Senate Study Bill 1191 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON SENG) A BILL FOR An Act relating to the licensure of persons owning or operating 1 pet cemeteries and pet crematoriums, establishing standards 2 and fees, making an appropriation, and providing for 3 criminal penalties. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2187XC (4) 85 da/nh

S.F. _____ Section 1. LEGISLATIVE FINDINGS. 1 1. The general assembly finds that the relationships that 2 humans develop with other members of the animal kingdom that 3 are taken into homes and maintained as pets are unique and 4 special. These relationships can enrich lives and increase 5 happiness. Even after the death of a pet, human attachment to 6 the memory of the pet often remains very strong and many people 7 feel the need to memorialize the love felt for the animal by 8 burying the pet in a pet cemetery. Pet cemeteries and their 9 owners and operators have a special responsibility to customers 10 who have entrusted pet remains to them. These pet cemeteries 11 have a duty to act in an ethical and lawful manner to prevent 12 grieving pet owners from experiencing further emotional pain 13 or financial manipulation. Perpetrations of fraud against 14 grieving pet owners are unconscionable. 15 2. The general assembly further finds that the people 16 of this state have a vital interest in the establishment, 17 maintenance, and preservation of pet cemeteries and pet 18 crematoriums and the proper operation of the businesses and 19 individuals that own and manage the business. This chapter is 20 determined to be an exercise of the police powers of this state 21 to protect the well-being of citizens of this state, to promote 22 the public welfare, to promote the health of the public, and 23 to prevent pet cemeteries and pet crematoriums from falling 24 into disrepair and dilapidation and becoming a burden upon the 25 community. 26 Sec. 2. NEW SECTION . 523J.1 Definitions. 27 As used in this chapter, unless the context requires 28 otherwise: 29 1. “Commissioner” means the commissioner of insurance or the 30 commissioner’s designee. 31 2. “Entombment” means the placement of a pet in a grave or 32 tomb. 33 3. “Individual burial” means any of the following: 34 a. The interment of a single pet’s remains in a separate 35 -1- LSB 2187XC (4) 85 da/nh 1/ 25

S.F. _____ grave. 1 b. The interment of more than one pet in a grave with the 2 written consent of the pet owner. 3 4. “Individual cremation” means the cremation of a single 4 pet’s remains in a separate receptacle that allows the pet’s 5 cremains to remain separate from the cremains of other pets. 6 5. “Inurnment” means the placement of pet cremains in a 7 grave, urn, or tomb. 8 6. “Licensee” means a person licensed to engage in the 9 business of operating a pet cemetery or pet crematorium under 10 this chapter. 11 7. “License fee and renewal fee” means the fees required to 12 accompany an application for issuance of any license, including 13 any temporary, apprentice, or renewal license, pursuant to this 14 chapter. 15 8. “Mass burial” means the interment of pet remains 16 communally in a grave containing more than one pet. 17 9. “Mass cremation” means the cremation of pets communally 18 in a receptacle containing more than one pet. 19 10. “Pet” means any domestic animal that has been adapted or 20 tamed to live in intimate association with people, including 21 but not limited to dogs, cats, rodents, fish, birds, snakes, 22 turtles, lizards, frogs, and rabbits. 23 11. “Pet cemetery” means any land, place, structure, 24 facility, or building provided by any person for a fee, whether 25 or not for profit, to veterinarians or members of the general 26 public for use, or reservation for use, for the permanent 27 interment or inurnment above or below ground of pet remains. 28 However, this definition shall not apply to: 29 a. Rendering plants regulated pursuant to chapter 189A. 30 b. A landfill or other disposal facility at which solid 31 waste, or its residue after treatment, is intentionally placed 32 and at which solid waste shall remain indefinitely. 33 12. “Pet crematorium” means any land, place, structure, 34 facility, or building provided by any person for a fee, whether 35 -2- LSB 2187XC (4) 85 da/nh 2/ 25

