Existing law establishes the Pet Lovers Fund in the Specialized License Plate Fund and requires the Department of Food and Agriculture to grant moneys in the Pet Lovers Fund to eligible veterinary facilities, as defined, that offer low-cost or no-cost animal sterilization services pursuant to a specified process.

Existing law authorizes an individual to contribute amounts in excess of their tax liability for the support of specified funds. Existing law also sets forth administrative provisions applicable to voluntary contributions.

Prior existing law established the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund for purposes of receiving voluntary contributions made by individuals from amounts in excess of their tax liability.

This bill would require that all moneys in that prior fund continue to be transferred and disbursed in accordance with prior applicable law, as those read immediately prior to their repeal.

This bill would additionally allow an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund, which would be created by this bill. The bill would prohibit a voluntary contribution designation for the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund from being added on the tax return until another voluntary contribution designation is removed or a space is available.

This bill would require moneys in the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund to be continuously appropriated and to be allocated to the Franchise Tax Board and the Controller for reimbursement of costs and the balance to the Department of Food and Agriculture for administrative costs and public awareness activities, as described, and the distribution of funds through the above-described grant program funded by the Pet Lovers Fund. By continuously appropriating these funds, the bill would make an appropriation.

This bill would provide that these provisions would remain operative only until January 1 of the 7th calendar year following the first appearance of the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund on the tax return, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received during the 2nd and later calendar years after its first appearance on a return will not at least equal the minimum contribution amount, in which case these provisions would be repealed on December 1 of that year. The bill would require, notwithstanding the repeal of the bills provisions, that any contribution amounts designated prior to the repeal of the bills provisions be transferred and disbursed in accordance with those provisions, as specified.

Existing law establishes the Pet Lovers Fund in the Specialized License Plate Fund and requires the Department of Food and Agriculture to grant moneys in the Pet Lovers Fund to eligible veterinary facilities, as defined, that offer low-cost or no-cost animal sterilization services pursuant to a specified process.

Existing law authorizes an individual to contribute amounts in excess of their tax liability for the support of specified funds. Existing law also sets forth administrative provisions applicable to voluntary contributions.

Prior existing law established the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund for purposes of receiving voluntary contributions made by individuals from amounts in excess of their tax liability.

This bill would require that all moneys in that prior fund continue to be transferred and disbursed in accordance with prior applicable law, as those read immediately prior to their repeal.

This bill would additionally allow an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund, which would be created by this bill. The bill would prohibit a voluntary contribution designation for the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund from being added on the tax return until another voluntary contribution designation is removed or a space is available.

This bill would require moneys in the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund to be continuously appropriated and to be allocated to the Franchise Tax Board and the Controller for reimbursement of costs and the balance to the Department of Food and Agriculture for administrative costs and public awareness activities, as described, and the distribution of funds through the above-described grant program funded by the Pet Lovers Fund. By continuously appropriating these funds, the bill would make an appropriation.

This bill would provide that these provisions would remain operative only until January 1 of the 7th calendar year following the first appearance of the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund on the tax return, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received during the 2nd and later calendar years after its first appearance on a return will not at least equal the minimum contribution amount, in which case these provisions would be repealed on December 1 of that year. The bill would require, notwithstanding the repeal of the bills provisions, that any contribution amounts designated prior to the repeal of the bills provisions be transferred and disbursed in accordance with those provisions, as specified.

Existing law establishes the Pet Lovers Fund in the Specialized License Plate Fund and requires the Department of Food and Agriculture to grant moneys in the Pet Lovers Fund to eligible veterinary facilities, as defined, that offer low-cost or no-cost animal sterilization services pursuant to a specified process.

Existing law authorizes an individual to contribute amounts in excess of their tax liability for the support of specified funds. Existing law also sets forth administrative provisions applicable to voluntary contributions.

Prior existing law established the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund for purposes of receiving voluntary contributions made by individuals from amounts in excess of their tax liability.

This bill would require that all moneys in that prior fund continue to be transferred and disbursed in accordance with prior applicable law, as those read immediately prior to their repeal.

This bill would additionally allow an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund, which would be created by this bill. The bill would prohibit a voluntary contribution designation for the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund from being added on the tax return until another voluntary contribution designation is removed or a space is available.

This bill would require moneys in the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund to be continuously appropriated and to be allocated to the Franchise Tax Board and the Controller for reimbursement of costs and the balance to the Department of Food and Agriculture for administrative costs and public awareness activities, as described, and the distribution of funds through the above-described grant program funded by the Pet Lovers Fund. By continuously appropriating these funds, the bill would make an appropriation.

This bill would provide that these provisions would remain operative only until January 1 of the 7th taxable calendar year following the first appearance of the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund on the tax return, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received during the 2nd and later calendar years after its first appearance on a return will not at least equal the minimum contribution amount, in which case these provisions would be repealed on December 1 of that year. The bill would require, notwithstanding the repeal of the bills provisions, that any contribution amounts designated prior to the repeal of the bills provisions be transferred and disbursed in accordance with those provisions, as specified.

Existing law establishes the Pet Lovers Fund in the Specialized License Plate Fund and requires the Department of Food and Agriculture to grant moneys in the Pet Lovers Fund to eligible veterinary facilities, as defined, that offer low-cost or no-cost animal sterilization services pursuant to a specified process.

Existing law authorizes an individual to contribute amounts in excess of their tax liability for the support of specified funds. Existing law also sets forth administrative provisions applicable to voluntary contributions.

This bill would additionally allow an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund, which would be created by this bill. The bill would prohibit a voluntary contribution designation for the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund from being added on the tax return until another voluntary contribution designation is removed or a space is available.

This bill would require moneys in the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund to be continuously appropriated and to be allocated to the Franchise Tax Board and the Controller for reimbursement of costs and the balance to the Department of Food and Agriculture for public awareness activities, as described, and the distribution of funds for spay and neuter activities, as described. through the above-described grant program funded by the Pet Lovers Fund. By continuously appropriating these funds, the bill would make an appropriation.

This bill would provide that these provisions would remain operative only until January 1 of the 7th taxable year following the first appearance of the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund on the tax return, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received during the 2nd and later calendar years after its first appearance on a return will not at least equal the minimum contribution amount, in which case these provisions would be repealed on December 1 of that year. The bill would require, notwithstanding the repeal of the bills provisions, that any contribution amounts designated prior to the repeal of the bills provisions be transferred and disbursed in accordance with those provisions, as specified.

Existing law authorizes an individual to contribute amounts in excess of their tax liability for the support of specified funds. Existing law also sets forth administrative provisions applicable to voluntary contributions.

This bill would additionally allow an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the Dog and Cat Euthanasia Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund, which would be created by this bill. The bill would prohibit a voluntary contribution designation for the Dog and Cat Euthanasia Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund from being added on the tax return until another voluntary contribution designation is removed or a space is available.

The bill would require moneys in the Dog and Cat Euthanasia Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund to be continuously appropriated and to be allocated to the Franchise Tax Board and the Controller for reimbursement of costs and the balance to the Department of Food and Agriculture for public awareness activities, as described, and the distribution of funds for spay and neuter activities, as described. By continuously appropriating these funds, the bill would make an appropriation.

The bill would provide that these provisions would remain in effect only until January 1, 2035, operative only until January 1 of the 7th taxable year following the first appearance of the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund on the tax return, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received during the 2nd and later calendar years after its first appearance on a return will not at least equal the minimum contribution amount, in which case these provisions would be repealed on December 1 of that year.

Existing law authorizes an individual to contribute amounts in excess of their tax liability for the support of specified funds. Existing law also sets forth administrative provisions applicable to voluntary contributions.

