GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2015

H 1

HOUSE BILL 159

Short Title: Regulate Commercial Dog Breeders.		(Public)
Sponsors:	Representatives Saine, McGrady, Catlin, and Harrison (Primary Sponsors). For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site.
Referred to:	Judiciary II, if favorable, Finance.

March 5, 2015

A BILL TO BE ENTITLED

AN ACT to transfer the animal welfare section and the spay/neuter program from the department of agriculture and consumer services to the department of public safety, to provide for the regulation of commercial dog breeders under the animal welfare act, and to provide that the agricultural exemption to the sales and use tax does not apply to commercial breeding operations.

The General Assembly of North Carolina enacts:

SECTION 1. The Animal Welfare Section and the Spay/Neuter Program, as established by Articles 3 and 5 of Chapter 19A of the General Statutes and other applicable laws of this State, are transferred to the Department of Public Safety. This transfer shall have all of the elements of a Type I transfer, as defined in G.S. 143A‑6.

SECTION 2. G.S. 19A‑21 reads as rewritten:

"§ 19A‑21. Purposes.

The purposes of this Article are (i) to protect the owners of dogs and cats from the theft of such pets; (ii) to prevent the sale or use of stolen pets; (iii) to ~~insure~~ensure that animals, as items of commerce, are provided humane care and treatment by regulating the transportation, sale, commercial breeding, purchase, housing, care, handling and treatment of such animals by persons or organizations engaged in transporting, breeding, buying, or selling them for such use; (iv) to ~~insure~~ensure that animals confined in pet shops, kennels, animal ~~shelters~~shelters, commercial breeding operations, and auction markets are provided humane care and treatment; (v) to prohibit the sale, trade or adoption of those animals which show physical signs of infection, communicable disease, or congenital abnormalities, unless veterinary care is assured subsequent to sale, trade or adoption."

SECTION 3. G.S. 19A‑22 reads as rewritten:

"§ 19A‑22. Animal Welfare Section in ~~Animal Health Division of Department of Agriculture and Consumer Services~~Law Enforcement Division of the Department of Public Safety created; Director.

There is hereby created within the ~~Animal Health Division of the North Carolina Department of Agriculture and Consumer Services,~~Law Enforcement Division of the Department of Public Safety, a new section thereof, to be known as the Animal Welfare Section of said division.

The ~~Commissioner of Agriculture~~Secretary of the Department of Public Safety is hereby authorized to appoint a Director of said section whose duties and authority shall be determined by the ~~Commissioner subject to the approval of the Board of Agriculture and subject to the provisions of this Article.~~Secretary."

SECTION 4. G.S. 19A‑23 reads as rewritten:

"§ 19A‑23. Definitions.

For the purposes of this Article, the following terms, when used in the Article or the rules or orders made pursuant thereto, shall be construed respectively to mean:

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(5d) "Commercial breeder" means any person who owns, has custody of, or maintains 11 or more female dogs over the age of six months that are capable of reproduction and are kept primarily for the purposes of breeding and selling the offspring as pets. A person who keeps or breeds dogs exclusively for the purpose of herding or guarding livestock or farm animals, hunting, tracking, or exhibiting in dog shows, performance events, or field and obedience trials is not a commercial breeder for purposes of this Article.

(5e) "Commercial breeding operation" means the physical location or facility at which a commercial breeder breeds or maintains 11 or more female dogs over the age of six months that are capable of reproduction for the purpose of breeding and selling the offspring. Veterinary facilities and research facilities having custody of female dogs for purposes other than breeding are not commercial breeding operations for purposes of this Article.

~~(6)~~ ~~"Commissioner" means the Commissioner of Agriculture of the State of North Carolina.~~

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(7a) "Department" means the Department of Public Safety.

(8) "Director" means the Director of the Animal Welfare Section of the ~~Animal Health Division of the Department of Agriculture and Consumer Services.~~ Law Enforcement Division of the Department of Public Safety. The Director shall be a licensed veterinarian.

...

(17) "Secretary" means the Secretary of the Department of Public Safety."

SECTION 5. G.S. 19A‑24 reads as rewritten:

"§ 19A‑24. Powers of ~~Board of Agriculture.~~Department of Public Safety.

