WAACNewsletter
Volume 5, Number 1, March 1983, pp.9-12

Legislative Update

Anonymous

A workshop entitled "A Legislative Update" was held on November 15, 1982, presented by Bay Area Lawyers for the Arts. The leader of the workshop was Professor Thomas M. Goetzl of the Golden Gate University School of Law, the author of the original draft of the California Art Preservation Act. The session followed a luncheon honoring California Senator Alan Sieroty, who is retiring.

All who attended the workshop received a copy of the booklet, Legislative Masterpieces: A Guide to California Arts Legislation, published by Bay Area Lawyers for the Arts. The booklet describes six different laws that have recently come into effect in California:

The booklet, printed in 1980, is available for $3.50 from B.A.L.A., Fort Mason, San Francisco, CA 94123.

Professor Goetzl discussed briefly the following measures that have either been recently enacted or defeated:

    1. ARTS EDUCATION:
    Exemplary Arts
    Ed. code 8800
    et. seq.
    Summer School for the Arts;             SB 1758
    Ca. Museum of Afro-American
    History & Culture

    2. HEALTH:
    Toxic Substances Labeling               SB 1754 (defeated)

    3. PUBLIC FINANCE:
    Ca. Percentage for Art Program          SB 1753 (defeated)

    4. ARTIST DEALER:
    Consignment Disclosure Pen. C. 536a

    5. PROPERTY RIGHTS:
    Residual Rights                         SB 1937
    Works for Hire                          SB 1755
    (Amends 335.5 of Labor code,
    amends 621 and adds
    686 of Uneml. Ins. code)
    Art Preservation                        SB 1757

[editor's note: apparent omission in original text]
works in stained glass as well as paintings, sculpture, and
original drawings; allows a non-profit art organization to act as
a representative of the public to protect works of art in cases
where the artist does not initiate action)

Resale Royalty                          SB 1759 & 3299
(Amends 986 of Civil Code: gives the dealer a 10 year exemption
of payment of royalties for subsequent sale of works originally
purchased for his own private collection.)

6. CONSUMER PROTECTION: Fine Art        SB 1938
(Amends 1740 to include photographs and other multiples as Fine
Prints)

In the final half hour, the session opened up to questions from the audience, which varied widely in scope. He suggested that any suggestions for areas where legislation may be needed or altered could be forwarded to the appropriate committee or interested legislator through the Bay Area Lawyers for the Arts.

Anita Noennig

Final Report on 1982 State Arts Legislation

AB 21 (Vasconcellos)

Appropriates $11.7 million for the California Arts Council's 1982-83 programs and administration. Passed the Legislature; signed into law 6/30/82 (Chapter 326).

AB 1257 (Young)

Establishes a state licensing system or auctioneers, including art auctioneers. Passed the Legislature; signed into law 9/27/82 (Chapter 1499).

AB 2296 (Baker)

Extends the time within which legal action could be brought for the theft of art or artifacts held by a public or nonprofit institution from the current 3 years from the date of the theft to 3 years from discovery of the whereabouts of the art. Passed the Legislature; signed into law 6/30/82 (Chapter 340)

AV 3117 (Farr)

Would create the State Cultural Affairs Agency consisting of 3 cultural departments and 9 agencies, including the California Arts Council. Referred by the Assembly Government Organization Committee for interim study during the Fall of 1982.

AB 3120 (Farr)

Would have created the Arts Indemnification Program, under which the State would insure artworks to be exhibited in California. Defeated by Assembly Government Organization Committee.

AB 3299 (Chacon)

Includes works of art in glass as a fine art form under several existing state art laws, including the Resale Royalties Act and the Art Preservation Act. Passed the Legislature; signed into law on 9/30/82 (Chapter 1609).

AB 3240 (Farr)

Would have allowed heirs to pay California inheritance taxes with works of art. All inheritance taxes were repealed by passage of Proposition 6 on June 8th.

AB 3483 (Katz)

Conforms California law to the 1976 Federal copyright revisions. Passed the Legislature; signed into law 8/24/82 (Chapter 574).

SB 11 (Maddy)

Beginning in 1984 allows taxpayers who take a standard deduction their state tax returns to also deduct charitable contributions to non-profit organizations, including arts organizations. Passed the Legislature; signed into law 9/30/82 (Chapter 1604).

SB 1686 (Sieroty)

Allows nonprofit institutions to make historically and culturally important sound recordings available to the public by exempting these recordings from current law that prohibits reproduction of sound recordings without consent of the copyright owner. Passed the Legislature; signed into law 9/10/82 (Chapter 824).

SB 1753 (Sieroty)

World have enacted a 2% for art program to place art in public places owned by the State. Passed the Senate Govt. Org. Committee; defeated by the Senate Finance Committee.

SB 1754 (Sieroty)

Would have required manufacturers of toxic materials used by artists to clearly label their products. Defeated on the Senate Floor.

SB 1755 (Sieroty)

Grants to commercial artists working under "work for hire" arrangements certain rights provided to employees, including workers' compensation, unemployment, and disability insurance. Passed the Legislature; signed into law 9/23/82 (Chapter 1322).

SB 1756 (Sieroty)

Would have extended to artifacts the existing law that exempts from sales tax works of art purchased by California museums. Passed the Senate and Assembly Revenue & Taxation Comm; defeated by the Assy. Ways & Means Committee.

SB 1757 (Sieroty)

Amends the California Art Preservation Act to allow nonprofit arts organizations as representatives of the public to bring lawsuits to protect important works of art. Passed the Legislature; signed into law 9/28/82 (Chapter 1516).

SB 1758 (Sieroty)

Authorizes creation of a State Summer High School for the Arts. Passed the Legislature; signed into law 9/10/82 (Chapter 898).

