AB 485: Personal income taxes: voluntary contributions: Prevention of Animal Homelessness and Cruelty Fund.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-10-07
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equal the minimum contribution amount, as defined, for that calendar year, in which case these provisions would be repealed on December 1 of that year.
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.
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.
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 distribution of grants on a competitive basis to to, among others, a city, county, or city and county animal control agency or shelter, as specified, for the purposes of, among other things, funding programs designed to prevent and eliminate cat and dog homelessness. 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.
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 distribution of grants on a competitive basis to a city or county city, county, or city and county animal control agency or shelter, as specified, for the purposes of, among other things, funding programs designed 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.
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 distribution of grants on a competitive basis to a city or county animal control agency or shelter, as specified, for the purposes of, among other things, funding programs designed 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 Personal Income Tax Law imposes taxes on income and provides a definition for the Franchise Tax Board for purposes of that law.
This bill would make a nonsubstantive change to that definition.
The Personal Income Tax Law imposes taxes on income and provides a definition for the Franchise Tax Board for purposes of that law.
This bill would make a nonsubstantive change to that definition.
(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 taxpayers account, do not exceed the taxpayers 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 States 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.
(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 taxpayers account, do not exceed the taxpayers 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 States 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.
(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 taxpayers account, do not exceed the taxpayers 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)Research that explores novel approaches to preventing and eliminating pet homelessness.
(3)
(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 the distribution of grants 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.
(A)The first
(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.
(B)
(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 human humane society affiliate shall be in California, a California corporation, duly incorporated in the state of California, in active status, as described on the business search page of the Secretary of States 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.
(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 taxpayers account, do not exceed the taxpayers 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)Research that explores novel approaches to preventing and eliminating pet homelessness.
(3)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 the distribution of grants 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. Funds obtained by a city, county, or city and county under a grant from the Prevention of Animal Homelessness and Cruelty Fund may be used to pay for the following:
(A)Programs designed to prevent and eliminate cat and dog homelessness.
(B)Research that explores novel approaches to preventing and eliminating pet homelessness.
(C)Prevention, investigation, and prosecution of animal cruelty and neglect.
(b)Grants distributed pursuant to this article may be paid to outside agencies that are under contract or in a demonstrated partnership with that city, county, or city and county to conduct these activities.
(2)To the Department of Food and Agriculture for the distribution of grants as follows:
(A)The first 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.
(B)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 human society affiliate shall be in California, in active status, as described on the business search page of the Secretary of States Internet Web site, and exempt from federal income taxation as an organization described in Section 501(c)(3) of the Internal Revenue Code.
(c)
(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.
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.
(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 initial 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 taxpayers account, do not exceed the taxpayers liability, the return shall be treated as though no designation has been made. If a contribution is specified, but a designee is not specified, the contribution shall be transferred to the General Fund after reimbursement of the direct actual costs of the Franchise Tax Board for the collection and administration of funds under this article.
(d)If an individual designates a contribution to more than one account or fund listed on the tax return, and the amount available is insufficient to satisfy the total amount designated, the contribution shall be allocated among the designees on a pro rata basis.
(e)
(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)Research that explores novel approaches to preventing and eliminating pet homelessness.
(3)Prevention, investigation, and prosecution of animal cruelty and neglect.
(f)
(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 the distribution of grants to a city or county 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. Funds obtained by a municipality city, county, or city and county under a grant from the Prevention of Animal Homelessness and Cruelty Fund may be used to pay for the following:
(A)Programs designed to prevent and eliminate cat and dog homelessness.
(B)Research that explores novel approaches to preventing and eliminating pet homelessness.
(C)Prevention, investigation, and prosecution of animal cruelty and neglect.
(b)Grants distributed pursuant to this article may be paid to outside agencies that are under contract or in a demonstrated partnership with that municipality city, county, or city and county to conduct these activities.
(c)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.
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.
(d)Notwithstanding the repeal of this article, any contribution amounts designated pursuant to this article prior to its repeal shall continue to be transferred and disbursed in accordance with this article as in effect immediately prior to that repeal.
(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 initial 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 taxpayers account, do not exceed the taxpayers liability, the return shall be treated as though no designation has been made. If a contribution is specified, but a designee is not specified, the contribution shall be transferred to the General Fund after reimbursement of the direct actual costs of the Franchise Tax Board for the collection and administration of funds under this article.
(d)If an individual designates a contribution to more than one account or fund listed on the tax return, and the amount available is insufficient to satisfy the total amount designated, the contribution shall be allocated among the designees on a pro rata basis.
(e)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)Research that explores novel approaches to preventing and eliminating pet homelessness.
(3)Prevention, investigation, and prosecution of animal cruelty and neglect.
