H.F. 2674 Section 1. Section 162.2, subsection 7, Code 2026, is 1 amended by striking the subsection. 2 Sec. 2. Section 162.2, subsections 8 and 9, Code 2026, are 3 amended to read as follows: 4 8. a. “Commercial breeder” means a person, engaged in the 5 business of breeding dogs or cats, who sells, exchanges, or 6 leases dogs or cats in return for consideration, or who offers 7 to do so, whether or not the animals are raised, trained, 8 groomed, or boarded by the person. A 9 b. Notwithstanding paragraph “a” , “commercial breeder” 10 does not mean a person who owns or harbors three six or fewer 11 breeding males or females is not a commercial breeder females, 12 age twelve months or older . 13 9. “Commercial establishment” or “establishment” means an 14 animal shelter, boarding kennel, commercial breeder, commercial 15 kennel, dealer, pet shop, pound, public auction, or research 16 facility. 17 Sec. 3. Section 162.2, subsection 26, paragraph a, Code 18 2026, is amended to read as follows: 19 a. A boarding kennel, commercial kennel , or pet shop to whom 20 a state license is issued by the department pursuant to section 21 162.2A . 22 Sec. 4. Section 162.2A, subsection 1, paragraph b, Code 23 2026, is amended to read as follows: 24 b. A state license for a boarding kennel, commercial kennel , 25 or pet shop. 26 Sec. 5. Section 162.4A, Code 2026, is amended to read as 27 follows: 28 162.4A Operation of a research facility —— certificate of 29 registration. 30 A research facility shall only operate pursuant to a 31 certificate of registration issued by the department as 32 provided in section 162.2A . The research facility shall 33 maintain records as required by the department in order for the 34 department to ensure the research facility’s compliance with 35 -1- LSB 5459HV (3) 91 da/js 1/ 11

H.F. 2674 the provisions of this chapter . A research facility shall not 1 purchase a dog or cat from a commercial establishment that does 2 not have a valid authorization issued or renewed under this 3 chapter or a similar authorization issued or renewed by another 4 state . 5 Sec. 6. Section 162.5, Code 2026, is amended to read as 6 follows: 7 162.5 Operation of a pet shop —— state license. 8 A pet shop shall only operate pursuant to a state license 9 issued or renewed by the department pursuant to section 10 162.2A . The pet shop shall maintain records as required by the 11 department in order for the department to ensure the pet shop’s 12 compliance with the provisions of this chapter . A pet shop 13 shall not purchase a dog or cat from a commercial establishment 14 that does not have a valid authorization issued or renewed 15 under this chapter or a similar authorization issued or renewed 16 by another state . 17 Sec. 7. Section 162.6, Code 2026, is amended to read as 18 follows: 19 162.6 Operation of a commercial kennel —— state license. 20 A commercial kennel shall only operate pursuant to a state 21 license issued or renewed by the department as provided in 22 section 162.2A . A commercial kennel shall maintain records 23 as required by the department in order for the department to 24 ensure the commercial kennel’s compliance with the provisions 25 of this chapter . A commercial kennel shall not purchase a dog 26 or cat from a commercial establishment that does not have a 27 valid authorization issued or renewed under this chapter or a 28 similar authorization issued or renewed by another state . 29 Sec. 8. Section 162.7, Code 2026, is amended to read as 30 follows: 31 162.7 Operation of a dealer —— state license or permit. 32 A dealer shall only operate pursuant to a state license, 33 or a permit , issued or renewed by the department as provided 34 in section 162.2A . A dealer who is a state licensee shall 35 -2- LSB 5459HV (3) 91 da/js 2/ 11

