(a) The fees specified in Section 5157 shall be imposed for the issuance, renewal, or transfer of the Pet Lover’s specialized license plates. Notwithstanding subdivision (c) of Section 5157, after deducting its administrative costs, the department shall deposit the revenue derived from the additional fees into the Pet Lover’s Fund, which is hereby established in the Specialized License Plate Fund.

(b) Upon appropriation by the Legislature, the moneys in the Pet Lover’s Fund shall be allocated to the Department of Food and Agriculture. There shall not be an allocation to the Department of Food and Agriculture pursuant to subdivision (c) of Section 5157.

(c) The Department of Food and Agriculture shall allocate those grant funds to eligible veterinary facilities that offer low-cost or no-cost animal sterilization services.

(1) In administering the grants, the Department of Food and Agriculture may prioritize both of the following:

(A) Eligible veterinary facilities located in or serving underserved communities or those that can demonstrate financial need.

(B) Eligible veterinary facilities that have previously provided or currently provide low-cost or no-cost animal sterilization services.

(2) For the purposes of this subdivision, “eligible veterinary facilities” mean those facilities that are all of the following:

(A) Registered and in good standing with the Veterinary Medical Board, pursuant to Section 4853 of the Business and Professions Code.

(B) Overseen by a responsible licensee manager licensed and in good standing with the Veterinary Medical Board, pursuant to Chapter 11 (commencing with Section 4800) of Division 2 of the Business and Professions Code.

(C) (i) Operated by a city, county, city and county, an animal care or control agency, or a nonprofit meeting the requirements of Section 501(c)(3) of the federal Internal Revenue Code that is registered and in good standing with the Secretary of State.

(ii) A city, county, or city and county animal control agency or nonprofit shelter holding a municipal contract that offers spay and neuter services for dogs and cats owned by individual members of the public is required to be current on its yearly rabies reporting requirements to the State Department of Public Health, Veterinary Public Health Section.

(d) Annual administrative costs for the program shall not exceed 25 percent of the funds collected from the issuance of the Pet Lover’s license plates, and may include funds for marketing and other promotional activities associated with encouraging application for, or renewal of, Pet Lover’s license plates and collaboration expenses. The Department of Food and Agriculture may contract with an eligible nonprofit organization to perform the marketing and promotional activities authorized.

(1) The eligible nonprofit organization selected by the Department of Food and Agriculture pursuant to this subdivision shall not use more than 5 percent of the moneys received pursuant to this section for administrative costs.

(2) For the purposes of this subdivision, “eligible nonprofit organization” means a nonprofit entity that is all of the following:

(A) Qualifies for tax exempt status under Section 501(c)(3) of the federal Internal Revenue Code and subdivision (d) of Section 23701 of the Revenue and Taxation Code.

(B) Registered and in good standing with the Secretary of State.

(C) Chaptered and headquartered in this state.

(D) Has demonstrated experience in advertising, marketing, and promoting specialized license plates in existence prior to 2016 pursuant to this article.

(e) The Department of Food and Agriculture shall determine eligibility requirements for the grants, establish the grant application process, and develop program specifics. The Department of Food and Agriculture shall collaborate with an eligible nonprofit organization, as defined in paragraph (2) of subdivision (d), to provide advice and consultation for the purposes of developing and implementing the grant program. The Department of Food and Agriculture shall administer and oversee the grant program.

(Amended by Stats. 2017, Ch. 813, Sec. 2. (SB 673) Effective January 1, 2018.)