(f)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 the distribution of grants to a city or county animal control agency or shelter that is current on its reporting requirements to the State Department of Public Health, Veterinary Public Health Section. Funds obtained by a municipality under a grant from the Prevention of Animal Homelessness and Cruelty Fund may be used to pay for the following:
(A)Programs designed to prevent and eliminate cat and dog homelessness.
(B)Research that explores novel approaches to preventing and eliminating pet homelessness.
(C)Prevention, investigation, and prosecution of animal cruelty and neglect.
(b)Grants distributed pursuant to this article may be paid to outside agencies that are under contract or in a demonstrated partnership with that municipality to conduct these activities.
(c)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.
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.
(d)Notwithstanding the repeal of this article, any contribution amounts designated pursuant to this article prior to its repeal shall continue to be transferred and disbursed in accordance with this article as in effect immediately prior to that repeal.
SECTION 1.Section 17003 of the Revenue and Taxation Code is amended to read:17003.Franchise Tax Board means the Franchise Tax Board described in Part 10 (commencing with Section 15700) of Division 3 of Title 2 of the Government Code. Board means the State Board of Equalization.
Franchise Tax Board means the Franchise Tax Board described in Part 10, Division 3, 10 (commencing with Section 15700) of Division 3 of Title 2 of the Government Code. Board means the State Board of Equalization.
|
Date
|
Status
|
|---|---|
| Sep 9, 2015 | Read third time. Passed. Ordered to the Assembly. |
| Jul 1, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 1). Re-referred to Com. on APPR. |
| Jul 8, 2015 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Aug 17, 2015 | In committee: Referred to APPR. suspense file. |
| Aug 27, 2015 | From committee: Do pass. (Ayes 7. Noes 0.) (August 27). |
| Aug 31, 2015 | Read second time. Ordered to third reading. |
| Sep 4, 2015 | Read third time and amended. Ordered to second reading. |
| Sep 8, 2015 | Read second time. Ordered to third reading. |
| Sep 9, 2015 | In Assembly. Concurrence in Senate amendments pending. |
| Jun 19, 2015 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on GOV. & F. |
| Sep 9, 2015 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 2637.). |
| Sep 10, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Sep 10, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 3057.). |
| Sep 10, 2015 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0.). |
| Sep 18, 2015 | Enrolled and presented to the Governor at 4 p.m. |
| Oct 7, 2015 | Approved by the Governor. |
| Oct 7, 2015 | Chaptered by Secretary of State - Chapter 557, Statutes of 2015. |
| Feb 23, 2015 | Read first time. To print. |
| Jun 17, 2015 | In committee: Hearing postponed by committee. |
| Jun 9, 2015 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| May 21, 2015 | Referred to Com. on GOV. & F. |
| May 7, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 1347.) |
| May 7, 2015 | Read third time. Passed. Ordered to the Senate. |
| May 7, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Apr 30, 2015 | Read second time. Ordered to Consent Calendar. |
| Apr 29, 2015 | From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (April 29). |
| Apr 23, 2015 | Re-referred to Com. on APPR. |
| Apr 22, 2015 | Read second time and amended. |
| Apr 21, 2015 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 20). |
| Apr 6, 2015 | Re-referred to Com. on REV. & TAX. |
| Mar 26, 2015 | Referred to Com. on REV. & TAX. |
| Mar 26, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended. |
| Feb 24, 2015 | From printer. May be heard in committee March 26. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 10, 2015 | AB 485 WILLIAMS Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 9, 2015 | Assembly 3rd Reading AB485 Williams By Allen | Senate Floor |
Passed |
|
| Aug 27, 2015 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 17, 2015 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 1, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Governance and Finance |
Passed |
|
| May 7, 2015 | AB 485 WILLIAMS Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Apr 29, 2015 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 20, 2015 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Revenue and Taxation |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| American Society For The Prevention Of Cruelty To Animals | ** Support | Sep 9, 2015 |
| California Department of Finance | ** Against | Sep 9, 2015 |
| Humane Society Of The United States, The | ** Support | Sep 9, 2015 |
| State Humane Association of California | ** Support | Sep 9, 2015 |
AB 485
Page 4
CONCURRENCE IN SENATE AMENDMENTS
AB 485
(Williams)
As Amended September 4, 2015
Majority vote
ASSEMBLY: |
77-0 |
(May 7, 2015) |
SENATE: |
39-0 |
(September 9, 2015) |
Original Committee Reference: REV. & TAX.
SUMMARY: Authorizes the addition of the Prevention of Animal Homelessness and Cruelty Fund (Fund) checkoff to the personal income tax (PIT) return upon the removal of another voluntary contribution fund (VCF) from the return, or as soon as space is available.
The Senate amendments:
Modify the distribution of Fund moneys. Specifically, the Department of Food and Agriculture is directed to allocate moneys as follows:
Up to 5% shall be used 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, as specified;
Up to $250,000 shall 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 for the sole purpose of supporting spay and neuter activities by that entity to prevent and eliminate cat and dog homelessness; and,
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, 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 Internal Revenue Code Section 501(c)(3).
