SSB 1191 (LSB 2187XC (4) 85)

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 pet cemeteries and pet crematoriums, establishing standards and fees, making an appropriation, and providing for criminal penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  LEGISLATIVE FINDINGS.
   1.  The general assembly finds that the relationships that humans develop with other members of the animal kingdom that are taken into homes and maintained as pets are unique and special. These relationships can enrich lives and increase happiness. Even after the death of a pet, human attachment to the memory of the pet often remains very strong and many people feel the need to memorialize the love felt for the animal by burying the pet in a pet cemetery. Pet cemeteries and their owners and operators have a special responsibility to customers who have entrusted pet remains to them. These pet cemeteries have a duty to act in an ethical and lawful manner to prevent grieving pet owners from experiencing further emotional pain or financial manipulation. Perpetrations of fraud against grieving pet owners are unconscionable.
   2.  The general assembly further finds that the people of this state have a vital interest in the establishment, maintenance, and preservation of pet cemeteries and pet crematoriums and the proper operation of the businesses and individuals that own and manage the business. This chapter is determined to be an exercise of the police powers of this state to protect the well-being of citizens of this state, to promote the public welfare, to promote the health of the public, and to prevent pet cemeteries and pet crematoriums from falling into disrepair and dilapidation and becoming a burden upon the community.
    Sec. 2.  NEW SECTION.  523J.1  Definitions.
   As used in this chapter, unless the context requires otherwise:
   1.  “Commissioner” means the commissioner of insurance or the commissioner’s designee.
   2.  “Entombment” means the placement of a pet in a grave or tomb.
   3.  “Individual burial” means any of the following:
   a.  The interment of a single pet’s remains in a separate grave.
   b.  The interment of more than one pet in a grave with the written consent of the pet owner.
   4.  “Individual cremation” means the cremation of a single pet’s remains in a separate receptacle that allows the pet’s cremains to remain separate from the cremains of other pets.
   5.  “Inurnment” means the placement of pet cremains in a grave, urn, or tomb.
   6.  “Licensee” means a person licensed to engage in the business of operating a pet cemetery or pet crematorium under this chapter.
   7.  “License fee and renewal fee” means the fees required to accompany an application for issuance of any license, including any temporary, apprentice, or renewal license, pursuant to this chapter.
   8.  “Mass burial” means the interment of pet remains communally in a grave containing more than one pet.
   9.  “Mass cremation” means the cremation of pets communally in a receptacle containing more than one pet.
   10.  “Pet” means any domestic animal that has been adapted or tamed to live in intimate association with people, including but not limited to dogs, cats, rodents, fish, birds, snakes, turtles, lizards, frogs, and rabbits.
   11.  “Pet cemetery” means any land, place, structure, facility, or building provided by any person for a fee, whether or not for profit, to veterinarians or members of the general public for use, or reservation for use, for the permanent interment or inurnment above or below ground of pet remains. However, this definition shall not apply to:
   a.  Rendering plants regulated pursuant to chapter 189A.
   b.  A landfill or other disposal facility at which solid waste, or its residue after treatment, is intentionally placed and at which solid waste shall remain indefinitely.
   12.  “Pet crematorium” means any land, place, structure, facility, or building provided by any person for a fee, whether or not for profit, to veterinarians or members of the general public for the cremation of pets. However, a pet crematorium shall not provide for permanent interment or inurnment of pet remains. This definition does not apply to facilities designed for resource recovery or infectious medical waste incinerators, both as regulated by chapter 455B.
   13.  “Pet owner” means the person who is listed as the owner of the pet in veterinary records or pet cemetery or crematorium records or the person’s agent or employee. If such a pet owner is a minor, a parent or legal guardian of the minor or the parent’s or legal guardian’s agent or employee shall be deemed the pet owner for the purposes of the pet disposal form required in section 523J.15.
   14.  “Veterinarian” means a person licensed to practice the profession of veterinary medicine pursuant to chapter 169.
    Sec. 3.  NEW SECTION.  523J.2  License required.
   On and after December 1, 2013, a person shall not engage for a fee in the business of operating a pet cemetery or pet crematorium or represent the person as being able to do so unless the person is licensed pursuant to this chapter. A person licensed in accordance with this chapter may employ individuals to assist in the operation of a pet cemetery or pet crematorium.
    Sec. 4.  NEW SECTION.  523J.3  Authority to adopt rules —— powers.
   In addition to specific authority granted elsewhere in this chapter, the commissioner shall adopt administrative rules pursuant to chapter 17A as are necessary to administer this chapter, and issue orders as are necessary to administer this chapter. Rules to be adopted shall include but are not limited to the following:
   1.  To appoint an adequate number of assistants, inspectors, and other employees as may be necessary to administer this chapter, to prescribe duties, and to fix compensation.
   2.  To establish the form and content of applications for licenses, the procedure for the application process, the standards for licensure, and the disciplinary process and penalties for violations of the standards of licensure.
   3.  To investigate applicants and determine their eligibility for licenses under this chapter.
   4.  To keep records of all licenses issued, suspended, or revoked.
   5.  To provide standards and an enforcement process for operation of a facility for pet disposal for a fee, whether by earth burial, entombment, inurnment, cremation, or otherwise, the form and content of pet disposal forms, and registration of disposals by pet cemeteries or pet crematoriums.
   6.  To enter the office, grounds, and buildings of any pet cemetery or pet crematorium periodically or upon receiving a complaint to determine compliance with this chapter. Local boards of health shall cooperate by, upon request of the commissioner, conducting the periodic inspections as well as inspections pursuant to complaints to facilitate the enforcement of this chapter, and the commissioner may delegate authority to a local board to enforce rules and sanctions adopted and imposed by the commissioner. The county shall be compensated for services under this provision at a rate established by rule. The costs of periodic inspections shall not be charged to a licensee. However, the costs of investigations of complaints may be charged to a licensee.
   7.  To conduct a financial audit of all business records, trust fund records, and pet disposal forms for any pet cemetery or pet crematorium.
   8.  To issue a subpoena for persons or records deemed appropriate to an investigation or any other action taken pursuant to this chapter.
   9.  To provide procedures to regulate, for the protection of consumers, the operation of pet cemeteries and pet crematoriums whose licenses to operate are suspended, revoked, or not renewed.
    Sec. 5.  NEW SECTION.  523J.4  License —— application.
   1.  Any person may make application to the commissioner to obtain a license to engage in the business of operating a pet cemetery or pet crematorium under this chapter. The application form shall be provided by the commissioner and shall, at a minimum, require the signature of the applicant and that the applicant shall provide all of the following information:
   a.  The name and address of the applicant as follows:
   (1)  If an individual, the name under which the business is to be conducted.
   (2)  If a partnership, the name and business address of each partner, and the name under which business is to be conducted.
   (3)  If a corporation, the name of the corporation and the name and business address of each stockholder of the corporation holding more than ten percent of the total stock.
   b.  The complete address or addresses where the business is to be conducted.
   c.  A summary of all relevant experience of all persons listed in paragraph “a”, in the operation of a cemetery, pet cemetery, crematorium, pet crematorium, or in the management of funds.
   d.  Satisfactory evidence of good moral character.
   e.  Further information as the commissioner may prescribe by rule.
   2.  The commissioner shall not issue a license to any person who:
   a.  Has had a license to operate a pet cemetery or pet crematorium suspended or revoked by the commissioner.
   b.  Has been convicted within the last five years of a felony under the laws of this state involving fraud, bribery, perjury, or theft, or has been convicted under the laws of any other state or of the United States of a criminal offense which, if committed and prosecuted in this state, would constitute a similar felony under such laws of this state.

   3.  Any person who has had an application for a license rejected by the commissioner may appeal pursuant to section 523J.8.
    Sec. 6.  NEW SECTION.  523J.5  Licenses —— display —— renewal —— duplicates.
   1.  All licenses issued pursuant to this chapter shall be for a period of two years.
   2.  A license shall not be assignable or transferable except as follows:
   a.  A license to conduct the business of operating a pet cemetery or pet crematorium issued to an individual may be assigned or transferred for the remainder of the license period to a partnership or corporation if the individual is a member of the partnership or an officer of the corporation at the time of the assignment or transfer.
   b.  A license issued to a partnership may be assigned or transferred for the remainder of the license period to any one member of the partnership, provided the consent of all of the other members of the partnership is obtained.
   c.  A license issued to a corporation may be assigned or transferred for the remainder of the license period to any officer of the corporation, provided the consent of all of the other officers of the corporation is obtained.
   3.  Any application for transfer or assignment of a license must be submitted to the commissioner, accompanied by the documents demonstrating compliance with the requirements of subsection 2. An assignment or transfer shall not be effective until the license has been returned to the assignee or transferee with the commissioner’s approval. Fees are not applicable to transfers of licenses.
   4.  A bona fide purchaser of a business licensed under this chapter may continue to use the license of the seller on a temporary basis from the date of the sale for conducting business as follows:
   a.  The signatures of both the seller and the purchaser and the date of sale are shown on the face of the license.
   b.  Within five days from the date of the sale, the purchaser shall submit an application for a license to conduct the business of operating a pet cemetery or pet crematorium.
   c.  The seller’s license shall be valid until the purchaser’s license application is either granted or denied by the commissioner.
   5.  A license to conduct the business of operating a pet cemetery or pet crematorium issued to an individual or to a partnership may be used, on a temporary basis, after the death of the licensed individual or copartner by the next of kin or duly appointed administrator or executor in the name of the estate from the date of death of the licensed individual or copartner as follows:
   a.  The face of the license displays, after the name of the decedent, the word “deceased”, the date of death, and the name of the next of kin, administrator, or executor under whose authority the license is being used.
   b.  Within thirty days of the date of death of the licensee, the next of kin, administrator, or executor shall submit an application for a license to conduct the business of operating a pet cemetery or pet crematorium.
   c.  Such license shall be valid until the license application of the next of kin, administrator, or executor is either granted or denied by the commissioner.
   6.  A license to conduct the business of operating a pet cemetery or pet crematorium shall be conspicuously posted upon the premises where the licensee is engaged in the business of operating a pet cemetery or pet crematorium.
   7.  Any license that has not been suspended or revoked may, upon the payment of the renewal fee prescribed by this chapter, be renewed for additional periods of two years, upon the filing of an application for renewal on a form to be prescribed by the commissioner and payment of a renewal fee.
   a.  Any licensee failing to file a renewal application and submit the fee within forty-five days of the expiration of the person’s license under this chapter shall pay an additional fee of sixty dollars.
   b.  Any licensee failing to file a renewal application and submit the fee within ninety days of the expiration of the person’s license under this chapter shall be ineligible for a license until the person shall have again met the requirements of section 523J.4.
   8.  If a license issued under this chapter is lost or destroyed, a licensee may, upon submission of an application and payment of a fee, obtain a duplicate license upon furnishing proof satisfactory to the commissioner that the original license has been lost or destroyed. Each duplicate license shall have the word “duplicate” stamped across the front, and shall bear the same number as the license it replaces.
   9.  A licensee shall give notice in writing to the commissioner within thirty days of any change in address of the business or residence of a licensee. The commissioner shall affix an endorsement on the front of the original license as to the change. A change of address by a licensee without notice to and endorsement by the commissioner shall operate to cancel the license.
    Sec. 7.  NEW SECTION.  523J.6  Fees —— appropriation.
   1.  The fee for a license to engage in the business of operating a pet cemetery or pet crematorium shall be one hundred fifty dollars. For each renewal thereof, the fee shall be one hundred fifty dollars.
   2.  The fee for issuing a duplicate license shall be twenty-five dollars.
   3.  The fee for changing a name or address shall be ten dollars.
   4.  The fees set forth in this section shall be for licenses issued for the license period of two years. A reduction or refund in fees shall not be provided for late renewals or surrender or revocation or suspension of a license.
   5.  A municipality seeking a license to operate a pet cemetery or pet crematorium shall not be charged any fees.
   6.  Notwithstanding section 8.33, moneys derived from the administration of this chapter shall not revert to the general fund of the state, and are appropriated to the commissioner for administration, licensing, and inspections conducted pursuant to this chapter.
    Sec. 8.  NEW SECTION.  523J.7  Denial of license application —— suspension and revocation of licenses.
   1.  An application for a license under this chapter may be denied or a license to engage in the business of operating a pet cemetery or pet crematorium may be suspended or revoked by the commissioner for any one or more of the following causes:
   a.  Fraud or bribery in securing a license.
   b.  The making of any false statement as to a material matter in any application or other statement or certificate required by or pursuant to this chapter.
   c.  Incompetence in the operation of a pet cemetery or pet crematorium.
   d.  Failure to display a license as provided in this chapter.
   e.  Violation of any provision of this chapter, or of any rule adopted pursuant to this chapter.
   f.  Conviction of a crime involving fraud, theft, perjury, or bribery, or other cause which would permit disqualification upon an original application.
   g.  Failure to retain all pet disposal forms for a period of two years following receipt.
   h.  Failure to comply with the duties of an owner or operator of a pet crematorium as set out in this chapter.
   i.  Conviction of a violation of chapter 717B or 717C.
   2.  If a license to engage in the business of operating a pet cemetery or pet crematorium is revoked, the license shall not be reinstated or reissued until after the expiration of a period of five years from the date of the revocation, and only upon approval of the commissioner of a license application pursuant to section 523J.4.
    Sec. 9.  NEW SECTION.  523J.8  Hearing.
   1.  Any license suspension or revocation, or the imposition of any fine or reprimand, shall not be imposed until after a hearing. All actions initiated by the commissioner are subject to contested case proceedings and further review pursuant to chapter 17A.
   2.  Any person who has had an application for a license rejected shall be entitled to a hearing, contested case proceedings, and further review pursuant to chapter 17A.
    Sec. 10.  NEW SECTION.  523J.9  Violations —— penalties.
   1.  If an audit or investigation provides reasonable evidence that a person has violated this chapter, or any rule adopted pursuant to this chapter, the commissioner may issue an order directed at the person to cease and desist from engaging in such act or practice. In addition to any other penalty, the commissioner may direct a licensee to pay the reasonable costs of investigation of any complaint filed pursuant to this chapter, unless the commissioner determines the complaint to be totally without merit.
   2.
  a.  The commissioner shall notify the attorney general if the commissioner finds that a business operated subject to regulation under this chapter meets one or more of the following grounds for the establishment of a receivership:
   (1)  Is insolvent.
   (2)  Has utilized trust funds for personal or business purposes in a manner inconsistent with the requirements of this chapter, and the amount of funds currently held in the trust is less than the amount required by this chapter.
   b.  The commissioner or the attorney general may apply to the district court in any county of the state for a receivership. Upon proof of any of the grounds for a receivership described in this section, the court may grant a receivership.
   3.  The commissioner or the attorney general may apply to the district court for an injunction to restrain any licensee subject to this chapter and any agents, employees, trustees, or associates of the licensee from engaging in conduct or practices deemed a violation of this chapter or rules adopted pursuant to this chapter. Upon proof of any violation of this chapter described in the petition for injunction, the court may grant the injunction. The commissioner or the attorney general shall not be required to post a bond. Failure to obey a court order under this subsection constitutes contempt of court.
   4.  A licensee who violates any of the provisions of this chapter after notice to cease and desist, or who continues to engage in the business of operating a pet cemetery or pet crematorium after having had the person’s license suspended or revoked, or who, without a license to engage in the business of operating a pet cemetery or pet crematorium, directly or indirectly employs, permits, or authorizes an unlicensed person to engage in the business of operating a pet cemetery or pet crematorium, shall upon conviction for the first offense be guilty of a serious misdemeanor. If the conviction is for a subsequent offense committed after the first conviction under this chapter, such person shall be guilty of an aggravated misdemeanor. Each violation of this chapter shall be deemed a separate offense.
   5.  The commissioner or the attorney general may include the costs of investigation in any request for restitution made to a court hearing a criminal action brought pursuant to a violation of this chapter.
    Sec. 11.  NEW SECTION.  523J.10  Dedication of real property for pet cemetery purposes.
   1.  The owner of any real property used or to be used for a pet cemetery shall file, or cause to be filed, in the office of the county recorder of the county in which the real property is located, a dedication restricting the real property to be used only for purposes as are usual and customary for the operation of a pet cemetery. The owner of the real property shall additionally file a certified copy of the dedication, together with notation of the date, time, book, and page of filing by the county recorder with the commissioner. The filing with the commissioner shall additionally include a copy of a survey map and appropriate zoning approvals as may be reasonably required by the commissioner.
   2.  The owner or operator of every pet cemetery shall keep adequate records of all purchasers of space for pet remains within the grounds of such pet cemetery.
    Sec. 12.  NEW SECTION.  523J.11  Removal of dedication of real property.
   1.  A dedication restricting real property for the operation of a pet cemetery may only be amended or removed by order of the district court of the county where the pet cemetery is located. A petition for amendment or removal of dedication shall include written consent by all persons who purchased or otherwise are entitled to rights of disposal or rights to continuing care of a pet grave in that portion of the pet cemetery for which the dedication is sought to be amended or removed. If the portion of the pet cemetery for which the dedication is sought to be amended or removed includes pet remains, the pet remains must be removed, upon the written consent of all persons who purchased or are otherwise entitled to rights of disposal or rights to continuing care of a pet grave, their heirs or assigns, with the removal to be entirely at the cost of the owner of the pet cemetery. The court, upon proof of diligent efforts and as determined by the court, may dispense with the written consent of any person who purchased or is otherwise entitled to rights of disposal whose whereabouts, identity, or heirs or assigns are unknown. If the court has dispensed with any person’s written consent under this section, the court may make a determination as to the consideration appropriate for such consent and order that the consideration be deposited with the court. The consideration shall be paid to such person upon appropriate proof of claim. The court shall proceed according to the provisions of chapter 556 in regard to unclaimed consideration.
   2.  The petition for amendment or removal of dedication may additionally include an environmental audit if required by the court, which shall identify any environmental problems caused by the pet cemetery activity, including an identification of pet disposal sites. If the environmental audit identifies any environmental problem, a plan for the correction or remediation of such problems shall be included, including financial, human, and other resource estimates, and projected time schedules for the completion of the corrective and remedial actions, with the court to make any order on the petition conditional upon the completion of any corrective and remedial action or upon the deposit with the court of an amount of money determined necessary to complete the remediation or correction.
    Sec. 13.  NEW SECTION.  523J.12  Area requirements.
   A pet cemetery that commences operations on or after the effective date of this Act and that provides for the permanent interment of pets shall consist of not less than five contiguous acres of real property in total area, inclusive of any structures, facilities, or buildings situated thereon and used for the business purposes of the pet cemetery. The commissioner may grant a waiver of the minimum size limit based on factors including the number of aboveground entombments, the number of remains buried, and the nature of the surrounding community. A city or municipality may adopt a local ordinance that provides for an area requirement greater than five contiguous acres of real property.
    Sec. 14.  NEW SECTION.  523J.13  Maintenance fees.
   1.  A pet cemetery owner may charge a pet owner a permanent maintenance endowment fee for the care of the pet cemetery. Any permanent maintenance endowment fee paid shall be placed by the pet cemetery owner into a permanent maintenance endowment care or similar trust fund.
   2.  In lieu of a permanent maintenance endowment fee, the pet cemetery owner and a pet owner may enter into a contract for care of the pet cemetery on an annual basis. The pet owner shall then be charged an annual maintenance fee. Only one contract for annual maintenance shall be entered into per gravesite. The contract shall state specifically the amount of the annual maintenance fee. The contract shall also state that failure to pay the annual fee can result in the disinterment of the pet.
   a.  The annual maintenance fee, billed each calendar year, shall be deposited by the pet cemetery owner in the general account of the pet cemetery to be used for pet cemetery operation and maintenance during the succeeding years. For the purposes of this section and section 523J.14, the term “pet cemetery operation and maintenance” shall mean all costs incurred to operate and maintain a pet cemetery, including salaries and bonuses for employees, officers, and directors, but shall not include any fines or penalties imposed on the pet cemetery or its employees, officers, or directors by the commissioner or other agency or court.
   b.  If the annual maintenance fee is not paid within ninety days of the date due, the pet cemetery owner shall notify the pet owner in writing that such fee is due and payable. If such annual maintenance fee is not paid within ninety days of the notice, the disposal rights or rights to continuing care of a pet grave of the pet owner shall terminate.
   c.  If the annual maintenance fee is not paid within one hundred eighty days of the date it is due, the disposal rights of a pet owner shall terminate and the pet cemetery owner may at anytime thereafter remove the pet remains and if removed dispose of remains by mass cremation or mass burial.
   d.  A pet owner may prepay annual maintenance fees for any number of years in advance. Prepaid annual maintenance fees shall be deposited in the manner of permanent maintenance endowment fees, and an annual statement shall be sent reflecting the withdrawal of the annual maintenance fee and the balance of prepaid annual maintenance fees remaining.
   e.  The pet cemetery owner shall maintain individual records of account for each permanent maintenance endowment fee and each annual maintenance fee contract pursuant to section 523J.18, and shall make the records accessible to the commissioner pursuant to section 523J.3.
    Sec. 15.  NEW SECTION.  523J.14  Endowment care —— trust funds.
   1.  A pet cemetery that commenced operations prior to the effective date of this Act shall establish an endowment care or similar trust fund, the balance of which shall not be less than twelve thousand dollars, by January 1, 2014. The commissioner may grant a waiver to this requirement if an endowment care or similar trust fund is established and twelve thousand dollars is placed in such fund within a reasonable amount of time not to exceed ten years from the effective date of this Act, and if the provisions of this section will present a significant financial hardship to the owner or operator.
   2.  A pet cemetery that commences operations on or after the effective date of this Act shall, prior to the acceptance of any moneys as permanent maintenance endowment fees or annual maintenance fees, establish an endowment care or similar trust fund for the permanent operation and maintenance of the pet cemetery, in an amount of not less than twelve thousand dollars.
   3.  The fiduciary holding such endowment care or similar trust fund shall have such power to invest the moneys in the fund as set forth in chapter 633. The interest earnings of such an endowment care fund shall be used for the maintenance of both occupied and unoccupied lots or spaces. Any remaining interest may be used for costs of access roads and paths, fencing, and general maintenance of the pet cemetery.
   4.  Any distribution of the original twelve thousand dollar principal of such an endowment care or similar trust fund shall only be upon order of the district court of the county where the pet cemetery is located, for good cause, and exclusively for the operation and benefit of such pet cemetery. Unless such distribution of principal shall be as part of a removal of dedication for the pet cemetery, the court order shall additionally make adequate provision for the permanent maintenance of the pet cemetery.
   5.  A pet cemetery owned and operated by a not-for-profit corporation that has in excess of one million dollars in its endowment care or similar trust fund may use any surplus income in the trust fund above and beyond its costs for pet cemetery operation and maintenance in any manner allowed by the not-for-profit corporation’s articles or bylaws, provided that the use of such surplus does not endanger the integrity of the trust fund.
   6.  A pet cemetery owned and operated by a not-for-profit corporation that is a humane society may be granted a waiver of the provisions of this section by the commissioner if the commissioner determines that the interests of the pet owners will be adequately protected and the provisions of this section present a significant financial hardship to the owner.
   7.  Such trust funds are not invalid by reason of any indefiniteness or uncertainty of the persons designated as beneficiaries, and such trust funds shall not be invalid as violating any existing rule against perpetuities.
    Sec. 16.  NEW SECTION.  523J.15  Pet disposal forms.
   1.  Each person who gives a veterinarian, a pet cemetery owner, or pet crematorium owner a pet for disposal shall be provided by the veterinarian, pet cemetery owner, or pet crematorium owner with a pet disposal disclosure document, in a form approved by the commissioner, which shall set forth the alternative methods of pet disposal, the cost of each method of pet disposal, if available, and the nature of or place in which each method of disposal will be carried out. The veterinarian, pet cemetery owner, or pet crematorium owner, as the case may be, shall give to the person who completes the form a copy of the form and retain a copy of the completed form. If the person completing the form chooses to have the pet disposed of by a pet cemetery or pet crematorium and makes the arrangements for disposal through a veterinarian, the veterinarian shall provide the person with the name, location, and telephone number of the pet cemetery or pet crematorium so that the person may obtain information about the pet cemetery or pet crematorium. The veterinarian shall also ensure that a copy of the pet disposal form accompanies the deceased pet when the deceased pet is removed from the veterinarian’s office.
   2.  A veterinarian or pet cemetery operator may complete a pet disposal form with the oral consent of the pet owner. Such oral consent shall be witnessed and a record of such consent and the completed pet disposal form shall be retained in the veterinarian’s or pet cemetery’s records. A copy of such completed pet disposal form shall be sent to the pet owner.
   3.  If a pet owner is unwilling or unable to complete a pet disposal form, a veterinarian may complete the pet disposal form if two attempts are made to contact the pet owner. At least one such attempt shall be made in writing and sent by first-class mail. If the veterinarian completes the pet disposal form without the consent of the pet owner, a copy of the completed pet disposal form shall be retained by the veterinarian along with the records of the attempts to contact the pet owner.
   4.  A pet disposal form shall not be required if any of the following apply:
   a.  The pet owner cannot be identified.
   b.  The pet remains originate with a municipality.
   c.  The pet is abandoned pursuant to section 162.19.
   d.  The pet is to be disposed of without charge to the pet owner.
    Sec. 17.  NEW SECTION.  523J.16  Disposal —— compliance.
   A pet cemetery owner shall dispose of a pet in compliance with a pet disposal form completed by a pet owner or veterinarian. The pet cemetery owner shall, within ten days of disposal by individual cremation or individual burial, send or give a written confirmation of such disposal to the pet owner or veterinarian, depending on instructions in the pet disposal form, and shall attest to the method, date, and place of disposal. If a pet is disposed of either through mass cremation or mass burial, no written confirmation shall be required. Copies of all forms shall be retained by the pet cemetery owner and by the veterinarian for a period of two years after disposal. All pet remains shall be buried at least twelve inches below the surface of the ground, or in accordance with section 167.12 in the case of a large domestic animal, or otherwise disposed of in a sanitary manner.
    Sec. 18.  NEW SECTION.  523J.17  Exclusions.
   The following pet cemeteries shall be exempt from the trust fund provisions of section 566B.15, the dedication provisions of section 566B.11, and the area requirement of section 566B.13:
   1.  A pet cemetery owned by a licensed veterinarian.
   2.  A pet cemetery located on land used in agricultural production.
   3.  A pet cemetery that does not allow individual burials.
   4.  A pet cemetery that does not allow individual grave markers.
   5.  A pet cemetery that does not charge a maintenance fee for the care of pet graves.
   6.  A pet cemetery that does not make any representation that pet graves will be cared for or that the land is dedicated.
   7.  A pet cemetery that buries less than five animals a year, makes no representation that the pet graves will be cared for or that the land is dedicated, and does not charge a maintenance fee for the care of the pet graves.
    Sec. 19.  NEW SECTION.  523J.18  Duties.
   1.  All owners and operators of pet cemeteries shall have the following duties:

   a.  To keep permanently maps and records containing the specific site of each pet grave, the grave owner’s last known address, the date of burial, the size of such grave, the contract for sale of such grave, and pet disposal forms.
   b.  To keep complete records of the names of trustees of any trust accounts and complete records of all trust fund moneys.
   c.  To clearly inform customers of the option of paying maintenance fees for care of pet graves, including costs and benefits for permanent care for pet graves and annual care for pet graves.
   d.  To cooperate with all reasonable requests of inspectors appointed by the commissioner to inspect pet cemeteries and pet crematoriums.
   e.  To provide notice to customers about hours that the cemetery will be open to visitors to view pet graves.
   2.  The provisions of subsection 1 shall apply only to individual burials.
    Sec. 20.  Section 167.1, Code 2013, is amended to read as follows:
   167.1  Scope.
   This chapter shall not apply to licensed slaughterhouses, or to the disposal, by licensed
 
the following:
   1.  Licensed
 
slaughterhouses, of the bodies of animals, or any part thereof, slaughtered for human food.
   2.  The disposal of the remains of pets pursuant to chapter 566B.
EXPLANATION
   This bill makes legislative findings regarding the importance of the relationship of pets to humans, and the protection of the pet owner from unconscionable acts on the part of persons in the business of providing for the disposal of the remains of deceased pets.
   The bill provides definitions to be used in new Code chapter 523J. Code section 523J.1 defines terms related to the business of disposal of pet remains, such as “entombment”, which means the placement of a pet in a grave or tomb; “inurnment”, meaning the placement of pet cremains in a grave, urn, or tomb; and general terms, such as “pet”, meaning any domestic animal that had been adapted or tamed to live in intimate association with people, including, but not limited to, dogs, cats, rodents, fish, birds, snakes, turtles, lizards, frogs, and rabbits; and “pet cemetery”, meaning any land, place, structure, facility, or building provided by any person for a fee, whether or not for profit, to veterinarians or members of the general public for use for the permanent interment or inurnment of pet remains. The businesses regulated by Code chapter 523J are under the authority of the commissioner of insurance.
   New Code section 523J.2 provides that a license is required for a person to engage for a fee in the business of operating a pet cemetery or pet crematorium.
   New Code section 523J.3 grants to the commissioner authority to adopt rules, create forms, investigate applicants for licensure, keep records of licenses issued, suspended, or revoked, provide standards and an enforcement process for operation of a facility, conduct inspections of premises and financial audits of pet cemeteries and pet crematoriums, subpoena records for an action taken pursuant to the chapter, and provide procedures to protect consumers when a license to operate a facility is suspended, revoked, or not renewed.
   New Code section 523J.4 provides requirements for application for licensure to conduct the business of operating a pet cemetery or pet crematorium. New Code section 523J.5 provides for the term, the transferability, and the renewal of licenses, and for a duplicate license in case of loss or destruction. A licensee is also required to notify the commissioner within 30 days of any change in address of the place of business or the residence of a licensee.
   New Code section 523J.6 requires a fee of $150 for a new license or the renewal of a license, and provides for a fee of $25 for a duplicate license, and $10 for change of name or address. A municipality seeking a license to operate a pet cemetery or pet crematorium shall not be charged any fees. The moneys derived from the fees are appropriated to the commissioner for the expenses of administration, licensing, and inspections conducted pursuant to the Code chapter.
   New Code section 523J.7 provides circumstances that allow the commissioner to deny a license application, and circumstances under which a license can be suspended or revoked. The prohibited circumstances include fraud or bribery in securing a license, making any false statement of material fact in the application or any certificate required by the chapter, incompetence, failure to display the license, violation of the provisions of the chapter, conviction of a crime involving fraud, theft, perjury, or bribery, failure to retain pet disposal forms, failure to comply with the duties of an owner or operator of a pet cemetery or pet crematorium as set out in the chapter, or conviction of a violation of Code chapter 717B or Code chapter 717C regarding an injury to animals. A licensee whose license has been revoked may not be reinstated for five years from the date of revocation, and must reapply for a license under Code section 523J.4.
   New Code section 523J.8 requires that any license suspension or revocation, or the imposition of any fine or reprimand, shall not be imposed until after a hearing, and all actions initiated by the commissioner are subject to contested case proceedings and further review pursuant to Code chapter 17A.
   New Code section 523J.9 provides penalties for violations by a licensee, including an order to cease and desist. The commissioner shall notify the attorney general if a receivership is required because a licensee is insolvent or has utilized trust funds for personal or business purposes inconsistent with the requirements of the chapter. The commissioner or the attorney general may seek an injunction to restrain a licensee from engaging in conduct or practices deemed a violation of the chapter or rules adopted pursuant to the chapter. A licensee who persists in the violation after notice to cease and desist, or after a license is suspended or revoked, shall upon conviction for a first offense be guilty of a serious misdemeanor. If the conviction is for a subsequent offense, the person shall be guilty of an aggravated misdemeanor. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $250 but not more than $1,500. An aggravated misdemeanor is punishable by confinement for no more than two years and a fine of at least $500 but not more than $5,000.
   New Code section 523J.10 provides for the dedication of real property for pet cemetery purposes, by the filing by the owner of any real property of a dedication restricting the real property to use only as a pet cemetery. The owner of any such pet cemetery shall keep adequate records of purchasers of space for pet remains within the pet cemetery.
