HF 2376 (LSB 5700YH (4) 88)

HOUSE FILE 2376

BY  BAXTER

A BILL FOR

An Act providing for the regulation of commercial establishments maintaining certain animals, providing fees, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 162.1, subsection 2, Code 2020, is amended to read as follows:
   2.  This Except as otherwise expressly provided, this chapter does not apply to livestock as defined in section 717.1 or any other agricultural animal used in agricultural production as provided in chapter 717A a custodial animal.
    Sec. 2.  Section 162.2, Code 2020, is amended by adding the following new subsections:
   NEW SUBSECTION.  2A.  “Animal rescue” means a person acting to ensure the welfare, protection, and humane treatment of dogs and cats, by doing all of the following:
   a.  Acting in association with an animal shelter as approved by the department, or as otherwise provided by the department.
   b.  Accepting, purchasing, exchanging, or soliciting dogs or cats in a manner that provides the dogs or cats with any of the following:
   (1)  Permanent adoptive homes.
   (2)  Lifelong care.
   NEW SUBSECTION.  2B.  “Animal sanctuary” means a person acting to ensure the welfare, protection, and humane treatment of dogs or cats, by doing all of the following:
   a.  Acting in association with an animal shelter as approved by the department, or as otherwise provided by the department.
   b.  Accepting, purchasing, exchanging, or soliciting dogs or cats in a manner that provides the dogs or cats with lifelong care.
   NEW SUBSECTION.  10A.  “Custodial animal” means livestock as defined in section 717.1 or an agricultural animal as defined in section 717A.1.
   NEW SUBSECTION.  24A.  “Sale” means any transaction in any manner or by any means whatsoever, for compensation in return for an animal, regardless of language used to describe the transaction, including but not limited to sale, adoption, charge, donation or suggested donation, transfer, barter, fee, exchange, or contribution.
    Sec. 3.  Section 162.2, subsection 23, Code 2020, is amended to read as follows:
   23.  “Registrant” means a pound an animal rescue, animal sanctuary, animal shelter, pound, or research facility to whom a certificate of registration is issued by the department pursuant to section 162.2A.
    Sec. 4.  Section 162.2A, subsection 1, paragraph a, Code 2020, is amended to read as follows:
   a.  A certificate of registration for a pound, an animal rescue, animal sanctuary, animal shelter, pound, or research facility.
    Sec. 5.  NEW SECTION.  162.4B  Operation of an animal rescue.
   An animal rescue shall only operate pursuant to a certificate of registration issued or renewed by the department as provided in section 162.2A. An animal rescue may sell dogs or cats if sales are allowed by the department. The animal rescue facility shall maintain records as required by the department in order for the department to ensure the animal rescue’s compliance with the provisions of this chapter.
    Sec. 6.  NEW SECTION.  162.4C  Operation of an animal sanctuary.
   An animal sanctuary shall only operate pursuant to a certificate of registration issued or renewed by the department as provided in section 162.2A. An animal sanctuary shall not sell more than five dogs or cats in any one year and only if such sales are allowed by the department. The animal sanctuary facility shall maintain records as required by the department in order for the department to ensure the animal sanctuary’s compliance with the provisions of this chapter.
    Sec. 7.  NEW SECTION.  162.10E  Sales by registrants.
   1.  A registrant, other than a research facility, is deemed to be a retailer pursuant to chapter 423 and shall obtain a permit pursuant to section 423.36 to collect and remit the sales and use tax pursuant to chapter 423 on transactions involving the sale of animals, as provided by rules adopted by the department of revenue pursuant to chapter 17A.
   2.  A registrant, other than a research facility, shall not sell an animal unless the transaction is made effective by a written contract. The execution of the contract shall transfer all rights to the transferee without reservation or qualification imposed by the registrant. However, the parties may agree to allow the transferee to return the animal to the registrant upon such terms and conditions as agreed to by the parties. The agreement for the return of the animal shall be effectuated by a separate written contract after the registrant has orally explained the terms and conditions of the contract’s provisions to the transferee.
    Sec. 8.  NEW SECTION.  162.10F  Restrictions on the operations of registrants.
   1.  A registrant, other than a research facility, shall not acquire a custodial animal as part of a sale.
   2.  A registrant acquiring a custodial animal other than by sale shall transfer the custodial animal to any of the following:
   a.  A permanent home.
   b.  An animal shelter for placement in a permanent home.
   3.  A registrant shall not transfer a custodial animal until making every effort to return the custodial animal to its owner. Prior to placing a custodial animal in a permanent home, the registrant shall hold the custodial animal for not less than ten days. The registrant shall allow any person claiming ownership in the custodial animal to view the custodial animal. The registrant shall attempt to read digital information stored in any microchip implanted under the custodial animal’s skin. Upon demonstrating proof of ownership, the registrant shall return the custodial animal to a claimant. The registrant may charge a reasonable fee for maintaining the custodial animal. The registrant shall furnish the owner with an accounting of all expenses incurred in providing the maintenance.
    Sec. 9.  NEW SECTION.  162.10G  Quarantine.
   A commercial establishment that is transferred an animal from another state shall place that animal in quarantine for ten days after receipt. The department may adopt by rule any exceptions that the department determines reasonable.
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 regulation of commercial establishments maintaining animals, other than livestock or other agricultural animals, by the department of agriculture and land stewardship (DALS). A commercial establishment includes an animal shelter, boarding kennel, commercial breeder, commercial kennel, dealer, pet shop, pound, public auction, or research facility.
   REGISTRANTS. The bill requires certain persons to obtain a certificate of registration, including persons who provide rescue and sanctuary services. Currently, a registrant includes an animal shelter, pound, and research facility. A registrant is required to pay an annual fee to DALS for deposit in the commercial establishment fund and is subject to inspection.
   The bill places a number of restrictions on the operations of a registrant, other than a research facility. The registrant is required to collect and remit sales and use taxes on transactions involving the sale of animals. A registrant must provide for the sale, including adoption, of an animal, by written contract. Generally, once the contract is executed, the registrant transfers all legal rights in the animal to the transferee.
   The bill restricts a registrant from acquiring by sale livestock or any other agricultural animal (referred to as a custodial animal). If a registrant acquires a custodial animal other than by sale, the registrant must make efforts to find the owner of the custodial animal.
   QUARANTINE. The bill also provides that a commercial establishment must quarantine an animal that it receives from out of state.
   CIVIL AND CRIMINAL PENALTIES. A commercial establishment that operates pursuant to an authorization, such as a registration, is subject to a civil penalty of up to $500 for violations of Code chapter 162. A commercial establishment that does not operate pursuant to an authorization is subject to a civil penalty of not more than $1,000. A person who operates without an authorization is also guilty of a simple misdemeanor. A simple misdemeanor is punishable by confinement for no more than 30 days or a fine of at least $65 but not more than $625 or by both.