SF 2135 (LSB 6109XS (3) 91)

SENATE FILE 2135

BY  PETERSEN

A BILL FOR

An Act providing for the regulation of commercial establishments possessing or controlling animals other than agricultural animals, providing fees, making appropriations, providing penalties, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 162.2, subsection 6, Code 2026, is amended to read as follows:
   6.  “Authorization” means a state license, certificate of registration, or permit or state license issued or renewed by the department to a commercial establishment as provided in section 162.2A.
    Sec. 2.  Section 162.2, subsection 17, Code 2026, is amended by striking the subsection.
    Sec. 3.  Section 162.2, subsection 26, Code 2026, is amended by striking the subsection and inserting in lieu thereof the following:
   26.  “State licensee” means a boarding kennel, commercial breeder, commercial kennel, dealer, pet shop, or public auction required to operate under a state license issued or renewed by the department pursuant to section 162.2A.
    Sec. 4.  Section 162.2A, subsections 1, 2, and 4, Code 2026, are amended to read as follows:
   1.  The department shall provide for regulate the operation of a commercial establishment by issuing or renewing an authorization, including any of the following:
   a.  A certificate of registration for to a pound, animal shelter, or research facility.
   b.  A state license for to 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, certificate of registration, or permit state license for each commercial establishment owned or operated by the person.
   4.  The An authorization expires on an annual basis as period is twelve months as provided by the department, and. An authorization must be renewed by the commercial establishment on an annual basis on or before the authorization’s expiration date.
    Sec. 5.  Section 162.2A, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  3A.  The department shall refuse to approve an application by a commercial establishment for the issuance of an authorization, if there is substantial evidence that the commercial establishment will not provide a standard of care required for animals in its possession or under its control as provided in section 162.10A.
    Sec. 6.  Section 162.2A, subsection 5, Code 2026, is amended by striking the subsection.
    Sec. 7.  Section 162.2B, subsection 1, Code 2026, is amended to read as follows:
   1.  a.  A commercial establishment shall pay an authorization fees fee to the department for the issuance or renewal of a certificate of registration, state license, or permit. an authorization as follows:
   a.  (1)  For the issuance or renewal of a certificate of registration, seventy-five dollars. 
   b.  (2)  For the issuance or renewal of a state license or permit, one hundred seventy-five dollars. 
   b.  If the department is required to conduct more than one inspection of a commercial establishment during the same authorization period as provided in section 162.10B because the commercial establishment violated a standard of care as provided in section 162.10A, the commercial establishment shall pay the department a reinspection fee for a second and each subsequent inspection. The amount of the reinspection fee shall equal one hundred fifty dollars plus the cost of the round-trip mileage incurred by the department to conduct the inspection at the standard mileage rate for the department.
    Sec. 8.  Section 162.3, Code 2026, is amended to read as follows:
   162.3  Operation of a pound —— certificate of registration as registrant.
   1.  A pound shall only operate as a registrant under this chapter pursuant to a certificate of registration an authorization issued or renewed by the department as provided in section 162.2A, regardless of whether the animal shelter is a federal licensee.
   2.  A pound may sell dogs or cats under its control if sales are allowed by the department. The pound shall maintain records as required by the department in order for the department to ensure the pound’s compliance with the provisions of this chapter.
    Sec. 9.  Section 162.4, Code 2026, is amended to read as follows:
   162.4  Operation of an animal shelter —— certificate of registration as registrant.
   1.  An animal shelter shall only operate as a registrant under this chapter pursuant to a certificate of registration an authorization issued or renewed by the department as provided in section 162.2A, regardless of whether the animal shelter is a federal licensee.
   2.  An animal shelter may sell dogs or cats if sales are allowed by the department. The animal shelter facility shall maintain records as required by the department in order for the department to ensure the animal shelter’s compliance with the provisions of this chapter.
    Sec. 10.  Section 162.4A, Code 2026, is amended to read as follows:
   162.4A  Operation of a research facility —— certificate of registration as registrant.
   1.  A research facility shall only operate as a registrant under this chapter pursuant to a certificate of registration an authorization issued by the department as provided in section 162.2A, regardless of whether the research facility is a federal licensee. The 
   2.  A research facility shall maintain records as required by the department in order for the department to ensure the research facility’s compliance with the provisions of this chapter.
   3.  A research facility 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. 11.  Section 162.5, Code 2026, is amended to read as follows:
   162.5  Operation of a pet shop —— as state license licensee.
   1.  A pet shop shall only operate as a state licensee under this chapter pursuant to a state license an authorization issued or renewed by the department pursuant to section 162.2A, regardless of whether the pet shop is a federal licensee.
   2.  The pet shop shall maintain records as required by the department in order for the department to ensure the pet shop’s compliance with the provisions of this chapter.
   3.  A pet shop 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. 12.  Section 162.5A, Code 2026, is amended to read as follows:
   162.5A  Operation of a boarding kennel —— as state license licensee.
   1.  A boarding kennel shall only operate as a state licensee under this chapter pursuant to a state license an authorization issued by the department as provided in section 162.2A, regardless of whether the boarding kennel is a federal licensee. The 
   2.  A boarding kennel shall maintain records as required by the department in order for the department to ensure the boarding kennel’s compliance with the provisions of this chapter.
   3.  A boarding kennel 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. 13.  Section 162.6, Code 2026, is amended to read as follows:
   162.6  Operation of a commercial kennel —— as state license licensee.
   1.  A commercial kennel shall only operate as a state licensee under this chapter pursuant to a state license an authorization issued or renewed by the department as provided in section 162.2A, regardless of whether the commercial kennel is a federal licensee.
   2.  A commercial kennel shall maintain records as required by the department in order for the department to ensure the commercial kennel’s compliance with the provisions of this chapter.
   3.  A commercial kennel 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. 14.  Section 162.7, Code 2026, is amended to read as follows:
   162.7  Operation of a dealer —— as state license or permit licensee.
   1.  A dealer shall only operate as a state licensee under this chapter pursuant to a state license, or a permit, an authorization issued or renewed by the department as provided in section 162.2A, regardless of whether the dealer is a federal licensee.
   2.  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. 
   3.  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. 15.  Section 162.8, Code 2026, is amended to read as follows:
   162.8  Operation of a commercial breeder —— as state license or permit licensee.
   1.  A commercial breeder shall only operate as a state licensee under this chapter pursuant to a state license, or a permit, an authorization issued or renewed by the department as provided in section 162.2A, regardless of whether the commercial breeder is a federal licensee.
   2.  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. 
   3.  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. 16.  Section 162.9A, Code 2026, is amended to read as follows:
   162.9A  Operation of a public auction —— as state license or permit licensee.
   1.  A public auction shall only operate as a state licensee under this chapter pursuant to a state license, or a permit, an authorization issued or renewed by the department as provided in section 162.2A, regardless of whether the public auction is a federal licensee.
   2.  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. 
   3.  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. 17.  Section 162.10A, subsection 1, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  The department shall adopt all rules necessary or desirable to fully provide for an animal’s standard of care.
    Sec. 18.  Section 162.10A, subsection 2, Code 2026, is amended by striking the subsection.
    Sec. 19.  Section 162.10B, Code 2026, is amended to read as follows:
   162.10B  Commercial establishments —— inspecting state licensees and registrants inspections.
   1.  The department shall inspect a commercial establishment once during the commercial establishment’s authorization period as provided in section 162.2A. However, the department may inspect a commercial establishment more than once during the same authorization period if the department determines that the inspection is necessary in order to administer and enforce the provisions of this chapter.
   2.  The department may shall inspect the a commercial establishment of a registrant or state licensee by entering onto its business premises at any time during normal working hours. The department may shall inspect records required to be maintained by the state licensee or registrant commercial establishment as provided in this chapter. If the owner, operator, or person in charge of the commercial establishment refuses admittance, the department may obtain an administrative search warrant issued under section 808.14.
    Sec. 20.  Section 162.10D, Code 2026, is amended to read as follows:
   162.10D  Commercial establishments —— disciplinary actions Disciplinary action —— suspending or revoking authorization.
   1.  The department may take disciplinary action against a person commercial establishment as provided in this section or section 162.12A. The department may take disciplinary action under this section by suspending or revoking the person’s commercial establishment’s authorization for violating a provision of this chapter or, committing an offense under chapter 717B, or who commits committing an unlawful practice under section 714.16. 
   2.  a.  The department may require an owner, operator, or employee of a commercial establishment subject to disciplinary action under subsection 1 to complete a continuing education program as a condition for retaining an authorization. This section paragraph does not prevent a person from voluntarily participating in a continuing education program.
   3.  b.  The department shall administer the continuing education program by either providing direct instruction or selecting persons to provide such instruction. The department is not required to compensate persons for providing the instruction, and may require attendees to pay reasonable fees necessary to compensate the department providing the instruction or a person selected by the department to provide the instruction. The department shall, to every extent possible, select persons to provide the instruction by consulting with organizations that represent commercial establishments, including but not limited to the Iowa pet breeders association.
   4.  c.  The department shall establish the criteria for a continuing education program which shall include at least three and not more than eight hours of instruction. The department shall provide for the program’s beginning and ending dates. However, a person must complete the program in twelve months or less.
    Sec. 21.  Section 162.11, subsection 1, Code 2026, is amended by striking the subsection.
