STAND. COM. REP. NO. 303

Honolulu, Hawaii

RE: S.B. No. 1023

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Agriculture and Environment, Transportation and Culture and the Arts, and Energy and Intergovernmental Affairs, to which was referred S.B. No. 1023 entitled:

"A BILL FOR AN ACT RELATING TO THE SPAYING AND NEUTERING OF ANIMALS,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Spay and Neuter Special Fund (Special Fund) to reduce pet overpopulation and the reproduction of free-roaming cats;

(2) Allow each taxpayer to designate $5 of their state income tax refund to the Special Fund; and

(3) Establish a special number plate to support the Special Fund.

Your Committees received testimony in support of this measure from the Hawaii Invasive Species Council; Big Island Invasive Species Committee; The Humane Society of the United States; Hawaiian Humane Society; Popoki Place Oahu Cat Sanctuary; Animal Rights Hawaiʻi; Environmental Caucus of the Democratic Party of Hawaiʻi; Catsnip Advocats; Kohala Animal Relocation and Education Service; Action 4 Animals Hawaii; Aloha Animal Advocates; Pele Lani Farm LLC; PETFIX Spay and Neuter; Maui Humane Society; The Haven Cat Sanctuary Company; Hawaii Reef and Ocean Coalition; For Forgotten Felines Inc.; Animal Interfaith Alliance in Britain; Kitty Charm Farm; James Campbell High's Sabers4Animals Club; and one hundred thirty-three individuals.

Your Committees received testimony in opposition to this measure from Abaykitties and three individuals.

Your Committees received comments on this measure from the Department of Budget and Finance, Department of Land and Natural Resources, Department of Taxation, and Tax Foundation of Hawaii.

Your Committees find that the overpopulation of certain animals, such as pet and free-roaming cats, contributes to widespread suffering of those animals in the State. According to testimony received by your Committees, feral cats are one of the most devastating predators of Hawaii's unique wildlife, especially endangered native birds. In addition to preying on native wildlife, feral cats also spread a potentially toxic parasite (Toxoplasma gondii) that can contaminate terrestrial, freshwater, and marine environments and negatively impact birds and mammals, including humans. Your Committees further find that although spaying and neutering are humane solutions that can help to manage and reduce animal overpopulation, private veterinary clinics are no longer able to provide low-cost spay and neuter services at previous levels due to rising business costs and local nonprofits that offer these sterilization services do not have the resources to meet demand. This measure provides convenient ways for Hawaii taxpayers to voluntarily contribute funds to prevent the overpopulation of pets and free-roaming cats while lowering the cost of animal care and control, thereby reducing public health concerns and decreasing threats to wildlife and the environment.

Your Committees have heard the concerns raised by the Department of Budget and Finance that it does not possess the subject matter expertise on spaying and neutering animals or any other related veterinary services and that, should this measure pass, additional staff and funding would be necessary to administer the Special Fund. Your Committees note that the counties have historically been responsible for animal control functions and that appropriating funds to the counties for spaying and neutering services and associated veterinary care could allow for the allocation of these funds to entities best able to perform these services. Your Committees find that these issues on the alternative management and distribution methods of the Special Fund merit further consideration and examination by your Committee on Ways and Means, should it choose to deliberate on this measure.

Your Committees have amended this measure by:

(1) Moving the language allowing each taxpayer to designate $5 of their state income tax refund to the Special Fund to section 235-102.5, Hawaii Revised Statutes, which authorizes other check off options for income tax purposes;

(2) Changing the appropriation to an unspecified amount;

(3) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

Your Committees note that this measure, as amended, contains unspecified appropriation amounts. Should your Committee on Ways and Means choose to deliberate on this measure, your Committees respectfully request that it consider inserting an appropriation amount of $50,000 to be deposited into and out of the Spay and Neuter Special Fund to reduce pet overpopulation and the reproduction of free-roaming cats by providing spaying and neutering surgery and associated veterinary care.

As affirmed by the records of votes of the members of your Committees on Agriculture and Environment, Transportation and Culture and the Arts, and Energy and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1023, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1023, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Environment, Transportation and Culture and the Arts, and Energy and Intergovernmental Affairs,

________________________________ CHRIS LEE, Chair	________________________________ MIKE GABBARD, Chair
	________________________________ GLENN WAKAI, Chair