IF YOU DO NOT WANT TO READ THE ENTIRE FOLLOWING AT LEAST READ THE PARTS I HAVE HILIGHTED IN BLUE!!


INTRODUCED BY   Senator Rosenthal

                        FEBRUARY 20, 1998

   An act to amend Sections 122045, 122050, 122060, 122125, and
122300 of, and to add Sections 122046, 122047, 122048, and 122111 to,
the Health and Safety Code, and to amend Section 7102 of the Revenue
and Taxation Code, relating to animals, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 2102, as introduced, Rosenthal.  Dogs and cats: breeding and
sale.
   (1) Existing law regulates the sale of dogs by breeders and retail
pet dealers by, among other things, defining the terms "breeder" and
"pet dealer" for purposes of these provisions, and by imposing civil
penalties on breeders who sell ill or diseased dogs.
   This bill would redefine these terms and would increase these
civil penalties.
   The bill would require every breeder of dogs to pay a fee to
obtain a breeder permit number from the Department of Consumer
Affairs, would require the department to provide the application form
containing specified information and the breeder permit number, and
would impose civil penalties on a breeder for failure to obtain a
permit.  It would also provide that all fees collected by the
department shall be deposited in the Dog Breeder's Compliance Fund,
created by this bill, and would continuously appropriate funds to the
department, in accordance with a certain formula, for specified
purposes.
   This bill would require every breeder of dogs, and every
occasional breeder of dogs, as defined, who wants to sell a dog
within this state to file with the Board of Equalization an
application for a seller permit in accordance with specified tax
provisions.  It would prohibit a breeder of dogs from advertising for
sale, trade, fee, or free, any dog without obtaining a breeder
permit, would prohibit any person, except a publicly operated pound,
humane society, or privately funded rescue organization, from
selling, charging a fee for, trading, or giving away a dog in a
public place, as defined, and would impose additional requirements
with respect to the sale of dogs.
   (2) The Sales and Use Tax Law specifies that revenues derived from
the taxes imposed under that law be allocated first by certain
revenue transfers for specified purposes and then by transfer of the
remaining balance of revenues to the General Fund.
   This bill would additionally require, in each of the 1999-2000,
2000-2001, and 2001-2002 fiscal years, prior to the transfer of the
remaining balance of revenues to the General Fund, that those
revenues derived under the Sales and Use Tax Law with respect to the
retail sale of a dog or dogs be transferred to the Dog Breeder's
Compliance Fund in an amount not to exceed the amount that, when
combined with all other moneys deposited in that fund during the same
fiscal year, equals a total of $12,000,000.  By requiring the
deposit of moneys into a continuously appropriated fund, this bill
would make an appropriation.
   (3) This bill, in addition, would appropriate $330,000 from the
General Fund to be allocated in equal amounts to both the Department
of Consumer Affairs and the Board of Equalization for the 1998-99
fiscal year for purposes of startup costs associated with the
enactment of these provisions, and would appropriate $90,000 annually
from the General Fund to be allocated in equal amounts to both the
department and the board for costs associated with the continued
implementation of these provisions.
   Vote:  2/3.  Appropriation:  yes.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 122045 of the Health and Safety Code is amended
to read:
   122045.  (a) This article shall be known and may be cited as the
Polanco-Lockyer Pet Breeder Warranty Act.
   (b) Every breeder of dogs shall comply with this article.  As used
in this article, "dog breeder," or "breeder" means a person, firm,
partnership, corporation, or other association that has sold,
transferred, or given away  one litter of dogs, or any
portion of a litter, more than once in a 36-month period  that
were bred and reared on the premises of the person, firm,
partnership, corporation, or other association  or were bred by a
third party through a contractual arrangement and then returned to
the breeder for the purpose of selling, transferring, or giving away
the dog or dogs  .
   (c) For the purposes of this article, "purchaser" means any person
who purchases a dog from a breeder  or who purchases a dog from
an individual acting on the breeder's behalf  .
   (d) This article shall not apply to pet dealers regulated under
Article 2 (commencing with Section 122125), or to publicly operated
pounds, humane societies, or privately operated rescue organizations.

  SEC. 2.  Section 122046 is added to the Health and Safety Code, to
read:
   122046.  (a) Every breeder of dogs shall pay a fee to obtain a
breeder permit number from the Department of Consumer Affairs.  The
department shall provide the application form and the breeder permit
number.
   (b) Application for a breeder permit number shall include the
street address and home and business telephone numbers of the
applicant.  No breeder permit number shall be issued to an applicant
using a post office box address or pager number unless the applicant'
s street address and home or business telephone numbers are also
included on the application.  The application shall include a space
for the applicant to identify the breed or breeds of dogs offered for
sale, trade, fee, or free.
   (c) In lieu of the civil penalties imposed pursuant to Section
122110, any person who does not obtain a breeder permit shall be
subject to a civil penalty of one hundred dollars ($100).  If there
is a second offense, the person shall be subject to a civil penalty
of five hundred dollars ($500). For a third offense, the person shall
be subject to both a civil penalty of between one thousand dollars
($1,000) and five thousand dollars ($5,000), and a prohibition from
selling dogs for three years.
   (d) (1) Between July 1, 1999, and June 30, 2002, the annual permit
fee, for a 12-month period, shall be two hundred fifty dollars
($250).  All fees collected by the department pursuant to this
section shall be deposited in the Dog Breeder's Compliance Fund,
which is hereby created in the State Treasury.  Notwithstanding
Section 13340 of the Government Code, the money in the fund is
continuously appropriated to the department without regard to fiscal
years.  Money from the fund shall be expended, in addition to the
sales tax revenue collected pursuant to paragraph (11) of subdivision
(a) of Section 7102 of the Revenue and Taxation Code, up to an
amount not to exceed twelve million dollars ($12,000,000) annually
for the sole purpose of educating the public, through the purchase of
television advertising, on the importance of spaying and neutering
pets, the tragedy of pet overpopulation, and the resulting need to
put to death hundreds of thousands of surplus dogs and cats each year
in California shelters.
   (2) On and after July 1, 2002, the annual permit fee shall be an
amount determined by the department as adequate to offset costs
incurred by the department in implementing this section.
  SEC. 3.  Section 122047 is added to the Health and Safety Code, to
read:
   122047.  (a) Every breeder of dogs who wants to sell a dog within
this state shall file with the Board of Equalization an application
for a seller permit in accordance with Article 2 (commencing with
Section 6066) of Part 1 of Division 2 of the Revenue and Taxation
Code, and shall comply with all applicable provisions of that part
including, but not limited to, the filing of returns, payment of tax,
and the retention of records in any form as the board may require.
   (b) Every occasional breeder of dogs shall file with the Board of
Equalization an application for a temporary seller permit in
accordance with guidelines adopted by the board, and shall comply
with Part 1 (commencing with Section 6001) of Division 2 of the
Revenue and Taxation Code including, but not limited to, the payment
of tax on all retail sales from a litter.  For purposes of this
subdivision, "occasional breeder" means a person whose sole selling
activity in this state is limited to the sale of one litter of dogs
during any 36-month period.
   (c) When filing an application for a seller permit or a temporary
seller permit, a breeder shall provide the board with his or her
breeder permit number.
   (d) Any person offering a dog for sale on behalf of a breeder
shall have in his or her possession a copy of that breeder's permit
prior to offering the dog for sale.  Failure to provide a copy of the
breeder's permit shall create a presumption that the dog has been
bred by the person offering the dog for sale.
  SEC. 4.  Section 122048 is added to the Health and Safety Code, to
read:
   122048.  (a) No breeder of dogs may advertise for sale, trade,
fee, or free, any dog without obtaining an annual breeder permit
pursuant to Section 122046.  For purposes of this section,
advertising includes, but is not limited to, newspapers, flyers,
newsletters, magazines, periodicals, or other publications,
electronic media, Internet websites, oral offers, or the display of
dogs.
   (b) Breeders of dogs placing an advertisement to sell, trade, give
away, or charge a fee for dogs shall provide to the advertising
publication, in addition to any other information required by the
publication, the street address and home telephone number, other than
a pager, where the breeder resides.  This information shall not be
required to appear in the advertisement unless it is the policy of
the publication.
   (c) All information provided by a breeder to any publication for
the purpose of advertising a dog for sale, trade, fee, or free shall
constitute a public record for the purpose of access by governmental
agencies monitoring compliance with the law.
   (d) No person may sell, charge a fee for, trade, or give away, a
dog in a public place, except as provided in subdivision (f).  For
purposes of this subdivision, "public place" includes, but is not
limited to, supermarkets, parking lots, street corners, parks,
boardwalks, beaches, or government-owned property.
   (e) Immediately upon the sale, trade, or receipt of a fee for any
dog, a dog breeder shall retain one copy of, and shall provide one
copy of, a Notification of Dog Sale form to all of the following:
   (1) The Department of Consumer Affairs.
   (2) The purchaser of the dog.
   (3) The new owner of the dog, if different from the purchaser.
   (f) Publicly operated pounds and humane societies are exempt from
subdivision (d), and may operate pursuant to local ordinances or
regulations and requirements of local jurisdictions governing this
activity.  Privately operated rescue organizations are exempt from
subdivision (d) if these organizations spay or neuter a dog before
placing it.
   (g) The Department of Consumer Affairs shall enforce this section.

