(1) As used in this section, the term “qualified nonprofit organization” means an IRS tax-exempt 501(c)(3) or similar nonprofit organization that has been approved by the Mississippi Board of Animal Health.

(2) There is created in the State Treasury a special fund to be known and designated as the “Animal Care Fund.” There shall be deposited in the fund:

(a) The additional fees collected from the issuance of distinctive license tags under Section 27-19-56.18;

(b) Any gifts, grants, donations or matching money from federal, state or local governmental bodies and private persons, associations, groups or corporations making contributions to the fund; and

(c) Any other monies as the Legislature may appropriate or authorize to be deposited therein.

(3) The special fund created under subsection (1) of this section shall be administered by the Mississippi Board of Animal Health. Monies in the special fund shall be allocated and distributed by the Mississippi Board of Animal Health to and among the boards of supervisors of each of the counties, the governing authorities of municipalities in the state and qualified nonprofit organizations. Monies allocated, distributed and received by the boards of supervisors, governing authorities and qualified nonprofit organizations may:

(a) Be expended for the operation and support of county or municipal agencies, boards or departments that provide food, shelter and care, and/or spaying and neutering of lost, abandoned or unwanted pets;

(b) Be expended for the creation, development or expansion of such agencies, boards or departments; or

(c) Be donated by the boards of supervisors and governing authorities to nonprofit groups, organizations and associations that operate similar programs. However, priority for expenditure of such monies shall be given to spaying and neutering programs. None of such monies may be expended for euthanasia. The Mississippi Board of Animal Health is authorized to use a portion of the fund, in an amount not to exceed Two Thousand Dollars ($2,000.00) a year, to fund administrative expenses.

(4) The Mississippi Board of Animal Health shall adopt rules and regulations governing the proper administration of the Animal Care Fund, and establishing guidelines and criteria for the distribution and allocation of monies in the fund, including qualifications for those groups, organizations and associations qualified to accept monies or to which boards of supervisors and governing authorities may make donations.