BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 580
                                                                  Page  1

          Date of Hearing:   April 17, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 580 (Nazarian) - As Amended:  March 19, 2013 

          Policy Committee:                              Arts Vote:4-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill continuously appropriates $75 million (GF) annually to  
          the California Arts Council (CAC) for grants.

           FISCAL EFFECT  

          Annual $75 million GF cost.

           COMMENTS  

           1)Purpose  . According to the author, "This bill will create jobs  
            and boost California's economy by restoring funding to the  
            arts.  Specifically, this bill will allocate $75 million to  
            the CAC, from the GF, to fund art programs that will be  
            enjoyed and taken advantage of by local communities throughout  
            the state. At the proposed estimate of $2.00 per person (which  
            equals approximately $75 million), California would still not  
            rank in the top ten in state funding. "

           2)Background  . The CAC was established in 1975 to increase access  
            to the arts for all Californians.  The Council's budget grew  
            from $1.9 million in 1976-77 to $32.2 million in 2001-02, when  
            1,590 grants were awarded to non-profit arts organizations.   
            In 2003, appropriations to the CAC were cut by 97%, and the GF  
            support from the Legislature has remained essentially flat at  
            $1million over the past decade. Since 2003, California has  
            ranked last or next to last among the states in terms of per  
            capita state funding for the arts. The CAC's total budget for  
            2012-13 is $5.5 million, with the balance of funds coming from  
            specialty license plate revenues ($2.8 million) and federal  
            funds ($1.1 million).









                                                                  AB 580
                                                                  Page  2

           3)Related Legislation  . SB 571 (Price), pending in Senate  
            Government and Finance, allows taxpayers to make voluntary  
            contributions to the California Arts Council Fund on their  
            state personal income tax returns.

           4)Prior Legislation . SB 1076 (Price)/Chapter 319 of 2010,  
            allowed taxpayers to make voluntary contributions to the  
            California Arts Council Fund on their state personal income  
            tax returns. This act expired due to failure of the CAC to  
            reach the statutory threshold of $250,000 in tax donations.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081