HF 705 (LSB 2578YH (3) 89)

HOUSE FILE 705

BY  MAXWELL

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 162.2, subsections 6 and 26, Code 2021, are amended to read as follows:
   6.  “Authorization” means a state license, or certificate of registration, or permit issued or renewed by the department to a commercial establishment as provided in section 162.2A.
   26.  “State licensee” means any of the following:
   a.  A a boarding kennel, commercial breeder, commercial kennel, or dealer, pet shop, or public auction to whom a state license is issued by the department pursuant to section 162.2A.
   b.  A commercial breeder, dealer, or public auction to whom a state license is issued in lieu of a permit by the department pursuant to section 162.2A.
    Sec. 2.  Section 162.2, subsections 14, 15, and 17, Code 2021, are amended by striking the subsections.
    Sec. 3.  Section 162.2A, subsections 1 and 2, Code 2021, are amended to read as follows:
   1.  The department shall provide for the operation of a commercial establishment by issuing or renewing an authorization, including any of the following:
   a.  A certificate of registration for a pound, animal shelter, or research facility.
   b.  A state license for a boarding kennel, commercial breeder, commercial kennel, or dealer, pet shop, or public auction.
   c.  A state license or permit for a commercial breeder, dealer, or public auction. A federal licensee must apply for and be issued either a permit or a state license in lieu of a permit.
   2.  A person must be issued a separate state license, or certificate of registration, or permit for each commercial establishment owned or operated by the person.
    Sec. 4.  Section 162.2A, subsection 5, Code 2021, is amended by striking the subsection.
    Sec. 5.  Section 162.2B, Code 2021, is amended to read as follows:
   162.2B  Fees.
   The department shall establish, assess, and collect fees as provided in this section.
   1.  A commercial establishment shall pay authorization fees to the department for the issuance or renewal of a certificate of registration, or state license, or permit.
   a.  For the issuance or renewal of a certificate of registration, seventy-five dollars. 
   b.  (1)  For the issuance or renewal of a state license or permit, a base fee of one hundred seventy-five dollars. However, The department may establish, assess, and collect additional fees based on the number of animals maintained at the commercial establishment as provided by rules adopted by the department. 
   (2)  Notwithstanding subparagraph (1), a commercial breeder who owns, keeps, breeds, or transports a greyhound dog for pari-mutuel wagering at a racetrack as provided in chapter 99D shall pay a different fee for the issuance or renewal of a state license as provided in rules adopted by the department.
   2.  The department shall retain all fees that it collects under this section for the exclusive purpose of administering and enforcing the provisions of this chapter. The fees shall be considered repayment receipts as defined in section 8.2