Specify that 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.
Provide that no Fund money shall be used to supplant state General Fund money for any purpose.
EXISTING LAW:
Allows taxpayers to contribute to one or more of 18 VCFs on the 2014 PIT return.
Provides a specific sunset date for each VCF, except for the California Seniors Special Fund and the State Parks Protection Fund.
Requires each VCF to meet an annual minimum contribution amount to remain in effect, except for the California Firefighters' Memorial Fund, the California Peace Officer Memorial Foundation Fund, and the California Seniors Special Fund.
AS PASSED BY THE ASSEMBLY, this bill:
Established the Fund in the State Treasury.
Provided that all money transferred to the Fund, upon appropriation by the Legislature, shall be allocated to the:
Franchise Tax Board (FTB) and the State Controller for reimbursement of all costs incurred in administering the VCF; and,
Department of Food and Agriculture for the distribution of grants to a city or county animal control agency or shelter that is current on its reporting requirements to the State Department of Public Health, Veterinary Public Health Section.
Provided that funds obtained by a municipality under a grant from the Fund may be used to pay for the following:
Programs designed to prevent and eliminate cat and dog homelessness;
Research that explores novel approaches to preventing and eliminating pet homelessness; and,
Prevention, investigation, and prosecution of animal cruelty and neglect.
Provided that distributed grants may be paid to outside agencies that are under contract or in a demonstrated partnership with the municipality to conduct these activities.
Required the Department of Food and Agriculture to award grants through a competitive, project-specific grant process and to oversee the grant program.
Specified that a grantee shall not use a grant award for administrative expenses or for any purpose outside of California.
Provided for the Fund provisions' automatic sunset on either January 1 of the fifth taxable year following the Fund's first appearance on the PIT return or January 1, 2022, whichever occurs first.
Required the Fund to meet a minimum contribution threshold of $250,000 indexed for inflation.
FISCAL EFFECT: According to the Senate Appropriations Committee:
The FTB estimates that this bill would result in an annual General Fund revenue loss of about $8,000.
The State Controller's Office and FTB would be reimbursed from the Fund for related administrative costs.
The California Department of Food and Agriculture would incur first-year General Fund costs of $66,000, and ongoing annual costs of $125,000. The specific timing of these expenses would depend on when the check-off were to appear on the tax form.
COMMENTS:
The author has provided the following statement in support of this bill:
The goal of the new fund proposed in AB 485 is to appeal to a wider selection of contributors by expanding the use of fund dollars to include animal cruelty prevention and investigation. In the face of recent animal cruelty cases here in Sacramento and the resounding public outcry, there is increased confidence that adding cruelty funding and response to the voluntary check off will draw new donors.
Committee Staff Comments
So many causes, so little space: There are countless worthy causes that would benefit from the inclusion of a VCF on the state's income tax returns. At the same time, space on the returns is limited. Thus, it could be argued that the current system for adding VCFs to the form is subjective and essentially rewards organizations that can convince the Legislature to include their fund on the form.
Legislative history: AB 2291 (Mendoza), Chapter 328, Statutes of 2008, authorized the addition of the Municipal Shelter Spay-Neuter Fund to the PIT return. This VCF appeared on the 2008 and 2009 tax returns in calendar years 2009 and 2010 respectively. This VCF received $210,029 in 2009 and $194,462 in 2010. In 2010, the VCF needed to meet a minimum contribution threshold of $250,000 but failed to do so; and, as a result, the VCF ceased to be operative.
In 2011, the Legislature once again authorized the addition of an identically named Municipal Shelter Spay-Neuter Fund checkoff [AB 564 (Smyth), Chapter 549, Statutes of 2011]. Once again, this VCF was designed to provide funds for low-cost or free spay-neuter services associated with municipal shelters in California. Unfortunately, however, this VCF fared little better than its predecessor. Specifically, the VCF received $244,701 in 2012, $217,883 in 2013, and only $217,549 in 2014. Thus, the VCF once again fell off the return for failing to meet its minimum contribution threshold.
VCF policy: The Committee on Revenue and Taxation's VCF policy provides that "[A]ll proponents seeking authorization for a new or reauthorized checkoff shall provide information justifying their expectation that the checkoff will meet its minimum contribution requirement." In addition, the Committee's VCF policy states that "[C]heckoffs that have failed to meet their minimum contribution requirement will not be extended or reauthorized."
Given that two separate municipal shelter VCFs failed to meet their minimum contribution thresholds within the last few years, it is an open question whether this Fund will fare any better. To this end, Committee staff questions the precedent of simply re-establishing past VCFs when they fail to garner sufficient support to remain on the form. The author, however, notes that the previous VCFs were exclusively focused on animal overpopulation, while this Fund additionally authorizes grant moneys to be spent on the prevention, investigation, and prosecution of cruelty to animals. The author's office believes that, "there is increased confidence that adding cruelty funding and response to the voluntary check off will draw new donors."
