BILL ANALYSIS                                                                                                                                                                                                    

                                                                     AB 485

                                                                    Page  1

          Date of Hearing:  April 29, 2015


                                 Jimmy Gomez, Chair

          485 (Williams) - As Amended April 22, 2015

          |Policy       |Revenue and Taxation           |Vote:|7 - 0        |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |

          Urgency:  No  State Mandated Local Program:  NoReimbursable:   


          This bill authorizes the addition of the Prevention of Animal  
          Homelessness and Cruelty Fund (Fund), and allows a taxpayer to  
          make a voluntary contribution to the Fund on the state personal  
          income tax return, beginning once another current checkoff for  
          charitable fund contribution has been removed.  Funds raised  
          would, upon appropriation by the Legislature, be awarded by the  
          Department of Food and Agriculture (DFA) as grants city or  
          county animal control agencies or shelters for programs designed  
          to prevent and eliminate pet homelessness and neglect.

          FISCAL EFFECT:


                                                                     AB 485

                                                                    Page  2

          1)Minor and absorbable costs to the Department of Food and  
            Agriculture (DFA) to administer grant program; insignificant  
            costs to the Franchise Tax Board (FTB).

          2)Estimated GF revenue decreases of approximately $8,000 in each  
            year the voluntary contribution fund remains on the personal  
            income tax return.


          1)Purpose.  According to the author, the goal of the new fund is  
            to incentivize contributions to support animal anti-cruelty  
            efforts and investigation.  The author asserts recent animal  
            cruelty cases reported in Sacramento gave rise to strong  
            public reaction, and adding an anti-cruelty fund to the  
            voluntary checkoff list will attract new donors.

          2)Worthy Cause, Modest Support.  With few exceptions, voluntary  
            contribution funds remain on the personal income tax return  
            until they are either repealed or fail to meet their minimum  
            contribution amount, typically $250,000.  If the FTB estimates  
            a contribution fund is likely to fail to meet the minimum  
            contribution amount, that fund is repealed effective January 1  
            of that calendar year.


                                                                     AB 485

                                                                    Page  3

            A similar voluntary contribution fund, the Municipal Shelter  
            Spay-Neuter Fund, appeared on the 2008 and 2009 tax returns.   
            This fund received $210,029 in 2009 and $194,462 in 2010.  In  
            2010, the fund needed to meet a minimum contribution threshold  
            of $250,000 but failed to do so, and as a result, ceased to be  

          Analysis Prepared by:Joel Tashjian / APPR. / (916)