H.F. _____ Section 1. Section 162.1, Code 2009, is amended to read as 1 follows: 2 162.1 Policy Purpose and scope . 3 1. The purpose of this chapter is to do all of the 4 following : 5 1. a. To insure Insure that all dogs and cats handled by 6 boarding kennels, commercial kennels, commercial breeders, 7 dealers, and public auctions pet establishments are provided 8 with humane care and treatment by regulating . 9 b. Regulate the transportation, sale, purchase, housing, 10 care, handling, and treatment of such animals dogs and cats by 11 persons or organizations engaged in transporting, buying, or 12 selling them and to provide . 13 c. Provide that all vertebrate animals consigned to pet 14 shops are provided humane care and treatment by regulating the 15 transportation, sale, purchase, housing, care, handling, and 16 treatment of such animals by pet shops. 17 2. d. To authorize Authorize the sale, trade, or adoption 18 of only those animals which appear to be free of infectious or 19 communicable disease. 20 3. e. To protect Protect the public from zoonotic disease. 21 2. This chapter does not apply to livestock as defined 22 in section 717.1 or any other agricultural animal used in 23 agricultural production as provided in chapter 717A. 24 Sec. 2. Section 162.2, Code Supplement 2009, is amended by 25 adding the following new subsections: 26 NEW SUBSECTION . 4A. “Animal Welfare Act” means the 27 federal Animal Welfare Act, 7 U.S.C. ch. 54, and regulations 28 promulgated by the United States department of agriculture and 29 published in 9 C.F.R. ch. 1. 30 NEW SUBSECTION . 4B. “Authorization” means a state license, 31 certificate of registration, or permit issued or renewed by the 32 department to a commercial establishment as provided in section 33 162.2A. 34 NEW SUBSECTION . 6A. “Commercial establishment” or 35 -1- LSB 6171YC (9) 83 da/rj 1/ 17

H.F. _____ “establishment” means an animal shelter, boarding kennel, 1 commercial breeder, commercial kennel, dealer, pet shop, pound, 2 public auction, or research facility. 3 NEW SUBSECTION . 8A. “Department” means the department of 4 agriculture and land stewardship. 5 NEW SUBSECTION . 9A. “Federal license” means a license 6 issued by the United States department of agriculture to a 7 person classified as a dealer or exhibitor pursuant to the 8 federal Animal Welfare Act. 9 NEW SUBSECTION . 9B. “Federal licensee” means a person to 10 whom a federal license as a dealer or exhibitor is issued. 11 NEW SUBSECTION . 10A. “Permittee” means a commercial 12 breeder, dealer, or public auction to whom a permit is issued 13 by the department as a federal licensee pursuant to section 14 162.2A. 15 NEW SUBSECTION . 15A. “Registrant” means a pound, animal 16 shelter, or research facility to whom a certificate of 17 registration is issued by the department pursuant to section 18 162.2A. 19 NEW SUBSECTION . 16A. “State fiscal year” means the fiscal 20 year described in section 3.12. 21 NEW SUBSECTION . 16B. “State licensee” means any of the 22 following: 23 a. A boarding kennel, commercial kennel, or pet shop to whom 24 a state license is issued by the department pursuant to section 25 162.2A. 26 b. A commercial breeder, dealer, or public auction to whom 27 a state license is issued in lieu of a permit by the department 28 pursuant to section 162.2A. 29 Sec. 3. Section 162.2, subsection 6, Code Supplement 2009, 30 is amended to read as follows: 31 6. “Commercial breeder” means a person, engaged in the 32 business of breeding dogs or cats, who sells, exchanges, 33 or leases dogs or cats in return for consideration, or who 34 offers to do so, whether or not the animals are raised, 35 -2- LSB 6171YC (9) 83 da/rj 2/ 17

