BILL ANALYSIS �
Bill No: AB
1625
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
AB 1625 Author: Nazarian
As Introduced: February 10, 2014
Hearing Date: May 13, 2014
Consultant: Art Terzakis
SUBJECT
California Arts Council Contribution and Donations Fund
DESCRIPTION
AB 1625 establishes the California Arts Council
Contribution and Donations Fund to receive moneys donated
to the California Arts Council (CAC). Specifically, this
measure:
1)Creates in the State Treasury, the continuously
appropriated California Arts Council Contribution and
Donations Fund to receive gifts and donations made to the
CAC for the purpose of fulfilling its mission.
2)Provides that any moneys in the Art Council Donations
Account must be transferred to the California Arts
Council Contribution and Donations Fund.
EXISTING LAW
Existing law provides for the California Arts Council (CAC)
which was established by the Dixon-Zenovich-Maddy
California Arts Act of 1975. Its purpose was to encourage
artistic awareness, participation, and expression; to
assist independent local groups to develop art programs; to
promote the employment of artists in both the public and
private sectors; to provide for the exhibition of artwork
in public buildings and to enlist the aid of all state
agencies in the task of ensuring the fullest expression of
AB 1625 (Nazarian) continued
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artistic potential.
The CAC consists of 11-members who serve four-year
staggered terms. Nine members are appointed by the
Governor, subject to Senate confirmation, and one member
each is appointed by the Senate Committee on Rules and the
Speaker of the Assembly. The members serve without salary,
elect their own chair, and meet throughout the state to
encourage public attendance.
Existing law requires the Department of Motor Vehicles
(DMV) to issue, for fees in specified amounts, a special
interest license plate bearing a full-plate graphic design
that depicts a significant feature or quality of the State
of California and is approved by the DMV in consultation
with CAC.
BACKGROUND
Purpose of AB 1625: Existing law grants the CAC the
authority 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.
The author's office notes that "a special deposit fund is a
trust fund in the State Treasury and provides a depository
for money received for a specific liability and is
considered a temporary fund. The CAC currently has an
active special deposit fund titled Art 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."
According to the author's office, this measure was
introduced to simply establish a continuous special revenue
fund, referred to as the California Arts Council
Contribution and Donations Fund, to replace the Art Council
Donations Account in the Special Deposit Fund. The
author's office states that the change will create a
continuous special revenue fund and allow the CAC's program
expenditures to be accounted for in the state budget and
AB 1625 (Nazarian) continued
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provide a more effective administration of private and
public donations. The author's office emphasizes that the
CAC's ability to accept donations ensures that it can act
swiftly to address new opportunities and support special
projects and leadership initiatives that focus on arts
education and local programming.
PRIOR/RELATED LEGISLATION
SB 1432 (Lieu) 2013-14 Session. Among other things, would
continuously appropriate $25 million from the General Fund
to the California Arts Council to be used for grants, as
currently authorized by law, to further the arts and
California's economy. (Pending Senate Appropriations
Suspense File)
AB 1662 (Calderon) 2013-14 Session. Would continuously
appropriate an unspecified amount annually from the General
Fund to the California Arts Council to be used for grants.
(Pending Assembly Appropriations Suspense File)
SB 571 (Price), Chapter 430, Statues of 2013. Allowed
taxpayers to make voluntary contributions to the California
Arts Council Fund on their state personal income tax
returns.
AB 580 (Nazarian) 2013-14 Session. Would have appropriated
$75 million annually from the General Fund to the
California Arts Council to be used for grants. (Died in
Assembly Appropriations Committee - Suspense File)
AB 1777 (Portantino) 2009-10 Session. Would have created
the Creative Industries and Community Economic
Revitalization Act of 2010 and required 20% of all revenue
derived from payment of sales and use taxes from businesses
engaged in "arts related business activity" be remitted to
a newly created fund in support of the California Arts
Council and arts grant programs for cities and local
governments. (Held in Assembly Appropriations Committee -
Suspense File)
SB 1076 (Price), Chapter 319, Statutes of 2010. Allowed
taxpayers to make voluntary contributions to the California
Arts Council Fund on their state personal income tax
returns. This act sunset due to failure of the CAC to reach
the statutory threshold of $250,000 in tax donations.
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AB 2610 (Niello), Chapter 100, Statutes of 2010. Required
the California Arts Council to hire its own Director, who
shall be responsible for, amongst other things, hiring
staff in support of the California Arts Council.
AB 700 (Krekorian) 2009-10 Session. Similar to AB 1777
(Portantino) of 2010. (Held in Assembly Appropriations
Committee)
AB 2728 (Karnette) 2007-08 Session. Would have required
20% of state sales and use tax revenues derived from the
sales of specified art-related goods be deposited in the
State Treasury for allocation to the California Arts
Council once the state General Fund achieves structural
balance. (Held in Assembly Appropriations Committee)
AB 1365 (Karnette) 2007-08 Session. Similar to AB 2728
(Karnette), without the balanced budget trigger
requirement. (Held in Assembly Appropriations Committee)
AB 252 (Dymally) 2005-06 Session. Would have extended the
sunset date of the provisions contained in the Digital Arts
Studio Partnership Demonstration Act to January 1, 2011.
This Act would have been administered by the California
Arts Council. (Vetoed by the Governor)
AB 655 (Leno) 2005-06 Session. Would have proposed a 1%
surcharge on the price of admission to specified arts and
entertainment venues for the purpose of establishing an
independent source of revenue for the California Arts
Council. (Held in Assembly policy committee)
SB 368 (O'Connell) 2001-02 Session. Would have allocated
$2 million from the General Fund to the California Arts
Council, in augmentation of a specified item of the Budget
Act of 2000, for allocation to the Hollywood Entertainment
Museum. (Failed passage in Senate Appropriations
Committee)
SUPPORT: As of May 9, 2014:
California Arts Council
California Alliance for Arts Education
OPPOSE: None on file as of May 9, 2014.
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FISCAL COMMITTEE: Senate Appropriations Committee
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