BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 564| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 564 Author: Smyth (R), et al. Amended: 6/30/11 in Senate Vote: 21 SENATE GOVERNANCE & FINANCE COMMITTEE : 8-1, 6/29/11 AYES: Wolk, DeSaulnier, Fuller, Hancock, Hernandez, Kehoe, La Malfa, Liu NOES: Huff SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 74-2, 5/31/11 - See last page for vote SUBJECT : Income taxes: voluntary contributions: Municipal Shelter Spay-Neuter Fund SOURCE : Concerned Dog Owners of California Humane Society of the United States DIGEST : This bill reestablishes the Municipal Shelter Spay-Neuter Fund. The fund will be added to the income tax form when another voluntary contribution funds is removed or as soon as space is available and shall remain on the form for five years unless it is repealed earlier for failing to meet the minimum contribution amount. ANALYSIS : Existing state law allows taxpayers to contribute money to one or more of 15 voluntary CONTINUED AB 564 Page 2 contribution funds (VCFs) by checking a box on their state income tax return. California law requires contributions made through check-offs to be made from taxpayers' own resources and not from their tax liability, as is possible on federal tax returns. Check-off amounts may be claimed as charitable contributions o taxpayers' tax returns during the subsequent year. This bill: 1.Reestablishes the Municipal Shelter Spay-Neuter Fund. The fund will be added to the income tax form when another VCF is removed or as soon as space is available and shall remain on the form for five years unless it is repealed earlier for failing to meet the minimum contribution amount. 2.Defines "eligible municipal shelter" and authorizes the Department of Food and Agriculture to distribute grants to eligible municipal shelters for the purposes of providing low cost or free spay-neuter services and programs for dogs and cats owned by individual members of the public. The grants are on a first-come-first-served basis and allocated based on the number of cats and dogs the eligible municipal shelter processes each year. The grant funds cannot be used to spay or neuter any animal that is impounded. 3.Encourages all persons who prepare state income tax returns to inform their clients, in writing prior to completion of the return, that they may make a contribution to any voluntary contribution check-off on the return. Comments The Municipal Shelter Spay-Neuter Fund first appeared on the 2008 personal income tax return but was removed from the 2010 return for failing to meet its minimum contribution requirement amount of $250,000 in the second year of its existence. Contributions of $210,029 and $194,462 were made to the fund in calendar years 2009 and 2010, respectively. The fund's original repeal date was January 1, 2013.ugh check-offs to be made from taxpayers' CONTINUED AB 564 Page 3 own resources and not from their tax liability, as is possible on federal tax returns. Check-off amounts may be claimed as charitable contributions on taxpayers' tax returns during the subsequent year. Following is a list of 2011 check-offs and contribution amounts received in 2010: -------------------------------------------------------- |Alzheimer's Disease/Related |$426,417 | |Disorders Fund | | | | | |----------------------------+---------------------------| |Arts Council Fund |Initial Tax Return 2010 | | | | |----------------------------+---------------------------| |CA Breast Cancer Research |$519,728 | |Fund | | | | | |----------------------------+---------------------------| |CA Cancer Research Fund |$275,587 | | | | |----------------------------+---------------------------| |CA Firefighters' Memorial |$207,455 | |Fund | | | | | |----------------------------+---------------------------| |CA Fund for Senior Citizens |$296,144 | | | | |----------------------------+---------------------------| |CA Peace Officer Memorial |$135,250 | |Foundation Fund | | | | | |----------------------------+---------------------------| |CA Police Activities League |Initial Tax Return 2010 | |(CALPAL) Fund | | | | | |----------------------------+---------------------------| |CA Sea Otter Fund |$263,543 | | | | |----------------------------+---------------------------| |CA Seniors Special Fund |$59,192 | | | | CONTINUED AB 564 Page 4 |----------------------------+---------------------------| |CA Veterans Homes Fund |Initial Tax Return 2010 | | | | |----------------------------+---------------------------| |Emergency Food for Families |$487,333 | |Fund | | | | | |----------------------------+---------------------------| |Rare & Endangered Species |$578,215 | |Preservation Program | | | | | |----------------------------+---------------------------| |Safely Surrendered Baby |Initial Tax Return 2010 | |Fund | | | | | |----------------------------+---------------------------| |State Children's Trust for |$448,081 | |the Prevention of Child | | |Abuse | | | | | -------------------------------------------------------- Related Legislation SB 164 (Simitian), 2011-12 Session, extends the repeal dates of both the State Children's Trust Fund for the Prevention of Child Abuse and the Rare and Endangered Species Preservation Program from January 1, 2013 to January 1, 2018. SB 583 (Vargas), 2011-12 Session, reestablishes the ALS/Lou Gehrig's Disease Research Fund. SB 803 (DeSaulnier), 2011-12 Session, creates a VCF designation on the personal income tax form for taxpayers to contribute to California Youth Leadership Project. SBX1 3 (LaMalfa), 2011-12 Session, creates a VCF designation on the personal income tax form, the Help Our State Fund, for taxpayers to contribute to the General Fund. AB 233 (Hall), 2011-12 Session creates a VCF designation on the personal income tax form for taxpayers to contribute to the California YMCA Youth and Government Fund. CONTINUED AB 564 Page 5 AB 764 (Swanson), 2011-12 Session, creates a VCF designation on the personal income tax form for taxpayers to contribute to the Child Victims of Human Trafficking Fund. AB 971 (Monning), 2011-12 Session, reestablishes the California Sea Otter Fund. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/15/11) Concerned Dog Owners of California (co-source) Humane Society of the United States (co-source) Laborers' International Union of North America Locals 777 and 792 7th Generation Advisors ARGUMENTS IN SUPPORT : The author's office states that more than 830,000 dogs and cats entered animal shelters in California in 2009. The staggering amount of animals in need of support from California shelters places a significant financial burden on local facilities, costing them an estimated quarter of a billion dollars annually. Many municipally-run shelters rely on donations to support program including voluntary spay and neuter efforts. By placing the Municipal Shelter Spay-Neuter Fund on the tax form, Californians will be given an opportunity to support the needs of shelters by making voluntary contributions to this new fund." ASSEMBLY FLOOR : AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Cook, Davis, Dickinson, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, CONTINUED AB 564 Page 6 Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NOES: Halderman, Jones NO VOTE RECORDED: Conway, Donnelly, Gorell, Knight AGB:do 8/16/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED