S.F. 2361 Section 1. Section 162.1, subsection 1, paragraph c, Code 1 2014, is amended to read as follows: 2 c. Provide that all vertebrate animals consigned to pet 3 shops are provided humane care and treatment by regulating the 4 transportation, sale, purchase, housing, care, handling, and 5 treatment of such animals by pet shops. 6 Sec. 2. Section 162.2, subsections 5, 6, 14, 15, 16, 17, 7 18, 23, 25, 26, and 27, Code 2014, are amended by striking the 8 subsections. 9 Sec. 3. Section 162.2, subsections 3 and 10, Code 2014, are 10 amended to read as follows: 11 3. “Animal shelter” means a facility which is used to 12 receive, rescue, house or contain dogs or cats, or both , and 13 transfer animals and which is owned, operated, or maintained by 14 an incorporated humane society, animal welfare society, society 15 for the prevention of cruelty to animals, or other nonprofit 16 organization devoted to the welfare, protection, and humane 17 treatment of such animals. 18 10. a. “Commercial kennel” means a kennel which performs 19 grooming, boarding, or training services for dogs or cats in 20 return for a consideration. 21 b. “Commercial kennel” does not include a kennel in which 22 a dog or cat remains in the custody of the owner of the dog or 23 cat. 24 Sec. 4. Section 162.2, Code 2014, is amended by adding the 25 following new subsections: 26 NEW SUBSECTION . 2A. “Animal” means vertebrate animal other 27 than members of the equine, bovine, ovine, and porcine species, 28 and ostriches, rheas, emus, and poultry. 29 NEW SUBSECTION . 16A. “License” means an authorization to 30 operate a commercial establishment as provided in this chapter 31 regardless of whether the authorization is also referred to as 32 a permit or certificate of registration. 33 NEW SUBSECTION . 16B. “Licensee” means an animal shelter, 34 boarding kennel, commercial breeder, commercial kennel, dealer, 35 -1- LSB 5462SZ (4) 85 da/rj 1/ 26

S.F. 2361 pet shop, pound, or public auction who must operate pursuant 1 to a license issued and renewed by the department pursuant to 2 section 162.2A. 3 NEW SUBSECTION . 16C. “Local authority” means the same as 4 defined in section 717B.1. 5 Sec. 5. Section 162.2, subsection 19, Code 2014, is amended 6 to read as follows: 7 19. “Pet shop” means an establishment where a dog, cat, 8 rabbit, rodent, nonhuman primate, fish other than live bait, 9 bird, or other vertebrate animal is bought, sold, exchanged, 10 or offered for sale. However, a pet shop does not include an 11 establishment if one of the following applies: 12 a. The establishment receives less than five hundred dollars 13 from the sale or exchange of vertebrate animals during a 14 twelve-month period. 15 b. The establishment sells or exchanges less than six 16 animals during a twelve-month period. 17 Sec. 6. Section 162.2A, subsections 1, 2, 4, and 5, Code 18 2014, are amended to read as follows: 19 1. The department shall provide for the operation of 20 issuance or renewal of a license to operate a commercial 21 establishment by issuing or renewing an authorization, 22 including any of the following: . 23 a. A certificate of registration for a pound, animal 24 shelter, or research facility. 25 b. A state license for a boarding kennel, commercial kennel, 26 or pet shop. 27 c. A state license or permit for a commercial breeder, 28 dealer, or public auction. A federal licensee must apply for 29 and be issued either a permit or a state license in lieu of a 30 permit. 31 2. a. A person must be issued a separate license for 32 each class of commercial establishment, including for one or 33 more animal shelters, boarding kennels, commercial breeders, 34 commercial kennels, dealers, pet shops, pounds, public 35 -2- LSB 5462SZ (4) 85 da/rj 2/ 26

S.F. 2361 auctions, or research facilities. 1 b. A person must be issued a separate state license , 2 certificate of registration, or permit for each all commercial 3 establishment establishments of the same class owned or 4 operated by the person. 5 4. The authorization license expires on an annual basis 6 as provided by the department, and must be renewed by the 7 commercial establishment on an annual basis on or before the 8 authorization’s license’s expiration date. 9 5. a. A commercial establishment applying for the issuance 10 or renewal of a permit shall provide the department with proof 11 that the person is a federal licensee. 12 b. The department shall not require that it must enter onto 13 the premises of a commercial establishment in order to issue a 14 permit. The department shall not require that it must enter 15 onto the premises of a commercial establishment in order to 16 renew a permit, unless it has reasonable cause to monitor the 17 commercial establishment as provided in section 162.10C . The 18 department may deny an application for the issuance or renewal 19 of a license, if the department determines that the applicant 20 is in violation of this chapter or has not demonstrated that 21 the applicant will comply with the provisions of this chapter. 22 Sec. 7. Section 162.2A, subsection 3, unnumbered paragraph 23 1, Code 2014, is amended to read as follows: 24 A person must apply for the issuance or renewal of an 25 authorization a license on forms and according to procedures 26 required by rules adopted by the department. The application 27 shall contain information required by the department, including 28 but not limited to all of the following: 29 Sec. 8. Section 162.2A, subsection 3, paragraph c, Code 30 2014, is amended to read as follows: 31 c. The name, address, and type of establishment covered by 32 the authorization license . 33 Sec. 9. Section 162.2B, Code 2014, is amended by striking 34 the section and inserting in lieu thereof the following: 35 -3- LSB 5462SZ (4) 85 da/rj 3/ 26

S.F. 2361 162.2B Fees. 1 1. The department shall establish, assess, and collect 2 fees for issuing or renewing a license as provided in section 3 162.2A. The fee assessed under this section shall include a 4 base amount plus any applicable scheduled amount. 5 2. a. For an animal shelter, the base amount equals 6 seventy-five dollars. 7 b. An animal shelter shall not be assessed a scheduled 8 amount. 9 c. A single base amount shall be assessed for all locations 10 owned or operated by the animal shelter. 11 3. a. For a pound, the base amount equals seventy-five 12 dollars. 13 b. A pound shall not be assessed a scheduled amount. 14 c. A single base amount shall be assessed for all locations 15 owned or operated by the pound. 16 4. a. For a research facility, the base amount equals 17 seventy-five dollars. 18 b. A research facility shall not be assessed a scheduled 19 amount. 20 c. A single base amount shall be assessed for all locations 21 owned or operated by the research facility. 22 5. a. For a commercial breeder whose license is a special 23 type of license reserved for small breeders, competitive show 24 breeders, or specialized breeders, the base amount equals one 25 hundred dollars. 26 b. A commercial breeder whose license is reserved as a 27 special type of license as described in paragraph “a” shall not 28 be assessed a scheduled amount. 29 c. A single base amount shall be assessed for all locations 30 owned or operated by the commercial breeder whose license is 31 reserved as a special type of license as described in paragraph 32 “a” . 33 6. a. For a commercial breeder whose license is not 34 reserved as a special type of license as provided in subsection 35 -4- LSB 5462SZ (4) 85 da/rj 4/ 26

S.F. 2361 5, the base amount equals one hundred seventy-five dollars and 1 the scheduled amount is computed by calculating the number of 2 dogs and cats kept by the commercial breeder as follows: 3 (1) For not more than fifty dogs and cats, seventy-five 4 dollars. 5 (2) For more than fifty dogs and cats but not more than 6 seventy-five dogs and cats, two hundred fifty dollars. 7 (3) For more than seventy-five dogs and cats but not more 8 than one hundred dogs and cats, eight hundred dollars. 9 (4) For more than one hundred dogs and cats but not more 10 than two hundred fifty dogs and cats, two thousand five hundred 11 dollars. 12 (5) For more than two hundred fifty dogs and cats but not 13 more than four hundred dogs and cats, five thousand dollars. 14 (6) For more than four hundred dogs and cats, seven thousand 15 five hundred dollars. 16 b. A dog or cat is included in the calculation under 17 paragraph “a” if the dog or cat is recorded as an adult on 18 hand for breeding during the most recent inspection of the 19 commercial breeder by the department of agriculture and land 20 stewardship or the United States department of agriculture. 21 c. Notwithstanding paragraph “b” , a greyhound dog owned, 22 kept, bred, or transported by a commercial breeder for 23 pari-mutuel wagering at a racetrack as provided in chapter 99D 24 is not included in the calculation. Rather the commercial 25 breeder shall pay a different fee for the issuance or renewal 26 of a license as provided in rules adopted by the department. 27 d. A base amount shall be assessed for each location owned 28 or operated by the commercial breeder. The scheduled amount 29 shall be assessed for the total number of dogs or cats kept at 30 all locations owned or operated by the commercial breeder. 31 7. a. For a pet shop, the base amount equals one hundred 32 seventy-five dollars and the scheduled amount is computed by 33 calculating the number of dogs and cats kept by the pet shop as 34 follows: 35 -5- LSB 5462SZ (4) 85 da/rj 5/ 26

S.F. 2361 (1) For at least one dog or cat but not more than twenty 1 dogs and cats, one hundred dollars. 2 (2) For more than twenty dogs and cats but not more than 3 forty dogs and cats, two hundred fifty dollars. 4 (3) For more than forty dogs and cats, five hundred dollars. 5 b. A dog or cat is included in the calculation under 6 paragraph “a” if the dog or cat is recorded as on hand for sale 7 to the general public during the most recent inspection of the 8 pet shop by the department. 9 c. A base amount shall be assessed for each location owned 10 or operated by the pet shop. The scheduled amount shall be 11 assessed for the total number of dogs or cats kept at all 12 locations owned or operated by the pet shop. 13 8. a. For a boarding kennel, commercial kennel, or public 14 auction, the base amount equals one hundred seventy-five 15 dollars. 16 b. A boarding kennel, commercial kennel, or public auction 17 shall not be assessed a scheduled amount. 18 c. A single base amount shall be assessed for all locations 19 owned or operated by the boarding kennel, commercial kennel, 20 or public auction. 21 9. a. For a dealer, the base amount equals one hundred 22 dollars. 23 b. A dealer shall not be assessed a scheduled amount. 24 c. A single base amount shall be assessed for all locations 25 owned or operated by the dealer. 26 10. The moneys collected by the department under this 27 section shall be credited to the commercial establishment fund 28 created in section 162.2C. 29 11. The fees provided in this section shall be considered 30 repayment receipts as defined in section 8.2. The general 31 assembly shall appropriate moneys to the department each fiscal 32 year necessary for the administration and enforcement of this 33 chapter. 34 Sec. 10. Section 162.2C, subsection 3, Code 2014, is amended 35 -6- LSB 5462SZ (4) 85 da/rj 6/ 26

S.F. 2361 to read as follows: 1 3. Moneys in the fund are appropriated to the department and 2 shall be used exclusively to carry out do all of the following: 3 a. Administer and enforce the provisions of this chapter 4 as determined and directed by the department, and shall not 5 require further special authorization by the general assembly. 6 b. Fully fund the animal rescue remediation fund as provided 7 in section 717B.13. For the fiscal year beginning July 1, 8 2014, and each fiscal year thereafter, the department shall 9 transfer at least twenty thousand dollars from moneys in the 10 commercial establishment fund to the animal rescue remediation 11 fund created in section 717B.13. However, if on March 1 the 12 unobligated and unencumbered balance in the animal rescue 13 remediation fund equals more than sixty thousand dollars, the 14 department shall suspend the transfer for the subsequent fiscal 15 year. If on March 1 of a fiscal year for which the transfer 16 is suspended, the unobligated and unencumbered balance in the 17 animal rescue remediation fund is less than forty thousand 18 dollars, the department shall resume the transfer for the 19 subsequent fiscal year. 20 Sec. 11. Section 162.3, Code 2014, is amended to read as 21 follows: 22 162.3 Operation of a pound —— certificate of registration 23 license . 24 A pound shall only operate pursuant to a certificate of 25 registration license issued or renewed by the department as 26 provided in section 162.2A . A pound may sell dogs or cats 27 under its control if sales are allowed by the department. The 28 pound shall maintain records as required by the department in 29 order for the department to ensure the pound’s compliance with 30 the provisions of this chapter . 31 Sec. 12. Section 162.4, Code 2014, is amended to read as 32 follows: 33 162.4 Operation of an animal shelter —— certificate of 34 registration license . 35 -7- LSB 5462SZ (4) 85 da/rj 7/ 26

S.F. 2361 An animal shelter shall only operate pursuant to a 1 certificate of registration license issued or renewed by the 2 department as provided in section 162.2A . An animal shelter 3 may sell dogs or cats if sales are allowed by the department. 4 The animal shelter facility shall maintain records as required 5 by the department in order for the department to ensure 6 the animal shelter’s compliance with the provisions of this 7 chapter . 8 Sec. 13. Section 162.4A, Code 2014, is amended to read as 9 follows: 10 162.4A Operation of a research facility —— certificate of 11 registration license . 12 A research facility shall only operate pursuant to a 13 certificate of registration license issued by the department 14 as provided in section 162.2A . The research facility shall 15 maintain records as required by the department in order for 16 the department to ensure the research facility’s compliance 17 with the provisions of this chapter . A research facility shall 18 not purchase a dog or cat from a commercial establishment that 19 does not have a valid authorization license issued or renewed 20 under this chapter or a similar authorization license issued or 21 renewed by another state. 22 Sec. 14. Section 162.5, Code 2014, is amended to read as 23 follows: 24 162.5 Operation of a pet shop —— state license. 25 A pet shop shall only operate pursuant to a state license 26 issued or renewed by the department pursuant to section 27 162.2A . The pet shop shall maintain records as required by the 28 department in order for the department to ensure the pet shop’s 29 compliance with the provisions of this chapter . A pet shop 30 shall not purchase a dog or cat from a commercial establishment 31 that does not have a valid authorization license issued or 32 renewed under this chapter or a similar authorization license 33 issued or renewed by another state. 34 Sec. 15. Section 162.5A, Code 2014, is amended to read as 35 -8- LSB 5462SZ (4) 85 da/rj 8/ 26

S.F. 2361 follows: 1 162.5A Operation of a boarding kennel —— state license. 2 A boarding kennel shall only operate pursuant to a state 3 license issued by the department as provided in section 162.2A . 4 The boarding kennel shall maintain records as required by 5 the department in order for the department to ensure the 6 boarding kennel’s compliance with the provisions of this 7 chapter . A boarding kennel shall not purchase a dog or cat 8 from a commercial establishment that does not have a valid 9 authorization license issued or renewed under this chapter or 10 a similar authorization license issued or renewed by another 11 state. 12 Sec. 16. Section 162.6, Code 2014, is amended to read as 13 follows: 14 162.6 Operation of a commercial kennel —— state license. 15 A commercial kennel shall only operate pursuant to a state 16 license issued or renewed by the department as provided in 17 section 162.2A . A commercial kennel shall maintain records 18 as required by the department in order for the department to 19 ensure the commercial kennel’s compliance with the provisions 20 of this chapter . A commercial kennel shall not purchase a 21 dog or cat from a commercial establishment that does not have 22 a valid authorization license issued or renewed under this 23 chapter or a similar authorization license issued or renewed 24 by another state. 25 Sec. 17. Section 162.7, Code 2014, is amended to read as 26 follows: 27 162.7 Operation of a dealer —— state license or permit . 28 A dealer shall only operate pursuant to a state license , 29 or a permit, issued or renewed by the department as provided 30 in section 162.2A . A dealer who is a state licensee shall 31 maintain records as required by the department in order for the 32 department to ensure compliance with the provisions of this 33 chapter . A dealer who is a permittee may but is not required 34 to maintain records. A dealer shall not purchase a dog or cat 35 -9- LSB 5462SZ (4) 85 da/rj 9/ 26

S.F. 2361 from a commercial establishment that does not have a valid 1 authorization license issued or renewed under this chapter or 2 a similar authorization license issued or renewed by another 3 state. 4 Sec. 18. Section 162.8, Code 2014, is amended to read as 5 follows: 6 162.8 Operation of a commercial breeder —— state license or 7 permit . 8 1. A commercial breeder shall only operate pursuant to a 9 state license , or a permit, issued or renewed by the department 10 as provided in section 162.2A . A commercial breeder who is 11 a state licensee shall maintain records as required by the 12 department in order for the department to ensure the commercial 13 breeder’s compliance with the provisions of this chapter . A 14 commercial breeder who is a permittee may but is not required 15 to maintain records. A commercial breeder shall not purchase a 16 dog or cat from a commercial establishment that does not have 17 a valid authorization license issued or renewed under this 18 chapter or a similar authorization license issued or renewed 19 by another state. 20 2. a. The department shall reserve a special type of 21 commercial breeder’s license issued or renewed to a person 22 who qualifies as a small breeder, competitive show breeder, 23 or specialized breeder. In order to obtain and maintain the 24 special type of license, all dogs kept by the person during the 25 period of the license must produce no more than three litters 26 or thirty puppies, whichever number is greater. 27 b. A commercial breeder shall not be issued or renewed a 28 special type of commercial breeder’s license if any of the 29 following apply: 30 (1) The commercial breeder is issued or renewed a public 31 auction license pursuant to section 162.9A. 32 (2) The commercial breeder owns, keeps, breeds, or 33 transports a greyhound dog for pari-mutuel wagering at a 34 racetrack as provided in chapter 99D. 35 -10- LSB 5462SZ (4) 85 da/rj 10/ 26

