In this subtitle the following words have the meanings indicated. “Advisory Board” means the Spay/Neuter Fund Advisory Board established under § 2–1604 of this subtitle. “Fund” means the Spay/Neuter Fund established under § 2–1602 of this subtitle.

There is a Spay/Neuter Fund in the Department. The purpose of the Fund is to reduce animal shelter overpopulation and cat and dog euthanasia rates by financing grants to local governments and animal welfare organizations for programs that most efficiently and effectively facilitate and promote the provision of spay and neuter services for cats and dogs in the State. The Department shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: Revenue distributed to the Fund from the fee established under § 2–1603 of this subtitle; Money appropriated in the State budget to the Fund; Any investment earnings of the Fund; and Any other money from any other source accepted for the benefit of the Fund. The Fund may be used only as described in this subsection. The Fund may be used to finance selected competitive grant proposals submitted by a local government or an animal welfare organization to facilitate and promote the provision of spay and neuter services for cats and dogs. The Department shall solicit and evaluate competitive grant proposals. A competitive grant proposal: Shall target low–income communities and populations to the maximum extent possible and detail how that goal is to be accomplished; May target feral cat populations if the Department determines that this targeting does not violate local law; Shall efficiently and effectively facilitate and promote the provision of spay and neuter services for cats and dogs; and May include public education and outreach components. The Department shall evaluate a competitive grant proposal based on: The standards established under subparagraph (iii) of this paragraph; and Any additional standards the Department adopts by regulation consistent with this section. The Department shall adopt regulations requiring a grant recipient to report relevant information on how the grant was used, including data on the number and type of spay or neuter surgeries performed and a description of any public education and outreach implemented. The Department may use money in the Fund: To finance public education and outreach efforts for the competitive grant program; and For the reasonable costs of administering the Fund. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any investment earnings of the Fund shall be paid into the Fund. Beginning January 1, 2014, each county and municipal animal control shelter and each organization that contracts with a county or municipality for animal control shall report quarterly to the Department on a form prescribed by the Department describing for the previous 3 months: The number of cats and dogs taken in; The number of cats and dogs disposed of, broken down by method of disposal, including euthanasia; and Any other relevant data the Department requires. By August 31, 2014, and each year thereafter, the Department shall submit a report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly that describes the activities financed by the Fund in the previous fiscal year, including: A description of all grant proposals selected for funding and grant programs implemented; A statement of the number of spay and neuter surgeries performed under each grant proposal selected; A description of and accounting for any public education and outreach efforts made for the benefit of Fund programs; and A summary of the information reported to the Department by local animal control shelters and organizations that contract with local governments for animal control under subsection (h) of this section.

In accordance with paragraph (2) of this subsection, the Secretary shall establish a fee on each brand name or product name of commercial feed that is: Prepared and distributed for consumption by a dog or cat; and Registered in the State under § 6–107 of this article. The fee established under this subsection is: From October 1, 2013, through September 30, 2014, inclusive, $50; From October 1, 2014, through September 30, 2015, inclusive, $75; and After September 30, 2015, $100. The fee established under subsection (a) of this section shall be paid by the person registering the commercial feed in accordance with the collection and reporting guidelines established by the Department by regulation. Any fee collected under this section shall be paid into the Fund.

There is a Spay/Neuter Advisory Board. The Advisory Board consists of: The Secretary, or the Secretary’s designee; and The following members, appointed by the Secretary: One representative of a private animal shelter; One veterinarian; One representative of a local animal control agency; One representative of the pet food industry; and Two representatives of animal welfare advocacy organizations. The Secretary shall designate the chair of the Advisory Board. The Department shall provide staff support for the Advisory Board. A member of the Advisory Board: May not receive compensation as a member of the Advisory Board; but Is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. The Advisory Board shall advise the Department with respect to: The administration of the Fund; The solicitation and evaluation of competitive grant proposals; Appropriate additional standards for grant proposals; Additional relevant data that the Department should require from local animal shelters and appropriate animal control organizations; The adoption of regulations that implement this subtitle; and Any other appropriate matter with respect to the implementation of the Fund in the discretion of the Department.

The Department may adopt regulations to implement this subtitle.