H.F. 2674 maintain records as required by the department in order for the 1 department to ensure compliance with the provisions of this 2 chapter . A dealer who is a permittee may but is not required 3 to maintain records. A dealer shall not purchase a dog or cat 4 from a commercial establishment that does not have a valid 5 authorization issued or renewed under this chapter or a similar 6 authorization issued or renewed by another state . 7 Sec. 9. Section 162.8, Code 2026, is amended to read as 8 follows: 9 162.8 Operation of a commercial breeder —— state license or 10 permit. 11 A commercial breeder shall only operate pursuant to a state 12 license, or a permit, issued or renewed by the department 13 as provided in section 162.2A . A commercial breeder who is 14 a state licensee shall maintain records as required by the 15 department in order for the department to ensure the commercial 16 breeder’s compliance with the provisions of this chapter . A 17 commercial breeder who is a permittee may but is not required 18 to maintain records. A commercial breeder shall not purchase a 19 dog or cat from a commercial establishment that does not have a 20 valid authorization issued or renewed under this chapter or a 21 similar authorization issued or renewed by another state . 22 Sec. 10. Section 162.9A, Code 2026, is amended to read as 23 follows: 24 162.9A Operation of a public auction —— state license or 25 permit. 26 A public auction shall only operate pursuant to a state 27 license, or a permit, issued or renewed by the department as 28 provided in section 162.2A . A public auction which that is 29 a state licensee shall maintain records as required by the 30 department in order for the department to ensure the public 31 auction’s compliance with the provisions of this chapter . 32 A public auction which that is a permittee may but is not 33 required to maintain records. A public auction shall not 34 purchase a dog or cat from a commercial establishment that does 35 -3- LSB 5459HV (3) 91 da/js 3/ 11

H.F. 2674 not have a valid authorization issued or renewed under this 1 chapter or a similar authorization issued or renewed by another 2 state . 3 Sec. 11. Section 162.10B, Code 2026, is amended to read as 4 follows: 5 162.10B Commercial establishments —— inspecting state 6 licensees and registrants. 7 1. The department may inspect the commercial establishment 8 of a registrant or state licensee by entering onto its 9 business premises at any time during normal working hours. The 10 department may inspect records required to be maintained by the 11 state licensee or registrant as provided in this chapter . If 12 the owner or person in charge of the commercial establishment 13 refuses admittance, the department may obtain an administrative 14 search warrant issued under section 808.14 . 15 2. a. The number of inspections of a commercial 16 establishment conducted by the department under subsection 17 1 shall correspond to a tier assigned to the commercial 18 establishment by the department. The department shall 19 establish two or more tiers based on factors that assess the 20 level of risk that commercial establishments assigned to that 21 tier may violate the standard of care requirements described in 22 section 162.10A, subsection 1, to a degree that endangers the 23 health of an animal in the possession or under the control of 24 the commercial establishment. 25 b. Paragraph “a” does not limit the department from 26 conducting an unscheduled inspection as necessary to ensure a 27 commercial establishment is complying with the requirements of 28 this chapter. 29 c. If the department determines that there is credible 30 evidence that a commercial establishment may be violating a 31 standard of care requirement as described in section 162.10A, 32 subsection 1, the department shall inspect the commercial 33 establishment within twenty-four hours of the time that it made 34 the determination. 35 -4- LSB 5459HV (3) 91 da/js 4/ 11

H.F. 2674 Sec. 12. Section 162.10C, subsection 2, Code 2026, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . c. A United States department of agriculture 3 inspection report indicating that the permittee is breaching 4 a standard of care required of permittees by section 162.10A. 5 The department of agriculture and land stewardship shall not 6 enter onto the permittee’s premises based on that report two 7 years after the date that the report was published. 8 Sec. 13. Section 162.10D, Code 2026, is amended by adding 9 the following new subsection: 10 NEW SUBSECTION . 01. a. The department may suspend or 11 revoke an authorization issued or renewed to a commercial 12 establishment under this chapter for a violation of a provision 13 of this chapter. 14 b. A violation of this chapter includes any of the 15 following: 16 (1) The refusal of a commercial establishment to allow 17 the department to conduct an inspection pursuant to a search 18 warrant. 19 (2) The effort of a person associated with the commercial 20 establishment to interfere with an inspection. 21 Sec. 14. Section 162.11, subsection 2, Code 2026, is amended 22 to read as follows: 23 2. This chapter does not apply to a place or establishment 24 which that operates under the immediate supervision of a 25 duly licensed veterinarian as a hospital where animals are 26 harbored, hospitalized, and cared for incidental to the 27 treatment, prevention, or alleviation of disease processes 28 during the routine practice of the profession of veterinary 29 medicine. However, if animals are accepted by such a place, 30 establishment, or hospital for boarding or grooming for a 31 consideration, the place, establishment, or hospital is subject 32 to the licensing or registration requirements applicable to a 33 boarding kennel or commercial kennel under this chapter and the 34 rules adopted by the secretary. 35 -5- LSB 5459HV (3) 91 da/js 5/ 11

H.F. 2674 Sec. 15. Section 162.12, Code 2026, is amended to read as 1 follows: 2 162.12 Denial or revocation of license or registration. 3 A certificate of registration may be denied to any animal 4 shelter, pound, or research facility and a state license may 5 be denied to any public auction, boarding kennel, commercial 6 kennel, pet shop, commercial breeder, or dealer, or an existing 7 certificate of registration or state license may be revoked by 8 the secretary if, after public hearing, it is determined that 9 the housing facilities or primary enclosures are inadequate 10 under this chapter or if the feeding, watering, cleaning, 11 and housing practices at the pound, animal shelter, public 12 auction, pet shop, boarding kennel, commercial kennel, or 13 research facility, or those practices by the commercial breeder 14 or dealer, are not in compliance with this chapter or with 15 the rules adopted pursuant to this chapter . The premises of 16 each registrant or state licensee shall be open for inspection 17 during normal business hours. 18 Sec. 16. Section 162.12A, Code 2026, is amended to read as 19 follows: 20 162.12A Civil penalties. 21 1. a. The department shall establish, impose, and assess 22 civil penalties for violations of this chapter . 23 b. A violation of this chapter includes any of the 24 following: 25 (1) The refusal by a commercial establishment to allow the 26 department to inspect the commercial establishment as provided 27 in section 162.10D. 28 (2) The effort of a person associated with the commercial 29 establishment to interfere with a department’s inspection as 30 provided in section 162.10D. 31 c. The department may by rule establish a schedule of civil 32 penalties for violations of this chapter . 33 d. All civil penalties collected under this section shall be 34 deposited into the general fund of the state. 35 -6- LSB 5459HV (3) 91 da/js 6/ 11

H.F. 2674 1. 2. a. A commercial establishment that operates pursuant 1 to an authorization issued or renewed under this chapter is 2 subject to a civil penalty of not more than five hundred 3 dollars, regardless of the number of animals possessed or 4 controlled by the commercial establishment, for violating this 5 chapter . Except as provided in paragraph “b” , each day that a 6 violation continues shall be deemed a separate offense. 7 b. This paragraph applies to a commercial establishment 8 that violates a standard of care involving housing as provided 9 in section 162.10A . The departmental official who makes 10 a determination that a violation exists shall provide a 11 corrective plan to the commercial establishment describing how 12 the violation will be corrected within a compliance period of 13 not more than fifteen days from the date of approval by the 14 official of the corrective plan. The civil penalty shall not 15 exceed five hundred dollars for the first day of the violation. 16 After that day, the department shall not impose a civil penalty 17 for the violation during the compliance period. The department 18 shall not impose an additional civil penalty, unless the 19 commercial establishment fails to correct the violation by the 20 end of the compliance period. If the commercial establishment 21 fails to correct the violation by the end of the compliance 22 period, each day that the violation continues shall be deemed a 23 separate offense. 24 2. 3. A commercial establishment that does not operate 25 pursuant to an authorization issued or renewed under this 26 chapter is subject to a civil penalty of not more than one 27 thousand dollars, regardless of the number of animals possessed 28 or controlled by the commercial establishment, for violating 29 this chapter . Each day that a violation continues shall be 30 deemed a separate offense. 31 Sec. 17. Section 162.19, Code 2026, is amended to read as 32 follows: 33 162.19 Abandoned animals destroyed. 34 1. Whenever any animal is left with a veterinarian , boarding 35 -7- LSB 5459HV (3) 91 da/js 7/ 11

H.F. 2674 kennel or commercial kennel pursuant to a written agreement and 1 the owner does not claim the animal by the agreed date, the 2 animal shall be deemed abandoned, and a notice of abandonment 3 and its consequences shall be sent within seven days by 4 certified mail to the last known address of the owner. For 5 fourteen days after mailing of the notice the owner shall have 6 the right to reclaim the animal upon payment of all reasonable 7 charges, and after the fourteen days the owner shall be deemed 8 to have waived all rights to the abandoned animal. If despite 9 diligent effort an owner cannot be found for the abandoned 10 animal within another seven days, the veterinarian , boarding 11 kennel, or commercial kennel may humanely destroy the abandoned 12 animal. 13 2. Each veterinarian , boarding kennel or commercial kennel 14 shall warn its patrons of the provisions of this section by a 15 conspicuously posted notice or by conspicuous type in a written 16 receipt. 17 Sec. 18. Section 717A.1, subsection 5, paragraph g, Code 18 2026, is amended by striking the paragraph. 19 Sec. 19. REPEAL. Section 162.5A, Code 2026, is repealed. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 BACKGROUND —— GENERAL. This bill amends Code chapter 24 162, which authorizes the department of agriculture and land 25 stewardship (DALS) to regulate commercial establishments that 26 possess or control nonagricultural animals (Code section 27 162.1), including dogs and cats. The types of regulated 28 commercial establishments include animal shelters, boarding 29 kennels, commercial breeders, commercial kennels, dealers, 30 pet shops, pounds, public auctions, and research facilities 31 (Code section 162.2). A commercial establishment operates 32 under one of three types of authorizations: (1) a certificate 33 of registration for a pound, animal shelter, or research 34 facility; (2) a state license for a boarding kennel, commercial 35 -8- LSB 5459HV (3) 91 da/js 8/ 11

H.F. 2674 kennel, or pet shop; and (3) a state license or a permit for 1 a commercial breeder, dealer, or public auction. A permit is 2 issued to a commercial breeder, dealer, or public auction in 3 lieu of a license if the commercial establishment is federally 4 licensed by the United States department of agriculture 5 pursuant to the federal Animal Welfare Act (see Code section 6 162.2(5)). 7 BACKGROUND —— STANDARD OF CARE. A commercial establishment 8 must ensure that an animal in its possession or under its 9 control is provided an adequate standard of care, including 10 adequate feed, adequate water, housing facilities, sanitary 11 control, grooming practices affecting the health of the animal, 12 and veterinary care (Code section 162.10A). 13 BACKGROUND —— ENTERING ONTO THE PREMISES OF A REGISTRANT OR 14 STATE LICENSEE. DALS may enter onto the business premises of 15 a commercial establishment operating as a registrant or state 16 licensee in order to conduct an inspection of the commercial 17 establishment, including to determine whether animals 18 maintained there are receiving the required standard of care 19 (Code section 162.10C). DALS may also conduct an examination 20 of the commercial establishment’s business records. 21 BACKGROUND —— ENTERING ONTO THE PREMISES OF A PERMITTEE. 22 DALS may enter onto the business premises of a commercial 23 establishment operating as a permittee for the limited purpose 24 of determining whether the permittee is providing animals 25 maintained there the required standard of care. In order to 26 enter onto the premises of a commercial establishment operated 27 by a permittee, DALS must have reasonable cause to suspect 28 that the permittee is not providing for the standard of care 29 required for permittees. 30 BACKGROUND —— DISCIPLINARY ACTIONS. DALS may take 31 disciplinary action against a commercial establishment 32 by suspending or revoking the commercial establishment’s 33 authorization (Code section 162.10D). 34 BACKGROUND —— PENALTIES. A commercial establishment that 35 -9- LSB 5459HV (3) 91 da/js 9/ 11

