Bill Text: CA AB240 | 2023-2024 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Dogs and cats: California Spay-Neuter Fund.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2024-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB240 Detail]

Download: California-2023-AB240-Introduced.html


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 Division 14.8 of the Food and Agricultural Code, relating to animals, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 240, as introduced, 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.
The bill would establish the California Spay-Neuter Fund in the State Treasury. 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, 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 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. 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’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) 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 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.
(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.
(e) The single most effective mechanism for addressing shelter overpopulation is spaying and neutering.
(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) 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) The demand for low-cost to no-cost spaying and neutering 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 shows that shelter populations explode when spaying and neutering services stop. 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 that many Californians struggle to pay. Many Californians, therefore, do not spay or neuter their animals, leading to costs to the state when unplanned, unwanted animals end up in California’s animal shelters.
(k) Nonprofit animal rescues work tirelessly to ease the burden on public animal shelters.
(l) While the average low-cost estimate to spay and neuter an animal is $160, it costs an average of $2,000 to control, house, vet, adopt out, or euthanize an animal.
(m) For every dollar spent on spaying and neutering, $13 are saved in future control, shelter, vetting, adoption, and euthanasia costs. Spaying and neutering offers a more than tenfold reduction in costs.
(n) Spaying and neutering is a preventative and more cost-effective and humane approach to animal care and control than solely investing in animals once they are in California’s public shelters.
(o) The California Spay-Neuter Fund provides ongoing, adequate, equitable, and accessible spay-neuter services to all California communities, not just a privileged few.
(p) 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.
(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 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.
(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.

32154.
 (a) In administering and overseeing the fund, the department shall:
(1) Offer competitive grants or set allocations, or both, to eligible partners.
(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.
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