SF 2361 (LSB 5462SZ (4) 85)

SENATE FILE 2361

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SF 2254)
(SUCCESSOR TO SF 2166)

A BILL FOR

An Act providing for the regulation of 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:

    Section 1.  Section 162.1, subsection 1, paragraph c, Code 2014, is amended to read as follows:
   c.  Provide that all vertebrate animals consigned to pet shops are provided humane care and treatment by regulating the transportation, sale, purchase, housing, care, handling, and treatment of such animals by pet shops.
    Sec. 2.  Section 162.2, subsections 5, 6, 14, 15, 16, 17, 18, 23, 25, 26, and 27, Code 2014, are amended by striking the subsections.
    Sec. 3.  Section 162.2, subsections 3 and 10, Code 2014, are amended to read as follows:
   3.  “Animal shelter” means a facility which is used to receive, rescue, house or contain dogs or cats, or both, and transfer 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.
   10.  a.  “Commercial kennel” means a kennel which performs grooming, boarding, or training services for dogs or cats in return for a consideration.
   b.  “Commercial kennel” does not include a kennel in which a dog or cat remains in the custody of the owner of the dog or cat.
    Sec. 4.  Section 162.2, Code 2014, is amended by adding the following new subsections:
   NEW SUBSECTION.  2A.  “Animal” means vertebrate animal other than members of the equine, bovine, ovine, and porcine species, and ostriches, rheas, emus, and poultry.
   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 an animal shelter, boarding kennel, commercial breeder, commercial kennel, dealer, pet shop, pound, or public auction who must operate 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.
    Sec. 5.  Section 162.2, subsection 19, Code 2014, is amended to read as follows:
   19.  “Pet shop” means an establishment where a dog, cat, rabbit, rodent, nonhuman primate, fish other than live bait, bird, or other vertebrate animal is bought, sold, exchanged, or offered for sale. However, a pet shop does not include an establishment if one of the following applies:
   a.  The establishment receives less than five hundred dollars from the sale or exchange of vertebrate animals during a twelve-month period.
   b.  The establishment sells or exchanges less than six animals during a twelve-month period.
    Sec. 6.  Section 162.2A, subsections 1, 2, 4, and 5, Code 2014, are amended to read as follows:
   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.  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 be issued a separate license for each class of commercial establishment, including for one or more animal shelters, boarding kennels, commercial breeders, commercial kennels, dealers, pet shops, pounds, public auctions, or research facilities.
   b.  A person must be issued a separate state license, certificate of registration, or permit for each all commercial establishment establishments of the same class owned or operated by the person.
   4.  The authorization 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. 7.  Section 162.2A, subsection 3, unnumbered paragraph 1, Code 2014, is amended to read as follows:

   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:
    Sec. 8.  Section 162.2A, subsection 3, paragraph c, Code 2014, is amended to read as follows:
   c.  The name, address, and type of establishment covered by the authorization license.
    Sec. 9.  Section 162.2B, Code 2014, 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 fee assessed under this section shall include a base amount plus any applicable scheduled amount.
   2.  a.  For an animal shelter, the base amount equals seventy-five dollars.
   b.  An animal shelter shall not be assessed a scheduled amount.
   c.  A single base amount shall be assessed for all locations owned or operated by the animal shelter.
   3.  a.  For a pound, the base amount equals seventy-five dollars.
   b.  A pound shall not be assessed a scheduled amount.
   c.  A single base amount shall be assessed for all locations owned or operated by the pound.
   4.  a.  For a research facility, the base amount equals seventy-five dollars.
   b.  A research facility shall not be assessed a scheduled amount.
   c.  A single base amount shall be assessed for all locations owned or operated by the research facility.
   5.  a.  For a commercial breeder whose license is a special type of license reserved for small breeders, competitive show breeders, or specialized breeders, the base amount equals one hundred dollars.
   b.  A commercial breeder whose license is reserved as a special type of license as described in paragraph “a” shall not be assessed a scheduled amount.
   c.  A single base amount shall be assessed for all locations owned or operated by the commercial breeder whose license is reserved as a special type of license as described in paragraph “a”.
   6.  a.  For a commercial breeder whose license is not reserved as a special type of license as provided in subsection 5, the base amount equals one hundred seventy-five dollars and the scheduled amount is computed by calculating the number of dogs and cats kept by the commercial breeder as follows:
   (1)  For not more than fifty dogs and cats, seventy-five dollars.
   (2)  For more than fifty dogs and cats but not more than seventy-five dogs and cats, two hundred fifty dollars.
   (3)  For more than seventy-five dogs and cats but not more than one hundred dogs and cats, eight hundred dollars.
   (4)  For more than one hundred dogs and cats but not more than two hundred fifty dogs and cats, two thousand five hundred dollars.
   (5)  For more than two hundred fifty dogs and cats but not more than four hundred dogs and cats, five thousand dollars.
   (6)  For more than four hundred dogs and cats, seven thousand five hundred dollars.
   b.  A dog or cat is included in the calculation under paragraph “a” if the dog or cat is 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.
   c.  Notwithstanding paragraph “b”, a greyhound dog owned, kept, bred, or transported by a commercial breeder for pari-mutuel wagering at a racetrack as provided in chapter 99D is not included in the calculation. Rather the commercial breeder shall pay a different fee for the issuance or renewal of a license as provided in rules adopted by the department.
   d.  A base amount shall be assessed for each location owned or operated by the commercial breeder. The scheduled amount shall be assessed for the total number of dogs or cats kept at all locations owned or operated by the commercial breeder.
   7.  a.  For a pet shop, the base amount equals one hundred seventy-five dollars and the scheduled amount is computed by calculating the number of dogs and cats kept by the pet shop as follows:
   (1)  For at least one dog or cat but not more than twenty dogs and cats, one hundred dollars.
   (2)  For more than twenty dogs and cats but not more than forty dogs and cats, two hundred fifty dollars.
   (3)  For more than forty dogs and cats, five hundred dollars.
   b.  A dog or cat is included in the calculation under paragraph “a” if the dog or cat is recorded as on hand for sale to the general public during the most recent inspection of the pet shop by the department.
   c.  A base amount shall be assessed for each location owned or operated by the pet shop. The scheduled amount shall be assessed for the total number of dogs or cats kept at all locations owned or operated by the pet shop.
   8.  a.  For a boarding kennel, commercial kennel, or public auction, the base amount equals one hundred seventy-five dollars.
   b.  A boarding kennel, commercial kennel, or public auction shall not be assessed a scheduled amount.
   c.  A single base amount shall be assessed for all locations owned or operated by the boarding kennel, commercial kennel, or public auction.
   9.  a.  For a dealer, the base amount equals one hundred dollars.
   b.  A dealer shall not be assessed a scheduled amount.
   c.  A single base amount shall be assessed for all locations owned or operated by the dealer.
   10.  The moneys collected by the department under this section shall be credited to the commercial establishment fund created in section 162.2C.
   11.  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 fiscal year necessary for the administration and enforcement of this chapter.
    Sec. 10.  Section 162.2C, subsection 3, Code 2014, is amended to read as follows:
   3.  Moneys in the fund are appropriated to the department and shall be used exclusively 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 the fiscal year beginning July 1, 2014, and each fiscal year thereafter, 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 fiscal year. If on March 1 of a 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 fiscal year.
    Sec. 11.  Section 162.3, Code 2014, 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 order for the department to ensure the pound’s compliance with the provisions of this chapter.
    Sec. 12.  Section 162.4, Code 2014, 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 order for the department to ensure the animal shelter’s compliance with the provisions of this chapter.
    Sec. 13.  Section 162.4A, Code 2014, is amended to read as follows:
   162.4A  Operation of a research facility —— certificate of registration license.

   A research facility shall only operate pursuant to a certificate of registration license issued by the department as provided in section 162.2A. The research facility shall maintain records as required by the department in order for the department to ensure the research facility’s compliance with the provisions of this chapter. 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. 14.  Section 162.5, Code 2014, is amended to read as follows:
   162.5  Operation of a pet shop —— state license.

   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 in order for the department to ensure the pet shop’s compliance with the provisions of this chapter. 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. 15.  Section 162.5A, Code 2014, 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 by the department as provided in section 162.2A. The boarding kennel shall maintain records as required by the department 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. 16.  Section 162.6, Code 2014, 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 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. 17.  Section 162.7, Code 2014, 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 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. 18.  Section 162.8, Code 2014, 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 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. 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.
   2.  a.  The department shall reserve a special type of commercial breeder’s license issued or renewed to a person who qualifies as a small breeder, competitive show breeder, or specialized breeder. In order to obtain and maintain the special type of license, all dogs kept by the person during the period of the license must produce no more than three litters or thirty puppies, whichever number is greater. 
   b.  A commercial breeder shall not be issued or renewed a special type of commercial breeder’s license if any of the following apply:
   (1)  The commercial breeder is issued or renewed a public auction license pursuant to section 162.9A.