    Sec. 22.  Section 162.12A, Code 2026, is amended to read as follows:
   162.12A  Civil Disciplinary action —— civil penalties.
   The department shall establish, impose, and assess may take disciplinary action against a commercial establishment as provided in this section or section 162.10D. The department may take disciplinary action under this section by establishing, imposing, and assessing civil penalties for violations of this chapter. The department may by rule establish a schedule of civil penalties for violations of this chapter. All civil penalties collected under this section shall be deposited into the general fund of the state.
   1.  a.  A commercial establishment that operates pursuant to an authorization issued or renewed under this chapter is subject to a civil penalty of not more than five hundred one thousand dollars, regardless of the number of animals possessed or controlled by the commercial establishment, for violating this chapter. Except as provided in paragraph “b”, each day that a violation continues shall be deemed a separate offense.
   b.  This paragraph applies to a commercial establishment that violates a standard of care involving housing as provided in section 162.10A. The departmental official who makes a determination that a violation exists shall provide a corrective plan to the commercial establishment describing how the violation will be corrected within a compliance period of not more than fifteen days from the date of approval by the official of the corrective plan. The civil penalty shall not exceed five hundred one thousand dollars for the first day of the violation. After that day, the department shall not impose a civil penalty for the violation during the compliance period. The department shall not impose an additional civil penalty, unless the commercial establishment fails to correct the violation by the end of the compliance period. If the commercial establishment fails to correct the violation by the end of the compliance period, each day that the violation continues shall be deemed a separate offense.
   2.  A commercial establishment that does not operate pursuant to an authorization issued or renewed under this chapter is subject to a civil penalty of not more than one two thousand dollars, regardless of the number of animals possessed or controlled by the commercial establishment, for violating this chapter. Each day that a violation continues shall be deemed a separate offense.
    Sec. 23.  Section 717B.2, subsection 2, paragraph l, Code 2026, is amended to read as follows:
   l.  An act required to be carried out by a commercial establishment to care for an animal in its possession or under its control as described in section 162.10A, subsection 1, provided that the commercial establishment complies with applicable standard of care requirements pursuant to subsections 1 and 2 of that provided in that section, including applicable rules adopted by the department.
    Sec. 24.  Section 717B.3, subsection 2, Code 2026, is amended to read as follows:
   2.  This section does not apply to any of the following:
   a.  A person commercial establishment operating as an animal shelter, boarding kennel, commercial breeder, commercial kennel, dealer, pet shop, pound, or public auction, pursuant to an authorization issued or renewed an authorization to operate a commercial establishment, or a person acting under the direction or supervision of that person by the department pursuant to section 162.2A, if all of the following apply:
   (1)  The animal, as described in subsection 1, was maintained as part of the commercial establishment’s operation.
   (2)  In providing conditions for the welfare of the animal, as described in subsection 1, the person commercial establishment complied with the standard of care requirements provided in section 162.10A, subsection 1, including any applicable rules adopted by the department applying to any of the following:.
   (a)  A state licensee or registrant operating pursuant to section 162.10A, subsection 2, paragraph “a”.
   (b)  A permittee operating pursuant to section 162.10A, subsection 2, paragraph “b”.
   b.  A commercial establishment operating as a research facility, as defined in section 162.2, pursuant to an authorization issued or renewed by the department pursuant to section 162.2A if the research facility has been issued or renewed a valid authorization by the department pursuant to chapter 162, and performs functions within the scope of accepted practices and disciplines associated with the research facility.
    Sec. 25.  Section 717B.3A, subsection 2, paragraph k, Code 2026, is amended to read as follows:
   k.  An act required to be carried out by a commercial establishment to care for an animal in its possession or under its control as described provided in section 162.10A, subsection 1, provided that the commercial establishment complies with applicable standard of care requirements pursuant to subsections 1 and 2 of that section.
    Sec. 26.  Section 717F.7, subsection 20, paragraph b, Code 2026, is amended to read as follows:
   b.  The person is registered by the department of agriculture and land stewardship. Upon a complaint filed with the department of agriculture and land stewardship, the department may inspect the premises or investigate the practices of the registered person and suspend or revoke the registration for the same causes and in the same manner as provided in section 162.12 162.10B.
    Sec. 27.  REPEAL.  Sections 162.10C and 162.12, Code 2026, are repealed.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   BACKGROUND —— REGULATION. The federal and state governments regulate the care of animals possessed or controlled by certain commercial establishments. The United States department of agriculture (USDA) provides for such regulation under the federal Animal Welfare Act, 7 U.S.C. ch. 54. In Iowa, the department of agriculture and land stewardship (DALS) regulates animals, other than agricultural animals, that are owned or controlled by commercial establishments (Code chapter 162). A commercial establishment includes nonprofit organizations that temporarily hold animals, research facilities, and various types of businesses that breed, board, or sell animals (Code section 162.2).