H.F. _____ trained, groomed, or boarded by the person. A person who 1 owns or harbors three or fewer breeding males or females is 2 not a commercial breeder. However, a person who breeds or 3 harbors more than three breeding male or female greyhounds 4 for the purposes of using them for pari-mutuel racing shall 5 be considered a commercial breeder irrespective of whether 6 the person sells, leases, or exchanges the greyhounds for 7 consideration or offers to do so. 8 Sec. 4. Section 162.2, subsection 13, Code Supplement 2009, 9 is amended to read as follows: 10 13. “Pound” or “dog pound” means a facility for the 11 prevention of cruelty to animals operated by the state, a 12 municipal corporation, or other political subdivision of the 13 state for the purpose of impounding or harboring seized stray, 14 homeless, abandoned or unwanted dogs, cats or other animals; or 15 a facility operated for such a purpose under a contract with 16 any municipal corporation or incorporated society. 17 Sec. 5. NEW SECTION . 162.2A Application, issuance, and 18 renewal of authorizations. 19 1. The department shall provide for the operation 20 of a commercial establishment by issuing or renewing an 21 authorization, including any of the following: 22 a. A certificate of registration for a pound, animal, 23 shelter, or research facility. 24 b. A state license for a boarding kennel, commercial kennel, 25 or pet shop. 26 c. A state license or permit for a commercial breeder, 27 dealer, or public auction. A federal licensee must apply for 28 and be issued either a permit or a state license in lieu of a 29 permit. 30 2. A person must be issued a separate state license, 31 certificate of registration, or permit for each commercial 32 establishment owned or operated by the person. 33 3. A person must apply for the issuance or renewal of an 34 authorization on forms and according to procedures required by 35 -3- LSB 6171YC (9) 83 da/rj 3/ 17

H.F. _____ rules adopted by the department. The application shall contain 1 information required by the department, including but not 2 limited to all of the following: 3 a. The person’s name. 4 b. The person’s principal office or place of business. 5 c. The name, address, and type of establishment covered by 6 the authorization. 7 d. The beginning and end of the person’s fiscal year. 8 e. The gross amount received by the person from the sales 9 of dogs and cats during the person’s last fiscal year. The 10 department in cooperation with the department of revenue may 11 adopt rules providing a formula for a pet shop selling animals 12 and merchandise to estimate the gross amount received by the 13 pet shop from the sale of vertebrate animals. 14 4. An authorization expires at the end of the commercial 15 establishment’s fiscal year, and must be renewed by the 16 department on or before that date. 17 5. The department shall transfer information contained in 18 an application to the department of revenue as necessary to 19 ensure that the department of revenue may collect necessary 20 sales tax revenue from commercial establishments. 21 Sec. 6. NEW SECTION . 162.2B Fees. 22 The department shall establish, assess, and collect fees as 23 provided in this section. 24 1. A commercial establishment shall pay authorization fees 25 to the department for the issuance or renewal of a certificate 26 of registration, state license, or permit. 27 a. For the issuance or renewal of a certificate of 28 registration provided to: 29 (1) An animal shelter .............................. No fee 30 (2) A publicly owned pound ......................... No fee 31 (3) A privately owned pound ........................... $15 32 (4) A research facility ............................ No fee 33 b. For the issuance or renewal of a state license provided 34 to: 35 -4- LSB 6171YC (9) 83 da/rj 4/ 17

H.F. _____ (1) A boarding kennel ............................... $150 1 (2) A commercial kennel ............................. $150 2 c. The amount of the fees required to be paid for the 3 issuance or renewal of a state license to a pet shop and 4 for the issuance or renewal of a state license or permit to 5 a commercial breeder, dealer, or public auction shall be 6 established by rules adopted by the department. The rules 7 shall to every extent practicable be based on the schedule for 8 fees assessed by the United States department of agriculture 9 when accepting an application or issuing or renewing a 10 class “A” dealer’s license under the Animal Welfare Act. 11 The department may require that a federal licensee produce 12 information on forms used by the United States department of 13 agriculture when issuing or renewing a permit or state license. 14 2. Notwithstanding subsection 1, before the end of each 15 state fiscal year, the department shall, if necessary, adopt 16 rules to establish or adjust the amount of the fees required to 17 be paid by state licensees and permittees during the next state 18 fiscal year. The department shall determine the amount of the 19 fees based on the number of full-time equivalent positions 20 authorized by the general assembly to administer and enforce 21 this chapter. However, a state licensee or permittee shall not 22 pay less than fifty dollars. The amount of the adjusted fees 23 shall take effect on July 1 or thirty days after the effective 24 date of the Act authorizing the number of full-time equivalent 25 positions, whichever is later. A state licensee or permittee 26 shall pay the adjusted amount when renewing an authorization. 27 3. The department shall retain all fees that it collected 28 under this section. If necessary to administer and enforce 29 this chapter, the department may temporarily exceed and draw 30 more than the amount received from the payment of fees during 31 any time during a state fiscal year and subsequently incur 32 a negative cash balance. However, the total amount of fees 33 received by the department in the state fiscal year must be 34 equal to or greater than the negative balance at the close of 35 -5- LSB 6171YC (9) 83 da/rj 5/ 17

H.F. _____ the state fiscal year. 1 Sec. 7. Section 162.3, Code 2009, is amended by striking the 2 section and inserting in lieu thereof the following: 3 162.3 Operation of a pound —— certificate of registration. 4 A pound shall only operate pursuant to a certificate of 5 registration issued or renewed by the department as provided 6 in section 162.2A. A pound may sell dogs or cats under its 7 control, if sales are allowed by the department. The pound 8 shall maintain records as required by the department in order 9 for the department to ensure the pound’s compliance with the 10 provisions of this chapter. 11 Sec. 8. Section 162.4, Code 2009, is amended by striking the 12 section and inserting in lieu thereof the following: 13 162.4 Operation of an animal shelter —— certificate of 14 registration. 15 An animal shelter shall only operate pursuant to a 16 certificate of registration issued or renewed by the department 17 as provided in section 162.2A. An animal shelter may sell dogs 18 or cats if sales are allowed by the department. The animal 19 shelter facility shall maintain records as required by the 20 department in order for the department to ensure the animal 21 shelter’s compliance with the provisions of this chapter. 22 Sec. 9. NEW SECTION . 162.4A Operation of a research 23 facility —— certificate of registration. 24 A research facility shall only operate pursuant to a 25 certificate of registration issued by the department as 26 provided in section 162.2A. The research facility shall 27 maintain records as required by the department in order for the 28 department to ensure the research facility’s compliance with 29 the provisions of this chapter. A research facility shall not 30 purchase a dog or cat from a commercial establishment that does 31 not have a valid authorization. 32 Sec. 10. Section 162.5, Code 2009, is amended by striking 33 the section and inserting in lieu thereof the following: 34 162.5 Operation of a pet shop —— state license. 35 -6- LSB 6171YC (9) 83 da/rj 6/ 17

H.F. _____ A pet shop shall only operate pursuant to a state license 1 issued or renewed by the department pursuant to section 2 162.2A. The pet shop shall maintain records as required by the 3 department in order for the department to ensure the pet shop’s 4 compliance with the provisions of this chapter. A pet shop 5 shall not purchase a dog or cat from a commercial establishment 6 that does not have a valid authorization. 7 Sec. 11. NEW SECTION . 162.5A Operation of a boarding kennel 8 —— state license. 9 A boarding kennel shall only operate pursuant to a state 10 license issued by the department as provided in section 162.2A. 11 The boarding kennel shall maintain records as required by 12 the department in order for the department to ensure the 13 boarding kennel’s compliance with the provisions of this 14 chapter. A boarding kennel shall not purchase a dog or cat 15 from a commercial establishment that does not have a valid 16 authorization. 17 Sec. 12. Section 162.6, Code 2009, is amended by striking 18 the section and inserting in lieu thereof the following: 19 162.6 Operation of a commercial kennel —— state license or 20 permit. 21 A commercial kennel shall only operate pursuant to a state 22 license issued or renewed by the department as provided in 23 section 162.2A. A commercial kennel shall maintain records 24 as required by the department in order for the department to 25 ensure the commercial kennel’s compliance with the provisions 26 of this chapter. A commercial kennel shall not purchase a dog 27 or cat from a commercial establishment that does not have a 28 valid authorization. 29 Sec. 13. Section 162.7, Code 2009, is amended by striking 30 the section and inserting in lieu thereof the following: 31 162.7 Operation of a dealer —— state license or permit. 32 A dealer shall only operate pursuant to a state license, 33 or a permit, issued or renewed by the department as provided 34 in section 162.2A. A dealer who is a state licensee shall 35 -7- LSB 6171YC (9) 83 da/rj 7/ 17

H.F. _____ maintain records as required by the department in order for the 1 department to ensure compliance with the provisions of this 2 chapter. A dealer who is a permittee may, but is not required 3 to maintain records. A dealer shall not purchase a dog or cat 4 from a commercial establishment that does not have a valid 5 authorization. 6 Sec. 14. Section 162.8, Code 2009, is amended by striking 7 the section and inserting in lieu thereof the following: 8 162.8 Operation of a commercial breeder —— state license or 9 permit. 10 A commercial breeder shall only operate pursuant to a state 11 license, or a permit, issued or renewed by the department 12 as provided in section 162.2A. A commercial breeder who is 13 a state licensee shall maintain records as required by the 14 department in order for the department to ensure the commercial 15 breeder’s compliance with the provisions of this chapter. A 16 commercial breeder who is a permittee may but is not required 17 to maintain records. A commercial breeder shall not purchase a 18 dog or cat from a commercial establishment that does not have 19 a valid authorization. 20 Sec. 15. NEW SECTION . 162.9A Operation of a public auction 21 —— state license or permit. 22 A public auction shall only operate pursuant to a state 23 license, or a permit, issued or renewed by the department 24 as provided in section 162.2A. A public auction which is 25 a state licensee shall maintain records as required by the 26 department in order for the department to ensure the public 27 auction’s compliance with the provisions of this chapter. A 28 public auction which is a permittee may but is not required to 29 maintain records. A public auction shall not purchase a dog or 30 cat from a commercial establishment that does not have a valid 31 authorization. 32 Sec. 16. NEW SECTION . 162.10A Commercial establishments —— 33 standard of care. 34 1. a. A commercial establishment shall provide for a 35 -8- LSB 6171YC (9) 83 da/rj 8/ 17

H.F. _____ standard of care that ensures that an animal in its possession 1 or under its control is not lacking any of the following: 2 (1) Adequate feed, adequate water, housing facilities, 3 sanitary control, or grooming practices, if such lack causes 4 adverse health or suffering. 5 (2) Veterinary care. 6 b. A commercial establishment, other than a research 7 facility or pet shop, shall provide for the standard of care 8 for dogs and cats in its possession or under its control, and a 9 research facility or pet shop shall provide for the standard of 10 care for invertebrate animals in its possession or under its 11 control. 12 2. a. Except as provided in paragraph “b” , a commercial 13 establishment shall comply with rules that the department 14 adopts to implement subsection 1. A commercial establishment 15 shall be regulated under this paragraph “a” unless the person is 16 a permittee as provided in paragraph “b” . 17 b. A permittee is not required to comply with rules that 18 the department adopts to implement subsection 1. However, a 19 permittee meets the standard of care required in subsection 20 1 if it complies with rules adopted by the department to 21 implement that subsection as provided in paragraph “a” . A 22 permittee may meet that standard of care without complying 23 with the department’s rules. A finding by the United States 24 department of agriculture that a permittee complies with the 25 Animal Welfare Act is not conclusive when determining that the 26 permittee provides a standard of care required in subsection 1. 27 3. A commercial establishment fails to provide for a 28 standard of care as provided in subsection 1, if the commercial 29 establishment commits abuse as described in section 717B.2, 30 neglect as described in section 717B.3, or torture as provided 31 in section 717B.3A. 32 Sec. 17. NEW SECTION . 162.10B Commercial establishments —— 33 inspecting state licensees and registrants. 34 The department may inspect the commercial establishment of 35 -9- LSB 6171YC (9) 83 da/rj 9/ 17

H.F. _____ a registrant or state licensee by entering onto its business 1 premises at any time during normal working hours. The 2 department may inspect records required to be maintained by the 3 state licensee or registrant as provided in this chapter. If 4 the owner or person in charge of the commercial establishment 5 refuses admittance, the department may obtain an administrative 6 search warrant issued under section 808.14. 7 Sec. 18. NEW SECTION . 162.10C Commercial establishments 8 —— monitoring permittees. 9 1. The department may monitor the commercial establishment 10 of a permittee by entering onto its business premises at 11 any time during normal working hours. The department shall 12 monitor the commercial establishment for the limited purpose of 13 determining whether the permittee is providing for a standard 14 of care required for permittees under section 162.10A. If 15 the owner or person in charge of the commercial establishment 16 refuses admittance, the department may obtain an administrative 17 search warrant issued under section 808.14. 18 2. In order to enter onto the business premises of a 19 permittee’s commercial establishment, the department must have 20 reasonable cause to suspect that the permittee is not providing 21 for the standard of care required for permittees under section 22 162.10A. Reasonable cause must be supported by any of the 23 following: 24 a. An oral or written complaint received by the department 25 by a person. The complainant must provide the complainant’s 26 name and address and telephone number. Notwithstanding chapter 27 22, the department’s record of a complaint is confidential, 28 unless any of the following apply: 29 (1) The results of the monitoring are used in a contested 30 case proceeding as provided in chapter 17A or in a judicial 31 proceeding. 32 (2) The record is sought in discovery in any administrative, 33 civil, or criminal case. 34 (3) The department’s record of a complaint is filed by a 35 -10- LSB 6171YC (9) 83 da/rj 10/ 17

H.F. _____ person other than an individual. 1 b. A report prepared by a person employed by the United 2 States department of agriculture that requires a permittee to 3 take action necessary to correct a breach of standard of care 4 required of federal licensees by the Animal Welfare Act or of 5 permittees by section 162.10A. 6 3. When carrying out this section, the department may 7 cooperate with the United States department of agriculture. 8 The department shall report any findings resulting in an 9 enforcement action under section 162.10D to the United States 10 department of agriculture. 11 Sec. 19. NEW SECTION . 162.10D Commercial establishments 12 —— disciplinary actions. 13 1. The department may take disciplinary action against a 14 person by suspending or revoking the person’s authorization for 15 violating a provision of this chapter or chapter 717B, or who 16 commits an unlawful practice under section 714.16. 17 2. The department may require that an owner, operator, or 18 employee of a commercial establishment subject to disciplinary 19 action under subsection 1 to complete a continuing education 20 program as a condition for retaining an authorization. 21 This section does not prevent a person from voluntarily 22 participating in a continuing education program. 23 3. The department shall administer the continuing education 24 program by either providing direct instruction or selecting 25 persons to provide such instruction. The department is not 26 required to compensate persons for providing the instruction, 27 and may require attendees to pay reasonable fees necessary to 28 compensate the department providing the instruction or a person 29 selected by the department to provide the instruction. The 30 department shall, to every extent possible, select persons to 31 provide the instruction by consulting with organizations that 32 represent commercial establishments, including but not limited 33 to the Iowa pet breeders association. 34 4. The department shall establish the criteria for a 35 -11- LSB 6171YC (9) 83 da/rj 11/ 17

H.F. _____ continuing education program which shall include at least three 1 and not more than eight hours of instruction. The department 2 shall provide for the program’s beginning and ending dates. 3 However, a person must complete the program in twelve months 4 or less. 5 Sec. 20. Section 162.11, subsections 1 through 3, Code 2009, 6 are amended by striking the subsections. 7 Sec. 21. Section 162.11, Code 2009, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 6. This chapter does not apply to a person 10 who owns, breeds, transports, or keeps a greyhound dog for 11 pari-mutuel wagering at a racetrack as provided in chapter 99D. 12 Sec. 22. NEW SECTION . 162.12A Civil penalties. 13 1. The department shall establish, impose, and assess civil 14 penalties for violations of this chapter. The department may 15 by rule establish a schedule of civil penalties for violations 16 of this chapter. 17 2. a. Except as provided in paragraph “b” , a person who 18 operates a commercial establishment is subject to a civil 19 penalty of not more than one thousand dollars per violation. 20 In the case of a continuing violation, each day of the 21 continuing violation is a separate violation. 22 b. A person qualifying under this paragraph shall be subject 23 to a civil penalty of not more than one hundred dollars per day 24 for failing to apply for or obtain a current authorization. In 25 order to qualify under this paragraph “b” , the person must be 26 any of the following: 27 (1) A boarding kennel or commercial kennel that keeps fewer 28 than six dogs or cats during a twelve-month period. 29 (2) A commercial breeder who owns or possesses fewer than 30 six breeding male or female dogs or cats. 31 (3) A dealer who buys for resale or sells or exchanges fewer 32 than six dogs or cats as a principal or agent. 33 Sec. 23. Section 162.13, Code 2009, is amended to read as 34 follows: 35 -12- LSB 6171YC (9) 83 da/rj 12/ 17

