S.F. 2177 Section 1. Section 162.2, Code 2016, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 22A. “Qualified purchaser” means a person, 3 other than a commercial establishment, who is transferred 4 ownership and possession of a dog or cat from another person 5 as part of a sale or exchange, if the transfer is for the 6 person’s personal use and enjoyment and not for further sale 7 or exchange. 8 NEW SUBSECTION . 24B. “Seller” means a commercial 9 establishment or other person who transfers ownership and 10 possession of a dog or cat to another person as part of a sale 11 or exchange. 12 Sec. 2. Section 162.12A, Code 2016, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 1A. A seller who does not honor an express 15 warranty as required in section 162.17 is subject to a civil 16 penalty of not more than five hundred dollars and each day that 17 the seller fails to honor that warranty constitutes a separate 18 offense. 19 Sec. 3. NEW SECTION . 162.17 Express warranty. 20 1. A seller who sells or exchanges a dog or cat to a 21 qualified purchaser shall furnish the qualified purchaser with 22 an express warranty in written form covering damages caused by 23 the condition of the dog or cat as provided in this section. 24 The form of the express warranty shall be prescribed by the 25 department. 26 2. If a seller fails to furnish a written express warranty 27 to a qualified purchaser, the express warranty shall apply as 28 if the seller had furnished the written express warranty to the 29 qualified purchaser. 30 3. The express warranty shall expire twenty-one days from 31 the date that the qualified purchaser is transferred possession 32 of the dog or cat from the seller. 33 4. The express warranty shall cover all of the following 34 conditions: 35 -1- LSB 5923XS (5) 86 da/nh 1/ 5

S.F. 2177 a. An illness or disease that arose prior to the transfer 1 of possession of the dog or cat and that adversely affects the 2 health of the dog or cat, including the presence of symptoms 3 of a contagious or infectious disease or an obvious sign of 4 severe parasitism that is extreme enough to influence the 5 general health of the dog or cat. An illness or disease does 6 not include the presence of fleas or ticks. 7 b. A congenital or hereditary condition that adversely 8 affects the health of the dog or cat, if the condition results 9 in any of the following: 10 (1) The hospitalization of the dog or cat or a nonelective 11 surgical procedure performed on the dog or cat, as recommended 12 by a veterinarian. 13 (2) The death of the dog or cat. 14 5. A qualified purchaser who makes a claim on an express 15 warranty shall demand compensation from the seller in any of 16 the following forms: 17 a. A return of the consideration paid by the qualified 18 purchaser to the seller, including a refund of the sales price 19 paid to the seller, upon the qualified purchaser’s return of 20 the live dog or cat to the seller or proof provided by the 21 qualified purchaser to the seller that the dog or cat died as a 22 result of a condition covered by the express warranty. 23 b. An exchange of the dog or cat for another dog or cat of 24 comparable value as agreed to by the qualified purchaser and 25 the seller. 26 c. A reimbursement of reasonable veterinary fees paid by the 27 qualified purchaser to a licensed veterinarian for diagnosing 28 and treating the dog or cat during the twenty-one-day period. 29 The reimbursement shall not exceed the amount of consideration 30 paid by the qualified purchaser to the seller for the dog or 31 cat. 32 6. An express warranty shall not cover the condition of a 33 dog or cat that arises after the seller transfers possession of 34 the dog or cat to the qualified purchaser, including but not 35 -2- LSB 5923XS (5) 86 da/nh 2/ 5

S.F. 2177 limited to any of the following: 1 a. An illness or disease afflicting the dog or cat. 2 b. An injury sustained by the dog or cat. 3 c. Any condition that could be reasonably attributable to 4 neglect, including a failure to provide the dog or cat with the 5 same standard of care applicable to commercial establishments 6 under section 162.10A, subsection 1. 7 d. Any condition that could be reasonably attributable to 8 the dog or cat’s mistreatment, including but not limited to any 9 mistreatment that could classify the dog or cat as a threatened 10 animal under chapter 717B. 11 7. Any waiver of a right by a qualified purchaser under this 12 section is void, unless the qualified purchaser and seller sign 13 a written statement waiving the express warranty. The written 14 statement must disclose any known illness or disease afflicting 15 the dog or cat and any congenital or hereditary condition that 16 adversely affects the dog or cat. Upon the signing of the 17 statement by the parties, the seller shall not be subject to a 18 claim as described in subsection 5. 19 8. A commercial establishment that transfers a dog or cat 20 must post a notice at a conspicuous public location in the 21 commercial establishment’s principal place of business. The 22 notice must briefly explain the terms and conditions of the 23 warranty as required by the department. 24 9. This section shall not limit rights or remedies available 25 to a qualified purchaser under any other law. In addition to 26 pursuing any other remedy, a qualified purchaser who is not 27 compensated under this section may bring an action in district 28 court. The court shall award a qualified purchaser who 29 prevails in such an action the amount of any pecuniary loss, 30 together with costs and reasonable attorney fees which shall 31 be taxed as part of the costs of the action, and any equitable 32 relief that the court determines is appropriate. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -3- LSB 5923XS (5) 86 da/nh 3/ 5

S.F. 2177 the explanation’s substance by the members of the general assembly. 1 BILL’S PROVISIONS. This bill requires that when a person 2 (seller) transfers possession and ownership of a dog or cat, 3 by sale or exchange, to another person for that person’s own 4 personal use and enjoyment (qualified purchaser), the seller 5 must furnish the qualified purchaser with an express warranty 6 in written form covering damages caused by the condition of 7 the dog or cat at the time of sale or exchange. The express 8 warranty applies regardless of whether the seller provides the 9 qualified purchaser with a specific written form required to be 10 promulgated by the department. The express warranty expires 11 21 days from the date that the qualified purchaser takes 12 possession of the dog or cat. The express warranty covers 13 illness, disease, or a congenital or hereditary condition. The 14 express warranty allows the qualified purchaser to make a claim 15 for compensation in one of three forms: (1) return of the paid 16 consideration (refund), (2) exchange for another dog or cat, or 17 (3) reimbursement of veterinarian fees. However, the express 18 warranty does not cover a condition that occurred after the 19 seller transfers possession of the dog or cat to the qualified 20 purchaser. The parties may execute a statement waiving the 21 express warranty, so long as the statement discloses any known 22 illness or disease afflicting the dog or cat and any congenital 23 or hereditary condition that adversely affects the dog or cat. 24 The bill requires a commercial establishment to post a 25 notice briefly explaining the express warranty in a conspicuous 26 place. 27 The bill does not limit the rights or remedies provided to 28 qualified purchasers under other law. A qualified purchaser 29 who does not receive compensation from the seller may bring an 30 action in court to recover pecuniary damages plus court costs 31 and reasonable attorney fees, which are to be taxed as part of 32 the costs of the action. In addition, the court may grant any 33 equitable relief that the court determines is appropriate. 34 CIVIL PENALTY. A seller violating the bill’s provisions is 35 -4- LSB 5923XS (5) 86 da/nh 4/ 5

S.F. 2177 subject to a civil penalty of not more than $500 and each day 1 that the seller fails to honor an express warranty constitutes 2 a separate offense. 3 BACKGROUND. Commercial establishments that are involved in 4 the sale or exchange of dogs and cats include animal shelters 5 and pounds which are required to obtain a certificate of 6 registration; pet shops which are required to obtain a state 7 license; and commercial breeders which are required to obtain 8 a state license or a permit if licensed by the United States 9 department of agriculture (USDA). 10 -5- LSB 5923XS (5) 86 da/nh 5/ 5