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AB-240 Dogs and cats: California Spay-Neuter Fund.(2023-2024)

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Date Published: 02/28/2023 09:00 PM
AB240:v98#DOCUMENT

Amended  IN  Assembly  February 28, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 240

Introduced by Assembly Member Kalra

January 13, 2023

An act to add and repeal Part 3 (commencing with Section 32150) of to Division 14.8 of the Food and Agricultural Code, relating to animals, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 240, as amended, Kalra. Dogs and cats: California Spay-Neuter Fund.

(1)The California Department of Tax and Fee Administration (CDTFA) administers various taxes, fees, and surcharges, including, among others, various taxes and fees collected in accordance with the Fee Collection Procedures Law.

This bill would impose a surcharge on retail sellers of dog and cat food, as defined, at a rate of 8 mills imposed upon each dollar of dog and cat food sold in the state. The bill would require the CDTFA to administer and collect this surcharge pursuant to the Fee Collection Procedures Law, as specified. The bill would require the CDTFA to, no later than 45 days after the end of each quarter, report to the Controller the amount collected by the CDTFA pursuant to this surcharge during that quarter, as provided.

Because this bill would expand the scope of the Fee Collection Procedures Law, the violation of which is a crime, this bill would impose a state-mandated local program.

(1) Existing law establishes the Pure Pet Food Act of 1969, which is administered by the State Department of Public Health. Under the act, every person who manufactures a processed pet food, as defined, in California is required to first obtain a license from, and every person who manufactures a processed pet food for import into California from another state is required to first obtain a registration certificate from, the State Department of Public Health. Existing law excludes from the definition of “processed pet food” fresh or frozen pet foods subject to the control of the Department of Food and Agriculture. Under existing law, an annual license or registration certificate shall only be issued when certain conditions are met, including, among others, when the applicant submits to the State Department of Public Health the label that would be attached to the container of each type of processed pet food. Existing law also provides that, unless a different penalty is expressly provided, a violation of any provision of the Food and Agricultural Code is a misdemeanor.
This bill would require the Department of Food and Agriculture to collect, on an annual basis, a charge of $200 from a manufacturer of dog and cat food, as defined, for each label submitted by the manufacturer to the State Department of Public Health for dog and cat food, as provided. The bill would require the State Department of Public Health to, at the request of the Department of Food and Agriculture, provide the Department of Food and Agriculture with the information necessary to administer the above-mentioned provision. The bill would require a manufacturer of dog and cat food that has less than $75,000 in verifiable gross annual sales to instead only pay a single annual charge of $200 to the Department of Food and Agriculture.
The bill would establish the California Spay-Neuter Fund in the State Treasury. Treasury and would require these moneys to be transferred into the fund. The bill would continuously appropriate all moneys in the fund to the Department of Food and Agriculture without regard to fiscal years, as provided, and would require the Controller to, no later than 60 days after the end of each quarter, transfer an amount into the fund from the General Fund that is equal to the amount collected by the CDTFA during that quarter, provided, thereby making an appropriation.
(2) Existing law prohibits a public animal control agency or shelter, society for the prevention of cruelty to animals shelter, humane society shelter, or rescue group from selling or giving away any cat or dog that has not been spayed or neutered, except as provided. Existing law also requires the owner of a nonspayed or unneutered cat or dog that is impounded by a city or county animal control agency or shelter, society for the prevention of cruelty to animals, or humane society to receive a specified fine. Existing law provides that, unless a different penalty is expressly provided, a violation of any provision of the Food and Agricultural Code is a misdemeanor.
This bill would require the Department of Food and Agriculture to undertake certain actions in administering and overseeing the California Spay-Neuter Fund, including, among others, offering competitive grants or set allocations allocations, or both, to public animal shelters, private animal shelters with public contracts, or nonprofits for whom spay-neuter is a primary activity and targeting fund moneys towards the cities and counties with the state’s highest shelter overpopulation or euthanasia rates, as provided. requiring these competitive grants and set allocations to primarily be used to fund spay-neuter services. The bill would prohibit the department’s expenses in administering the fund from exceeding 5% of the moneys deposited into the fund in any fiscal year. The bill would also require the department to promulgate certain rules, including, among others, by establishing administrative, recordkeeping, and reporting requirements related to the receipt of fund moneys, as specified. Because certain provisions of the bill would be located in the Food and Agricultural Code and would not expressly provide a penalty for violation, the bill would expand the scope of a crime and would thereby create a state-mandated local program. The bill would also make related findings and declarations.

The bill’s provisions would remain in effect only until January 1, 2044, and as of that date would be repealed.

(3) This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
(4) Because the provisions of this bill would be located in the Food and Agricultural Code and the violation of these provisions would be a crime, the bill would impose a state-mandated local program.

