BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        AB 189|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  AB 189
          Author:   Bloom (D), et al.
          Amended:  7/7/15 in Senate
          Vote:     21  

           SENATE GOVERNMENTAL ORG. COMMITTEE:  11-1, 7/14/15
           AYES:  Hall, Block, Gaines, Galgiani, Glazer, Hernandez, Hill,  
            Hueso, Lara, McGuire, Runner
           NOES:  Vidak
           NO VOTE RECORDED:  Berryhill

          SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  77-0, 5/7/15 (Consent) - See last page for  
            vote

           SUBJECT:   Arts Council: cultural districts


          SOURCE:    Author
          
          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  








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               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.

          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 meetings 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.








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             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.

             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. 








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          Background

          Purpose of this 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  
          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 fiscal year 2013 based  
          on provided data. 









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          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 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 required the council to select a director,  
          who is responsible for hiring council staff, including deputy  
          directors. 

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified8/18/15)


          California Alliance for Arts Education
          California Arts Council
          California Association of Museums
          City and County of San Francisco
          City of Santa Monica
          Los Angeles Chamber Orchestra
          Movimiento de Arte y Cultura Latino Americana
          San Francisco Arts Commission








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          Theatre West


          OPPOSITION:   (Verified8/18/15)


          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."

          ASSEMBLY FLOOR:  77-0, 5/7/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones,  
            Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark  
            Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams,  
            Wood, Atkins
          NO VOTE RECORDED:  Campos, Roger Hernández, Steinorth

          Prepared by:Felipe Lopez / G.O. / (916) 651-1530
          8/18/15 16:54:19








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