BILL NUMBER: SB 2102	AMENDED
	BILL TEXT

	AMENDED IN SENATE   APRIL 22, 1998

INTRODUCED BY   Senator Rosenthal

                        FEBRUARY 20, 1998

   An act to  add Section 14504 to the Corporations Code, to add
Sections 30503.1 and 31751.1 to the Food and Agricultural Code, 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 amended, 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  , among other things,
 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  and civil penalties  collected by
the department shall be deposited in the Dog  Breeder's
  and Cat Spaying and Neutering  Compliance Fund,
created by this bill, and would continuously appropriate funds to the
department, in accordance with a certain formula, for specified
purposes  thereby making an appropriation  .
   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,  or  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)  Existing law permits the governing body of a local
agency, by ordinance, to authorize employees of public pounds,
societies for the prevention of cruelty to animals, and humane
societies, who have qualified as humane officers, and which societies
or pounds have contracted with the local agency to provide animal
care or protection services, to issue notices to appear in court for
violations of state or local animal control laws.
   This bill would permit the governing body of a local agency, by
ordinance, also to authorize employees of a shelter, pound, or humane
society that contracts with a local agency to provide animal care or
control services, or both, who have qualified as humane officers, to
issue citations for failure to possess a valid breeder's permit.
   (3) Existing law prohibits any public pound, society for the
prevention of cruelty to animals shelter, or humane shelter from
selling or giving away any dog or cat that has not been spayed or
neutered unless a deposit for the spaying or neutering of the dog or
cat has been tendered to the pound or shelter.  Existing law also
requires that any deposit not claimed shall be used for a number of
specified purposes.
   This bill, commencing January 1, 2000, would prohibit any shelter,
pound, or humane society that contracts with a local agency to
provide animal care or control services, or both, from selling or
giving away any dog or cat over 4 months of age that has not been
spayed or neutered, and would prohibit deposits for spaying and
neutering to be accepted or collected for this purpose, and would
establish a procedure for a shelter, pound, or humane society to
receive funding for spaying and neutering services from the Dog and
Cat Spaying and Neutering Fund.  The bill would permit deposits for
spaying and neutering to be collected by shelters, pounds, and humane
societies for dogs and cats 4 months of age or younger but would
require that unclaimed deposits be used only to provide vouchers to
the public for spaying and neutering services.  
   (4)  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   and Cat Spaying and
Neutering  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
  $2,000,000  .  By requiring the deposit of moneys
into a continuously appropriated fund, this bill would make an
appropriation.  
   (3)  
   (5)  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   $600,000  annually from the General Fund
to be allocated in  equal   specified 
amounts to both the department and the board for costs associated
with the continued implementation  , monitoring, and enforcement
 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 14504 is added to the Corporations Code,
to read:
   14504.  (a) The governing body of a local agency, by ordinance,
may authorize employees of a shelter, pound, or humane society that
contracts with a local agency to provide animal care or control
services, or both, who have qualified as humane officers pursuant to
Section 14502, to issue citations for failure to possess a valid
breeder's permit in violation of Section 122046 of the Health and
Safety Code.  Those employees shall not be authorized to take any
person into custody even though the person to whom the notice is
delivered does not give his or her written promise to appear at a
hearing.  The authority of these employees is limited to the
jurisdiction of the local agency authorizing the employees.
   (b) Citations issued pursuant to subdivision (a) shall be reported
to the Department of Consumer Affairs which, upon proper notice and
hearing, shall impose civil penalties.  Civil penalties shall be
deposited in the Dog and Cat Spay and Neuter Fund in the State
Treasury in accordance with Section 122046 of the Health and Safety
Code.
  SEC. 2.  Section 30503.1 is added to the Food and Agricultural
Code, to read:
   30503.1.  (a) (1) Notwithstanding Section 30503, any shelter,
pound, or humane society that contracts with a local agency to
provide animal care or control services, or both, shall not sell or
give away any dog over four months of age that has not been spayed or
neutered, and no deposits for spaying and neutering services shall
be accepted or collected.  Funding for spaying and neutering services
provided in order to comply with this subdivision shall be made in
accordance with procedures established under this section and Section
122046 of the Health and Safety Code.
   (2) The application for funding for spaying and neutering services
shall include the prior year's adoption figures of the shelter,
pound, or humane society and the dollar amount the entity is
requesting for spay and neutering services.  Additional funds may be
requested if the shelter, pound, or humane society has expanded an
existing spay and neuter program that will be in effect in the year
for which the additional funding is requested.  Each shelter, pound,
or humane society shall keep records of the number of all dogs spayed
and neutered prior to release.
   (b) Notwithstanding Section 30503, no shelter, pound, or humane
society that contracts with a local agency to provide animal care or
control services, or both, shall sell or give away any dog four
months of age or younger that has not been spayed or neutered unless
a deposit for spaying or neutering the dog has been tendered to the
shelter, pound, or humane society.  The deposit shall be in the
amount determined by the shelter, pound, or humane society to be
comparable to the lowest fee charged by veterinarians in the locale,
but shall not exceed forty dollars ($40).  A veterinarian shall
perform the operation.  If a female dog and her puppies are sold or
given away to one individual, only a single deposit shall be
required.  The shelter, pound, or humane society may make appropriate
arrangements for the spaying or neutering of the dog, or may return
the deposit to the person purchasing or receiving the dog upon
presentation of a written statement or receipt from the veterinarian
or clinic that the dog has been spayed or neutered.
   (c) Any dog four months of age or younger at the time it is sold
or given away by the shelter, pound, or humane society shall be
spayed or neutered within six months, or the deposit shall be deemed
unclaimed.
   (d) Any deposit not claimed under subdivision (c) shall be used
only to provide vouchers to the public for spaying or neutering
services.
   (e) Any shelter, pound, or humane society that contracts with a
local agency to provide animal care or control services, or both, may
enter into cooperative agreements with each other and with
veterinarians in carrying out this section.
   (f) This section shall be operative on January 1, 2000.
  SEC. 3.  Section 31751.1 is added to the Food and Agricultural
Code, to read:
   31751.1.  (a) (1) Notwithstanding Section 31751, any shelter,
pound, or humane society that contracts with a local agency to
provide animal care or control services, or both, shall not sell or
give away any cat over four months of age that has not been spayed or
neutered, and no deposits for spaying and neutering services shall
be accepted or collected.  Funding for spaying and neutering services
provided in order to comply with this subdivision shall be made in
accordance with procedures established under this section and Section
122046 of the Health and Safety Code.
   (2) The application for funding for spaying and neutering services
shall include the prior year's adoption figures of the shelter,
pound, or humane society and the dollar amount the entity is
requesting for spay and neutering services.  Additional funds may be
requested if the shelter, pound, or humane society has expanded an
existing spay and neuter program that will be in effect in the year
for which the additional funding is requested.  Each shelter, pound,
or humane society shall keep records of the number of all cats spayed
and neutered prior to release.
   (b) Notwithstanding Section 31751, no shelter, pound, or humane
society that contracts with a local agency to provide animal care or
control services, or both, shall sell or give away any cat four
months of age or younger that has not been spayed or neutered unless
a deposit for spaying or neutering the cat has been tendered to the
shelter, pound, or humane society.  The deposit shall be in the
amount determined by the shelter, pound, or humane society to be
comparable to the lowest fee charged by veterinarians in the locale,
but shall not exceed forty dollars ($40).  A veterinarian shall
perform the operation.  If a female cat and her kittens are sold or
given away to one individual, only a single deposit shall be
required.  The shelter, pound, or humane society may make appropriate
arrangements for the spaying or neutering of the cat, or may return
the deposit to the person purchasing or receiving the cat upon
presentation of a written statement or receipt from the veterinarian
or clinic that the cat has been spayed or neutered.
   (c) Any cat four months of age or younger at the time it is sold
or given away by the shelter, pound, or humane society shall be
spayed or neutered within six months, or the deposit shall be deemed
unclaimed.
   (d) Any deposit not claimed under subdivision (c) shall be used
only to provide vouchers to the public for spaying or neutering
services.
   (e) Any shelter, pound, or humane society that contracts with a
local agency to provide animal care or control services, or both, may
enter into cooperative agreements with each other and with
veterinarians in carrying out this section.
   (f) This section shall be operative on January 1, 2000.
  SEC. 4.   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   or transferred  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   or transferring  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.   
  SEC. 5.   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.   do all of the following:
   (1) Provide breeder application forms for breeder permit numbers.

   (2) Issue breeder permits and keep breeder permits on file.
   (3) Take consumer complaints regarding breeders.
   (4) Provide consumers, upon request, with information on
complaints against breeders.
   (5) Issue citations for noncompliance with this section and
collect fines.
   (6) Issue applications for shelters, pounds, or humane societies
that contract with a local agency to provide animal care or control
services, or both, to obtain funding for spaying and neutering
services provided in accordance with Sections 30503.1 and 31751.1 of
the Food and Agricultural Code. 
   (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   or fee  .
   (c)  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.
   (d)  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)
  two hundred fifty dollars ($250)  .  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.   
   (e) Commencing July 1, 1999, the annual permit fee, for a 12-month
period, shall be one hundred dollars ($100).  All permit fees and
civil penalties collected by the department pursuant to this section,
and Section 14504 of the Corporations Code, shall be deposited in
the Dog and Cat Spaying and Neutering 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 two million dollars ($2,000,000) annually for the purpose of
providing spaying and neutering services for dogs and cats over four
months of age prior to release from shelters, pounds, or humane
societies that contract with a local agency to provide animal care or
control services, or both, in accordance with Sections 30503.1 and
31751.1 of the Food and Agricultural Code.  Moneys remaining in the
fund at the end of the fiscal year shall be carried over to the next
fiscal year, but in no event shall more than two million dollars
($2,000,000) be available for expenditure in any fiscal year.  Moneys
derived from civil penalties deposited in the fund based on
citations imposed for violation of this section, pursuant to Section
14504 of the Corporations Code, shall be allocated to the shelter,
pound, or humane society whose employee, as a qualified humane
officer, was responsible for issuing the citation.
   (f) The Department of Consumer Affairs shall enforce this section.

  SEC. 6.   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.  
   (d) The Board of Equalization shall enforce this section. 

  SEC. 4.   
  SEC. 7.   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   or fee  , 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
  a breeder permit number that shall appear in the
advertisement  .  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)  
   (c)  No person may sell, charge a fee for, trade, or give
away, a dog in a public place, except as provided in subdivision
 (f)   (e)  .  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)  
   (d)  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)  
   (e) Publicly operated pounds and humane societies are exempt
from subdivision  (d)   (c)  , 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)
  (c)  if these organizations spay or neuter a dog
before placing it.  
   (g)  
   (f)  The Department of Consumer Affairs shall enforce this
section.  
  SEC. 5.   
  SEC. 8.  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 , 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.   
  SEC. 9.   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 condition, any one of which that requires
hospitalization or nonelective surgical procedures.  In lieu of the
civil penalties imposed pursuant to Section 122110, any breeder who
violates this section shall be subject to a civil penalty of up to
one thousand dollars ($1,000), or shall be prohibited from selling
dogs for up to six months, or both.  If there is a second offense,
the breeder shall be subject to a civil penalty of up to two thousand
five hundred dollars ($2,500), or a prohibition from selling dogs
for up to three years, or both.  For a third offense, the breeder
shall be subject to a civil penalty of up to five thousand dollars
($5,000), or a prohibition from selling dogs for up to five years, or
both. For a fourth and subsequent offense, the breeder shall be
subject to a civil penalty of up to ten thousand dollars ($10,000) or
a prohibition from selling dogs for up to 10 years, or both.  For
the purpose of this section, a violation that occurred over five
years prior to the most recent violation shall not be considered.
   An action for recovery of the civil penalty and for a court order
enjoining the breeder from engaging in the business of selling dogs
at retail  or wholesale  for the period set forth in this
section, may be prosecuted by the district attorney for the county in
which the violation occurred, or the city attorney for the city in
 that   which  the violation occurred, in
the appropriate court.   
  SEC. 6.5.   
  SEC. 10.   Section 122111 is added to the Health and Safety
Code, to read:  
   122111.  Notwithstanding Section 13340 of the Government Code, the
sum of ninety thousand dollars ($90,000) is continuously
appropriated from the General Fund, without regard to fiscal years,
for allocation as follows:
   (a) Forty-five thousand dollars ($45,000) to the Department of
Consumer Affairs for purposes of implementing Sections 122046 and
122048.
   (b) Forty-five thousand dollars ($45,000) to the Board of
Equalization for purposes of implementing Section 122047.
  SEC. 7.   
   122111.  Commencing January 1, 2000, notwithstanding Section 13340
of the Government Code, the sum of six hundred thousand dollars
($600,000) is continuously appropriated from the General Fund,
without regard to fiscal years, for allocation as follows:
   (a) Three hundred fifty thousand dollars ($350,000) to the
Department of Consumer Affairs for the purposes of implementing,
monitoring, and enforcing Sections 122046 and 122048.
   (b) Two hundred fifty thousand dollars ($250,000) to the Board of
Equalization for purposes of implementing, monitoring, and enforcing
Section 122047.
  SEC. 11.   Section 122125 of the Health and Safety Code is
amended to read:
   122125.  (a) This article shall be known and may be cited as the
Lockyer-Polanco-Farr Pet Protection Act.
        (b) Every pet dealer of dogs and cats shall comply with this
article.  As used in this article, "pet dealer" means a person
engaging in the business of selling dogs or cats, or both, at retail,
and by virtue of the sales of dogs and cats is required to possess a
permit pursuant to Section 6066 of the Revenue and Taxation Code.
For purposes of this article,  the  sale of a dog or cat
from a single litter shall constitute a single sale under Section
6019 of the Revenue and Taxation Code.  This definition does not
apply to breeders of dogs regulated pursuant to Article 1 (commencing
with Section 122045) nor to any person, firm, partnership,
corporation, or other association, that breeds or rears dogs on the
premises of the person, firm, partnership, corporation, or other
association, that has sold, transferred, or given away fewer than one
litter of dogs more than once in a 36-month period.
   (c) For purposes of this article, "purchaser" means a person who
purchases a dog or cat from a pet dealer without the intent to resell
the animal.
   (d) This article shall not apply to publicly operated pounds and
humane societies.   
  SEC. 8.   
  SEC. 12.   Section 122300 of the Health and Safety Code is
amended to read:
   122300.  For purposes of this article:
   (a) "Dog dealer" means any person, firm, partnership, corporation,
or other association that engages in the acquisition of dogs for
retail sale to the public operating from a retail outlet.  "Dog
dealer" does not include duly incorporated nonprofit humane societies
dedicated to the care of unwanted animals that make animals
available for adoption, whether or not a fee for the adoption is
charged, or pet dealers who do not in the normal course of business
sell dogs, but who sometimes exhibit dogs for adoption.
   (b) "Dog breeder" means any person, firm, partnership,
corporation, or other association that breeds and sells dogs at
wholesale or retail.
   (c) "Dog pedigree registry" means any of various private agencies
that serve to keep track of the breed, lineage, physical
characteristics, and historical data regarding dogs that are
registered with the agency.   
  SEC. 9.   
  SEC. 13.   Section 7102 of the Revenue and Taxation Code is
amended to read:
   7102.  The money in the fund shall, upon order of the Controller,
be drawn therefrom for refunds under this part, credits or refunds
pursuant to Section 60202, and refunds pursuant to Section 1793.25 of
the Civil Code, or be transferred in the following manner:
   (a) (1) All revenues, less refunds, derived under this part at the
4 3/4-percent rate, including the imposition of sales and use taxes
with respect to the sale, storage, use, or other consumption of motor
vehicle fuel which would not have been received if the sales and use
tax rate had been 5 percent and if motor vehicle fuel, as defined
for purposes of the Motor Vehicle Fuel License Tax Law (Part 2
(commencing with Section 7301)), had been exempt from sales and use
taxes, shall be estimated by the State Board of Equalization, with
the concurrence of the Department of Finance, and shall be
transferred quarterly to the Transportation Planning and Development
Account, a trust fund in the State Transportation Fund.
   (2) All revenues, less refunds, derived under this part at the 4
3/4-percent rate, resulting from increasing after December 31, 1989,
the rate of tax imposed pursuant to the Motor Vehicle Fuel License
Tax Law on motor vehicle fuel, as defined for purposes of that law,
shall be transferred quarterly to the Transportation Planning and
Development Account, a trust fund in the State Transportation Fund.
   (3) All revenues, less refunds, derived under this part at the 4
3/4-percent rate from the imposition of sales and use taxes on fuel,
as defined for purposes of the Use Fuel Tax Law (Part 3 (commencing
with Section 8601)) and the Diesel Fuel Tax Law (Part 31 (commencing
with Section 60001)), shall be estimated by the State Board of
Equalization, with the concurrence of the Department of Finance, and
shall be transferred quarterly to the Transportation Planning and
Development Account, a trust fund in the State Transportation Fund.
   (4) All revenues, less refunds, derived under this part from a
rate of more than 4 3/4 percent pursuant to Sections 6051.1 and
6201.1 for the period December 1, 1989, to June 5, 1990, inclusive,
shall be transferred to the Disaster Relief Fund created by Section
16419 of the Government Code.
   (5) All revenues, less refunds, derived under this part from a
rate of more than 4 3/4 percent pursuant to Sections 6051.1 and
6201.1 for the period June 6, 1990, to December 31, 1990, inclusive,
which is attributable to the imposition of sales and use taxes with
respect to the sale, storage, use, or other consumption of tangible
personal property other than fuel, as defined for purposes of the Use
Fuel Tax Law (Part 3 (commencing with Section 8601)), shall be
transferred to the Disaster Relief Fund created by Section 16419 of
the Government Code.
