BILL ANALYSIS Ó
SB 571
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Date of Hearing: August 21, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 571 (Liu) - As Amended: June 25, 2013
Policy Committee: Revenue and
Taxation Vote: 5-0
Arts, Entertainment, Sports, Tourism, and Internet
Media 7-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill allows taxpayers to contribute their own funds to the
"Keep Arts in Schools Fund" through a designation on the state
personal income tax return. Specifically, this bill:
1)Provides all money in the account, upon appropriation by the
Legislature, will be allocated to the Franchise Tax Board
(FTB) and the State Controller for reimbursement of
administrative costs and to California Arts Council for grants
for arts programs for children in preschool through 12th
grade.
2)Requires that donations meet the amount specified in
legislation which is $250,000 the first year and is adjusted
for inflation in subsequent years.
FISCAL EFFECT
Minor annual General Fund revenue losses of roughly $10,000 from
taxpayers deducting charitable contributions, beginning in the
2014-15 fiscal year.
COMMENTS
1)Purpose . According to the author SB 571 is necessary to allow
California taxpayers an opportunity to voluntarily contribute
funds to a state program that promotes and finances art
education programs in our public schools and communities
throughout the state. Proponents, including AFSCME and the
SB 571
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California Alliance for Arts Education, state the California
Arts Council would administer the resources collected in this
fund to help ensure that every student has access to the
benefits of quality arts education. They strongly support the
mission and commitment of the Arts Council and are working
closely with them to build a broad base of support for arts
education. They argue this legislation is an additional means
of increasing the outreach efforts of the Arts Council.
2)Voluntary Contribution Funds. California taxpayers can make
voluntary contributions to any of 15 funds listed on the state
PIT return. The contributions are in addition to tax
liabilities so they do not directly reduce the amount of state
taxes in that tax year. As charitable contributions, the
taxpayer may deduct the amount of the check-off on the
subsequent year's income tax return, reducing state tax
collections. These voluntary contributions support various
purposes, including cancer research, endangered species
preservation and emergency food assistance. Most have sunset
dates and must meet a minimum annual contribution to remain on
the tax form.
3)The Arts Council. 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.
4)Arts check-off history . SB 1076 (Price), Statutes of 2010,
first authorized the addition of an Arts Council fund to the
personal income tax return. As with the current legislative
proposal, moneys from this check-off were allocated for grants
to individuals and organizations administering arts programs.
The Arts Council fund first appeared on the 2010 PIT return
and last appeared on the 2011 return because the FTB
determined that contributions would fall below the required
$250,000 minimum contribution amount for the 2012 calendar
year. In 2012, the Arts Council Fund received contributions
totaling only $165,647.
5)Related Legislation . There are six bills moving through the
Legislature that add new check offs, extend repeal dates or
repeal the required minimum donation.
SB 571
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6)There is no registered opposition to this bill.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081