BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 189


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          Date of Hearing:  April 7, 2015


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


                                   Calderon, Chair


          AB  
                     189 (Bloom) - As Introduced  January 27, 2015


          SUBJECT:  California Arts Council:  cultural districts.


          SUMMARY:  Directs the California Arts Council (CAC) to establish  
          criteria and guidelines for state-designated cultural districts.  
          Specifically, this bill:  


          1)Requires that the CAC establish criteria and guidelines for  
            state-designated cultural districts, as defined.



          2)Provides that executing its powers and duties under this  
            chapter, the council shall do all of the following:



             a)   Establish a competitive application system by which a  
               community may apply for certification as a state-designated  
               cultural district.



             b)   Provide technical assistance and promotional support for  
               state-designated cultural districts.










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             c)   Collaborate with other public agencies and private  
               entities to maximize the benefits of state-designated  
               cultural districts.



          3)Provides that initial certification as a state-designated  
            cultural district shall be for a period of five years. 



            Further provides that a certified district may renew  
            certification every three years after expiration of the  
            initial five year period.





          4)Defines a, "state-designated cultural district" to mean a  
            geographical area certified pursuant to this chapter with a  
            concentration of cultural facilities, creative enterprises, or  
            arts venues that does any of the following:



             a)   Attracts artists, creative entrepreneurs, and cultural  
               enterprises.



             b)   Encourages economic development and supports  
               entrepreneurship in the creative community.



             c)   Encourages the preservation and reuse of historic  
               buildings and other artistic and culturally significant  
               structures.










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             d)   Fosters local cultural development.



             e)   Provides a focal point for celebrating and strengthening  
               the unique cultural identity of the community.
          EXISTING LAW:  


          4)Creates the CAC, consisting of 11-members who serve four-year,  
            staggered terms. Nine members are appointed by the Governor,  
            subject to Senate confirmation, and the Speaker of the  
            Assembly and the Senate Committee on Rules appoint one member  
            each.  



          5)Directs CAC to encourage artistic awareness, participation,  
            and expression; to help independent local groups develop their  
            own arts programs; to promote employment of artists and those  
            skilled in crafts in the public and private sector; to provide  
            for exhibition of artistic works in public buildings; and, to  
            enlist the aid of all state agencies in the task of ensuring  
            the fullest expression of artistic potential. 



          6)Authorizes CAC to hold hearings, execute agreements, and  
            perform any acts necessary and proper to carry out their  
            designated purposes.
          


          FISCAL EFFECT:  Unknown


          COMMENTS:  


          1)Author's Statement and Support for Legislation. According  
            to the author, "The Creative Economy is a major  








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            powerhouse of jobs and revenue in California, generating  
            over 7% of the state's economic activity and supporting  
            1.4 million jobs. Whether it is music, film or visual  
            arts, California's creative economy has long been an  
            important part of our state's cultural and economic  
            infrastructure. Studies have shown that creative entities  
            and business often cluster into certain areas, likely due  
            to the benefits from exchanging and sharing resources,  
            entrepreneurial dialogue, and economic activity. These  
            clusters are often well-loved parts of cities and can be  
            found throughout the state. 



            "AB 189 would allow the California Arts Council to  
            designate these kinds of areas as official California  
            Cultural Districts. Establishing state-designated  
            cultural districts will help to draw more tourism and  
            commerce to these creative clusters. Almost three  
            quarters of "leisure travel" in the U.S. is spent on arts  
            and cultural experiences. Establishing cultural district  
            will create resources for this sector of the tourism  
            industry and would be very beneficial to local economies.  
            Other states, such as Maryland, have successfully  
            implemented their own cultural district programs and seen  
            noticeable economic benefits for the designated areas.  
            Arts and cultural districts in other states have spurred  
            new business, increased community interaction, attracted  
            more tourism, and increased government revenue based on  
            the economic growth. 