   (6) All revenues, less refunds, derived under this part from a
rate of more than 4 3/4 percent pursuant to Sections 6051.1 and
6201.1 for the period June 6, 1990, to December 31, 1990, inclusive,
which is attributable to the imposition of sales and use taxes with
respect to the sale, storage, use, or other consumption of fuel, as
defined for purposes of the Use Fuel Tax Law (Part 3 (commencing with
Section 8601)), shall be transferred to the Disaster Relief Fund
created by Section 16419 of the Government Code.
   (7) All revenues, less refunds, derived under this part from the
taxes imposed pursuant to Sections 6051.2 and 6201.2 shall be
transferred to the Sales Tax Account of the Local Revenue Fund for
allocation to cities and counties as prescribed by statute.
   (8) All revenues, less refunds, derived under this part from the
taxes imposed pursuant to Sections 6051.6 and 6201.6 shall be
transferred to the Interim Public Safety Account in the Local Public
Safety Fund created in Section 30051 of the Government Code for
allocation to counties as prescribed by statute.
   (9) All revenues, less refunds, derived from the taxes imposed
pursuant to Section 35 of Article XIII of the California Constitution
shall be transferred to the Public Safety Account in the Local
Public Safety Fund created in Section 30051 of the Government Code
for allocation to counties as prescribed by statute.
   (10) An amount equal to all revenues, less refunds, derived under
this part at a 4 3/4-percent rate for the period between January 1,
1994, and July 1, 1994, from the increase in sales and use tax
revenue attributable to the increase in the rate of the federal motor
vehicle fuel tax between January 1, 1993, and the rate in effect on
January 1, 1994, shall be estimated by the State Board of
Equalization, with the concurrence of the Department of Finance, and
an amount equal to that amount, but not exceeding seven million five
hundred thousand dollars ($7,500,000) shall be transferred from the
Retail Sales Tax Fund to the Small Business Expansion Fund created by
Article 5 (commencing with Section 14030) of Chapter 1 of Part 5 of
Division 3 of Title 1 of the Corporations Code.  
   (11) In each of the 1999-2000, 2000-2002, and 2001-2002 fiscal
years, all revenues, less refunds, derived  
   (11) All revenues, less refunds, derived  under this part
from taxes imposed upon the retail sales of a dog or dogs and not
subject to transfer by any other provision of this subdivision, shall
be transferred to the  Dog Breeder's   Dog and
Cat Spaying and Neutering  Compliance Fund, created by
subdivision (d) of Section 122046 of the Health and Safety Code, but
in no event shall the amount so transferred in any fiscal year exceed
the amount that, when combined with any other moneys deposited in
that fund for that same fiscal year, equals a total of 
twelve million dollars ($12,000,000)   two million
dollars ($2,000,000)  .
   (b) The balance shall be transferred to the General Fund.
   (c) The estimates required by subdivision (a) shall be based on
taxable transactions occurring during a calendar year, and the
transfers required by subdivision (a) shall be made during the fiscal
year that commences during that same calendar year.  Transfers
required by paragraphs (1), (2), and (3) of subdivision (a) shall be
made quarterly.
   (d) Notwithstanding the designation of the Transportation Planning
and Development Account as a trust fund pursuant to subdivision (a),
the Controller may use the Transportation Planning and Development
Account for loans to the General Fund as provided in Sections 16310
and 16381 of the Government Code.  The loans shall be repaid with
interest from the General Fund at the Pooled Money Investment Account
rate.
   (e) The Legislature may amend this section, by statute passed in
each house of the Legislature by rollcall vote entered in the
journal, two-thirds of the membership concurring, if the statute is
consistent with, and furthers the purposes of this section.

  SEC. 10.   
  SEC. 14.  The sum of three hundred thirty thousand dollars
($330,000) is hereby appropriated from the General Fund to be
allocated as follows for the 1998-99 fiscal year:  
   (1)  
   (a)  One hundred sixty-five thousand dollars ($165,000) to
the Department of Consumer Affairs for purposes of startup costs
associated with the implementation and enforcement of Sections 122046
and 122048 of the Health and Safety Code.  
   (2)  
   (b)  One hundred sixty-five thousand dollars ($165,000) to
the Board of Equalization for purposes of startup costs associated
with the implementation of Section 122047 of the Health and Safety
Code.