S.F. _____ or not for profit, to veterinarians or members of the general 1 public for the cremation of pets. However, a pet crematorium 2 shall not provide for permanent interment or inurnment of pet 3 remains. This definition does not apply to facilities designed 4 for resource recovery or infectious medical waste incinerators, 5 both as regulated by chapter 455B. 6 13. “Pet owner” means the person who is listed as the owner 7 of the pet in veterinary records or pet cemetery or crematorium 8 records or the person’s agent or employee. If such a pet 9 owner is a minor, a parent or legal guardian of the minor or 10 the parent’s or legal guardian’s agent or employee shall be 11 deemed the pet owner for the purposes of the pet disposal form 12 required in section 523J.15. 13 14. “Veterinarian” means a person licensed to practice the 14 profession of veterinary medicine pursuant to chapter 169. 15 Sec. 3. NEW SECTION . 523J.2 License required. 16 On and after December 1, 2013, a person shall not engage 17 for a fee in the business of operating a pet cemetery or pet 18 crematorium or represent the person as being able to do so 19 unless the person is licensed pursuant to this chapter. A 20 person licensed in accordance with this chapter may employ 21 individuals to assist in the operation of a pet cemetery or pet 22 crematorium. 23 Sec. 4. NEW SECTION . 523J.3 Authority to adopt rules —— 24 powers. 25 In addition to specific authority granted elsewhere in this 26 chapter, the commissioner shall adopt administrative rules 27 pursuant to chapter 17A as are necessary to administer this 28 chapter, and issue orders as are necessary to administer this 29 chapter. Rules to be adopted shall include but are not limited 30 to the following: 31 1. To appoint an adequate number of assistants, inspectors, 32 and other employees as may be necessary to administer this 33 chapter, to prescribe duties, and to fix compensation. 34 2. To establish the form and content of applications for 35 -3- LSB 2187XC (4) 85 da/nh 3/ 25

S.F. _____ licenses, the procedure for the application process, the 1 standards for licensure, and the disciplinary process and 2 penalties for violations of the standards of licensure. 3 3. To investigate applicants and determine their 4 eligibility for licenses under this chapter. 5 4. To keep records of all licenses issued, suspended, or 6 revoked. 7 5. To provide standards and an enforcement process for 8 operation of a facility for pet disposal for a fee, whether by 9 earth burial, entombment, inurnment, cremation, or otherwise, 10 the form and content of pet disposal forms, and registration of 11 disposals by pet cemeteries or pet crematoriums. 12 6. To enter the office, grounds, and buildings of any pet 13 cemetery or pet crematorium periodically or upon receiving a 14 complaint to determine compliance with this chapter. Local 15 boards of health shall cooperate by, upon request of the 16 commissioner, conducting the periodic inspections as well 17 as inspections pursuant to complaints to facilitate the 18 enforcement of this chapter, and the commissioner may delegate 19 authority to a local board to enforce rules and sanctions 20 adopted and imposed by the commissioner. The county shall 21 be compensated for services under this provision at a rate 22 established by rule. The costs of periodic inspections 23 shall not be charged to a licensee. However, the costs of 24 investigations of complaints may be charged to a licensee. 25 7. To conduct a financial audit of all business records, 26 trust fund records, and pet disposal forms for any pet cemetery 27 or pet crematorium. 28 8. To issue a subpoena for persons or records deemed 29 appropriate to an investigation or any other action taken 30 pursuant to this chapter. 31 9. To provide procedures to regulate, for the protection of 32 consumers, the operation of pet cemeteries and pet crematoriums 33 whose licenses to operate are suspended, revoked, or not 34 renewed. 35 -4- LSB 2187XC (4) 85 da/nh 4/ 25

S.F. _____ Sec. 5. NEW SECTION . 523J.4 License —— application. 1 1. Any person may make application to the commissioner 2 to obtain a license to engage in the business of operating 3 a pet cemetery or pet crematorium under this chapter. The 4 application form shall be provided by the commissioner and 5 shall, at a minimum, require the signature of the applicant 6 and that the applicant shall provide all of the following 7 information: 8 a. The name and address of the applicant as follows: 9 (1) If an individual, the name under which the business is 10 to be conducted. 11 (2) If a partnership, the name and business address of each 12 partner, and the name under which business is to be conducted. 13 (3) If a corporation, the name of the corporation and 14 the name and business address of each stockholder of the 15 corporation holding more than ten percent of the total stock. 16 b. The complete address or addresses where the business is 17 to be conducted. 18 c. A summary of all relevant experience of all persons 19 listed in paragraph “a”, in the operation of a cemetery, pet 20 cemetery, crematorium, pet crematorium, or in the management of 21 funds. 22 d. Satisfactory evidence of good moral character. 23 e. Further information as the commissioner may prescribe by 24 rule. 25 2. The commissioner shall not issue a license to any person 26 who: 27 a. Has had a license to operate a pet cemetery or pet 28 crematorium suspended or revoked by the commissioner. 29 b. Has been convicted within the last five years of a felony 30 under the laws of this state involving fraud, bribery, perjury, 31 or theft, or has been convicted under the laws of any other 32 state or of the United States of a criminal offense which, if 33 committed and prosecuted in this state, would constitute a 34 similar felony under such laws of this state. 35 -5- LSB 2187XC (4) 85 da/nh 5/ 25

S.F. _____ 3. Any person who has had an application for a license 1 rejected by the commissioner may appeal pursuant to section 2 523J.8. 3 Sec. 6. NEW SECTION . 523J.5 Licenses —— display —— renewal 4 —— duplicates. 5 1. All licenses issued pursuant to this chapter shall be for 6 a period of two years. 7 2. A license shall not be assignable or transferable except 8 as follows: 9 a. A license to conduct the business of operating a pet 10 cemetery or pet crematorium issued to an individual may be 11 assigned or transferred for the remainder of the license period 12 to a partnership or corporation if the individual is a member 13 of the partnership or an officer of the corporation at the time 14 of the assignment or transfer. 15 b. A license issued to a partnership may be assigned or 16 transferred for the remainder of the license period to any one 17 member of the partnership, provided the consent of all of the 18 other members of the partnership is obtained. 19 c. A license issued to a corporation may be assigned or 20 transferred for the remainder of the license period to any 21 officer of the corporation, provided the consent of all of the 22 other officers of the corporation is obtained. 23 3. Any application for transfer or assignment of a license 24 must be submitted to the commissioner, accompanied by the 25 documents demonstrating compliance with the requirements 26 of subsection 2. An assignment or transfer shall not be 27 effective until the license has been returned to the assignee 28 or transferee with the commissioner’s approval. Fees are not 29 applicable to transfers of licenses. 30 4. A bona fide purchaser of a business licensed under 31 this chapter may continue to use the license of the seller on 32 a temporary basis from the date of the sale for conducting 33 business as follows: 34 a. The signatures of both the seller and the purchaser and 35 -6- LSB 2187XC (4) 85 da/nh 6/ 25

S.F. _____ the date of sale are shown on the face of the license. 1 b. Within five days from the date of the sale, the purchaser 2 shall submit an application for a license to conduct the 3 business of operating a pet cemetery or pet crematorium. 4 c. The seller’s license shall be valid until the purchaser’s 5 license application is either granted or denied by the 6 commissioner. 7 5. A license to conduct the business of operating a pet 8 cemetery or pet crematorium issued to an individual or to a 9 partnership may be used, on a temporary basis, after the death 10 of the licensed individual or copartner by the next of kin or 11 duly appointed administrator or executor in the name of the 12 estate from the date of death of the licensed individual or 13 copartner as follows: 14 a. The face of the license displays, after the name of the 15 decedent, the word “deceased”, the date of death, and the name 16 of the next of kin, administrator, or executor under whose 17 authority the license is being used. 18 b. Within thirty days of the date of death of the licensee, 19 the next of kin, administrator, or executor shall submit an 20 application for a license to conduct the business of operating 21 a pet cemetery or pet crematorium. 22 c. Such license shall be valid until the license application 23 of the next of kin, administrator, or executor is either 24 granted or denied by the commissioner. 25 6. A license to conduct the business of operating a pet 26 cemetery or pet crematorium shall be conspicuously posted upon 27 the premises where the licensee is engaged in the business of 28 operating a pet cemetery or pet crematorium. 29 7. Any license that has not been suspended or revoked may, 30 upon the payment of the renewal fee prescribed by this chapter, 31 be renewed for additional periods of two years, upon the filing 32 of an application for renewal on a form to be prescribed by the 33 commissioner and payment of a renewal fee. 34 a. Any licensee failing to file a renewal application and 35 -7- LSB 2187XC (4) 85 da/nh 7/ 25

S.F. _____ submit the fee within forty-five days of the expiration of the 1 person’s license under this chapter shall pay an additional fee 2 of sixty dollars. 3 b. Any licensee failing to file a renewal application and 4 submit the fee within ninety days of the expiration of the 5 person’s license under this chapter shall be ineligible for a 6 license until the person shall have again met the requirements 7 of section 523J.4. 8 8. If a license issued under this chapter is lost or 9 destroyed, a licensee may, upon submission of an application 10 and payment of a fee, obtain a duplicate license upon 11 furnishing proof satisfactory to the commissioner that the 12 original license has been lost or destroyed. Each duplicate 13 license shall have the word “duplicate” stamped across the 14 front, and shall bear the same number as the license it 15 replaces. 16 9. A licensee shall give notice in writing to the 17 commissioner within thirty days of any change in address of the 18 business or residence of a licensee. The commissioner shall 19 affix an endorsement on the front of the original license as to 20 the change. A change of address by a licensee without notice 21 to and endorsement by the commissioner shall operate to cancel 22 the license. 23 Sec. 7. NEW SECTION . 523J.6 Fees —— appropriation. 24 1. The fee for a license to engage in the business of 25 operating a pet cemetery or pet crematorium shall be one 26 hundred fifty dollars. For each renewal thereof, the fee shall 27 be one hundred fifty dollars. 28 2. The fee for issuing a duplicate license shall be 29 twenty-five dollars. 30 3. The fee for changing a name or address shall be ten 31 dollars. 32 4. The fees set forth in this section shall be for licenses 33 issued for the license period of two years. A reduction or 34 refund in fees shall not be provided for late renewals or 35 -8- LSB 2187XC (4) 85 da/nh 8/ 25

S.F. _____ surrender or revocation or suspension of a license. 1 5. A municipality seeking a license to operate a pet 2 cemetery or pet crematorium shall not be charged any fees. 3 6. Notwithstanding section 8.33, moneys derived from the 4 administration of this chapter shall not revert to the general 5 fund of the state, and are appropriated to the commissioner for 6 administration, licensing, and inspections conducted pursuant 7 to this chapter. 8 Sec. 8. NEW SECTION . 523J.7 Denial of license application 9 —— suspension and revocation of licenses. 10 1. An application for a license under this chapter may be 11 denied or a license to engage in the business of operating a 12 pet cemetery or pet crematorium may be suspended or revoked by 13 the commissioner for any one or more of the following causes: 14 a. Fraud or bribery in securing a license. 15 b. The making of any false statement as to a material matter 16 in any application or other statement or certificate required 17 by or pursuant to this chapter. 18 c. Incompetence in the operation of a pet cemetery or pet 19 crematorium. 20 d. Failure to display a license as provided in this chapter. 21 e. Violation of any provision of this chapter, or of any 22 rule adopted pursuant to this chapter. 23 f. Conviction of a crime involving fraud, theft, perjury, 24 or bribery, or other cause which would permit disqualification 25 upon an original application. 26 g. Failure to retain all pet disposal forms for a period of 27 two years following receipt. 28 h. Failure to comply with the duties of an owner or operator 29 of a pet crematorium as set out in this chapter. 30 i. Conviction of a violation of chapter 717B or 717C. 31 2. If a license to engage in the business of operating a 32 pet cemetery or pet crematorium is revoked, the license shall 33 not be reinstated or reissued until after the expiration of 34 a period of five years from the date of the revocation, and 35 -9- LSB 2187XC (4) 85 da/nh 9/ 25

S.F. _____ only upon approval of the commissioner of a license application 1 pursuant to section 523J.4. 2 Sec. 9. NEW SECTION . 523J.8 Hearing. 3 1. Any license suspension or revocation, or the imposition 4 of any fine or reprimand, shall not be imposed until after a 5 hearing. All actions initiated by the commissioner are subject 6 to contested case proceedings and further review pursuant to 7 chapter 17A. 8 2. Any person who has had an application for a license 9 rejected shall be entitled to a hearing, contested case 10 proceedings, and further review pursuant to chapter 17A. 11 Sec. 10. NEW SECTION . 523J.9 Violations —— penalties. 12 1. If an audit or investigation provides reasonable 13 evidence that a person has violated this chapter, or any rule 14 adopted pursuant to this chapter, the commissioner may issue an 15 order directed at the person to cease and desist from engaging 16 in such act or practice. In addition to any other penalty, 17 the commissioner may direct a licensee to pay the reasonable 18 costs of investigation of any complaint filed pursuant to this 19 chapter, unless the commissioner determines the complaint to be 20 totally without merit. 21 2. a. The commissioner shall notify the attorney general 22 if the commissioner finds that a business operated subject 23 to regulation under this chapter meets one or more of the 24 following grounds for the establishment of a receivership: 25 (1) Is insolvent. 26 (2) Has utilized trust funds for personal or business 27 purposes in a manner inconsistent with the requirements of this 28 chapter, and the amount of funds currently held in the trust is 29 less than the amount required by this chapter. 30 b. The commissioner or the attorney general may apply to the 31 district court in any county of the state for a receivership. 32 Upon proof of any of the grounds for a receivership described 33 in this section, the court may grant a receivership. 34 3. The commissioner or the attorney general may apply to 35 -10- LSB 2187XC (4) 85 da/nh 10/ 25

S.F. _____ the district court for an injunction to restrain any licensee 1 subject to this chapter and any agents, employees, trustees, 2 or associates of the licensee from engaging in conduct or 3 practices deemed a violation of this chapter or rules adopted 4 pursuant to this chapter. Upon proof of any violation of this 5 chapter described in the petition for injunction, the court may 6 grant the injunction. The commissioner or the attorney general 7 shall not be required to post a bond. Failure to obey a court 8 order under this subsection constitutes contempt of court. 9 4. A licensee who violates any of the provisions of this 10 chapter after notice to cease and desist, or who continues 11 to engage in the business of operating a pet cemetery or pet 12 crematorium after having had the person’s license suspended or 13 revoked, or who, without a license to engage in the business 14 of operating a pet cemetery or pet crematorium, directly or 15 indirectly employs, permits, or authorizes an unlicensed person 16 to engage in the business of operating a pet cemetery or pet 17 crematorium, shall upon conviction for the first offense be 18 guilty of a serious misdemeanor. If the conviction is for a 19 subsequent offense committed after the first conviction under 20 this chapter, such person shall be guilty of an aggravated 21 misdemeanor. Each violation of this chapter shall be deemed a 22 separate offense. 23 5. The commissioner or the attorney general may include the 24 costs of investigation in any request for restitution made to a 25 court hearing a criminal action brought pursuant to a violation 26 of this chapter. 27 Sec. 11. NEW SECTION . 523J.10 Dedication of real property 28 for pet cemetery purposes. 29 1. The owner of any real property used or to be used for a 30 pet cemetery shall file, or cause to be filed, in the office of 31 the county recorder of the county in which the real property is 32 located, a dedication restricting the real property to be used 33 only for purposes as are usual and customary for the operation 34 of a pet cemetery. The owner of the real property shall 35 -11- LSB 2187XC (4) 85 da/nh 11/ 25

S.F. _____ additionally file a certified copy of the dedication, together 1 with notation of the date, time, book, and page of filing by 2 the county recorder with the commissioner. The filing with the 3 commissioner shall additionally include a copy of a survey map 4 and appropriate zoning approvals as may be reasonably required 5 by the commissioner. 6 2. The owner or operator of every pet cemetery shall keep 7 adequate records of all purchasers of space for pet remains 8 within the grounds of such pet cemetery. 9 Sec. 12. NEW SECTION . 523J.11 Removal of dedication of real 10 property. 11 1. A dedication restricting real property for the operation 12 of a pet cemetery may only be amended or removed by order of the 13 district court of the county where the pet cemetery is located. 14 A petition for amendment or removal of dedication shall include 15 written consent by all persons who purchased or otherwise are 16 entitled to rights of disposal or rights to continuing care 17 of a pet grave in that portion of the pet cemetery for which 18 the dedication is sought to be amended or removed. If the 19 portion of the pet cemetery for which the dedication is sought 20 to be amended or removed includes pet remains, the pet remains 21 must be removed, upon the written consent of all persons who 22 purchased or are otherwise entitled to rights of disposal 23 or rights to continuing care of a pet grave, their heirs or 24 assigns, with the removal to be entirely at the cost of the 25 owner of the pet cemetery. The court, upon proof of diligent 26 efforts and as determined by the court, may dispense with the 27 written consent of any person who purchased or is otherwise 28 entitled to rights of disposal whose whereabouts, identity, or 29 heirs or assigns are unknown. If the court has dispensed with 30 any person’s written consent under this section, the court may 31 make a determination as to the consideration appropriate for 32 such consent and order that the consideration be deposited with 33 the court. The consideration shall be paid to such person upon 34 appropriate proof of claim. The court shall proceed according 35 -12- LSB 2187XC (4) 85 da/nh 12/ 25

S.F. _____ to the provisions of chapter 556 in regard to unclaimed 1 consideration. 2 2. The petition for amendment or removal of dedication may 3 additionally include an environmental audit if required by the 4 court, which shall identify any environmental problems caused 5 by the pet cemetery activity, including an identification of 6 pet disposal sites. If the environmental audit identifies any 7 environmental problem, a plan for the correction or remediation 8 of such problems shall be included, including financial, human, 9 and other resource estimates, and projected time schedules for 10 the completion of the corrective and remedial actions, with 11 the court to make any order on the petition conditional upon 12 the completion of any corrective and remedial action or upon 13 the deposit with the court of an amount of money determined 14 necessary to complete the remediation or correction. 15 Sec. 13. NEW SECTION . 523J.12 Area requirements. 16 A pet cemetery that commences operations on or after 17 the effective date of this Act and that provides for the 18 permanent interment of pets shall consist of not less than five 19 contiguous acres of real property in total area, inclusive 20 of any structures, facilities, or buildings situated thereon 21 and used for the business purposes of the pet cemetery. The 22 commissioner may grant a waiver of the minimum size limit based 23 on factors including the number of aboveground entombments, the 24 number of remains buried, and the nature of the surrounding 25 community. A city or municipality may adopt a local ordinance 26 that provides for an area requirement greater than five 27 contiguous acres of real property. 28 Sec. 14. NEW SECTION . 523J.13 Maintenance fees. 29 1. A pet cemetery owner may charge a pet owner a permanent 30 maintenance endowment fee for the care of the pet cemetery. 31 Any permanent maintenance endowment fee paid shall be placed by 32 the pet cemetery owner into a permanent maintenance endowment 33 care or similar trust fund. 34 2. In lieu of a permanent maintenance endowment fee, the 35 -13- LSB 2187XC (4) 85 da/nh 13/ 25

S.F. _____ pet cemetery owner and a pet owner may enter into a contract 1 for care of the pet cemetery on an annual basis. The pet 2 owner shall then be charged an annual maintenance fee. Only 3 one contract for annual maintenance shall be entered into per 4 gravesite. The contract shall state specifically the amount of 5 the annual maintenance fee. The contract shall also state that 6 failure to pay the annual fee can result in the disinterment 7 of the pet. 8 a. The annual maintenance fee, billed each calendar year, 9 shall be deposited by the pet cemetery owner in the general 10 account of the pet cemetery to be used for pet cemetery 11 operation and maintenance during the succeeding years. For 12 the purposes of this section and section 523J.14, the term 13 “pet cemetery operation and maintenance” shall mean all costs 14 incurred to operate and maintain a pet cemetery, including 15 salaries and bonuses for employees, officers, and directors, 16 but shall not include any fines or penalties imposed on the 17 pet cemetery or its employees, officers, or directors by the 18 commissioner or other agency or court. 19 b. If the annual maintenance fee is not paid within ninety 20 days of the date due, the pet cemetery owner shall notify the 21 pet owner in writing that such fee is due and payable. If such 22 annual maintenance fee is not paid within ninety days of the 23 notice, the disposal rights or rights to continuing care of a 24 pet grave of the pet owner shall terminate. 25 c. If the annual maintenance fee is not paid within one 26 hundred eighty days of the date it is due, the disposal rights 27 of a pet owner shall terminate and the pet cemetery owner may 28 at anytime thereafter remove the pet remains and if removed 29 dispose of remains by mass cremation or mass burial. 30 d. A pet owner may prepay annual maintenance fees for any 31 number of years in advance. Prepaid annual maintenance fees 32 shall be deposited in the manner of permanent maintenance 33 endowment fees, and an annual statement shall be sent 34 reflecting the withdrawal of the annual maintenance fee and the 35 -14- LSB 2187XC (4) 85 da/nh 14/ 25

S.F. _____ balance of prepaid annual maintenance fees remaining. 1 e. The pet cemetery owner shall maintain individual 2 records of account for each permanent maintenance endowment 3 fee and each annual maintenance fee contract pursuant to 4 section 523J.18, and shall make the records accessible to the 5 commissioner pursuant to section 523J.3. 6 Sec. 15. NEW SECTION . 523J.14 Endowment care —— trust 7 funds. 8 1. A pet cemetery that commenced operations prior to the 9 effective date of this Act shall establish an endowment care or 10 similar trust fund, the balance of which shall not be less than 11 twelve thousand dollars, by January 1, 2014. The commissioner 12 may grant a waiver to this requirement if an endowment care or 13 similar trust fund is established and twelve thousand dollars 14 is placed in such fund within a reasonable amount of time not 15 to exceed ten years from the effective date of this Act, and 16 if the provisions of this section will present a significant 17 financial hardship to the owner or operator. 18 2. A pet cemetery that commences operations on or after the 19 effective date of this Act shall, prior to the acceptance of 20 any moneys as permanent maintenance endowment fees or annual 21 maintenance fees, establish an endowment care or similar 22 trust fund for the permanent operation and maintenance of the 23 pet cemetery, in an amount of not less than twelve thousand 24 dollars. 25 3. The fiduciary holding such endowment care or similar 26 trust fund shall have such power to invest the moneys in the 27 fund as set forth in chapter 633. The interest earnings of 28 such an endowment care fund shall be used for the maintenance 29 of both occupied and unoccupied lots or spaces. Any remaining 30 interest may be used for costs of access roads and paths, 31 fencing, and general maintenance of the pet cemetery. 32 4. Any distribution of the original twelve thousand 33 dollar principal of such an endowment care or similar trust 34 fund shall only be upon order of the district court of the 35 -15- LSB 2187XC (4) 85 da/nh 15/ 25

S.F. _____ county where the pet cemetery is located, for good cause, and 1 exclusively for the operation and benefit of such pet cemetery. 2 Unless such distribution of principal shall be as part of a 3 removal of dedication for the pet cemetery, the court order 4 shall additionally make adequate provision for the permanent 5 maintenance of the pet cemetery. 6 5. A pet cemetery owned and operated by a not-for-profit 7 corporation that has in excess of one million dollars in its 8 endowment care or similar trust fund may use any surplus 9 income in the trust fund above and beyond its costs for pet 10 cemetery operation and maintenance in any manner allowed by the 11 not-for-profit corporation’s articles or bylaws, provided that 12 the use of such surplus does not endanger the integrity of the 13 trust fund. 14 6. A pet cemetery owned and operated by a not-for-profit 15 corporation that is a humane society may be granted a waiver 16 of the provisions of this section by the commissioner if the 17 commissioner determines that the interests of the pet owners 18 will be adequately protected and the provisions of this section 19 present a significant financial hardship to the owner. 20 7. Such trust funds are not invalid by reason of any 21 indefiniteness or uncertainty of the persons designated as 22 beneficiaries, and such trust funds shall not be invalid as 23 violating any existing rule against perpetuities. 24 Sec. 16. NEW SECTION . 523J.15 Pet disposal forms. 25 1. Each person who gives a veterinarian, a pet cemetery 26 owner, or pet crematorium owner a pet for disposal shall be 27 provided by the veterinarian, pet cemetery owner, or pet 28 crematorium owner with a pet disposal disclosure document, in a 29 form approved by the commissioner, which shall set forth the 30 alternative methods of pet disposal, the cost of each method of 31 pet disposal, if available, and the nature of or place in which 32 each method of disposal will be carried out. The veterinarian, 33 pet cemetery owner, or pet crematorium owner, as the case may 34 be, shall give to the person who completes the form a copy of 35 -16- LSB 2187XC (4) 85 da/nh 16/ 25

