SSB 3180 (LSB 6134XC (5) 85)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON SENG)

A BILL FOR

An Act relating to the disposal of companion animal remains, including by providing for the licensure of persons owning or operating companion animal cemeteries and crematoriums, establishing standards and fees, making an appropriation, and providing 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 companions are unique and special. These relationships can enrich lives and increase happiness. Even after the death of a companion animal, human attachment to the memory of the companion animal often remains very strong and many people feel the need to memorialize the love felt for the animal by burying the companion animal in a companion animal cemetery. Companion animal cemeteries and their owners and operators have a special responsibility to customers who have entrusted pet remains to them. These companion animal cemeteries have a duty to act in an ethical and lawful manner to prevent grieving companion animal owners from experiencing further emotional pain or financial manipulation. Perpetrations of fraud against grieving companion animal 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 companion animal cemeteries and companion animal crematoriums and the proper operation of the businesses and individuals that own and manage the businesses. 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 companion animal cemeteries and companion animal crematoriums from falling into disrepair and dilapidation and becoming a burden upon the community.
    Sec. 2.  Section 167.1, Code 2014, 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 companion animals pursuant to chapter 523J.
    Sec. 3.  Section 455B.304, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  20.  The commission shall adopt rules for the disposal of companion animals buried pursuant to chapter 523J in consultation with the commissioner of insurance. 
    Sec. 4.  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.  “Companion animal” means any domestic animal that has been adapted or tamed to live under the immediate and permanent care of humans, including but not limited to dogs, cats, horses, rodents, fish, birds, snakes, turtles, lizards, frogs, and rabbits.
   3.  a.  “Companion animal 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 companion animal remains.
   b.  “Companion animal cemetery” does not include any of the following:
   (1)  Rendering plants regulated pursuant to chapter 189A.
   (2)  A landfill or other disposal facility at which solid waste, or its residue after treatment, is intentionally placed and at which solid waste is required to remain indefinitely, pursuant to chapter 455B.
   4.  “Companion animal cemetery operation and maintenance” means all costs incurred to operate and maintain a companion animal cemetery, including salaries and bonuses for employees, officers, and directors, but shall not include any fines or penalties imposed on the companion animal cemetery or its employees, officers, or directors by the commissioner or other agency or court.
   5.  a.  “Companion animal 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 companion animals. However, a companion animal crematorium shall not provide for permanent interment or inurnment of companion animal remains.
   b.  “Companion animal crematorium” does not include a facility designed for resource recovery or infectious medical waste incinerators, both as regulated by chapter 455B.
   6.  a.  “Companion animal owner” means the person who is listed as the owner of the companion animal in veterinary records or companion animal cemetery or crematorium records or the person’s agent or employee.
   b.  If a companion animal 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 companion animal owner for the purposes of the companion animal disposal disclosure form required in section 523J.15.
   7.  “Entombment” means the placement of a companion animal in a grave or tomb.
   8.  “Individual burial” means any of the following:
   a.  The interment of a single companion animal’s remains in a separate grave.
   b.  The interment of more than one companion animal in a grave with the written consent of the companion animal owner.
   9.  “Individual cremation” means the cremation of a single companion animal’s remains in a separate receptacle that allows the companion animal’s cremains to remain separate from the cremains of other companion animals.
   10.  “Inurnment” means the placement of companion animal cremains in a grave, urn, or tomb.
   11.  “Licensee” means a person licensed to engage in the business of operating a companion animal cemetery or companion animal crematorium under this chapter.
   12.  “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.
   13.  “Mass burial” means the interment of companion animal remains communally in a grave containing more than one companion animal.
   14.  “Mass cremation” means the cremation of companion animals communally in a receptacle containing more than one companion animal.
   15.  “Veterinarian” means a person licensed to practice the profession of veterinary medicine pursuant to chapter 169.
    Sec. 5.  NEW SECTION.  523J.2  License required.

   On and after December 1, 2014, a person shall not engage for a fee in the business of operating a companion animal cemetery or companion animal 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 companion animal cemetery or companion animal crematorium.
    Sec. 6.  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 necessary to administer this chapter, and issue orders as necessary to administer this chapter. The rules shall include but are not limited to doing all of the following:

   1.  Appointing 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.  Establishing 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.  Investigating applicants and determining their eligibility for licenses under this chapter.
   4.  Keeping records of all licenses issued, suspended, or revoked.
   5.  Providing standards and an enforcement process for operation of a facility for companion animal disposal for a fee, whether by earth burial, entombment, inurnment, cremation, or otherwise, the form and content of companion animal disposal disclosure forms, and registration of disposals by companion animal cemeteries or companion animal crematoriums.
   6.  Entering the office, grounds, and buildings of any companion animal cemetery or companion animal crematorium periodically or upon receiving a complaint to determine compliance with this chapter. Local boards of health shall cooperate, upon the request of the commissioner, by 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. A local board of health 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.  Conduct a financial audit of all business records, trust fund records, and companion animal disposal disclosure forms for any companion animal cemetery or companion animal crematorium.
   8.  Issue a subpoena for persons or records deemed appropriate to an investigation or any other action taken pursuant to this chapter.
   9.  Providing procedures to regulate, for the protection of consumers, the operation of companion animal cemeteries and companion animal crematoriums whose licenses to operate are suspended, revoked, or not renewed.
   10.  Providing standards for the burial or cremation of companion animals in cooperation with the department of natural resources.
    Sec. 7.  NEW SECTION.  523J.4  License —— application.
   1.  A person may make application to the commissioner to obtain a license to engage in the business of operating a companion animal cemetery or companion animal 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 shareholder of the corporation holding more than ten percent of the total shares.
   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, companion animal cemetery, crematorium, companion animal 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 if any of the following applies:
   a.  The person had a license to operate a companion animal cemetery or companion animal crematorium suspended or revoked by the commissioner.
   b.  The person as 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. 8.  NEW SECTION.  523J.5  Licenses —— display —— renewal —— duplicates.
   1.  A license 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 companion animal cemetery or companion animal 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 assignment or transfer 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 assignments or 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 companion animal cemetery or companion animal 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 companion animal cemetery or companion animal 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 companion animal cemetery or companion animal 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 companion animal cemetery or companion animal crematorium shall be conspicuously posted upon the premises where the licensee is engaged in the business of operating a companion animal cemetery or companion animal 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. 9.  NEW SECTION.  523J.6  Fees —— appropriation.
   1.  The fee for a license to engage in the business of operating a companion animal cemetery or companion animal 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 city or county seeking a license to operate a companion animal cemetery or companion animal 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. 10.  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 companion animal cemetery or companion animal crematorium may be suspended or revoked by the commissioner for any of the following:
   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 companion animal cemetery or companion animal 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 companion animal disposal disclosure forms for a period of two years following receipt.
   h.  Failure to comply with the duties of an owner or operator of a companion animal crematorium as set out in this chapter.
   i.  Conviction of a violation of chapter 717 or 717B.
   2.  If a license to engage in the business of operating a companion animal cemetery or companion animal 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. 11.  NEW SECTION.  523J.8  Administrative actions.

   A license suspension or revocation, or the imposition of a penalty or reprimand, shall not be imposed until after final agency action and judicial review pursuant to chapter 17A.
    Sec. 12.  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 any grounds for the establishment of a receivership which includes any of the following:
   (1)  Insolvency.
   (2)  The use of trust funds for personal or business purposes in a manner inconsistent with the requirements of this chapter, if 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 a 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 a provision of this chapter after notice to cease and desist, or who continues to engage in the business of operating a companion animal cemetery or companion animal crematorium after having had the person’s license suspended or revoked, or who, without a license to engage in the business of operating a companion animal cemetery or companion animal crematorium, directly or indirectly employs, permits, or authorizes an unlicensed person to engage in the business of operating a companion animal cemetery or companion animal 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. 13.  NEW SECTION.  523J.10  Dedication of real property for companion animal cemetery purposes.
   1.  The owner of any real property used or to be used for a companion animal 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 companion animal 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 each companion animal cemetery shall keep adequate records of all purchasers of space for companion animal remains within the grounds of such companion animal cemetery.
    Sec. 14.  NEW SECTION.  523J.11  Removal of dedication of real property.
   1.  A dedication restricting real property for the operation of a companion animal cemetery may only be amended or removed by order of the district court of the county where the companion animal 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 companion animal grave in that portion of the companion animal cemetery for which the dedication is sought to be amended or removed. If the portion of the companion animal cemetery for which the dedication is sought to be amended or removed includes companion animal remains, the companion animal 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 companion animal grave, their heirs or assigns, with the removal to be entirely at the cost of the owner of the companion animal 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 companion animal cemetery activity, including an identification of companion animal 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. 15.  NEW SECTION.  523J.12  Area requirements.

   A companion animal cemetery that commences operations on or after the effective date of this Act and that provides for the permanent interment of companion animals shall consist of not less than five contiguous acres of real property in total area, inclusive of any structures, facilities, or buildings situated on the real property and used for the business purposes of the companion animal 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 county may adopt a local ordinance that provides for an area requirement greater than five contiguous acres of real property.