   (2)  The commercial breeder owns, keeps, breeds, or transports a greyhound dog for pari-mutuel wagering at a racetrack as provided in chapter 99D.
   3.  a.  A commercial breeder shall not own or operate an animal shelter or maintain a controlling interest in an animal shelter.
   b.  Paragraph “a” shall not apply to a commercial breeder whose license is a special type of commercial breeder’s license as provided in subsection 2.
   4.  A commercial breeder offering to sell a dog to a person shall provide the person with a copy of the most recent inspection report completed by the department of agriculture and land stewardship or the United States department of agriculture. The report shall include the recorded number of adult dogs on hand. The report must be signed by the person prior to finalizing the sale. One copy of the signed report shall be maintained for one year by the commercial breeder as part of the commercial breeder’s records and one copy of the report shall be filed with the department.
    Sec. 19.  Section 162.9A, Code 2014, 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 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.
   2.  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.
    Sec. 20.  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 inspection reports conducted by the department of agriculture and land stewardship or the United States department of agriculture. A commercial breeder shall maintain a signed copy of an inspection report as required in section 162.8.
   3.  A commercial establishment shall maintain all records necessary to assess a fee imposed for the issuance or renewal of a license pursuant to section 162.2A.
    Sec. 21.  Section 162.10A, Code 2014, is amended to read as follows:
   162.10A  Commercial establishments —— standard of care.
   1.  a.  A commercial establishment shall provide for a standard of care that ensures that an animal in its possession or under its control is not lacking any of the following:
   (1)  Adequate feed, adequate water, housing facilities, sanitary control, or grooming practices, if such lack causes adverse health or suffering.
   (2)  Veterinary care.
   b.  A commercial establishment, other than a research facility or pet shop, shall provide for the standard of care for dogs and cats in its possession or under its control, and a research facility or pet shop shall provide for the standard of care for vertebrate animals in its possession or under its control.
   2.  A commercial breeder shall provide for the general care of its dogs or cats by providing all of the following:
   a.  Access to adequate quantities and quality of food provided at suitable times and according to the dietary requirements of the species and age of the animal in order to maintain a reasonable level of nutrition. The food must be served in a clean receptacle, dish, or container.
   b.  Access to a regular supply of clean, fresh, potable water provided in a sanitary manner provided at suitable times and according to the dietary requirements of the species and age of the animal. The water shall not be frozen.
   c.  Protection from extremes in weather conditions.
   3.  A commercial breeder shall only keep dogs or cats in a primary enclosure that complies with all of the following:
   a.  Includes a solid surface area sufficient to allow an animal with sufficient space to rest in a recumbent position.
   b.  On or after the effective date of this Act, shall not be constructed to use wire strand flooring.
   c.  Provides proper ventilation.
   d.  (1)  The size of the primary enclosure shall not be less than two times the size for the primary enclosure for that species as required pursuant to 9 C.F.R. §3.6.
   (2)  Subparagraph (1) takes effect January 1, 2015.
   4.  a.  A commercial breeder with more than ten breeding dogs on hand shall only keep dogs in a primary enclosure that allows each dog to exercise twelve hours per day by accessing an outdoor run.
   b.  Paragraph “a” does not apply to any of the following:
   (1)  A commercial breeder issued or renewed a special type of commercial breeder’s license reserved for small breeders, competitive show breeders, or specialized breeders as provided in section 162.8.
   (2)  A dog less than seven months of age.
   (3)  A dog suffering from physical distress, to the extent that outdoor conditions would not improve the dog’s condition.
   (4)  A period when outdoor conditions would cause the dog discomfort or injury.
   5.  A commercial breeder shall provide for the health of its dogs or cats as follows:
   a.  Have all breeding dogs and breeding cats under its possession or control examined at least once each year by a licensed veterinarian.
   b.  Provide for the prompt treatment by a licensed veterinarian of any serious illness or injury suffered by a dog or cat.
   c.  Provide euthanasia when required by a licensed veterinarian.
   d.  Provide its dogs with regular exercise of a type and amount sufficient to comply with an exercise plan that has been approved by a licensed veterinarian, and developed in accordance with rules adopted by the department of agriculture. The exercise plan must afford a dog a maximum opportunity for outdoor exercise as weather permits.
   2.  6.  a.  Except as provided in paragraph “b” or “c”, a commercial establishment shall comply with rules that the department adopts to implement subsection 1. A commercial establishment shall be regulated under this paragraph “a” unless the person is a state licensee as provided in paragraph “b” or a permittee as provided in paragraph “c”.
   b.  A state licensee who is a commercial breeder owning, breeding, transporting, or keeping a greyhound dog for pari-mutuel wagering at a racetrack as provided in chapter 99D may be required to comply with different rules adopted by the department in administering and enforcing subsection 1. In addition, such a commercial breeder is not required to comply with subsections 2 through 5.
   c.  A permittee is not required to comply with rules that the department adopts to implement a standard of care as provided in subsection 1 for state licensees and registrants. The department may adopt rules regulating a standard of care for a permittee, so long as the rules are not more restrictive than required for a permittee under the Animal Welfare Act. However, the department may adopt prescriptive rules relating to the standard of care. Regardless of whether the department adopts such rules, a permittee meets the standard of care required in subsection 1 if it voluntarily complies with rules applicable to state licensees or registrants. A finding by the United States department of agriculture that a permittee complies with the Animal Welfare Act is not conclusive when determining that the permittee provides a standard of care required in subsection 1.
   7.  A commercial establishment fails to provide for a standard of care as provided in subsection 1 this section if the commercial establishment commits abuse as described in section 717B.2, neglect as described in section 717B.3, or torture as provided in section 717B.3A.
    Sec. 22.  Section 162.10B, Code 2014, is amended to read as follows:
   162.10B  Commercial establishments —— inspecting state licensees and registrants inspections.
   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 at least an annual inspection of a commercial establishment.  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. 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 which has jurisdiction over the matter.
   3.  A person who has been issued a special type of commercial breeder’s license reserved for small breeders, competitive show breeders, or specialized breeders as provided in section 162.8 is exempt from the inspection requirements of this section for the period of that license as follows:
   a.  The person is partially exempt from inspection requirements without further action. The department shall only inspect the person’s commercial establishment at a time agreed to by the person and the department. However, this paragraph does not apply if the department determines any of the following applies:
   (1)  The person is obstructing an inspection.
   (2)  One or more dogs kept by the person are in immediate need of care.
   b.  The person is fully exempt from inspection requirements, by submitting 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 applying for the issuance or renewal of the special type of commercial breeder’s license.
   (2)  Received all vaccinations as prescribed by the department based on recommendations of the American veterinary medical association or American animal hospital association.
    Sec. 23.  Section 162.10D, subsections 1 and 2, Code 2014, are amended to read as follows:
   1.  a.  The department may take disciplinary action against a person by suspending or revoking the person’s authorization license for violating a provision of this chapter or chapter 717B, or against a person who commits an unlawful practice under section 714.16.
   b.  The department may suspend or revoke the special type of commercial breeder’s license reserved for small breeders, competitive show breeders, or specialized breeders issued or renewed under section 162.8, subsection 2, without suspending or revoking the commercial breeder’s license generally issued or renewed under section 162.8, subsection 1.
   c.  The department may take disciplinary action as it applies to one or more locations owned or operated by a person without taking the same or any disciplinary action as it applies to another location owned or operated by such person.
   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 voluntary continuing education program completed prior to the department’s disciplinary action shall not be part of such disciplinary action.
    Sec. 24.  Section 162.11, Code 2014, is amended to read as follows:
   162.11  Exceptions.
   1.  This chapter does not apply to a federal licensee except as provided in the following:
   a.  Section 162.1, subsection 2, and sections 162.2, 162.2A, 162.2B, 162.7, 162.8, 162.9A, 162.10A, 162.10C, 162.10D, 162.12A, and 162.13.
   b.  Section 162.1, subsection 1, but only to the extent required to implement sections described in paragraph “a”.
   c.  Section 162.16 but only to the extent required to implement sections described in paragraph “a”.
   2.  1.  This chapter does not apply to a place or establishment which operates under the immediate supervision of a duly licensed veterinarian as a hospital where animals are harbored, hospitalized, and cared for incidental to the treatment, prevention, or alleviation of disease processes during the routine practice of the profession of veterinary medicine. However, if animals are accepted by such a place, establishment, or hospital for boarding or grooming for a consideration, the place, establishment, or hospital is subject to the licensing or registration requirements applicable to a boarding kennel or commercial kennel under this chapter and the rules adopted by the secretary.
