BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 564|
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                                 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          form for five years unless it is repealed earlier for 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 
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          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' 

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          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                    |
           |                            |                           |

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           |----------------------------+---------------------------|
           |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.  

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          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, 

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            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

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