A BILL TO BE ENTITLED
AN ACT TO TRANSFER ADMINISTRATION OF THE VOLUNTARY SPAY/NEUTER PROGRAM TO THE DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES and to amend the funding for the Spay/neuter account.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  The Spay/Neuter Program established under G.S. 19A‑61 and the Spay/Neuter Account established under G.S. 19A‑61 are transferred from the Department of Health and Human Services to the Department of Agriculture and Consumer Services. Any unexpended funds appropriated to the Department of Health and Human Services for the 2009‑2010 fiscal year to implement the Spay/Neuter Program are transferred to the Department of Agriculture and Consumer Services.
SECTION 1.(b)  G.S. 19A‑61 reads as rewritten:
"§ 19A‑61.  Spay/Neuter Program established.
There is established in the Department of Agriculture and Consumer Services a voluntary statewide program to foster the spaying and neutering of dogs and cats for the purpose of reducing the population of unwanted animals in the State. The program shall consist of the following components:
(1)	Education Program. – The Department shall establish a statewide program to educate the public about the benefits of having cats and dogs spayed and neutered. The Department may work cooperatively on the program with the North Carolina School of Veterinary Medicine, other State agencies and departments, county and city health departments and animal control agencies, and statewide and local humane organizations. The Department may employ outside consultants to assist with the education program.
(2)	Local Spay/Neuter Assistance Program. – The Department shall administer the Spay/Neuter Account established in G.S. 19A‑62. Monies deposited in the account shall be available to reimburse eligible counties and cities for the direct costs of spay/neuter surgeries for cats and dogs made available to low‑income persons."
SECTION 1.(c)  G.S. 19A‑62 reads as rewritten:
"§ 19A‑62.  Spay/Neuter Account established.
(a)	Creation. – The Spay/Neuter Account is established as a nonreverting special revenue account in the Department of Agriculture and Consumer Services. The Account consists of the following:
	(2)	Twenty dollars ($20.00) of the additional fee imposed by G.S. 20‑79.7 for an Animal Lovers special license plate.
(3)	Any other funds available from appropriations by the General Assembly or from contributions and grants from public or private sources.
(b)	Use. – The revenue in the Account shall be used by the Department of Agriculture and Consumer Services as follows:
	(2)	Up to twenty percent (20%) may be used to develop and implement the statewide education program component of the Spay/Neuter Program established in G.S. 19A‑61(a).
(3)	Up to twenty percent (20%) of the money in the Account may be used to defray the costs of administering the Spay/Neuter Program established in this Article.
(4)	Funds remaining after deductions for the education program and administrative expenses shall be distributed quarterly to eligible counties and cities seeking reimbursement for reduced‑cost spay/neuter surgeries performed during the previous calendar year. A county or city is ineligible to receive funds under this subdivision unless it requires the owner to show proof of rabies vaccination at the time of the procedure or, if none, require vaccination at the time of the procedure.
(c)	Report. – In February of each year, the Department must report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division. The report must contain information regarding all revenues and expenditures of the Spay/Neuter Account."
SECTION 1.(d)  G.S. 19A‑63 reads as rewritten:
"§ 19A‑63.  Eligibility for distributions from Spay/Neuter Account.
(a)	A county or city is eligible for reimbursement from the Spay/Neuter Account if it meets the following condition:
(1)	The county or city offers one or more of the following programs to low‑income persons on a year‑round basis for the purpose of reducing the cost of spaying and neutering procedures for dogs and cats:
a.	A spay/neuter clinic operated by the county or city.
b.	A spay/neuter clinic operated by a private organization under contract or other arrangement with the county or city.
c.	A contract or contracts with one or more veterinarians, whether or not located within the county, to provide reduced‑cost spaying and neutering procedures.
d.	Subvention of the spaying and neutering costs incurred by low‑income pet owners through the use of vouchers or other procedure that provides a discount of the cost of the spaying or neutering procedure fixed by a participating veterinarian or other provider.
e.	Subvention of the spaying and neutering costs incurred by persons who adopt a pet from an animal shelter operated by or under contract with the county or city.
(2)	Reserved for future codification purposes.
(b)	For purposes of this Article, the term "low‑income person" shall mean an individual who qualifies for one or more of the programs of public assistance administered by the Department of Health and Human Services pursuant to Chapter 108A of the General  Statutes or whose annual household income is under three hundred percent (300%) of the federal poverty level guidelines published by the United States Department of Health and Human Services.
(c)	Each county shall make rules or publish guidelines that designate what proof a low‑income person must submit to establish that the person qualifies for public assistance under subsection (b) of this section or has an annual household income lower than three hundred percent (300%) of the federal poverty level guidelines published by the United States Department of Health and Human Services."
SECTION 1.(e)  G.S. 19A‑64 reads as rewritten:
"§ 19A‑64.  Distributions to counties and cities from Spay/Neuter Account.