(a) The ~~Board of Agriculture~~ Department of Public Safety shall:

(1) Establish standards for the care of animals at animal shelters, boarding kennels, pet shops, commercial breeding operations, and public auctions. A boarding kennel that offers dog day care services and has a ratio of dogs to employees or supervisors, or both employees and supervisors, of not more than 10 to one, shall not as to such services be subject to any regulations that restrict the number of dogs that are permitted within any primary enclosure.

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(b) In addition to rules on the euthanasia of animals adopted pursuant to subdivision (5) of subsection (a) of this section, the ~~Board of Agriculture~~ Department of Public Safety shall adopt rules for the certification of euthanasia technicians. The rules may provide for:

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SECTION 6. G.S. 19A‑25 reads as rewritten:

"§ 19A‑25. Employees; investigations; right of entry.

For the enforcement of the provisions of this Article, the Director is authorized, subject to the approval of the ~~Commissioner~~ Secretary to appoint employees as are necessary in order to carry out and enforce the provisions of this Article, and to assign them interchangeably with other employees of the Animal Health Division. The Director shall cause the investigation of all reports of violations of the provisions of this Article, and the rules adopted pursuant to the provisions hereof; provided further, that if any person shall deny the Director or his representative admittance to his property, either person shall be entitled to secure from any superior court judge a court order granting such admittance."

SECTION 7. Article 3 of Chapter 19A of the General Statutes is amended by adding six new sections to read:

"§ 19A‑29.1. Registration required for commercial breeder; penalty; injunction.

(a) No person shall operate as a commercial breeder unless a certificate of registration for that commercial breeder has been granted by the Director. Registration shall be in the manner provided by the Director and shall include, at a minimum:

(1) The name and location of the commercial breeding operation.

(2) The name and address of its principal agent.

(3) The date its operation began.

(4) The number of female dogs over the age of six months capable of reproduction kept for the purpose of breeding and selling any offspring as pets.

(5) The breed and age of each of those dogs.

(6) The number of dogs sold or transferred by the commercial breeder in the previous fiscal year.

(7) The applicant's sales tax identification number issued by the North Carolina Department of Revenue.

(8) Whether the applicant has been convicted of animal cruelty or neglect in North Carolina or any other jurisdiction.

(9) Any other information regarding the applicant's facilities and operations as requested by the Director.

If the applicant maintains more than one commercial breeding operation, a separate certificate of registration shall be obtained for each premises. The Director shall not issue a certificate of registration until the operation has been inspected by the Director or a duly authorized representative of the Director and has been found to be in full compliance with this Article. The Director or the Director's representative may inspect each commercial breeding operation annually and shall inspect upon receipt of a complaint in order to ensure compliance with this Article.

(b) The registration period shall be the fiscal year and the registration fee shall be two hundred dollars ($200.00) for each registration period or part of a registration period. The Director shall maintain a list of commercial breeding operations containing all information reported with the initial registration, including the date of that registration, and the dates and information provided with all subsequent amendments and re‑registrations.

(c) The Director shall make the list of commercial breeding operations available to the public upon request. Publication of the list on the web site of the Department of Public Safety shall satisfy this requirement.

(d) A person who acts as commercial breeder without first registering as required under subsection (a) of this section is guilty of a Class 2 misdemeanor for a first offense and guilty of a Class 1 misdemeanor for a second or subsequent offense.

(e) A commercial breeder who fails to register pursuant to this section shall be subject to injunction pursuant to the provisions of G.S. 19A‑3 and G.S. 19A‑4.

"§ 19A‑29.2. Records to be maintained by commercial breeders.

(a) A commercial breeder shall maintain records on all dogs in his or her custody showing the following:

(1) The origin of all dogs, including names and addresses of consignors, and the date each dog was received.

(2) A description of each dog, including species, age, sex, breed, and color markings.

(3) The location of each dog not kept at the registered facility.

(4) The disposition of each dog, including the name and address of the person to whom each dog is sold, traded, or adopted and the date of the transaction; in the event of the death of a dog, the record shall show the date, signs of illness, or cause of death if identified; if a dog is euthanized, the record shall show date and type of euthanasia.

(5) A record of veterinary care including treatments, immunizations, and the date, time, and description of all medication, including its name and dosage, and the initials of the person administering any product or procedure.

(b) All commercial breeders shall make all required records available to the Director or the Director's duly authorized representative, or to a local animal control agent on request, during the business and cleaning hours listed on the registration. The operator shall be able to match each animal to its record upon request. Records shall be maintained for a period of two years after the dog is released.

