S.F. 2135 Section 1. Section 162.2, subsection 6, Code 2026, is 1 amended to read as follows: 2 6. “Authorization” means a state license, certificate of 3 registration , or permit or state license issued or renewed by 4 the department to a commercial establishment as provided in 5 section 162.2A . 6 Sec. 2. Section 162.2, subsection 17, Code 2026, is amended 7 by striking the subsection. 8 Sec. 3. Section 162.2, subsection 26, Code 2026, is amended 9 by striking the subsection and inserting in lieu thereof the 10 following: 11 26. “State licensee” means a boarding kennel, commercial 12 breeder, commercial kennel, dealer, pet shop, or public auction 13 required to operate under a state license issued or renewed by 14 the department pursuant to section 162.2A. 15 Sec. 4. Section 162.2A, subsections 1, 2, and 4, Code 2026, 16 are amended to read as follows: 17 1. The department shall provide for regulate the operation 18 of a commercial establishment by issuing or renewing an 19 authorization, including any of the following: 20 a. A certificate of registration for to a pound, animal 21 shelter, or research facility. 22 b. A state license for to a boarding kennel, commercial 23 breeder, commercial kennel, or dealer, pet shop , or public 24 auction . 25 c. A state license or permit for a commercial breeder, 26 dealer, or public auction. A federal licensee must apply for 27 and be issued either a permit or a state license in lieu of a 28 permit. 29 2. A person must be issued a separate state license, 30 certificate of registration , or permit state license for each 31 commercial establishment owned or operated by the person. 32 4. The An authorization expires on an annual basis as 33 period is twelve months as provided by the department , and . An 34 authorization must be renewed by the commercial establishment 35 -1- LSB 6109XS (3) 91 da/js 1/ 15

S.F. 2135 on an annual basis on or before the authorization’s expiration 1 date. 2 Sec. 5. Section 162.2A, Code 2026, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 3A. The department shall refuse to approve 5 an application by a commercial establishment for the issuance 6 of an authorization, if there is substantial evidence that the 7 commercial establishment will not provide a standard of care 8 required for animals in its possession or under its control as 9 provided in section 162.10A. 10 Sec. 6. Section 162.2A, subsection 5, Code 2026, is amended 11 by striking the subsection. 12 Sec. 7. Section 162.2B, subsection 1, Code 2026, is amended 13 to read as follows: 14 1. a. A commercial establishment shall pay an authorization 15 fees fee to the department for the issuance or renewal of a 16 certificate of registration, state license, or permit. an 17 authorization as follows: 18 a. (1) For the issuance or renewal of a certificate of 19 registration, seventy-five dollars. 20 b. (2) For the issuance or renewal of a state license or 21 permit , one hundred seventy-five dollars. 22 b. If the department is required to conduct more than 23 one inspection of a commercial establishment during the same 24 authorization period as provided in section 162.10B because 25 the commercial establishment violated a standard of care as 26 provided in section 162.10A, the commercial establishment 27 shall pay the department a reinspection fee for a second and 28 each subsequent inspection. The amount of the reinspection 29 fee shall equal one hundred fifty dollars plus the cost of the 30 round-trip mileage incurred by the department to conduct the 31 inspection at the standard mileage rate for the department. 32 Sec. 8. Section 162.3, Code 2026, is amended to read as 33 follows: 34 162.3 Operation of a pound —— certificate of registration as 35 -2- LSB 6109XS (3) 91 da/js 2/ 15

S.F. 2135 registrant . 1 1. A pound shall only operate as a registrant under 2 this chapter pursuant to a certificate of registration an 3 authorization issued or renewed by the department as provided 4 in section 162.2A , regardless of whether the animal shelter is 5 a federal licensee . 6 2. A pound may sell dogs or cats under its control if 7 sales are allowed by the department. The pound shall maintain 8 records as required by the department in order for the 9 department to ensure the pound’s compliance with the provisions 10 of this chapter . 11 Sec. 9. Section 162.4, Code 2026, is amended to read as 12 follows: 13 162.4 Operation of an animal shelter —— certificate of 14 registration as registrant . 15 1. An animal shelter shall only operate as a registrant 16 under this chapter pursuant to a certificate of registration an 17 authorization issued or renewed by the department as provided 18 in section 162.2A , regardless of whether the animal shelter is 19 a federal licensee . 20 2. An animal shelter may sell dogs or cats if sales are 21 allowed by the department. The animal shelter facility shall 22 maintain records as required by the department in order for the 23 department to ensure the animal shelter’s compliance with the 24 provisions of this chapter . 25 Sec. 10. Section 162.4A, Code 2026, is amended to read as 26 follows: 27 162.4A Operation of a research facility —— certificate of 28 registration as registrant . 29 1. A research facility shall only operate as a registrant 30 under this chapter pursuant to a certificate of registration an 31 authorization issued by the department as provided in section 32 162.2A , regardless of whether the research facility is a 33 federal licensee . The 34 2. A research facility shall maintain records as required 35 -3- LSB 6109XS (3) 91 da/js 3/ 15

S.F. 2135 by the department in order for the department to ensure the 1 research facility’s compliance with the provisions of this 2 chapter . 3 3. A research facility 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. 11. Section 162.5, Code 2026, is amended to read as 8 follows: 9 162.5 Operation of a pet shop —— as state license licensee . 10 1. A pet shop shall only operate as a state licensee under 11 this chapter pursuant to a state license an authorization 12 issued or renewed by the department pursuant to section 162.2A , 13 regardless of whether the pet shop is a federal licensee . 14 2. The pet shop shall maintain records as required by the 15 department in order for the department to ensure the pet shop’s 16 compliance with the provisions of this chapter . 17 3. A pet shop shall not purchase a dog or cat from 18 a commercial establishment that does not have a valid 19 authorization issued or renewed under this chapter or a similar 20 authorization issued or renewed by another state. 21 Sec. 12. Section 162.5A, Code 2026, is amended to read as 22 follows: 23 162.5A Operation of a boarding kennel —— as state license 24 licensee . 25 1. A boarding kennel shall only operate as a state 26 licensee under this chapter pursuant to a state license an 27 authorization issued by the department as provided in section 28 162.2A , regardless of whether the boarding kennel is a federal 29 licensee . The 30 2. A boarding kennel shall maintain records as required 31 by the department in order for the department to ensure the 32 boarding kennel’s compliance with the provisions of this 33 chapter . 34 3. A boarding kennel shall not purchase a dog or cat 35 -4- LSB 6109XS (3) 91 da/js 4/ 15

S.F. 2135 from a commercial establishment that does not have a valid 1 authorization issued or renewed under this chapter or a similar 2 authorization issued or renewed by another state. 3 Sec. 13. Section 162.6, Code 2026, is amended to read as 4 follows: 5 162.6 Operation of a commercial kennel —— as state license 6 licensee . 7 1. A commercial kennel shall only operate as a state 8 licensee under this chapter pursuant to a state license an 9 authorization issued or renewed by the department as provided 10 in section 162.2A , regardless of whether the commercial kennel 11 is a federal licensee . 12 2. A commercial kennel shall maintain records as required 13 by the department in order for the department to ensure the 14 commercial kennel’s compliance with the provisions of this 15 chapter . 16 3. A commercial kennel shall not purchase a dog or cat 17 from a commercial establishment that does not have a valid 18 authorization issued or renewed under this chapter or a similar 19 authorization issued or renewed by another state. 20 Sec. 14. Section 162.7, Code 2026, is amended to read as 21 follows: 22 162.7 Operation of a dealer —— as state license or permit 23 licensee . 24 1. A dealer shall only operate as a state licensee under 25 this chapter pursuant to a state license, or a permit, an 26 authorization issued or renewed by the department as provided 27 in section 162.2A , regardless of whether the dealer is a 28 federal licensee . 29 2. A dealer who is a state licensee shall maintain records 30 as required by the department in order for the department to 31 ensure compliance with the provisions of this chapter . A 32 dealer who is a permittee may but is not required to maintain 33 records. 34 3. A dealer shall not purchase a dog or cat from 35 -5- LSB 6109XS (3) 91 da/js 5/ 15

S.F. 2135 a commercial establishment that does not have a valid 1 authorization issued or renewed under this chapter or a similar 2 authorization issued or renewed by another state. 3 Sec. 15. Section 162.8, Code 2026, is amended to read as 4 follows: 5 162.8 Operation of a commercial breeder —— as state license 6 or permit licensee . 7 1. A commercial breeder shall only operate as a state 8 licensee under this chapter pursuant to a state license, or a 9 permit, an authorization issued or renewed by the department 10 as provided in section 162.2A , regardless of whether the 11 commercial breeder is a federal licensee . 12 2. A commercial breeder who is a state licensee shall 13 maintain records as required by the department in order for the 14 department to ensure the commercial breeder’s compliance with 15 the provisions of this chapter . A commercial breeder who is a 16 permittee may but is not required to maintain records. 17 3. A commercial breeder shall not purchase a dog or cat 18 from a commercial establishment that does not have a valid 19 authorization issued or renewed under this chapter or a similar 20 authorization issued or renewed by another state. 21 Sec. 16. Section 162.9A, Code 2026, is amended to read as 22 follows: 23 162.9A Operation of a public auction —— as state license or 24 permit licensee . 25 1. A public auction shall only operate as a state licensee 26 under this chapter pursuant to a state license, or a permit, an 27 authorization issued or renewed by the department as provided 28 in section 162.2A , regardless of whether the public auction is 29 a federal licensee . 30 2. A public auction which is a state licensee shall 31 maintain records as required by the department in order for 32 the department to ensure the public auction’s compliance with 33 the provisions of this chapter . A public auction which is a 34 permittee may but is not required to maintain records. 35 -6- LSB 6109XS (3) 91 da/js 6/ 15

S.F. 2135 3. A public auction shall not purchase a dog or cat 1 from a commercial establishment that does not have a valid 2 authorization issued or renewed under this chapter or a similar 3 authorization issued or renewed by another state. 4 Sec. 17. Section 162.10A, subsection 1, Code 2026, is 5 amended by adding the following new paragraph: 6 NEW PARAGRAPH . c. The department shall adopt all rules 7 necessary or desirable to fully provide for an animal’s 8 standard of care. 9 Sec. 18. Section 162.10A, subsection 2, Code 2026, is 10 amended by striking the subsection. 11 Sec. 19. Section 162.10B, Code 2026, is amended to read as 12 follows: 13 162.10B Commercial establishments —— inspecting state 14 licensees and registrants inspections . 15 1. The department shall inspect a commercial establishment 16 once during the commercial establishment’s authorization period 17 as provided in section 162.2A. However, the department may 18 inspect a commercial establishment more than once during the 19 same authorization period if the department determines that the 20 inspection is necessary in order to administer and enforce the 21 provisions of this chapter. 22 2. The department may shall inspect the a commercial 23 establishment of a registrant or state licensee by entering 24 onto its business premises at any time during normal working 25 hours. The department may shall inspect records required to 26 be maintained by the state licensee or registrant commercial 27 establishment as provided in this chapter . If the owner , 28 operator, or person in charge of the commercial establishment 29 refuses admittance, the department may obtain an administrative 30 search warrant issued under section 808.14 . 31 Sec. 20. Section 162.10D, Code 2026, is amended to read as 32 follows: 33 162.10D Commercial establishments —— disciplinary actions 34 Disciplinary action —— suspending or revoking authorization . 35 -7- LSB 6109XS (3) 91 da/js 7/ 15

S.F. 2135 1. The department may take disciplinary action against a 1 person commercial establishment as provided in this section or 2 section 162.12A. The department may take disciplinary action 3 under this section by suspending or revoking the person’s 4 commercial establishment’s authorization for violating a 5 provision of this chapter or , committing an offense under 6 chapter 717B , or who commits committing an unlawful practice 7 under section 714.16 . 8 2. a. The department may require an owner, operator, or 9 employee of a commercial establishment subject to disciplinary 10 action under subsection 1 to complete a continuing education 11 program as a condition for retaining an authorization. This 12 section paragraph does not prevent a person from voluntarily 13 participating in a continuing education program. 14 3. b. The department shall administer the continuing 15 education program by either providing direct instruction or 16 selecting persons to provide such instruction. The department 17 is not required to compensate persons for providing the 18 instruction, and may require attendees to pay reasonable 19 fees necessary to compensate the department providing 20 the instruction or a person selected by the department to 21 provide the instruction. The department shall, to every 22 extent possible, select persons to provide the instruction 23 by consulting with organizations that represent commercial 24 establishments, including but not limited to the Iowa pet 25 breeders association. 26 4. c. The department shall establish the criteria for a 27 continuing education program which shall include at least three 28 and not more than eight hours of instruction. The department 29 shall provide for the program’s beginning and ending dates. 30 However, a person must complete the program in twelve months 31 or less. 32 Sec. 21. Section 162.11, subsection 1, Code 2026, is amended 33 by striking the subsection. 34 Sec. 22. Section 162.12A, Code 2026, is amended to read as 35 -8- LSB 6109XS (3) 91 da/js 8/ 15

S.F. 2135 follows: 1 162.12A Civil Disciplinary action —— civil penalties. 2 The department shall establish, impose, and assess may 3 take disciplinary action against a commercial establishment 4 as provided in this section or section 162.10D. The 5 department may take disciplinary action under this section 6 by establishing, imposing, and assessing civil penalties 7 for violations of this chapter . The department may by rule 8 establish a schedule of civil penalties for violations of this 9 chapter . All civil penalties collected under this section 10 shall be deposited into the general fund of the state. 11 1. a. A commercial establishment that operates pursuant 12 to an authorization issued or renewed under this chapter is 13 subject to a civil penalty of not more than five hundred one 14 thousand dollars, regardless of the number of animals possessed 15 or controlled by the commercial establishment, for violating 16 this chapter . Except as provided in paragraph “b” , each day 17 that a violation continues shall be deemed a separate offense. 18 b. This paragraph applies to a commercial establishment 19 that violates a standard of care involving housing as provided 20 in section 162.10A . The departmental official who makes 21 a determination that a violation exists shall provide a 22 corrective plan to the commercial establishment describing how 23 the violation will be corrected within a compliance period of 24 not more than fifteen days from the date of approval by the 25 official of the corrective plan. The civil penalty shall not 26 exceed five hundred one thousand dollars for the first day 27 of the violation. After that day, the department shall not 28 impose a civil penalty for the violation during the compliance 29 period. The department shall not impose an additional civil 30 penalty, unless the commercial establishment fails to correct 31 the violation by the end of the compliance period. If the 32 commercial establishment fails to correct the violation by 33 the end of the compliance period, each day that the violation 34 continues shall be deemed a separate offense. 35 -9- LSB 6109XS (3) 91 da/js 9/ 15

S.F. 2135 2. A commercial establishment that does not operate 1 pursuant to an authorization issued or renewed under this 2 chapter is subject to a civil penalty of not more than one two 3 thousand dollars, regardless of the number of animals possessed 4 or controlled by the commercial establishment, for violating 5 this chapter . Each day that a violation continues shall be 6 deemed a separate offense. 7 Sec. 23. Section 717B.2, subsection 2, paragraph l, Code 8 2026, is amended to read as follows: 9 l. An act required to be carried out by a commercial 10 establishment to care for an animal in its possession or 11 under its control as described in section 162.10A, subsection 12 1, provided that the commercial establishment complies 13 with applicable standard of care requirements pursuant to 14 subsections 1 and 2 of that provided in that section , including 15 applicable rules adopted by the department . 16 Sec. 24. Section 717B.3, subsection 2, Code 2026, is amended 17 to read as follows: 18 2. This section does not apply to any of the following: 19 a. A person commercial establishment operating as an animal 20 shelter, boarding kennel, commercial breeder, commercial 21 kennel, dealer, pet shop, pound, or public auction, pursuant 22 to an authorization issued or renewed an authorization to 23 operate a commercial establishment, or a person acting under 24 the direction or supervision of that person by the department 25 pursuant to section 162.2A , if all of the following apply: 26 (1) The animal, as described in subsection 1 , was maintained 27 as part of the commercial establishment’s operation. 28 (2) In providing conditions for the welfare of the 29 animal, as described in subsection 1 , the person commercial 30 establishment complied with the standard of care requirements 31 provided in section 162.10A, subsection 1, including any 32 applicable rules adopted by the department applying to any of 33 the following: . 34 (a) A state licensee or registrant operating pursuant to 35 -10- LSB 6109XS (3) 91 da/js 10/ 15

S.F. 2135 section 162.10A, subsection 2 , paragraph “a” . 1 (b) A permittee operating pursuant to section 162.10A, 2 subsection 2 , paragraph “b” . 3 b. A commercial establishment operating as a research 4 facility , as defined in section 162.2 , pursuant to an 5 authorization issued or renewed by the department pursuant 6 to section 162.2A if the research facility has been issued 7 or renewed a valid authorization by the department pursuant 8 to chapter 162 , and performs functions within the scope of 9 accepted practices and disciplines associated with the research 10 facility. 11 Sec. 25. Section 717B.3A, subsection 2, paragraph k, Code 12 2026, is amended to read as follows: 13 k. An act required to be carried out by a commercial 14 establishment to care for an animal in its possession or 15 under its control as described provided in section 162.10A , 16 subsection 1, provided that the commercial establishment 17 complies with applicable standard of care requirements pursuant 18 to subsections 1 and 2 of that section . 19 Sec. 26. Section 717F.7, subsection 20, paragraph b, Code 20 2026, is amended to read as follows: 21 b. The person is registered by the department of agriculture 22 and land stewardship. Upon a complaint filed with the 23 department of agriculture and land stewardship, the department 24 may inspect the premises or investigate the practices of the 25 registered person and suspend or revoke the registration for 26 the same causes and in the same manner as provided in section 27 162.12 162.10B . 28 Sec. 27. REPEAL. Sections 162.10C and 162.12, Code 2026, 29 are repealed. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 BACKGROUND —— REGULATION. The federal and state governments 34 regulate the care of animals possessed or controlled by certain 35 -11- LSB 6109XS (3) 91 da/js 11/ 15

S.F. 2135 commercial establishments. The United States department of 1 agriculture (USDA) provides for such regulation under the 2 federal Animal Welfare Act, 7 U.S.C. ch. 54. In Iowa, the 3 department of agriculture and land stewardship (DALS) regulates 4 animals, other than agricultural animals, that are owned or 5 controlled by commercial establishments (Code chapter 162). A 6 commercial establishment includes nonprofit organizations that 7 temporarily hold animals, research facilities, and various 8 types of businesses that breed, board, or sell animals (Code 9 section 162.2). 10 BACKGROUND —— AUTHORIZATIONS. Each type of commercial 11 establishment must operate under an authorization issued and 12 annually renewed by DALS. A certificate of registration must 13 be issued or renewed to a pound (Code section 162.3), animal 14 shelter (Code section 162.4), or research facility (Code 15 section 162.4A); a state license must be issued or renewed 16 to a pet shop (Code section 162.5), boarding kennel (Code 17 section 162.5A), or commercial kennel (Code section 162.6). A 18 state license must also be issued to a dealer (Code section 19 162.7), commercial breeder (Code section 162.8), or public 20 auction (Code section 162.9A). However, these three types of 21 commercial establishments may operate under a federal license 22 issued and renewed by USDA, if also issued and renewed a permit 23 by DALS. 24 BACKGROUND —— FEES AND FUND. A commercial establishment 25 must pay a fee to DALS for being issued or renewed an 26 authorization (Code section 162.2B). Moneys collected in 27 fees by DALS are deposited into a commercial establishment 28 fund (fund) (Code section 162.2C). Moneys in the fund 29 are appropriated to DALS for purposes of carrying out the 30 provisions of Code chapter 162. 31 BACKGROUND —— STANDARD OF CARE. A general standard of care 32 applies to all commercial establishments. The commercial 33 establishment must ensure that an animal in its possession 34 or under its control is not lacking adequate feed, adequate 35 -12- LSB 6109XS (3) 91 da/js 12/ 15

