Portantino’s Nonprofit Theater Bill Passes Senate Floor
For Immediate Release: May 26, 2022
Contact: Lerna Shirinian, (818) 409-0400
Portantino’s Nonprofit Theater Bill Passes Senate Floor
Sacramento, CA - Senate Bill 1116, a measure introduced by Senator Anthony J. Portantino (D – La Cañada Flintridge) which creates a payroll fund to support small nonprofit performing arts venues (SNPAOs), passed the Senate Floor.
“Our vibrant arts community drives much of our creative economy. Despite strong community support, neighborhood theaters have suffered from under-investment and pandemic shutdown impacts,” stated Senator Portantino. “Investment in the arts helps all generations of Californians. In many cases, they introduce young people to the arts and create opportunities for excellent careers with living wages. That’s why I introduced SB 1116 to create and sustain our creative work force.”
Prior to the pandemic, California ranked 28th in state arts funding on a per capita basis. This chronic long-term underfunding of the industry amounted to a double-hit when the pandemic shut down much of the live arts. Johns Hopkins University reports that, as of October 2021, the percentage of job losses at nonprofit arts organizations remains more than three times worse than the average of all nonprofits.
SB 1116 establishes the Equitable Payroll Fund (EPF), a grant program designed to support live performances – and workers directly – by providing substantial reimbursements of payroll expenses. This program will support jobs for anyone hired as an employee by a SNPAO, including both production and non-production employees and administrative staff. It does not apply to independent contractors who qualify as such under the ABC test set out in the Dynamex decision and codified by AB5.
The EPF will begin to stabilize SNPAOs immediately; preventing more closures and helping these organizations grow quickly to self-sustainability. The EPF will provide the greatest percent reimbursement to the smallest organizations. Since labor costs in the performing arts are relatively flat, these historically underfunded organizations are the hardest hit and most at risk. As SNPAOs grow, the percentage of payroll expenses that is reimbursed decreases as organizations are better able to absorb these costs. When an SNPAO reaches $2M, they graduate out of the program.
“We are grateful to Senator Portantino for his leadership on this issue. Small community theatres are in desperate need of this bill as it will allow us to support theatre artists with good paying jobs and creates a sustainable path forward,” stated Beatrice Casagrán, Producing Artistic Director at Ophelia’s Jump Productions, and a member of Actors’ Equity Association and the Society of Directors and Choreographers.
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