SCT S.B. 771 75(R)    BILL ANALYSIS


STATE FEDERAL & INTERNATIONAL RELATIONS
S.B. 771
By: Moncrief (Junell)
5-7-97
Committee Report (Unamended)


BACKGROUND

The Texas Commission on the Arts was created in 1965 to receive federal
funds and provide funding, assistance, leadership, and initiative in the
arts.  The commission administers a grant program using federal and state
funds for local arts projects and agencies and provides technical
assistance to arts organizations and individuals. 

Currently, the commission receives the majority, 81 percent, of its
funding from general revenue. Nearly 19 percent of the agency's current
budget is attributed to federal funds which are often used as leverage for
local and private support.  The 73rd Legislature created the Texas
Cultural Endowment Fund to provide a stable source of funding for the
commission through interest earnings.  
In its performance report to the 75th Legislature, the Legislative Budget
Board suggested that alternative funding sources should be identified for
the agency to compensate for unreliable federal funding and the early
status of the endowment fund.  This bill would allow the commission to
license for a fee the use of its name or logo for fundraising purposes.
In addition, S.B. 771 would authorize the commission to purchase and
resell certain items for the promotion of arts in Texas.   

PURPOSE

As proposed, S.B. 771 authorizes the Texas Commission on the Arts
(commission) to license for a fee the use of its name or logo to a private
vendor for the promotion of the arts in Texas, for fundraising for the
commissioner, or for any other lawful purpose of the commission.
Furthermore, this bill authorizes the commission to purchase and resell
certain items as it determines appropriate for the promotion of the arts
in Texas. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 444.025, Government Code, as follows:
 
Sec. 444.025. New heading:   DONATIONS; APPROPRIATIONS; LICENSING AND
SALES REVENUE; AUDIT.  Authorizes the Texas Commission on the Arts
(commission) to license for a fee the use of its name or logo and any
other artwork or graphics developed by the commission to a private vendor
for the promotion of the arts in Texas, for fundraising for the
commissioner, or for any other lawful purpose of the commission.  Sets
forth requirements regarding the use of licensed property and the
depositing of licensing fees. Authorizes the commission to purchase and
resell certain items as it determines appropriate for the promotion of the
arts in Texas.  Requires net profits from those sales to be deposited in
the Texas Commission on the Arts operating fund.  Makes conforming
changes. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Emergency clause.