HF 140 (LSB 1807YH (5) 88)

HOUSE FILE 140

BY  STAED, WINCKLER, HUNTER, LENSING, KURTH, ANDERSON, FORBES, and OURTH

A BILL FOR

An Act relating to the regulation of persons, including commercial establishments, keeping nonagricultural animals, providing for fees and appropriations, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
REGULATION, FEES, AND APPROPRIATIONS

    Section 1.  Section 162.2, subsections 6, 14, 15, 17, 23, and 26, Code 2019, are amended by striking the subsections.
    Sec. 2.  Section 162.2, subsections 3, 8, 9, 10, and 27, Code 2019, are amended to read as follows:
   3.  “Animal shelter” means a facility which is housing facility used to receive, house or contain dogs or cats, or both, or transfer vertebrate animals and which is owned, operated, or maintained by an incorporated humane society, animal welfare society, society for the prevention of cruelty to animals, or other nonprofit organization devoted to the welfare, protection, and humane treatment of such animals.
   8.  a.  “Commercial breeder” means a person, engaged in the business of breeding dogs or cats, who sells, exchanges, or leases dogs or cats in return for consideration, or who offers to do so, whether or not the animals dogs or cats are raised, trained, groomed, or boarded by the person.
   b.  Notwithstanding paragraph “a”, “commercial breeder” does not mean any of the following:
   (1)  A person who is a small breeder, competitive show breeder, or specialized breeder.
   (2)  A person who owns or harbors keeps three or fewer breeding males or females is not a commercial breeder male or female dogs or cats. However, a person who breeds any number of breeding male or female greyhounds for the purposes of using them for pari-mutuel wagering at a racetrack as provided in chapter 99D shall be considered a commercial breeder irrespective of whether the person sells, leases, or exchanges the greyhounds for consideration or offers to do so.
   9.  “Commercial establishment” or “establishment” means an any of the following: 
   a.  An animal rescue.
   b.  An animal sanctuary.
   c.  An animal shelter,. 
   d.  A boarding kennel,. 
   e.  A commercial breeder,. 
   f.  A commercial kennel,. 
   g.  A dealer,. 
   h.  A grooming facility.
   i.  A pet shop,. 
   j.  A pound,. 
   k.  A public auction, or. 
   l.  A research facility.
   m.  A small breeder, competitive show breeder, or specialized breeder.
   10.  a.  “Commercial kennel” means a kennel which performs grooming, a facility where boarding, or training services are provided for dogs or cats in return for a consideration.
   b.  “Commercial kennel” does not mean a facility in which a dog or cat remains in the custody of the owner of the dog or cat.
   27.  “Vertebrate animal” or “animal” means those vertebrate animals other than members of the equine, bovine, ovine, and porcine species, and ostriches, rheas, or emus.
    Sec. 3.  Section 162.2, Code 2019, is amended by adding the following new subsections:
   NEW SUBSECTION.  2A.  “Animal rescue” means a person who during a state fiscal year receives more than six adult dogs or cats, or more than three litters of dogs or cats, and who retains custody of the dogs or cats on a temporary basis until doing any of the following:
   a.  Transferring the dogs or cats to an animal shelter, pound, or another animal rescue.
   b.  Relinquishing custody of the dogs or cats by adoption to members of the public.
   NEW SUBSECTION.  2B.  “Animal sanctuary” means a person who during a state fiscal year owns or leases and controls housing facilities where at least six adult dogs or cats have been received from one or more persons, if all of the following apply:
   a.  When received, each dog or cat was any of the following:
   (1)  Abandoned, orphaned, or unwanted, or transferred by a pound or animal shelter.
   (2)  In an impaired condition due to disease, injury, or birth defect, or a threatened animal as defined in section 717B.1.
   b.  Each dog or cat is maintained by the person on a permanent basis, until the death of the dog or cat, or the person transfers the dog or cat to any of the following:
   (1)  An animal rescue.
   (2)  Another animal sanctuary.
   (3)  An animal shelter.
   (4)  A pound.
   NEW SUBSECTION.  15A.  “Foster care home” means a private residence that provides a vertebrate animal with temporary maintenance, including shelter and care, if the animal has been accepted by a person licensed as an animal rescue, animal shelter, or pound and that person is authorized by the department to oversee the operations of the private residence.
   NEW SUBSECTION.  15B.  a.  “Grooming facility” means a business, including a salon, that as the principal part of its operation, provides grooming services in return for consideration.
   b.  “Grooming facility” does not mean a business that does any of the following:
   (1)  Only provides grooming services at the residence of the owner of the dog or cat.
   (2)  Only provides grooming services at a mobile business operating at different locations.
   (3)  Operates as part of a commercial kennel that provides grooming services as an incidental part of its operation.
   (4)  Operates as part of a veterinary facility that provides grooming services as an incidental part of its operation.