   New Code section 523J.11 provides for the removal of the dedication of real property as a pet cemetery by order of the district court. The petition for a removal of dedication shall contain written consent of all persons who purchased or are otherwise entitled to rights of disposal or rights of continuing care of a pet grave. If consent cannot be obtained, upon proof of diligent effort, the court may dispense with the consent and require appropriate consideration be deposited with the court, to be paid to the person whose consent was dispensed with, the personal heirs, or assigns, upon the appropriate proof of claim. The petition may also require an environmental audit, if required by the court, including a plan for the correction or remediation of any environmental problem found, financial, human, and other resource estimates, and projected time schedules for completion of the corrective and remedial actions. The court shall make any order on the petition conditional upon the completion of any corrective and remedial action or upon the deposit with the court of an amount of money determined necessary for completion.
   New Code section 523J.12 requires at least five contiguous acres of real property, inclusive of structures, for a pet cemetery, and provides that the commissioner may grant a waiver of the minimum size limit. A city or municipality may adopt an ordinance requiring more than five acres of contiguous real property for the operation of a pet cemetery.
   New Code section 523J.13 provides that maintenance fees for the pet cemetery may be charged as permanent maintenance endowment fees or as annual maintenance fees. A pet cemetery owner must establish a trust account for the permanent maintenance endowment fees. Annual fees must be billed each calendar year, and upon receipt may be placed in the general account of the business and used for operation and maintenance costs, including salaries. If annual maintenance fees are not paid within 180 days, the disposal rights of a pet owner terminate, and the pet cemetery owner may remove and dispose of the remains by mass cremation or mass burial. Pet owners may prepay annual maintenance fees, and the prepaid fees shall be deposited in the trust fund and withdrawn upon an annual basis, and a statement sent to the pet owner reflecting the withdrawal of the annual amount and the balance of prepaid annual maintenance fees remaining. The owner shall maintain individual records of account for each maintenance fee contract.
   New Code section 523J.14 provides requirements for an endowment fund for each pet cemetery, in the amount of $12,000. Pet cemeteries currently in existence shall establish trust accounts by January 1, 2014, or be granted a waiver by the commissioner, which may extend up to 10 years from the effective date of this bill. New licensees shall establish the trust account prior to accepting any permanent maintenance endowment fees or annual maintenance fees. The trust fund moneys may be invested as set forth in Code chapter 633, with the interest earnings to be used for the maintenance of both occupied and unoccupied lots or spaces, and any remaining interest to be used for costs of access roads, paths, fencing, and general maintenance. Any distribution of the original $12,000 principal shall only occur by order of court, for good cause, and exclusively for the operation and benefit of the pet cemetery. A pet cemetery owned by a not-for-profit corporation may distribute surplus income over million in any manner allowed in the not-for-profit corporation’s articles or bylaws, if the use of the surplus does not endanger the integrity of the trust fund. The commissioner may waive these provisions for a not-for-profit corporation that is a humane society if the commissioner determines that the interests of the pet owners will be adequately protected and the requirements would present a significant hardship to the not-for-profit corporation.
   New Code section 523J.15 requires that a pet disposal form be completed for every deceased pet, which sets out the alternative methods of pet disposal, the costs of each, and the nature of or place each method will be carried out. The form may be completed by a veterinarian or the owner of the deceased pet. Provisions are made by which a veterinarian may complete a form if a pet’s owner is unknown, or if the pet owner refuses to complete a form.
   New Code section 523J.16 provides that disposal of pets shall be in compliance with the pet disposal forms, and that, within 10 days of disposal, a licensee shall give written confirmation of the disposal to the pet owner or veterinarian, attesting to the method, date, and place of disposal. Copies of the forms shall be retained by the licensee and the veterinarian for two years after the disposal. All pet remains shall be buried at least 12 inches below the surface of the ground or in accordance with Code section 167.12 in the case of a large domestic animal.
   New Code section 523J.17 provides exclusions from the trust fund requirements for pet cemeteries that are owned by a licensed veterinarian, located on ground used in agricultural production, do not allow individual burials, do not allow individual grave markers, do not charge a maintenance fee for the care of pet graves, do not make any representations that pet graves will be cared for or that the land is dedicated, and bury less than five animals a year and make no representations that pet graves will be cared for or that the land is dedicated, and do not charge a maintenance fee.
   New Code section 523J.18 provides that owners and operators of pet cemeteries must keep maps and records of specific sites of each pet grave, the grave owner’s last known address, the date of the burial, the size of the grave, the contract for sale of the grave and the pet disposal forms, and complete records of trust accounts. A pet cemetery owner must also clearly inform customers of the option of paying maintenance fees for care of pet graves, including costs and benefits for permanent endowment and annual care maintenance, and provide customers with the hours of business the cemetery will be open to visitors to view pet graves. The section also requires cooperation by the pet cemetery or pet crematorium owners with all reasonable requests of inspectors.
   Finally, the bill amends Code section 167.1 to add the disposal of the remains of pets pursuant to Code chapter 566B to the exclusion from the provisions of Code chapter 167, the use and disposal of dead animals.