"§ 19A‑29.3. Housing facility requirements for commercial breeders.

(a) Housing facilities for dogs shall be structurally sound and maintained in good repair to protect the dogs from injury, contain the animals, and restrict the entrance of other animals and people.

(b) All light fixtures and electrical outlets in animal areas shall be in compliance with the State Building Code.

(d) Supplies of food and bedding shall be stored in facilities that adequately protect those supplies against infestation or contamination by vermin and insects. All open bags of food shall be stored in airtight containers with lids. Refrigeration shall be provided for supplies of perishable food.

(e) Animal and food waste and debris shall be removed daily from the housing facility in accordance with local ordinances, to assure that the facility will be maintained in a clean and sanitary manner.

(f) Hot and cold running, potable water must be available. Facilities such as a washroom, basin, or sink shall be provided to maintain cleanliness among animal caretakers and animals, and in animal food and water receptacles.

(g) Each facility shall have the capability to confirm the temperature in which the animals are housed. Indoor housing facilities for dogs shall be adequately heated and cooled when necessary to protect the dogs from cold and excessive heat and provide for their health and comfort. The ambient temperature shall not be allowed to fall below 50 degrees Fahrenheit or exceed 85 degrees Fahrenheit when dogs are present.

(h) A separate perimeter fence is required, including unsupervised exercise areas.

(i) All areas of a facility are subject to review or inspection by the Director, the Director's agents, and local animal control agents, during business hours.

(j) All animals in a facility are subject to the requirements of this Article regardless of ownership.

(k) A registrant shall comply with all applicable federal, State, and local laws, rules, and ordinances relating to or affecting the welfare of dogs in its facility.

(l) Indoor housing facilities for dogs shall be adequately ventilated to provide for the health and comfort of the animals at all times. The facilities shall be provided with fresh air either by means of windows, doors, vents, or air conditioning and shall be ventilated. Air flow shall be adequate to minimize odors and moisture condensation.

(m) Indoor housing facilities for dogs shall have adequate illumination to permit routine inspections, maintenance, cleaning, and housekeeping of the facility and observation of the animals. Illumination shall provide regular diurnal lighting cycles of either natural or artificial light.

(n) Interior building surfaces of indoor facilities with which animals come in contact shall be constructed and maintained so that they are impervious to moisture, and can be readily sanitized.

(o) A suitable method of drainage shall be provided to rapidly eliminate excess water from an indoor housing facility. If closed drain systems are used, they shall be equipped with traps and installed to prevent odors and backup of sewage. The drainage system shall be constructed to prevent cross‑contamination among animals. Drains shall be constructed in such a manner to comply with all applicable federal, State, and local laws relating to pollution control.

(p) In outdoor facilities, primary enclosures and walkways with which an animal comes in contact shall be constructed of sealed concrete or other surfaces impervious to moisture. Gravel may be used if maintained at a minimum depth of six inches and kept in a sanitary manner.

(q) Dogs kept outdoors shall be provided with housing to allow them to remain dry and comfortable during inclement weather. Housing shall be constructed of material that is impervious to moisture and which can be disinfected. One house shall be available for each animal within each enclosure except for a mother and its unweaned offspring. The house shall be of solid construction, including a roof, four walls, and a floor, must allow the dog to remain dry and comfortable, and must allow the dog to maintain its body heat in cold weather. Each house must include a wind/rain break on the entrance to protect the dog from weather extremes. A suitable method of drainage shall be provided. In addition to housing, the enclosure shall provide protection from excessive sun and inclement weather.

(r) Primary enclosures. All primary enclosures shall be constructed so as to provide space to allow each dog to walk, turn about freely, and to easily stand, sit, and lie in a natural position. Primary enclosures shall provide each dog with:

(1) At least 12 square feet of indoor floor space per each dog that is 25 inches long or less.

(2) At least 20 square feet of indoor floor space per each dog that is between 25 and 35 inches long.

(3) At least 30 square feet of indoor floor space per each dog that is 35 inches or longer.

(4) At least 12 inches of headroom above the head of the tallest dog in the enclosure.

(5) A floor constructed of a solid material that is impermeable to moisture.

(6) Not more than four adult dogs shall be housed in the same primary enclosure except during any supervised play group interactions.

(7) Animal and food waste, bedding, and debris must be removed at least twice daily from all primary enclosures and exercise areas to prevent contamination of the dogs contained in those enclosures and areas and to reduce disease hazards and odors. Each animal must be able to walk and lie down without coming into contact with any waste or debris. Primary enclosures shall be sanitized at least once a week. All dogs must be removed from primary enclosures during cleaning or sanitization with agents, pressurized water, steam, or agents toxic to animals.

(8) No primary enclosure may be stacked or otherwise placed on top of or above any other primary enclosure.

(s) Sanitation shall be as follows:

(1) Prior to the introduction of dogs into empty primary enclosures previously occupied, enclosures and accessories shall be sanitized.

(2) In addition to primary enclosures being properly cleaned a minimum of two times per day, enclosures and accessories shall be sanitized a minimum of once every seven days.

(3) Primary enclosures, rooms and hard-surfaced pens or runs shall be sanitized by one of the following:

a. Washing them with hot water (180 degrees Fahrenheit) and soap or detergent as in a mechanical cage washer.

b. Washing all soiled surfaces with a detergent solution to remove all organic matter followed by application of a safe and effective disinfectant.

c. Cleaning all soiled surfaces with live steam.

(4) Food and water receptacles shall be sanitized daily with hot water, detergent, and disinfectant.

(5) Soiled linens and cloth products shall be mechanically washed with detergent and sanitized.

(6) Any area accessible to multiple animals shall be kept clean and sanitary.

"§ 19A‑29.4. Daily care for dogs in commercial breeding facilities.

(a) All animals held in the commercial breeding operation shall be provided the following:

(1) Daily access to both human and same species social interaction.

(2) Access at least once per day to outdoor space at least three times the size of the primary enclosure; providing that nursing, unweaned puppies and any other dog for which a duly licensed veterinarian states in writing that such activity would pose a health threat shall not be considered to require such access to outdoor space.

(3) A species and size‑appropriate toy, unless it poses a health threat.

(4) Grooming sufficient to prevent excessive matting and claw or nail length.

(b) Dogs shall be fed at least once each 24‑hour period except as otherwise might be required to provide adequate veterinary care. Food shall be commercially prepared food that complies with laws applicable to animal feed, or the food shall be provided by the owner. The food shall be free from contamination, wholesome, palatable, and of adequate quality and quantity appropriate for the given size, age, and condition of an animal to meet the daily requirements for nutritional value. Puppies less than six months of age shall be fed at least twice in each 24‑hour period. An eight‑hour interval between feedings is required if only two feedings are offered in a 24‑hour period.

(c) Food receptacles shall be accessible to all dogs and shall be located so as to minimize contamination by waste. For every adult animal, there must be at least one food receptacle offered. Food receptacles shall be durable and shall be kept clean and sanitized. Damaged receptacles shall be replaced. Disposable food receptacles may be used but must be discarded after each feeding.

(d) Food and water receptacles in outdoor facilities shall be protected from the elements.

(e) Each dog shall have continuous access to clean, fresh water that is not frozen and is free of debris, feces, algae, and other contaminants, except as might otherwise be required to provide adequate veterinary care as instructed by a duly licensed veterinarian for medical reasons. Watering receptacles shall be durable and kept clean and sanitized. Damaged receptacles shall be replaced.

"§ 19A‑29.5. Veterinary care for commercial breeder operations.

(a) All dogs shall be inoculated as required by State or local law, and shall, at a minimum, receive an annual hands‑on examination by a duly licensed veterinarian.

(b) All dogs shall be treated promptly by a licensed veterinarian for any illness or injury. Veterinary care appropriate to the species shall be provided without undue delay when necessary.

(c) Each dog shall be observed daily by the animal caretaker in charge, or by someone under the caretaker's direct supervision. Sick or diseased, injured, lame, or blind dogs shall be provided with prompt veterinary care or be euthanized, provided that this shall not affect compliance with any State or local law requiring the holding, for a specified period, of dogs suspected of being diseased. If any diseased or deformed dogs are sold, full written disclosure of the medical condition of the animal shall be provided to the new owner.

(d) All dogs in a registered facility shall be kept in compliance with the North Carolina rabies law, Part 6 of Article 6 of Chapter 30A of the General Statutes.

"§ 19A‑29.6. Penalties for failure of a commercial breeder to provide adequate care for animals.

The failure of a commercial breeder to adequately house, exercise, feed, water, provide adequate veterinary care, or otherwise meet the standards of care provided for in this Article for the animals in the commercial breeder's custody or possession shall constitute a Class 3 misdemeanor, and the commercial breeder shall be subject to (i) a fine of not less than fifty dollars ($50.00) per animal nor more than a total of one thousand dollars ($1,000.00) and (ii) suspension, revocation, or denial of registration as a commercial breeder."

SECTION 8. G.S. 19A‑30 reads as rewritten:

"§ 19A‑30. Refusal, suspension or revocation of certificate or license.

(a) The Director may refuse to issue or renew or may suspend or revoke a certificate of registration for any animal shelter or a license for any public auction, commercial breeding operation, kennel, pet shop, or dealer, if after an impartial investigation as provided in this Article he determines that any one or more of the following grounds apply:

(1) Material misstatement in the application for the original certificate of registration or license or in the application for any renewal under this Article;

(2) Willful disregard or violation of this Article or any rules issued pursuant thereto;

(3) Failure to provide adequate housing facilities and/or primary enclosures for the purposes of this Article, or if the feeding, watering, sanitizing and housing practices at the animal shelter, public auction, pet shop, commercial breeding operation, or kennel are not consistent with the intent of this Article or the rules adopted under this Article;

(4) Allowing one's license under this Article to be used by an unlicensed person;

(5) Conviction of any crime an essential element of which is misstatement, fraud, or dishonesty, or conviction of any felony;

(6) Making substantial misrepresentations or false promises of a character likely to influence, persuade, or induce in connection with the business of a public auction, commercial kennel, pet shop, or dealer;

(7) Pursuing a continued course of misrepresentation of or making false promises through advertising, salesmen, agents, or otherwise in connection with the business to be licensed;

(8) Failure to possess the necessary qualifications or to meet the requirements of this Article for the issuance or holding of a certificate of registration or license.

(b) The Director shall refuse to register or shall revoke the registration of any person who has been convicted of animal cruelty or neglect in this State or in any other jurisdiction.

(c) The Director shall, before refusing to issue or renew and before suspension or revocation of a certificate of registration or a license, give to the applicant or holder thereof a written notice containing a statement indicating in what respects the applicant or holder has failed to satisfy the requirements for the holding of a certificate of registration or a license. If a certificate of registration or a license is suspended or revoked under the provisions hereof, the holder shall have five days from such suspension or revocation to surrender all certificates of registration or licenses issued thereunder to the Director or ~~his~~ the Director's authorized representative.

A person to whom a certificate of registration or a license is denied, suspended, or revoked by the Director may contest the action by filing a petition under G.S. 150B‑23 within five days after the denial, suspension, or revocation.

Any licensee whose license is revoked under the provisions of this Article shall not be eligible to apply for a new license hereunder until one year has elapsed from the date of the order revoking said license or if an appeal is taken from said order of revocation, one year from the date of the order or final judgment sustaining said revocation. Any person who has been an officer, agent, or employee of a licensee whose license has been revoked or suspended and who is responsible for or participated in the violation upon which the order of suspension or revocation was based, shall not be licensed within the period during which the order of suspension or revocation is in effect."

SECTION 9. G.S. 19A‑32.1 reads as rewritten:

"§ 19A‑32.1. Minimum holding period for animals in animal shelters; public viewing of animals in animal shelters; disposition of animals.

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(f) An animal that is surrendered to an animal shelter by the animal's owner and not reclaimed by that owner during the minimum holding period may be disposed of in one of the following manners:

(1) Returned to the owner.

(2) Adopted as a pet by a new owner.

(3) Euthanized by a procedure approved by rules adopted by the ~~Department of Agriculture and Consumer Service~~ Department of Public Safety or, in the absence of such rules, by a procedure approved by the American Veterinary Medical Association, the Humane Society of the United States, or the American Humane Association.

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(j) Animal shelters shall maintain a record of all animals impounded at the shelter, shall retain those records for a period of at least three years from the date of impoundment, and shall make those records available for inspection during regular inspections pursuant to this Article or upon the request of a representative of the Animal Welfare Section. These records shall contain, at a minimum:

(1) The date of impoundment.

(2) The length of impoundment.

(3) The disposition of each animal, including the name and address of any person to whom the animal is released, any institution that person represents, and the identifying information required under subsection (i) of this section.

(4) Other information required by rules adopted by the ~~Board of Agriculture.~~Department of Public Safety."