Analysis Prepared by: M. David Ruff / REV. & TAX. / (916) 319-2098 FN: 0002230
AB 485
Page 4
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 485
Amended: 9/4/15 in Senate
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 7/1/15
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
ASSEMBLY FLOOR: 77-0, 5/7/15 - See last page for vote
SUBJECT: Personal income taxes: voluntary contributions
DIGEST: This bill authorizes the addition of the Prevention of Animal Homelessness and Cruelty Fund (Fund) check-off to the personal income tax return.
Senate Floor Amendments of 9/4/15 allows the Department of Food and Agriculture to consult with the Department of Public Health to develop the grant process, allows the Department of Food and Agriculture to use up to 5% of the funds collected to create public awareness about the check-off, and prohibits the use of money from the check-off fund to be used to supplant state General Fund money for any purpose.
Existing law:
Allows taxpayers to contribute money to voluntary contribution funds (check-offs) by checking a box on their state income tax returns.
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.
Allows taxpayers to claim check-off amounts as charitable contributions on taxpayers’ tax returns in the subsequent year.
This bill:
Adds 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 an existing check-off for charitable fund contribution has been removed, or as soon as space is available.
Requires the Fund to meet a minimum contribution threshold of $250,000, indexed yearly for inflation.
Provides that all money transferred to the Fund, upon appropriation by the Legislature, be allocated as follows:
To the Franchise Tax Board (FTB) and the State Controller for reimbursement of all costs incurred in administering the check-off,
The first $250,000, shall be distributed by the Department of Food and Agriculture, to a city, county, or city and county animal control agency or for the sole purpose of supporting spay and neuter activities by that entity to prevent and eliminate cat and dog homelessness.
Any amount collected over $250,000, shall be distributed by the Department of Food and Agriculture, to 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.
Allows the Department of Food and Agriculture to consult with the Department of Public Health to develop the grant process.
Allows the Department of Food and Agriculture to use up to 5% of the funds collected to create public awareness about the check-off.
Prohibits the use of money from the check-off fund to be used to supplant state General Fund money for any purpose.
Provides that the bill automatically sunsets on January 1 of the fifth taxable year following the Fund's first appearance on the personal income tax form, or January 1, 2022, whichever occurs first.
Background
The Legislature adds individual check-offs yearly. With a few exceptions, check-offs remain on the return until they are repealed by a sunset date or fail to generate a minimum contribution amount. In general, the minimum contribution amounts are adjusted annually for inflation. For most check-offs, the minimum contribution amount is $250,000, beginning in the fund’s second year. The following check-offs do not have a minimum contribution requirement:
California Firefighters’ Memorial Foundation Fund,
California Peace Officer Memorial Foundation Fund, and
California Seniors Special Fund.
When a taxpayer contributes to check-offs, FTB deposits the total of all contributions into the fund created as part of the check-offs legislative authorization. For some check-offs, such as the Protect Our Coast and Ocean Fund, taxpayers’ contributions are allocated to a state agency for use in a state administered grant program. Other check-off authorizing statutes direct administrative agencies to allocate donations to a private organization. For example, the Office of Emergency Services passes check-offs funds to the American Red Cross. Other funds require the State Controller to send the funds directly to private organizations without passing through an administrative agency, such as the California Fire Foundation. FTB, the Controller, and an administrative agency may deduct from the amount of donations each check-off receives for direct costs of administering a fund.
There are currently 18 check-offs listed on the tax return form. The tax check-off program collects approximately $5 million in annual contributions for all check-offs.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
FTB estimates that this bill would result in an annual General Fund revenue loss of about $8,000.
The State Controller’s Office and FTB and would be reimbursed from the Fund for related administrative costs.
The California Department of Food and Agriculture would incur first-year General Fund costs of $66,000, and ongoing annual costs of $125,000. The specific timing of these expenses would depend on when the check-off were to appear on the tax form.
American Society for the Prevention of Cruelty to Animals
Humane Society of the United States
State Humane Association of California
California Department of Finance
ARGUMENTS IN SUPPORT: The supporters of this bill argue that this bill will provide much needed funding to California’s animal shelters to improve animal welfare. Specifically, the bill will ensure over 200,000 animals undergo the necessary spay/neuter procedure for every $1 million dollars collected. This will decrease the number of homeless pets in California.
ARGUMENTS IN OPPOSITION: The opponent of this bill argues that this bill could result in a loss to the General Fund and is of limited value.
ASSEMBLY FLOOR: 77-0, 5/7/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Campos, Roger Hernández, Steinorth
Prepared by: Myriam Bouaziz / GOV. & F. / (916) 651-4119
9/9/15 10:11:59
AB 485
Page 4
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 485
Amended: 6/19/15 in Senate
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 7/1/15
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
ASSEMBLY FLOOR: 77-0, 5/7/15 - See last page for vote
SUBJECT: Personal income taxes: voluntary contributions: Prevention of Animal Homelessness and Cruelty Fund
DIGEST: This bill authorizes the addition of the Prevention of Animal Homelessness and Cruelty Fund (Fund) check-off to the personal income tax return.
Existing law:
Allows taxpayers to contribute money to voluntary contribution funds (check-offs) by checking a box on their state income tax returns.
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.
Allows taxpayers to claim check-off amounts as charitable contributions on taxpayers’ tax returns in the subsequent year.
This bill:
Adds 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 an existing check-off for charitable fund contribution has been removed, or as soon as space is available.
Requires the Fund to meet a minimum contribution threshold of $250,000, indexed yearly for inflation.
Provides that all money transferred to the Fund, upon appropriation by the Legislature, be allocated as follows:
To the Franchise Tax Board (FTB) and the State Controller for reimbursement of all costs incurred in administering the check-off,
The first $250,000, shall be distributed by the Department of Food and Agriculture, to a city, county, or city and county animal control agency or for the sole purpose of supporting spay and neuter activities by that entity to prevent and eliminate cat and dog homelessness.
Any amount collected over $250,000, shall be distributed by the Department of Food and Agriculture, to 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.
Provides that the bill automatically sunsets on January 1 of the fifth taxable year following the Fund's first appearance on the personal income tax form, or January 1, 2022, whichever occurs first.
Background
The legislature adds individual check-offs yearly. With a few exceptions, check-offs remain on the return until they are repealed by a sunset date or fail to generate a minimum contribution amount. In general, the minimum contribution amounts are adjusted annually for inflation. For most check-offs, the minimum contribution amount is $250,000, beginning in the fund’s second year. The following check-offs do not have a minimum contribution requirement:
California Firefighters’ Memorial Foundation Fund,
California Peace Officer Memorial Foundation Fund, and
California Seniors Special Fund.
When a taxpayer contributes to check-offs, FTB deposits the total of all contributions into the fund created as part of the check-offs legislative authorization. For some check-offs, such as the Protect Our Coast and Ocean Fund, taxpayers’ contributions are allocated to a state agency for use in a state administered grant program. Other check-off authorizing statutes direct administrative agencies to allocate donations to a private organization. For example, the Office of Emergency Services passes check-offs funds to the American Red Cross. Other funds require the State Controller to send the funds directly to private organizations without passing through an administrative agency, such as the California Fire Foundation. FTB, the Controller, and an administrative agency may deduct from the amount of donations each check-off receives for direct costs of administering a fund.
There are currently 18 check-offs listed on the tax return form. The tax check-off program collects approximately $5 million in annual contributions for all check-offs.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee:
FTB estimates that this bill would result in an annual General Fund revenue loss of about $8,000.
The State Controller’s Office and FTB and would be reimbursed from the Fund for related administrative costs.
The California Department of Food and Agriculture would incur first-year General Fund costs of $66,000, and ongoing annual costs of $125,000. The specific timing of these expenses would depend on when the check-off were to appear on the tax form.
American Society for the Prevention of Cruelty to Animals
Humane Society of the United States
State Humane Association of California
OPPOSITION: (Verified 8/27/15)
California Department of Finance
ARGUMENTS IN SUPPORT: The supporters of this bill argue that this bill will provide much needed funding to California’s animal shelters to improve animal welfare. Specifically, the bill will ensure over 200,000 animals undergo the necessary spay/neuter procedure for every $1 million dollars collected. This will decrease the number of homeless pets in California.
ARGUMENTS IN OPPOSITION: The opponent of this bill argues that this bill could result in a loss to the General Fund and is of limited value.
ASSEMBLY FLOOR: 77-0, 5/7/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Campos, Roger Hernández, Steinorth
Prepared by: Myriam Bouaziz / GOV. & F. / (916) 651-4119
8/30/15 19:12:42
**** END ****
AB 485 (Williams) Page 2 of 2
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 485 (Williams) - Personal income taxes: voluntary contributions: Prevention of Animal Homelessness and Cruelty Fund.
|
|
Version: June 19, 2015 |
Policy Vote: GOV. & F. 7 - 0 |
Urgency: No |
Mandate: No |
Hearing Date: August 17, 2015 |
Consultant: Robert Ingenito |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
AB 485 would authorize the addition of the Prevention of Animal Homelessness and Cruelty Fund (Fund) check-off to the personal income tax return.
Fiscal Impact:
The Franchise Tax Board (FTB) estimates that this bill would result in an annual General Fund revenue loss of about $8,000.
The State Controller’s Office (SCO) and FTB and would be reimbursed from the Fund for related administrative costs.
