HB 146
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
House Bill 146 (Delegate Lehman, et al.)
Environment and Transportation Education, Health, and Environmental Affairs
Department of Agriculture - Spay/Neuter Fund - Extension and Report
This bill extends the termination date for the Spay/Neuter Fund within the Maryland
Department of Agriculture (MDA) by 10 years (from September 30, 2022, to
September 30, 2032). By October 1, 2021, MDA must report to the General Assembly on
the fund, including (1) spay and neuter programs that are not receiving funding from the
fund; (2) the market capacity for increasing the fees assessed on each brand name or
product name of commercial feed that are paid into the fund; and (3) a proposed fee
structure that can be implemented over the next 5 to 10 years to enhance the revenue
generated from the fees. The bill takes effect June 1, 2021.
Fiscal Summary
State Effect: Special fund revenues and expenditures continue until September 30, 2032,
due to the extension of the termination date. The fund receives approximately $966,000
annually in fee revenues, facilitating MDA grants for about 30 projects annually. MDA
advises that it can complete the required report by October 1, 2021, with existing resources.
Local Effect: Local governments, as eligible grant recipients, continue to be eligible for
grant funding for an additional 10 years.
Small Business Effect: Potential meaningful.
Analysis
Current Law: Chapters 561 and 562 of 2013, which established the Spay/Neuter Fund,
terminate September 30, 2022. The fund has the purpose of reducing animal shelter
overpopulation and cat and dog euthanasia rates by financing grants to local governments
and animal welfare organizations for programs that most efficiently facilitate and promote
the provision of spay and neuter services for cats and dogs in the State. The fund receives
revenue from a fee imposed on each registered brand name or product name of dog or cat
food. The current fee, which will remain in effect until the fund’s termination date, is $100.
Fees are paid by the person registering the pet food, in accordance with MDA guidelines.
Small Business Effect: Small businesses that register dog and cat food products will be
required to pay fees for an additional 10 years. MDA advises that of the 224 current
registrants, 111 register fewer than 10 products per year, potentially reflecting small
businesses that may be affected by the continued fee.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Baltimore City; Montgomery County; Maryland Department of
Agriculture; Department of Legislative Services
Fiscal Note History: First Reader - January 28, 2021
rh/sdk Third Reader - March 22, 2021
Revised - Amendment(s) - March 22, 2021
Analysis by: Tyler Allard Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 146/ Page 2


Statutes affected:
Text - First - Department of Agriculture - Spay/Neuter Fund - Extension and Fee on Commercial Feed: 21-602 Agriculture, 21-603 Agriculture, 21-603 Agriculture
Text - Third - Department of Agriculture - Spay/Neuter Fund - Extension and Report: 21-602 Agriculture, 21-603 Agriculture, 21-603 Agriculture, 21-257 Agriculture