SECTION 10. G.S. 19A‑41 reads as rewritten:

"§ 19A‑41. Legal representation by the Attorney General.

It shall be the duty of the Attorney General to represent the ~~Commissioner of Agriculture and the Department of Agriculture and Consumer Services,~~Secretary of the Department of Public Safety, or to designate some member of his staff to represent the ~~Commissioner~~ Secretary and the Department, in all actions or proceedings in connection with this Article."

SECTION 11. G.S. 19A‑61 reads as rewritten:

"§ 19A‑61. Spay/Neuter Program established.

There is established in the ~~Department of Agriculture and Consumer Services~~Department of Public Safety a voluntary statewide program to foster the spaying and neutering of dogs and cats for the purpose of reducing the population of unwanted animals in the State. The program shall consist of the following components:

(1) Education Program. � The Department shall establish a statewide program to educate the public about the benefits of having cats and dogs spayed and neutered. The Department may work cooperatively on the program with the North Carolina School of Veterinary Medicine, other State agencies and departments, county and city health departments and animal control agencies, and statewide and local humane organizations. The Department may employ outside consultants to assist with the education program.

(2) Local Spay/Neuter Assistance Program. � The Department shall administer the Spay/Neuter Account established in G.S. 19A‑62. Monies deposited in the account shall be available to reimburse eligible counties and cities for the direct costs of spay/neuter surgeries for cats and dogs made available to low‑income persons."

SECTION 12. G.S. 19A‑62 reads as rewritten:

"§ 19A‑62. Spay/Neuter Account established.

(a) Creation. � The Spay/Neuter Account is established as a nonreverting special revenue account in the ~~Department of Agriculture and Consumer Services.~~ Department of Public Safety. The Account consists of the following:

(1) Repealed by Session Laws 2010‑31, s. 11.4(c), effective October 1, 2010.

(2) Twenty dollars ($20.00) of the additional fee imposed by G.S. 20‑79.7 for an Animal Lovers special license plate.

(3) Any other funds available from appropriations by the General Assembly or from contributions and grants from public or private sources.

(b) Use. � The revenue in the Account shall be used by the ~~Department of Agriculture and Consumer Services~~ Department of Public Safety as follows:

(1) Repealed by Session Laws 2010‑31, s. 11.4(c), effective October 1, 2010.

(2) Up to twenty percent (20%) may be used to develop and implement the statewide education program component of the Spay/Neuter Program established in G.S. 19A‑61(1).

(3) Up to twenty percent (20%) of the money in the Account may be used to defray the costs of administering the Spay/Neuter Program established in this Article.

(4) Funds remaining after deductions for the education program and administrative expenses shall be distributed quarterly to eligible counties and cities seeking reimbursement for reduced‑cost spay/neuter surgeries performed during the previous calendar year. A county or city is ineligible to receive funds under this subdivision unless it requires the owner to show proof of rabies vaccination at the time of the procedure or, if none, require vaccination at the time of the procedure.

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SECTION 13. G.S. 19A‑64(b) reads as rewritten:

"(b) Application. � A county or city eligible for reimbursement of spaying and neutering costs from the Spay/Neuter Account shall apply to the ~~Department of Agriculture and Consumer Services~~ Department of Public Safety by the last day of January, April, July, and October of each year to receive a distribution from the Account for that quarter. The application shall be submitted in the form required by the Department and shall include an itemized listing of the costs for which reimbursement is sought."

SECTION 14. G.S. 19A‑65 reads as rewritten:

"§ 19A‑65. Annual Report Required From Every Animal Shelter in Receipt of State or Local Funding.

Every county or city animal shelter, or animal shelter operated under contract with a county or city or otherwise in receipt of State or local funding shall prepare an annual report in the form required by the ~~Department of Agriculture and Consumer Services~~ Department of Public Safety setting forth the numbers, by species, of animals received into the shelter, the number adopted out, the number returned to owner, and the number destroyed. The report shall also contain the total operating expenses of the shelter and the cost per animal handled. The report shall be filed with the ~~Department of Agriculture and Consumer Services~~ Department of Public Safety by March 1 of each year. A city or county that does not timely file the report required by this section is not eligible to receive reimbursement payments under G.S. 19A‑64 during the calendar year in which the report was to be filed."

SECTION 15. G.S. 19A‑66 reads as rewritten:

"§ 19A‑66. Notification of available funding.