   (5)  Keeps the dog or cat for less than twenty-four hours during any one period.
   NEW SUBSECTION.  15C.  “Grooming services” means providing a dog or cat with hygienic care or treatment to improve appearance, which may include but is not limited to bathing; the removal of dead hair or skin; hair clipping, shaving, or brushing; nail trimming; or providing flea or tick control.
   NEW SUBSECTION.  16A.  “License” means an authorization to operate a commercial establishment as provided in this chapter regardless of whether the authorization is also referred to as a permit or certificate of registration.
   NEW SUBSECTION.  16B.  “Licensee” means a commercial establishment that operates pursuant to a license issued and renewed by the department pursuant to section 162.2A.
   NEW SUBSECTION.  16C.  “Local authority” means the same as defined in section 717B.1.
   NEW SUBSECTION.  20A.  “Practice of veterinary medicine” means the same as defined in section 169.3.
   NEW SUBSECTION.  24A.  a.  “Small breeder, competitive show breeder, or specialized breeder” means a person who owns or keeps dogs, if the person does all of the following:
   (1)  Breeds the dogs.
   (2)  Sells, exchanges, or leases the dogs in return for consideration, or offers to sell, exchange, or lease the dogs in return for consideration.
   (3)  Keeps in any state fiscal year a total of not more than three litters of puppies.
   b.  “Small breeder, competitive show breeder, or specialized breeder” does not mean a person who owns or keeps three or fewer breeding male or female dogs.
   c.  “Small breeder, competitive show breeder, or specialized breeder” does not mean a commercial breeder.
   NEW SUBSECTION.  28.  “Veterinary facility” means a business where one or more licensed veterinarians are engaged in the practice of veterinary medicine. The business may also provide grooming services as an incidental part of its operation.
    Sec. 4.  Section 162.2A, Code 2019, is amended to read as follows:
   162.2A  Application, issuance, and renewal of authorizations.
   1.  The department shall provide for the operation of issuance or renewal of a license to operate a commercial establishment by issuing or renewing an authorization, including any of the following:. A person who owns a commercial establishment shall be deemed to operate that commercial establishment.
   a.  A certificate of registration for a pound, animal shelter, or research facility.
   b.  A state license for a boarding kennel, commercial kennel, or pet shop.
   c.  A state license or permit for a commercial breeder, dealer, or public auction. A federal licensee must apply for and be issued either a permit or a state license in lieu of a permit.
   2.  a.  A person must hold a current, valid license in order to operate a commercial establishment.
   b.  A person must be issued a separate state hold a single license, certificate of registration, or permit for each class of commercial establishment owned or operated by the person, regardless of how many locations for that class are operated by the person.  Each of the following is a separate class of commercial establishment:
   (1)  An animal rescue.
   (2)  An animal sanctuary.
   (3)  An animal shelter.
   (4)  A boarding kennel.
   (5)  A commercial breeder.
   (6)  A commercial kennel.
   (7)  A grooming facility.
   (8)  A dealer.
   (9)  A pet shop.
   (10)  A pound.
   (11)  A public auction.
   (12)  A research facility.
   (13)  A small breeder, competitive show breeder, or specialized breeder.
   3.  A person must apply for the issuance or renewal of an authorization a license on forms and according to procedures required by rules adopted by the department. The application shall contain information required by the department, including but not limited to all of the following:
   a.  The person’s name.
   b.  The person’s principal office or place of business.
   c.  The name, address, and type of establishment covered by the authorization license.
   d.  The person’s identification number. Notwithstanding chapter 22, the department shall keep the person’s tax identification number confidential except for purposes of tax administration by the department of revenue, including as provided in section 421.18.
   4.  The authorization A license expires on an annual basis as provided by the department, and must be renewed by the commercial establishment on an annual basis on or before the authorization’s license’s expiration date.
   5.  a.  A commercial establishment applying for the issuance or renewal of a permit shall provide the department with proof that the person is a federal licensee.
   b.  The department shall not require that it must enter onto the premises of a commercial establishment in order to issue a permit. The department shall not require that it must enter onto the premises of a commercial establishment in order to renew a permit, unless it has reasonable cause to monitor the commercial establishment as provided in section 162.10C.  The department may deny an application for the issuance or renewal of a license if the department determines that the applicant is in violation of this chapter or has not demonstrated that the applicant will comply with the provisions of this chapter.
    Sec. 5.  Section 162.2B, Code 2019, is amended by striking the section and inserting in lieu thereof the following:
   162.2B  Fees.
   1.  The department shall establish, assess, and collect fees for issuing or renewing a license as provided in section 162.2A. The fees assessed under this section shall include a base amount plus any applicable scheduled amount.
   2.  For a commercial establishment that is an animal rescue, animal sanctuary, animal shelter, pound, or research facility, all of the following shall apply: 
   a.  The base amount equals seventy-five dollars. A single base amount shall be assessed for all locations operated by the commercial establishment.
   b.  A scheduled amount shall not be assessed.
   3.  For a commercial establishment that is a dealer or grooming facility, all of the following shall apply:
   a.  The base amount equals one hundred dollars. A single base amount shall be assessed for all locations operated by the commercial establishment.
   b.  A scheduled amount shall not be assessed.
   4.  For a commercial establishment that is a boarding kennel, commercial kennel, or public auction, all of the following shall apply: 
   a.  The base amount equals one hundred seventy-five dollars. A single base amount shall be assessed for all locations operated by the commercial establishment.
   b.  A scheduled amount shall not be assessed.
   5.  For a commercial establishment that is a pet shop, all of the following shall apply:
   a.  The base amount equals one hundred seventy-five dollars. A base amount shall be assessed for each location operated by the pet shop.
   b.  (1)  The scheduled amount shall be determined based on the number of dogs and cats kept by the pet shop as follows:
   (a)  For at least one dog or cat but not more than twenty dogs and cats, one hundred dollars.
   (b)  For more than twenty dogs and cats but not more than forty dogs and cats, two hundred fifty dollars.
   (c)  For more than forty dogs and cats, five hundred dollars.
   (2)  For purposes of determining the scheduled amount under this paragraph “b”, a dog or cat must be recorded as on hand for sale to the general public during the most recent inspection of the pet shop by the department. The scheduled amount shall be assessed for the total number of dogs or cats kept at all locations operated by the pet shop.
   6.  For a commercial establishment that is a commercial breeder, all of the following shall apply:
   a.  The base amount equals one hundred seventy-five dollars. A base amount shall be assessed for each location operated by the commercial breeder.
   b.  (1)  The scheduled amount shall be determined based on the number of dogs and cats kept by the commercial breeder as follows:
   (a)  For not more than fifty dogs and cats, seventy-five dollars.
   (b)  For more than fifty dogs and cats but not more than seventy-five dogs and cats, two hundred fifty dollars.
   (c)  For more than seventy-five dogs and cats but not more than one hundred dogs and cats, eight hundred dollars.
   (d)  For more than one hundred dogs and cats but not more than two hundred fifty dogs and cats, two thousand five hundred dollars.
   (e)  For more than two hundred fifty dogs and cats but not more than four hundred dogs and cats, five thousand dollars.
   (f)  For more than four hundred dogs and cats, seven thousand five hundred dollars.
   (2)  For purposes of determining the scheduled amount under this paragraph “b”, a dog or cat must be recorded as an adult on hand for breeding during the most recent inspection of the commercial breeder by the department of agriculture and land stewardship or the United States department of agriculture. The scheduled amount shall be assessed for the total number of dogs or cats kept at all locations operated by the commercial breeder.
   7.  For a commercial establishment that is a small breeder, competitive show breeder, or specialized breeder, all of the following shall apply:
   a.  The base amount equals seventy-five dollars. A single base amount shall be assessed for all locations operated by the small breeder, competitive show breeder, or specialized breeder.
   b.  A scheduled amount shall not be assessed.
   8.  The moneys collected by the department under this section shall be credited to the commercial establishment fund created in section 162.2C.
   9.  The fees provided in this section shall be considered repayment receipts as defined in section 8.2. The general assembly shall appropriate moneys to the department each state fiscal year necessary for the administration and enforcement of this chapter.
    Sec. 6.  Section 162.2C, subsection 3, Code 2019, is amended to read as follows:
   3.  Moneys in the fund are appropriated to the department and without further special authorization by the general assembly. The moneys shall be used exclusively by the department to carry out do all of the following: 
   a.  Administer and enforce the provisions of this chapter as determined and directed by the department, and shall not require further special authorization by the general assembly.
   b.  Fully fund the animal rescue remediation fund as provided in section 717B.13. For each state fiscal year, the department shall transfer at least twenty thousand dollars from moneys in the commercial establishment fund to the animal rescue remediation fund created in section 717B.13. However, if on March 1 the unobligated and unencumbered balance in the animal rescue remediation fund equals more than sixty thousand dollars, the department shall suspend the transfer for the subsequent state fiscal year. If on March 1 of a state fiscal year for which the transfer is suspended, the unobligated and unencumbered balance in the animal rescue remediation fund is less than forty thousand dollars, the department shall resume the transfer for the subsequent state fiscal year.
    Sec. 7.  NEW SECTION.  162.3A  Operation of an animal rescue —— license.
   1.  An animal rescue shall only operate pursuant to a license issued or renewed by the department as provided in section 162.2A. The animal rescue shall maintain records as required by section 162.10 in order for the department to ensure the animal rescue’s compliance with the provisions of this chapter.
   2.  An animal rescue shall not maintain a dog or cat received by the animal rescue in housing facilities owned or controlled by the animal rescue. However, the animal rescue may arrange to utilize an animal shelter, pound, or foster care home in order to maintain the dog or cat.
    Sec. 8.  NEW SECTION.  162.3B  Operation of an animal sanctuary —— license.
   1.  An animal sanctuary shall only operate pursuant to a license issued or renewed by the department as provided in section 162.2A. The animal sanctuary shall maintain records as required by section 162.10 in order for the department to ensure the animal sanctuary’s compliance with the provisions of this chapter.
   2.  An animal sanctuary shall not buy, sell, trade, auction, lease, loan, or breed any dog or cat that is owned or controlled by the animal sanctuary.
   3.  An animal sanctuary shall maintain a dog or cat received by the animal sanctuary in its care until the dog or cat dies by natural causes, is euthanized, or is transferred to another animal sanctuary, an animal rescue, an animal shelter, or a pound.
    Sec. 9.  NEW SECTION.  162.6A  Grooming facility —— license.
   1.  A grooming facility shall only operate pursuant to a license issued or renewed by the department as provided in section 162.2A. The grooming facility shall maintain records as required by section 162.10 in order for the department to ensure the grooming facility’s compliance with the provisions of this chapter.
   2.  A grooming facility shall not be in the business of buying and selling vertebrate animals.
    Sec. 10.  Section 162.8, Code 2019, is amended to read as follows:
   162.8  Operation of a commercial breeder —— state license or permit.
   1.  A commercial breeder shall only operate pursuant to a state license, or a permit, issued or renewed by the department as provided in section 162.2A. A commercial breeder who is a state licensee shall maintain records as required by the department in section 162.10 in order for the department to ensure the commercial breeder’s compliance with the provisions of this chapter. A commercial breeder who is a permittee may but is not required to maintain records.
   2.  A commercial breeder shall not purchase a dog or cat from a commercial establishment that does not have a valid authorization license issued or renewed under this chapter or a similar authorization license issued or renewed by another state.
   3.  A commercial breeder shall not operate an animal shelter or maintain a controlling interest in an animal shelter.
    Sec. 11.  NEW SECTION.  162.9  Operation of a small breeder, competitive show breeder, or specialized breeder —— license.
   1.  A person who is a small breeder, competitive show breeder, or specialized breeder shall only operate pursuant to a license issued or renewed by the department as provided in section 162.2A.
   2.  A person shall not be eligible for the issuance, maintenance, or renewal of a license under this section if the person holds a public auction license pursuant to section 162.9A.
    Sec. 12.  NEW SECTION.  162.10  Records.
   1.  A commercial establishment shall maintain all records required in this chapter. The department shall adopt rules regarding the types of records required to be kept and the format for keeping such records.
   2.  A commercial establishment shall maintain all records necessary for the department to assess a fee imposed for the issuance or renewal of a license pursuant to section 162.2A.
   3.  A commercial establishment shall maintain inspection reports as required in section 162.10B.
    Sec. 13.  Section 162.10B, Code 2019, is amended to read as follows:
   162.10B  Commercial establishments —— inspecting state licensees and registrants Inspections —— general requirements.
   1.  As a condition of issuing or renewing a license, the premises of an applicant shall be open for inspection during normal business hours.
   2.  The department shall conduct an inspection of a commercial establishment at least annually.  The department may shall inspect the commercial establishment of a registrant or state licensee by entering onto its business premises at any time during normal working business hours. The department may shall inspect records required to be maintained by the state licensee or registrant commercial establishment as provided in this chapter section 162.10. If the owner or person in charge of the commercial establishment refuses admittance, the department may obtain an administrative search warrant issued under section 808.14.  The department shall report a potential violation of chapter 717B to the local authority that has jurisdiction over the matter.
   3.  a.  A commercial breeder offering to sell a dog to a person shall provide that person with the most recent inspection report completed by all of the following:
   (1)  The department of agriculture and land stewardship. The report shall include the recorded number of adult dogs on hand.
   (2)  The United States department of agriculture, if the commercial breeder is licensed under the Animal Welfare Act.
   b.  The inspection report must be signed by the dog’s purchaser prior to finalizing the sale. 
   c.  A copy of each applicable signed inspection report shall be maintained for twelve months by the commercial breeder as part of the commercial breeder’s records as provided in section 162.10 and a copy of the signed inspection report completed by the department of agriculture and land stewardship shall be filed with the department.
    Sec. 14.  Section 162.10C, Code 2019, is amended by striking the section and inserting in lieu thereof the following:
   162.10C  Inspections —— restricted requirements.
   1.  Notwithstanding section 162.10B, a person who holds a grooming facility license as provided in section 162.6A is subject to restricted inspection requirements. The department shall conduct the annual inspection of a licensed grooming facility at a scheduled time agreed to by the person and the department. However, the department is not required to schedule an inspection if any of the following applies:
   a.  The person is obstructing the scheduled inspection.
   b.  One or more dogs or cats kept by the person are in immediate need of care.
   2.  Notwithstanding section 162.10B, a person who holds a small breeder, competitive show breeder, or specialized breeder license as provided in section 162.9 is subject to restricted inspection requirements as follows:
   a.  The person is exempt from the inspection requirements of section 162.10B for the period of the license if the person submits evidence to the department that each dog kept by the person complies with all of the following:
   (1)  Has been examined by a licensed veterinarian within the twelve months prior to the person’s application for the issuance or renewal of the license.
   (2)  Received all vaccinations as prescribed by the department based on recommendations of the American veterinary medical association or American animal hospital association.
   b.  If the person does not comply with paragraph “a”, the department shall conduct the annual inspection at a scheduled time agreed to by the person and the department. However, the department is not required to schedule an inspection if any of the following applies:
   (1)  The person is obstructing the scheduled inspection.
   (2)  One or more dogs kept by the person are in immediate need of care.
    Sec. 15.  Section 162.10D, subsections 1 and 2, Code 2019, are amended to read as follows:
   1.  The department may take disciplinary action against a person by suspending or revoking the person’s authorization license for violating a violation of a provision of this chapter or chapter 717B, or who commits for the commission of an unlawful practice under section 714.16.  The department may take primary and secondary disciplinary action as follows: 
   a.  Primary disciplinary action may be taken against a person who operates the commercial establishment where the violation occurred.
   b.  Secondary disciplinary action may be taken against a person who operates another class of commercial establishment under a separate license pursuant to section 162.2A if such person is the same as the person who is subject to primary disciplinary action under paragraph “a”.
   2.  The department may require an owner, operator, or employee of a commercial establishment subject to disciplinary action under subsection 1 to complete a continuing education program as a condition for retaining an authorization a license. This section does not prevent a person from voluntarily participating in a continuing education program.  However, a continuing education program completed voluntarily prior to the imposition of the department’s disciplinary action shall not be part of such disciplinary action.
    Sec. 16.  Section 162.11, subsection 1, Code 2019, is amended by striking the subsection and inserting in lieu thereof the following:
   1.  This chapter does not apply to the operation of a veterinary facility, including any activity that would otherwise classify the veterinary facility as a commercial establishment so long as the activity is incidental to the practice of veterinary medicine. If the operations are conducted at an establishment in which the operations of the veterinary facility are segregated, this chapter shall apply only to that part of the establishment that does not operate as a veterinary facility.
    Sec. 17.  Section 162.11, subsection 2, Code 2019, is amended by striking the subsection.
    Sec. 18.  Section 162.11, subsection 3, Code 2019, is amended to read as follows:
   3.  This chapter does not apply to a noncommercial kennel at, in, or adjoining a private residence where dogs or cats are kept for the hobby of the householder, if the dogs or cats are used for hunting, for practice training, for exhibition at shows or field or obedience trials, or for guarding or protecting the householder’s property. However, the dogs or cats must not be kept for breeding if a person receives consideration for providing the breeding.
    Sec. 19.  Section 162.11, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  This chapter does not apply to a person who owns, keeps, breeds, or transports a greyhound dog for use at a dog racetrack facility regulated by the racing and gaming commission under chapter 99D.
    Sec. 20.  NEW SECTION.  162.13A  Criminal actions.
   The attorney general or a county attorney may bring criminal action in order to enforce the provisions of this chapter.
    Sec. 21.  NEW SECTION.  162.13B  Injunctive relief.
   A court of this state may prevent or restrain a violation of this chapter through the issuance of an injunction. The attorney general or a county attorney shall institute a suit on behalf of the state to prevent or restrain a violation of this chapter.
    Sec. 22.  Section 162.20, subsection 4, paragraph c, Code 2019, is amended to read as follows:
   c.  A pound or animal shelter which knowingly fails to provide for the sterilization of a dog or cat is subject to a civil penalty of up to two hundred dollars. The department may enforce and collect civil penalties according to rules which shall be adopted by the department. Each violation shall constitute a separate offense. Moneys Notwithstanding section 162.11, subsection 4, moneys collected from civil penalties shall be deposited into the general fund of the state and are appropriated on July 1 of each year in equal amounts to each track licensed to race dogs to support the racing dog adoption program as provided in section 99D.27. Upon the third offense, the department may suspend or revoke a certificate of registration license issued to the pound or animal shelter pursuant to this chapter section 162.2A. The department may bring an action in district court to enjoin a pound or animal shelter from transferring animals in violation of this section. In bringing the action, the department shall not be required to allege facts necessary to show, or tending to show, a lack of adequate remedy at law, that irreparable damage or loss will result if the action is brought at law, or that unique or special circumstances exist.
    Sec. 23.  Section 162.20, subsection 5, paragraphs b and c, Code 2019, are amended to read as follows:
   b.  The transfer of a dog or cat by a pound or animal shelter which has obtained an enforcement waiver issued by the department. The pound or shelter may apply for an annual waiver each year as provided by rules adopted by the department. The department shall grant a waiver, if it determines that the pound or animal shelter is subject to an ordinance by a city or county which includes stricter requirements than provided in this section. The department shall not charge more than ten dollars as a waiver application fee. The fees collected by the department shall be deposited in the general fund of the state animal rescue remediation fund created in section 717B.13.
   c.  The transfer of a dog or cat to a research facility as defined in section 162.2 or a person licensed by the United States department of agriculture as a class B dealer pursuant to 
9 C.F.R. ch. 1, subch. A, pt. 2
. However, a class B dealer who receives an unsterilized dog or cat from a pound or animal shelter shall either sterilize the dog or cat or transfer the unsterilized dog or cat to a research facility provided in this paragraph. The class B dealer shall not transfer a dog to a research facility if the dog is a greyhound registered with the national greyhound association and the dog raced at a track associated with pari-mutuel racing unless the class B dealer receives written approval of the transfer from a person who owned an interest in the dog while the dog was racing.
    Sec. 24.  NEW SECTION.  162.21  Sterilization —— animal sanctuaries.
   1.  An animal sanctuary receiving a dog or cat shall provide for the sterilization of the dog or cat using the veterinary procedures prescribed in section 162.20.
   2.  An animal sanctuary shall provide for the sterilization within ten days from the date that the animal sanctuary receives the dog or cat, unless any of the following apply:
   a.  The department imposes a stricter requirement by rule.
   b.  A licensed veterinarian grants an extension of the period required for the completion of the sterilization, if the extension is based on the health of the dog or cat.
   3.  a.  An animal sanctuary that knowingly fails to provide for the sterilization of a dog or cat is subject to a civil penalty of up to two hundred dollars.
   b.  The department may enforce and collect civil penalties according to rules which shall be adopted by the department. Each violation shall constitute a separate violation. Moneys collected from civil penalties shall be credited to the animal rescue remediation fund created in section 717B.13.
   4.  Upon the third violation of this section, the department may suspend or revoke the license issued to the animal sanctuary pursuant to section 162.2A.
   5.  The department may bring an action in district court to enjoin an animal sanctuary from transferring animals in violation of this section in the same manner as provided in section 162.20.
   6.  This section shall not apply to the return of a dog or cat to its owner by an animal sanctuary, except as provided by rules adopted by the department.
    Sec. 25.  Section 717B.1, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  3A.  “Commercial establishment” means the same as defined in section 162.2.
    Sec. 26.  Section 717B.4, subsection 3, paragraph a, Code 2019, is amended to read as follows:
   a.  The court may order the responsible party to pay an amount which shall not be more than the dispositional expenses incurred by the local authority. The court may also award the local authority court costs, reasonable attorney fees and expenses related to the investigation and prosecution of the case, which shall be taxed as part of the costs of the action.  The amount shall be paid to the animal rescue remediation fund created in section 717B.13 to the extent that moneys from the fund were expended to pay for dispositional expenses.
    Sec. 27.  Section 717B.5, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  3A.  The local authority may apply to the department for reimbursement of expenses incurred by the local authority in providing for the maintenance of the animal.
    Sec. 28.  NEW SECTION.  717B.13  Animal rescue remediation fund.
   1.  An animal rescue remediation fund is created as a separate fund in the state treasury under the control of the department of agriculture and land stewardship. The general fund of the state is not liable for claims presented against the fund.
   2.  The fund consists of moneys appropriated to the fund, moneys transferred from the commercial establishment fund as provided in section 162.2C, moneys credited to the fund as provided in sections 162.20 and 162.21, sums collected on behalf of the fund through legal action or settlement, and moneys contributed to the fund from other sources.
   3.  The moneys in the fund are appropriated to the department to reimburse a local authority for expenses incurred for the rescuing of an animal from a commercial establishment as provided in section 717B.5, for the maintenance of an animal as provided in section 717B.5, and for the disposition of an animal as provided in section 717B.4.
   4.  The department shall utilize moneys from the fund only to the extent that the department determines that expenses cannot be timely paid by utilizing the available provisions of section 717B.4.
   5.  The department shall provide payment to a local authority upon a claim submitted by the local authority to the department according to procedures required by the department. Upon a determination that the claim is eligible for payment, the department shall reimburse the local authority for that amount. However, if the department determines that only a portion of the claim is eligible, the department shall only pay the eligible portion. If the department determines that insufficient moneys are available to make payment of all claims, the department may defer paying all or part of specified claims. The department shall hold deferred claims for payment when the department determines that the fund again contains sufficient moneys.
   6.  Moneys in the fund shall not be subject to appropriation or expenditure for any other purpose than provided in this section and section 162.2C.
   7.  Notwithstanding section 12C.7, interest earned on amounts deposited in the fund shall be credited to the fund. Notwithstanding section 8.33, any unexpended or unencumbered moneys remaining in the fund at the end of the fiscal year shall not revert to the general fund of the state, but the moneys shall remain available for expenditure by the authority in succeeding fiscal years.
    Sec. 29.  CURRENT AUTHORIZATIONS.
   1.  A current valid certificate of registration issued or renewed by the department of agriculture and land stewardship to an animal shelter, pound, or research facility under section 162.2A prior to the effective date of this Act shall remain valid until it expires according to its terms when issued or renewed.
   2.  A current valid state license issued or renewed by the department of agriculture and land stewardship to a commercial kennel that operates as a grooming facility as defined in section 162.2, as amended in this Act, shall remain valid until it expires according to the terms when issued or renewed.
DIVISION II
COORDINATING PROVISIONS

    Sec. 30.  Section 162.3, Code 2019, is amended to read as follows:
   162.3  Operation of a pound —— certificate of registration license.
   A pound shall only operate pursuant to a certificate of registration license issued or renewed by the department as provided in section 162.2A.  A pound may sell dogs or cats under its control if sales are allowed by the department. The pound shall maintain records as required by the department in section 162.10 in order for the department to ensure the pound’s compliance with the provisions of this chapter.
    Sec. 31.  Section 162.4, Code 2019, is amended to read as follows:
   162.4  Operation of an animal shelter —— certificate of registration license.
   An animal shelter shall only operate pursuant to a certificate of registration license issued or renewed by the department as provided in section 162.2A. An animal shelter may sell dogs or cats if sales are allowed by the department. The animal shelter facility shall maintain records as required by the department in section 162.10 in order for the department to ensure the animal shelter’s compliance with the provisions of this chapter.
    Sec. 32.  Section 162.4A, Code 2019, is amended to read as follows:
   162.4A  Operation of a research facility —— certificate of registration license.
   1.  A research facility shall only operate pursuant to a certificate of registration license issued or renewed by the department as provided in section 162.2A. The research facility shall maintain records as required by the department in section 162.10 in order for the department to ensure the research facility’s compliance with the provisions of this chapter.
   2.  A research facility shall not purchase a dog or cat from a commercial establishment that does not have a valid authorization license issued or renewed under this chapter or a similar authorization license issued or renewed by another state.
    Sec. 33.  Section 162.5, Code 2019, is amended to read as follows:
   162.5  Operation of a pet shop —— state license.
   1.  A pet shop shall only operate pursuant to a state license issued or renewed by the department pursuant to section 162.2A. The pet shop shall maintain records as required by the department section 162.10 in order for the department to ensure the pet shop’s compliance with the provisions of this chapter.
   2.  A pet shop shall not purchase a dog or cat from a commercial establishment that does not have a valid authorization license issued or renewed under this chapter or a similar authorization license issued or renewed by another state.
    Sec. 34.  Section 162.5A, Code 2019, is amended to read as follows:
   162.5A  Operation of a boarding kennel —— state license.
   A boarding kennel shall only operate pursuant to a state license issued or renewed by the department as provided in section 162.2A. The boarding kennel shall maintain records as required by the department section 162.10 in order for the department to ensure the boarding kennel’s compliance with the provisions of this chapter. A boarding kennel shall not purchase a dog or cat from a commercial establishment that does not have a valid authorization license issued or renewed under this chapter or a similar authorization license issued or renewed by another state.
    Sec. 35.  Section 162.6, Code 2019, is amended to read as follows:
   162.6  Operation of a commercial kennel —— state license.
   A commercial kennel shall only operate pursuant to a state license issued or renewed by the department as provided in section 162.2A. A commercial kennel shall maintain records as required by the department section 162.10 in order for the department to ensure the commercial kennel’s compliance with the provisions of this chapter. A commercial kennel shall not purchase a dog or cat from a commercial establishment that does not have a valid authorization license issued or renewed under this chapter or a similar authorization license issued or renewed by another state.
    Sec. 36.  Section 162.7, Code 2019, is amended to read as follows:
   162.7  Operation of a dealer —— state license or permit.
   A dealer shall only operate pursuant to a state license, or a permit, issued or renewed by the department as provided in section 162.2A. A dealer who is a state licensee shall maintain records as required by the department section 162.10 in order for the department to ensure compliance with the provisions of this chapter. A dealer who is a permittee may but is not required to maintain records. A dealer shall not purchase a dog or cat from a commercial establishment that does not have a valid authorization license issued or renewed under this chapter or a similar authorization license issued or renewed by another state.
    Sec. 37.  Section 162.9A, Code 2019, is amended to read as follows:
   162.9A  Operation of a public auction —— state license or permit.