   3.  2.  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. 25.  Section 162.12, Code 2014, is amended by striking the section and inserting in lieu thereof the following:
   162.12  Departmental action.
   1.  The department may take administrative action against a commercial establishment if the department finds the housing facilities or primary enclosures are inadequate under the provisions of this chapter or if the feeding, watering, cleaning, and housing practices are not in compliance with this chapter or with the rules adopted pursuant to this chapter.
   2.  The premises of each licensee shall be subject to inspection as provided in section 162.10B.
   3.  A person may contest an agency action taken by the department under this chapter, including rules adopted by the department under this chapter, pursuant to chapter 17A.
    Sec. 26.  Section 162.12A, subsection 1, paragraph a, Code 2014, 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. 27.  Section 162.12A, subsection 2, Code 2014, 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. 28.  Section 162.13, Code 2014, is amended to read as follows:
   162.13  Criminal penalties —— confiscation.
   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.
   2.  The failure of a person who owns or operates a commercial establishment to meet the standard of care required in section 162.10A, subsection 1, is a simple misdemeanor. The animals are subject to seizure and impoundment and may be sold or destroyed as provided by rules which shall be adopted by the department pursuant to chapter 17A or by a local authority pursuant to chapter 717B. The department’s rules shall provide for the destruction of an animal by a humane method, including by euthanasia as provided by rules which shall be adopted by the department pursuant to chapter 17A.
   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.
   4.  Dogs, cats, and other vertebrate animals upon which euthanasia is permitted by law may be destroyed by a person subject to this chapter or chapter 169, by a humane method, including euthanasia, as provided by rules which shall be adopted by the department pursuant to chapter 17A.
   5.  It is unlawful for a A dealer to shall not knowingly ship a diseased animal. A dealer violating this subsection is subject to a fine not exceeding one hundred dollars. Each diseased animal shipped in violation of this subsection is a separate offense.
    Sec. 29.  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. 30.  NEW SECTION.  162.13B  Penalties —— injunctive relief.

   The courts of this state may prevent and restrain violations of this chapter through the issuance of an injunction. The attorney general or a county attorney shall institute suits on behalf of the state to prevent and restrain violations of this chapter.
    Sec. 31.  Section 162.20, subsection 4, paragraph c, Code 2014, 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 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. 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. 32.  Section 717B.1, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  3A.  “Commercial establishment” means the same as defined in section 162.2.
    Sec. 33.  Section 717B.4, subsection 3, paragraph a, Code 2014, 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. 34.  Section 717B.5, Code 2014, 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. 35.  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, sums collected on behalf of the fund through legal action or settlement, or 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. 36.  CERTIFICATE OF REGISTRATION.  A certificate of registration issued by the department under section 162.2A prior to the effective date of this Act shall remain valid until it expires according to its terms when issued.
    Sec. 37.  REPEAL.  Section 162.10C, Code 2014, is repealed.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   CURRENT LAW —— GENERAL. 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). This includes animal shelters, pounds, or research facilities which are required to obtain a certificate of registration; a boarding kennel, commercial kennel, or pet shop required to obtain a state license; and a commercial breeder, dealer, or public auction required to obtain either a state license or a permit if licensed by the United States department of agriculture (USDA). A permit, state license, or certificate of registration is referred to as an authorization (Code section 162.2A).
   CURRENT LAW —— FINANCES. A commercial establishment must pay a fee for obtaining or renewing an authorization. The fee for the issuance or renewal of a certificate of registration is $75 and the fee for the issuance or renewal of a state license or permit is $175, except for a commercial breeder who keeps greyhounds for racing who is subject to a separate fee (Code section 162.2B). The fees are deposited into a commercial establishment fund dedicated for use by DALS in administering the Code chapter (Code section 162.2C).
   CURRENT LAW —— INSPECTIONS AND RECORDS. Generally, different requirements apply to permittees, including inspection requirements. DALS may inspect the commercial establishment of a registrant or state licensee by entering onto its business premises at any time during normal working hours (Code section 162.10B). Alternatively, the department monitors a permittee to determine whether the permittee is complying with required standard of care requirements (Code section 162.10C). A registrant or state licensee must maintain records.
   CURRENT LAW —— STANDARD OF CARE. A commercial establishment must operate by providing a standard of care to its animals. The commercial establishment must ensure that an animal in its possession or under its control is not lacking adequate feed, adequate water, housing facilities, sanitary control, grooming practices affecting the health of the animal, and veterinary care (Code section 162.10A). A registrant or state licensee must comply with DALS’ rules, with one exception. DALS may adopt different rules that apply to state licensees who keep greyhounds for racing.
   CURRENT LAW —— DISCIPLINARY ACTIONS. DALS may take disciplinary action against a commercial establishment by suspending or revoking the commercial establishment’s authorization. DALS may require that an owner, operator, or employee of a commercial establishment complete a continuing education program (Code section 162.10D).
   CURRENT LAW —— CRIMINAL PENALTIES AND SEIZURE. A person who operates a commercial establishment without an authorization or who fails to meet a standard of care is guilty of a simple misdemeanor. The department may provide for the animals’ seizure and impoundment and they may be sold or destroyed (Code section 162.13). A simple misdemeanor is punishable by confinement for no more than 30 days or a fine of at least $65 but not more than $625, or by both.
   BILL’S PROVISIONS —— LICENSING. The bill requires all commercial establishments to obtain a license. It replaces the term “state license” with “license”. It provides that a commercial kennel does not include a kennel in which a dog or cat remains in the custody of the owner or the dog or cat. The bill creates a special type of commercial breeder’s license reserved for a small breeder, competitive show breeder, or specialized breeder.
   BILL’S PROVISIONS —— FEES. The bill replaces the current fee assessed on commercial establishments with a system consisting of a base amount which depends on the type of commercial establishment obtaining a license. A single base amount is imposed on an animal shelter, pound, research facility, commercial breeder holding a special type of license, boarding kennel, commercial kennel, public auction, and dealer, regardless of locations owned or operated by the commercial establishment. A base amount is imposed on each location owned or operated by any other commercial breeder or a pet shop. A scheduled amount applies to a commercial breeder, other than a commercial breeder who holds a special type of license reserved for a small breeder, competitive show breeder, or specialized breeder. A separate scheduled amount applies to a pet shop. The scheduled amount is computed according to a formula which increases the amount due based on the number of dogs or cats kept on hand by the commercial establishment. In the case of a commercial breeder, the fee is based on the total number of dogs or cats used for breeding. In the case of a pet shop, the fee is based on the number of dogs or cats kept.
   BILL’S PROVISIONS —— FUNDS. The moneys from fees are still deposited into the commercial establishment fund. However, up to $20,000 a year is to be transferred to a new animal rescue remediation fund also under the control of DALS. The purpose of this fund is to reimburse a city or county, referred to as a local authority (Code section 717B.1), when rescuing and maintaining a threatened animal (Code section 717B.5) from a commercial establishment or disposing of such animal pursuant to court order (Code section 717B.4). DALS may suspend the transfer or resume a transfer based on the balance in the animal rescue remediation fund.
   BILL’S PROVISIONS —— INSPECTIONS AND RECORDS. The bill provides for inspections of commercial establishments. One exception applies to a commercial breeder holding the special type of license reserved for a small breeder, competitive show breeder, or specialized breeder. The bill also provides that any commercial breeder offering to sell a dog to a person must provide the person with a copy of the last inspection report completed by DALS or USDA. The bill requires a commercial establishment to maintain all records required for the administration and enforcement of the Code chapter.
   BILL’S PROVISIONS —— STANDARD OF CARE FOR ANIMALS KEPT BY COMMERCIAL BREEDERS. The bill provides a general standard of care for a commercial breeder, including access to food and a regular supply of clean water, and protection from extremes in weather conditions. It regulates the health of a dog or cat kept by a commercial breeder, including by requiring minimum cage size and construction specifications. The commercial breeder with more than 10 breeding dogs at hand must also provide a dog with access to an outdoor run. An exception applies to a commercial breeder issued a special type of license, dog of a certain age or suffering from physical distress, or during severe weather conditions. The bill also requires certain health requirements, including veterinary care. An exception applies to a commercial breeder keeping greyhounds used for pari-mutuel racing.
   BILL’S PROVISIONS —— DISCIPLINARY ACTION. The bill provides that any continuing education program voluntarily undertaken by a person operating a commercial establishment prior to a disciplinary action is not considered part of such action.
   CRIMINAL AND CIVIL ACTIONS. 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. It also provides that courts may prevent and restrain violations of the Code chapter through the issuance of injunctions. The attorney general or a county attorney shall institute suits on behalf of the state to prevent and restrain such violations.