(4)The

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) California has long had a homeless animal overpopulation problem, too often leading to overcrowded shelters despite cities and counties across the state collectively investing more than $378,000,000 $400,000,000 annually in operating our public animal shelters.
(b) Homeless animal overpopulation has been exacerbated by the COVID-19 pandemic, resulting in overpopulated shelters having to euthanize family-friendly animals solely for space.

(c)California took in 472,840 homeless cats and dogs in 2021. Of those animals, 37,021 were tragically euthanized.

(c) As recently as 2016, California was tragically euthanizing approximately 160,000 dogs and cats. Many of these were unnecessary deaths only due to shelter overpopulation.
(d) The state’s overall save rate of 82.7 percent is low for this day and age. California has the second-highest shelter animal kill rate in the nation, behind Texas. single most effective mechanism for addressing shelter overpopulation is spaying and neutering.
(e) The single most effective mechanism for addressing shelter overpopulation is spaying and neutering. state does not invest enough in necessary spay and neuter services. Although the Pet Lover’s License Plate Program is offering $488,000 for the 2023 grant application cycle, it does not come close to meeting the state’s spay and neuter funding needs.

(f)The state invests little to nothing in stemming the tide of animals coming into shelters in the first place, spending approximately $184,000 per year or 0.05 percent of what is invested across the state in managing animals once they’re already in our shelters.

(g)

(f) According to the article “COVID-19 Associated Reduction in Elective Spay-Neuter Surgeries for Dogs and Cats,” the rise in subsidized access to spaying and neutering helped drive the euthanasia of shelter pets in the United States down from an estimated 13.5 million shelter pets in 1973 to 1.5 million shelter pets in 2019.

(h)

(g) The demand for low-cost to and no-cost spaying spay and neutering neuter services far outstrips supply, demonstrating the strong desire of Californians to spay and neuter their animal companions.

(i)The over two-year hiatus on spaying and neutering as a result of the COVID-19 pandemic has clearly demonstrated the impact that spaying and neutering has on shelter populations. Research

(h) Research shows that shelter populations explode when spaying spay and neutering neuter services stop. stop, a finding that has been demonstrated many times over by the spay and neuter hiatus caused by the COVID-19 pandemic. Alternatively, overpopulation can be effectively and humanely managed with ongoing, adequate investments in spaying and neutering.

(j)The average cost to spay and neuter an animal via private veterinary clinics ranges from $400 to $1,000, a cost

(i) Without assistance, it can cost up to $550 to spay or neuter an animal, a price that many Californians struggle to pay. Many Californians, therefore, Consequently, many Californians do not spay or neuter their animals, leading to costs to the state excessive state expenses when unplanned, unwanted animals inevitably end up in California’s public animal shelters.

(k)

(j) Nonprofit animal rescues work tirelessly to ease the burden on public animal shelters.

(l)

(k) While the average low-cost estimate to spay and or neuter an animal is $160, it costs an average of $2,000 to control, house, vet, care for, adopt out, or and/or euthanize an animal.

(m)

(l) For every dollar spent on spaying and neutering, $13 many more are saved in future control, shelter, vetting, veterinary care, adoption, and euthanasia costs. Spaying and neutering offers a In fact, spaying and neutering could potentially offer more than a tenfold reduction in costs.

(n)

(m) Spaying and neutering is a preventative and more cost-effective and humane approach to animal care and control than solely only investing in animals once they are in California’s after they have arrived at public shelters.

(o)

(n) The California Spay-Neuter Fund provides will provide ongoing, adequate, equitable, and accessible spay-neuter spay and neuter services to all California communities, not just a privileged few. few, and, in doing so, will help establish spay and neuter services as one of the state’s equity priorities.

(p)

(o) Therefore, it is in the state’s interest to establish the California Spay-Neuter Fund.

SEC. 2.

 Part 3 (commencing with Section 32150) is added to Division 14.8 of the Food and Agricultural Code, to read:

PART 3. The California Spay-Neuter Fund

32150.
 For purposes of this part, the following terms have the following meanings:
(a) “Department” means the Department of Food and Agriculture.
(b) “Dog and cat food” means any commercial feed prepared and distributed for consumption by dogs or cats, including, but not limited to, treats. a food for dogs or cats, or both, that has been prepared by heating, drying, semidrying, canning, or by a method of treatment prescribed by regulation of the State Department of Public Health. The term includes special diet, health foods, supplements, treats, and candy for dogs or cats, or both, but does not include fresh or frozen foods for dogs or cats, or both, subject to the control of the Department of Food and Agriculture.
(c) “Eligible partner” means public animal shelters, private animal shelters with public contracts, or nonprofits for whom spay-neuter is a primary activity.
(d) “Fund” means the California Spay-Neuter Fund established pursuant to Section 32152.
(e) “Set allocation” means an allocation of fund moneys, using a formula developed by the department, to eligible partners requesting fund moneys.
(f) “Spay-neuter” means low-cost to no-cost spaying and neutering spay and neuter surgeries conducted in the state.

