BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1387|
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THIRD READING
Bill No: AB 1387
Author: Solorio (D)
Amended: 8/24/12 in Senate
Vote: 21
PRIOR VOTES NOT RELEVANT
SUBJECT : Budget Act of 2012 trailer bill: California
State Library
SOURCE : Author
DIGEST : This bill appropriates and additional $100,000
(Proposition 40 bond funds) to the California Cultural and
Historical Endowment (CCHE) in the 2012-13 fiscal year.
Senate Floor Amendments of 8/24/12 delete the prior version
of the bill relating to emergency medical services and
replaces it with the above language.
ANALYSIS : The adopted Budget Act of 2012 appropriated
$562,000 in Proposition 40 bond funds to the CCHE. AB 716
(Firebaugh), Chapter 1126; Statutes of 2002, established
the California State Library to raise the profile and scope
of California's historic and cultural preservation program.
CCHE is entirely Proposition 40 bond funded, including
both for state operations and the various grant programs it
administers. AB 716 directs the CCHE Board and staff to
explore how the CCHE could become a stand-alone state
entity with responsibility for preserving California's
CONTINUED
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cultural heritage, but due to dwindling bond funds, CCHE is
currently scheduled to formally close in 2015. CCHE
operates under the direction of a Board comprised of ten
members: the State Librarian (who serves as Chair), the
Secretary of the Resources Agency, the Director of the
Department of Finance, two gubernatorial appointees, two
Senate appointees, and two Assembly appointees. In
addition, two members of the Senate and two members of the
Assembly participate in the activities of the Board but do
not vote.
In March 2012, the CCHE was invited by the California
Association of Museums (CAM) to serve as the state sponsor
of a new special interest license plate featuring the
cartoon character Snoopy to benefit museums. In May 2012,
the CCHE Board approved this proposal as well as a 2013-14
Budget Change Proposal to support the one-time
administration costs associated with the start-up of the
license plate program.
The additional $100,000 in 2012-13 is for one-time state
operations expenses related to start-up costs for the
Snoopy specialized license plate, including: (1)
administration costs to establish an online sales portal in
order to pre-sell at least 7,500 license plates, as
required by state law; (2) all legal fees related to
researching and entering into agreements with the CAM and
the Peanuts Worldwide organization; and (3) additional CCHE
staff costs to assist in bringing the plate program and the
corresponding museum grant program into existence.
Legislative Counsel has provided an informal verbal opinion
raising concern about expenditure of Proposition 40 bond
funds for the start-up costs related to the license plate
program. Counsel indicated that the bond funds can only be
used for designated activities within the bond act
(historical preservation in this case) and even though the
bond would be used as seed money to do additional future
preservation activities, it is not a permissible use
because funding a license plate program is not historical
preservation. The bond act text is pretty broad with
regard to activities, but it is still for
preservation-related projects and does not mention any
ability or leeway to use the bond funds to raise additional
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funds for these purposes.
According to the transcript of the May 2012 CCHE Board
meeting, the Deputy Attorney General who serves as CCHE
counsel, indicated that the use of the funding would be to
set up and design a grant program that would be for
capital assets that would be museum oriented. Therefore,
as long as the funding is being used for purposes that are
consistent both with the statute and Proposition 40, it is
permissible.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
DWL:d 8/27/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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