I've seen that one at work WAY too often. Get dog A, neglect it, give dog away (or gets HBC) 1-2 years later, then goes out gets dog B, repeat same scenario, gets cat A, repeat same scenario. Very sad!
I agree that paying her would reward her poor treatment of the dog and give her money to go get another pet hoping she'd get more money for it.
Based on our local AC (not a good one by any means) they've basically said that as long as 'someone' (doesn't matter who) is feeding or caring for the animal in lieu of the owner that their hands are tied. Much as it might pain people to let the animal go without food/water/shelter that's the only way they can see neglect. If someone else is taking care of those things for the owner then there would be no neglect based on our AC's laws.
Bookmarks