S.F. 2135 water, housing facilities, sanitary control, grooming practices 1 affecting the health of the animal, and veterinary care (Code 2 section 162.10A). A registrant or state licensee must also 3 comply with DALS’s rules adopted to administer and enforce this 4 standard of care. A permittee may meet the standard of care 5 without complying with DALS’s rules. DALS may adopt rules 6 implementing a standard of care for permitted establishments 7 so long as the rules are not more restrictive than the federal 8 Animal Welfare Act. A person who commits animal cruelty under 9 Code chapter 717B fails to meet the standard of care as a 10 matter of law. 11 BACKGROUND —— RECORDKEEPING AND INSPECTIONS. A registrant 12 or state licensee must maintain business records under state 13 law. A permittee may but is not required to maintain business 14 records. DALS may inspect a registrant or state licensee by 15 entering onto its premises and may inspect its records (Code 16 section 162.10B). DALS may monitor a permittee by entering 17 onto its premises for the limited purpose of determining 18 whether the permittee is providing for the required standard 19 of care (Code section 162C.10). In order to enter onto the 20 premises of a permittee, DALS must have reasonable cause 21 supported by an oral or written complaint or a report filed by 22 USDA. 23 BACKGROUND —— DISCIPLINARY ACTIONS. DALS may take 24 disciplinary action against a commercial establishment 25 by suspending or revoking the commercial establishment’s 26 authorization (Code section 162.10D). DALS may require an 27 owner, operator, or employee of a commercial establishment to 28 complete a continuing education program that is supervised 29 by DALS. Code section 162.12 repeats earlier provisions, 30 including by allowing DALS to deny a certificate of 31 registration or state license based on standard of care. 32 BACKGROUND —— PENALTIES. DALS may establish, impose, and 33 assess a civil penalty for an act committed by a commercial 34 establishment that violates an applicable regulation. For 35 -13- LSB 6109XS (3) 91 da/js 13/ 15

S.F. 2135 an authorized commercial establishment, the amount of the 1 civil penalty cannot exceed $500 per day of a violation, 2 including failing to comply with the required standard of 3 care. For operating a commercial establishment without an 4 authorization, the civil penalty cannot exceed $1,000 per day 5 of a violation (Code section 162.12A). A person who operates 6 a commercial establishment without an authorization, or a 7 commercial establishment that violates the standard of care, 8 is guilty of a simple misdemeanor (Code section 162.13). A 9 simple misdemeanor is punishable by confinement for no more 10 than 30 days and a fine of at least $105 but not more than $855. 11 The person may be required to relinquish animals to DALS for 12 final disposition. The person may also be subject to criminal 13 penalties under Code chapter 717B for animal neglect, abuse, 14 or torture. 15 BILL’S PROVISIONS —— ELIMINATION OF PERMITS. This bill 16 provides that a commercial breeder, dealer, or public auction 17 must operate under a state license rather than a permit. The 18 commercial breeder, dealer, or public auction is subject to the 19 same regulations as other state licensees, including standard 20 of care, maintenance of records, and inspection requirements. 21 BILL’S PROVISIONS —— ELIMINATION OF DUPLICATIVE PROVISION. 22 The bill eliminates a regulation governing disciplinary action 23 included in other provisions (Code section 162.12). 24 BILL’S PROVISIONS —— INSPECTION REQUIREMENTS AND FEES. The 25 bill requires DALS to inspect each commercial establishment at 26 least once during its annual authorization period. If DALS 27 inspects a commercial establishment more than once during 28 that period, the commercial establishment must pay DALS a 29 reinspection fee equal to $150 plus the cost of mileage (Code 30 section 162.2B). The moneys are deposited into the fund (Code 31 section 162.2C). 32 BILL’S PROVISIONS —— INCREASE IN CIVIL PENALTIES. The 33 bill doubles the maximum amount of a civil penalty that 34 may be imposed for violating a regulation by a commercial 35 -14- LSB 6109XS (3) 91 da/js 14/ 15