H.F. _____ 162.13 Penalties Criminal penalties —— confiscation . 1 1. Operation of a pound, animal shelter, pet shop, boarding 2 kennel, commercial kennel, research facility, or public 3 auction, or dealing in dogs or cats, or both, either as a 4 dealer or a commercial breeder, without a currently valid 5 license or a certificate of registration is A person who 6 operates a commercial establishment without an authorization 7 issued or renewed by the department as required in section 8 162.2A is guilty of a simple misdemeanor and each day of 9 operation is a separate offense. 10 2. The failure of any pound, research facility, animal 11 shelter, pet shop, boarding kennel, commercial kennel, 12 commercial breeder, public auction, or dealer, to adequately 13 house, feed, or water dogs, cats, or vertebrate animals in 14 the person’s or facility’s possession or custody a person 15 who owns or operates a commercial establishment to meet the 16 standard of care required in section 162.10A, subsection 1, is 17 a simple misdemeanor. The animals are subject to seizure and 18 impoundment and may be sold or destroyed as provided by rules 19 which shall be adopted by the department pursuant to chapter 20 17A. The rules shall provide for the destruction of an animal 21 by a humane method, including by euthanasia. 22 3. The failure of a person who owns or operates a commercial 23 establishment to meet the requirements of this section is 24 also cause for the suspension or revocation or suspension 25 of license or registration after public hearing of the 26 person’s authorization as provided in section 162.10D . The 27 commission of an act declared to be an unlawful practice under 28 section 714.16 or prohibited under chapter 717 or 717B , by 29 a person licensed or registered under this chapter is cause 30 for revocation or suspension of the license or registration 31 certificate. 32 4. Dogs, cats, and other vertebrates vertebrate 33 animals upon which euthanasia is permitted by law may be 34 destroyed by a person subject to this chapter or chapter 169, 35 -13- LSB 6171YC (9) 83 da/rj 13/ 17

H.F. _____ by a humane method, including euthanasia, as provided by rules 1 which shall be adopted by the department pursuant to chapter 2 17A. 3 5. It is unlawful for a dealer to knowingly ship a diseased 4 animal. A dealer violating this paragraph is subject to a 5 fine not exceeding one hundred dollars. Each diseased animal 6 shipped in violation of this paragraph is a separate offense. 7 Sec. 24. Section 162.16, Code 2009, is amended by striking 8 the section and inserting in lieu thereof the following: 9 162.16 Rules. 10 The department shall adopt rules and promulgate forms 11 necessary to administer and enforce the provisions of this 12 chapter. 13 Sec. 25. REPEAL. Section 167.18, Code Supplement 2009, is 14 repealed. 15 Sec. 26. CURRENT DEPARTMENTAL RULES. This Act does not 16 diminish the authority of the department of agriculture and 17 land stewardship to regulate different types of commercial 18 establishments as provided in 21 IAC ch. 67. 19 Sec. 27. ISSUANCE OF PERMITS. This Act does not require 20 a commercial establishment that has been issued or renewed a 21 certificate of registration to be issued a permit earlier than 22 required in section 162.2A for the renewal of a permit. The 23 person shall hold the certificate of registration in the same 24 manner as a permit pursuant to this Act. 25 Sec. 28. EFFECTIVE UPON ENACTMENT. This Act, being deemed 26 of immediate importance, takes effect upon enactment. 27 EXPLANATION 28 GENERAL. This bill provides for the regulation of 29 commercial establishments that possess or control animals, 30 other than animals used for an agricultural purpose, by the 31 department of agriculture and land stewardship. Under current 32 law an animal shelter, pound, or research facility must obtain 33 a certificate of registration; a pet shop, boarding kennel, or 34 commercial kennel must obtain a state license; and a commercial 35 -14- LSB 6171YC (9) 83 da/rj 14/ 17

H.F. _____ breeder, dealer, and public auction must obtain a certificate 1 of registration because they are federally licensed. The bill 2 provides that a commercial breeder, dealer, and public auction 3 must obtain a permit instead of a certificate of registration. 4 All of these documents are referred to as authorizations. 5 AUTHORIZATION. The bill provides that a commercial 6 establishment must pay a fee for being issued or renewed an 7 authorization. The bill does not change the fees required to 8 be paid by registrants, but establishes an increased fee for 9 boarding kennels and commercial kennels. It also requires 10 the department to adopt rules to establish and adjust fees 11 imposed on federal licenses issued a permit based on a schedule 12 of fees required to be paid by dealers to the United States 13 department of agriculture. The department is required to 14 adjust the fees for each new fiscal year based on the costs 15 of administering and enforcing the regulations, according 16 to full-time equivalent positions authorized by the general 17 assembly. It also provides that due to the fluctuation in fees 18 the department may temporarily operate in a deficit. 19 PURCHASE OF DOGS AND CATS BY UNAUTHORIZED COMMERCIAL 20 ESTABLISHMENTS. The bill prohibits a pet shop, dealer, 21 commercial breeder, or public auction from purchasing a dog or 22 cat from an unauthorized commercial establishment. 23 STANDARD OF CARE. The bill requires that commercial 24 establishments must operate pursuant to an authorization and 25 requires registrants and state licensees to maintain records. 26 The bill provides for a general standard of care for all 27 commercial establishments. The commercial establishment must 28 ensure that an animal in its possession or under its control is 29 not lacking adequate feed, adequate water, housing facilities, 30 sanitary control, grooming practices affecting the health of 31 the animal, or veterinary care. A registrant or state licensee 32 must comply with departmental rules. A permittee may meet the 33 standard of care without complying with the departmental rules. 34 It may also fail to meet the standard of care even though it 35 -15- LSB 6171YC (9) 83 da/rj 15/ 17

H.F. _____ passes a federal inspection. 1 ENTERING ONTO THE BUSINESS PREMISES. The bill provides 2 that the department may inspect a registrant or state licensee 3 by entering onto its business premises and may inspect its 4 records. The department may monitor a permittee by entering 5 onto its business premises for the limited purpose of 6 determining whether the permittee is providing for the required 7 standard of care. In order to enter onto the premises, 8 the department must have reasonable cause supported by an 9 oral or written complaint or a report filed by the United 10 States department of agriculture. The bill provides for the 11 confidentiality of complaints filed by individuals unless they 12 are relevant to an administrative or court proceeding. 13 DISCIPLINARY ACTIONS. The bill provides that the department 14 may take disciplinary action against a commercial establishment 15 by suspending or revoking the commercial establishment’s 16 authorization. The department may require that an owner, 17 operator, or employee of a commercial establishment complete 18 a continuing education program which is supervised by the 19 department but may be administered by a person selected by the 20 department. 21 EXCEPTIONS. The bill eliminates provisions that exempted 22 federal licensees from regulations. It creates a new exception 23 for a person who breeds, transports, or keeps a greyhound dog 24 for pari-mutuel wagering at a racetrack. 25 PENALTIES. The bill authorizes the department to establish, 26 impose, and assess civil penalties for violations of the bill’s 27 provisions. Generally, a civil penalty is up to $1,000 per 28 each day of a violation with an exception for small commercial 29 establishments which have not obtained an authorization. The 30 civil penalty is $100 per day for a boarding kennel, commercial 31 kennel, commercial breeder, or dealer whose business involves 32 fewer than six dogs or cats. Generally a person who violates 33 the bill’s provisions is guilty of a simple misdemeanor. The 34 bill provides that a person falsifying an application is guilty 35 -16- LSB 6171YC (9) 83 da/rj 16/ 17

H.F. _____ of the same offense. A simple misdemeanor is punishable by 1 confinement for no more than 30 days or a fine of at least $65 2 but not more than $625 or by both. 3 RULES. The bill authorizes the department to adopt rules 4 necessary to administer and enforce the bill’s provisions. It 5 eliminates a provision that provides the department cannot 6 adopt rules more stringent than federal regulations. 7 CURRENT DEPARTMENTAL RULES. The bill provides that it 8 does not diminish the authority of the department to regulate 9 different types of commercial establishments as provided in its 10 rules. 11 EFFECTIVE DATE. The bill takes effect upon enactment. 12 -17- LSB 6171YC (9) 83 da/rj 17/ 17