SB394

SECTION 1. The legislature finds that overpopulation contributes to animal suffering in Hawaiʻi. Spaying and neutering pets are proven ways to reduce pet overpopulation and euthanasia rates. The legislature also finds that the humane reduction of the free-roaming cat population is in the 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:

(1) Establish a spay and neuter special fund; and

(2) Allow funds from an income tax check-off to be deposited into the special fund.

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

"§143-A 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.

(b) 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); and

(2) Appropriations or other moneys made available,

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.

(c) 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 pursuant to section 143-B.

§143-B Spay and neuter special fund advisory committee; eligibility criteria and procedures; annual report. (a) 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 spay and neuter special fund established pursuant to section 143-A; provided that, in establishing the eligibility criteria, priority shall be given to organizations that specialize in trap-neuter-release practices.

(b) The advisory committee members shall be selected by the director of finance and shall include the following:

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

(2) One representative of the Hawaiian Humane Society or its successor organization, who shall be invited to participate;

(3) One representative of the Hawaii Veterinary Medical Association, who shall be invited to participate;

(4) One member from a Hawaii-based private, non-profit animal welfare organization, who shall be invited to participate;

(5) One member from an environmental organization, such as The Nature Conservancy or the Sierra Club of Hawaii, who shall be invited to participate; and

(6) One member from the general public, 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.

(c) 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.

(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 in 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."

SECTION 3. 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 deposited into the spay and neuter special fund established by section 143-A, 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 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $50,000 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.

SECTION 5. There is appropriated out of the spay and neuter special fund the sum of $50,000 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 for providing spaying and neutering surgery and associated veterinary care to free-roaming cats in the State.

The sums appropriated shall be expended by the department of budget and finance for the purposes of this Act.

SECTION 6. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in 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, 2025; provided that section 3 shall apply to taxable years beginning after December 31, 2024.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	394
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII