BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 2291
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          AB 2291 (Mendoza)
          As Amended August 13, 2008
          Majority vote
          |ASSEMBLY:  |64-10|(May 15, 2008)  |SENATE: |29-9 |(August 18,    |
          |           |     |                |        |     |2008)          |
           Original Committee Reference:    REV. & TAX.  

           SUMMARY  :  Authorizes the addition of the Municipal Shelter  
          Spay-Neuter Fund (Fund) checkoff to the personal income tax  
          (PIT) form upon the removal of another voluntary contribution  
          fund (VCF) from the form.  

           The Senate amendments  :

          1)Change the Fund's name from the "Low Cost/Free Spay-Neuter  
            Fund" to the "Municipal Shelter Spay-Neuter Fund".

          2)Provide that Fund monies will be allocated to the California  
            Department of Food and Agriculture (CDFA) for distribution of  
            grants to "eligible municipal shelters".  

          3)Define an "eligible municipal shelter" as a city or county  
            animal control agency or shelter that is current on its  
            reporting requirements to the State Department of Public  
            Health (DPH), Veterinary Public Health Section, and offers  
            spay and neuter services for dogs and cats owned by individual  
            members of the public.  

          4)Provide that grants shall be made available to provide spay  
            and neuter services and programs for dogs and cats.

          5)Provide that 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.  Further, if CDFA determines that  
            an eligible municipal shelter has misused its grant funds,  
            that shelter shall no longer be eligible for grants.  

          6)Provide that CDFA shall do all of the following:

             a)   Accept grant applications from eligible municipal  


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             b)   Process and approve, or reject all applications on a  
               first-come-first-served basis, in the following manner:

               i)     Eligible municipal shelters processing fewer than  
                 5,000 dogs and cats each year shall receive up to $7,500;

               ii)    Eligible municipal shelters processing between 5,000  
                 and 25,000 dogs and cats each year shall receive up to  
                 $15,000; and, 

               iii)   Eligible municipal shelters processing more than  
                 25,000 dogs and cats shall receive up to $22,500.

             c)   Make applications available to eligible municipal  
               shelters on the first day of the second calendar year after  
               the Fund first appears on the form.

          7)Provide that any grants distributed create an additional  
            funding source for spay and neuter services for eligible  
            municipal shelters and shall be used to supplement, not  
            supplant, other funding sources. 

          8)Require DPH, upon the written request of CDFA, to make  
            available information regarding whether a city or county  
            animal control agency or shelter is current on its reporting  

           EXISTING LAW  : 

          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  


                                                                  AB 2291
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           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Provided that all money transferred to the Fund, upon  
            appropriation by the Legislature, would be allocated as  

             a)   To the Franchise Tax Board (FTB) and the State  
               Controller for reimbursement of costs incurred in  
               administering the checkoff; and,

             b)   To CDFA for allocation to municipal shelters for the  
               purposes of providing low cost or free spay-neuter  

          2)Defined "municipal shelter" as a city or county animal control  
            agency or shelter.  

          3)Provided for the VCF's automatic repeal on either January 1 of  
            the fifth taxable year following the VCF's first appearance on  
            the PIT return or on January 1 of an earlier year, if FTB  
            estimated that the annual contribution amount would be less  
            than $250,000, or an adjusted amount for subsequent taxable  
          FISCAL EFFECT  :  FTB estimates annual revenue losses, resulting  
          from contribution deductions, to be around $15,000 annually.  

           COMMENTS  :  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."

          Analysis Prepared by  :  M. David Ruff / REV. & TAX. / (916)  

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