The plan would be funded in part by 50-cent fees on "I Care" vanity plates and rabies tags.
Veterinarians say it would help cut down on the large number of unwanted animals that are euthanized every day in pounds and shelters.
Depending on the animal's size, it can cost hundreds of dollars to spay or neuter an animal.
If signed by the governor, discounts will be available in January.
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