BILL NUMBER: AB 1365	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 30, 2007
	AMENDED IN ASSEMBLY  APRIL 10, 2007

INTRODUCED BY   Assembly Member Karnette

                        FEBRUARY 23, 2007

   An act to add Section 7101.2 to the Revenue and Taxation Code,
relating to taxation, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1365, as amended, Karnette. California Arts Council: funding:
sales and use tax revenues.
   The Sales and Use Tax Law imposes a tax on the gross receipts from
the sale in this state of, or the storage, use, or other consumption
in this state of, tangible personal property, and requires that all
revenues derived from that tax, except as provided, be deposited in
the State Treasury to the credit of the Retail Sales Tax Fund.
Existing law establishes in state government the California Arts
Council and imposes various duties on the council to foster arts
development and to award grants and prizes to individuals and
organizations in the arts, as provided.
   This bill would require that  20% of  all revenues
derived from the payment of the tax imposed, as provided, in
connection with the sale, or the storage, use, or other consumption,
of a work of art, as defined,  and remitted to the State Board of
Equalization by the taxpayers engaged in specified lines of
business, as provided,  be allocated to the California Arts
Council to be used exclusively for specified purposes, as provided.
   By requiring that the revenues derived from the sales and use
taxes, as provided, be allocated to the California Arts Council, this
bill would make an appropriation.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7101.2 is added to the Revenue and Taxation
Code, to read:
   7101.2.   (a)    Notwithstanding
Section 7101,  20 percent of  all revenues, less refunds,
derived from the taxes  required to be paid to the state
pursuant to Chapter 2 and Chapter 3 of this part in connection with
the sale or use of a work of art   imposed pursuant to
Sections 6051 and 6201 and remitted to the board by the taxpayers
identified in the board's records as engaged in those lines of 
 business described in Codes 11 and 15 of the board's business
classification coding system or Codes 45110, 453920, and 453998 of
the North American Industry Classification System, provided that the
board has fully implemented use of the North American Industry
Classification System,  shall be deposited in the State Treasury
to be allocated to the California Arts Council to be used
exclusively for the purposes specified in Section 8753 of the
Government Code. 
   (b) For purposes of this section, "work of art" means a work of
art as defined in subdivision (c) of Section 6365.