BILL ANALYSIS Ó
AB 189
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Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Brian Maienschein, Chair
AB 189
(Bloom) - As Introduced January 27, 2015
SUBJECT: Arts Council: cultural districts.
SUMMARY: Requires the California Arts Council to establish
criteria and guidelines for state-designated cultural districts,
and defines state-designated cultural districts. Specifically,
this bill:
1)Requires the California Arts Council (Arts Council) to
establish criteria and guidelines for state-designated
cultural districts.
2)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;
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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;
d) Fosters local cultural development; and,
e) Provides a focal point for celebrating and strengthening
the unique cultural identity of the community.
3)Requires the Arts Council, in executing its powers and duties
under this chapter, to 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; and,
c) Collaborate with other public agencies and private
entities to maximize the benefits
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of state-designated cultural districts.
4)Provides that initial certification as a state-designated
cultural district shall be for a period
of five years, after which a certified district may renew
certification every three years.
5)Authorizes the Arts Council to solicit and receive gifts,
donations, bequests, grant of funds, or any other revenues
from public or private sources and expend those moneys, upon
appropriation of the Legislature, for a state-designated
cultural district program and for any other purpose it deems
necessary.
EXISTING LAW:
1)Creates the Arts Council, 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.
2)Directs the Arts Council 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.
FISCAL EFFECT: This bill is keyed fiscal.
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COMMENTS:
1)Bill Summary. This bill requires the Arts Council to
establish criteria and guidelines for state-designated
cultural districts. This bill defines a "state-designated
cultural district" 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; and, provides
a focal point for celebrating and strengthening the unique
cultural identity of the community. Under this bill, the Arts
Council will establish a competitive application system,
provide technical assistance and promotional support, and
collaborate with other public agencies and private entities to
maximize the benefits of state-designated cultural districts.
This bill is sponsored by the California Arts Council.
2)Author's Statement. According to the author, "The Creative
Economy is a major 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
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of cities and can be found throughout the state.
"The creative clusters around California could benefit greatly
from being designated as official state cultural districts.
Almost three quarters of "leisure travel" in the U.S. is spent
on arts and cultural experiences. Establishing cultural
districts 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.
"This bill 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. 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 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."
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3)Policy Considerations. The Committee may wish to consider the
following:
a) Applicant. The Committee may wish to ask the author to
further specify what entity will be applying to the Arts
Council for certification as a state-designated cultural
district. This bill allows a community to apply for
certification, but does not define what a community is. If
the author's intent is to have local agencies - cities and
counties - be the applicant, the bill should reflect that.
Under existing law, many businesses choose to create a
business improvement district, or specifically a tourism
marketing district, to levy assessments on themselves as
business owners to pay for marketing and other activities
that promote tourism within the district. The Committee
may wish to ask the author if the intent is also to allow
business improvement districts or other similar financing
districts to qualify to as an applicant.
b) Funding. If the Arts Council intends to provide all of
the funding from their existing budget, the Committee may
wish to ask the sponsor if applicants will be required to
pay for certification. Similar legislation in other states
has provided financial incentives to participate. For
example, Maryland's Arts & Entertainment Districts have
tax-related incentives and funding through technical
assistance grants.
4)Arguments in Support. Supporters argue that this bill would
allow the Council to help local communities, along with their
partners in the arts, community development, and municipal
government to improve the quality and vitality of these areas.
Additionally, cultural districts would enhance the experience
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for visitors, attracting more tourist dollars, tax revenue,
and community pride.
5)Arguments in Opposition. None on file.
6)Double-Referral. This bill was heard by the Arts,
Entertainment, Sports, Tourism, and Internet Media Committee
on April 7, 2015, and passed with a 6-0 vote.
REGISTERED SUPPORT / OPPOSITION:
Support
California Arts Council [SPONSOR]
Arts Orange County
Artspace Projects
California Alliance for Arts Education
California Arts Advocates
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California Association of Museums
Californians for the Arts
MACLA (Movimiento de Arte y Cultura Latino Americana)
San Luis Obispo Symphony
Theatre Bay Area
Opposition
None on file
Analysis Prepared by:Misa Lennox / L. GOV. / (916) 319-3958
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