            "The California Arts Council is the ideal state agency to  
            administer a cultural districts program. The main focus  
            of the council is to advance California through the arts  
            and creativity, a mission that aligns with the intended  
            purpose of cultural districts. The agency is familiar  
            with thousands of nonprofits and supports a network of  
            local arts agencies and arts support organizations. The  








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            Council works closely with other state and local agencies  
            on arts and culture subjects and promotes workforce  
            development in the creative economy. Therefore, the  
            Council is well equipped to help future districts reach  
            their full potential. Almost all states with arts and  
            cultural districts programs have designated their state  
            arts agency as the lead for their programs. Through  
            technical support provided by the Council, the California  
            Cultural Districts program has the potential to  
            significantly increase tourism and encourage commerce in  
            creative communities."





            The California Arts Council states the following in  
            strong support, "AB 189 would authorize and direct the  
            Arts Council to establish criteria and guidelines for a  
            program of state-designated cultural districts. The bill  
            would require the council to establish a competitive  
            application system for certification, provide technical  
            and promotional support for certified state-designated  
            cultural districts, and collaborate with public agencies  
            and private entities to maximize the benefits of  
            state-designated cultural districts. State arts agencies  
            have a potentially unique role in identifying and  
            cultivating creative places and neighborhoods in a  
            variety of areas across a state. Recognition of locations  
            in both urban and rural settings allows the California  
            Arts Council to strategically cultivate and encourage  
            cultural growth from a regional and local perspective. 





            "The requirements and procedures for certifying districts  
            vary from state to state and may be defined in enabling  
            legislation. However, the enabling legislation for the  
            California Arts Council, Government Code Section  
            8750-8756, is devoid of this language, and this  








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            legislation will clarify and name the California Arts  
            Council as the agency responsible for establishing and  
            implementing this program."





          2)Background. 



             a)   California Arts Council. The Californian Arts Council  
               was created in 1975 under then Governor Jerry Brown to  
               increase access to the arts for all Californians. Over the  
               course of 25 years, the CAC's impact grew especially  
               through efforts that brought arts programming to  
               underserved communities and populations across the state  
               (such as rural communities, inner city neighborhoods,  
               prisons and schools). Examples of programs the CAC has  
               offered over the years include:

                     Artists in Schools - Support for arts organizations  
                 that partner with schools and/or school districts to  
                 facilitate artists-in-residence activities in the  
                 classroom and after-school programs.  

                     Creating Public Value - Support for arts  
                 organizations in rural or underserved areas to implement  
                 projects making a positive contribution to their  
                 communities.

                     Statewide Service Networks - Support for  
                 discipline-based arts service organizations and statewide  
                 arts networks to strengthen their constituencies and  
                 promote the public value of the arts in their  
                 communities.  

                     State-Local Partnership - Support for local arts  
                 agencies designated by county boards of supervisors to  
                 provide arts in local communities. 









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                     My California Story Slam - Encourages educators to  
                 explore creative writing in their high school classrooms  
                 and to draw upon the expressive skills of their students.



                     Poetry Out Loud - National recitation contest that  
                 encourages high school students to experience poetry  
                 through memorization, performance, and competition.  
                 Poetry Out Loud is an initiative of the National  
                 Endowment for the Arts (NEA).  



                     American Masterpieces: California - An initiative of  
                 the NEA developed to introduce Americans to the best of  
                 their artistic and cultural legacy. Two tours are being  
                 promoted for 2007-08 presentations in California:  
                 American Tap Masterpieces - The Hollywood Journey, and  
                 Música Festiva de las Misiones.  



                     California Music Project - To help restore music  
                 education in public schools, K-12.  



                     Convenings - Annual statewide arts conference,  
                 professional development sessions, with the multicultural  
                 infrastructure (9 discipline-based arts service  
                 organizations) and statewide service network  
                 organizations (6 organizations).  



                     Poet Laureate - Overview, nomination process,  
                 eligibility and criteria for two-year gubernatorial  
                 appointment to the position of Poet Laureate and related  
                 literary tour.








