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SB-637 Personal income taxes: voluntary contributions: Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund.(2019-2020)

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Date Published: 09/23/2019 09:00 PM
SB637:v96#DOCUMENT

Senate Bill No. 637
CHAPTER 327

An act to amend Sections 18901, 18901.1, 18901.2, and 18901.3 of, and to amend the heading of Article 23 (commencing with Section 18901) of Chapter 3 of Part 10.2 of Division 2 of, the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor.

[ Approved by Governor  September 20, 2019. Filed with Secretary of State  September 20, 2019. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 637, McGuire. Personal income taxes: voluntary contributions: Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund.
Existing law allows an individual, until specified conditions are met, or until January 1, 2022, to designate on the individual’s personal income tax return that a specified amount in excess of the individual’s tax liability be contributed to the Prevention of Animal Homelessness and Cruelty Fund. Existing law requires that money contributed to the fund, upon appropriation by the Legislature, be allocated to, among others, the Department of Food and Agriculture to, among other things, through the distribution of competitive grants, distribute up to $250,000 to 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. Existing law requires that contributions to the Prevention of Animal Homelessness and Cruelty Fund equal or exceed a $250,000 minimum contribution amount for a calendar year, which is required to be adjusted for inflation, in order to continue appearing on the tax return.
Under existing law, there are general administrative provisions applicable to these voluntary contributions, which, among other things, provide for the disbursement of contributions following repeal of the fund provisions and require undesignated funds to be transferred to the General Fund.
Existing law requires any new or extended voluntary contribution to include the words “voluntary tax contribution” in the name of the fund, to require the administering agency to include specified information about the fund on its internet website, to continuously appropriate from the fund the contributions made to the administering agency, and to set a minimum contribution amount for the continuation of any voluntary tax contribution on the tax return form and a generally applicable repeal date for a voluntary tax contribution.
This bill would rename the fund as the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund and continuously appropriate those funds to be allocated as required by existing law. This bill would additionally permit a society for the prevention of cruelty to animals affiliate or a humane society affiliate that is under contract to provide all animal control services for a local public agency to receive funds from the distribution of up to $250,000 described above, from contributions received on and after January 1, 2020. The bill also would require the department to report on its internet website specified information regarding, among other things, the process for awarding money. The bill would repeal the provisions related to the fund on January 1, 2023, or on a specified earlier date if conditions relating to the minimum contribution amount are not met, and would delete the provisions requiring the minimum contribution amount to be adjusted for inflation. By continuously appropriating the funds described above, the bill would make an appropriation.
Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The heading of Article 23 (commencing with Section 18901) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code is amended to read:
Article  23. Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund

SEC. 2.

 Section 18901 of the Revenue and Taxation Code is amended to read:

18901.
 (a) An individual may designate on the tax return that a contribution in excess of the tax liability, if any, be made to the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund established by Section 18901.1. That designation is to be used as a voluntary contribution on the tax return.
(b) The contributions shall be in full dollar amounts and may be made individually by each signatory on a joint return.
(c) A designation under subdivision (a) shall be made for a taxable year on the original return for that taxable year and once made is irrevocable. If payments and credits reported on the return, together with any other credits associated with the taxpayer’s account, do not exceed the taxpayer’s liability, the return shall be treated as though no designation has been made.
(d) When another voluntary contribution designation is removed from the tax return, or as soon as space is available, whichever occurs first, the Franchise Tax Board shall revise the form of the return to include a space labeled the “Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution 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).

SEC. 3.

 Section 18901.1 of the Revenue and Taxation Code is amended to read:

18901.1.
 There is hereby established in the State Treasury the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution 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 Voluntary Tax Contribution Fund. The Controller shall transfer from the Personal Income Tax Fund to the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18901 for payment into that fund.

SEC. 4.

 Section 18901.2 of the Revenue and Taxation Code is amended to read:

18901.2.
 (a) Notwithstanding Section 13340 of the Government Code, all moneys transferred to the Prevention of Animal Homelessness and Cruelty Voluntary Tax Contribution Fund, shall be continuously appropriated and 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. From contributions received on and after January 1, 2020, a society for the prevention of cruelty to animals 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.
(C) The remaining moneys, if any, shall be used by programs designed to prevent and eliminate cat and dog homelessness or programs for the prevention, investigation, and prosecution of animal cruelty and neglect. The grants are to be distributed to a city, county, or city and county animal control agency or shelter that is current on its reporting requirements to the State Department of Public Health, Veterinary Public Health Section, a society for the prevention of cruelty to animals affiliate, or a humane society affiliate. A society for the prevention of cruelty to animals affiliate or a humane society affiliate shall be a California corporation, duly incorporated in the State of California, in active status, as described on the business search page of the Secretary of State’s internet website, 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 Voluntary Tax Contribution Fund money shall be used to supplant state General Fund money for any purpose.
(e) The Department of Food and Agriculture shall 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.

SEC. 5.

 Section 18901.3 of the Revenue and Taxation Code is amended to read: