H.F. 705 Section 1. Section 162.2, subsections 6 and 26, Code 2021, 1 are amended to read as follows: 2 6. “Authorization” means a state license , or certificate of 3 registration , or permit issued or renewed by the department to 4 a commercial establishment as provided in section 162.2A . 5 26. “State licensee” means any of the following: 6 a. A a boarding kennel, commercial breeder, commercial 7 kennel, or dealer, pet shop , or public auction to whom a state 8 license is issued by the department pursuant to section 162.2A . 9 b. A commercial breeder, dealer, or public auction to whom 10 a state license is issued in lieu of a permit by the department 11 pursuant to section 162.2A. 12 Sec. 2. Section 162.2, subsections 14, 15, and 17, Code 13 2021, are amended by striking the subsections. 14 Sec. 3. Section 162.2A, subsections 1 and 2, Code 2021, are 15 amended to read as follows: 16 1. The department shall provide for the operation 17 of a commercial establishment by issuing or renewing an 18 authorization, including any of the following: 19 a. A certificate of registration for a pound, animal 20 shelter, or research facility. 21 b. A state license for a boarding kennel, commercial 22 breeder, commercial kennel, or dealer, pet shop , or public 23 auction . 24 c. A state license or permit for a commercial breeder, 25 dealer, or public auction. A federal licensee must apply for 26 and be issued either a permit or a state license in lieu of a 27 permit. 28 2. A person must be issued a separate state license , or 29 certificate of registration , or permit for each commercial 30 establishment owned or operated by the person. 31 Sec. 4. Section 162.2A, subsection 5, Code 2021, is amended 32 by striking the subsection. 33 Sec. 5. Section 162.2B, Code 2021, is amended to read as 34 follows: 35 -1- LSB 2578YH (3) 89 da/ns 1/ 8

H.F. 705 162.2B Fees. 1 The department shall establish, assess, and collect fees as 2 provided in this section . 3 1. A commercial establishment shall pay authorization fees 4 to the department for the issuance or renewal of a certificate 5 of registration , or state license , or permit . 6 a. For the issuance or renewal of a certificate of 7 registration, seventy-five dollars. 8 b. (1) For the issuance or renewal of a state license 9 or permit , a base fee of one hundred seventy-five dollars. 10 However, The department may establish, assess, and collect 11 additional fees based on the number of animals maintained at 12 the commercial establishment as provided by rules adopted by 13 the department. 14 (2) Notwithstanding subparagraph (1), a commercial breeder 15 who owns, keeps, breeds, or transports a greyhound dog for 16 pari-mutuel wagering at a racetrack as provided in chapter 99D 17 shall pay a different fee for the issuance or renewal of a 18 state license as provided in rules adopted by the department. 19 2. The department shall retain all fees that it collects 20 under this section for the exclusive purpose of administering 21 and enforcing the provisions of this chapter . The fees shall 22 be considered repayment receipts as defined in section 8.2 23 deposited in the commercial establishment fund created in 24 section 162.2C . The general assembly shall appropriate moneys 25 to the department each state fiscal year necessary for the 26 administration and enforcement of this chapter . 27 Sec. 6. Section 162.7, Code 2021, is amended to read as 28 follows: 29 162.7 Operation of a dealer —— state license or permit . 30 A dealer shall only operate pursuant to a state license , 31 or a permit, issued or renewed by the department as provided 32 in section 162.2A . A dealer who is a state licensee shall 33 maintain records as required by the department in order for the 34 department to ensure compliance with the provisions of this 35 -2- LSB 2578YH (3) 89 da/ns 2/ 8

H.F. 705 chapter . A dealer who is a permittee may but is not required 1 to maintain records. A dealer shall not purchase a dog or cat 2 from a commercial establishment that does not have a valid 3 authorization issued or renewed under this chapter or a similar 4 authorization issued or renewed by another state. 5 Sec. 7. Section 162.8, Code 2021, is amended to read as 6 follows: 7 162.8 Operation of a commercial breeder —— state license or 8 permit . 9 A commercial breeder shall only operate pursuant to a state 10 license , or a permit, issued or renewed by the department 11 as provided in section 162.2A . A commercial breeder who is 12 a state licensee shall maintain records as required by the 13 department in order for the department to ensure the commercial 14 breeder’s compliance with the provisions of this chapter . A 15 commercial breeder who is a permittee may but is not required 16 to maintain records. A commercial breeder shall not purchase a 17 dog or cat from a commercial establishment that does not have a 18 valid authorization issued or renewed under this chapter or a 19 similar authorization issued or renewed by another state. 20 Sec. 8. Section 162.9A, Code 2021, is amended to read as 21 follows: 22 162.9A Operation of a public auction —— state license or 23 permit . 24 A public auction shall only operate pursuant to a state 25 license , or a permit, issued or renewed by the department 26 as provided in section 162.2A . A public auction which is 27 a state licensee shall maintain records as required by the 28 department in order for the department to ensure the public 29 auction’s compliance with the provisions of this chapter . A 30 public auction which is a permittee may but is not required to 31 maintain records. A public auction shall not purchase a dog or 32 cat from a commercial establishment that does not have a valid 33 authorization issued or renewed under this chapter or a similar 34 authorization issued or renewed by another state. 35 -3- LSB 2578YH (3) 89 da/ns 3/ 8

H.F. 705 Sec. 9. Section 162.10A, subsection 2, Code 2021, is amended 1 to read as follows: 2 2. a. Except as provided in paragraph “b” or “c” , a 3 commercial establishment shall comply with rules that the 4 department adopts to implement subsection 1. A commercial 5 establishment shall be regulated under this paragraph “a” 6 unless the person is a state licensee as provided in paragraph 7 “b” or a permittee as provided in paragraph “c” . 8 b. A state licensee who is a commercial breeder owning, 9 breeding, transporting, or keeping a greyhound dog for 10 pari-mutuel wagering at a racetrack as provided in chapter 99D 11 may be required to comply with different rules adopted by the 12 department. 13 c. A permittee is not required to comply with rules that the 14 department adopts to implement a standard of care as provided 15 in subsection 1 for state licensees and registrants. The 16 department may adopt rules regulating a standard of care for 17 a permittee, so long as the rules are not more restrictive 18 than required for a permittee under the Animal Welfare Act . 19 However, the department may adopt prescriptive rules relating 20 to the standard of care. Regardless of whether the department 21 adopts such rules, a permittee meets the standard of care 22 required in subsection 1 if it voluntarily complies with rules 23 applicable to state licensees or registrants. A finding by 24 the United States department of agriculture that a permittee 25 complies with the Animal Welfare Act is not conclusive when 26 determining that the permittee provides a standard of care 27 required in subsection 1 . 28 Sec. 10. Section 162.10B, Code 2021, is amended to read as 29 follows: 30 162.10B Commercial establishments —— inspecting state 31 licensees and registrants. 32 The department may shall inspect the a commercial 33 establishment of a registrant or state licensee upon receiving 34 an application for issuance or renewal of a registration or 35 -4- LSB 2578YH (3) 89 da/ns 4/ 8

H.F. 705 state license. The department shall conduct an inspection by 1 entering onto its the business premises of the applicant at any 2 time during normal working hours. The department may inspect 3 records required to be maintained by the state licensee or 4 registrant as provided in this chapter . If the owner or person 5 in charge of the commercial establishment refuses admittance, 6 the department may obtain an administrative search warrant 7 issued under section 808.14 . When conducting an inspection, 8 the department may cooperate with the United States department 9 of agriculture acting under the Animal Welfare Act. 10 Sec. 11. Section 162.10C, Code 2021, is amended to read as 11 follows: 12 162.10C Commercial establishments —— monitoring permittees 13 Reports to United States department of agriculture . 14 1. The department may monitor the commercial establishment 15 of a permittee by entering onto its business premises at 16 any time during normal working hours. The department shall 17 monitor the commercial establishment for the limited purpose of 18 determining whether the permittee is providing for a standard 19 of care required for permittees under section 162.10A . If 20 the owner or person in charge of the commercial establishment 21 refuses admittance, the department may obtain an administrative 22 search warrant issued under section 808.14 . 23 2. In order to enter onto the business premises of a 24 permittee’s commercial establishment, the department must have 25 reasonable cause to suspect that the permittee is not providing 26 for the standard of care required for permittees under section 27 162.10A . Reasonable cause must be supported by any of the 28 following: 29 a. An oral or written complaint received by the department 30 by a person. The complainant must provide the complainant’s 31 name and address and telephone number. Notwithstanding chapter 32 22 , the department’s record of a complaint is confidential, 33 unless any of the following apply: 34 (1) The results of the monitoring are used in a contested 35 -5- LSB 2578YH (3) 89 da/ns 5/ 8