This bill would additionally allow an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the Dog and Cat Euthanasia Prevention Voluntary Tax Contribution Fund, which would be created by this bill. The bill would prohibit a voluntary contribution designation for the Dog and Cat Euthanasia Prevention Voluntary Tax Contribution Fund from being added on the tax return until another voluntary contribution designation is removed or a space is available.

The bill would require moneys in the Dog and Cat Euthanasia Prevention Voluntary Tax Contribution Fund to be continuously appropriated and to be allocated to the Franchise Tax Board and the Controller for reimbursement of costs and the balance to the Department of Food and Agriculture for public awareness activities, as described, and the distribution of funds for spay and neuter activities, as described. By continuously appropriating these funds, the bill would make an appropriation.

The bill would provide that these provisions would remain in effect only until January 1, 2035, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received during the 2nd and later calendar years after its first appearance on a return will not at least equal the minimum contribution amount, in which case these provisions would be repealed on December 1 of that year.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1983

Author:(Maienschein)

As Amended Ver:August 6, 2024

Majority vote

SUMMARY

Authorizes the addition of the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund (Fund) as a voluntary contribution fund (VCF) on the personal income tax (PIT) return.

Senate Amendments

1. Provide that all moneys in the prior VCF shall continue to be transferred and disbursed in accordance with prior law as it read immediately prior to its repeal.
2. Provide that Fund moneys shall be used to provide grants through the grant program funded by the Pet Lover's Fund, as described in Vehicle Code Section 5168, as specified.
3. Provide that up to 5% of the funds allocated to the Department of Food and Agriculture may be used for administration of the grant program.
4. Provide that any contribution to the Fund shall continue to be transferred and disbursed in accordance with this bill's statutory provisions as in effect immediately prior to repeal.
5. Make conforming and technical changes.

COMMENTS

1. 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.

In 2015, the Legislature authorized the addition of a newly named VCF called the Prevention of Animal Homelessness and Cruelty Fund. [AB 485 (Williams), Chapter 557, Statutes of 2015.] Once again, however, the VCF was designed to raise funds for city and county animal control shelters for spay and neuter activities.

In 2019, SB 637 (McGuire), Chapter 327, Statutes of 2019 modified provisions of the VCF and extended the sunset date until January 1, 2023. As such, the FTB notes that the VCF last appeared on the 2022 PIT return, and received the following contribution amounts in its last three years: $387,790 in 2021; $308,449 in 2022; and $303,304 in 2023.

1. What would this bill do? This bill would authorize a newly named VCF on the PIT return to once again support eligible veterinary facilities in their spay and neuter activities.

According to the Author

The author notes the following in support of this bill:

Annually, hundreds of thousands of animals enter into shelters throughout California. According to experts, spay and neuter programs are the most effective strategies for reducing animal homelessness and controlling the pet population.

With AB 1983, Californians can make a voluntary donation using a portion of their tax return to a contribution fund that offers grants for low-cost/no-cost spay and neuter services. These programs provide an effective means to control stray animal population numbers while safeguarding the health and well-being of the animals.

Arguments in Support

This bill is supported by the Humane Society of the United States, which notes the following:

It is estimated that our local and state governments spend over $400 million on operating animal shelters. That figure does not include the incalculable millions spent by nonprofit rescue organizations that help find loving homes for animals in need. Currently, the only ongoing funding for free or low-cost spay and neuter services are the approximately $400,000 granted out annually through the Pet Lover's License Plate Fund for spay and neuter. Much more is needed to address the ongoing crisis.

AB 1983 will allow compassionate Californians to contribute their tax refunds to help solve the pet overpopulation crisis. Their contribution will alleviate the cost burden for many families that don't have the means to access sterilization services for their pet. For this and the reasons stated above, I respectfully ask you to vote 'aye' on AB 1983.

Arguments in Opposition

None on file

FISCAL COMMENTS

This bill was referred to the Senate Floor pursuant to Senate Rule 28.8.

VOTES:

ASM REVENUE AND TAXATION: 6-0-1

YES: Irwin, Ta, Bains, Gipson, Grayson, Jim Patterson

ABS, ABST OR NV: Luz Rivas

ASM APPROPRIATIONS: 12-0-3

YES: Wicks, Sanchez, Arambula, Bryan, Dixon, Mike Fong, Grayson, Haney, Jim Patterson, Pellerin, Ta, Villapudua

ABS, ABST OR NV: Calderon, Wendy Carrillo, Hart

ASSEMBLY FLOOR: 70-0-10

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Connolly, Davies, Essayli, Flora, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Low, Lowenthal, Maienschein, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk‑Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

ABS, ABST OR NV: Cervantes, Chen, Megan Dahle, Dixon, Vince Fong, Hoover, Lee, Mathis, McCarty, Stephanie Nguyen

SENATE FLOOR: 40-0-0

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

UPDATED

VERSION: August 6, 2024

CONSULTANT: M. David Ruff / REV. & TAX. / (916) 319-2098 FN: 0003855

 THIRD READING  

Bill No: AB 1983

Author: Maienschein (D)

Amended: 5/7/24 in Senate

Vote: 21

SENATE REVENUE AND TAXATION COMMITTEE: 6-0, 6/12/24

AYES: Glazer, Dahle, Bradford, Dodd, Padilla, Skinner

NO VOTE RECORDED: Ashby

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 70-0, 4/4/24 (Consent) - See last page for vote

SUBJECT: Income taxes: voluntary contributions: Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund

SOURCE: Social Compassion in Legislation

DIGEST:

This bill reestablishes the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund.

Senate Floor Amendments of 8/6/24 (1) authorize California Department of Food and Agriculture to use up to 5% of the funds allocated to the department by this Voluntary Contribution Funds (VCF) to administer grants pursuant to the Pet Lover’s Fund and (2) specify that the funds allocated to the Pet Lover’s Fund from this VCF are not subject to the allocation described in Section 5168(d) of the Vehicle Code.

ANALYSIS:

Existing law:

1. Allows taxpayers to contribute money from their own resources in excess of the amount they owe in taxes to Voluntary Contribution Funds (VCF), by checking a box on their state Personal Income Tax (PIT) return.
2. Establishes 18 VCFs on the PIT Return.
3. Generally requires the Franchise Tax Board (FTB) to remove a VCF due to a sunset provision or if the VCF fails to meet the statutory minimum contribution amount.
4. Generally requires the Franchise Tax Board (FTB) to annually determine whether estimated contributions to each VCF will exceed $250,000 to remain on the PIT form.
5. Provides that after a taxpayer contributes to a VCF, the FTB deposits all contributions, minus its administration costs, into a fund named for the VCF.
6. Requires that VCFs meet certain best practices:
7. Include “voluntary tax contribution” in the fund name;
8. Requires the administering agency’s internet website to report specific data related to the usage of the amounts received from a VCF;
9. Be repealed following January 1 of the seventh calendar year following the first appearance of the contribution on the tax return and be repealed as of December 1 of that year.
10. Requires the CDFA to conduct a competitive annual solicitation process to award up to $350,000 in funding under the California Pet Lover’s License Plate grant program.

