(a) If the dog or cat being adopted has not been spayed or neutered, the agency shall require a deposit of not less than twenty-five dollars ($25.00) from the new owner prior to the adoption in order to ensure that the dog or cat is spayed or neutered. The new owner may request and shall receive a refund of the deposit from the agency upon providing confirmation of the spaying or neutering.

(b)

(1) If the new owner fails to have the dog or cat spayed or neutered within the time frame established by § 44-17-502, or if the spaying or neutering is timely performed, but the new owner fails to request the return of the deposit within an additional ten (10) days after the date by which the spaying or neutering is required to be performed, the deposit shall be forfeited to the agency holding the deposit and shall be used by the agency to conduct programs to spay or neuter dogs and cats in the community where the agency is located.

(2) The forfeited deposit may also be used to defray operational expenses of the programs, including, but not limited to, costs for purchasing food, medications, tests, upgrades for the animal housing areas, or any other supplies or products which would improve the quality of life for dogs or cats in such programs.

(3) No forfeited deposit may be used to pay salaries of persons employed by any agency located within the county.

(4) Before the forfeited deposits may be used by an agency for the purposes set out in this subsection (b), the agency shall maintain a minimum balance in the forfeited deposit fund of no less than the total amount of unclaimed deposits collected during the previous six-month period.