H.F. 2376 Section 1. Section 162.1, subsection 2, Code 2020, is 1 amended to read as follows: 2 2. This Except as otherwise expressly provided, this 3 chapter does not apply to livestock as defined in section 4 717.1 or any other agricultural animal used in agricultural 5 production as provided in chapter 717A a custodial animal . 6 Sec. 2. Section 162.2, Code 2020, is amended by adding the 7 following new subsections: 8 NEW SUBSECTION . 2A. “Animal rescue” means a person acting 9 to ensure the welfare, protection, and humane treatment of dogs 10 and cats, by doing all of the following: 11 a. Acting in association with an animal shelter as approved 12 by the department, or as otherwise provided by the department. 13 b. Accepting, purchasing, exchanging, or soliciting dogs or 14 cats in a manner that provides the dogs or cats with any of the 15 following: 16 (1) Permanent adoptive homes. 17 (2) Lifelong care. 18 NEW SUBSECTION . 2B. “Animal sanctuary” means a person 19 acting to ensure the welfare, protection, and humane treatment 20 of dogs or cats, by doing all of the following: 21 a. Acting in association with an animal shelter as approved 22 by the department, or as otherwise provided by the department. 23 b. Accepting, purchasing, exchanging, or soliciting dogs or 24 cats in a manner that provides the dogs or cats with lifelong 25 care. 26 NEW SUBSECTION . 10A. “Custodial animal” means livestock as 27 defined in section 717.1 or an agricultural animal as defined 28 in section 717A.1. 29 NEW SUBSECTION . 24A. “Sale” means any transaction in any 30 manner or by any means whatsoever, for compensation in return 31 for an animal, regardless of language used to describe the 32 transaction, including but not limited to sale, adoption, 33 charge, donation or suggested donation, transfer, barter, fee, 34 exchange, or contribution. 35 -1- LSB 5700YH (4) 88 da/ns 1/ 5

H.F. 2376 Sec. 3. Section 162.2, subsection 23, Code 2020, is amended 1 to read as follows: 2 23. “Registrant” means a pound an animal rescue, animal 3 sanctuary , animal shelter, pound, or research facility to whom 4 a certificate of registration is issued by the department 5 pursuant to section 162.2A . 6 Sec. 4. Section 162.2A, subsection 1, paragraph a, Code 7 2020, is amended to read as follows: 8 a. A certificate of registration for a pound, an animal 9 rescue, animal sanctuary, animal shelter, pound, or research 10 facility. 11 Sec. 5. NEW SECTION . 162.4B Operation of an animal rescue. 12 An animal rescue shall only operate pursuant to a 13 certificate of registration issued or renewed by the department 14 as provided in section 162.2A. An animal rescue may sell dogs 15 or cats if sales are allowed by the department. The animal 16 rescue facility shall maintain records as required by the 17 department in order for the department to ensure the animal 18 rescue’s compliance with the provisions of this chapter. 19 Sec. 6. NEW SECTION . 162.4C Operation of an animal 20 sanctuary. 21 An animal sanctuary shall only operate pursuant to a 22 certificate of registration issued or renewed by the department 23 as provided in section 162.2A. An animal sanctuary shall not 24 sell more than five dogs or cats in any one year and only if 25 such sales are allowed by the department. The animal sanctuary 26 facility shall maintain records as required by the department 27 in order for the department to ensure the animal sanctuary’s 28 compliance with the provisions of this chapter. 29 Sec. 7. NEW SECTION . 162.10E Sales by registrants. 30 1. A registrant, other than a research facility, is deemed 31 to be a retailer pursuant to chapter 423 and shall obtain a 32 permit pursuant to section 423.36 to collect and remit the 33 sales and use tax pursuant to chapter 423 on transactions 34 involving the sale of animals, as provided by rules adopted by 35 -2- LSB 5700YH (4) 88 da/ns 2/ 5

H.F. 2376 the department of revenue pursuant to chapter 17A. 1 2. A registrant, other than a research facility, shall 2 not sell an animal unless the transaction is made effective 3 by a written contract. The execution of the contract shall 4 transfer all rights to the transferee without reservation or 5 qualification imposed by the registrant. However, the parties 6 may agree to allow the transferee to return the animal to the 7 registrant upon such terms and conditions as agreed to by the 8 parties. The agreement for the return of the animal shall be 9 effectuated by a separate written contract after the registrant 10 has orally explained the terms and conditions of the contract’s 11 provisions to the transferee. 12 Sec. 8. NEW SECTION . 162.10F Restrictions on the operations 13 of registrants. 14 1. A registrant, other than a research facility, shall not 15 acquire a custodial animal as part of a sale. 16 2. A registrant acquiring a custodial animal other than 17 by sale shall transfer the custodial animal to any of the 18 following: 19 a. A permanent home. 20 b. An animal shelter for placement in a permanent home. 21 3. A registrant shall not transfer a custodial animal 22 until making every effort to return the custodial animal to 23 its owner. Prior to placing a custodial animal in a permanent 24 home, the registrant shall hold the custodial animal for 25 not less than ten days. The registrant shall allow any 26 person claiming ownership in the custodial animal to view 27 the custodial animal. The registrant shall attempt to read 28 digital information stored in any microchip implanted under 29 the custodial animal’s skin. Upon demonstrating proof of 30 ownership, the registrant shall return the custodial animal 31 to a claimant. The registrant may charge a reasonable fee 32 for maintaining the custodial animal. The registrant shall 33 furnish the owner with an accounting of all expenses incurred 34 in providing the maintenance. 35 -3- LSB 5700YH (4) 88 da/ns 3/ 5

H.F. 2376 Sec. 9. NEW SECTION . 162.10G Quarantine. 1 A commercial establishment that is transferred an animal 2 from another state shall place that animal in quarantine for 3 ten days after receipt. The department may adopt by rule any 4 exceptions that the department determines reasonable. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 GENERAL. This bill provides for the regulation of 9 commercial establishments maintaining animals, other than 10 livestock or other agricultural animals, by the department 11 of agriculture and land stewardship (DALS). A commercial 12 establishment includes an animal shelter, boarding kennel, 13 commercial breeder, commercial kennel, dealer, pet shop, pound, 14 public auction, or research facility. 15 REGISTRANTS. The bill requires certain persons to obtain 16 a certificate of registration, including persons who provide 17 rescue and sanctuary services. Currently, a registrant 18 includes an animal shelter, pound, and research facility. 19 A registrant is required to pay an annual fee to DALS for 20 deposit in the commercial establishment fund and is subject to 21 inspection. 22 The bill places a number of restrictions on the operations of 23 a registrant, other than a research facility. The registrant 24 is required to collect and remit sales and use taxes on 25 transactions involving the sale of animals. A registrant must 26 provide for the sale, including adoption, of an animal, by 27 written contract. Generally, once the contract is executed, 28 the registrant transfers all legal rights in the animal to the 29 transferee. 30 The bill restricts a registrant from acquiring by sale 31 livestock or any other agricultural animal (referred to as a 32 custodial animal). If a registrant acquires a custodial animal 33 other than by sale, the registrant must make efforts to find 34 the owner of the custodial animal. 35 -4- LSB 5700YH (4) 88 da/ns 4/ 5

H.F. 2376 QUARANTINE. The bill also provides that a commercial 1 establishment must quarantine an animal that it receives from 2 out of state. 3 CIVIL AND CRIMINAL PENALTIES. A commercial establishment 4 that operates pursuant to an authorization, such as a 5 registration, is subject to a civil penalty of up to $500 for 6 violations of Code chapter 162. A commercial establishment 7 that does not operate pursuant to an authorization is subject 8 to a civil penalty of not more than $1,000. A person who 9 operates without an authorization is also guilty of a simple 10 misdemeanor. A simple misdemeanor is punishable by confinement 11 for no more than 30 days or a fine of at least $65 but not more 12 than $625 or by both. 13 -5- LSB 5700YH (4) 88 da/ns 5/ 5