This bill:

1. Reestablishes the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund (‘the Fund’).
2. Provides that the Fund appears on the PIT tax return when another voluntary contribution designation is removed from the tax return or as soon as space is available, whichever occurs first.
3. Allows the taxpayer a deduction for any contribution made to the Fund for the taxable year in which the contribution is made.
4. Establishes the Fund in the State Treasury.
5. Requires the FTB to notify the State Controller about the amount of money designated by taxpayers to the Fund and for the State Controller to transfer that amount to the Pet Lover’s Fund.
6. Provides the prior Prevention of Animal Homelessness and Cruelty Voluntary Contribution Fund, shall continue to be transferred and disbursed in accordance with prior law.
7. Requires all money transferred to the Fund to be continuously appropriated and allocated to the FTB and State Controller for reimbursement of all administrative costs incurred and to CDFA for allocation.
8. Provides that CDFA must use up to 5% of the VCF funds allocated to them to develop a mechanism to provide ongoing public awareness through activities that will promote the charitable tax deduction for the fund and seek continued contributions.
9. Provides CDFA must use the remaining VCF funds to award grants through the grant process funded by the Pet Lover's Fund.
10. Specifies that Fund money must not be used to supplant state General Fund money for any purpose.
11. Requires CDFA to report on its internet website information provided by local public agencies regarding the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded.
12. Requires the Fund's statutory provisions to remain operative until January 1 of the seventh taxable year following the first year the fund appears on the tax return and is repealed as of December 1 of that year.
13. Provides that this Fund's minimum annual contribution amount is $250,000 and any contribution amounts designated prior to the Fund’s repeal shall continue to be transferred and disbursed.
14. Authorizes CDFA to use up to 5% of the funds allocated to the department by this VCF to administer grants pursuant to the Pet Lover’s Fund.
15. Specifies that the funds allocated to the Pet Lover’s Fund from this VCF are not subject to the allocation described in Section 5168(d) of the Vehicle Code.

Background

The Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund. Versions of this Fund have appeared on the PIT return since 2008. The purpose of these Funds has been to reduce animal homelessness and cruelty by providing free or low-cost spay-neuter services to individual owners of dogs and cats. The Municipal Shelter Spay-Neuter Fund appeared on the 2008 and 2009 PIT returns but failed to meet the stator minimum of $250,000 and was repealed (AB 2291, Mendoza, Chapter 328, Statutes of 2008). In 2011, the Legislature again authorized the Municipal Shelter Spay-Neuter Fund, which failed to meet the statutory minimum amount of contributions of $250,000 in 2012, 2013, and 2014 and was repealed (AB 564, Smyth, Chapter 564, Statutes of 2011). In 2015, the Legislature authorized the Prevention of Animal Homelessness and Cruelty Fund, which has goals and objectives similar to those of its predecessor funds (AB 485, Williams, Chapter 557, Statutes of 2015). In 2019, the Legislature renamed the fund as the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund and extended the sunset date of the fund to January 1, 2023 (AB 637, McGuire, Chapter 637, Statutes of 2019). This fund fared better than its predecessors, receiving $387,790 in 2021, $308,449 in 2022, and $303,304 in 2023. However, SB 637 sunset the fund on January 1, 2023, so it won’t appear on the 2024 form unless extended by the Legislature.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

SUPPORT: (Verified 8/6/24)

Social Compassion in Legislation (source)
1423 Individuals in Support
168 Individuals
A Passion for Paws - Akita Rescue
Animal Rescue Mission
Animal Solutions
Animal Wellness Action
Barks of Love Animal Rescue
Better Together Forever
Buddy's Angels
California Animal Welfare Association
Catmosphere Laguna Foundation
Cultivate Empathy for All
Foods by Jude
Greater Los Angeles Animal Spay Neuter Collaborative
Gurrs and Purrs Rescue
Hanaeleh
Humane Society of The United States; the
Humboldt Humane
Kesar and Cardi LLC
Kindred Spirits Care Farm
Latino Alliance for Animal Care Coalition
Los Angeles Democrats for The Protection of Animals
Love Leo Rescue
Motherlode Feral Cat Alliance
NY 4 Whales
Only Sunshine Sanctuary
Outta the Cage
People Advocating for Animal Welfare
People for Animal Advocacy & Welfare - Contra Costa
Pet Food Institute
Poison Free Malibu
Preetirang Sanctuary
Project Minnie
Sacramento Vegan Society
San Francisco SPCA
Saving Imperial Rescue
Saving Imperial Welfare
Start Rescue
Take Me Home
Terra Advocati
The Animal Coalition Group
The Canine Condition
The German Shepherd Rescue of Orange County
Tippedears
Unchainedtv
Westside German Shepherd Rescue
Women United for Animal Welfare

OPPOSITION: (Verified 8/6/24)

None received

ARGUMENTS IN SUPPORT: According to the author, “Hundreds of thousands of animals enter California shelters yearly. Experts agree that spay-neuter programs are the best way to reduce animal homelessness and manage the pet population. This bill allows Californians to make voluntary contributions from their tax returns to a fund providing grants for low-cost spay and neuter services, which control stray animal numbers and ensure pet health. AB 1983 will increase funding access for spay and neuter programs by allowing nonprofit animal care, control, and shelter organizations to apply for these critical funds.”

ASSEMBLY FLOOR: 70-0, 4/4/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Connolly, Davies, Essayli, Flora, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Low, Lowenthal, Maienschein, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Cervantes, Chen, Megan Dahle, Dixon, Vince Fong, Hoover, Lee, Mathis, McCarty, Stephanie Nguyen

Prepared by: Haley Summers / REV. & TAX. / (916) 651-4117

8/6/24 16:10:42

**** END ****

 THIRD READING 

Bill No: AB 1983

Author: Maienschein (D)

Amended: 5/7/24 in Senate

Vote: 21

SENATE REVENUE AND TAXATION COMMITTEE: 6-0, 6/12/24

AYES: Glazer, Dahle, Bradford, Dodd, Padilla, Skinner

NO VOTE RECORDED: Ashby

ASSEMBLY FLOOR: 70-0, 4/4/24 (Consent) - See last page for vote

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Income taxes: voluntary contributions: Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund

SOURCE: Social Compassion in Legislation

DIGEST:

This bill reestablishes the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund.

ANALYSIS:

Existing law:

1. Allows taxpayers to contribute money from their own resources in excess of the amount they owe in taxes to Voluntary Contribution Funds (VCF), by checking a box on their state Personal Income Tax (PIT) return.
2. Establishes 18 VCFs on the PIT Return.
3. Generally requires the Franchise Tax Board (FTB) to remove a VCF due to a sunset provision or if the VCF fails to meet the statutory minimum contribution amount.
4. Generally requires the FTB to annually determine whether estimated contributions to each VCF will exceed $250,000 to remain on the PIT form.
5. Provides that after a taxpayer contributes to a VCF, the FTB deposits all contributions, minus its administration costs, into a fund named for the VCF.
6. Requires that VCFs meet certain best practices:
7. Include “voluntary tax contribution” in the fund name;
8. Requires the administering agency’s internet website to report specific data related to the usage of the amounts received from a VCF;
9. Be repealed following January 1 of the seventh calendar year following the first appearance of the contribution on the tax return and be repealed as of December 1 of that year.
10. Requires the California Department of Food and Agriculture (CDFA) to conduct a competitive annual solicitation process to award up to $350,000 in funding under the California Pet Lover’s License Plate grant program.

