BILL NUMBER: AB 2291	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 18, 2008
	PASSED THE ASSEMBLY  AUGUST 19, 2008
	AMENDED IN SENATE  AUGUST 13, 2008
	AMENDED IN SENATE  AUGUST 4, 2008
	AMENDED IN SENATE  JUNE 18, 2008
	AMENDED IN ASSEMBLY  APRIL 21, 2008
	AMENDED IN ASSEMBLY  APRIL 8, 2008
	AMENDED IN ASSEMBLY  MARCH 28, 2008

INTRODUCED BY   Assembly Member Mendoza

                        FEBRUARY 21, 2008

   An act to add and repeal Article 5.7 (commencing with Section
18755) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2291, Mendoza. Taxpayer contributions: Municipal Shelter
Spay-Neuter Fund.
   Existing law, relating to the administration of personal income
taxes, authorizes individual taxpayers to contribute amounts in
excess of their tax liability for the support of specified funds or
accounts.
   This bill would allow taxpayers to designate on their tax returns
that a specified amount in excess of their tax liability be
transferred to the Municipal Shelter Spay-Neuter Fund, which would be
created by this bill. However, the bill would provide that a
voluntary contribution designation for this fund may not be added on
the tax return until another voluntary contribution designation is
removed from the return.
   This bill would provide that all money contributed to the fund
pursuant to these provisions, upon appropriation by the Legislature,
be allocated to the Franchise Tax Board and the Controller for
reimbursement of costs, as provided, and to the Department of Food
and Agriculture for distribution of grants to eligible municipal
shelters on a first-come-first-served basis, as specified, for the
purposes of providing low cost or free spay-neuter services and for
administrative costs. This bill would require eligible municipal
shelters, as defined, in order to receive a grant, to file an
application with the Department of Food and Agriculture, as
specified.
   This bill would provide that these voluntary contribution
provisions are repealed on either January 1 of the 5th taxable year
following the taxable year the fund first appears on the personal
income tax return, or on January 1 of an earlier calendar year, if
the Franchise Tax Board estimates that the annual contribution amount
will be less than $250,000, or an adjusted amount for subsequent
taxable years.


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

  SECTION 1.  Article 5.7 (commencing with Section 18755) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:

      Article 5.7.  Municipal Shelter Spay-Neuter Fund


   18755.  (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
Municipal Shelter Spay-Neuter Fund established by Section 18755.1.
That designation is to be used as a voluntary contribution on the tax
return.
   (b) The contributions shall be in full dollar amounts and may be
made individually by each signatory on a joint return.
   (c) A designation shall be made for any taxable year on the
initial return for that taxable year and once made is irrevocable. If
payments and credits reported on the return, together with any other
credits associated with the taxpayer's account, do not exceed the
taxpayer's liability, the return shall be treated as though no
designation has been made.
   (d) If an individual designates a contribution to more than one
account or fund listed on the tax return, and the amount available is
insufficient to satisfy the total amount designated, the
contribution shall be allocated among the designees on a pro rata
basis.
   (e) When another voluntary contribution designation is removed
from the tax return, the Franchise Tax Board shall revise the form of
the return to include a space labeled the "Municipal Shelter
Spay-Neuter Fund" to allow for the designation permitted. The form
shall also include in the instructions information that the
contribution may be in the amount of one dollar ($1) or more and that
the contribution shall be used to provide low cost or free
spay-neuter services associated with a municipal shelter in
California.
   (f) A deduction shall be allowed under Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10 for any contribution made
pursuant to subdivision (a).
   18755.1.  There is hereby established in the State Treasury the
Municipal Shelter Spay-Neuter Fund to receive contributions made
pursuant to Section 18755. The Franchise Tax Board shall notify the
Controller of both the amount of money paid by taxpayers in excess of
their tax liability and the amount of refund money that taxpayers
have designated pursuant to Section 18755 to be transferred to the
Municipal Shelter Spay-Neuter Fund. The Controller shall transfer
from the Personal Income Tax Fund to the Municipal Shelter
Spay-Neuter Fund an amount not in excess of the sum of the amounts
designated by individuals pursuant to Section 18755 for payment into
that fund.
   18755.2.  (a) All money transferred to the Municipal Shelter
Spay-Neuter Fund, upon appropriation by the Legislature, shall be
allocated as follows:
   (1) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board and
the Controller in connection with their duties under this article.
   (2) (A) To the Department of Food and Agriculture for distribution
of grants to eligible municipal shelters for the purposes of
providing low cost or free spay-neuter services. The department may
use up to 5 percent of the money allocated to municipal shelters for
administrative costs incurred in connection with the Municipal
Shelter Spay-Neuter Fund.
   (B) For the purposes of this article, "eligible municipal shelter"
means a city or county animal control agency or shelter that is
current on its reporting requirements to the State Department of
Public Health, Veterinary Public Health Section, and offers spay and
neuter services for dogs and cats owned by individual members of the
public. The State Department of Public Health shall, upon the written
request of the Department of Food and Agriculture, make available
information regarding whether a city or county animal control agency
or shelter is current on its reporting requirements pursuant to this
subparagraph.
   (b) (1) Grants distributed pursuant to this article shall be made
available for the purposes of providing spay and neuter services and
programs for dogs and cats owned by individual members of the public.

