SB1023 HD1

SECTION 1. The legislature finds that animal overpopulation contributes to animal suffering in Hawaii. Spaying and neutering pets are proven ways to reduce pet overpopulation and euthanasia rates. The legislature further finds that the humane reduction of the free-roaming cat population is in the best interest of cats, wildlife, the environment, and humans. However, the State does not contribute funds to address these issues.

 Accordingly, the purpose of this Act is to establish and appropriate funds into and out of a spay and neuter special fund to reduce pet overpopulation and the reproduction of free-roaming cats and establish various revenue and fundraising sources for the special fund.

SECTION 2. Chapter 143, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§143- Spay and neuter special fund. (a) There is established in the state treasury the spay and neuter special fund, to be administered by the department of budget and finance.  Moneys received by the department of budget and finance from:

(1) State income tax refund designations to the special fund pursuant to section 235-102.5(e);

(2) Revenue generated by the fundraising fees from special number plates pursuant to section 249- ; and

(3) Legislative appropriations, private gifts or donations, and other sources,

shall be deposited into the special fund. All interest earned or accrued on moneys deposited into the special fund shall become part of the special fund.

(b) Moneys in the special fund shall be expended to reduce pet overpopulation and the reproduction of free-roaming cats by providing spaying and neutering surgery and associated veterinary care; provided that the uses and expenditures of moneys in the special fund shall follow the eligibility criteria established by the advisory committee established under subsection (c).

(c)  There is established an advisory committee to assist the department of budget and finance in establishing the eligibility criteria and procedures for disbursements from the special fund.

The advisory committee shall consist of five members to be selected by the director of finance and shall include the following:

(1)  One representative of the department of budget and finance;

(2)  One representative of the Hawaii Animal Welfare Association or its successor organization, who shall be invited to participate;

(3)  At least one representative of the Hawaii Veterinary Medical Association, who shall be invited to participate; and

(4)  At least one member from a Hawaii-based, private, non-profit animal-welfare organization, who shall be invited to participate.

The advisory committee shall select a chairperson from among its members.   All members of the advisory committee shall be residents of the State and shall serve three-year terms.   All members shall have an active interest in humanely reducing pet overpopulation and reducing the number of free-roaming cats in the State.

(d)  The advisory committee shall submit an annual report to the director of finance, in a form prescribed by the director, that identifies the total amount of funds that were disbursed from the special fund during the previous fiscal year and the amount of funds to be carried over to the next fiscal year. The advisory committee shall submit the report to the director of finance within ninety days after the close of each fiscal year.

(e) The members of the advisory committee shall serve without pay but shall be reimbursed for their actual and necessary expenses, including travel expenses, incurred in carrying out their duties."

SECTION 3. Chapter 249, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§249- Special number plates; spay and neuter special fund; authorized. (a) Notwithstanding any law to the contrary, the director of finance shall issue to any registered owner of a motor vehicle, who is a resident of the State, upon completed application and payment of the required fees, a special number plate for the registered owner's motor vehicle supporting the spay and neuter special fund.

(b) The director of finance of the city and county of Honolulu, in consultation with the directors of finance of the counties of Hawaii, Kauai, and Maui; chiefs of police of the city and county of Honolulu and the counties of Hawaii, Kauai, and Maui; and advisory committee of the spay and neuter special fund, shall establish a special number plate design that:

(1) Contains words, images, or both, that indicate the special number plate is issued to recognize the spaying and neutering of animals;

(2) Is similar in shape and size to the uniform state number plate prescribed by law; and

(3) Does not obstruct the visibility of the numbers or letters or any other information that is required by law to be on a number plate and is readily identifiable and distinguishable under actual traffic conditions.

(1) Infringe upon or otherwise violate any trademark, trade name, service mark, copyright, or other proprietary or property right;

(2) Represent any obscene or degrading image, idea, word, or phrase;

(3) Advertise or endorse a product, brand, or service that is provided for sale;

(4) Promote any religious belief; or

(5) Promote any philosophy based on prejudice or that is contrary to state civil rights laws.

(d) Each special number plate shall be securely fastened to the motor vehicle in lieu of the uniform state number plate.

(e) The director of finance shall charge a special number plate fee at least equal to the county's cost of providing the special number plate and administrative costs, if any, plus a fundraising fee to be determined by the director of finance in consultation with the advisory committee of the spay and neuter special fund. The fundraising fee shall be in addition to any other state or county fees collected for a motor vehicle registration or license plate.