This bill:

1. Reestablishes the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund.
2. Provides that the Fund appears on the PIT tax return when another voluntary contribution designation is removed from the tax return or as soon as space is available, whichever occurs first.
3. Allows the taxpayer a deduction for any contribution made to the Fund for the taxable year in which the contribution is made.
4. Establishes the Fund in the State Treasury.
5. Requires the FTB to notify the State Controller about the amount of money designated by taxpayers to the Fund and for the State Controller to transfer that amount to the Pet Lover’s Fund.
6. Provides the prior Prevention of Animal Homelessness and Cruelty Voluntary Contribution Fund, shall continue to be transferred and disbursed in accordance with prior law.
7. Requires all money transferred to the Fund to be continuously appropriated and allocated to the FTB and State Controller for reimbursement of all administrative costs incurred and to CDFA for allocation.
8. Provides that CDFA must use up to 5% of the VCF funds allocated to them to develop a mechanism to provide ongoing public awareness through activities that will promote the charitable tax deduction for the fund and seek continued contributions.
9. Provides CDFA must use the remaining VCF funds to award grants through the grant process funded by the Pet Lover's Fund.
10. Specifies that Fund money must not be used to supplant state General Fund money for any purpose.
11. Requires CDFA to report on its internet website information provided by local public agencies regarding the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded.
12. Requires the Fund's statutory provisions to remain operative until January 1 of the seventh taxable year following the first year the fund appears on the tax return and is repealed as of December 1 of that year.
13. Provides that this Fund's minimum annual contribution amount is $250,000 and any contribution amounts designated prior to the Fund’s repeal shall continue to be transferred and disbursed.

Background

The Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund. Versions of this Fund have appeared on the PIT return since 2008. The purpose of these Funds has been to reduce animal homelessness and cruelty by providing free or low-cost spay-neuter services to individual owners of dogs and cats. The Municipal Shelter Spay-Neuter Fund appeared on the 2008 and 2009 PIT returns but failed to meet the stator minimum of $250,000 and was repealed (AB 2291, Mendoza, Chapter 328, Statutes of 2008). In 2011, the Legislature again authorized the Municipal Shelter Spay-Neuter Fund, which failed to meet the statutory minimum amount of contributions of $250,000 in 2012, 2013, and 2014 and was repealed (AB 564, Smyth, Chapter 564, Statutes of 2011). In 2015, the Legislature authorized the Prevention of Animal Homelessness and Cruelty Fund, which has goals and objectives similar to those of its predecessor funds (AB 485, Williams, Chapter 557, Statutes of 2015). In 2019, the Legislature renamed the fund as the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund and extended the sunset date of the fund to January 1, 2023 (AB 637, McGuire, Chapter 637, Statutes of 2019). This fund fared better than its predecessors, receiving $387,790 in 2021, $308,449 in 2022, and $303,304 in 2023. However, SB 637 sunset the fund on January 1, 2023, so it won’t appear on the 2024 form unless extended by the Legislature.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

SUPPORT: (Verified 6/25/24)

Social Compassion in Legislation (source)
A Passion for Paws - Akita Rescue
Animal Rescue Mission
Animal Solutions
Animal Wellness Action
Barks of Love Animal Rescue
Better Together Forever
Buddy's Angels
California Animal Welfare Association
Catmosphere Laguna Foundation
Cultivate Empathy for All
Foods by Jude
Greater Los Angeles Animal Spay Neuter Collaborative
Gurrs and Purrs Rescue
Hanaeleh
Humane Society of The United States; the
Humboldt Humane
Kesar and Cardi LLC
Kindred Spirits Care Farm
Latino Alliance for Animal Care Coalition
Los Angeles Democrats for The Protection of Animals
Love Leo Rescue
Motherlode Feral Cat Alliance
NY 4 Whales
Only Sunshine Sanctuary
Outta the Cage
Paaw- People Advocating for Animal Welfare
People for Animal Advocacy & Welfare - Contra Costa
Pet Food Institute
Poison Free Malibu
Preetirang Sanctuary
Project Minnie
Sacramento Vegan Society
San Francisco Spca
Saving Imperial Rescue
Saving Imperial Welfare
Start Rescue
Take Me Home
Terra Advocati
The Animal Coalition Group
The Canine Condition
The German Shepherd Rescue of Orange County
Tippedears
Unchainedtv
Westside German Shepherd Rescue
Women United for Animal Welfare
1423 Individuals

OPPOSITION: (Verified 6/25/24)

None received

ARGUMENTS IN SUPPORT: According to the Author of this bill, “Hundreds of thousands of animals enter California shelters yearly. Experts agree that spay-neuter programs are the best way to reduce animal homelessness and manage the pet population. This bill allows Californians to make voluntary contributions from their tax returns to a fund providing grants for low-cost spay and neuter services, which control stray animal numbers and ensure pet health. AB 1983 will increase funding access for spay and neuter programs by allowing nonprofit animal care, control, and shelter organizations to apply for these critical funds.”

ASSEMBLY FLOOR: 70-0, 4/4/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Connolly, Davies, Essayli, Flora, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Low, Lowenthal, Maienschein, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Cervantes, Chen, Megan Dahle, Dixon, Vince Fong, Hoover, Lee, Mathis, McCarty, Stephanie Nguyen

Prepared by: Haley Summers / REV. & TAX. / (916) 651-4117

6/27/24 15:38:50

**** END ****

 CONSENT  

Bill No: AB 1983

Author: Maienschein (D)

Amended: 5/7/24 in Senate

Vote: 21

SENATE REVENUE AND TAXATION COMMITTEE: 6-0, 6/12/24

AYES: Glazer, Dahle, Bradford, Dodd, Padilla, Skinner

NO VOTE RECORDED: Ashby

ASSEMBLY FLOOR: 70-0, 4/4/24 (Consent) - See last page for vote

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Income taxes: voluntary contributions: Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund

SOURCE: Social Compassion in Legislation

DIGEST:

This bill reestablishes the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund.

ANALYSIS:

Existing law:

1. Allows taxpayers to contribute money from their own resources in excess of the amount they owe in taxes to Voluntary Contribution Funds (VCF), by checking a box on their state Personal Income Tax (PIT) return.
2. Establishes 18 VCFs on the PIT Return.
3. Generally requires the Franchise Tax Board (FTB) to remove a VCF due to a sunset provision or if the VCF fails to meet the statutory minimum contribution amount.
4. Generally requires the FTB to annually determine whether estimated contributions to each VCF will exceed $250,000 to remain on the PIT form.
5. Provides that after a taxpayer contributes to a VCF, the FTB deposits all contributions, minus its administration costs, into a fund named for the VCF.
6. Requires that VCFs meet certain best practices:
7. Include “voluntary tax contribution” in the fund name;
8. Requires the administering agency’s internet website to report specific data related to the usage of the amounts received from a VCF;
9. Be repealed following January 1 of the seventh calendar year following the first appearance of the contribution on the tax return and be repealed as of December 1 of that year.
10. Requires the California Department of Food and Agriculture (CDFA) to conduct a competitive annual solicitation process to award up to $350,000 in funding under the California Pet Lover’s License Plate grant program.

This bill:

1. Reestablishes the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund.
2. Provides that the Fund appears on the PIT tax return when another voluntary contribution designation is removed from the tax return or as soon as space is available, whichever occurs first.
3. Allows the taxpayer a deduction for any contribution made to the Fund for the taxable year in which the contribution is made.
4. Establishes the Fund in the State Treasury.
5. Requires the FTB to notify the State Controller about the amount of money designated by taxpayers to the Fund and for the State Controller to transfer that amount to the Pet Lover’s Fund.
6. Provides the prior Prevention of Animal Homelessness and Cruelty Voluntary Contribution Fund, shall continue to be transferred and disbursed in accordance with prior law.
7. Requires all money transferred to the Fund to be continuously appropriated and allocated to the FTB and State Controller for reimbursement of all administrative costs incurred and to CDFA for allocation.
8. Provides that CDFA must use up to 5% of the VCF funds allocated to them to develop a mechanism to provide ongoing public awareness through activities that will promote the charitable tax deduction for the fund and seek continued contributions.
9. Provides CDFA must use the remaining VCF funds to award grants through the grant process funded by the Pet Lover's Fund.
10. Specifies that Fund money must not be used to supplant state General Fund money for any purpose.
11. Requires CDFA to report on its internet website information provided by local public agencies regarding the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded.
12. Requires the Fund's statutory provisions to remain operative until January 1 of the seventh taxable year following the first year the fund appears on the tax return and is repealed as of December 1 of that year.
13. Provides that this Fund's minimum annual contribution amount is $250,000 and any contribution amounts designated prior to the Fund’s repeal shall continue to be transferred and disbursed.