Prior to January 1 of each year, the ~~Department of Agriculture and Consumer Services~~ Department of Public Safety shall notify counties and cities that have, prior to that notification deadline, established eligibility for distribution of funds from the Spay/Neuter Account pursuant to G.S. 19A‑63, of the following:

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SECTION 16. G.S. 90‑101(a2) reads as rewritten:

"(a2) An animal shelter may register under this section for the limited purpose of obtaining, possessing, and using sodium pentobarbital and other drugs approved by the Department in consultation with the North Carolina Veterinary Medical Association for the euthanasia of animals lawfully held by the animal shelter. An animal shelter registered under this section shall also register with the federal Drug Enforcement Agency under the federal Controlled Substances Act. An animal shelter's acquisition of sodium pentobarbital and other approved drugs for use in the euthanizing of animals shall be made only by the shelter's manager or chief operating officer or by a licensed veterinarian.

A person certified by the ~~Department of Agriculture and Consumer Services~~ Department of Public Safety to administer euthanasia by injection is authorized to possess and administer sodium pentobarbital and other approved euthanasia drugs for the purposes of euthanizing domestic dogs (Canis familiaris) and cats (Felis domestica) lawfully held by an animal shelter. Possession and administration of sodium pentobarbital and other approved drugs for use in the euthanizing of dogs and cats by a certified euthanasia technician shall be limited to the premises of the animal shelter.

For purposes of this section, "animal shelter" means an animal shelter registered under Article 3 of Chapter 19A of the General Statutes and owned, operated, or maintained by a unit of local government or under contract with a unit of local government for the purpose of housing or containing seized, stray, homeless, quarantined, abandoned, or unwanted animals."

SECTION 17. G.S. 153A‑442 reads as rewritten:

"§ 153A‑442. Animal shelters.

A county may establish, equip, operate, and maintain an animal shelter or may contribute to the support of an animal shelter, and for these purposes may appropriate funds not otherwise limited as to use by law. The animal shelters shall meet the same standards as animal shelters regulated by the ~~Department of Agriculture~~ Department of Public Safety pursuant to its authority under Chapter 19A of the General Statutes."

SECTION 18. G.S. 160A‑493 reads as rewritten:

"§ 160A‑493. Animal shelters.

A city may establish, equip, operate, and maintain an animal shelter or may contribute to the support of an animal shelter, and for these purposes may appropriate funds not otherwise limited as to use by law. The animal shelters shall meet the same standards as animal shelters regulated by the ~~Department of Agriculture~~ Department of Public Safety pursuant to its authority under Chapter 19A of the General Statutes."

SECTION 19.(a) G.S. 105‑164.13(4b) reads as rewritten:

"(4b) Products of a farm sold in their original state by the producer of the products if the producer is not primarily a retail merchant and ice used to preserve agriculture, aquaculture and commercial fishery products until the products are sold at retail. The exemption provided in this subdivision does not apply to products of a commercial breeding operation, as defined in G.S. 19A‑23, or products of other operations for the breeding and selling of animals as pets."

SECTION 19.(b) G.S. 105‑164.13E(a) reads as rewritten:

"(a) Exemption. � A qualifying farmer is a person who has an annual gross income for the preceding taxable year of ten thousand dollars ($10,000) or more from farming operations or who has an average annual gross income for the three preceding taxable years of ten thousand dollars ($10,000) or more from farming operations. A qualifying farmer includes a dairy operator, a poultry farmer, an egg producer, a livestock farmer, a farmer of crops, and a farmer of an aquatic species, as defined in ~~G.S. 106‑758.~~ G.S. 106‑758, but does not include a commercial breeder, as defined in G.S. 19A‑23, or other breeders of animals sold as pets. A qualifying farmer may apply to the Secretary for an exemption certificate number under G.S. 105‑164.28A. The exemption certificate expires when a person fails to meet the income threshold for three consecutive taxable years or ceases to engage in farming operations.

The following tangible personal property, digital property, and services are exempt from sales and use tax if purchased by a qualifying farmer and for use by the farmer in farming operations. For purposes of this section, an item is used by a farmer for farming operations if it is used for the planting, cultivating, harvesting, or curing of farm crops or in the production of dairy products, eggs, or animals:

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SECTION 20. Section 19 of this act becomes effective July 1, 2015, and applies to sales made on or after that date. The remainder of this act becomes effective December 1, 2015, and applies to offenses committed on or after that date.