BILL ANALYSIS
SENATE REVENUE & TAXATION COMMITTEE
Senator Jenny Oropeza, Chair
AB 2291 - Mendoza
Amended: June 18, 2008
Hearing: June 25, 2008 Fiscal: YES
SUMMARY: Adds the Low Cost/Free Spay-Neuter Fund as a
Voluntary Contribution on the Personal Income Tax
Form
EXISTING LAW allows taxpayers to contribute (not tax
liabilities) to one or more of the 11 voluntary
contribution funds listed on the state personal income tax
return.
Each voluntary contribution fund must meet a minimum
annual contribution of $250,000. The minimum contribution
amount does not apply to the California Seniors Special
Fund, the California Firefighters Memorial Fund, and the
California Peace Officer Foundation Memorial Fund. This
minimum contribution amount is adjusted annually for
inflation for all voluntary contribution funds, except for
those referenced above, and the California Fund for Senior
Citizens. Except for the California Seniors Special Fund,
each voluntary contribution fund has a sunset date.
THIS BILL creates the Low Cost/Free Spay-Neuter Fund
as a voluntary contribution on the PIT form. This fund has
a sunset date of fifth taxable year after which the fund
appears on the PIT form. Additionally, this fund has a
minimum contribution amount of $250,000, which is adjusted
annually for inflation. The bill repeals the fund if its
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contributions fail to meet the minimum contribution amount.
The bill provides for the reimbursement of the costs
incurred by the Franchise Tax Board to administer fund.
Lastly, the bill provides a grant process for the
Department of Food and Agriculture to distribute funds to
eligible municipal animal shelters. An eligible municipal
shelter is any city or county animal control agency or
shelter 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. Special
consideration and priority shall be given to eligible
shelters that offer free or low cost spay and neuter
services programs targeted to low to moderate income
communities and individuals.
FISCAL EFFECT:
The Franchise Tax Board (FTB) estimates no fiscal
impact for fiscal year 2008-09 and revenue losses of less
than $150,000 in fiscal years 2009-10 and 2010-11.
COMMENTS:
A. Purpose of the Bill
According to the author, "AB 2291 would create the
"Low Cost/Free Spay-Neuter Fund" and place a check-off box
on the State Income Tax Form for taxpayers to voluntarily
donate to this fund. Each year almost one million healthy
dogs and cats are born in California. Many of these
animals find themselves without a home and are
unfortunately euthanized. One way to help ease this
problem is by encouraging people to spay or neuter their
animals. We know that one major hurdle to this effort is
the cost of Spay-Neuter services. Currently, sterilization
of cats can range from $60 to $150 while the costs for dogs
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can range from $200 - $450. For lower income Californians
this is a difficult expenditure. Studies show the primary
reasons people do not sterilize their pets are cost and
lack of access to spay/neuter services. The higher the
cost, the lower the rate of compliance will be. The "Low
Cost/Free Spay-Neuter Fund" would allow willing
Californians to donate money to help increase access to
Spay-Neuter services for low income Californians."
B. Grants
AB 2291 provides grants to city and county animal
shelters. To be eligible for the funds, a municipal
shelter must offer spay and neuter services to individual
members of the public. Priority and special consideration
is given to those shelters that offer free or low cost spay
and neuter programs targeted to low-to moderate-income
communities and individuals. Shelters may not use any
grant funds to spay or neuter any impounded animal.
C. Enough Room?
Currently there are eleven voluntary contribution
funds. In addition to this bill, three other bills create
new voluntary contribution funds and three extend a sunset.
Those other bills are as follows:
AB 1812 (Arambula), extends the sunset date for the
California Firefighters' Memorial Fund and the California
Peace Officers Memorial Fund now pending in Senate
Appropriations
AB 1935 (Fuller), creates the California Ovarian
Research Fund now pending in Senate Appropriations
AB 2518 (Torrico), creates the California Cancer
Research Center Fund now
pending in Senate Appropriations
AB 3016 (Cook) modifies and extends the California
Military Family Relief Fund now pending in Senate Veterans'
Affairs
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SB 1101 (Cedillo), extends the sunset on the Emergency
Food Assistance
Program Fund now pending in Assembly Appropriations
SB 1502 (Steinberg), creates the ALS/Lou Gehrig fund
now is pending in the Assembly Revenue and Taxation
Committee
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The Franchise Tax Board can accommodate the new
voluntary contribution funds and add the California Cancer
Research Fund. Furthermore, AB 2291 provides queuing
language to ensure that the new voluntary contribution may
not be added until another voluntary contribution is
removed from the form.
D. Many Good Causes
In the past, the Committee has expressed concern that
countless worthy causes may be funded by tax check-offs.
The Committee has stated that the current check-off system
forces them to choose between worthy charities and
non-profits for a spot on the tax return. The current
system remains subjective and is limited to those
organizations that can convince the Legislature to include
them on the form. Additionally, taxpayers may currently
contribute portions of their refunds to worthy
organizations. Taxpayers may also claim a deduction for
charitable contributions. The Committee may wish to
consider whether the state should use the tax code to
encourage contributions to certain charitable
organizations.
E. 2007 Check-Offs
Contributions to voluntary funds in 2007 were as
follows:
-----------------------------------------------------
| | |
| Voluntary Contribution | 2007 Contributions |
| Fund | |
| | |
|--------------------------+--------------------------|
| | |
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| California Alzheimer's | $485,401 |
| Research Fund | |
| | |
|--------------------------+--------------------------|
| | |
| California Breast Cancer | $571,855 |
| Research Fund | |
| | |
|--------------------------+--------------------------|
| | |
| California Firefighters' | $213,236 |
| Memorial Fund | |
| | |
|--------------------------+--------------------------|
| | |
| California Fund for | $264,645 |
| Senior Citizens | |
| | |
|--------------------------+--------------------------|
| | |
| California Peace Officer | $166,602 |
| Memorial Foundation Fund | |
| | |
|--------------------------+--------------------------|
| | |
|California Sea Otter Fund | $42,956 |
| | |
|--------------------------+--------------------------|
| | |
| California Seniors | $47,679 |
| Special Fund | |
| | |
|--------------------------+--------------------------|
| | |
|Emergency Food Assistance | $391,023 |
| Program Fund | |
| | |
|--------------------------+--------------------------|
| | |
| Rare and Endangered | $572,043 |
| Species Preservation | |
| Program | |
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| | |
|--------------------------+--------------------------|
| | |
| State Children's Trust | $499,827 |
| for the Prevention of | |
| Child Abuse | |
| | |
|--------------------------+--------------------------|
| | |
| California Military | $260,878 |
| Family Relief Fund | |
| | |
-----------------------------------------------------
Support and Opposition
Support:California Federation for Animal Legislation
California Outdoor Heritage Alliance
South Bay Collie Fanciers, Inc.
United Animal Nations
Pembroke Welsh Corgi Club of Southern
California
Golden Gate Pembroke Welsh Corgi Fanciers, Inc.
Working Riensenschnauzer Federation
Atherton Acres
San Lorenzo Dog Training Club, Inc.
Animal Switchboard
American Society for the Prevention of Cruelty
to Animals
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American Kennel Club
California Animal Association
Northern California Pug Club
Irish Terrier Club of America
Yorkshire Terrier Club of Los Angeles
Cairn Terrier Club of Northern California
NORCAL Golden Retriever Club
Redwood Belgian Tervuren Fanciers
Portuguese Water Dog Club of Northern
California
California Outdoor Heritage Alliance
California Animal Association
7 Individuals
Oppose:Animal Issues Movement
PetPAC
---------------------------------
Consultant: Brendan P. Hughes
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