(1) The animal welfare fund is created in the department to provide funds to promote sterilization and adoption of dogs and cats, to improve knowledge of the proper care of animals pursuant to state animal anticruelty laws by educating the public and training personnel authorized by law to enforce state animal anticruelty laws, to support and enhance programs that provide for the care and protection of animals pursuant to state anticruelty laws, and to allow the purchase of equipment and supplies for programs that receive grants under this act.

  (2) The state treasurer shall credit to the fund all amounts appropriated for this purpose under section 435 of the income tax act of 1967, 1967 PA 281, MCL 206.435.

  (3) The fund shall consist of the money credited to the fund pursuant to section 435 of the income tax act of 1967, 1967 PA 281, MCL 206.435, any interest and earnings accruing from the saving and investment of that money, and other appropriations, money, or other things of value received by the fund.

  (4) The state treasurer shall direct the investment of the fund.

  (5) Money in the fund at the close of the year shall remain in the fund and shall not lapse to the general fund.