S.F. 2361 3. a. A commercial breeder shall not own or operate an 1 animal shelter or maintain a controlling interest in an animal 2 shelter. 3 b. Paragraph “a” shall not apply to a commercial breeder 4 whose license is a special type of commercial breeder’s license 5 as provided in subsection 2. 6 4. A commercial breeder offering to sell a dog to a person 7 shall provide the person with a copy of the most recent 8 inspection report completed by the department of agriculture 9 and land stewardship or the United States department of 10 agriculture. The report shall include the recorded number of 11 adult dogs on hand. The report must be signed by the person 12 prior to finalizing the sale. One copy of the signed report 13 shall be maintained for one year by the commercial breeder as 14 part of the commercial breeder’s records and one copy of the 15 report shall be filed with the department. 16 Sec. 19. Section 162.9A, Code 2014, is amended to read as 17 follows: 18 162.9A Operation of a public auction —— state license or 19 permit . 20 1. A public auction shall only operate pursuant to a state 21 license , or a permit, issued or renewed by the department 22 as provided in section 162.2A . A public auction which is 23 a state licensee shall maintain records as required by the 24 department in order for the department to ensure the public 25 auction’s compliance with the provisions of this chapter . A 26 public auction which is a permittee may but is not required to 27 maintain records. 28 2. A public auction shall not purchase a dog or cat 29 from a commercial establishment that does not have a valid 30 authorization license issued or renewed under this chapter or 31 a similar authorization license issued or renewed by another 32 state. 33 Sec. 20. NEW SECTION . 162.10 Records. 34 1. A commercial establishment shall maintain all records 35 -11- LSB 5462SZ (4) 85 da/rj 11/ 26

S.F. 2361 required in this chapter. The department shall adopt rules 1 regarding the types of records required to be kept and the 2 format for keeping such records. 3 2. A commercial establishment shall maintain inspection 4 reports conducted by the department of agriculture and land 5 stewardship or the United States department of agriculture. 6 A commercial breeder shall maintain a signed copy of an 7 inspection report as required in section 162.8. 8 3. A commercial establishment shall maintain all records 9 necessary to assess a fee imposed for the issuance or renewal 10 of a license pursuant to section 162.2A. 11 Sec. 21. Section 162.10A, Code 2014, is amended to read as 12 follows: 13 162.10A Commercial establishments —— standard of care. 14 1. a. A commercial establishment shall provide for a 15 standard of care that ensures that an animal in its possession 16 or under its control is not lacking any of the following: 17 (1) Adequate feed, adequate water, housing facilities, 18 sanitary control, or grooming practices, if such lack causes 19 adverse health or suffering. 20 (2) Veterinary care. 21 b. A commercial establishment, other than a research 22 facility or pet shop, shall provide for the standard of care 23 for dogs and cats in its possession or under its control, and a 24 research facility or pet shop shall provide for the standard 25 of care for vertebrate animals in its possession or under its 26 control. 27 2. A commercial breeder shall provide for the general care 28 of its dogs or cats by providing all of the following: 29 a. Access to adequate quantities and quality of food 30 provided at suitable times and according to the dietary 31 requirements of the species and age of the animal in order to 32 maintain a reasonable level of nutrition. The food must be 33 served in a clean receptacle, dish, or container. 34 b. Access to a regular supply of clean, fresh, potable water 35 -12- LSB 5462SZ (4) 85 da/rj 12/ 26

S.F. 2361 provided in a sanitary manner provided at suitable times and 1 according to the dietary requirements of the species and age of 2 the animal. The water shall not be frozen. 3 c. Protection from extremes in weather conditions. 4 3. A commercial breeder shall only keep dogs or cats in a 5 primary enclosure that complies with all of the following: 6 a. Includes a solid surface area sufficient to allow an 7 animal with sufficient space to rest in a recumbent position. 8 b. On or after the effective date of this Act, shall not be 9 constructed to use wire strand flooring. 10 c. Provides proper ventilation. 11 d. (1) The size of the primary enclosure shall not be less 12 than two times the size for the primary enclosure for that 13 species as required pursuant to 9 C.F.R. §3.6. 14 (2) Subparagraph (1) takes effect January 1, 2015. 15 4. a. A commercial breeder with more than ten breeding 16 dogs on hand shall only keep dogs in a primary enclosure that 17 allows each dog to exercise twelve hours per day by accessing 18 an outdoor run. 19 b. Paragraph “a” does not apply to any of the following: 20 (1) A commercial breeder issued or renewed a special type 21 of commercial breeder’s license reserved for small breeders, 22 competitive show breeders, or specialized breeders as provided 23 in section 162.8. 24 (2) A dog less than seven months of age. 25 (3) A dog suffering from physical distress, to the extent 26 that outdoor conditions would not improve the dog’s condition. 27 (4) A period when outdoor conditions would cause the dog 28 discomfort or injury. 29 5. A commercial breeder shall provide for the health of its 30 dogs or cats as follows: 31 a. Have all breeding dogs and breeding cats under its 32 possession or control examined at least once each year by a 33 licensed veterinarian. 34 b. Provide for the prompt treatment by a licensed 35 -13- LSB 5462SZ (4) 85 da/rj 13/ 26

S.F. 2361 veterinarian of any serious illness or injury suffered by a dog 1 or cat. 2 c. Provide euthanasia when required by a licensed 3 veterinarian. 4 d. Provide its dogs with regular exercise of a type and 5 amount sufficient to comply with an exercise plan that has 6 been approved by a licensed veterinarian, and developed in 7 accordance with rules adopted by the department of agriculture. 8 The exercise plan must afford a dog a maximum opportunity for 9 outdoor exercise as weather permits. 10 2. 6. a. Except as provided in paragraph “b” or “c” , 11 a commercial establishment shall comply with rules that the 12 department adopts to implement subsection 1. A commercial 13 establishment shall be regulated under this paragraph “a” 14 unless the person is a state licensee as provided in paragraph 15 “b” or a permittee as provided in paragraph “c” . 16 b. A state licensee who is a commercial breeder owning, 17 breeding, transporting, or keeping a greyhound dog for 18 pari-mutuel wagering at a racetrack as provided in chapter 99D 19 may be required to comply with different rules adopted by the 20 department in administering and enforcing subsection 1. In 21 addition, such a commercial breeder is not required to comply 22 with subsections 2 through 5 . 23 c. A permittee is not required to comply with rules that the 24 department adopts to implement a standard of care as provided 25 in subsection 1 for state licensees and registrants. The 26 department may adopt rules regulating a standard of care for 27 a permittee, so long as the rules are not more restrictive 28 than required for a permittee under the Animal Welfare Act . 29 However, the department may adopt prescriptive rules relating 30 to the standard of care. Regardless of whether the department 31 adopts such rules, a permittee meets the standard of care 32 required in subsection 1 if it voluntarily complies with rules 33 applicable to state licensees or registrants. A finding by 34 the United States department of agriculture that a permittee 35 -14- LSB 5462SZ (4) 85 da/rj 14/ 26

S.F. 2361 complies with the Animal Welfare Act is not conclusive when 1 determining that the permittee provides a standard of care 2 required in subsection 1 . 3 7. A commercial establishment fails to provide for a 4 standard of care as provided in subsection 1 this section if 5 the commercial establishment commits abuse as described in 6 section 717B.2 , neglect as described in section 717B.3 , or 7 torture as provided in section 717B.3A . 8 Sec. 22. Section 162.10B, Code 2014, is amended to read as 9 follows: 10 162.10B Commercial establishments —— inspecting state 11 licensees and registrants inspections . 12 1. As a condition of issuing or renewing a license, the 13 premises of an applicant shall be open for inspection during 14 normal business hours. 15 2. The department shall conduct at least an annual 16 inspection of a commercial establishment. The department may 17 shall inspect the commercial establishment of a registrant or 18 state licensee by entering onto its business premises at any 19 time during normal working business hours. The department may 20 shall inspect records required to be maintained by the state 21 licensee or registrant commercial establishment as provided 22 in this chapter . If the owner or person in charge of the 23 commercial establishment refuses admittance, the department may 24 obtain an administrative search warrant issued under section 25 808.14 . The department shall report a potential violation of 26 chapter 717B to the local authority which has jurisdiction over 27 the matter. 28 3. A person who has been issued a special type of commercial 29 breeder’s license reserved for small breeders, competitive show 30 breeders, or specialized breeders as provided in section 162.8 31 is exempt from the inspection requirements of this section for 32 the period of that license as follows: 33 a. The person is partially exempt from inspection 34 requirements without further action. The department shall 35 -15- LSB 5462SZ (4) 85 da/rj 15/ 26

S.F. 2361 only inspect the person’s commercial establishment at a time 1 agreed to by the person and the department. However, this 2 paragraph does not apply if the department determines any of 3 the following applies: 4 (1) The person is obstructing an inspection. 5 (2) One or more dogs kept by the person are in immediate 6 need of care. 7 b. The person is fully exempt from inspection requirements, 8 by submitting evidence to the department that each dog kept by 9 the person complies with all of the following: 10 (1) Has been examined by a licensed veterinarian within the 11 twelve months prior to applying for the issuance or renewal of 12 the special type of commercial breeder’s license. 13 (2) Received all vaccinations as prescribed by the 14 department based on recommendations of the American veterinary 15 medical association or American animal hospital association. 16 Sec. 23. Section 162.10D, subsections 1 and 2, Code 2014, 17 are amended to read as follows: 18 1. a. The department may take disciplinary action against 19 a person by suspending or revoking the person’s authorization 20 license for violating a provision of this chapter or chapter 21 717B , or against a person who commits an unlawful practice 22 under section 714.16 . 23 b. The department may suspend or revoke the special type 24 of commercial breeder’s license reserved for small breeders, 25 competitive show breeders, or specialized breeders issued or 26 renewed under section 162.8, subsection 2, without suspending 27 or revoking the commercial breeder’s license generally issued 28 or renewed under section 162.8, subsection 1. 29 c. The department may take disciplinary action as it applies 30 to one or more locations owned or operated by a person without 31 taking the same or any disciplinary action as it applies to 32 another location owned or operated by such person. 33 2. The department may require an owner, operator, or 34 employee of a commercial establishment subject to disciplinary 35 -16- LSB 5462SZ (4) 85 da/rj 16/ 26

S.F. 2361 action under subsection 1 to complete a continuing education 1 program as a condition for retaining an authorization 2 a license . This section does not prevent a person from 3 voluntarily participating in a continuing education program. 4 However, a voluntary continuing education program completed 5 prior to the department’s disciplinary action shall not be part 6 of such disciplinary action. 7 Sec. 24. Section 162.11, Code 2014, is amended to read as 8 follows: 9 162.11 Exceptions. 10 1. This chapter does not apply to a federal licensee except 11 as provided in the following: 12 a. Section 162.1, subsection 2 , and sections 162.2 , 162.2A , 13 162.2B , 162.7 , 162.8 , 162.9A , 162.10A , 162.10C , 162.10D , 14 162.12A , and 162.13 . 15 b. Section 162.1, subsection 1 , but only to the extent 16 required to implement sections described in paragraph “a” . 17 c. Section 162.16 but only to the extent required to 18 implement sections described in paragraph “a” . 19 2. 1. This chapter does not apply to a place or 20 establishment which operates under the immediate supervision 21 of a duly licensed veterinarian as a hospital where animals 22 are harbored, hospitalized, and cared for incidental to the 23 treatment, prevention, or alleviation of disease processes 24 during the routine practice of the profession of veterinary 25 medicine. However, if animals are accepted by such a place, 26 establishment, or hospital for boarding or grooming for a 27 consideration, the place, establishment, or hospital is subject 28 to the licensing or registration requirements applicable to a 29 boarding kennel or commercial kennel under this chapter and the 30 rules adopted by the secretary. 31 3. 2. This chapter does not apply to a noncommercial kennel 32 at, in, or adjoining a private residence where dogs or cats are 33 kept , for the hobby of the householder, if the dogs or cats 34 are used for hunting, for practice training, for exhibition 35 -17- LSB 5462SZ (4) 85 da/rj 17/ 26

S.F. 2361 at shows or field or obedience trials, or for guarding or 1 protecting the householder’s property. However, the dogs 2 or cats must not be kept for breeding if a person receives 3 consideration for providing the breeding. 4 Sec. 25. Section 162.12, Code 2014, is amended by striking 5 the section and inserting in lieu thereof the following: 6 162.12 Departmental action. 7 1. The department may take administrative action against a 8 commercial establishment if the department finds the housing 9 facilities or primary enclosures are inadequate under the 10 provisions of this chapter or if the feeding, watering, 11 cleaning, and housing practices are not in compliance with this 12 chapter or with the rules adopted pursuant to this chapter. 13 2. The premises of each licensee shall be subject to 14 inspection as provided in section 162.10B. 15 3. A person may contest an agency action taken by the 16 department under this chapter, including rules adopted by the 17 department under this chapter, pursuant to chapter 17A. 18 Sec. 26. Section 162.12A, subsection 1, paragraph a, Code 19 2014, is amended to read as follows: 20 a. A commercial establishment that operates pursuant to an 21 authorization a license issued or renewed under this chapter 22 is subject to a civil penalty of not more than five hundred 23 dollars, regardless of the number of animals possessed or 24 controlled by the commercial establishment, for violating this 25 chapter . Except as provided in paragraph “b” , each day that a 26 violation continues shall be deemed a separate offense. 27 Sec. 27. Section 162.12A, subsection 2, Code 2014, is 28 amended to read as follows: 29 2. A commercial establishment that does not operate 30 pursuant to an authorization a license issued or renewed under 31 this chapter is subject to a civil penalty of not more than one 32 thousand dollars, regardless of the number of animals possessed 33 or controlled by the commercial establishment, for violating 34 this chapter . Each day that a violation continues shall be 35 -18- LSB 5462SZ (4) 85 da/rj 18/ 26

S.F. 2361 deemed a separate offense. 1 Sec. 28. Section 162.13, Code 2014, is amended to read as 2 follows: 3 162.13 Criminal penalties —— confiscation. 4 1. A person who operates a commercial establishment without 5 an authorization a license issued or renewed by the department 6 as required in section 162.2A is guilty of a simple misdemeanor 7 and each day of operation is a separate offense. 8 2. The failure of a person who owns or operates a commercial 9 establishment to meet the standard of care required in section 10 162.10A, subsection 1 , is a simple misdemeanor. The animals 11 are subject to seizure and impoundment and may be sold or 12 destroyed as provided by rules which shall be adopted by the 13 department pursuant to chapter 17A or by a local authority 14 pursuant to chapter 717B . The department’s rules shall provide 15 for the destruction of an animal by a humane method, including 16 by euthanasia as provided by rules which shall be adopted by 17 the department pursuant to chapter 17A . 18 3. The failure of a person who owns or operates a commercial 19 establishment to meet the requirements of this section is 20 also cause for the suspension or revocation of the person’s 21 authorization license as provided in section 162.10D . 22 4. Dogs, cats, and other vertebrate animals upon which 23 euthanasia is permitted by law may be destroyed by a person 24 subject to this chapter or chapter 169 , by a humane method, 25 including euthanasia, as provided by rules which shall be 26 adopted by the department pursuant to chapter 17A . 27 5. It is unlawful for a A dealer to shall not knowingly 28 ship a diseased animal. A dealer violating this subsection 29 is subject to a fine not exceeding one hundred dollars. Each 30 diseased animal shipped in violation of this subsection is a 31 separate offense. 32 Sec. 29. NEW SECTION . 162.13A Criminal actions. 33 The attorney general or a county attorney may bring criminal 34 action in order to enforce the provisions of this chapter. 35 -19- LSB 5462SZ (4) 85 da/rj 19/ 26

S.F. 2361 Sec. 30. NEW SECTION . 162.13B Penalties —— injunctive 1 relief. 2 The courts of this state may prevent and restrain violations 3 of this chapter through the issuance of an injunction. The 4 attorney general or a county attorney shall institute suits on 5 behalf of the state to prevent and restrain violations of this 6 chapter. 7 Sec. 31. Section 162.20, subsection 4, paragraph c, Code 8 2014, is amended to read as follows: 9 c. A pound or animal shelter which knowingly fails to 10 provide for the sterilization of a dog or cat is subject to a 11 civil penalty of up to two hundred dollars. The department 12 may enforce and collect civil penalties according to rules 13 which shall be adopted by the department. Each violation shall 14 constitute a separate offense. Moneys collected from civil 15 penalties shall be deposited into the general fund of the state 16 and are appropriated on July 1 of each year in equal amounts 17 to each track licensed to race dogs to support the racing dog 18 adoption program as provided in section 99D.27 . Upon the third 19 offense, the department may suspend or revoke a certificate 20 of registration license issued to the pound or animal shelter 21 pursuant to this chapter . The department may bring an action 22 in district court to enjoin a pound or animal shelter from 23 transferring animals in violation of this section . In bringing 24 the action, the department shall not be required to allege 25 facts necessary to show, or tending to show, a lack of adequate 26 remedy at law, that irreparable damage or loss will result 27 if the action is brought at law, or that unique or special 28 circumstances exist. 29 Sec. 32. Section 717B.1, Code 2014, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 3A. “Commercial establishment” means the 32 same as defined in section 162.2. 33 Sec. 33. Section 717B.4, subsection 3, paragraph a, Code 34 2014, is amended to read as follows: 35 -20- LSB 5462SZ (4) 85 da/rj 20/ 26

S.F. 2361 a. The court may order the responsible party to pay an 1 amount which shall not be more than the dispositional expenses 2 incurred by the local authority. The court may also award 3 the local authority court costs, reasonable attorney fees and 4 expenses related to the investigation and prosecution of the 5 case, which shall be taxed as part of the costs of the action. 6 The amount shall be paid to the animal rescue remediation fund 7 created in section 717B.13 to the extent that moneys from the 8 fund were expended to pay for dispositional expenses. 9 Sec. 34. Section 717B.5, Code 2014, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 3A. The local authority may apply to the 12 department for reimbursement of expenses incurred by the local 13 authority in providing for the maintenance of the animal. 14 Sec. 35. NEW SECTION . 717B.13 Animal rescue remediation 15 fund. 16 1. An animal rescue remediation fund is created as a 17 separate fund in the state treasury under the control of the 18 department of agriculture and land stewardship. The general 19 fund of the state is not liable for claims presented against 20 the fund. 21 2. The fund consists of moneys appropriated to the fund, 22 moneys transferred from the commercial establishment fund as 23 provided in section 162.2C, sums collected on behalf of the 24 fund through legal action or settlement, or moneys contributed 25 to the fund from other sources. 26 3. The moneys in the fund are appropriated to the department 27 to reimburse a local authority for expenses incurred for the 28 rescuing of an animal from a commercial establishment as 29 provided in section 717B.5, for the maintenance of an animal 30 as provided in section 717B.5, and for the disposition of an 31 animal as provided in section 717B.4. 32 4. The department shall utilize moneys from the fund only to 33 the extent that the department determines that expenses cannot 34 be timely paid by utilizing the available provisions of section 35 -21- LSB 5462SZ (4) 85 da/rj 21/ 26

S.F. 2361 717B.4. 1 5. The department shall provide payment to a local authority 2 upon a claim submitted by the local authority to the department 3 according to procedures required by the department. Upon 4 a determination that the claim is eligible for payment, 5 the department shall reimburse the local authority for that 6 amount. However, if the department determines that only 7 a portion of the claim is eligible, the department shall 8 only pay the eligible portion. If the department determines 9 that insufficient moneys are available to make payment of 10 all claims, the department may defer paying all or part of 11 specified claims. The department shall hold deferred claims 12 for payment when the department determines that the fund again 13 contains sufficient moneys. 14 6. Moneys in the fund shall not be subject to appropriation 15 or expenditure for any other purpose than provided in this 16 section and section 162.2C. 17 7. Notwithstanding section 12C.7, interest earned on 18 amounts deposited in the fund shall be credited to the fund. 19 Notwithstanding section 8.33, any unexpended or unencumbered 20 moneys remaining in the fund at the end of the fiscal year 21 shall not revert to the general fund of the state, but the 22 moneys shall remain available for expenditure by the authority 23 in succeeding fiscal years. 24 Sec. 36. CERTIFICATE OF REGISTRATION. A certificate of 25 registration issued by the department under section 162.2A 26 prior to the effective date of this Act shall remain valid 27 until it expires according to its terms when issued. 28 Sec. 37. REPEAL. Section 162.10C, Code 2014, is repealed. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 CURRENT LAW —— GENERAL. Code chapter 162 provides for the 33 regulation of commercial establishments that possess or control 34 animals, other than animals used for an agricultural purpose 35 -22- LSB 5462SZ (4) 85 da/rj 22/ 26

S.F. 2361 (Code section 162.1), by the department of agriculture and land 1 stewardship (DALS). This includes animal shelters, pounds, or 2 research facilities which are required to obtain a certificate 3 of registration; a boarding kennel, commercial kennel, or pet 4 shop required to obtain a state license; and a commercial 5 breeder, dealer, or public auction required to obtain either 6 a state license or a permit if licensed by the United States 7 department of agriculture (USDA). A permit, state license, or 8 certificate of registration is referred to as an authorization 9 (Code section 162.2A). 10 CURRENT LAW —— FINANCES. A commercial establishment must 11 pay a fee for obtaining or renewing an authorization. The fee 12 for the issuance or renewal of a certificate of registration is 13 $75 and the fee for the issuance or renewal of a state license 14 or permit is $175, except for a commercial breeder who keeps 15 greyhounds for racing who is subject to a separate fee (Code 16 section 162.2B). The fees are deposited into a commercial 17 establishment fund dedicated for use by DALS in administering 18 the Code chapter (Code section 162.2C). 19 CURRENT LAW —— INSPECTIONS AND RECORDS. Generally, 20 different requirements apply to permittees, including 21 inspection requirements. DALS may inspect the commercial 22 establishment of a registrant or state licensee by entering 23 onto its business premises at any time during normal working 24 hours (Code section 162.10B). Alternatively, the department 25 monitors a permittee to determine whether the permittee is 26 complying with required standard of care requirements (Code 27 section 162.10C). A registrant or state licensee must maintain 28 records. 29 CURRENT LAW —— STANDARD OF CARE. A commercial establishment 30 must operate by providing a standard of care to its animals. 31 The commercial establishment must ensure that an animal in its 32 possession or under its control is not lacking adequate feed, 33 adequate water, housing facilities, sanitary control, grooming 34 practices affecting the health of the animal, and veterinary 35 -23- LSB 5462SZ (4) 85 da/rj 23/ 26

S.F. 2361 care (Code section 162.10A). A registrant or state licensee 1 must comply with DALS’ rules, with one exception. DALS may 2 adopt different rules that apply to state licensees who keep 3 greyhounds for racing. 4 CURRENT LAW —— DISCIPLINARY ACTIONS. DALS may take 5 disciplinary action against a commercial establishment 6 by suspending or revoking the commercial establishment’s 7 authorization. DALS may require that an owner, operator, or 8 employee of a commercial establishment complete a continuing 9 education program (Code section 162.10D). 10 CURRENT LAW —— CRIMINAL PENALTIES AND SEIZURE. A person who 11 operates a commercial establishment without an authorization 12 or who fails to meet a standard of care is guilty of a simple 13 misdemeanor. The department may provide for the animals’ 14 seizure and impoundment and they may be sold or destroyed 15 (Code section 162.13). A simple misdemeanor is punishable by 16 confinement for no more than 30 days or a fine of at least $65 17 but not more than $625, or by both. 18 BILL’S PROVISIONS —— LICENSING. The bill requires all 19 commercial establishments to obtain a license. It replaces 20 the term “state license” with “license”. It provides that a 21 commercial kennel does not include a kennel in which a dog or 22 cat remains in the custody of the owner or the dog or cat. The 23 bill creates a special type of commercial breeder’s license 24 reserved for a small breeder, competitive show breeder, or 25 specialized breeder. 26 BILL’S PROVISIONS —— FEES. The bill replaces the current 27 fee assessed on commercial establishments with a system 28 consisting of a base amount which depends on the type of 29 commercial establishment obtaining a license. A single 30 base amount is imposed on an animal shelter, pound, research 31 facility, commercial breeder holding a special type of license, 32 boarding kennel, commercial kennel, public auction, and dealer, 33 regardless of locations owned or operated by the commercial 34 establishment. A base amount is imposed on each location owned 35 -24- LSB 5462SZ (4) 85 da/rj 24/ 26

S.F. 2361 or operated by any other commercial breeder or a pet shop. A 1 scheduled amount applies to a commercial breeder, other than a 2 commercial breeder who holds a special type of license reserved 3 for a small breeder, competitive show breeder, or specialized 4 breeder. A separate scheduled amount applies to a pet shop. 5 The scheduled amount is computed according to a formula which 6 increases the amount due based on the number of dogs or cats 7 kept on hand by the commercial establishment. In the case of 8 a commercial breeder, the fee is based on the total number of 9 dogs or cats used for breeding. In the case of a pet shop, the 10 fee is based on the number of dogs or cats kept. 11 BILL’S PROVISIONS —— FUNDS. The moneys from fees are still 12 deposited into the commercial establishment fund. However, up 13 to $20,000 a year is to be transferred to a new animal rescue 14 remediation fund also under the control of DALS. The purpose 15 of this fund is to reimburse a city or county, referred to as 16 a local authority (Code section 717B.1), when rescuing and 17 maintaining a threatened animal (Code section 717B.5) from a 18 commercial establishment or disposing of such animal pursuant 19 to court order (Code section 717B.4). DALS may suspend the 20 transfer or resume a transfer based on the balance in the 21 animal rescue remediation fund. 22 BILL’S PROVISIONS —— INSPECTIONS AND RECORDS. The bill 23 provides for inspections of commercial establishments. One 24 exception applies to a commercial breeder holding the special 25 type of license reserved for a small breeder, competitive show 26 breeder, or specialized breeder. The bill also provides that 27 any commercial breeder offering to sell a dog to a person must 28 provide the person with a copy of the last inspection report 29 completed by DALS or USDA. The bill requires a commercial 30 establishment to maintain all records required for the 31 administration and enforcement of the Code chapter. 32 BILL’S PROVISIONS —— STANDARD OF CARE FOR ANIMALS KEPT BY 33 COMMERCIAL BREEDERS. The bill provides a general standard of 34 care for a commercial breeder, including access to food and a 35 -25- LSB 5462SZ (4) 85 da/rj 25/ 26

S.F. 2361 regular supply of clean water, and protection from extremes in 1 weather conditions. It regulates the health of a dog or cat 2 kept by a commercial breeder, including by requiring minimum 3 cage size and construction specifications. The commercial 4 breeder with more than 10 breeding dogs at hand must also 5 provide a dog with access to an outdoor run. An exception 6 applies to a commercial breeder issued a special type of 7 license, dog of a certain age or suffering from physical 8 distress, or during severe weather conditions. The bill also 9 requires certain health requirements, including veterinary 10 care. An exception applies to a commercial breeder keeping 11 greyhounds used for pari-mutuel racing. 12 BILL’S PROVISIONS —— DISCIPLINARY ACTION. The bill provides 13 that any continuing education program voluntarily undertaken 14 by a person operating a commercial establishment prior to a 15 disciplinary action is not considered part of such action. 16 CRIMINAL AND CIVIL ACTIONS. The bill provides that the 17 attorney general or a county attorney may bring a criminal 18 action in order to enforce the provisions of the Code 19 chapter. It also provides that courts may prevent and 20 restrain violations of the Code chapter through the issuance of 21 injunctions. The attorney general or a county attorney shall 22 institute suits on behalf of the state to prevent and restrain 23 such violations. 24 -26- LSB 5462SZ (4) 85 da/rj 26/ 26