BILL ANALYSIS �
Bill No: SB
1432
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
SB 1432 Author: Lieu
As Amended: April 1, 2014
Hearing Date: April 8, 2014
Consultant: Art Terzakis
SUBJECT
California Arts Council: grants
DESCRIPTION
SB 1432 continuously appropriates $25 million from the
General Fund to the California Arts Council (CAC) to be
used for grants, as currently authorized by law, to further
the arts and California's economy. Additionally, this
measure makes the following findings and declarations:
1)The CAC was established in 1976 with an initial General
Fund budget of $750,000; by the 1982-83 fiscal year the
budget was nearly $11 million and reached a high of
nearly $29 million in the 2000-01 fiscal year. Steady
budget cuts ensued thereafter and for the past decade the
CAC's budget has remained essentially flat at $1 million.
2)Currently, California ranks last out of the 50 states and
six territories with $0.03 in per capita spending on the
arts.
3)Creative industries in California have a total economic
impact in the state of $273.5 billion (direct, indirect,
and induced) and they employ 1.4 million workers who
generate nearly $13 billion in property taxes, income
taxes, and sales taxes into the General Fund and to local
governments.
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4)Every dollar in state support for the arts leverages $7
in earned and contributed revenue, and brings back more
than $3 in taxes to state and local government entities.
5)A $25 million investment per year in the arts would
generate $175 million in earned and contributed revenue
and bring back more than $75 million in taxes to state
and local government entities.
6)States legislative intent to restore CAC's funding to its
1983 level.
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
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 SB 1432: The author's office points out that
the CAC was created in 1975 under then Governor Jerry Brown
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with the express purpose of inspiring public access to the
arts for all Californians and increasing participation in
the arts statewide. The author's office notes that the
CAC, among other things, assists in building strong arts
organizations, promotes awareness in the value of the arts,
supports arts education in the schools and directly
supports arts programs and the development of arts leaders.
The author's office references a study (The 2013 Otis
Report on the Creative Economy) which proclaims that, "The
arts are a fundamental part of California's tourism
industry, economy, education and cultural framework.
Statewide, 1.4 million workers are employed in creative
industries. Additionally, 2012 figures reflect that
creative industries had a total economic impact in the
state of $273.5 billion, generating tax revenues of $13
billion."
According to the author's office, the current CAC budget is
only $1 million which ranks California last in the nation
in per capita spending on state art agencies. This funding
is insufficient and does not allow the CAC to adequately
invest in the state's art programs. As a result, art
programs and art-related businesses are unable to thrive or
even exist. The CAC is also funded by other sources - such
as a special license plate fund and the National Endowment
for the Arts - but historically, the General Fund has
supported the vast majority of funding for the CAC.
The author's office emphasizes that this measure would make
a modest, but meaningful restoration of funding to the CAC
so that it can expand its grant program in support of the
arts. Furthermore, the author believes that increased
funding would: (a) lead to an expansion of job
opportunities in the creative economy, (b) stimulate
cultural and art tourism, (c) attract creative workers and
industries, (d) help boost the entertainment industry, (e)
expand opportunities for youth, including at risk youth,
and (f) enhance the health and quality of life of the
elderly.
PRIOR/RELATED LEGISLATION
AB 1676 (Nazarian) 2013-14 Session. Would continuously
appropriate an unspecified sum from the General Fund to the
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California Arts Council to be used for grants. (Pending in
Assembly policy committee)
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 in Assembly Appropriations Committee)
AB 1625 (Nazarian) 2013-14 Session. Would establish the
California Arts Council Contribution and Donations Fund to
receive moneys donated to the California Arts Council.
(Pending in Assembly Appropriations Committee)
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.
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
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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 April 4, 2014:
Arts Orange County
Arts for the Schools
Association of California Symphony Orchestra
Bowers Museum
California Alliance for Arts Education
California Arts Advocates
California Arts Council
California Association of Museums
California Association of Nonprofits
California Lawyers for the Arts
California LGBT Arts Alliance
California Presenters
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Californians for the Arts
Child Creativity Lab
City of Laguna Beach
Colburn Foundation
Crocker Art Museum
Laguna Art Museum
La Jolla Playhouse
Latino Arts Network of California
Los Angeles Orchestra Chamber
Los Angeles Theatre of Hearts/Youth First
Lucky Penny Productions
Maloof Foundation for Arts and Crafts
Muzeo Foundation
Oakland East Bay Symphony
Oakland Museum of California
Plaza De La Raza: Cultural Center for Arts& Education
San Diego Museum of Contemporary Art
SUPPORT (continued)
San Diego Youth Symphony and Conservatory
San Francisco Ballet
San Francisco Film Society
San Francisco Symphony
San Jose Office of Cultural Affairs
San Jose Opera
Santa Barbara Museum of Art
Santa Cruz Arts Council
Shadow Light Productions
Sonoma Valley Museum of Art
Theatre Bay Area
Yerba Buena Center for the Arts
OPPOSE: None on file as of April 4, 2014.
FISCAL COMMITTEE: Senate Appropriations Committee
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