BILL ANALYSIS Ó
SB 789
Page 1
SENATE THIRD READING
SB 789 (Liu)
As Amended June 24, 2013
Majority vote
SENATE VOTE :39-0
TRANSPORTATION 15-0 ARTS, ENTERTAINMENT, SPORTS
7-0
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|Ayes:|Lowenthal, Linder, |Ayes:|Ian Calderon, Waldron, |
| |Achadjian, Ammiano, | |Bloom, Brown, Gomez, |
| |Bloom, Bonta, Buchanan, | |Levine, Wilk |
| |Daly, Gordon, Gatto, | | |
| |Holden, Morrell, | | |
| |Nazarian, Patterson, | | |
| |Quirk-Silva | | |
| | | | |
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SUMMARY : Allows the California Arts Council (Council) to use,
for administrative expenses, revenues from the sale of the
special interest license plates.
EXISTING LAW :
1)Establishes the Council as a state agency. Its mission is to
advance California through the arts and creativity by
encouraging artistic awareness, participation, and expression.
2)Authorizes vehicle owners to obtain from the Department of
Motor Vehicles (DMV), license plates that include a full-plate
graphic design approved by DMV in consultation with the
Council, depicting a significant feature or quality of the
State of California. Requires the payment of additional fees
for the issuance, renewal, and transfer of those plates.
Requires funds raised by those fees to be used by the Council,
upon appropriation by the Legislature, for arts education and
local arts programming.
3)Prohibits the Council from using additional revenue for its
administrative costs accruing from an increase in the fees for
the Council's special interest license plates. Requires the
SB 789
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Council to use the revenue derived from these fee increases
exclusively for arts education and local arts programming.
4)Limits to 25% the amount of the revenues from the special
interest license plate fund that an organization may expend on
administrative costs, marketing, or other promotional
activities associated with encouraging application for, or
renewal of, the special license plates.
FISCAL EFFECT : According to the Senate Appropriations
Committee, no new state costs to the Graphic Design License
Plate Fund. This bill would clarify that license plate revenues
derived from a fee increase in 2004 may be used as part of the
Council's overall administrative costs. This would provide
parity for the Council's license plate with other special
interest license plate programs. This bill is keyed non-fiscal
by the Legislative Counsel.
COMMENTS : According to the Council, its mission is to encourage
public participation in the arts; help build strong arts
organizations; assist with the professional development of arts
leaders; promote awareness of the value of the arts; and
directly fund arts programs in California's communities. It
receives about $5.2 million annually in funding with about $1.1
million coming from the state's General Fund, $1.1 million from
federal funds, and $3 million from the special interest license
plates.
Pursuant to AB 3632 (Polanco), Chapter 1282, Statutes of 1992,
the Council's special interest license plate program was created
along with others such as the Yosemite Foundation plate, the
Kids plate, the Veterans Services plate, and the State Heritage
Network plate. Initially, fees for the issuance of the original
plate were set at $20, while annual renewal fees were $10.
These fees were later increased to $30 for issuance and $15 for
renewal. The fee revenues are deposited into the Graphic Design
License Plate Account for support of arts education and local
arts programs administered by the Council. Furthermore, the
special interest license program law allows a sponsoring state
agency to use no more than 25% of license plate fee revenues on
administrative costs, marketing, or other activities associated
with ensuring application for, or renewal of, its special
interest license plates.
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Subsequently, SB 1213 (Scott), Chapter 393, Statutes of 2004,
was enacted that increased the original fees for the Arts Plate
from $30 to $50 for issuance and from $15 to $40 for renewal,
but specifically prohibited the Council from using the revenues
derived from the increase for administrative costs. Of the $3
million the arts special interest plates generates today, about
$2 million results from the SB 1213 fee increases.
This bill repeals the SB 1213's prohibition on the Council's use
of the revenues for administrative purposes , thus allowing the
Council to use the portion of its license plate revenues
attributable to SB 1213's fee increases to cover its
administrative costs. This provides parity for the Council's
license plate program with other special interest license plate
programs that cap administrative costs at 25%.
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093
FN: 0001647