(a)	Reimbursable Costs. – Counties and cities eligible for distributions from the Spay/Neuter Account may receive reimbursement for the direct costs of a spay/neuter surgical procedure for a dog or cat owned by a low‑income person as defined in G.S. 19A‑63(b). Reimbursable costs shall include anesthesia, medication, and veterinary services. Counties and cities shall not be reimbursed for the administrative costs of providing reduced‑cost spay/neuter services or capital expenditures for facilities and equipment associated with the provision of such services.
(b)	Application. – A county or city eligible for reimbursement of spaying and neutering costs from the Spay/Neuter Account shall apply to the Department of Agriculture and Consumer Services by the last day of January, April, July, and October of each year to receive a distribution from the Account for that quarter. The application shall be submitted in the form required by the Department and shall include an itemized listing of the costs for which reimbursement is sought.
(c)	Distribution. – The Department shall make payments from the Spay/Neuter Account to eligible counties and cities who have made timely application for reimbursement within 30 days of the closing date for receipt of applications for that quarter. In the event that total requests for reimbursement exceed the amounts available in the Spay/Neuter Account for distribution, the monies available will be distributed as follows:
(1)	Fifty percent (50%) of the monies available in the Spay/Neuter Account shall be reserved for reimbursement for eligible applicants within development tier one areas as defined in G.S. 143B‑437.08. The remaining fifty percent (50%) of the funds shall be used to fund reimbursement requests from eligible applicants in development tier two and three areas as defined in G.S. 143B‑437.08.
(2)	Among the eligible counties and cities in development tier one areas, reimbursement shall be made to each eligible county or city  pursuant to rules adopted by the Department.(3)	Among the eligible counties and cities in development tier two and three areas, reimbursement shall be made to each eligible county or city pursuant to rules adopted by the Department.(4)	Should funds remain available from the fifty percent (50%) of the Spay/Neuter Account designated for development tier one areas after reimbursement of all claims by eligible applicants in those areas, the remaining funds shall be made available to reimburse eligible applicants in development tier two and three areas."
SECTION 1.(f)  G.S. 19A‑65 reads as rewritten:
"§ 19A‑65.  Annual Report Required From Every Animal Shelter in Receipt of State or Local Funding.
Every county or city animal shelter, or animal shelter operated under contract with a county or city or otherwise in receipt of State or local funding shall prepare an annual report in the form required by the Department setting forth the numbers, by species, of animals received into the shelter, the number adopted out, the number returned to owner, and the number destroyed. The report shall also contain the total operating expenses of the shelter and the cost per animal handled. The report shall be filed with the Department of Agriculture and Consumer Services by  March 1 of each year. A city or county that does not timely file the report required by this section is not eligible to receive reimbursement payments under G.S. 19A‑64 during the calendar year in which the report was to be filed."
SECTION 2.  Article 5 of Chapter 19A of the General Statutes is amended by adding a new section to read:
"§ 19A‑66.  Notification of available funding.
Prior to January 1 of each year, the Department shall notify counties and cities that have, prior to that notification deadline, established eligibility for distribution of funds from the Spay/Neuter Account pursuant to G.S. 19A‑63, of the following:
(1)	The amount of funding in the Spay and Neuter Account that the Department will have available for distribution to each county or city receiving notification to pay reimbursement requests submitted by the county or city during the calendar year following the notification deadline; and 
(2)	The amount of additional funding, if any, the Department estimates, but does not guarantee, may be available to pay reimbursement requests submitted by the notified county or city to the Department during the calendar year following the notification deadline."
SECTION 3.  G.S. 130A‑190(b) reads as rewritten:
"(b)	Fee. – Rabies vaccination tags, links, and rivets may be obtained from the Department of Health and Human Services. The Secretary is authorized to collect  a fee for the rabies tags, links, and rivets in accordance with this subsection. The fee for each tag is the sum of the following:
(1)	The actual cost of the rabies tag, links, and rivets.
(2)	Transportation costs.
(3)	Fifteen cents (15¢). This portion of the fee shall be used to fund rabies education and prevention programs.