SB 1759 (Sieroty)

Amends the California Resale Royalties Act, extending the royalty right to an artists' heirs, allowing artists to collect attorney's fees in a successful lawsuit and to transfer their right to collect a royalty, and exempting from the royalty provision the first resale to the public by an art dealer who has purchased an artwork directly from the artist. Passed the Legislature; signed into law 9/30/82 (Chapter 1601).

SB 1760 (Sieroty)

Would have increased from 20% to 30% of income the maximum amount of charitable contributions to nonprofit organizations, including arts organizations, that may be deducted in any year for state income tax purposes. Passed the Senate Rev. & Tax Committee; defeated by the Senate Finance Committee.

SB 1937 (Sieroty)

Retains for commercial artists creating art under a "work for hire" arrangement the ownership rights in the original art, unless that right is expressly transferred in writing. Passed the Legislature; signed into law 9/22/82 (Chapter 1319).

SB 1938 (Sieroty)

Conforms California's 1970 law to a 1981 New York Law that requires artists and dealers to disclose to purchasers at the time of sale specific information regarding limited edition fine art.

Passed the Legislature; signed into law 9/22/82 (Chapter 1320).

Furnished by Larry Briskin & Associates.

Status of Federal Museum-Related Legislation at the Close of the 97th Congress

Bill Description Status

HR 4035

Appropriates FY 1982 funds for the Department of Interior and Related Agencies. Provides $143.04 million for NEA, $130.5 million for NEH, $11.5 million for IMS and $25.4 million for Historic Preservation. Passed by Congress and signed into law 12/23/81 (PL 97-100)

HR 4034

Appropriates FY 1982 funds for the Department of Housing and Urban Development. Provides $969.6 million for NSF with $21.12 million for science education. Passed by Congress and signed into law 12/23/81 (PL 97-101)

HR 7356

Appropriates FY 1983 funds for the Department of Interior and Related Agencies. Provides $143.875 million for NEA, $130.06 million for NEH, $10.8 million for IMS and $26 million for Historic Preservation. Passed by Congress and signed into law 12/30/82 (PL 97-394)

HR 6956

Appropriates FY 1983 funds for the Department of Housing and Urban Development. Provides $1.092 billion for NSF with $30 million for science education. Passed by Congress and signed into law 9/30/81 (PL 97-272)

HR 6863

1982 Supplemental Appropriations bill. Contains administrative funds for NEA and the Smithsonian. Permits $720,000 in FY 1982 IMS funds to carry forward to fiscal 1983 Passed by Congress and signed into law 9/10/82 (PL 97-257)

HR 3982
S 1377

Omnibus Reconciliation Act of 1981. Authorizes FY 1982, FY 1983, and FY 1984 appropriations of $119.3 million to NEA, $113.7 million to NEH, 9.6 million to IMS and "not less than $30 million" to Historic Preservation. Passed by Congress and signed into law 8/13/81 (PL 97-35)

HR 1520
S 1200

Would authorize appropriations for the activities of NSF at a level of $1.044 billion with up to $20.4 million for science education.

HR 5842
HR 5991

National Science Foundation Authorization Act for Fiscal Years 1982 and 1983. Would provide $1.074 billion for NSF with $35 million for science education. Passed in the House 5/19/81. Died in committee in the Senate. at $782,000 for FY 1983 and at $1 million for FY 1984 and 1985. Passed in the Senate. Died in committee in the House.

S 1834
HR 4979

Would amend the IRS Code of 1954 to permit a shareholder of corporate stock to direct payment of a dividend to a tax-exempt organization. Portion donated will not be treated as income for the donor, and the corporation must match the donation. In turn, the corporation will be eligible for a double-deduction of the amount matching the shareholder's contribution. Died in committee.

HR 5164

Would amend the IRS Code of 1954 to provide that certain museums will not be treated as private operating foundations. Died in committee

S 2225
S 851
S 852
HR 148
HR 444
HR 2823

Would amend the IRS Code of 1954 to allow artists to deduct the fair market value of their works that they donate as a charitable contribution. Died in committee.

S 1035
HR 1042
HR 3347
HR 4299

Would provide taxpayers the opportunity to make contributions, in conjunction with the payment of their federal income tax, to the National Foundation on the Arts and Humanities. Died in committee.

HR 4242

The Economic Recovery Tax Act of 1981. Provides a charitable deduction for taxpayers who do not itemize their deductions (provision scheduled to phase out by 12/23/86); an increase in the unified credit for estate and gift taxes; a tax credit for rehabilitation expenditures; a charitable estate and gift tax deduction for a transfer of copyrightable work of art to a qualified charitable organization, whether or not copyright itself is simultaneously transferred to the charitable organization; a corporate deduction for contributions to charity of up to 10 percent of the corporation's taxable income, effective 12/31/81. Passed by Congress and signed into law 8/31/81 (PL 97-34).

HR 4566
HR 4566
S 1723
S 2963

Implements the UNESCO Convention on the Means of Prohibiting and Preventing the Illicit Import, Export and Transfer of Cultural Property. Passed by Congress and signed into law 1/12/83 (PL 97- 446).

HR 1688

Would amend the National Historic Preservation Act to prohibit the demolition or substantial alteration of properties designated as National Historic Landmarks. Died in Committee.

HR 6089
S 533
HR 1938

National Museum Act Reauthorization. Would reauthorize appropriations for NMA for three years, fiscal 1983 through 1985, Public Buildings Act of 1981. Directs the administrator of the Public Building Service to acquire works of living American artists, develop U.S. cultural heritage exhibits and commission works by American artists for exhibitions in federal government properties, under the jurisdiction of the General Services administration.

Passed in the Senate 5/6/81. Died in committee in the House.

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