Senate Study Bill 3180 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON SENG) A BILL FOR An Act relating to the disposal of companion animal remains, 1 including by providing for the licensure of persons owning 2 or operating companion animal cemeteries and crematoriums, 3 establishing standards and fees, making an appropriation, 4 and providing criminal penalties. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 6134XC (5) 85 da/rj

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 companions are unique 4 and special. These relationships can enrich lives and increase 5 happiness. Even after the death of a companion animal, human 6 attachment to the memory of the companion animal often remains 7 very strong and many people feel the need to memorialize the 8 love felt for the animal by burying the companion animal in 9 a companion animal cemetery. Companion animal cemeteries 10 and their owners and operators have a special responsibility 11 to customers who have entrusted pet remains to them. These 12 companion animal cemeteries have a duty to act in an ethical 13 and lawful manner to prevent grieving companion animal 14 owners from experiencing further emotional pain or financial 15 manipulation. Perpetrations of fraud against grieving 16 companion animal owners are unconscionable. 17 2. The general assembly further finds that the people 18 of this state have a vital interest in the establishment, 19 maintenance, and preservation of companion animal cemeteries 20 and companion animal crematoriums and the proper operation 21 of the businesses and individuals that own and manage the 22 businesses. This chapter is determined to be an exercise of 23 the police powers of this state to protect the well-being of 24 citizens of this state, to promote the public welfare, to 25 promote the health of the public, and to prevent companion 26 animal cemeteries and companion animal crematoriums from 27 falling into disrepair and dilapidation and becoming a burden 28 upon the community. 29 Sec. 2. Section 167.1, Code 2014, is amended to read as 30 follows: 31 167.1 Scope. 32 This chapter shall not apply to licensed slaughterhouses, or 33 to the disposal, by licensed the following: 34 1. Licensed slaughterhouses, of the bodies of animals, or 35 -1- LSB 6134XC (5) 85 da/rj 1/ 28

S.F. _____ any part thereof, slaughtered for human food. 1 2. The disposal of the remains of companion animals pursuant 2 to chapter 523J. 3 Sec. 3. Section 455B.304, Code 2014, is amended by adding 4 the following new subsection: 5 NEW SUBSECTION . 20. The commission shall adopt rules for 6 the disposal of companion animals buried pursuant to chapter 7 523J in consultation with the commissioner of insurance. 8 Sec. 4. NEW SECTION . 523J.1 Definitions. 9 As used in this chapter, unless the context requires 10 otherwise: 11 1. “Commissioner” means the commissioner of insurance or the 12 commissioner’s designee. 13 2. “Companion animal” means any domestic animal that has 14 been adapted or tamed to live under the immediate and permanent 15 care of humans, including but not limited to dogs, cats, 16 horses, rodents, fish, birds, snakes, turtles, lizards, frogs, 17 and rabbits. 18 3. a. “Companion animal cemetery” means any land, place, 19 structure, facility, or building provided by any person for a 20 fee, whether or not for profit, to veterinarians or members 21 of the general public for use, or reservation for use, for 22 the permanent interment or inurnment above or below ground of 23 companion animal remains. 24 b. “Companion animal cemetery” does not include any of the 25 following: 26 (1) Rendering plants regulated pursuant to chapter 189A. 27 (2) A landfill or other disposal facility at which solid 28 waste, or its residue after treatment, is intentionally placed 29 and at which solid waste is required to remain indefinitely, 30 pursuant to chapter 455B. 31 4. “Companion animal cemetery operation and maintenance” 32 means all costs incurred to operate and maintain a companion 33 animal cemetery, including salaries and bonuses for employees, 34 officers, and directors, but shall not include any fines or 35 -2- LSB 6134XC (5) 85 da/rj 2/ 28

S.F. _____ penalties imposed on the companion animal cemetery or its 1 employees, officers, or directors by the commissioner or other 2 agency or court. 3 5. a. “Companion animal crematorium” means any land, place, 4 structure, facility, or building provided by any person for a 5 fee, whether or not for profit, to veterinarians or members 6 of the general public for the cremation of companion animals. 7 However, a companion animal crematorium shall not provide for 8 permanent interment or inurnment of companion animal remains. 9 b. “Companion animal crematorium” does not include a 10 facility designed for resource recovery or infectious medical 11 waste incinerators, both as regulated by chapter 455B. 12 6. a. “Companion animal owner” means the person who is 13 listed as the owner of the companion animal in veterinary 14 records or companion animal cemetery or crematorium records or 15 the person’s agent or employee. 16 b. If a companion animal owner is a minor, a parent or legal 17 guardian of the minor or the parent’s or legal guardian’s agent 18 or employee shall be deemed the companion animal owner for 19 the purposes of the companion animal disposal disclosure form 20 required in section 523J.15. 21 7. “Entombment” means the placement of a companion animal 22 in a grave or tomb. 23 8. “Individual burial” means any of the following: 24 a. The interment of a single companion animal’s remains in 25 a separate grave. 26 b. The interment of more than one companion animal in a 27 grave with the written consent of the companion animal owner. 28 9. “Individual cremation” means the cremation of a single 29 companion animal’s remains in a separate receptacle that allows 30 the companion animal’s cremains to remain separate from the 31 cremains of other companion animals. 32 10. “Inurnment” means the placement of companion animal 33 cremains in a grave, urn, or tomb. 34 11. “Licensee” means a person licensed to engage in the 35 -3- LSB 6134XC (5) 85 da/rj 3/ 28

S.F. _____ business of operating a companion animal cemetery or companion 1 animal crematorium under this chapter. 2 12. “License fee and renewal fee” means the fees required to 3 accompany an application for issuance of any license, including 4 any temporary, apprentice, or renewal license, pursuant to this 5 chapter. 6 13. “Mass burial” means the interment of companion animal 7 remains communally in a grave containing more than one 8 companion animal. 9 14. “Mass cremation” means the cremation of companion 10 animals communally in a receptacle containing more than one 11 companion animal. 12 15. “Veterinarian” means a person licensed to practice the 13 profession of veterinary medicine pursuant to chapter 169. 14 Sec. 5. NEW SECTION . 523J.2 License required. 15 On and after December 1, 2014, a person shall not engage for 16 a fee in the business of operating a companion animal cemetery 17 or companion animal crematorium or represent the person as 18 being able to do so unless the person is licensed pursuant 19 to this chapter. A person licensed in accordance with this 20 chapter may employ individuals to assist in the operation of a 21 companion animal cemetery or companion animal crematorium. 22 Sec. 6. NEW SECTION . 523J.3 Authority to adopt rules —— 23 powers. 24 In addition to specific authority granted elsewhere in 25 this chapter, the commissioner shall adopt administrative 26 rules pursuant to chapter 17A as necessary to administer this 27 chapter, and issue orders as necessary to administer this 28 chapter. The rules shall include but are not limited to doing 29 all of the following: 30 1. Appointing an adequate number of assistants, inspectors, 31 and other employees as may be necessary to administer this 32 chapter, to prescribe duties, and to fix compensation. 33 2. Establishing the form and content of applications 34 for licenses, the procedure for the application process, the 35 -4- LSB 6134XC (5) 85 da/rj 4/ 28

S.F. _____ standards for licensure, and the disciplinary process and 1 penalties for violations of the standards of licensure. 2 3. Investigating applicants and determining their 3 eligibility for licenses under this chapter. 4 4. Keeping records of all licenses issued, suspended, or 5 revoked. 6 5. Providing standards and an enforcement process for 7 operation of a facility for companion animal disposal for a 8 fee, whether by earth burial, entombment, inurnment, cremation, 9 or otherwise, the form and content of companion animal disposal 10 disclosure forms, and registration of disposals by companion 11 animal cemeteries or companion animal crematoriums. 12 6. Entering the office, grounds, and buildings of any 13 companion animal cemetery or companion animal crematorium 14 periodically or upon receiving a complaint to determine 15 compliance with this chapter. Local boards of health shall 16 cooperate, upon the request of the commissioner, by conducting 17 the periodic inspections as well as inspections pursuant to 18 complaints to facilitate the enforcement of this chapter, 19 and the commissioner may delegate authority to a local board 20 to enforce rules and sanctions adopted and imposed by the 21 commissioner. A local board of health shall be compensated for 22 services under this provision at a rate established by rule. 23 The costs of periodic inspections shall not be charged to a 24 licensee. However, the costs of investigations of complaints 25 may be charged to a licensee. 26 7. Conduct a financial audit of all business records, 27 trust fund records, and companion animal disposal disclosure 28 forms for any companion animal cemetery or companion animal 29 crematorium. 30 8. Issue a subpoena for persons or records deemed 31 appropriate to an investigation or any other action taken 32 pursuant to this chapter. 33 9. Providing procedures to regulate, for the protection of 34 consumers, the operation of companion animal cemeteries and 35 -5- LSB 6134XC (5) 85 da/rj 5/ 28

S.F. _____ companion animal crematoriums whose licenses to operate are 1 suspended, revoked, or not renewed. 2 10. Providing standards for the burial or cremation of 3 companion animals in cooperation with the department of natural 4 resources. 5 Sec. 7. NEW SECTION . 523J.4 License —— application. 6 1. A person may make application to the commissioner to 7 obtain a license to engage in the business of operating a 8 companion animal cemetery or companion animal crematorium under 9 this chapter. The application form shall be provided by the 10 commissioner and shall, at a minimum, require the signature of 11 the applicant and that the applicant shall provide all of the 12 following information: 13 a. The name and address of the applicant as follows: 14 (1) If an individual, the name under which the business is 15 to be conducted. 16 (2) If a partnership, the name and business address of each 17 partner, and the name under which business is to be conducted. 18 (3) If a corporation, the name of the corporation and 19 the name and business address of each shareholder of the 20 corporation holding more than ten percent of the total shares. 21 b. The complete address or addresses where the business is 22 to be conducted. 23 c. A summary of all relevant experience of all persons 24 listed in paragraph “a” , in the operation of a cemetery, 25 companion animal cemetery, crematorium, companion animal 26 crematorium, or in the management of funds. 27 d. Satisfactory evidence of good moral character. 28 e. Further information as the commissioner may prescribe by 29 rule. 30 2. The commissioner shall not issue a license to any person 31 if any of the following applies: 32 a. The person had a license to operate a companion animal 33 cemetery or companion animal crematorium suspended or revoked 34 by the commissioner. 35 -6- LSB 6134XC (5) 85 da/rj 6/ 28

S.F. _____ b. The person as been convicted within the last five years 1 of a felony under the laws of this state involving fraud, 2 bribery, perjury, or theft, or has been convicted under the 3 laws of any other state or of the United States of a criminal 4 offense which, if committed and prosecuted in this state, would 5 constitute a similar felony under such laws of this state. 6 3. Any person who has had an application for a license 7 rejected by the commissioner may appeal pursuant to section 8 523J.8. 9 Sec. 8. NEW SECTION . 523J.5 Licenses —— display —— renewal 10 —— duplicates. 11 1. A license issued pursuant to this chapter shall be for 12 a period of two years. 13 2. A license shall not be assignable or transferable except 14 as follows: 15 a. A license to conduct the business of operating a 16 companion animal cemetery or companion animal crematorium 17 issued to an individual may be assigned or transferred for the 18 remainder of the license period to a partnership or corporation 19 if the individual is a member of the partnership or an officer 20 of the corporation at the time of the assignment or transfer. 21 b. A license issued to a partnership may be assigned or 22 transferred for the remainder of the license period to any one 23 member of the partnership, provided the consent of all of the 24 other members of the partnership is obtained. 25 c. A license issued to a corporation may be assigned or 26 transferred for the remainder of the license period to any 27 officer of the corporation, provided the consent of all of the 28 other officers of the corporation is obtained. 29 3. Any application for assignment or transfer of a license 30 must be submitted to the commissioner, accompanied by the 31 documents demonstrating compliance with the requirements 32 of subsection 2. An assignment or transfer shall not be 33 effective until the license has been returned to the assignee 34 or transferee with the commissioner’s approval. Fees are not 35 -7- LSB 6134XC (5) 85 da/rj 7/ 28

S.F. _____ applicable to assignments or transfers of licenses. 1 4. A bona fide purchaser of a business licensed under 2 this chapter may continue to use the license of the seller on 3 a temporary basis from the date of the sale for conducting 4 business as follows: 5 a. The signatures of both the seller and the purchaser and 6 the date of sale are shown on the face of the license. 7 b. Within five days from the date of the sale, the purchaser 8 shall submit an application for a license to conduct the 9 business of operating a companion animal cemetery or companion 10 animal crematorium. 11 c. The seller’s license shall be valid until the purchaser’s 12 license application is either granted or denied by the 13 commissioner. 14 5. A license to conduct the business of operating a 15 companion animal cemetery or companion animal crematorium 16 issued to an individual or to a partnership may be used, on a 17 temporary basis, after the death of the licensed individual or 18 copartner by the next of kin or duly appointed administrator or 19 executor in the name of the estate from the date of death of the 20 licensed individual or copartner as follows: 21 a. The face of the license displays, after the name of the 22 decedent, the word “deceased”, the date of death, and the name 23 of the next of kin, administrator, or executor under whose 24 authority the license is being used. 25 b. Within thirty days of the date of death of the licensee, 26 the next of kin, administrator, or executor shall submit an 27 application for a license to conduct the business of operating 28 a companion animal cemetery or companion animal crematorium. 29 c. Such license shall be valid until the license application 30 of the next of kin, administrator, or executor is either 31 granted or denied by the commissioner. 32 6. A license to conduct the business of operating a 33 companion animal cemetery or companion animal crematorium shall 34 be conspicuously posted upon the premises where the licensee 35 -8- LSB 6134XC (5) 85 da/rj 8/ 28

S.F. _____ is engaged in the business of operating a companion animal 1 cemetery or companion animal crematorium. 2 7. Any license that has not been suspended or revoked may, 3 upon the payment of the renewal fee prescribed by this chapter, 4 be renewed for additional periods of two years, upon the filing 5 of an application for renewal on a form to be prescribed by the 6 commissioner and payment of a renewal fee. 7 a. Any licensee failing to file a renewal application and 8 submit the fee within forty-five days of the expiration of the 9 person’s license under this chapter shall pay an additional fee 10 of sixty dollars. 11 b. Any licensee failing to file a renewal application and 12 submit the fee within ninety days of the expiration of the 13 person’s license under this chapter shall be ineligible for a 14 license until the person shall have again met the requirements 15 of section 523J.4. 16 8. If a license issued under this chapter is lost or 17 destroyed, a licensee may, upon submission of an application 18 and payment of a fee, obtain a duplicate license upon 19 furnishing proof satisfactory to the commissioner that the 20 original license has been lost or destroyed. Each duplicate 21 license shall have the word “duplicate” stamped across the 22 front, and shall bear the same number as the license it 23 replaces. 24 9. A licensee shall give notice in writing to the 25 commissioner within thirty days of any change in address of the 26 business or residence of a licensee. The commissioner shall 27 affix an endorsement on the front of the original license as to 28 the change. A change of address by a licensee without notice 29 to and endorsement by the commissioner shall operate to cancel 30 the license. 31 Sec. 9. NEW SECTION . 523J.6 Fees —— appropriation. 32 1. The fee for a license to engage in the business of 33 operating a companion animal cemetery or companion animal 34 crematorium shall be one hundred fifty dollars. For each 35 -9- LSB 6134XC (5) 85 da/rj 9/ 28

S.F. _____ renewal thereof, the fee shall be one hundred fifty dollars. 1 2. The fee for issuing a duplicate license shall be 2 twenty-five dollars. 3 3. The fee for changing a name or address shall be ten 4 dollars. 5 4. The fees set forth in this section shall be for licenses 6 issued for the license period of two years. A reduction or 7 refund in fees shall not be provided for late renewals or 8 surrender or revocation or suspension of a license. 9 5. A city or county seeking a license to operate a companion 10 animal cemetery or companion animal crematorium shall not be 11 charged any fees. 12 6. Notwithstanding section 8.33, moneys derived from the 13 administration of this chapter shall not revert to the general 14 fund of the state, and are appropriated to the commissioner for 15 administration, licensing, and inspections conducted pursuant 16 to this chapter. 17 Sec. 10. NEW SECTION . 523J.7 Denial of license application 18 —— suspension and revocation of licenses. 19 1. An application for a license under this chapter may be 20 denied or a license to engage in the business of operating a 21 companion animal cemetery or companion animal crematorium may 22 be suspended or revoked by the commissioner for any of the 23 following: 24 a. Fraud or bribery in securing a license. 25 b. The making of any false statement as to a material matter 26 in any application or other statement or certificate required 27 by or pursuant to this chapter. 28 c. Incompetence in the operation of a companion animal 29 cemetery or companion animal crematorium. 30 d. Failure to display a license as provided in this chapter. 31 e. Violation of any provision of this chapter, or of any 32 rule adopted pursuant to this chapter. 33 f. Conviction of a crime involving fraud, theft, perjury, 34 or bribery, or other cause which would permit disqualification 35 -10- LSB 6134XC (5) 85 da/rj 10/ 28

S.F. _____ upon an original application. 1 g. Failure to retain all companion animal disposal 2 disclosure forms for a period of two years following receipt. 3 h. Failure to comply with the duties of an owner or operator 4 of a companion animal crematorium as set out in this chapter. 5 i. Conviction of a violation of chapter 717 or 717B. 6 2. If a license to engage in the business of operating a 7 companion animal cemetery or companion animal crematorium is 8 revoked, the license shall not be reinstated or reissued until 9 after the expiration of a period of five years from the date of 10 the revocation, and only upon approval of the commissioner of a 11 license application pursuant to section 523J.4. 12 Sec. 11. NEW SECTION . 523J.8 Administrative actions. 13 A license suspension or revocation, or the imposition of a 14 penalty or reprimand, shall not be imposed until after final 15 agency action and judicial review pursuant to chapter 17A. 16 Sec. 12. NEW SECTION . 523J.9 Violations —— penalties. 17 1. If an audit or investigation provides reasonable 18 evidence that a person has violated this chapter, or any rule 19 adopted pursuant to this chapter, the commissioner may issue an 20 order directed at the person to cease and desist from engaging 21 in such act or practice. In addition to any other penalty, 22 the commissioner may direct a licensee to pay the reasonable 23 costs of investigation of any complaint filed pursuant to this 24 chapter, unless the commissioner determines the complaint to be 25 totally without merit. 26 2. a. The commissioner shall notify the attorney general 27 if the commissioner finds that a business operated subject 28 to regulation under this chapter meets any grounds for the 29 establishment of a receivership which includes any of the 30 following: 31 (1) Insolvency. 32 (2) The use of trust funds for personal or business purposes 33 in a manner inconsistent with the requirements of this chapter, 34 if the amount of funds currently held in the trust is less than 35 -11- LSB 6134XC (5) 85 da/rj 11/ 28

S.F. _____ the amount required by this chapter. 1 b. The commissioner or the attorney general may apply to the 2 district court in any county of the state for a receivership. 3 Upon proof of any of the grounds for a receivership described 4 in this section, the court may grant a receivership. 5 3. The commissioner or the attorney general may apply to 6 the district court for an injunction to restrain any licensee 7 subject to this chapter and any agents, employees, trustees, 8 or associates of the licensee from engaging in conduct or 9 practices deemed a violation of this chapter or rules adopted 10 pursuant to this chapter. Upon proof of a violation of this 11 chapter described in the petition for injunction, the court may 12 grant the injunction. The commissioner or the attorney general 13 shall not be required to post a bond. Failure to obey a court 14 order under this subsection constitutes contempt of court. 15 4. A licensee who violates a provision of this chapter after 16 notice to cease and desist, or who continues to engage in the 17 business of operating a companion animal cemetery or companion 18 animal crematorium after having had the person’s license 19 suspended or revoked, or who, without a license to engage 20 in the business of operating a companion animal cemetery or 21 companion animal crematorium, directly or indirectly employs, 22 permits, or authorizes an unlicensed person to engage in the 23 business of operating a companion animal cemetery or companion 24 animal crematorium, shall upon conviction for the first offense 25 be guilty of a serious misdemeanor. If the conviction is for a 26 subsequent offense committed after the first conviction under 27 this chapter, such person shall be guilty of an aggravated 28 misdemeanor. Each violation of this chapter shall be deemed a 29 separate offense. 30 5. The commissioner or the attorney general may include the 31 costs of investigation in any request for restitution made to a 32 court hearing a criminal action brought pursuant to a violation 33 of this chapter. 34 Sec. 13. NEW SECTION . 523J.10 Dedication of real property 35 -12- LSB 6134XC (5) 85 da/rj 12/ 28

S.F. _____ for companion animal cemetery purposes. 1 1. The owner of any real property used or to be used for 2 a companion animal cemetery shall file, or cause to be filed, 3 in the office of the county recorder of the county in which 4 the real property is located, a dedication restricting the 5 real property to be used only for purposes as are usual and 6 customary for the operation of a companion animal cemetery. 7 The owner of the real property shall additionally file a 8 certified copy of the dedication, together with notation of the 9 date, time, book, and page of filing by the county recorder 10 with the commissioner. The filing with the commissioner shall 11 additionally include a copy of a survey map and appropriate 12 zoning approvals as may be reasonably required by the 13 commissioner. 14 2. The owner or operator of each companion animal cemetery 15 shall keep adequate records of all purchasers of space for 16 companion animal remains within the grounds of such companion 17 animal cemetery. 18 Sec. 14. NEW SECTION . 523J.11 Removal of dedication of real 19 property. 20 1. A dedication restricting real property for the operation 21 of a companion animal cemetery may only be amended or removed 22 by order of the district court of the county where the 23 companion animal cemetery is located. A petition for amendment 24 or removal of dedication shall include written consent by all 25 persons who purchased or otherwise are entitled to rights of 26 disposal or rights to continuing care of a companion animal 27 grave in that portion of the companion animal cemetery for 28 which the dedication is sought to be amended or removed. 29 If the portion of the companion animal cemetery for which 30 the dedication is sought to be amended or removed includes 31 companion animal remains, the companion animal remains must be 32 removed, upon the written consent of all persons who purchased 33 or are otherwise entitled to rights of disposal or rights 34 to continuing care of a companion animal grave, their heirs 35 -13- LSB 6134XC (5) 85 da/rj 13/ 28

S.F. _____ or assigns, with the removal to be entirely at the cost of 1 the owner of the companion animal cemetery. The court, upon 2 proof of diligent efforts and as determined by the court, 3 may dispense with the written consent of any person who 4 purchased or is otherwise entitled to rights of disposal whose 5 whereabouts, identity, or heirs or assigns are unknown. If the 6 court has dispensed with any person’s written consent under 7 this section, the court may make a determination as to the 8 consideration appropriate for such consent and order that the 9 consideration be deposited with the court. The consideration 10 shall be paid to such person upon appropriate proof of claim. 11 The court shall proceed according to the provisions of chapter 12 556 in regard to unclaimed consideration. 13 2. The petition for amendment or removal of dedication 14 may additionally include an environmental audit if required 15 by the court, which shall identify any environmental problems 16 caused by the companion animal cemetery activity, including 17 an identification of companion animal disposal sites. If the 18 environmental audit identifies any environmental problem, a 19 plan for the correction or remediation of such problems shall 20 be included, including financial, human, and other resource 21 estimates, and projected time schedules for the completion of 22 the corrective and remedial actions, with the court to make any 23 order on the petition conditional upon the completion of any 24 corrective and remedial action or upon the deposit with the 25 court of an amount of money determined necessary to complete 26 the remediation or correction. 27 Sec. 15. NEW SECTION . 523J.12 Area requirements. 28 A companion animal cemetery that commences operations on or 29 after the effective date of this Act and that provides for the 30 permanent interment of companion animals shall consist of not 31 less than five contiguous acres of real property in total area, 32 inclusive of any structures, facilities, or buildings situated 33 on the real property and used for the business purposes of the 34 companion animal cemetery. The commissioner may grant a waiver 35 -14- LSB 6134XC (5) 85 da/rj 14/ 28

S.F. _____ of the minimum size limit based on factors including the number 1 of aboveground entombments, the number of remains buried, and 2 the nature of the surrounding community. A city or county may 3 adopt a local ordinance that provides for an area requirement 4 greater than five contiguous acres of real property. 5 Sec. 16. NEW SECTION . 523J.13 Maintenance fees. 6 1. A companion animal cemetery owner may charge a companion 7 animal owner a permanent maintenance endowment fee for the care 8 of the companion animal cemetery. Any permanent maintenance 9 endowment fee paid shall be placed by the companion animal 10 cemetery owner into a permanent maintenance endowment care or 11 similar trust fund. 12 2. In lieu of a permanent maintenance endowment fee, the 13 companion animal cemetery owner and a companion animal owner 14 may enter into a contract for care of the companion animal 15 cemetery on an annual basis. The companion animal owner shall 16 then be charged an annual maintenance fee. Only one contract 17 for annual maintenance shall be entered into per gravesite. 18 The contract shall state specifically the amount of the annual 19 maintenance fee. The contract shall also state that failure 20 to pay the annual fee can result in the disinterment of the 21 companion animal. 22 a. The annual maintenance fee, billed each calendar year, 23 shall be deposited by the companion animal cemetery owner in 24 the general account of the companion animal cemetery to be used 25 for companion animal cemetery operation and maintenance during 26 the succeeding years. 27 b. If the annual maintenance fee is not paid within ninety 28 days of the date due, the companion animal cemetery owner shall 29 notify the companion animal owner in writing that such fee is 30 due and payable. If such annual maintenance fee is not paid 31 within ninety days of the notice, the disposal rights or rights 32 to continuing care of a companion animal grave of the companion 33 animal owner shall terminate. 34 c. If the annual maintenance fee is not paid within one 35 -15- LSB 6134XC (5) 85 da/rj 15/ 28

S.F. _____ hundred eighty days of the date it is due, the disposal rights 1 of a companion animal owner shall terminate and the companion 2 animal cemetery owner may at any time thereafter remove the 3 companion animal remains and if removed dispose of remains by 4 mass cremation or mass burial. 5 d. A companion animal owner may prepay annual maintenance 6 fees for any number of years in advance. Prepaid annual 7 maintenance fees shall be deposited in the manner of permanent 8 maintenance endowment fees, and an annual statement shall be 9 sent to the companion animal owner reflecting the withdrawal of 10 the annual maintenance fee and the balance of prepaid annual 11 maintenance fees remaining. 12 e. The companion animal cemetery owner shall maintain 13 individual records of account for each permanent maintenance 14 endowment fee and each annual maintenance fee contract pursuant 15 to section 523J.13, and shall make the records accessible to 16 the commissioner pursuant to section 523J.3. 17 Sec. 17. NEW SECTION . 523J.14 Endowment care —— trust 18 funds. 19 1. A companion animal cemetery that commenced operations 20 prior to the effective date of this Act shall establish an 21 endowment care or similar trust fund, the balance of which 22 shall not be less than twelve thousand dollars, by January 1, 23 2015. The commissioner may grant a waiver to this requirement 24 if an endowment care or similar trust fund is established 25 and twelve thousand dollars is placed in such fund within 26 a reasonable amount of time not to exceed ten years from 27 the effective date of this Act, and if the provisions of 28 this section would otherwise present a significant financial 29 hardship to the owner or operator. 30 2. A companion animal cemetery that commences operations 31 on or after the effective date of this Act shall, prior to the 32 acceptance of any moneys as permanent maintenance endowment 33 fees or annual maintenance fees, establish an endowment care or 34 similar trust fund for the permanent operation and maintenance 35 -16- LSB 6134XC (5) 85 da/rj 16/ 28

S.F. _____ of the companion animal cemetery, in an amount of not less than 1 twelve thousand dollars. 2 3. The fiduciary holding such endowment care or similar 3 trust fund shall have such power to invest the moneys in the 4 fund as set forth in chapter 633. The interest earnings of 5 such an endowment care fund shall be used for the maintenance 6 of both occupied and unoccupied lots or spaces. Any remaining 7 interest may be used for costs of access roads and paths, 8 fencing, and general maintenance of the companion animal 9 cemetery. 10 4. Any distribution of the original twelve thousand dollar 11 principal of such an endowment care or similar trust fund shall 12 only be upon order of the district court of the county where 13 the companion animal cemetery is located, for good cause, and 14 exclusively for the operation and benefit of such companion 15 animal cemetery. Unless such distribution of principal shall 16 be as part of a removal of dedication for the companion animal 17 cemetery, the court order shall additionally make adequate 18 provision for the permanent maintenance of the companion animal 19 cemetery. 20 5. A companion animal cemetery owned and operated by a 21 not-for-profit corporation that has in excess of one million 22 dollars in its endowment care or similar trust fund may use any 23 surplus income in the trust fund above and beyond its costs 24 for companion animal cemetery operation and maintenance in any 25 manner allowed by the not-for-profit corporation’s articles or 26 bylaws, provided that the use of such surplus does not endanger 27 the integrity of the trust fund. 28 6. A companion animal cemetery owned and operated by a 29 not-for-profit corporation that is a humane society may be 30 granted a waiver of the provisions of this section by the 31 commissioner if the commissioner determines that the interests 32 of the companion animal owners will be adequately protected and 33 the provisions of this section present a significant financial 34 hardship to the humane society. 35 -17- LSB 6134XC (5) 85 da/rj 17/ 28

