BILL NUMBER: AB 485 CHAPTERED
BILL TEXT
CHAPTER 557
FILED WITH SECRETARY OF STATE OCTOBER 7, 2015
APPROVED BY GOVERNOR OCTOBER 7, 2015
PASSED THE SENATE SEPTEMBER 9, 2015
PASSED THE ASSEMBLY SEPTEMBER 10, 2015
AMENDED IN SENATE SEPTEMBER 4, 2015
AMENDED IN SENATE JUNE 19, 2015
AMENDED IN ASSEMBLY APRIL 22, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Williams
(Principal coauthor: Senator Allen)
FEBRUARY 23, 2015
An act to add and repeal Article 23 (commencing with Section
18901) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 485, Williams. Personal income taxes: voluntary contributions:
Prevention of Animal Homelessness and Cruelty Fund.
Existing law allows an individual taxpayer to contribute amounts
in excess of his or her personal income tax liability for the support
of specified funds.
This bill would allow an individual to designate on his or her tax
return that a specified amount in excess of his or her tax liability
be transferred to the Prevention of Animal Homelessness and Cruelty
Fund, which would be created by this bill. The bill would require the
Franchise Tax Board to revise the tax return form to include a space
for the designation of contributions to the fund when another
voluntary designation is removed from the form or there is space,
whichever occurs first.
This bill would require money contributed to the fund, upon
appropriation by the Legislature, to be allocated to the Franchise
Tax Board and the Controller for reimbursement of costs, as provided,
and to the Department of Food and Agriculture for the development of
a mechanism to provide ongoing public awareness through activities
that will promote the charitable tax deduction for the fund and seek
continued contributions and the distribution of grants on a
competitive basis to, among others, a city, county, or city and
county animal control agency or shelter, as specified, for the
purpose of supporting spay and neuter activities by that entity to
prevent and eliminate cat and dog homelessness.
The bill would provide that these provisions would remain in
effect only until January 1 of the 5th taxable year following the
first appearance of the Prevention of Animal Homelessness and Cruelty
Fund on the tax return, or January 1, 2022, whichever occurs first,
but would further provide for an earlier repeal if the Franchise Tax
Board determines that the amount of contributions estimated to be
received during a calendar year will not at least equal the minimum
contribution amount, as defined, for that calendar year, in which
case these provisions would be repealed on December 1 of that year.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 23 (commencing with Section 18901) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 23. Prevention of Animal Homelessness and Cruelty Fund
18901. (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
Prevention of Animal Homelessness and Cruelty Fund established by
Section 18901.1. That designation is to be used as a voluntary
contribution on the tax return.
(b) The contributions shall be in full dollar amounts and may be
made individually by each signatory on a joint return.
(c) A designation under subdivision (a) shall be made for a
taxable year on the original return for that taxable year and once
made is irrevocable. If payments and credits reported on the return,
together with any other credits associated with the taxpayer's
account, do not exceed the taxpayer's liability, the return shall be
treated as though no designation has been made.
(d) When another voluntary contribution designation is removed
from the tax return, or as soon as space is available, whichever
occurs first, the Franchise Tax Board shall revise the form of the
return to include a space labeled the "Prevention of Animal
Homelessness and Cruelty Fund" to allow for the designation
permitted. The form shall also include in the instructions
information that the contribution may be in the amount of one dollar
($1) or more and that the contribution shall be used to fund all of
the following:
(1) Programs designed to prevent and eliminate cat and dog
homelessness.
(2) Prevention, investigation, and prosecution of animal cruelty
and neglect.
(e) A deduction shall be allowed under Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10 for any contribution made
pursuant to subdivision (a).
18901.1. There is hereby established in the State Treasury the
Prevention of Animal Homelessness and Cruelty Fund to receive
contributions made pursuant to Section 18901. The Franchise Tax Board
shall notify the Controller of both the amount of money paid by
taxpayers in excess of their tax liability and the amount of refund
money that taxpayers have designated pursuant to Section 18901 to be
transferred to the Prevention of Animal Homelessness and Cruelty
Fund. The Controller shall transfer from the Personal Income Tax Fund
to the Prevention of Animal Homelessness and Cruelty Fund an amount
not in excess of the sum of the amounts designated by individuals
pursuant to Section 18901 for payment into that fund.