Background

The Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund. Versions of this Fund have appeared on the PIT return since 2008. The purpose of these Funds has been to reduce animal homelessness and cruelty by providing free or low-cost spay-neuter services to individual owners of dogs and cats. The Municipal Shelter Spay-Neuter Fund appeared on the 2008 and 2009 PIT returns but failed to meet the stator minimum of $250,000 and was repealed (AB 2291, Mendoza, Chapter 328, Statutes of 2008). In 2011, the Legislature again authorized the Municipal Shelter Spay-Neuter Fund, which failed to meet the statutory minimum amount of contributions of $250,000 in 2012, 2013, and 2014 and was repealed (AB 564, Smyth, Chapter 564, Statutes of 2011). In 2015, the Legislature authorized the Prevention of Animal Homelessness and Cruelty Fund, which has goals and objectives similar to those of its predecessor funds (AB 485, Williams, Chapter 557, Statutes of 2015). In 2019, the Legislature renamed the fund as the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund and extended the sunset date of the fund to January 1, 2023 (AB 637, McGuire, Chapter 637, Statutes of 2019). This fund fared better than its predecessors, receiving $387,790 in 2021, $308,449 in 2022, and $303,304 in 2023. However, SB 637 sunset the fund on January 1, 2023, so it won’t appear on the 2024 form unless extended by the Legislature.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

SUPPORT: (Verified 6/25/24)

Social Compassion in Legislation (source)
A Passion for Paws - Akita Rescue
Animal Rescue Mission
Animal Solutions
Animal Wellness Action
Barks of Love Animal Rescue
Better Together Forever
Buddy's Angels
California Animal Welfare Association
Catmosphere Laguna Foundation
Cultivate Empathy for All
Foods by Jude
Greater Los Angeles Animal Spay Neuter Collaborative
Gurrs and Purrs Rescue
Hanaeleh
Humane Society of The United States; the
Humboldt Humane
Kesar and Cardi LLC
Kindred Spirits Care Farm
Latino Alliance for Animal Care Coalition
Los Angeles Democrats for The Protection of Animals
Love Leo Rescue
Motherlode Feral Cat Alliance
NY 4 Whales
Only Sunshine Sanctuary
Outta the Cage
Paaw- People Advocating for Animal Welfare
People for Animal Advocacy & Welfare - Contra Costa
Pet Food Institute
Poison Free Malibu
Preetirang Sanctuary
Project Minnie
Sacramento Vegan Society
San Francisco Spca
Saving Imperial Rescue
Saving Imperial Welfare
Start Rescue
Take Me Home
Terra Advocati
The Animal Coalition Group
The Canine Condition
The German Shepherd Rescue of Orange County
Tippedears
Unchainedtv
Westside German Shepherd Rescue
Women United for Animal Welfare
1423 Individuals

OPPOSITION: (Verified 6/25/24)

None received

ARGUMENTS IN SUPPORT: According to the Author of this bill, “Hundreds of thousands of animals enter California shelters yearly. Experts agree that spay-neuter programs are the best way to reduce animal homelessness and manage the pet population. This bill allows Californians to make voluntary contributions from their tax returns to a fund providing grants for low-cost spay and neuter services, which control stray animal numbers and ensure pet health. AB 1983 will increase funding access for spay and neuter programs by allowing nonprofit animal care, control, and shelter organizations to apply for these critical funds.”

ASSEMBLY FLOOR: 70-0, 4/4/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Connolly, Davies, Essayli, Flora, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Low, Lowenthal, Maienschein, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Cervantes, Chen, Megan Dahle, Dixon, Vince Fong, Hoover, Lee, Mathis, McCarty, Stephanie Nguyen

Prepared by: Haley Summers / REV. & TAX. / (916) 651-4117

6/25/24 13:06:31

**** END ****

SENATE COMMITTEE ON REVENUE AND TAXATION

Senator Steven Glazer, Chair

2023 - 2024 Regular

Income taxes: voluntary contributions: Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund

Reestablishes the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund, operative until January 1 of the seventh taxable year following the first year the fund appears on the tax return, and is repealed as of December 1 of that year.

Background

Voluntary Tax Contribution Funds. California allows taxpayers to contribute money towards voluntary contribution funds (VCFs), commonly called “check-offs,” on their Personal Income Tax (PIT) return. Taxpayers may contribute money to one or more of these VCFs from the excess of the amount they owe in taxes and can claim a deduction for the year the contribution is made. Their contribution to a VCF is only made if their tax payments and credits exceed the taxes they owe to the state. Taxpayers can voluntarily contribute to one or several of the 18 organizations on their PIT return. These organizations include nonprofits that work on disease, natural resource conservation, and more.

The Legislature adds each VCF individually to PIT return forms through legislation. With a few exceptions, VCFs remain on the return until the Franchise Tax Board (FTB) removes the VCF due to a sunset provision or the VCF fails to meet the statutory minimum contribution amount. By September 1 of each calendar year, the FTB must determine whether estimated contributions to specified funds will be less than the minimum contribution amount for that calendar year. If FTB estimates a fund will fail to meet the minimum contribution amount for a calendar year, the fund is repealed on January 1 of the following calendar year. However, some funds do not have a repeal date. In general, the minimum contribution amount is $250,000, beginning in the fund’s second year, with some adjusted for inflation. The VCFs listed below currently do not have a minimum contribution requirement:

• California Firefighters’ Memorial Foundation Fund;
• California Peace Officer Memorial Foundation Fund;
• California Senior Citizen Advocacy Voluntary Tax Contribution Fund; and
• California Seniors Special Fund.

Contributions to voluntary funds in 2023 were as follows:

After a taxpayer contributes to a VCF, the FTB deposits all contributions, minus its administration costs, into a fund named for the VCF. State agencies administer most VCF funds to fund the purpose outlined in the legislation that placed the VCF on the PIT form. For example, the University of California system uses taxpayer contributions from the California Breast Cancer Research VCF to fund the California Breast Cancer Program, which awards funds for breast cancer research and education. For other VCFs, the State Controller’s office allocates taxpayer contributions directly to the private organization without going through an administrative agency. For example, the State Controller’s office directly passes taxpayer contributions to the California Fire Foundation.

Senate Bill 1476. In December 2015, the Senate Committee on Governance and Finance held an oversight hearing on VCFs. The Committee identified best practices and reforms needed to ensure the state allocates taxpayer contributions toward charitable purposes transparently and timely. In 2016, the Legislature enacted SB 1476 (Committee on Governance and Finance), which used those best practices to establish general provisions for all VCFs enacted on or extended after January 2, 2017. Specifically, the bill required of VCFs:

• The words “voluntary tax contribution” must be included in the fund's name;
• The administering agency’s internet website shall report specific data related to the usage of the amounts received via voluntary contribution;
• A voluntary contribution fund must receive a minimum contribution of $250,000 for the second calendar year after it first appears on the tax return and each year after that to remain on the tax return; and
• A voluntary tax contribution would remain in effect only until January 1 of the seventh calendar year following the first appearance of the contribution on the tax return and be repealed as of December 1 of that year.
  

