H.F. 2039 Section 1. Section 162.10B, Code 2024, is amended to read 1 as follows: 2 162.10B Commercial establishments —— inspecting state 3 licensees and registrants or state licensees . 4 1. The department may shall inspect the commercial 5 establishment of a registrant or state licensee by entering on 6 a priority and scheduled basis. 7 2. a. The department shall inspect a commercial 8 establishment on a priority basis according to criteria 9 determined relevant by the department. 10 b. The department shall enter onto its the business premises 11 at any time during normal working hours of the registrant or 12 state licensee . The department shall determine whether the 13 registrant or state licensee is complying with section 162.10A. 14 c. The department may inspect records required to be 15 maintained by the state licensee or registrant as provided in 16 this chapter . 17 d. The department must inspect the commercial establishment 18 during normal business hours. 19 e. The department shall inspect the commercial establishment 20 regardless of when the department inspected the commercial 21 establishment on a scheduled basis. 22 3. The department shall inspect a commercial establishment 23 on a scheduled basis subject to all of the following: 24 a. The department is limited to entering onto the business 25 premises of a state licensee operating as a commercial breeder. 26 b. The department must enter on the business premises of the 27 state licensee once each twelve-month period. 28 c. The department must inspect the commercial establishment 29 during normal business hours. 30 d. The department shall determine whether the state licensee 31 is complying with section 162.10A. 32 e. The department may inspect records required to be 33 maintained by the state licensee. 34 4. If the owner or person in charge of the commercial 35 -1- LSB 5256YH (4) 90 da/ns 1/ 6

H.F. 2039 establishment refuses admittance to allow an inspection under 1 this section , the department may obtain an administrative 2 search warrant issued under section 808.14 . The person shall 3 comply with the search warrant. 4 Sec. 2. Section 162.10C, Code 2024, is amended to read as 5 follows: 6 162.10C Commercial establishments —— monitoring permittees. 7 1. The department may shall monitor the commercial 8 establishment of a permittee by entering onto its business 9 premises at any time during normal working hours for the 10 limited purpose of determining whether the permittee is 11 providing for a standard of care required for permittees under 12 section 162.10A . The department shall monitor the commercial 13 establishment for the limited purpose of determining whether 14 the permittee is providing for a standard of care required for 15 permittees under section 162.10A . If the owner or person in 16 charge of the commercial establishment refuses admittance, the 17 department may obtain an administrative search warrant issued 18 under section 808.14 . 19 2. In order to enter onto the business premises of a 20 permittee’s commercial establishment, The department shall 21 inspect the commercial establishment of a permittee on a 22 priority and scheduled basis. 23 3. a. The department shall monitor a commercial 24 establishment on a priority basis, if the department must have 25 has reasonable cause to suspect that the permittee is not 26 providing for the standard of care required for permittees 27 under section 162.10A . 28 (1) Reasonable cause must be supported by any of the 29 following: 30 a. (a) An oral or written complaint received by the 31 department by a person. The complainant must provide 32 the complainant’s name and address and telephone number. 33 Notwithstanding chapter 22 , the department’s record of a 34 complaint is confidential, unless any of the following apply: 35 -2- LSB 5256YH (4) 90 da/ns 2/ 6

H.F. 2039 (1) (i) The results of the monitoring are used in a 1 contested case proceeding as provided in chapter 17A or in a 2 judicial proceeding. 3 (2) (ii) The record is sought in discovery in any 4 administrative, civil, or criminal case. 5 (3) (iii) The department’s record of a complaint is filed 6 by a person other than an individual. 7 b. (b) A report prepared by a person employed by the United 8 States department of agriculture that requires a permittee to 9 take action necessary to correct a breach of standard of care 10 required of federal licensees by the Animal Welfare Act or of 11 permittees by section 162.10A . The department is not required 12 to dedicate any number of hours to viewing or analyzing such 13 reports. 14 3. (2) When carrying out this section paragraph , the 15 department may cooperate with the United States department 16 of agriculture. The department shall report any findings 17 resulting in an enforcement action under section 162.10D to the 18 United States department of agriculture. 19 b. If the department has reasonable cause, it shall enter 20 onto the business premises of the permittee. The department 21 shall inspect a commercial establishment subject to all of the 22 following: 23 (1) The department shall determine whether the permittee is 24 complying with section 162.10A. 25 (2) The department must inspect the commercial 26 establishment during normal business hours. 27 (3) The department shall inspect the commercial 28 establishment regardless of when the department inspected the 29 commercial establishment on a scheduled basis. 30 4. The department shall inspect a commercial establishment 31 on a scheduled basis subject to all of the following: 32 a. The department is limited to entering onto the business 33 premises of a permittee operating as a commercial breeder. 34 b. The department must enter onto the business premises of 35 -3- LSB 5256YH (4) 90 da/ns 3/ 6

H.F. 2039 the permittee once each twelve-month period. 1 c. The department must inspect the commercial establishment 2 during normal business hours. 3 d. The department shall determine whether the permittee is 4 complying with section 162.10A. 5 5. If the owner or person in charge of the commercial 6 establishment refuses to allow the inspection under this 7 section, the department may obtain an administrative search 8 warrant issued under section 808.14. The person shall comply 9 with the search warrant. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 BACKGROUND —— GENERAL. This bill amends Code chapter 162, 14 which provides for the regulation of commercial establishments 15 that possess or control animals, other than animals used 16 for an agricultural purpose (Code section 162.1). The Code 17 chapter is administered and enforced by the department of 18 agriculture and land stewardship (DALS). DALS issues various 19 forms of authorizations according to the type of commercial 20 establishment regulated, with each type subject to a separate 21 fee (Code section 162.2B). An animal shelter, pound, or 22 research facility is issued a certificate of registration 23 (Code sections 162.3, 162.4, and 162.4A); a pet shop, boarding 24 kennel, or commercial kennel is issued a state license (Code 25 sections 162.5, 162.5A, and 162.6); and a dealer, commercial 26 breeder, or public auction may elect to be issued a state 27 license or a permit. However, in order to be issued a permit, 28 the dealer, commercial breeder, or public auction must be 29 licensed under the federal Animal Welfare Act (7 U.S.C. ch. 54) 30 by the United States department of agriculture (USDA) (Code 31 sections 162.7, 162.8, and 162.9A). 32 BACKGROUND —— REQUIREMENTS. A registrant or state licensee 33 (registrant/state licensee) is required to maintain business 34 records (records) while a permittee may but is not required 35 -4- LSB 5256YH (4) 90 da/ns 4/ 6

H.F. 2039 to maintain those records. The Code chapter requires that a 1 commercial establishment must ensure that an animal in its 2 possession or under its control is provided a minimum standard 3 of care (adequate feed, adequate water, housing facilities, 4 sanitary control, grooming, and veterinary care) (Code section 5 162.10A). A commercial establishment must comply with DALS’ 6 rules. However, the standard of care for a permittee cannot be 7 more restrictive than the federal Animal Welfare Act. 8 BACKGROUND —— ENTERING ONTO THE BUSINESS PREMISES OF A 9 COMMERCIAL ESTABLISHMENT. DALS may inspect a registrant/state 10 licensee by entering onto its business premises and may inspect 11 its records (Code section 162.10B). Alternatively, DALS may 12 monitor a permittee by entering onto its business premises 13 for the limited purpose of determining whether the permittee 14 is providing for the required standard of care (Code section 15 162.10C). In order to enter onto the premises of a permittee, 16 DALS must have reasonable cause supported by an oral or written 17 complaint or a report filed by the USDA. 18 BACKGROUND —— REGULATION OF COMMERCIAL BREEDERS. A 19 commercial establishment that possesses or controls dogs 20 or cats as a commercial breeder operates either as a 21 registrant/state licensee or permittee. A commercial breeder 22 is a person engaged in the business of breeding dogs or cats, 23 or who sells, exchanges, or leases dogs or cats, in return 24 for consideration. However, an exception applies to exclude 25 a person who owns or harbors three or fewer breeding males or 26 females (Code section 162.2). 27 BILL’S PROVISIONS —— INSPECTION OR MONITORING OF COMMERCIAL 28 ESTABLISHMENTS OPERATING AS A REGISTRANT/STATE LICENSEE OR 29 PERMITTEE. The bill provides for inspecting a commercial 30 establishment operated by a registrant/state licensee, or 31 monitoring a commercial establishment operated by a permittee, 32 on both a priority and scheduled basis. DALS inspects or 33 monitors a commercial establishment on a priority basis 34 according to its criteria, which is the same process that 35 -5- LSB 5256YH (4) 90 da/ns 5/ 6

H.F. 2039 exists under current law, with one exception. If DALS enters 1 onto the business premises of a commercial establishment, 2 it must determine whether the registrant/state licensee or 3 permittee is complying with the respective standard of care 4 requirements. For inspecting or monitoring a commercial 5 establishment on a scheduled basis, DALS must enter onto the 6 business premises of each commercial establishment operating 7 as a commercial breeder (state licensee or permittee) once 8 each 12-month period to determine compliance with applicable 9 standard of care requirements. There is no reasonable cause 10 requirement that must support DALS’ entry onto the permittee’s 11 commercial establishment. 12 APPLICABLE PENALTIES. DALS is authorized to establish, 13 impose, and assess a civil penalty of not more than $500 for 14 a violation of the Code chapter by a commercial establishment 15 subject to registration/state license or permit (Code 16 section 162.12A). DALS may also suspend or revoke the 17 registration/state license or permit (Code section 162.10D). 18 -6- LSB 5256YH (4) 90 da/ns 6/ 6