  SEC. 5.  Section 122050 of the Health and Safety Code is amended to
read:
   122050.  (a) Every breeder of dogs shall deliver to each purchaser
of a dog a written disclosure containing all of the following:
   (1) The breeder's name  and   ,  address
 , and breeder permit number  .  If the breeder is a dealer
licensed by the United States Department of Agriculture, the federal
dealer identification number shall also be indicated.
   (2) The date of the dog's birth and the date the breeder received
the dog.  If the dog is not advertised or sold as purebred,
registered, or registerable, the date of birth may be approximated if
not known by the breeder.
   (3) The breed, sex, color, and identifying marks at the time of
sale, if any.  If the dog is from a United States Department of
Agriculture licensed source, the individual identifying tag, tattoo,
or collar number for that animal.  If the breed is unknown or mixed,
the record shall so indicate.
   (4) If the dog is being sold as being capable of registration, the
names and registration numbers of the sire and dam, and the litter
number, if known.
   (5) A record of inoculations and worming treatments administered,
if any, to the dog as of the time of sale, including dates of
administration and the type of vaccine or worming treatment.
   (6) A record of any veterinarian treatment or medication received
by the dog while in the possession of the breeder and either of the
following:
   (A) A statement, signed by the breeder at the time of sale, that:

   (i) The dog has no known disease or illness.
   (ii) The dog has no known congenital or hereditary condition that
adversely affects the health of the dog at the time of the sale or
that is likely to adversely affect the health of the dog in the
future.
   (B) A record of any known disease, illness, or congenital or
hereditary condition that adversely affects the health of the dog at
the time of sale, or that is likely to affect the health of the dog
in the future, along with a statement signed by a veterinarian
licensed in the State of California that authorizes the sale of the
dog, recommends necessary treatment, if any, and verifies that the
disease, illness, or condition does not require hospitalization or
nonelective surgical procedures, nor is it likely to require
hospitalization or nonelective surgical procedures in the future.  A
veterinarian statement is not required for intestinal or external
parasites unless their presence makes the dog clinically ill or is
likely to make the dog clinically ill.  The statement shall be valid
for seven days following examination of the dog by the veterinarian.

   (b) The written disclosure made pursuant to this section shall be
signed by both the breeder certifying the accuracy of the statement,
and by the purchaser of the dog acknowledging receipt of the
statement.
   (c) In addition, all medical information required to be disclosed
pursuant to this section shall be made orally by the breeder to the
purchaser.
   (d) For purposes of this article, a disease, illness, or
congenital or hereditary condition that adversely affects the health
of the dog at the time of sale, or is likely to adversely affect the
health of the dog in the future, shall be one that is apparent at the
time of sale or that should have been known by the breeder from the
history of veterinary treatment disclosed pursuant to this section.
   (e) For the purpose of this article, "nonelective surgical
procedure" means a surgical procedure that is necessary to preserve
or restore the health of the dog, to prevent the dog from
experiencing pain or discomfort, or to correct a condition that would
otherwise interfere with the dog's ability to walk, run, jump, or
otherwise function in a normal manner.
   (f) For the purposes of this article, "clinically ill" means an
illness that is apparent to a veterinarian based on observation,
examination, or testing of the dog, or upon a review of the medical
records relating to the dog.
  SEC. 6.  Section 122060 of the Health and Safety Code is amended to
read:
   122060.  Except as provided for in paragraph (6) of subdivision
(a) of Section 122050, no breeder shall knowingly sell a dog that is
diseased, ill  ,  or has a cond> 

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