The California Department of Food and Agriculture (CDFA) would incur first-year General Fund costs of $66,000, and ongoing annual costs of $125,000. The specific timing of these expenses would depend on when the check-off were to appear on the tax form.
Background:
Current law allows taxpayers to contribute money to one or more of 18 voluntary contribution funds during the process of filing their state income tax return (tax check-off). These contributions are made from taxpayers' own resources, not from their tax liability, as is the case with federal tax returns. Check-off amounts are deductible as charitable contributions on taxpayers' returns during the subsequent tax year. With some exceptions, each voluntary contribution fund has a sunset date and is required to meet a minimum contribution amount of $250,000, adjusted annually for inflation.
Proposed Law:
This bill would (1) add the Prevention of Animal Homelessness and Cruelty Fund (Fund), and (2) allow a taxpayer to make a voluntary contribution to the Fund on the state personal income tax return, beginning once an existing check-off for charitable fund contribution has been removed, or as soon as space is available. The bill would require the Fund to meet a minimum contribution threshold of $250,000, indexed yearly for inflation. All money transferred to the Fund, upon appropriation by the Legislature, would be allocated as follows:
To FTB and SCO for reimbursement of administrative costs.
The first $250,000 would be distributed by CDFA to a city, county, or city and county animal control agency or for the sole purpose of supporting spay and neuter activities to prevent and eliminate cat and dog homelessness.
Any amount collected over $250,000 would be distributed by CDFA to 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 bill would automatically sunset on January 1 of the fifth taxable year following the Fund's first appearance on the personal income tax form, or January 1, 2022, whichever occurs first.
Staff Comments:
FTB data indicate that roughly one-half of taxpayers who contribute to the Fund itemize their deductions. The average tax rate for these taxpayers is about six percent, which produces the $9,000 annual revenue loss. In 2012, about 89,000 out of 15 million taxpayers (or less than one percent) utilized one or more of the 18 check-offs; aggregate contributions totaled $4.8 million.
A similar tax checkoff, 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. Because the fund failed to meet the minimum contribution threshold in 2010, FTB removed the fund from the income tax return form.
CDFA’s costs would result from the bill’s workload requirements that kick in once the Fund contributions exceed $250,000. These costs would not occur until threshold is exceeded; thus, until the Fund reaches $250,000, the bill would not have a fiscal impact to CDFA. At that time, however, the Department would be required to establish a new competitive grant program, evaluate grant applications and distribute grant funds to eligible municipal shelters. The workload to implement the competitive grant program would be dependent on the number of grants and the overall size of the program. CDFA estimates it would require one position and basic operating expenses at a total annual cost of $125,000.
-- END --
AB 485 (Williams) 6/19/15 Page 3 of 3
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M. Hertzberg, Chair
2015 - 2016 Regular
Bill No: |
AB 485 |
Hearing Date: |
7/1/15 |
Author: |
Williams |
Tax Levy: |
No |
Version: |
6/19/15 |
Fiscal: |
Yes |
Consultant: |
Bouaziz |
||
PERSONAL INCOME TAXES: VOLUNTARY CONTRIBUTIONS: PREVENTION OF ANIMAL HOMELESSNESS AND CRUELTY FUND
Authorizes the addition of the Prevention of Animal Homelessness and Cruelty Fund (Fund) check-off to the personal income tax return.
Background and Existing Law
Existing state law allows taxpayers to contribute money to voluntary contribution funds (VCFs) by checking a box on their state income tax returns. California law requires contributions made through so-called “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 on taxpayers’ tax returns in the subsequent year.
The legislature adds individual VCF’s yearly. With a few exceptions, VCFs remain on the return until they are repealed by a sunset date or fail to generate a minimum contribution amount. In general, the minimum contribution amounts are adjusted annually for inflation. For most VCFs, the minimum contribution amount is $250,000, beginning in the fund’s second year. The following check-offs do not have a minimum contribution requirement:
California Firefighters’ Memorial Foundation Fund,
California Peace Officer Memorial Foundation Fund, and
California Seniors Special Fund.
When a taxpayer contributes to VCFs, the Franchise Tax Board (FTB) deposits the total of all contributions into the fund created as part of the VCF’s legislative authorization. For some VCFs, such as the Protect Our Coast and Ocean Fund, taxpayers’ contributions are allocated to a state agency for use in a state administered grant program. Other VCFs’ authorizing statutes direct administrative agencies to allocate donations to a private organization. For example, the Office of Emergency Services passes VCF funds to the American Red Cross. Other funds require the State Controller to send the funds directly to private organizations without passing through an administrative agency, such as the California Fire Foundation. FTB, the Controller, and an administrative agency may deduct from the amount of donations each VCFs receives for direct costs of administering a fund.
There are currently 18 check-offs listed on the tax return form. The tax check-off program collects approximately $5 million in annual contributions for all VCFs.
