BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Isadore Hall, III Chair 2015 - 2016 Regular Bill No: AB 189 Hearing Date: 7/14/2015 ----------------------------------------------------------------- |Author: |Bloom | |-----------+-----------------------------------------------------| |Version: |7/7/2015 Amended | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Felipe Lopez | | | | ----------------------------------------------------------------- SUBJECT: Arts Council: cultural districts DIGEST: This bill requires the California Arts Council (CAC) to establish criteria and guidelines for state-designated cultural districts, as defined, and establishes a competitive application system by which a community may apply for certification as a state-designated cultural district. ANALYSIS: Existing law: 1)Establishes the CAC which shall, among other things, do all of the following: a) Encourage artistic awareness, participation and expression. b) Help independent local groups develop their own art programs. c) Promote the employment of artists and those skilled in crafts in both the public and private sector. d) Provide for the exhibition of art works in public buildings throughout California. 2)Provides that the CAC shall be composed of 11 members. 3)Specifies that the Speaker of the Assembly and the Senate Rules Committee shall each appoint one member to the CAC. AB 189 (Bloom) Page 2 of ? 4)Provides that the Governor shall appoint nine members to the CAC which shall be subject to confirmation by the Senate. 5)Specifies that members of the CAC shall be reimbursed one hundred dollars ($100) per meeting and shall be reimbursed for necessary traveling and other expenses incurred in the performance of official duties. 6)Species that the CAC shall meet at the call of the chairperson no more than eight times each calendar year. 7)Provides that unless there are extraordinary circumstances, all meeting are to be preceded by at least eight days public notice and shall be held in various places throughout the state so as to encourage broad and diverse attendance. This bill: 1)Requires the CAC to establish criteria and guidelines for state-designated cultural districts. 2)Requires the CAC 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. c) Collaborate with other public agencies and private entities to maximize the benefits of state-designated cultural districts. 3)Defines "state-designated cultural district" as a geographical area certified pursuant to the provisions of this bill 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. AB 189 (Bloom) Page 3 of ? d) Fosters local cultural development. e) Provides a focal point for celebrating and strengthening the unique cultural identity of the community. 4)Specifies that a geographical area within the state may be certified as a state-designated cultural district by applying to the CAC for certification. 5)Provides that a certification as a state-designated cultural district shall be for a period of five years, after which the district may renew certification every three years. 6)Specifies that the CAC may solicit and receive gifts, donations, bequests, grants 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 to implement the provisions of this bill. Background Purpose of the bill. According to the author, "studies have shown that creative economy jobs and commerce tend to cluster into particular regions that greatly benefit from the exchange and sharing of resources, entrepreneurial dialogue, and economic activity. Whether it be the Hollywood Walk of Fame or San Diego's historic Gaslamp Quarter, certain areas of the state have defined themselves by a community focus on arts and culture. Cultural districts have the potential to draw in tourism and invigorate local economies." The author further argues that, "other states, such as Massachusetts and Louisiana, that have Arts & Culture District programs have seen substantial economic benefit over time: the creation of new business, increased community interaction and out-of-area visitors, as well as increased government revenue based on economic growth." Cultural Districts. 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. Supporters argue that a cultural district designation helps strengthen local economies, create an enhanced sense of place, and deepen local cultural AB 189 (Bloom) Page 4 of ? capacity. There are 14 other states that have established official state Arts & Cultural Districts programs. Economic Impact of Cultural Districts in Maryland. In 2013, the Maryland State Arts Council sought a report detailing the economic and fiscal impacts of the 20 Maryland Arts and Entertainment Districts that were currently in place. In a February, 2014 report titled "Maryland Arts and Entertainment Districts Impact Analysis" by the Regional Economic Studies Institute it was concluded that the 20 arts and entertainment districts collectively supported approximately 5,144 jobs and had generated more than $458.2 million and nearly $149.2 million in output and wages, respectively, during FY 2013 based on provided data. While those numbers seem to suggest that cultural districts are an economic benefit to states, a 2014 report titled "National Cultural Districts Exchange" by the Americans for the Arts concluded that, "even with robust data collection, providing the influence of arts based initiatives on community well-being remains difficult." Prior/Related Legislation AB 1432 (Lieu, 2014) would have continuously appropriated $25 million from the General Fund annually to the CAC to issue grants. (Held in the Assembly Appropriations Committee) AB 1625 (Nazarian, Chapter 102, Statutes of 2014) established the California Arts Council Contribution and Donations Fund to receive monies donated to the CAC. AB 1777 (Portantino, 2010) would have diverted $24 million in revenues from General Fund programs to a new local grant program for the arts. (Held in the Assembly Appropriations Committee) AB 2610 (Niello, Chapter 100, Statutes of 2010) removed the Governor's authority to appoint the director and two deputies to the CAC and instead requires the council to select a director, who is responsible for hiring council staff, including deputy directors. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No AB 189 (Bloom) Page 5 of ? SUPPORT: California Alliance for Arts Education City and County of San Francisco City of Santa Monica San Francisco Arts Commission OPPOSITION: None received ARGUMENTS IN SUPPORT: According to the California Alliance for Arts Education, "designated cultural districts have the potential to positively impact California's economy and to increase access to arts experiences for all Californians. Relevant cultural experiences clearly enhance students' appreciation of the arts and deepen their understanding of the role they might play both in school and in the community." Similarly, the San Francisco Arts Commission argues that, "cultural designations are extremely valuable in the face of changing neighborhoods, especially in communities where a rebounding economy triggers a steep decrease in vacancies and a highly competitive real estate market. Legislation that aids in maintaining existing artists and creative businesses while welcoming in new residential and commercial tenants is critical."