BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1625
                                                                  Page  1

          Date of Hearing:   April 9, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

               AB 1625 (Nazarian) - As Introduced:  February 10, 2014 

          Policy Committee:                              Arts Vote:7-0  
          (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)Establishes the continuously-appropriated Arts Council  
            Contribution and Donations Fund, to receive gifts and  
            donations made to the California Arts Council (CAC) to fund  
            the council's programs.

          2)Transfers any money in the Art Council Donations Account in  
            the Special Deposit Fund to the new fund.

           FISCAL EFFECT  

          Negligible fiscal impact. Establishment of the fund simply  
          provides the council a permanent means of accepting and  
          administering donations provided to support the council's  
          programs.

           COMMENTS  

           1)Background and Purpose  . Under current law, the CAC is  
            authorized to accept unrestricted gifts, donations, and grants  
            to help fulfill the council's statutory requirements. Such  
            donations are currently deposited in the Art Council Donations  
            Account in the Special Deposit Fund. According to the CAC, it  
            has received and spent approximately $282,000  from the  
            Special Deposit Fund since 2003. 

            According to information provided by the author, "A Special  
            Deposit Fund is a trust fund in the State Treasury and  
            provides a depository for money received for a specific  








                                                                 AB 1625
                                                                  Page  2

            liability and is considered a temporary fund.  The CAC  
            currently has an active Special Deposit Fund titled California  
            Arts Council Donations that must be renewed every two years?  
            In May 2013, the CAC was given a two year extension on its  
            Special Deposit Fund account, with instructions from the State  
            Controller's Office and the Department of Finance for the CAC  
            to establish a new Continuous Special Revenue Fund in  
            statute."

           2)Continuous appropriations  are generally contrary to the policy  
            of this committee, as they diminish the Legislature's  
            authority to make annual budget decisions. This bill, however,  
            only involves  non-state monies provided specifically to the  
            CAC to further its legislative mandate.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081