S.F. _____ 7. A trust fund is not invalid by reason of any 1 indefiniteness or uncertainty of the persons designated as 2 beneficiaries, and such trust funds shall not be invalid as 3 violating any existing rule against perpetuities. 4 Sec. 18. NEW SECTION . 523J.15 Companion animal disposal 5 disclosure forms. 6 1. A person who gives a veterinarian, a companion animal 7 cemetery owner, or companion animal crematorium owner a 8 companion animal for disposal shall be provided by the 9 veterinarian, companion animal cemetery owner, or companion 10 animal crematorium owner with a companion animal disposal 11 disclosure form, as approved by the commissioner, which shall 12 set forth the alternative methods of companion animal disposal, 13 the cost of each method of companion animal disposal, if 14 available, and the nature of or place in which each method of 15 disposal will be carried out. The veterinarian, companion 16 animal cemetery owner, or companion animal crematorium owner, 17 as the case may be, shall give to the person who completes the 18 form a copy of the form and retain a copy of the completed 19 form. If the person completing the form chooses to have the 20 companion animal disposed of by a companion animal cemetery 21 or companion animal crematorium and makes the arrangements 22 for disposal through a veterinarian, the veterinarian shall 23 provide the person with the name, location, and telephone 24 number of the companion animal cemetery or companion animal 25 crematorium so that the person may obtain information about 26 the companion animal cemetery or companion animal crematorium. 27 The veterinarian shall also ensure that a copy of the form 28 accompanies the deceased companion animal when the deceased 29 companion animal is removed from the veterinarian’s office. 30 2. A veterinarian or companion animal cemetery operator 31 may complete a companion animal disposal disclosure form with 32 the oral consent of the companion animal owner. Such oral 33 consent shall be witnessed and a record of such consent and 34 the completed form shall be retained in the veterinarian’s or 35 -18- LSB 6134XC (5) 85 da/rj 18/ 28

S.F. _____ companion animal cemetery’s or companion animal crematorium’s 1 records. A copy of such completed form shall be sent to the 2 companion animal owner. 3 3. If a companion animal owner is unwilling or unable to 4 complete a companion animal disposal form, a veterinarian 5 may complete the disclosure form if two attempts are made to 6 contact the companion animal owner. At least one such attempt 7 shall be made in writing and sent by first-class mail. If the 8 veterinarian completes the form without the consent of the 9 companion animal owner, a copy of the completed form shall be 10 retained by the veterinarian along with the records of the 11 attempts to contact the companion animal owner. 12 4. A companion animal disposal disclosure form shall not be 13 required if any of the following apply: 14 a. The companion animal owner cannot be identified. 15 b. The companion animal remains originate with a city or 16 county. 17 c. The companion animal is abandoned pursuant to section 18 162.19. 19 d. The companion animal is to be disposed of without charge 20 to the companion animal owner. 21 Sec. 19. NEW SECTION . 523J.16 Disposal —— compliance. 22 1. A companion animal cemetery owner or companion animal 23 crematorium owner shall dispose of a companion animal in 24 compliance with a companion animal disposal disclosure form 25 completed by a companion animal owner or veterinarian. 26 2. The companion animal cemetery owner or companion 27 animal crematorium owner shall, within ten days of disposal 28 by individual cremation or individual burial, send or give 29 a written confirmation of such disposal to the companion 30 animal owner or veterinarian, depending on instructions in the 31 companion animal disposal disclosure form, and shall attest to 32 the method, date, and place of disposal. If a companion animal 33 is disposed of either through mass cremation or mass burial, no 34 written confirmation shall be required. 35 -19- LSB 6134XC (5) 85 da/rj 19/ 28