BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 55


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          Date of Hearing:  April 21, 2015


           ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, TOURISM, AND  
                                   INTERNET MEDIA


                             Ian Charles Calderon, Chair


          AB 55  
          (Nazarian) - As Amended March 26, 2015


          SUBJECT:  Arts Council:  grants.


          SUMMARY:  This bill would continuously appropriate from the  
          General Fund to the Arts Council an amount each fiscal year  
          equal to the sum of the amount of revenue generated by the  
          Polanco-Bates License Plates for the Arts Act of 1993 and the  
          amount of private donations received by the council, as  
          specified. Specifically, this bill:  


          1)Continuously appropriates, as specified, from the General Fund  
            to the Arts Council an amount each fiscal year equal to the  
            sum of the following: 



             a)   The amount of revenue generated by the Polanco-Bates  
               License Plates for the Arts Act of 1993 (Section 5074 of  
               the Vehicle Code) in the most recently concluded fiscal  
               year.



             b)   The amount equal to the private donations received by  








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               the Arts Council in the most recently concluded fiscal  
               year.



          2)Declares that this section shall not be construed to prevent  
            the Legislature from appropriating additional funds to the  
            Arts Council.
          EXISTING LAW:  


          1)Establishes the California Arts Council (CAC) Contribution and  
            Donations Fund in the State Treasury to receive funds, as  
            specified.





          2)Provides that the monies in the fund are continuously  
            appropriated to the CAC.



          3)Requires that the California Department of Motor Vehicles,  
            after deducting its administrative costs, shall deposit the  
            additional revenue derived from specialized license plates in  
            the Specialized License Plate Fund in the State Treasury. 



          4)Further requires that upon appropriation by the Legislature,  
            the monies in that fund shall be allocated to each sponsoring  
            agency, in proportion to the amount in the fund that is  
            attributable to the agency's specialized license plate  
            program. 
          FISCAL EFFECT:  Unknown










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          COMMENTS:  


          1)Author's statement of need for legislation: New revenue  
            sources for the arts.


            According to the author, "State matching funds will provide a  
            base level of support to the arts and restores funding the  
            California Arts Council has lost in the last decade. Further,  
            AB 55 recognizes the investment made by individuals by  
            requiring the state to match its funding level with that of  
            individual donations and encourages Californians to purchase a  
            specialized license plate and donate to the Arts Council."


            "The arts provide an intellectual infrastructure for our  
            entire creative economy, from technology to the entertainment  
            industry. Just as importantly, the arts are vital to our  
            state's international reputation and to the quality of life  
            that we are very proud of as Californians. Specifically, AB 55  
            will empower the Arts Council to expand its grant program to  
            continue supporting the arts."


            In response to concerns that the funding structure of the bill  
            could be argued to supplant the need for increased state  
            budget funding for the CAC, the author strongly disagrees. He  
            points to the language of the bill which expressly states that  
            it "shall not be construed to prevent the Legislature from  
            appropriating additional funds to the Arts Council."  
            Supporters agree with this interpretation and focus on the  
            continuous funding element of the bill, such as this from the  
            Californians for the Arts, "AB 55 will establish a minimum  
            level of continuous funding for grants used by the California  
            Arts Council?We are making progress in the restoration of the  
            state arts funding to the level of a decade ago."










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          2)Current funding for the CAC.


            The CAC was created in 1975 under then Governor Jerry Brown to  
            increase access to the arts for all Californians. The CAC  
            budget had grown from its first full year of funding in fiscal  
            year 1976-77 at $1,917,000 to $32,224,000 in fiscal year  
            2001-02, when 1,590 grants were awarded to non-profit arts  
            organizations. In 2003, appropriations to the CAC were cut by  
            97%, and GF appropriation from the Legislature has remained  
            essentially flat at $1,000,000 over the past decade. Since  
            2003, with the exception of last year, California has ranked  
            last or next to last among the states in terms of per capita  
            investment in the arts. However, the last two budget cycles  
            have seen an uptick in spending: 

                 Funding levels for CAC in the fiscal year 2012-13 were  
                 just over $5,000,000 broken down by source as follows:


                 General Fund                         $1,019,865


                 Graphic Design License Plate Account $2,782,555


                 National Endowment for the Arts (NEA)  $1,085,687


                 Special Deposit: Donations          $70,000


                 Tax Check off                         $324,933  


                 Total                                $5,309,540  


                  








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                 Funding levels for CAC in the fiscal year 2013-14 were  
                 almost $8,000,000 broken down by source as follows:


                 General Fund                         $1,082,000


                 Graphic Design License Plate Account $2,815,000


                 National Endowment for the Arts (NEA)  $1,035,000


                 Reimbursements ($2 million from Assembly)  $3,026,000  


                 Total                                $7,958,000  


                 
                  Current funding levels for CAC in the fiscal year 2014-15  
                 were just over $10,000,000 broken down by source as  
                 follows:


                 General Fund                         $6,137,000


                 Graphic Design License Plate Account$2,889,000


                 National Endowment for the Arts (NEA)  $1,095,000


                 Reimbursements                     $1,697,000










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                 Tax Check off                         $250,000  


                 Total                                 $12,068,000


          Prior and related legislation.


          1)AB1625 (Nazarian), Chapter 102, Statutes of 2014, established  
            the California Arts Council Contribution and Donations Fund in  
            the State Treasury to receive unrestricted gifts, donations,  
            bequests, or grants of funds from private sources and public  
            agencies for use by the CAC, as provided, and continuously  
            appropriated these funds to the CAC.


          2)AB 1662 (Calderon), of 2013-14 would have created an annual  
            continuous appropriation from the General Fund (GF) to the  
            California Arts Council (CAC) in an unspecified amount, and  
            made various legislative findings and declarations. AB 1662  
            was heard and passed out of this committee but was held in the  
            Assembly Committee on Appropriations on Suspense.





          3)AB 580 (Nazarian), of 2013-14, substantially similar to AB  
            1662, but contained an appropriation of $75 million dollars  
            for CAC. AB 580 was heard and passed out of this committee but  
            was held in the Assembly Committee on Appropriations on  
            Suspense.



          4)SB 1432 (Lieu), of 2013-14, also substantially similar to AB  
            1662, but with a $25 million dollar continuous appropriation  
            for CAC. SB 1432 held in Senate Appropriations.








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          5)SB 571 (Price), Chapter 430, Statues of 2013, allowed  
            taxpayers to once again make voluntary contributions to the  
            California Arts Council Fund on their state personal income  
            tax returns.



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


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Alliance for Arts Education


          California Arts Advocates


          Californians for the Arts




          Opposition









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          There is no opposition on file.




          Analysis Prepared by:Dana Mitchell / A.,E.,S.,T., & I.M. / (916)  
          319-3450