    Sec. 16.  NEW SECTION.  523J.13  Maintenance fees.
   1.  A companion animal cemetery owner may charge a companion animal owner a permanent maintenance endowment fee for the care of the companion animal cemetery. Any permanent maintenance endowment fee paid shall be placed by the companion animal cemetery owner into a permanent maintenance endowment care or similar trust fund.
   2.  In lieu of a permanent maintenance endowment fee, the companion animal cemetery owner and a companion animal owner may enter into a contract for care of the companion animal cemetery on an annual basis. The companion animal 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 companion animal.
   a.  The annual maintenance fee, billed each calendar year, shall be deposited by the companion animal cemetery owner in the general account of the companion animal cemetery to be used for companion animal cemetery operation and maintenance during the succeeding years. 
   b.  If the annual maintenance fee is not paid within ninety days of the date due, the companion animal cemetery owner shall notify the companion animal 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 companion animal grave of the companion animal 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 companion animal owner shall terminate and the companion animal cemetery owner may at any time thereafter remove the companion animal remains and if removed dispose of remains by mass cremation or mass burial.
   d.  A companion animal 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 to the companion animal owner reflecting the withdrawal of the annual maintenance fee and the balance of prepaid annual maintenance fees remaining.
   e.  The companion animal cemetery owner shall maintain individual records of account for each permanent maintenance endowment fee and each annual maintenance fee contract pursuant to section 523J.13, and shall make the records accessible to the commissioner pursuant to section 523J.3.
    Sec. 17.  NEW SECTION.  523J.14  Endowment care —— trust funds.
   1.  A companion animal 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, 2015. 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 would otherwise present a significant financial hardship to the owner or operator.
   2.  A companion animal 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 companion animal 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 companion animal 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 companion animal cemetery is located, for good cause, and exclusively for the operation and benefit of such companion animal cemetery. Unless such distribution of principal shall be as part of a removal of dedication for the companion animal cemetery, the court order shall additionally make adequate provision for the permanent maintenance of the companion animal cemetery.
   5.  A companion animal 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 companion animal 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 companion animal 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 companion animal owners will be adequately protected and the provisions of this section present a significant financial hardship to the humane society.
   7.  A trust fund is 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. 18.  NEW SECTION.  523J.15  Companion animal disposal disclosure forms.
   1.  A person who gives a veterinarian, a companion animal cemetery owner, or companion animal crematorium owner a companion animal for disposal shall be provided by the veterinarian, companion animal cemetery owner, or companion animal crematorium owner with a companion animal disposal disclosure form, as approved by the commissioner, which shall set forth the alternative methods of companion animal disposal, the cost of each method of companion animal disposal, if available, and the nature of or place in which each method of disposal will be carried out. The veterinarian, companion animal cemetery owner, or companion animal 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 companion animal disposed of by a companion animal cemetery or companion animal 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 companion animal cemetery or companion animal crematorium so that the person may obtain information about the companion animal cemetery or companion animal crematorium. The veterinarian shall also ensure that a copy of the form accompanies the deceased companion animal when the deceased companion animal is removed from the veterinarian’s office.
   2.  A veterinarian or companion animal cemetery operator may complete a companion animal disposal disclosure form with the oral consent of the companion animal owner. Such oral consent shall be witnessed and a record of such consent and the completed form shall be retained in the veterinarian’s or companion animal cemetery’s or companion animal crematorium’s records. A copy of such completed form shall be sent to the companion animal owner.
   3.  If a companion animal owner is unwilling or unable to complete a companion animal disposal form, a veterinarian may complete the disclosure form if two attempts are made to contact the companion animal owner. At least one such attempt shall be made in writing and sent by first-class mail. If the veterinarian completes the form without the consent of the companion animal owner, a copy of the completed form shall be retained by the veterinarian along with the records of the attempts to contact the companion animal owner.
   4.  A companion animal disposal disclosure form shall not be required if any of the following apply:
   a.  The companion animal owner cannot be identified.
   b.  The companion animal remains originate with a city or county.
   c.  The companion animal is abandoned pursuant to section 162.19.
   d.  The companion animal is to be disposed of without charge to the companion animal owner.
    Sec. 19.  NEW SECTION.  523J.16  Disposal —— compliance.
   1.  A companion animal cemetery owner or companion animal crematorium owner shall dispose of a companion animal in compliance with a companion animal disposal disclosure form completed by a companion animal owner or veterinarian.
   2.  The companion animal cemetery owner or companion animal crematorium owner shall, within ten days of disposal by individual cremation or individual burial, send or give a written confirmation of such disposal to the companion animal owner or veterinarian, depending on instructions in the companion animal disposal disclosure form, and shall attest to the method, date, and place of disposal. If a companion animal is disposed of either through mass cremation or mass burial, no written confirmation shall be required. 
   3.  Copies of all forms shall be retained by the companion animal cemetery owner or companion animal crematorium owner and by the veterinarian for a period of two years after disposal.
   4.  a.  The companion animal remains shall be buried at least one foot below the surface of the ground.
   b.  Notwithstanding paragraph “a”, a companion animal weighing more than eighty pounds but less than two hundred pounds shall be buried at least four feet below the surface of the ground and a companion animal weighing two hundred pounds or more shall be buried at least six feet below the surface of the ground.
    Sec. 20.  NEW SECTION.  523J.17  Exclusions.

   A companion animal cemetery shall be exempt from the trust fund provisions of section 523J.14, the dedication provisions of sections 523J.10 and 523J.11, and the area requirement of section 523J.12, if any of the following applies:

   1.  It is owned by a licensed veterinarian.
   2.  It is located on land used in agricultural production.
   3.  It does not allow individual burials.
   4.  It does not allow individual grave markers.
   5.  It does not charge a maintenance fee for the care of companion animal graves.
   6.  It does not make a representation that companion animal graves will be cared for or that the land is dedicated.
   7.  It buries less than five companion animals a year, makes no representation that the companion animal graves will be cared for or that the land is dedicated, and does not charge a maintenance fee for the care of the companion animal graves.
    Sec. 21.  NEW SECTION.  523J.18  Duties.
   1.  An owner or operator of a companion animal cemetery shall do all of the following:
   a.  Keep permanently maps and records containing the specific site of each companion animal 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 companion animal disposal disclosure forms.
   b.  Keep complete records of the names of trustees of any trust accounts and complete records of all trust fund moneys.
   c.  Clearly inform customers of the option of paying maintenance fees for care of companion animal graves, including costs and benefits for permanent care for companion animal graves and annual care for companion animal graves.
   d.  Cooperate with all reasonable requests of inspectors appointed by the commissioner to inspect companion animal cemeteries and companion animal crematoriums.
   e.  Provide notice to customers about hours that the companion animal cemetery will be open to visitors to view companion animal graves.
   2.  The provisions of subsection 1 shall apply only to individual burials.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   GENERAL. This bill provides for the disposal of the remains of companion animals by burial or cremation and regulates persons engaged in the business of operating cemeteries or crematoriums which perform these services. The bill’s provisions are administered by the commissioner of insurance (commissioner).
   LEGISLATIVE FINDINGS. The bill makes legislative findings regarding the importance of the relationship of companion animals to humans, and the need for protection of companion animals from unconscionable acts on the part of persons in the business of providing for the disposal of the remains of deceased companion animals. The bill creates new Code chapter 523J.
   DEFINITIONS. The bill provides definitions to be used in the new Code chapter. It defines terms related to the business of disposal of companion animal remains, such as “entombment”, which means the placement of a companion animal in a grave or tomb; “inurnment”, meaning the placement of companion animal cremains in a grave, urn, or tomb; and general terms, such as “companion animal”, meaning any domestic animal that had been adapted or tamed to live under the immediate and permanent care of humans, including but not limited to dogs, cats, horses, rodents, fish, birds, snakes, turtles, lizards, frogs, and rabbits; and “companion animal 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 companion animal remains (new Code section 523J.1). 
   LICENSE. The bill provides that a license is required for a person to engage for a fee in the business of operating a companion animal cemetery or companion animal crematorium (new Code section 523J.2).
   COMMISSIONER’S AUTHORITY. The bill 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 companion animal cemeteries and companion animal crematoriums, subpoena records, provide procedures to protect consumers when a license to operate a facility is suspended, revoked, or not renewed, and establish standards for burial and cremation in cooperation with the department of natural resources (new Code section 523J.3).
   OPERATION BY LICENSEES. The bill provides requirements for application for licensure to conduct the business of operating a companion animal cemetery or companion animal crematorium (new Code section 523J.4). It 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.5).
   LICENSE FEE. The bill 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 city or county seeking a license to operate a companion animal cemetery or companion animal crematorium cannot be charged a fee. The moneys collected from the fees are appropriated to the commissioner to pay for expenses of administration, licensing, and inspections (new Code section 523J.6).
   ADMINISTRATIVE ACTIONS. The bill 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 companion animal disposal disclosure forms, failure to comply with the duties of an owner or operator of a companion animal cemetery or companion animal crematorium, or conviction of a violation of Code chapter 717 or Code chapter 717B 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 (new Code section 523J.7).
   ADMINISTRATIVE ACTION —— PENALTIES. The bill requires that a license suspension or revocation, or the imposition of a penalty or reprimand, cannot be imposed until after a contested case proceeding and judicial review pursuant to Code chapter 17A (new Code section 523J.8).
   The bill provides penalties for violations by a licensee, including an order to cease and desist. The commissioner must 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 bill. 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 bill. A licensee who persists in the violation after notice to cease and desist, or after a license is suspended or revoked, is upon conviction for a first offense guilty of a serious misdemeanor. If the conviction is for a subsequent offense, the person is guilty of an aggravated misdemeanor (new Code section 523J.9). 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.
   DEDICATION. The bill provides for the dedication of real property for a companion animal cemetery, by the filing by the owner of any real property of a document restricting the real property to use only as a companion animal cemetery. The owner of any such companion animal cemetery is required to keep adequate records of purchasers of space for companion animal remains within the companion animal cemetery (new Code section 523J.10).
   REMOVAL OF DEDICATION. The bill provides for the removal of the dedication of real property as a companion animal cemetery by order of the district court. The petition for a removal of dedication must contain written consent of all persons who purchased or are otherwise entitled to rights of disposal or rights of continuing care of a companion animal 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 must 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.11).
   MINIMUM ACRES FOR COMPANION ANIMAL CEMETERY. The bill requires at least five contiguous acres of real property, inclusive of structures, for a companion animal cemetery, and provides that the commissioner may grant a waiver of the minimum size limit. A city or county may adopt an ordinance requiring more than five acres of contiguous real property for the operation of a companion animal cemetery (new Code Section 523J.12).
   MAINTENANCE. The bill provides that maintenance fees for the companion animal cemetery may be charged as permanent maintenance endowment fees or as annual maintenance fees. A companion animal cemetery owner must establish a trust account for the permanent maintenance endowment fees. The 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 companion animal owner terminate, and the companion animal cemetery owner may remove and dispose of the remains by mass cremation or mass burial. A companion animal owner may prepay annual maintenance fees, and the prepaid fees are to be deposited in the trust fund and withdrawn upon an annual basis, and a statement sent to the companion animal owner reflecting the withdrawal of the annual amount and the balance of prepaid annual maintenance fees remaining. The companion animal owner must maintain individual records of account for each maintenance fee contract (new Code section 523J.13).
   ENDOWMENT FUND. The bill provides requirements for an endowment fund for each companion animal cemetery, in the amount of $12,000. A companion animal cemetery currently in existence must establish trust accounts by January 1, 2015, or be granted a waiver by the commissioner, which may extend up to 10 years from the effective date of this bill. New licensees must establish the trust fund 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 must only occur by order of district court, for good cause, and exclusively for the operation and benefit of the companion animal cemetery. A companion animal cemetery owned by a not-for-profit corporation may distribute surplus funds over $1 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 companion animal owners will be adequately protected and the requirements would present a significant hardship to the not-for-profit corporation (new Code section 523J.14).
   COMPANION ANIMAL DISPOSAL DISCLOSURE FORM. The bill requires that a companion animal disposal disclosure form be completed for every deceased companion animal, which sets out the alternative methods of companion animal 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 companion animal. Provisions are made by which a veterinarian may complete a form if a companion animal’s owner is unknown, or if the companion animal owner refuses to complete a form (new Code section 523J.15).
   CONFIRMATION. The bill provides that disposal of a companion animal must be in compliance with the companion animal disposal disclosure form, and that, within 10 days of disposal, a licensee must give written confirmation of the disposal to the companion animal owner or veterinarian, attesting to the method, date, and place of disposal. Copies of the form must be retained by the licensee and the veterinarian for two years after the disposal. Companion animal remains must be buried at least 12 inches below the surface of the ground. However, special requirements apply to large companion animals. 
   EXCLUSIONS. The bill provides exclusions from the trust fund requirements for companion animal 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 companion animal graves, do not make any representations that companion animal graves will be cared for or that the land is dedicated, and bury less than five companion animals a year and make no representations that companion animal graves will be cared for or that the land is dedicated, and do not charge a maintenance fee (new Code section 523J.17).
   RECORDS. The bill provides that owners and operators of companion animal cemeteries must keep maps and records of specific sites of each companion animal 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 companion animal disposal disclosure forms, and complete records of trust accounts. A companion animal cemetery owner must also clearly inform customers of the option of paying maintenance fees for care of companion animal 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 companion animal graves. The bill also requires cooperation by the companion animal cemetery or companion animal crematorium owners with all reasonable requests of inspectors (new Code section 523J.18).