32151.
 It is the intent of the Legislature that fund moneys are disbursed to eligible partners to reduce all of the following:
(a) The overpopulation of unwanted or homeless dogs and cats, including feral or community cats.
(b) Animal shelter overpopulation.
(c) The ongoing costs associated with managing animal shelters.
(d) The state’s euthanasia rates for dogs and cats, including feral or community cats.

32152.
 (a) The California Spay-Neuter Fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are continuously appropriated to the department without regard to fiscal years for the purposes of this part.

(b)The Controller shall, no later than 60 days after the end of each quarter, transfer an amount into the fund from the General Fund that is equal to the amount collected by the California Department of Tax and Fee Administration pursuant to Section 32153 during that quarter.

(b) Moneys collected pursuant to Section 32153 shall be transferred into the fund.
(c) The Treasurer, in consultation with the department, shall invest moneys contained in the fund not needed to meet current obligations in the same manner as other public funds are invested. All interest accruing from any investment pursuant to this subdivision shall be deposited into, and credited to, the fund.

32153.

(a)A surcharge is hereby imposed on retail sellers of dog and cat food at a rate of eight mills ($0.008) imposed upon each dollar of dog and cat food sold in the state.

(b)The California Department of Tax and Fee Administration shall administer and collect the surcharges imposed by this section pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code). For purposes of this section, the references in the Fee Collection Procedures Law to “fee” shall include the surcharges imposed by this section, and references to “feepayer” shall mean any person liable for the payment of the surcharges imposed under this section and collected pursuant to that law.

(c)The California Department of Tax and Fee Administration may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this section, including, but not limited to, collections, reporting, refunds, and appeals.

(d)The surcharges imposed by this section are due and payable to the California Department of Tax and Fee Administration quarterly on or before the last day of the month next succeeding each quarter.

(e)On or before the last day of the month following each quarter, a return for the preceding quarter shall be filed by retail sellers of dog and cat food with the California Department of Tax and Fee Administration using electronic media. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the California Department of Tax and Fee Administration.

(f)The California Department of Tax and Fee Administration shall, no later than 45 days after the end of each quarter, report to the Controller the amount collected by the California Department of Tax and Fee Administration pursuant to this section during that quarter.

32153.
 (a) (1) The department shall collect, on an annual basis, a charge of two hundred dollars ($200) from a manufacturer of dog and cat food for each label submitted by the manufacturer to the State Department of Public Health pursuant to subdivision (c) of Section 113070 of the Health and Safety Code for dog and cat food.
(2) The State Department of Public Health shall, at the request of the department, provide the department with the information necessary to administer paragraph (1).
(b) Notwithstanding paragraph (1) of subdivision (a), a manufacturer of dog and cat food that has less than seventy-five thousand dollars ($75,000) in verifiable gross annual sales shall instead only be required to pay a single annual charge of two hundred dollars ($200) to the department.

32154.
 (a) In administering and overseeing the fund, the department shall:
(1) Offer competitive grants or set allocations, or both, to eligible partners. Both competitive grants and set allocations shall primarily be used by eligible partners to fund spay-neuter services.
(2) Determine, with stakeholder input, the most strategic method of allocating fund moneys to eligible partners.
(3) Target fund moneys towards the cities and counties with the state’s highest shelter overpopulation or euthanasia rates, or both.
(4) Require all eligible partners receiving fund moneys to annually report outcomes to the department, including, but not limited to, information on how fund moneys were used, data on the number and type of surgeries provided, and the ratio of kennel space to animal intakes at certain time intervals.
(5) Publish an annual report on the department’s internet website summarizing the information provided to the department pursuant to paragraph (4).
(b) In administering and overseeing the fund, the department may solicit and accept into the fund private donations, grants, and other moneys for purposes consistent with this part.
(c) If the department offers set allocations to eligible partners, the department shall review its formula every three years and adjust the formula if necessary.
(d) The department’s expenses in administering the fund shall not exceed 5 percent of the moneys deposited into the fund in any fiscal year.

32155.
 The department shall promulgate rules consistent with this part to:
(a) Establish parameters regarding the eligible partners that qualify for fund moneys.
(b) Establish procedures and requirements for offering grants or set allocations, or both, and for disbursing fund moneys to eligible partners.
(c) Establish parameters regarding the use of fund moneys by eligible partners.
(d) Establish administrative, recordkeeping, and reporting requirements for eligible partners receiving fund moneys.

32156.

This part shall remain in effect only until January 1, 2044, and as of that date is repealed.

SEC. 3.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.