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                     Marketing: Public Awareness - Using social change  
                 models, marketing & advocacy to reframe the arts as a  
                 public value--essential to a healthy society, as critical  
                 as free speech.  

             a)   Cultural District Programs. According to information  
               supplied by supporters, cultural districts are  
               well-recognized, labeled areas of a city in which a high  
               concentration of cultural facilities and programs serve as  
               the main anchor of attraction and creative business  
               development. They help strengthen local economies, create  
               an enhanced sense of place, and deepen local cultural  
               capacity. There are 14 other states that have established  
               official state Arts & Cultural Districts programs.

               Under AB 189, a, "state-designated cultural district" would  
               be defined as a geographical area with a concentration of  
               cultural facilities, creative enterprises, or arts venues  
               that does any of the following: Attracts artists, creative  
               entrepreneurs, and cultural enterprises; Encourages  
               economic development and supports entrepreneurship in the  
               creative community; Encourages the preservation and reuse  
               of historic buildings and other artistic and culturally  
               significant structures; Fosters local cultural development;  
               Provides a focal point for celebrating and strengthening  
               the unique cultural identity of the community.


             b)   Economic Impact of Cultural Districts and the Arts. The  
               National Cultural Districts Exchange, a national  
               organization comprised of state and jurisdictional arts  
               agencies, recently published a paper entitled, "State  
               Cultural Districts: Policies, Metrics, and Evaluation"  
               which details the various models states have adopted or are  
               considering for Cultural Districts. The paper highlights  
               the 14 existing programs, and offers an upbeat analysis of  
               the future of this hybrid of urban planning and cultural  
               amenity. In the "Evaluation" portion of their paper, the  
               authors admit, "Even with robust data collection, proving  








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               the influence of arts based initiatives on community  
               well-being remains difficult?" 



          However, The Maryland State Arts Council was able to quantify  
          the economic benefit of the 20 Maryland Arts and Entertainment  
          Districts currently in place. They found that 5,144 direct,  
          indirect, and induced jobs were created during their study  
          period (2013); more than $458.2 million in total state GDP were  
          supported; $149.2 million in total wages were paid, and the  
          total tax revenue attributed to the districts was approximately  
          $36.3 million. (Irani, Grimm, Maryland Arts and Entertainment  
          Districts Impact Analysis FY 2103, [February 25, 2014], Regional  
          Economic Studies Institute of Townson University.)





          Supporters of AB 189 also provided the committee staff with  
          information to support their assertions that public investment  
          in the non-profit arts has been proven to both spark economic  
          activity in communities and return tax dollars to public  
          coffers. Pointing out recent research which shows that arts  
          investments made by the state of Pennsylvania generated $2.50  
          for the state's treasury for every one dollar spent.  In  
          California, the Los Angeles County Economic Development  
          Commission issues an annual report on the Creative Economy, The  
          2013 Otis Report on the Creative Economy, which tabulated the  
          economic activity of the entire creative economy, found that 1  
          in 10 jobs in California are part of the creative industries,  
          the creative industries of California generated $273.5 billion  
          in total (direct, indirect, and induced) economic output, and  
          employ 1.4 million workers. The tax contributions of the  
          creative industries to the state are an impressive $13 billion  
          dollars annually when one combines the total property, state and  
          local personal income, sales and other taxes.


          5)Prior and Related Legislation. ACR 46 (Calderon), of 2015,  
            would declare the importance of the arts to the state and the  








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            essential role of the Arts Council in promoting the arts  
            throughout the state, and urge a unified effort between the  
            Legislature and the Governor to provide a substantial increase  
            in the General Fund appropriation to the California Arts  
            Council in the 2015-16 Budget Act. Status: Currently pending  
            before this Committee.


          6)Double-referral: Should this bill pass out of this committee,  
            it will be re-referred to the Assembly Committee on Local  
            Government.


          REGISTERED SUPPORT / OPPOSITION:


          Support


          Arts Orange County
          California Alliance for Arts Education
          California Arts Council
          California Arts Advocates
          MACLA/Movimiento de Arte y Cultura Latino Americana
          Silicon Valley Creates
          Theatre West
          ZERO1: The Art & Technology Network


          Opposition


          There is no opposition on file.


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












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