(a) The animal friendly account is a separate account in the general revenue fund. The account is composed of:
(1) money deposited to the credit of the account under former Section 502.291, Transportation Code, and under § 504.605, Transportation Code; and
(2) gifts, grants, donations, and legislative appropriations.
(b) The Department of State Health Services administers the account.

(b-1) The Department of State Health Services may spend money credited to the account or money deposited to the associated trust fund account created under § 504.6012, Transportation Code, only to:
(1) make grants to eligible organizations that sterilize animals owned by the general public at minimal or no cost; and
(2) defray the cost of administering the account.
(c) The Department of State Health Services may accept gifts, donations, and grants from any source for the benefit of the account. The executive commissioner of the Health and Human Services Commission by rule shall establish guidelines for spending money described by Subsection (b-1).
(d) In this section “eligible organization” means:
(1) a releasing agency;
(2) an organization that is qualified as a charitable organization under Section 501(c)(3), Internal Revenue Code, that has as its primary purpose:
(A) animal welfare; or
(B) sterilizing animals owned by the general public at minimal or no cost; or
(3) a local nonprofit veterinary medical association that has an established program for sterilizing animals owned by the general public at minimal or no cost.