Animal welfare. The COVID-19 pandemic saw a surge in pet adoptions. However, there was a 30% decline in spay-neuter surgeries in 2020. New research finds that almost 3 million neuter/spay surgeries did not take place in the United States due to the pandemic, which, combined with veterinarian and staff shortages, is contributing to widespread overcrowding at pet shelters. According to a survey conducted by the San Francisco Society for the Prevention of Cruelty to Animals, roughly 78% of California shelters cannot consistently provide low-cost spay/neuter services, and an estimated 344,000 state shelter animals do not have access to basic veterinary care.

The Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund. Versions of this Fund have appeared on the PIT return since 2008. The purpose of these Funds has been to reduce animal homelessness and cruelty by providing free or low-cost spay-neuter services to individual owners of dogs and cats. The Municipal Shelter Spay-Neuter Fund, enacted by AB 2291 (Mendoza, 2008), appeared on the 2008 and 2009 PIT returns but failed to meet the stator minimum of $250,000 and was repealed. In 2011, the Legislature again authorized the Municipal Shelter Spay-Neuter Fund (AB 564, Smyth), which failed to meet the statutory minimum amount of contributions of $250,000 in 2012, 2013, and 2014 and was repealed. In 2015, the Legislature authorized the Prevention of Animal Homelessness and Cruelty Fund, which has goals and objectives similar to those of its predecessor funds (AB 485, Williams). In 2019, the Legislature renamed the fund as the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund and extended the sunset date of the fund to January 1, 2023 (SB 637, McGuire). This fund fared better than its predecessors, receiving $387,790 in 2021, $308,449 in 2022, and $303,304 in 2023. However, SB 637 sunset the fund on January 1, 2023, so it won’t appear on the 2024 form unless extended by the Legislature.

CDFA Pet Lover’s Fund grants. The California Department of Food and Agriculture (CDFA) conducts a competitive annual solicitation process to award up to $350,000 in funding under the California Pet Lover’s License Plate grant program. This program is funded by fees associated with the original purchase, annual renewal, and conversion of Pet Lover’s license plates from the California Department of Motor Vehicles. This program aims to help stop pet overpopulation in California by providing funds for spay/neuter services to municipalities and non‐profit organizations in California.

The author wants to reestablish the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund.

Proposed Law

Assembly Bill 1983 reestablishes the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund.

• The bill provides the fund shall appear on the PIT tax return when another voluntary contribution designation is removed from the tax return or as soon as space is available, whichever occurs first.
• Once listed on the return, the measure allows the taxpayer a deduction for any contribution made to the fund for the taxable year in which the contribution is made.
• Establishes the fund in the State Treasury.
• Requires the FTB to notify the State Controller about the amount of money designated by taxpayers to the fund and for the State Controller to transfer that amount to the Pet Lover’s Fund.
• Provides the prior Prevention of Animal Homelessness and Cruelty Voluntary Contribution Fund, as established by AB 485 (Williams 2015), shall continue to be transferred and disbursed in accordance with prior Article 23 (commencing with Section 18901), as that article read immediately prior to its repeal.
• All money transferred to the fund shall be continuously appropriated and allocated to the FTB and State Controller for reimbursement of all administrative costs incurred and to CDFA for allocation as follows:
  • CDFA shall use up to 5% of the funds allocated to them to develop a mechanism to provide ongoing public awareness through activities that will promote the charitable tax deduction for the fund and seek continued contributions.
  • Provides CDFA shall use the remaining funds to award grants through the grant process funded by the Pet Lover's Fund, as described in Vehicle Code Section 5168.
• Fund money shall not be used to supplant state General Fund money for any purpose. Requires CDFA to report on its internet website information provided by local public agencies regarding the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded.
• The fund's statutory provisions shall remain operative until January 1 of the seventh taxable year following the first year the fund appears on the tax return and is repealed as of December 1 of that year.
• Provides that this fund's minimum annual contribution amount is $250,000 and any contribution amounts designated prior to the Fund’s repeal shall continue to be transferred and disbursed.

State Revenue Impact

FTB estimates AB 1983 will result in a state revenue loss of $6,000 in 2025-26 and $6,000 in 2026-27.

Comments

1. Purpose of the bill. According to the author, “Hundreds of thousands of animals enter California shelters yearly. Experts agree that spay-neuter programs are the best way to reduce animal homelessness and manage the pet population. This bill allows Californians to make voluntary contributions from their tax returns to a fund providing grants for low-cost spay and neuter services, which control stray animal numbers and ensure pet health. AB 1983 will increase funding access for spay and neuter programs by allowing nonprofit animal care, control, and shelter organizations to apply for these critical funds.”
   
2. Many worthy causes. Today, the PIT return contains 18 VCFs. The Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund has met its minimum contribution requirement between 2015 and 2022; however, previous versions of the fund have not. Even though the Legislature has added many VCFs on the return, the aggregate contributions to these funds have only marginally increased.
3. SB1476 requirements. AB 1983’s VCF meets the best practices outlined in SB 1476, codified in Section 18873.
   
4. Vital support. Extending this voluntary tax check-off helps stop pet overpopulation in California by providing funds for spay/neuter services to municipalities and non‐profit organizations. This would reduce pet homelessness and cruelty by ensuring veterinary clinics can use their resources to increase pet health in California.
   
5. Related legislation. In addition to this bill, the following bills have been introduced this year:

• SB 1172 (Grove) extends the sunset dates for the California Breast Cancer Voluntary Contribution Fund and California Cancer Research Voluntary Contribution Fund from January 1, 2025 to January 1, 2032.
• AB 2689 (Bains) extends the repeal date of the California Alzheimer’s Disease and Related Dementia Research Voluntary Tax Contribution Fund to January 1, 2032.
• AB 2197 (Addis) would extend the repeal date of the Protect Our Coast and Oceans Voluntary Tax Contribution Fund to January 1, 2032.
• AB 1828 (Waldron) extends the repeal date for the Rare and Endangered Species Preservation Voluntary Tax Contribution Program from January 1, 2025, to January 1, 2032; Extends the sunset date for the Native California Wildlife Rehabilitation Voluntary Tax Contribution Fund to January 1, 2031, and makes changes to the administration of covered grants, as defined.

Assembly Actions

Assembly Revenue & Taxation Committee: 6-0

Assembly Appropriations Committee: 12-0

Assembly Floor: 70-0

Support and Opposition

(6/7/24)

Support: Social Compassion in Legislation (Sponsor)
A Passion for Paws - Akita Rescue
Animal Rescue Mission
Animal Solutions
Animal Wellness Action
Barks of Love Animal Rescue
Better Together Forever
Buddy's Angels
Catmosphere Laguna Foundation
Cultivate Empathy for All
Foods by Jude
Greater Los Angeles Animal Spay Neuter Collaborative
Gurrs and Purrs Rescue
Hanaeleh
Humane Society of The United States
Humboldt Humane
Kesar and Cardi LLC
Kindred Spirits Care Farm
Latino Alliance for Animal Care Coalition
Los Angeles Democrats for The Protection of Animals
Love Leo Rescue
Motherlode Feral Cat Alliance
NY 4 Whales
Only Sunshine Sanctuary
Outta the Cage
People for Animal Advocacy & Welfare - Contra Costa
Poison Free Malibu
Preetirang Sanctuary
Project Minnie
Sacramento Vegan Society
San Francisco SPCA
Saving Imperial Rescue
Start Rescue
Take Me Home
Terra Advocati
The Animal Coalition Group
The Canine Condition
The German Shepherd Rescue of Orange County
Tippedears
Unchainedtv
Westside German Shepherd Rescue
Women United for Animal Welfare
1423 Individuals

Opposition: None submitted.

