work."
PROPOSED LAW
This bill would:
Transfer the endowment to the agency.
Leave endowment board membership the same, but make the
agency's Secretary the chair.
Authorize the endowment to create a new competitive
grant program to support small capital projects in museums,
as specified.
Require that remaining Proposition 40 moneys allocated
to the endowment be made available to the endowment for the
purposes of funding the grant program.
If the endowment creates the new grant program, require
the endowment to apply, on or before October 1, 2013, to
the DMV to create a specialized license plate program whose
revenue would be the sole support of the new grant program.
Proceeds from the plates would be deposited in the fund,
and
Make a minor technical language correction.
ARGUMENTS IN SUPPORT
According to the author, "the [endowment] is winding down its
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grant program administering approximately $122 million for 180
capital projects and planning grants in the state. An
opportunity has arisen for the agency to move from the State
Library system to the [agency], which would result in a cost
savings for both the [endowment] and the State Library. AB 482
has urgency because of the potential $30,000 in annual
administrative savings in moving to the [agency]."
A proposed special interest license plate program, "would
provide ongoing revenues which could be used to develop a
competitive grant program to support small capital projects in
museums, consistent with the original enabling legislation that
created the [endowment]."
"Divisions within the [agency] have experience in overseeing and
managing cultural and historic properties and this move will
allow co-locating the [endowment] with peer agencies that have
similar missions."
ARGUMENTS IN OPPOSITION
The Department of Finance (DOF) opposes AB 482 (April 10, 2013
version) because the bill conflicts with the Budget proposal to
appropriate the remaining Proposition 40 funds for the existing
grant program. Further, DOF projects that an excessive fraction
of these remaining funds would be used for administrative
expenses before the proposed license plate revenues provide
assistance, and believes that other state entities exist with
"similar goals and [that] provide similar services."
COMMENTS
The endowment's appropriate home ? The author argues that the
agency has the existing infrastructure to monitor the
previously-funded Proposition 40 grant projects, has already
assisted the endowment's grant programs and currently manages
numerous cultural and historical resources. In recent years,
the agency has managed and/or continues to manage bonds
authorized by Propositions 12, 40, 50 and 84, and those issued
by the Department of Water Resources. As of June 2013, the
agency and the state entities within its purview manage over 80
grant programs. Additionally, the agency administers some
existing Environmental License Plate-funded programs and
recommends annually how these revenues should be spent. The
State Library actively manages a federal grant program
supporting California libraries in addition to housing the
endowment.
According to materials from the January 30, 2013 endowment board
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meeting, there are approximately 31 projects still active (and
five applicants remain on a wait list) under the endowment's
Proposition 40 program.
Decisions taken at the May 31, 2012 endowment board meeting . At
this meeting, the endowment board voted to use the remaining
$1.4 million in unencumbered Proposition 40 funds to set-up a
new grant program for museums. The board also voted to become
the state sponsor of a special interest license plate to benefit
California's museums. The California Association of Museums
would be the official licensee of the proposed plate (featuring
the cartoon character "Snoopy"). Revenues would be split
60/20/20 for the new grant program, administrative costs and
licensing costs. The endowment will not operate the grants
program if the license plate program does not work out.
Estimated revenues from the special license plate program .
Projections provided by the author suggest that the first 10
years of the proposed license plate program will raise over $5
million for grants, $1.7 million for licensing fees and $1.7
million for the endowment's administration costs after the DMV's
costs are covered. This assumes that roughly 35,000 new or
renewing plates will be in circulation by the tenth year. This
is reasonably consistent with at least some existing programs.
For example, in FY 2011/12, special license plates supporting
Lake Tahoe, Yosemite, and the Arts Council had about 30,000,
45,000 and 59,000 new or renewing plates, respectively. Each
one of those programs is about 20 years old.
The California Association of Museums has set-up a web-site for
those interested in the proposed plate - approximately 9,100
people are on the list as of this week. The California
Association of Museums has committed to marketing the plates.
Notes of caution . Since 2007, when existing law on specialized
license plates went into effect, two license plates have
qualified to be issued. Additionally, an April 2013 state
auditor's report on the special license plate program identified
several deficiencies and weaknesses in the management of the
program at the DMV and selected state entities, including the
agency.
Related legislation
AB 49 (Buchanan, 2013) would provide for a breast cancer
awareness license plate program (currently in Senate Rules
Committee)
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AB 1096 (Nestande, 2013) would provide for a Salton Sea
specialized license plate program (currently in Senate Rules
Committee)
AB 1658 (Gatto, c. 720, Statutes of 2012) requires the DMV to
produce "replica" license plates upon receiving 7,500 paid
applications.
AB 1539 (Hayashi, 2012) would have required the DMV working with
the State Department of Education to develop an antibullying
license plate program (held in Assembly Transportation
Committee).
AB 610 (Solorio, c. 9, Statutes of 2012) provides an additional
12 months for the "Pet Lover's" license plate to reach 7,500
paid applications.
AB 1815 (Emerson, 2010) would have provided for the
establishment of a NASCAR license plate to benefit the Bureau of
Automotive Repairs (held in Senate Transportation and Housing
Committee)
SUPPORT
Autry National Center of the American West
Balboa Art Conservation Center
Bay Area Discovery Museum
Bay Area Electric Railroad Museum/Western Railway Museum
Blackhawk Museum
Cal Humanities
California Association of Museums
California Indian Museum & Cultural Center
Child Creativity Lab
Children's Discovery Museum of San Jose
Children's Museum of Stockton
Conference of California Historical Societies
Descanso Gardens
East Bay Zoological Society (Oakland Zoo)
Escondido History Center
Exhibit Envoy
Greater Los Angeles Zoo Association
The Haggin Museum
William S Hart Museum
Japanese American Museum of San Jose
Kidspace Children's Museum
Milliken Museum Society
Monterey County Agricultural & Rural Life Museum
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The National Ag Science Center
Oakland Museum of California
Rancho Camulos Museum
San Jose Museum of Art
Santa Barbara Museum of Art
Santa Barbara Zoo
Santa Cruz Museum of Art and History
Santa Cruz Museum of Natural History
Santa Monica Museum of Art
Stagecoach Inn Museum
Triton Museum of Art
Vacaville Museum
Valley Center Historical Society
Several individuals
OPPOSITION
Department of Finance
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