	"
SECTION 4.(a)  G.S. 20‑79.7(a) reads as rewritten:
"(a)	Fees. – Upon request, the Division shall provide and issue free of charge one registration plate to a recipient of a Legion of Valor award, a 100% disabled veteran, and an ex‑prisoner of war. All other special registration plates, including additional Legion of Valor, 100% Disabled Veteran, and Ex‑Prisoner of War plates, are subject to the regular motor vehicle registration fee in G.S. 20‑87 or G.S. 20‑88 plus an additional fee in the following amount:
Special Plate	Additional Fee Amount
Animal Lovers	$30.00
Back Country Horsemen of NC	$30.00
Coastal Conservation Association	$30.00
Crystal Coast	$30.00
El Pueblo	$30.00
First in Forestry	$30.00
Historical Attraction	$30.00
Home Care and Hospice	$30.00
HOMES4NC	$30.00
Hospice Care	$30.00
In God We Trust	$30.00
Maggie Valley Trout Festival	$30.00
National Kidney Foundation	$30.00
North Carolina 4‑H Development Fund	$30.00
North Carolina Libraries	$30.00
Personalized	$30.00
Share the Road	$30.00
State Attraction	$30.00
Stock Car Racing Theme	$30.00
Support Our Troops	$30.00
AIDS Awareness	$25.00
Buffalo Soldiers	$25.00
Collegiate Insignia	$25.00
Goodness Grows	$25.00
High School Insignia	$25.00
Kids First	$25.00
Olympic Games	$25.00
National Multiple Sclerosis Society	$25.00
National Wild Turkey Federation	$25.00
NC Agribusiness	$25.00
NC Children's Promise	$25.00
NC Coastal Federation	$30.00
Nurses	$25.00
Rocky Mountain Elk Foundation	$25.00
Special Olympics	$25.00
Surveyor Plate	$25.00
The V Foundation for Cancer Research Division	$25.00
University Health Systems of Eastern Carolina	$25.00
Alpha Phi Alpha Fraternity	$20.00
ALS Association, Jim "Catfish" Hunter Chapter	$20.00
	 
ARC of North Carolina	$20.00
Audubon North Carolina	$20.00
Autism Society of North Carolina	$20.00
Be Active NC	$20.00
Brain Injury Awareness	$20.00
Breast Cancer Earlier Detection	$20.00
Buddy Pelletier Surfing Foundation	$20.00
Daughters of the American Revolution	$20.00
Ducks Unlimited	$20.00
Greyhound Friends of North Carolina	$20.00
Guilford Battleground Company	$20.00
Juvenile Diabetes Research Foundation	$20.00
Harley Owners' Group	$20.00
Litter Prevention	$20.00
March of Dimes	$20.00
NC Tennis Foundation	$20.00
NC Trout Unlimited	$20.00
NC Wildlife Habitat Foundation	$20.00
Omega Psi Phi Fraternity	$20.00
Prince Hall Mason 	$20.00
Save the Sea Turtles	$20.00
Scenic Rivers	$20.00
School Technology	$20.00
SCUBA	$20.00
Soil and Water Conservation	$20.00
Special Forces Association	$20.00
Support Public Schools	$20.00
US Equine Rescue League	$20.00
Wildlife Resources	$20.00
Zeta Phi Beta Sorority	$20.00
Carolina's Aviation Museum	$15.00
Leukemia & Lymphoma Society	$15.00
Lung Cancer Research	$15.00
Shag Dancing	$15.00
Active Member of the National Guard	None
100% Disabled Veteran	None
Ex‑Prisoner of War	None
Gold Star Lapel Button	None
Legion of Valor	None
Purple Heart Recipient	None
Silver Star Recipient	None
All Other Special Plates	$10.00."
SECTION 4.(b) G.S. 20‑97.7(b) reads as rewritten:  
"(b)	Distribution of Fees. – The Special Registration Plate Account and the Collegiate and Cultural Attraction Plate Account are established within the Highway Fund. The Division must credit the additional fee imposed for the special registration plates listed in subsection (a) among the Special Registration Plate Account (SRPA), the Collegiate and Cultural Attraction Plate Account (CCAPA), the Natural Heritage Trust Fund (NHTF), which is established under G.S. 113‑77.7, and the Parks and Recreation Trust Fund, which is established under G.S. 113‑44.15, as follows: 
Special Plate 	SRPA	CCAPA	NHTF	PRTF
AIDS Awareness	$10	$15	0	0
Alpha Phi Alpha Fraternity 	$10 	$10	0	0
ALS Association, Jim "Catfish"
Hunter Chapter	$10	$10	0	0
Animal Lovers	$10	$20	0	0
ARC of North Carolina	$10	$10	0	0
Audubon North Carolina	$10	$10	0	0
Autism Society of North
Carolina	$10	$10	0	0
Back Country Horsemen of NC	$10	$20	0	0
Be Active NC	$10	$10	0	0
Brain Injury Awareness	$10	$10	0	0
Breast Cancer Earlier Detection 	$10	$10	0	0
Buddy Pelletier Surfing
Foundation	$10	$10	0	0
Buffalo Soldiers	$10	$15	0	0
Carolina's Aviation Museum	$10	$5	0	0
Coastal Conservation
Association	$10	$20	0	0
Crystal Coast	$10	$20	0	0
Daughters of the American
Revolution	$10	$10	0	0
Ducks Unlimited	$10	$10	0	0
El Pueblo	$10	$20	0	0
First in Forestry	$10	$10	$10	0
Goodness Grows	$10	$15	0	0