-- END --

Date of Hearing: March 20, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1983

Author:(Maienschein) – As Amended Ver:March 11, 2024

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill recreates the previously repealed Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund (Fund) program on the personal income tax (PIT) return.

Specifically, this bill:

1. Requires the Franchise Tax Board (FTB) to revise the PIT return form to add the Fund and allows a taxpayer to donate a tax-deductible portion of their PIT refund to the Fund.
2. Establishes the Fund in the State Treasury and requires FTB to notify the State Controller (SCO) of the amount of refund money designated by taxpayers for the Fund. The SCO must transfer this designated amount from the PIT Fund to the Fund.
3. Provides a continuous appropriation from the Fund, as follows:
4. To FTB and SCO for reimbursement of related administrative costs.
5. To the Department of Food and Agriculture (CDFA). CDFA must use up to 5% of funds to develop a mechanism to promote public awareness of charitable tax deductions to the Fund, with the remaining funds distributed via a grant program to local government animal control agencies or shelters to support spay and neuter activities. CDFA must award grants through the grant process funded by the existing Pet Lover’s Fund and authorizes CDFA to consult with the California Department of Public Health (CDPH) to develop and oversee the grant program.
6. Establishes the Fund for seven taxable years following the Fund’s first appearance on the PIT return and requires FTB to estimate annually whether the Fund will receive the minimum contribution amount to remain on the PIT return in the next taxable year.

FISCAL EFFECT:

1. Annual General Fund (GF) revenue loss of approximately $6,000 beginning fiscal year 2025-26. FTB generally assumes $6,000 in GF revenue loss for every $300,000 in voluntary tax contribution fund (VCF) donations, as a taxpayer may deduct such charitable contributions in the next taxable year. Prior to its statutory repeal, an identically named VCF generated more than $300,000 annually in the VCF’s last three years.
2. Annual GF costs of approximately $15,000 (representing 5% of Fund revenues) to CDFA to oversee the grant program, as this bill does not provide for reimbursement of CDFA’s administrative costs.
3. No significant costs to FTB and SCO to administer another VCF program.

COMMENTS:

1. Purpose. The author notes hundreds of thousands of animals enter shelters in California each year, with spay and neuter programs being the “most effective strategies for reducing animal homelessness sand controlling the pet population.” The author intends this bill to allow Californians to help fund “low-cost/no-cost spay and neuter services” by making a voluntary donation through the PIT return. This bill is sponsored by Social Compassion in Legislation and supported by other animal welfare groups.
2. Background.

VCFs. Existing law allows a taxpayer to donate an amount in excess of their PIT liability to one or more VCFs listed on the PIT return (18 VCFs listed on the 2023 return). Generally, a VCF remains on the PIT return until a statutory sunset date, but may drop off the return if FTB determines the fund fails to meet a $250,000 minimum contribution amount.

Nine Lives of the Fund. After prior similarly-purposed VCFs failed to maintain enough support to meet the minimum contribution threshold to remain on the PIT return, AB 485 (Williams), Chapter 557, Statutes of 2015, established the Fund to yet again raise money for local shelter spay and neuter activities. SB 637 (McGuire), Chapter 327, Statutes of 2019, extended the Fund’s sunset date to January 1, 2023. Thus, the Fund last appeared on the 2022 PIT return, raising $303,304 in 2023, $308,449 in 2022, and $387,790 in 2021, prior to the Fund’s statutory repeal.

This bill recreates the Fund on the PIT return for seven taxable years, but modifies how CDFA must allocate funds. Although up to 5% of funds must still be used to promote contributions to the new Fund, the prior Fund required up to $250,000 be used for spay and neuter activities, with any remaining money used by programs to prevent and eliminate cat and dog homelessness or prevent, investigate, and prosecute animal cruelty and neglect. This bill requires all remaining funds after the 5% promotional set-aside be used only for spay and neuter activities. This bill further specifies CDFA must award grants through the existing Pet Lover’s License Plate Program, which also funds spay and neuter activities, but has different eligibility rules. As referenced in FTB’s analysis of this bill, the author may wish to remove this program reference or specify applicable provisions. Lastly, while CDFA administered the prior Fund and currently administers the Pet Lover’s program, the author may wish to consider whether another state entity, such as CDPH’s Veterinary Public Health Section or the Veterinary Medical Board, may be more appropriate to administer the new Fund, as spay and neuter activities are not directly related to CDFA’s mission.

1. Related Legislation. AB 1828 (Waldron) extends, by seven years, the sunset date of two VCFs on the PIT return established to support wildlife. AB 1828 is pending hearing in this committee.

AB 2197 (Addis) extends, by seven years, the sunset date of the Protect Our Coast and Oceans VCF on the PIT return. AB 2197 is pending hearing in this committee.

AB 2689 (Bains) extends, by five years, the sunset date of the California Alzheimer’s Disease and Related Dementia Research VCF on the PIT return. AB 2689 is pending hearing in the Committee on Revenue and Taxation.

AB 3051 (Muratsuchi) states the intent of the Legislature to create a VCF to support the Climate Education and Mitigation-Adaptation Grant Program. AB 3051 is pending referral by the Committee on Rules.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: March 4, 2024

ASSEMBLY COMMITTEE ON REVENUE AND TAXATION

Jacqui Irwin, Chair

ABPCA Bill Id:AB 1983 (

Author:Maienschein) – As Introduced Ver:January 30, 2024

Majority vote. Fiscal committee.

SUBJECT: Income taxes: voluntary contributions: Dog and Cat Euthanasia Prevention Voluntary Tax Contribution Fund

SUMMARY: Authorizes the addition of the Dog and Cat Euthanasia Prevention Voluntary Tax Contribution Fund (Fund) as a voluntary contribution fund (VCF) on the personal income tax (PIT) return. Specifically, this bill:

1. Establishes the Fund in the State Treasury.
2. Allows a deduction for any contribution made to the Fund.
3. Provides that all money transferred to the Fund shall be continuously appropriated and allocated to the:
   1. Franchise Tax Board (FTB) and State Controller for reimbursement of all administrative costs incurred; and,
   2. Department of Food and Agriculture (CDFA) for allocation as follows:
      1. Up to 5% of the funds allocated to CDFA shall be used by the department to develop 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 (VPHS), a society for the prevention of cruelty to animals (SPCA) affiliate, or a humane society affiliate for dissemination, and whatever other activities are deemed necessary and appropriate to promote the Fund; and,
      2. The remaining funds 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 VPHS, for the sole purpose of supporting spay and neuter activities by that entity to prevent and eliminate cat and dog homelessness. A SPCA affiliate or a humane society affiliate is eligible for these funds if the society is under contract to provide all animal control services for a local public agency.
4. Provides that, to be eligible, a SPCA 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 website, and exempt from federal income taxation as an organization described in Internal Revenue Code Section 501(c)(3).
5. Provides that the CDFA shall award grants through the grant process funded by the Pet Lover's Fund, as described in Vehicle Code Section 5168, 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.
6. Authorizes the CDFA to consult with the State Department of Public Health to develop the grant process and the oversight of the grant program.
7. Provides that Fund moneys shall not be used to supplant state General Fund moneys for any purpose.
8. Requires the CDFA to report on its internet website information provided by local public agencies regarding the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded.
9. Provides that the Fund's statutory provisions shall remain in effect only until January 1, 2035, and are repealed as of December 1 of that year.
10. Provides that, notwithstanding Revenue and Taxation Code (R&TC) Section 18873, which requires a $250,000 minimum contribution amount for VCFs, the Fund's minimum contribution about shall be $100,000.

