When you read through the Act, go to the definition section. The term "cat fur" is defined as the pelt or skin. Similar definition for dog fur.

It can be challenging to write laws and get the terms right. Under this particular law, there is no conflict with using the shed/brushed out fur / hair of a dog or a cat. The animal is still alive. The law was enacted to protect the dogs and cats which were raised and killed as farm animals for the pelts and skins. Much as minks and chincillas have been farmed to make coats.

Folks who work with sheep's wool may have a term to apply to the fur and hair taken off the living animal, NOT attached to the skin / pelt. Of course, sheep have "wool," so that may help with the distinction right there.

Hope this helps!