   1.  A public auction shall only operate pursuant to a state license, or a permit, issued or renewed by the department as provided in section 162.2A. A public auction which is a state licensee shall maintain records as required by the department section 162.10 in order for the department to ensure the public auction’s compliance with the provisions of this chapter. A public auction which is a permittee may but is not required to maintain records. A public auction shall not purchase a dog or cat from a commercial establishment that does not have a valid authorization license issued or renewed under this chapter or a similar authorization license issued or renewed by another state.
   2.  A person shall not be eligible for the issuance, maintenance, or renewal of a license under this section if the person holds a small breeder, competitive show breeder, or specialized breeder license under section 162.9.
    Sec. 38.  Section 162.10A, subsection 2, Code 2019, is amended by striking the subsection.
    Sec. 39.  Section 162.12, Code 2019, is amended to read as follows:
   162.12  Denial of application or revocation of license or registration.
   A certificate of registration An application for a license may be denied to any animal shelter, pound, or research facility and a state license may be denied to any public auction, boarding kennel, commercial kennel, pet shop, commercial breeder, or dealer, or an existing certificate of registration or state license may be revoked by the secretary if, after public hearing, it is determined that the housing facilities or primary enclosures of a commercial establishment are inadequate under this chapter or if the feeding, watering, cleaning, and housing practices at the animal rescue, animal sanctuary, pound, animal shelter, public auction, pet shop, boarding kennel, commercial kennel, grooming facility, or research facility, or those practices by the commercial breeder, or dealer, or small breeder, competitive show breeder, or specialized breeder are not in compliance with this chapter or with the rules adopted pursuant to this chapter. The premises of each registrant or state licensee shall be open for inspection during normal business hours.
    Sec. 40.  Section 162.12A, subsection 1, paragraph a, Code 2019, is amended to read as follows:
   a.  A commercial establishment that operates pursuant to an authorization a license issued or renewed under this chapter is subject to a civil penalty of not more than five hundred dollars, regardless of the number of animals possessed or controlled by the commercial establishment, for violating this chapter. Except as provided in paragraph “b”, each day that a violation continues shall be deemed a separate offense.
    Sec. 41.  Section 162.12A, subsection 2, Code 2019, is amended to read as follows:
   2.  A commercial establishment that does not operate pursuant to an authorization a license issued or renewed under this chapter is subject to a civil penalty of not more than one thousand dollars, regardless of the number of animals possessed or controlled by the commercial establishment, for violating this chapter. Each day that a violation continues shall be deemed a separate offense.
    Sec. 42.  Section 162.13, subsections 1 and 3, Code 2019, are amended to read as follows:
   1.  A person who operates a commercial establishment without an authorization a license issued or renewed by the department as required in section 162.2A is guilty of a simple misdemeanor and each day of operation is a separate offense.
   3.  The failure of a person who owns or operates a commercial establishment to meet the requirements of this section is also cause for the suspension or revocation of the person’s authorization license as provided in section 162.10D. 
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   CURRENT LAW. Code chapter 162 provides for the regulation of commercial establishments that possess or control animals, other than animals used for an agricultural purpose (Code section 162.1), by the department of agriculture and land stewardship (DALS). Commercial establishments include animal shelters, pounds, and research facilities which are required to obtain a certificate of registration; boarding kennels, commercial kennels, and pet shops which are required to obtain a state license; and commercial breeders, dealers, and public auctions which are required to obtain a state license or a permit if licensed by the United States department of agriculture (USDA) (Code section 162.2A).
   BILL’S PROVISIONS. This bill refers to each type of commercial establishment as a class and requires that a person operating one or more commercial establishments of the same class obtain a single license. The bill also creates four new types of licenses for: (1) grooming facilities, (2) animal rescues, (3) animal sanctuaries, and (4) small breeders, competitive show breeders, or specialized breeders. The bill also recognizes animal foster care homes that temporarily maintain dogs or cats on behalf of animal rescues, animal shelters, and pounds. The bill replaces the current fee system with one that includes the assessment of a base amount and the possible assessment of a scheduled amount based on class. The moneys from fees are still deposited into the commercial establishment fund. However, an amount is to be transferred to a new animal rescue remediation fund also under the control of DALS. The bill requires DALS to perform inspections and licensees to maintain records. The bill provides that DALS may take disciplinary action by suspending or revoking the person’s license. It provides that any continuing education program voluntarily completed by a person operating a commercial establishment prior to a disciplinary action is not considered part of such action. The bill provides for the sterilization of dogs or cats that are in the custody of an animal sanctuary. Greyhound dogs used in pari-mutuel wagering are exempted from regulation. Finally, the bill provides that the attorney general or a county attorney may bring a criminal action in order to enforce the provisions of the Code chapter and allows a court to provide injunctive relief.