deposited in the commercial establishment fund created in section 162.2C. The general assembly shall appropriate moneys to the department each state fiscal year necessary for the administration and enforcement of this chapter.
    Sec. 6.  Section 162.7, Code 2021, is amended to read as follows:
   162.7  Operation of a dealer —— state license or permit.
   A dealer shall only operate pursuant to a state license, or a permit, issued or renewed by the department as provided in section 162.2A. A dealer who is a state licensee shall maintain records as required by the department in order for the department to ensure compliance with the provisions of this chapter. A dealer who is a permittee may but is not required to maintain records. A dealer shall not purchase a dog or cat from a commercial establishment that does not have a valid authorization issued or renewed under this chapter or a similar authorization issued or renewed by another state.
    Sec. 7.  Section 162.8, Code 2021, is amended to read as follows:
   162.8  Operation of a commercial breeder —— state license or permit.
   A commercial breeder shall only operate pursuant to a state license, or a permit, issued or renewed by the department as provided in section 162.2A. A commercial breeder who is a state licensee shall maintain records as required by the department in order for the department to ensure the commercial breeder’s compliance with the provisions of this chapter. A commercial breeder who is a permittee may but is not required to maintain records. A commercial breeder shall not purchase a dog or cat from a commercial establishment that does not have a valid authorization issued or renewed under this chapter or a similar authorization issued or renewed by another state.
    Sec. 8.  Section 162.9A, Code 2021, is amended to read as follows:
   162.9A  Operation of a public auction —— state license or permit.
   A public auction shall only operate pursuant to a state license, or a permit, issued or renewed by the department as provided in section 162.2A. A public auction which is a state licensee shall maintain records as required by the department in order for the department to ensure the public auction’s compliance with the provisions of this chapter. A public auction which is a permittee may but is not required to maintain records. A public auction shall not purchase a dog or cat from a commercial establishment that does not have a valid authorization issued or renewed under this chapter or a similar authorization issued or renewed by another state.
    Sec. 9.  Section 162.10A, subsection 2, Code 2021, is amended to read as follows:
   2.  a.  Except as provided in paragraph “b” or “c”, a commercial establishment shall comply with rules that the department adopts to implement subsection 1. A commercial establishment shall be regulated under this paragraph “a” unless the person is a state licensee as provided in paragraph “b” or a permittee as provided in paragraph “c”.
   b.  A state licensee who is a commercial breeder owning, breeding, transporting, or keeping a greyhound dog for pari-mutuel wagering at a racetrack as provided in chapter 99D may be required to comply with different rules adopted by the department.
   c.  A permittee is not required to comply with rules that the department adopts to implement a standard of care as provided in subsection 1 for state licensees and registrants. The department may adopt rules regulating a standard of care for a permittee, so long as the rules are not more restrictive than required for a permittee under the Animal Welfare Act. However, the department may adopt prescriptive rules relating to the standard of care. Regardless of whether the department adopts such rules, a permittee meets the standard of care required in subsection 1 if it voluntarily complies with rules applicable to state licensees or registrants. A finding by the United States department of agriculture that a permittee complies with the Animal Welfare Act is not conclusive when determining that the permittee provides a standard of care required in subsection 1.
    Sec. 10.  Section 162.10B, Code 2021, is amended to read as follows:
   162.10B  Commercial establishments —— inspecting state licensees and registrants.
   The department may shall inspect the a commercial establishment of a registrant or state licensee upon receiving an application for issuance or renewal of a registration or state license. The department shall conduct an inspection by entering onto its the business premises of the applicant at any time during normal working hours. The department may inspect records required to be maintained by the state licensee or registrant as provided in this chapter. If the owner or person in charge of the commercial establishment refuses admittance, the department may obtain an administrative search warrant issued under section 808.14.  When conducting an inspection, the department may cooperate with the United States department of agriculture acting under the Animal Welfare Act.
    Sec. 11.  Section 162.10C, Code 2021, is amended to read as follows:
   162.10C  Commercial establishments —— monitoring permittees Reports to United States department of agriculture.
   1.  The department may monitor the commercial establishment of a permittee by entering onto its business premises at any time during normal working hours. The department shall monitor the commercial establishment for the limited purpose of determining whether the permittee is providing for a standard of care required for permittees under section 162.10A. If the owner or person in charge of the commercial establishment refuses admittance, the department may obtain an administrative search warrant issued under section 808.14.
   2.  In order to enter onto the business premises of a permittee’s commercial establishment, the department must have reasonable cause to suspect that the permittee is not providing for the standard of care required for permittees under section 162.10A. Reasonable cause must be supported by any of the following:
   a.  An oral or written complaint received by the department by a person. The complainant must provide the complainant’s name and address and telephone number. Notwithstanding chapter 22, the department’s record of a complaint is confidential, unless any of the following apply:
   (1)  The results of the monitoring are used in a contested case proceeding as provided in chapter 17A or in a judicial proceeding. 
   (2)  The record is sought in discovery in any administrative, civil, or criminal case. 
   (3)  The department’s record of a complaint is filed by a person other than an individual.
   b.  A report prepared by a person employed by the United States department of agriculture that requires a permittee to take action necessary to correct a breach of standard of care required of federal licensees by the Animal Welfare Act or of permittees by section 162.10A. The department is not required to dedicate any number of hours to viewing or analyzing such reports.
   3.  When carrying out this section, the department may cooperate with the United States department of agriculture. The department shall report any findings resulting in an enforcement action under this chapter, including section 162.10D, to the United States department of agriculture acting under the Animal Welfare Act. 
    Sec. 12.  Section 162.11, subsection 1, Code 2021, is amended by striking the subsection.
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 amends Code chapter 162 by providing for the regulation of commercial establishments that possess or control animals for business purposes on a profit or nonprofit basis, but not including livestock or animals used for an agricultural purpose. The Code chapter is administered and enforced by the department of agriculture and land stewardship (DALS).
   BILL’S PROVISIONS. The bill eliminates the right of a commercial breeder, dealer, or public auction to operate under a permit. All such persons must be issued a state license. The bill provides that DALS may require a state licensee pay a fee based on the number of animals maintained at the commercial establishment. The amount of the fee is established by rule. The bill provides that a DALS inspection of a registrant or a state licensee is required.
   BACKGROUND —— AUTHORIZATIONS. DALS issues different categories of authorizations to persons operating as commercial establishments. A pound, animal shelter, or research facility must be issued a certificate of registration and a boarding kennel, commercial kennel, or pet shop must be issued a state license. A commercial breeder, dealer, or public auction may elect to be issued a state license or alternatively a permit if the commercial breeder, dealer, or public auction operates under a federal license issued by the United States department of agriculture (USDA) under the Animal Welfare Act (AWA) (amended Code sections 162.2A, 162.7, and 162.8).
   BACKGROUND —— FEES. A commercial establishment is required to pay an authorization fee for deposit in the commercial establishment fund (amended Code section 162.2B and Code section 162.2C). A registrant pays $75 and a state licensee and permittee pays $175.
   INSPECTIONS. DALS may inspect a registrant or state licensee by entering onto its business premises and may inspect its records (amended Code section 162.10C). Alternatively, DALS may monitor a permittee by entering onto its business premises for the limited purpose of determining whether the permittee is providing for the required standard of care. In order to enter onto the premises of a permittee, DALS must have reasonable cause supported by an oral or written complaint or a report filed by the USDA.
   BACKGROUND —— STANDARD OF CARE. Currently, a commercial establishment must provide animals with a general standard of care, including by providing adequate feed, adequate water, housing facilities, sanitary control, grooming practices, and veterinary care (amended Code section 162.10A). In addition, a registrant or state licensee must comply with DALS’ rules, with one exception. DALS may adopt different rules that apply to a state licensee who keeps greyhounds for racing. A permittee is allowed to meet that standard of care without complying with DALS rules applicable to registrants and state licensees. DALS may adopt special rules for permittees so long as the rules are not more restrictive than the AWA.
   CIVIL PENALTIES. DALS is required to establish, impose, and assess civil penalties for violations of the Code chapter’s provisions. For an authorized commercial establishment (registrant, state licensee, or permittee), the civil penalty is up to $500 per day of a violation. For a housing violation, the civil penalty is assessed for the first day, but not for the subsequent 15 days to allow for correction according to a DALS plan. For an unauthorized commercial establishment, the civil penalty is up to $1,000 per day of a violation, without a grace period for a housing violation.
   CRIMINAL PENALTIES. A person who violates a standard of care is guilty of a simple misdemeanor. A person who operates a commercial establishment without obtaining an authorization is also guilty of a simple misdemeanor. A simple misdemeanor is punishable by confinement for no more than 30 days and a fine of at least $105 but not more than $855.