BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 2291|
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                                 THIRD READING


          Bill No:  AB 2291
          Author:   Mendoza (D)
          Amended:  8/4/08 in Senate
          Vote:     21

           
           SENATE REVENUE & TAXATION COMMITTEE  :  5-2, 6/25/08
          AYES:  Oropeza, Cogdill, Alquist, Scott, Wiggins
          NOES:  Machado, Runner
          NO VOTE RECORDED:  McClintock

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  64-10, 5/15/08 - See last page for vote


           SUBJECT  :    Income tax check-off:  Municipal Shelter  
          Spay-Neuter Fund

           SOURCE  :     Author


           DIGEST  :    This bill adds the Municipal Shelter Fund as a  
          Voluntary Contributin on the Personal Income Tax Form.

           ANALYSIS  :    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  
                                                           CONTINUED





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          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 allows 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 will be created by this bill.   
          However, the bill provides 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 provides that all money contributed to the fund  
          pursuant to these provisions, upon appropriations by the  
          Legislature, be allocate 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 cost.  This bill requires eligible municipal  
          shelters, in order to receive a grant, to file an  
          application with the Department of Food and Agriculture, as  
          specified.

          This bill provides 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          The Franchise Tax Board estimates no fiscal impact for  
          fiscal year 2008-09 and revenue losses of less than  







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          $150,000 in fiscal year 2009-10 and 2010-11.

           SUPPORT  :   (Unable to re-verify at time of writing)

          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.

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          this bill creates the Municipal 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 health 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  
          can range from $200 to $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" allows willing Californians to  
          donate money to help increase access to Spay-Neuter  
          services for low income Californians.


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Aghazarian, Arambula, Beall, Berg, Brownley,  
            Caballero, Charles Calderon, Carter, Cook, Coto, Davis,  
            De La Torre, De Leon, DeSaulnier, Duvall, Emmerson, Eng,  
            Evans, Feuer, Fuentes, Fuller, Furutani, Galgiani,  
            Garcia, Hancock, Hayashi, Hernandez, Horton, Houston,  
            Huffman, Jeffries, Jones, Keene, Krekorian, Laird, Leno,  
            Levine, Lieber, Lieu, Ma, Maze, Mendoza, Nava, Nunez,  
            Parra, Plescia, Portantino, Price, Sharon Runner, Ruskin,  
            Salas, Saldana, Silva, Smyth, Solorio, Spitzer,  
            Strickland, Swanson, Torrico, Tran, Villines, Wolk, Bass
          NOES:  Anderson, Berryhill, Blakeslee, DeVore, Gaines,  
            Huff, La Malfa, Nakanishi, Niello, Walters







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          NO VOTE RECORDED:  Benoit, Dymally, Garrick, Karnette,  
            Mullin, Soto


          DLW:do  8/6/08   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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