S.F. _____ the form and retain a copy of the completed form. If the person 1 completing the form chooses to have the pet disposed of by a 2 pet cemetery or pet crematorium and makes the arrangements for 3 disposal through a veterinarian, the veterinarian shall provide 4 the person with the name, location, and telephone number of the 5 pet cemetery or pet crematorium so that the person may obtain 6 information about the pet cemetery or pet crematorium. The 7 veterinarian shall also ensure that a copy of the pet disposal 8 form accompanies the deceased pet when the deceased pet is 9 removed from the veterinarian’s office. 10 2. A veterinarian or pet cemetery operator may complete a 11 pet disposal form with the oral consent of the pet owner. Such 12 oral consent shall be witnessed and a record of such consent 13 and the completed pet disposal form shall be retained in the 14 veterinarian’s or pet cemetery’s records. A copy of such 15 completed pet disposal form shall be sent to the pet owner. 16 3. If a pet owner is unwilling or unable to complete a pet 17 disposal form, a veterinarian may complete the pet disposal 18 form if two attempts are made to contact the pet owner. At 19 least one such attempt shall be made in writing and sent by 20 first-class mail. If the veterinarian completes the pet 21 disposal form without the consent of the pet owner, a copy 22 of the completed pet disposal form shall be retained by the 23 veterinarian along with the records of the attempts to contact 24 the pet owner. 25 4. A pet disposal form shall not be required if any of the 26 following apply: 27 a. The pet owner cannot be identified. 28 b. The pet remains originate with a municipality. 29 c. The pet is abandoned pursuant to section 162.19. 30 d. The pet is to be disposed of without charge to the pet 31 owner. 32 Sec. 17. NEW SECTION . 523J.16 Disposal —— compliance. 33 A pet cemetery owner shall dispose of a pet in compliance 34 with a pet disposal form completed by a pet owner or 35 -17- LSB 2187XC (4) 85 da/nh 17/ 25

S.F. _____ veterinarian. The pet cemetery owner shall, within ten days 1 of disposal by individual cremation or individual burial, 2 send or give a written confirmation of such disposal to the 3 pet owner or veterinarian, depending on instructions in the 4 pet disposal form, and shall attest to the method, date, and 5 place of disposal. If a pet is disposed of either through 6 mass cremation or mass burial, no written confirmation shall 7 be required. Copies of all forms shall be retained by the pet 8 cemetery owner and by the veterinarian for a period of two 9 years after disposal. All pet remains shall be buried at least 10 twelve inches below the surface of the ground, or in accordance 11 with section 167.12 in the case of a large domestic animal, or 12 otherwise disposed of in a sanitary manner. 13 Sec. 18. NEW SECTION . 523J.17 Exclusions. 14 The following pet cemeteries shall be exempt from the trust 15 fund provisions of section 566B.15, the dedication provisions 16 of section 566B.11, and the area requirement of section 17 566B.13: 18 1. A pet cemetery owned by a licensed veterinarian. 19 2. A pet cemetery located on land used in agricultural 20 production. 21 3. A pet cemetery that does not allow individual burials. 22 4. A pet cemetery that does not allow individual grave 23 markers. 24 5. A pet cemetery that does not charge a maintenance fee for 25 the care of pet graves. 26 6. A pet cemetery that does not make any representation that 27 pet graves will be cared for or that the land is dedicated. 28 7. A pet cemetery that buries less than five animals a 29 year, makes no representation that the pet graves will be 30 cared for or that the land is dedicated, and does not charge a 31 maintenance fee for the care of the pet graves. 32 Sec. 19. NEW SECTION . 523J.18 Duties. 33 1. All owners and operators of pet cemeteries shall have the 34 following duties: 35 -18- LSB 2187XC (4) 85 da/nh 18/ 25