Proposed Law
Assembly Bill 485 adds 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 an existing check-off for charitable fund contribution has been removed, or as soon as space is available. The bill requires the Fund to meet a minimum contribution threshold of $250,000, indexed yearly for inflation.
Additionally, the bill provides that all money transferred to the Fund, upon appropriation by the Legislature, be allocated as follows:
To FTB and the State Controller for reimbursement of all costs incurred in administering the VCF,
The first $250,000, shall be distributed by the Department of Food and Agriculture, to a city, county, or city and county animal control agency or for the sole purpose of supporting spay and neuter activities by that entity to prevent and eliminate cat and dog homelessness.
Any amount collected over $250,000, shall be distributed by the Department of Food and Agriculture, to 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.
AB 485 provides that the bill automatically sunsets on January 1 of the fifth taxable year following the Fund's first appearance on the personal income tax form, or January 1, 2022, whichever occurs first.
State Revenue Impact
FTB estimates annual revenue losses of roughly $8,000 for every $250,000 contributed to the Fund by taxpayers who itemize.
Comments
1. Purpose of the bill. According to the author, “The goal of the new fund proposed in AB 485 is to appeal to a wider selection of contributors by expanding the use of fund dollars to include animal cruelty prevention and investigation. In the face of recent animal cruelty cases here in Sacramento and the resounding public outcry, there is increased confidence that adding cruelty funding and response to the voluntary check off will draw new donors.”
2. New check-off? 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 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.
A similar VCF, 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. Because the fund failed to meet the minimum contribution threshold in 2010, FTB removed the fund from the income tax return form.
3. Is there a better way? The current tax check-off program generates a relatively small share of statewide contributions to charitable causes. In 2008, Californians donated more than $17 billion to charities. However, less than 1% of Californians use the tax check-off program to make donations to charitable organizations. FTB reports that in 2012, 89,335 out of 15 million taxpayers contributed a total of $4.8 million to 18 check-offs. Last year, SB 1207 (Wolk) attempted to address this issue and help grow charitable giving by establishing the California Voluntary Contribution Program to promote charitable giving and collect donations. This would have allowed many more charities to participate in the program, would have screened potential participants before adding them onto the form, and eliminated the need for each organization to go through the Legislative process. Under SB 1207, charities would instead apply to the office of California Volunteers for placement on the income tax form. However, SB 1207 (Wolk) was held on suspense in Assembly Appropriations.
4. Bills, bills, bills. Currently, tax check-offs must be added by the Legislature. In 2008, 11 VCFs appeared on the personal income tax return. Today, the return contains 18. With legislation introduced every year to add new VCFs, there is little reason to expect this number to stop growing. The growing number results in significant costs to the Franchise Tax Board (FTB). It is estimated that FTB can only handle 12-15 more check-offs before it has to redesign its information technology system, at a cost of $800,000 to $1 million.
Assembly Actions
Assembly Revenue and Taxation 7-0
Assembly Appropriations 17-0
Assembly Floor 77-0
Support and Opposition
(6/25/15)
Support: American Society for the Prevention of Cruelty to Animals; Humane Society of the United States; State Humane Association of California.
Opposition: California Department of Finance.
-- END --
AB 485
Page 1
Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB 485
(Williams) – As Amended April 22, 2015
Policy Committee: |
Revenue and Taxation |
Vote: |
7 - 0 |
Urgency: No State Mandated Local Program: No Reimbursable:
SUMMARY:
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:
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.
COMMENTS:
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.
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 operative.
Analysis Prepared by: Joel Tashjian / APPR. / (916) 319-2081
AB 485
Page 4
Date of Hearing: April 20, 2015
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Philip Ting, Chair
AB 485
(Williams) – As Amended March 26, 2015
Majority vote. Fiscal committee.
SUBJECT: Personal income taxes: voluntary contributions: Prevention of Animal Homelessness and Cruelty Fund
SUMMARY: Authorizes the addition of the Prevention of Animal Homelessness and Cruelty Fund (Fund) checkoff to the personal income tax (PIT) return upon the removal of another voluntary contribution fund (VCF) from the return, or as soon as space is available. Specifically, this bill:
Establishes the Fund in the State Treasury.
Provides that all money transferred to the Fund, upon appropriation by the Legislature, shall be allocated to the:
Franchise Tax Board (FTB) and the State Controller for reimbursement of all costs incurred in administering the VCF; and,
Department of Food and Agriculture for the distribution of grants to a city or county animal control agency or shelter that is current on its reporting requirements to the State Department of Public Health, Veterinary Public Health Section.
Provides that funds obtained by a municipality under a grant from the Fund may be used to pay for the following:
Programs designed to prevent and eliminate cat and dog homelessness;
Research that explores novel approaches to preventing and eliminating pet homelessness; and,
Prevention, investigation, and prosecution of animal cruelty and neglect.