(f) The director of finance may charge an additional fundraising fee of the same or a different amount as the fundraising fee established pursuant to subsection (e), for the renewal of a special number plate.  If an additional fundraising fee is implemented pursuant to this subsection, the director of finance shall revoke the special number plate of any registered owner of a motor vehicle who fails to pay the additional fundraising fee imposed by this subsection.

(g) The revenue generated by the fundraising fees, or a portion of the revenue generated by the fundraising fees as determined by the director of finance, shall be deposited into the spay and neuter special fund established by section 143- .

(h) The director of finance may revoke all special number plates issued pursuant to this section if the total number of registered owners of motor vehicles that obtain the special number plates is less than one hundred fifty within three years of issuance of the first special number plate.

(i) Nothing in this section shall be construed to apply to any plates issued pursuant to section 249-9.2 or 249-9.5.

(j) As used in this section, unless a different meaning appears from the context, "special number plate" means a license plate that recognizes the spaying and neutering of animals."

SECTION 4. Section 235-102.5, Hawaii Revised Statutes, is amended to read as follows:

"§235-102.5 Income check-off authorized. (a) Any individual whose state income tax liability for any taxable year is $3 or more may designate $3 of the liability to be paid over to the Hawaii election campaign fund, any other law to the contrary notwithstanding, when submitting a state income tax return to the department. In the case of a joint return of a [~~husband and wife~~] married couple having a state income tax liability of $6 or more, each spouse may designate that $3 be paid to the fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. An explanation shall be included [~~which~~] that clearly states that the check-off does not constitute an additional tax liability. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for [~~such~~] that taxable year. A designation once made whether by an original or amended return may not be revoked.

(b) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $2 or more may designate $2 of the refund to be deposited into the school-level minor repairs and maintenance special fund established by section 302A-1504.5, when submitting a state income tax return to the department. In the case of a joint return of a [~~husband and wife~~] married couple having a state income tax refund of $4 or more, each spouse may designate that $2 be deposited into the special fund. The director of taxation shall revise the individual state income tax return form to allow the designation of contributions to the special fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for [~~such~~] that taxable year. A designation once made, whether by an original or amended return, may not be revoked.

(c) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $5 or more may designate $5 of the refund to be paid over to the libraries special fund established by section 312-3.6, when submitting a state income tax return to the department. In the case of a joint return of a married couple having a state income tax refund of $10 or more, each spouse may designate that $5 be deposited into the special fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for that taxable year. A designation once made, whether by an original or amended return, may not be revoked.

(d) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $5 or more may designate $5 of the refund to be paid over as follows:

(1) One-third to the Hawaii children's trust fund under section 350B-2; and

(2) Two-thirds to be divided equally among:

(A) The domestic violence and sexual assault special fund under the department of health in section 321-1.3;

(B) The spouse and child abuse special fund under the department of human services in section 346-7.5; and

When designated by a taxpayer submitting a state income tax return to the department, the department of budget and finance shall allocate the moneys among the several funds as provided in this subsection. In the case of a joint return of a [~~husband and wife~~] married couple having a state income tax refund of $10 or more, each spouse may designate that $5 be paid over as provided in this subsection. The director of taxation shall revise the individual state income tax form to allow the designation of contributions pursuant to this subsection on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for [~~such~~] that taxable year. A designation once made, whether by an original or amended return, may not be revoked.

(e) Notwithstanding any law to the contrary, any individual whose state income tax refund for any taxable year is $5 or more may designate $5 of the refund to be paid over to the spay and neuter special fund established by section 143- , when submitting a state income tax return to the department. In the case of a joint return of a married couple having a state income tax refund of $10 or more, each spouse may designate that $5 be deposited into the special fund. The director of taxation shall revise the individual state income tax form to allow the designation of contributions to the fund on the face of the tax return and immediately above the signature lines. If no designation was made on the original tax return when filed, a designation may be made by the individual on an amended return filed within twenty months and ten days after the due date for the original return for that taxable year. A designation once made, whether by an original or amended return, shall not be revoked."

  SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into  the spay and neuter special fund established by section 143- , Hawaii Revised Statutes.

SECTION 6. There is appropriated out of the spay and neuter special fund established by section 143- , Hawaii Revised Statutes, the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 as a grant-in-aid to the counties to reduce pet overpopulation and the reproduction of free-roaming cats by providing spaying and neutering surgery and associated veterinary care.

The sums appropriated shall be expended by the counties for the purposes of this Act.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 3000; provided that section 4 of this Act shall apply to taxable years beginning after December 31, 2024.

THE SENATE	S.B. NO.	1023
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII		H.D. 1