BILL ANALYSIS
SB 1076
Page 1
SENATE THIRD READING
SB 1076 (Price)
As Amended August 2, 2010
Majority vote. Fiscal committee.
SENATE VOTE :22-7
REVENUE & TAXATION 8-1 APPROPRIATIONS 16-0
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|Ayes:|Portantino, Beall, |Ayes:|Fuentes, Conway, |
| |Charles Calderon, Coto, | |Bradford, |
| |Fuentes, Gatto, Harkey, | |Charles Calderon, Coto, |
| |Nestande | |Davis, |
| | | |De Leon, Gatto, Hall, |
| | | |Harkey, Miller, Norby, |
| | | |Skinner, Solorio, |
| | | |Torlakson, Torrico |
|-----+--------------------------+-----+--------------------------|
|Nays:|DeVore | | |
| | | | |
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SUMMARY : Authorizes the addition of the Arts Council Fund
(Fund) checkoff to the personal income tax (PIT) form upon the
removal of another voluntary contribution fund (VCF) from the
form. Specifically, this bill :
1)Establishes the Fund in the State Treasury.
2)Provides that all money transferred to the Fund, upon
appropriation by the Legislature, shall be allocated as
follows:
a) To the Franchise Tax Board (FTB) and the State
Controller for reimbursement of costs incurred in
administering the checkoff; and,
b) To the Arts Council, for allocation of grants to
individuals or organizations administering arts programs
under Government Code Section 8753(o).
3)Provides that funds made available to the Arts Council shall
not be used for any purpose other than to provide grants as
prescribed by this bill. Specifically, funds shall not be
SB 1076
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used for administrative purposes, or for any purpose relating
to the Art Council's own operations.
4)Provides for the Fund provisions' automatic repeal on either
January 1 of the fifth taxable year following the first
appearance of the Fund on the PIT return or on January 1 of an
earlier year, if FTB estimates that the annual contribution
amount will be less than $250,000, or an adjusted amount for
subsequent years.
EXISTING LAW :
1)Allows taxpayers to designate on their PIT returns a
contribution to any of 15 VCFs.
2)Provides a specific sunset date for each VCF, except for the
California Seniors Special Fund.
3)Provides that each VCF must meet a minimum annual contribution
amount to remain in effect, except for the California Seniors
Special Fund, the California Firefighters' Memorial Fund, and
the California Peace Officer Memorial Foundation Fund.
4)Provides for an Arts Council composed of 11 members.
FISCAL EFFECT : FTB staff estimates annual revenue losses,
beginning in fiscal year 2011-12, of roughly $15,000 resulting
from itemized deductions.
COMMENTS :
The author states, "SB 1076 would assist the California Arts
Council to offset the 80% reduction to its budget over the last
8 years (citations omitted), which has resulted in reduced arts
education programming and less funding for arts programs in
rural and underserved urban areas."
Proponents state: Since 2003, California has ranked last among
all the states in per capita investment in the arts - allocating
just three cents per person from the General Fund, when the
national average is one dollar. SB 1076 would assist the
California Arts Council to offset the 81% reduction to its
budget over the last 8 years - cuts which have resulted in
reduced arts education programming and less funding for arts
SB 1076
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programs in rural and underserved urban areas.
Committee Staff Comments: The Arts Council: As noted above,
state law provides for an Arts Council of 11 members. The Arts
Council is charged with encouraging artistic awareness,
promoting the employment of artists, and assisting independent
local groups in developing their own art programs. The Arts
Council is also tasked with awarding prizes and direct grants to
individuals and organizations.
Related bills in the current legislative session:
a) AB 1088 (Fletcher) authorizes the addition of the
California Veterans Homes Fund checkoff to the PIT form
upon the removal of another VCF from the form. AB 1088 is
currently pending on the Senate Floor.
b) AB 1983 (Torrico) authorizes the addition of the Safely
Surrendered Baby Fund checkoff to the PIT form upon the
removal of another VCF from the form. AB 1983 is currently
pending on the Senate Floor.
c) AB 2017 (Hall) authorizes the addition of the California
Youth Leadership Fund checkoff to the PIT form upon the
removal of another VCF from the form. AB 2017 is currently
pending on the Senate Floor.
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098
FN: 0005660