H.F. 705 case proceeding as provided in chapter 17A or in a judicial 1 proceeding. 2 (2) The record is sought in discovery in any administrative, 3 civil, or criminal case. 4 (3) The department’s record of a complaint is filed by a 5 person other than an individual. 6 b. A report prepared by a person employed by the United 7 States department of agriculture that requires a permittee to 8 take action necessary to correct a breach of standard of care 9 required of federal licensees by the Animal Welfare Act or of 10 permittees by section 162.10A . The department is not required 11 to dedicate any number of hours to viewing or analyzing such 12 reports. 13 3. When carrying out this section , the department may 14 cooperate with the United States department of agriculture. 15 The department shall report any findings resulting in an 16 enforcement action under this chapter, including section 17 162.10D , to the United States department of agriculture acting 18 under the Animal Welfare Act . 19 Sec. 12. Section 162.11, subsection 1, Code 2021, is amended 20 by striking the subsection. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 GENERAL. This bill amends Code chapter 162 by providing for 25 the regulation of commercial establishments that possess or 26 control animals for business purposes on a profit or nonprofit 27 basis, but not including livestock or animals used for an 28 agricultural purpose. The Code chapter is administered and 29 enforced by the department of agriculture and land stewardship 30 (DALS). 31 BILL’S PROVISIONS. The bill eliminates the right of a 32 commercial breeder, dealer, or public auction to operate under 33 a permit. All such persons must be issued a state license. The 34 bill provides that DALS may require a state licensee pay a fee 35 -6- LSB 2578YH (3) 89 da/ns 6/ 8

H.F. 705 based on the number of animals maintained at the commercial 1 establishment. The amount of the fee is established by rule. 2 The bill provides that a DALS inspection of a registrant or a 3 state licensee is required. 4 BACKGROUND —— AUTHORIZATIONS. DALS issues different 5 categories of authorizations to persons operating as commercial 6 establishments. A pound, animal shelter, or research facility 7 must be issued a certificate of registration and a boarding 8 kennel, commercial kennel, or pet shop must be issued a state 9 license. A commercial breeder, dealer, or public auction may 10 elect to be issued a state license or alternatively a permit 11 if the commercial breeder, dealer, or public auction operates 12 under a federal license issued by the United States department 13 of agriculture (USDA) under the Animal Welfare Act (AWA) 14 (amended Code sections 162.2A, 162.7, and 162.8). 15 BACKGROUND —— FEES. A commercial establishment is required 16 to pay an authorization fee for deposit in the commercial 17 establishment fund (amended Code section 162.2B and Code 18 section 162.2C). A registrant pays $75 and a state licensee 19 and permittee pays $175. 20 INSPECTIONS. DALS may inspect a registrant or state 21 licensee by entering onto its business premises and may inspect 22 its records (amended Code section 162.10C). Alternatively, 23 DALS may monitor a permittee by entering onto its business 24 premises for the limited purpose of determining whether the 25 permittee is providing for the required standard of care. In 26 order to enter onto the premises of a permittee, DALS must have 27 reasonable cause supported by an oral or written complaint or a 28 report filed by the USDA. 29 BACKGROUND —— STANDARD OF CARE. Currently, a commercial 30 establishment must provide animals with a general standard of 31 care, including by providing adequate feed, adequate water, 32 housing facilities, sanitary control, grooming practices, and 33 veterinary care (amended Code section 162.10A). In addition, a 34 registrant or state licensee must comply with DALS’ rules, with 35 -7- LSB 2578YH (3) 89 da/ns 7/ 8

H.F. 705 one exception. DALS may adopt different rules that apply to a 1 state licensee who keeps greyhounds for racing. A permittee is 2 allowed to meet that standard of care without complying with 3 DALS rules applicable to registrants and state licensees. DALS 4 may adopt special rules for permittees so long as the rules are 5 not more restrictive than the AWA. 6 CIVIL PENALTIES. DALS is required to establish, impose, and 7 assess civil penalties for violations of the Code chapter’s 8 provisions. For an authorized commercial establishment 9 (registrant, state licensee, or permittee), the civil penalty 10 is up to $500 per day of a violation. For a housing violation, 11 the civil penalty is assessed for the first day, but not for 12 the subsequent 15 days to allow for correction according to a 13 DALS plan. For an unauthorized commercial establishment, the 14 civil penalty is up to $1,000 per day of a violation, without a 15 grace period for a housing violation. 16 CRIMINAL PENALTIES. A person who violates a standard of care 17 is guilty of a simple misdemeanor. A person who operates a 18 commercial establishment without obtaining an authorization is 19 also guilty of a simple misdemeanor. A simple misdemeanor is 20 punishable by confinement for no more than 30 days and a fine 21 of at least $105 but not more than $855. 22 -8- LSB 2578YH (3) 89 da/ns 8/ 8