   (2) No grant shall be made, and no grant funds shall be used, to
spay or neuter any animal that is impounded by an eligible municipal
shelter. If the Department of Food and Agriculture determines that an
eligible municipal shelter has misused its grant funds, that shelter
shall no longer be eligible for grants distributed pursuant to this
article.
   (c) The Department of Food and Agriculture shall do all of the
following with respect to the distribution of grants:
   (1) Accept applications for grants from eligible municipal
shelters.
   (2) Process and approve, or reject all applications on a
first-come-first-served basis, in the following manner:
   (A) Eligible municipal shelters processing fewer than 5,000 dogs
and cats each year shall receive up to seven thousand five hundred
dollars ($7,500), if funds are available.
   (B) Eligible municipal shelters processing between 5,000 and
25,000 dogs and cats each year shall receive up to fifteen thousand
dollars ($15,000), if funds are available.
   (C) Eligible municipal shelters processing more than 25,000 dogs
and cats shall receive up to twenty-two thousand five hundred dollars
($22,500), if funds are available.
   (3) Make applications available to eligible municipal shelters on
the first day of the second calendar year after the Municipal Shelter
Spay-Neuter Fund first appears on the tax return.
   (d) In order to be eligible for grants authorized by this article,
eligible municipal shelters shall file an application with the
Department of Food and Agriculture, in the form and manner as
specified by the Department of Food and Agriculture.
   (e) Any grants distributed under this article create an additional
funding source for spay and neuter services and programs for
eligible municipal shelters and shall be used to supplement, not
supplant, other funding sources for these services and programs.
   18755.3.  (a) Except as otherwise provided in subdivision (b),
this article shall remain in effect only until January 1 of the fifth
taxable year following the first appearance of the Municipal Shelter
Spay-Neuter Fund on the tax return, and as of that date is repealed,
unless a later enacted statute, that is enacted before the
applicable date, deletes or extends that date.
   (b) (1) By September 1 of the second calendar year and by
September 1 of each subsequent calendar year that the Municipal
Shelter Spay-Neuter Fund appears on the tax return, the Franchise Tax
Board shall do all of the following:
   (A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
   (B) Provide written notification to the Department of Food and
Agriculture of the amount determined in subparagraph (A).
   (C) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contribution amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). The Franchise Tax Board
shall estimate the amount of contributions to be received by using
the actual amounts received and an estimate of the contributions that
will be received by the end of that calendar year.
   (2) If the Franchise Tax Board determines that the amount of the
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years
beginning on or after January 1 of that calendar year.
   (3) For purposes of this section, the minimum contribution amount
for a calendar year means two hundred fifty thousand dollars
($250,000) for the second calendar year after the first appearance of
the Municipal Shelter Spay-Neuter Fund on the personal income tax
return or the adjusted minimum contribution amount adjusted pursuant
to subdivision (c).
   (c) For each calendar year, beginning with the third calendar year
after the first appearance of the Municipal Shelter Spay-Neuter Fund
on the tax return, the Franchise Tax Board shall adjust, on or
before September 1 of that calendar year, the minimum estimated
contribution amount specified in subdivision (b) as follows:
   (1) The minimum estimated contribution amount for the calendar
year shall be an amount equal to the product of the minimum estimated
contribution amount for the prior September 1, multiplied by the
inflation factor adjustment as specified in paragraph (2) of
subdivision (h) of Section 17041, rounded off to the nearest dollar.
   (2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.
   (d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.