H.F. 2674 operates pursuant to an authorization is subject to a civil 1 penalty of not more than $500 for a violation of the Code 2 chapter, regardless of the number of animals possessed or 3 controlled by the commercial establishment (Code section 4 162.12A). A commercial establishment that does not operate 5 pursuant to an authorization issued or renewed under the 6 Code chapter is subject to a civil penalty of not more 7 than $1,000 for a violation of the Code chapter, regardless 8 of the number of animals possessed or controlled by the 9 commercial establishment. A person who operates a commercial 10 establishment without an authorization issued or renewed 11 by DALS is guilty of a simple misdemeanor and each day of 12 operation is a separate offense (Code section 162.13). A 13 person who violates a standard of care is also guilty of a 14 simple misdemeanor. A simple misdemeanor is punishable by 15 confinement for no more than 30 days and a fine of at least $105 16 but not more than $855 (Code section 162.13). 17 BILL’S PROVISIONS —— TYPES OF COMMERCIAL ESTABLISHMENTS. 18 Under current law, a commercial breeder is a person who is 19 engaged in the business of breeding more than three male or 20 female dogs or cats. The bill increases that exception to 21 more than six male or female dogs or cats age 12 months or 22 older. Under current law, a commercial kennel is a business 23 that performs grooming, boarding, or training services for dogs 24 or cats and a boarding kennel is a commercial establishment 25 that shelters and maintains dogs or cats. The bill eliminates 26 a boarding kennel as a type of commercial establishment subject 27 to regulation. 28 BILL’S PROVISIONS —— OUT-OF-STATE AUTHORIZATIONS. The bill 29 provides that a commercial establishment is no longer able to 30 do business in this state under an authorization issued or 31 renewed by another state. 32 BILL’S PROVISIONS —— ENTERING ONTO THE PREMISES OF A 33 REGISTRANT OR STATE LICENSEE (INSPECTION). The bill provides 34 requirements for regularly scheduled inspections of a 35 -10- LSB 5459HV (3) 91 da/js 10/ 11

H.F. 2674 commercial establishment that is operated by a registrant or 1 state licensee. DALS is required to establish inspection 2 tiers based on factors that assess the level of risk that a 3 commercial establishment may violate the standard of care 4 requirements. The bill’s provisions do not limit DALS from 5 conducting an unscheduled inspection as necessary to ensure 6 compliance with the requirements of the Code chapter, including 7 standard of care requirements. DALS must conduct an inspection 8 of a commercial establishment within 24 hours of the time that 9 it makes a determination that there is credible evidence that 10 the commercial establishment has violated a standard of care 11 requirement. 12 BILL’S PROVISIONS —— ENTERING ONTO THE PREMISES OF A 13 PERMITTEE (MONITORING COMPLIANCE). The bill provides that 14 DALS may enter onto the premises of a commercial establishment 15 operating as a permittee based on a United States department of 16 agriculture inspection report indicating that the permittee is 17 breaching a standard of care required of permittees. 18 BILL’S PROVISIONS —— DISCIPLINARY ACTION. The bill provides 19 that DALS may suspend or revoke an authorization due to the 20 commercial establishment’s refusal to allow DALS to conduct 21 an inspection pursuant to a search warrant or due to the 22 interference of an inspection by a person associated with the 23 commercial establishment. 24 BILL’S PROVISIONS —— CIVIL PENALTIES. The bill provides 25 that a commercial establishment operating under a registration 26 or state license that fails to allow DALS to conduct an 27 inspection or a person associated with the commercial 28 establishment who interferes with the inspection is subject to 29 a civil penalty. 30 -11- LSB 5459HV (3) 91 da/js 11/ 11