BILL ANALYSIS
AB 2291
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Date of Hearing: April 14, 2008
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Charles Calderon, Chair
AB 2291 (Mendoza) - As Amended: April 8, 2008
Majority vote. Fiscal committee.
SUBJECT : Taxpayer contributions: Low Cost/Free Spay-Neuter
Fund
SUMMARY : Authorizes the addition of the Low Cost/Free
Spay-Neuter Fund (Fund) checkoff to the personal income tax
(PIT) form upon the removal of another voluntary contribution
fund (VCF) from the form. Specifically, this bill :
1)Provides for the establishment of the Fund in the State
Treasury.
2)Provides that all moneys transferred to the Fund, upon
appropriation by the Legislature, shall be allocated as
follows:
a) To the Franchise Tax Board (FTB) and the State
Controller for reimbursement of costs incurred in
administering the checkoff; and
b) To the appropriate state department as established by
the Department of Food and Agriculture for allocation to
municipal shelters for the purposes of providing low cost
or free spay-neuter services.
3)Defines "municipal shelter" as a city or county animal control
agency or shelter.
4)Provides for the VCF's automatic repeal on either January 1 of
the fifth taxable year following the taxable year the VCF
first appears on the PIT return or on January 1 of an earlier
year, if FTB estimates that the annual contribution amount
will be less than $250,000, or an adjusted amount for
subsequent taxable years.
EXISTING LAW :
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1)Allows taxpayers to designate on their PIT returns a
contribution to any of 11 VCFs.
2)Except for the California Seniors Special Fund, each VCF has a
specific sunset date.
3)Except for the California Seniors Special Fund, the California
Firefighters' Memorial Fund, and the California Peace Officer
Foundation Memorial Fund, each VCF must meet a minimum annual
contribution amount to remain in effect.
4)Except for the California Fund for Senior Citizens, each of
the VCF minimum contribution amounts is adjusted annually for
inflation.
FISCAL EFFECT : FTB estimates annual revenue losses, resulting
from contribution deductions, to be around $15,000 annually.
Proposition 98 Fiscal Effect : Minimal
COMMENTS :
1)The author notes, "Each year almost 1 million healthy dogs and
cats are born in California. Unfortunately many of these
animals find themselves on the streets without a home or
owner. Eventually most are placed in animal shelters." The
author goes on to note, "Education has been a large factor but
so has the cost. Sterilization of cats ranges fro[m] $60 to
$150 while the costs for dogs range from $200 - $450. For
lower income Californians this is a difficult expenditure."
2)Supporters note that, "Because indiscriminate and accidental
dog and cat breeding leads to millions of unwanted and
abandoned animals each year in the United States, safe,
effective and permanent dog and cat birth control is
necessary."
3)Committee staff note:
a) This bill provides that Fund monies shall be allocated
to the "appropriate state department as established by the
Department of Food and Agriculture for allocation to
municipal shelters for the purposes of providing low cost
or free spay-neuter services." This raises the following
questions:
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i) Why is the Department of Food and Agriculture tasked
with identifying the appropriate state department to
administer this program? Would it not be better for the
Legislature to designate the department that will be
tasked with allocating funds?
ii) Will the "appropriate state department" be entitled
to use Fund monies for costs associated with advertising
and administering this program?
iii) Who determines what constitutes "low-cost"
spay-neuter services?
b) There are at least four other bills in the legislative
process that would add new VCFs to the PIT return:
i) AB 1812 (Arambula) - Fire Safety Fund
Pending in Assembly Committee on Government Organization
ii) AB 1935 (Fuller) - California Ovarian Cancer
Research Fund
Pending in Assembly Committee on Appropriations
iii) AB 2518 (Torrico) - Northern California Cancer
Research Fund
Pending in Assembly Committee on Appropriations
iv) SB 1502 (Steinberg) - Amyotrophic Lateral Sclerosis
(ALS) Fund
Pending in Senate Revenue and Taxation Committee.
FTB staff has indicated that there is enough space on the
existing tax forms to accommodate all of these VCFs, if
necessary.
REGISTERED SUPPORT / OPPOSITION :
Support
American Society for the Prevention of Cruelty to Animals
Atherton Acres
California Outdoor Heritage Alliance
Golden Gate Pembroke Welsh Corgi Fanciers, Inc.
San Lorenzo Dog Training Club, Inc.
AB 2291
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Working Riesenschnauzer Federation
2 individual
Opposition
None on file
Analysis Prepared by : M. David Ruff / REV. & TAX. / (916)
319-2098