18901.2. (a) All money transferred to the Prevention of Animal
Homelessness and Cruelty Fund, upon appropriation by the Legislature,
shall be allocated as follows:
(1) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board and
the Controller in connection with their duties under this article.
(2) To the Department of Food and Agriculture for allocation as
follows:
(A) Up to 5 percent of the funds allocated to the department shall
be used by the department for the development of a mechanism to
provide ongoing public awareness through activities that will promote
the charitable tax deduction for the fund and seek continued
contributions. These activities may include convening a philanthropic
roundtable, developing literature for use by the city, county, or
city and county animal control agency or shelter that is current on
its reporting requirements to the State Department of Public Health,
Veterinary Public Health Section, a society for the prevention of
cruelty to animals affiliate, or a humane society affiliate for
dissemination, and whatever other activities are deemed necessary and
appropriate to promote the fund.
(B) Up to two hundred fifty thousand dollars ($250,000) shall be
distributed to, and used by, a city, county, or city and county
animal control agency or shelter that is current on its reporting
requirements to the State Department of Public Health, Veterinary
Public Health Section for the sole purpose of supporting spay and
neuter activities by that entity to prevent and eliminate cat and dog
homelessness.
(C) The remaining moneys, if any, shall be used by programs
designed to prevent and eliminate cat and dog homelessness or
programs for the prevention, investigation, and prosecution of animal
cruelty and neglect. The grants are to be distributed to a city,
county, or city and county animal control agency or shelter that is
current on its reporting requirements to the State Department of
Public Health, Veterinary Public Health Section, a society for the
prevention of cruelty to animals affiliate, or a humane society
affiliate. A society for the prevention of cruelty to animals
affiliate or a humane society affiliate shall be a California
corporation, duly incorporated in the state of California, in active
status, as described on the business search page of the Secretary of
State's Internet Web site, and exempt from federal income taxation as
an organization described in Section 501(c)(3) of the Internal
Revenue Code.
(b) The Department of Food and Agriculture shall award grants
through a competitive, project-specific grant process and shall be
responsible for overseeing that grant program. A grantee shall not
use a grant award for administrative expenses or for any purposes
outside of California.
(c) The Department of Food and Agriculture may consult with the
State Department of Public Health to develop the grant process and
the oversight of the grant program.
(d) No Prevention of Animal Homelessness and Cruelty Fund money
shall be used to supplant state General Fund money for any purpose.
18901.3. (a) Except as otherwise provided in subdivision (b),
this article shall remain in effect only until January 1 of the fifth
taxable year following the first appearance of the Prevention of
Animal Homelessness and Cruelty Fund on the tax return, or January 1,
2022, whichever occurs first, and is repealed as of December 1 of
that year.
(b) (1) By September 1 of the second calendar year and by
September 1 of each subsequent calendar year that the Prevention of
Animal Homelessness and Cruelty Fund appears on the tax return, the
Franchise Tax Board shall do all of the following:
(A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
(B) Provide written notification to the Department of Food and
Agriculture of the amount determined in subparagraph (A).
(C) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contribution amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). The Franchise Tax Board
shall estimate the amount of contributions to be received by using
the actual amounts received and an estimate of the contributions that
will be received by the end of that calendar year.
(2) If the Franchise Tax Board determines that the amount of the
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article shall be inoperative with respect to taxable years
beginning on or after January 1 of that calendar year and shall be
repealed on December 1 of that year.
(3) For purposes of this section, the minimum contribution amount
for a calendar year means two hundred fifty thousand dollars
($250,000) for the second calendar year after the first appearance of
the Prevention of Animal Homelessness and Cruelty Fund on the
personal income tax return or the adjusted minimum contribution
amount adjusted pursuant to subdivision (c).
(c) For each calendar year, beginning with the third calendar year
after the first appearance of the Prevention of Animal Homelessness
and Cruelty Fund on the tax return, the Franchise Tax Board shall
adjust, on or before September 1 of that calendar year, the minimum
estimated contribution amount specified in subdivision (b) as
follows:
(1) The minimum contribution amount for the calendar year shall be
an amount equal to the product of the minimum contribution amount
for the prior calendar year, multiplied by the inflation factor
adjustment as specified in paragraph (2) of subdivision (h) of
Section 17041, rounded off to the nearest dollar.
(2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.