   BACKGROUND —— AUTHORIZATIONS. Each type of commercial establishment must operate under an authorization issued and annually renewed by DALS. A certificate of registration must be issued or renewed to a pound (Code section 162.3), animal shelter (Code section 162.4), or research facility (Code section 162.4A); a state license must be issued or renewed to a pet shop (Code section 162.5), boarding kennel (Code section 162.5A), or commercial kennel (Code section 162.6). A state license must also be issued to a dealer (Code section 162.7), commercial breeder (Code section 162.8), or public auction (Code section 162.9A). However, these three types of commercial establishments may operate under a federal license issued and renewed by USDA, if also issued and renewed a permit by DALS.
   BACKGROUND —— FEES AND FUND. A commercial establishment must pay a fee to DALS for being issued or renewed an authorization (Code section 162.2B). Moneys collected in fees by DALS are deposited into a commercial establishment fund (fund) (Code section 162.2C). Moneys in the fund are appropriated to DALS for purposes of carrying out the provisions of Code chapter 162.
   BACKGROUND —— STANDARD OF CARE. A general standard of care applies to all commercial establishments. The commercial establishment must ensure that an animal in its possession or under its control is not lacking adequate feed, adequate water, housing facilities, sanitary control, grooming practices affecting the health of the animal, and veterinary care (Code section 162.10A). A registrant or state licensee must also comply with DALS’s rules adopted to administer and enforce this standard of care. A permittee may meet the standard of care without complying with DALS’s rules. DALS may adopt rules implementing a standard of care for permitted establishments so long as the rules are not more restrictive than the federal Animal Welfare Act. A person who commits animal cruelty under Code chapter 717B fails to meet the standard of care as a matter of law.
   BACKGROUND —— RECORDKEEPING AND INSPECTIONS. A registrant or state licensee must maintain business records under state law. A permittee may but is not required to maintain business records. DALS may inspect a registrant or state licensee by entering onto its premises and may inspect its records (Code section 162.10B). DALS may monitor a permittee by entering onto its premises for the limited purpose of determining whether the permittee is providing for the required standard of care (Code section 162C.10). 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 USDA.
   BACKGROUND —— DISCIPLINARY ACTIONS. DALS may take disciplinary action against a commercial establishment by suspending or revoking the commercial establishment’s authorization (Code section 162.10D). DALS may require an owner, operator, or employee of a commercial establishment to complete a continuing education program that is supervised by DALS. Code section 162.12 repeats earlier provisions, including by allowing DALS to deny a certificate of registration or state license based on standard of care.
   BACKGROUND —— PENALTIES. DALS may establish, impose, and assess a civil penalty for an act committed by a commercial establishment that violates an applicable regulation. For an authorized commercial establishment, the amount of the civil penalty cannot exceed $500 per day of a violation, including failing to comply with the required standard of care. For operating a commercial establishment without an authorization, the civil penalty cannot exceed $1,000 per day of a violation (Code section 162.12A). A person who operates a commercial establishment without an authorization, or a commercial establishment that violates the standard of care, is guilty of a simple misdemeanor (Code section 162.13). 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. The person may be required to relinquish animals to DALS for final disposition. The person may also be subject to criminal penalties under Code chapter 717B for animal neglect, abuse, or torture.
   BILL’S PROVISIONS —— ELIMINATION OF PERMITS. This bill provides that a commercial breeder, dealer, or public auction must operate under a state license rather than a permit. The commercial breeder, dealer, or public auction is subject to the same regulations as other state licensees, including standard of care, maintenance of records, and inspection requirements.
   BILL’S PROVISIONS —— ELIMINATION OF DUPLICATIVE PROVISION.  The bill eliminates a regulation governing disciplinary action included in other provisions (Code section 162.12).
   BILL’S PROVISIONS —— INSPECTION REQUIREMENTS AND FEES. The bill requires DALS to inspect each commercial establishment at least once during its annual authorization period. If DALS inspects a commercial establishment more than once during that period, the commercial establishment must pay DALS a reinspection fee equal to $150 plus the cost of mileage (Code section 162.2B). The moneys are deposited into the fund (Code section 162.2C).
   BILL’S PROVISIONS —— INCREASE IN CIVIL PENALTIES. The bill doubles the maximum amount of a civil penalty that may be imposed for violating a regulation by a commercial establishment operating under an issued or renewed authorization, not to exceed $1,000. The bill also doubles the maximum amount of a civil penalty that may be imposed for operating without an authorization, not to exceed $2,000.