EXISTING LAW:

1. Allows taxpayers to contribute to one or more of 18 VCFs on the 2023 PIT return. (R&TC Section 18730 et seq.)
2. Requires each VCF to meet an annual minimum contribution amount to remain in effect, except for the California Firefighters' Memorial Voluntary Tax Contribution Fund, the California Peace Officer Memorial Foundation Voluntary Tax Contribution Fund, the California Senior Citizen Advocacy Voluntary Tax Contribution Fund, and the California Seniors Special Fund. (R&TC Sections 18801 et seq., 18805 et seq., 18730 et seq., and 18771 et seq.)
   
3. Provides a specific sunset date for each VCF, except for the California Seniors Special Fund and the State Parks Protection Fund. (R&TC Sections 18771 et seq. and 18900.1 et seq.)
4. Requires the statutory provisions establishing a VCF to remain in effect only until January 1 of the seventh calendar year following the VCF's first appearance on the PIT return. (R&TC Section 18873.)

FISCAL EFFECT: The FTB estimates that this bill would reduce General Fund revenues by $6,000 in both Fiscal Year (FY) 2025-26 and FY 2026-27.

COMMENTS:

1. The author has provided the following statement in support of this bill:

Annually, hundreds of thousands of animals enter into shelters throughout California. According to experts, spay and neuter programs are the most effective strategies for reducing animal homelessness and controlling the pet population.

With AB 1983, Californians can make a voluntary donation using a portion of their tax return to a contribution fund that offers grants for low-cost/no-cost spay and neuter services. These programs provide an effective means to control stray animal population numbers while safeguarding the health and well-being of the animals.

1. This bill is sponsored by Social Compassion in Legislation, which notes:

[I]t is estimated that our local and state governments spend over $400 million on operating animal shelters. That figure does not include the incalculable millions spent by nonprofit rescue organizations who pull dogs, cats, and various other animals from shelters before they are euthanized in order to save their lives and find them a loving home. Currently, the only ongoing funding for free or low-cost spay and neuter services are the approximately $400,000 granted out annually through the Pet Lover's License Plate Fund for spay and neuter. Much more is needed.

AB 1983 will allow compassionate Californians to contribute their tax refunds to help solve the pet overpopulation crisis. Their contribution will alleviate the cost burden for many families that currently cannot afford to get their animal sterilized.

1. Proponents of this bill note the following:

During the Covid-19 pandemic, many Californians adopted animals from shelters, but unfortunately many more decided to buy from breeders. In response to this short-term uptick in demand for dogs, breeders pushed their animals to produce more litters while we also saw a surge in "backyard" breeders looking to make a quick dollar by breeding their family animals. Additionally, animal shelters around the state faced service disruptions and resource constraints which continue to affect how they are able to serve their communities.

At the same time as we saw a surge in the breeding of animals, access to affordable and timely veterinarian care dropped. Various factors have contributed to the lack of veterinarian access – a systemic lack of access to veterinary education, a mental health crisis in the veterinary profession pushing some to leave the practice, cost pressures due to inflation and corporate consolidation of veterinary practices, among other factors. The lack of access to affordable veterinary care has contributed to many animals not being spayed or neutered which has exacerbated the pet overpopulation problem.

1. Committee Staff Comments:
   1. 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.
      
   2. 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.

In 2015, the Legislature authorized the addition of a newly named VCF called the Prevention of Animal Homelessness and Cruelty Fund. [AB 485 (Williams), Chapter 557, Statutes of 2015.] Once again, however, the VCF was designed to raise funds for city and county animal control shelters for spay and neuter activities.

In 2019, SB 637 (McGuire), Chapter 327, Statutes of 2019 modified provisions of the VCF and extended the sunset date until January 1, 2023. As such, the FTB notes that the VCF last appeared on the 2022 PIT return, and received the following contribution amounts in its last three years: $387,790 in 2021; $308,449 in 2022; and $303,304 in 2023.

• 1. What would this bill do? This bill would authorize a newly named VCF on the PIT return to once again support city and county animal control agencies in their spay and neuter activities.
  2. Leveling the field: In an effort to promote a fair playing field, the Legislature enacted a series of requirements for new and extended VCFs. Specifically, R&TC Section 18873 was added by SB 1476 (Committee on Governance and Finance), Chapter 597, Statutes of 2016, to bring a degree of uniformity and improvement to the disparate VCF statutes. Among other things, Section 18873 provides the following parameters:
     1. The words "voluntary tax contribution" shall be included as part of the name of the fund;
     2. The website of the fund's administering agency shall report the process for awarding money, the amount of money spent on administration, and an itemization of how program funds were awarded, as specified;
     3. The minimum contribution amount that must be received for the fund to continue appearing on the tax return is $250,000, without subsequent inflation adjustments; and,
     4. The statutory provisions establishing a VCF shall remain in effect only until January 1 of the seventh calendar year following the VCF's first appearance on the return.
  3. Amendments agreed to by author: To comply with the guidelines prescribed above, the author has agreed to take the following amendments in Committee:
     1. The author has agreed to amend subdivision (a) of proposed R&TC Section 18901.3 to strike the reference to the January 1, 2035 sunset date. Instead, the new VCF shall remain in effect only until January 1 of the seventh calendar year following the VCF's first appearance on the PIT return; and,
     2. The author has agreed to replace this bill's current minimum contribution amount of $100,000 with the standard amount of $250,000.
  4. A fund by any other name: This bill proposes to create a newly named VCF along the lines of the previously authorized Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund. Often, contributions to a fund increase with taxpayer familiarity over a number of years. Conversely, some previously successful funds have seen a precipitous decline in support after being renamed. Given that the previous fund enjoyed significant taxpayer support, the author and Committee may wish to consider whether it would be prudent to revert to the fund's old name: the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund.
  5. Technical amendments suggested by Committee staff:
     1. On page 3, line 39, strike "human" and insert "humane"; and,
     2. On page 4, line 10, strike "society" and insert "affiliate".
  6. FTB policy considerations: The FTB notes the following policy consideration in its staff analysis of this bill:

This bill addresses the CDFA awarding grants funded by the Pet Lover's Fund, as described in the Vehicle Code. This program falls outside of the scope of the voluntary contribution fund. The author may wish to amend the bill to remove the reference to the grants funded by the Pet Lover's Fund or include those provisions in the Vehicle Code.

• 1. Previous legislation:
     1. SB 637 (McGuire), Chapter 327, Statutes of 2019, extended until January 1, 2023 the statutory provisions authorizing the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund.
     2. AB 485 (Williams), Chapter 557, Statutes of 2015, authorized the addition of a newly named VCF called the Prevention of Animal Homelessness and Cruelty Fund.

REGISTERED SUPPORT / OPPOSITION:

Support

Social Compassion in Legislation (Sponsor)

Canine Condition

Catmosphere Laguna Foundation

German Shepherd Rescue of Orange County

Hanaeleh

People Advocating for Animal Welfare – Contra Costa

Pet Food Institute

Poison Free Malibu

Saving Imperial Rescue

START Rescue

UnchainedTV

168 individuals

Opposition

None on file

Analysis Prepared by: M. David Ruff / REV. & TAX. / (916) 319-2098