Greyhound Friends of North
Carolina	$10	$10	0	0
Guilford Battleground
Company	$10	$10	0	0
Harley Owners' Group	$10	$10	0	0
High School Insignia	$10	$15	0	0
Historical Attraction	$10	$20	0	0
Home Care and Hospice	$10	$20	0	0
HOMES4NC	$10	$20	0	0
Hospice Care	$10	$20	0	0
In God We Trust	$10	$20	0	0
In‑State Collegiate Insignia	$10	$15	0	0
Juvenile Diabetes Research
Foundation	$10	$10	0	0
Kids First	$10	$15	0	0
Leukemia & Lymphoma Society 	$10	$5	0	0
Litter Prevention	$10	$10	0	0
Lung Cancer Research	$10	$5	0	0
Maggie Valley Trout Festival	$10	$20	0	0
March of Dimes	$10	$10	0	0
National Kidney Foundation	$10	$20	0	0
National Multiple Sclerosis
Society	$10	$15	0	0
National Wild Turkey
Federation	$10	$15	0	0
NC Agribusiness	$10	$15	0	0
NC Children's Promise	$10	$15	0	0
NC Coastal Federation	$10	$20	0	0
NC 4‑H Development Fund	$10	$20	0	0
NC Tennis Foundation	$10	$10	0	0
NC Trout Unlimited	$10	$10	0	0
North Carolina Libraries	$10	$20	0	0
NC Wildlife Habitat
Foundation	$10	$10	0	0
Nurses	$10	$15	0	0
Olympic Games	$10	$15	 0	0
Omega Psi Phi Fraternity	$10	$10	0	0
Out‑of‑state Collegiate Insignia	$10	0	$15	0
Personalized	$10	0	$15	$5
Prince Hall Mason	$10	$10	0	0
Rocky Mountain Elk
Foundation	$10	$15	0	0
Save the Sea Turtles	$10	$10	0	0
Scenic Rivers	$10	$10	0	0
School Technology	$10	$10	0	0
SCUBA	$10	$10	0	0
Shag Dancing	$10	$5	0	0
Share the Road	$10	$20	0	0
Soil and Water Conservation	$10	$10	0	0
Special Forces Association	$10	$10	0	0
Special Olympics	$10	$15	0	0
State Attraction	$10	$20	0	0
Stock Car Racing Theme	$10	$20	0	0
Support Our Troops	$10	$20	0	0
Support Public Schools	$10	$10	0	0
Surveyor Plate	$10	$15	0	0
The V Foundation for Cancer
Research	$10	$15	0	0
University Health Systems of
Eastern Carolina	$10	$15	0	0
US Equine Rescue League	$10	$10	0	0
Wildlife Resources	$10	$10	0	0
Zeta Phi Beta Sorority	$10	$10	0	0
All other Special Plates	$10	0	0	0."
SECTION 5.(a)  The Department of Agriculture and Consumer Services may study the State's role in reducing the number of unwanted dogs and cats and in ensuring the humane treatment of dogs and cats by breeders, shelters, and other facilities that house dogs and cats.  As part of this study, the Department may do the following:
(1)	Conduct a comprehensive evaluation of the need for revisions of or additions to existing regulatory authority designed to address animal welfare issues in the State, including a review of existing State and federal law.
(2)	Evaluate the existing needs among county and State agencies for improving responses to animal welfare incidents.
(3)	Consider the extent to which the existing infrastructure of the State Animal Response Team may be expanded to handle animal emergencies that involve companion animals and the feasibility and needs for such an expansion.
(4)	Survey local government to determine the total fiscal demand for a voluntary Statewide program to foster the spaying and neutering of dogs and cats for the purpose of reducing the population of unwanted animals.
(5)	Review data regarding the economic impact of animal sheltering and other animal welfare programs, including the costs of such programs to counties and the State, and identify ways that the State might reduce the number of animals being sent to animal shelters and whether more cost‑effective means exist to control the pet population without compromising animal welfare.
(6)	Evaluate the needs of the Animal Welfare program within the Department, specifically with regard to dealing with inquiries from the public, inspection capability and frequency, and staff development and training for Department personnel and others in the State that conduct animal welfare work.
(7)	Consult with other organizations and entities it deems appropriate.
(8)	Examine any other issues the Department deems pertinent to its charge under this act.
SECTION 5.(b)  The Department of Agriculture and Consumer Services shall conduct the study set out in subsection (a) of this section within funds available for the 2010‑2011 fiscal year.  The Department may make interim reports as it deems necessary and shall report its findings and recommendations to the Chairs of the House Agriculture Committee, the Senate Agriculture, Environment, and Natural Resources Committee, and the House and Senate Appropriations Subcommittees on Natural and Economic Resources on or before May 1, 2011.  
SECTION 6.  This act becomes effective October 1, 2010.