Provides that distributed grants may be paid to outside agencies that are under contract or in a demonstrated partnership with the municipality to conduct these activities.
Requires the Department of Food and Agriculture to award grants through a competitive, project-specific grant process and to oversee the grant program.
Specifies that a grantee shall not use a grant award for administrative expenses or for any purpose outside of California.
Provides for the Fund provisions' automatic sunset on either January 1 of the fifth taxable year following the Fund's first appearance on the PIT return or January 1, 2022, whichever occurs first.
Requires the Fund to meet a minimum contribution threshold of $250,000 indexed for inflation.
EXISTING LAW:
Allows taxpayers to contribute to one or more of 18 VCFs on the 2014 PIT return.
Provides a specific sunset date for each VCF, except for the California Seniors Special Fund and the State Parks Protection Fund.
Requires each VCF to meet an annual minimum contribution amount to remain in effect, except for the California Firefighters' Memorial Fund, the California Peace Officer Memorial Foundation Fund, and the California Seniors Special Fund.
FISCAL EFFECT: The FTB estimates annual revenue losses of roughly $8,000 beginning in Fiscal Year 2016-17 resulting from itemized deductions.
COMMENTS:
The author has provided the following statement in support of this bill:
The goal of the new fund proposed in AB 485 is to appeal to a wider selection of contributors by expanding the use of fund dollars to include animal cruelty prevention and investigation. In the face of recent animal cruelty cases here in Sacramento and the resounding public outcry, there is increased confidence that adding cruelty funding and response to the voluntary check off will draw new donors.
Committee Staff Comments
So many causes, so little space: There are countless worthy causes that would benefit from the inclusion of a VCF on the state's income tax returns. At the same time, space on the returns is limited. Thus, it could be argued that the current system for adding VCFs to the form is subjective and essentially rewards organizations that can convince the Legislature to include their fund on the form.
Legislative history: AB 2291 (Mendoza), Chapter 328, Statutes of 2008, authorized the addition of the Municipal Shelter Spay-Neuter Fund to the PIT return. This VCF appeared on the 2008 and 2009 tax returns in calendar years 2009 and 2010 respectively. This VCF received $210,029 in 2009 and $194,462 in 2010. In 2010, the VCF needed to meet a minimum contribution threshold of $250,000 but failed to do so; and, as a result, the VCF ceased to be operative.
In 2011, the Legislature once again authorized the addition of an
identically named Municipal Shelter Spay-Neuter Fund checkoff [AB 564
(Smyth), Chapter 549, Statutes of 2011]. Once again, this VCF was
designed to provide funds for low-cost or free spay-neuter services
associated with municipal shelters in California. Unfortunately,
however, this VCF fared little better than its predecessor.
Specifically, the VCF received $244,701 in 2012, $217,883 in 2013,
and only $217,549 in 2014. Thus, the VCF once again fell off the
return for failing to meet its minimum contribution threshold.
VCF policy: This Committee's VCF policy provides that "[A]ll proponents seeking authorization for a new or reauthorized checkoff shall provide information justifying their expectation that the checkoff will meet its minimum contribution requirement." In addition, this Committee's VCF policy states that "[C]heckoffs that have failed to meet their minimum contribution requirement will not be extended or reauthorized."
Given that two separate municipal shelter VCFs failed to meet their minimum contribution thresholds within the last few years, it is an open question whether this Fund will fare any better. To this end, Committee staff questions the precedent of simply re-establishing past VCFs when they fail to garner sufficient support to remain on the form. The author, however, notes that the previous VCFs were exclusively focused on animal overpopulation, while this Fund additionally authorizes grant moneys to be spent on the prevention, investigation, and prosecution of cruelty to animals. The author's office believes that, "there is increased confidence that adding cruelty funding and response to the voluntary check off will draw new donors."
Technical considerations:
This bill provides that grant moneys shall be distributed to city or county animal control agencies or shelters (emphasis added). In the remainder of this bill, however, the language refers exclusively to "municipalities" (e.g., funds obtained by a "municipality" may be used for certain specified purposes). The term "municipality", in turn, could be read to apply only to cities and not counties. If the intention is to allow grant moneys to be distributed to counties as well as cities, technical amendments should be adopted to make this intention clear.
The reference to "initial return" on page 2, line 16, should be replaced with "original return".
The FTB has also suggested a set of technical amendments in its staff analysis of this bill.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Analysis Prepared by: M. David Ruff / REV. & TAX. / (916) 319-2098
Discussed in Hearing
56SEC
Assembly Floor
2MIN
Senate Floor
54SEC
Senate Standing Committee on Appropriations
5MIN
Senate Standing Committee on Governance and Finance
4MIN
Assembly Standing Committee on Revenue and Taxation
Bill Author
Bill Co-Author(s):
