Bill Summary – FastDemocracy

SB 103
                       Department of Legislative Services
                               Maryland General Assembly
                                     2021 Session
                            FISCAL AND POLICY NOTE
                                 Enrolled - Revised
Senate Bill 103                  (Senator Kramer)
Finance                                                                    Economic Matters
      Domestic Animals - Retail Pet Stores and the Task Force to Study Canine
                   Breeding Facilities and Sourcing Standards
This bill alters the definition of a “retail pet store” that is prohibited from selling cats or
dogs to (1) include brokers; (2) no longer specify that the store must be open to the public;
and (3) exclude an establishment at which the animals being sold were born. Additionally,
the bill establishes a Task Force to Study Canine Breeding Facilities and Sourcing
Standards to be staffed by the Maryland Department of Agriculture (MDA). The bill takes
effect July 1, 2021, and the task force terminates June 30, 2022.
                                     Fiscal Summary
State Effect: The bill’s imposition of existing penalty provisions does not have a material
impact on State finances or operations. MDA and the Office of the Attorney General
(OAG), Consumer Protection Division, can handle the bill’s requirements with existing
resources. General fund revenues are likely not materially affected, as discussed below.
Local Effect: The bill does not materially affect local government finances or operations.
Small Business Effect: Meaningful.
                                          Analysis
Bill Summary: The bill alters the definitions of “breeder” and “broker” to include
individuals who sell or transfer cats as well as dogs. Additionally, the bill repeals an
uncodified provision encouraging retail pet stores to collaborate with animal welfare
organizations to showcase cats and dogs for adoption or for purchase from local breeders,
and makes other technical changes.
Task Force to Study Canine Breeding Facilities and Sourcing Standards
The Governor must request that a representative from the U.S. Department of Agriculture’s
(USDA) Animal Care program participate in the task force; the Senate President and the
Speaker of the House must jointly designate the chair of the task force. A member of the
task force may not receive compensation but is entitled to reimbursement for expenses.
The task force must study canine breeding facilities, including online sales of canines
through breeding facilities. In conducting the study, the task force must:
      review any achievements made in the past 20 years in combating substandard canine
       breeding practices;
      identify and assess current efforts being taken in the State, other states, and the
       federal government to address substandard canine breeding practices;
      identify nongovernmental comprehensive standards for canine breeding and tour
       facilities in full compliance with those standards;
      determine if any gaps exist between current State, federal, and nongovernmental
       comprehensive standards for canine breeding;
      recommend actions necessary to harmonize canine breeding standards in the State
       with those of USDA; and
      recommend any legislative actions necessary to create standards for any person who
       sells or negotiates the sale or purchase of dogs in the State.
By December 1, 2021, the task force must report its findings and recommendations to the
Governor and the General Assembly.
Current Law: In general, a dog or cat younger than eight weeks of age may not be sold
or distributed in the State unless it is accompanied by its female parent. A person must
obtain a local kennel license if the person (1) owns or has custody of six or more unspayed
female dogs over six months old kept for the purpose of breeding the dogs and selling their
offspring or (2) sells dogs from six or more litters per year.
Chapter 237 of 2018 prohibits a retail pet store from offering for sale or otherwise
transferring or disposing of cats or dogs. This prohibition may not be construed to prohibit
a retail pet store from collaborating with an animal welfare organization or animal control
unit to offer space for those entities to showcase cats or dogs for adoption. “Retail pet store”
means a for-profit establishment open to the public that sells or offers for sale domestic
animals to be kept as household pets. “Offer for sale” includes to sell, offer to transfer,
offer for adoption, advertise for the sale, barter, auction, give away, or otherwise dispose
of a domestic animal. “Broker” means a person who transfers dogs for resale by another
person; there are no specified requirements for brokers remaining in current law.
SB 103/ Page 2
Violation of laws related to retail pet stores is an unfair, abusive, or deceptive trade practice
under the Maryland Consumer Protection Act (MCPA), subject to MCPA’s civil and
criminal penalty provisions. OAG’s Consumer Protection Division is responsible for
enforcing MCPA and investigating the complaints of aggrieved consumers. The division
may attempt to conciliate the matter, issue a cease and desist order, seek an injunction, or
file a civil action in court. A merchant who violates MCPA is subject to a fine of up to
$10,000 for each violation and up to $25,000 for each repetition of the same violation. In
addition to any civil penalties that may be imposed, any person who violates MCPA is
guilty of a misdemeanor and, on conviction, may be subject to a fine of up to $1,000 and/or
imprisonment for up to one year.
State Fiscal Effect: The sale of cats and dogs is subject to the State sales tax. Therefore,
general fund revenues are affected beginning as early as fiscal 2022 to the extent that the
bill alters the number of such taxable sales. The amount, if any, cannot be reliably estimated
at this time and depends on the quantity of transactions prohibited/authorized and the sales
tax that would have been remitted from those transactions. The overall effect is likely
minimal. The bill’s imposition of existing penalty provisions does not have a material
impact on State finances or operations. OAG’s Consumer Protection Division can handle
the bill’s requirements with existing resources.
Small Business Effect: Brokers, which may be small businesses, are negatively affected
by the bill’s prohibition against the sale of cats and dogs. Conversely, some small
businesses previously prohibited from selling cats and dogs benefit from the ability to do
so.
                                 Additional Information
Prior Introductions: SB 625 of 2020, as amended, passed the Senate and passed second
reading in the House, but no further action was taken.
Designated Cross File: None.
Information Source(s): Office of the Attorney General (Consumer Protection Division);
Department of Legislative Services
Fiscal Note History:       First Reader - January 19, 2021
rh/mcr                     Third Reader - February 19, 2021
                           Enrolled - April 21, 2021
                                  Revised - Amendment(s) - April 21, 2021
SB 103/ Page 3
Analysis by: Tyler Allard   Direct Inquiries to:
                            (410) 946-5510
                            (301) 970-5510
SB 103/ Page 4
Statutes affected: 
Text - First - Business Regulation – Retail Pet Stores – Modifications (No More Puppy– and Kitten–Mills Act of 2021): 19-701 Business Regulation, 19-703 Business Regulation
Text - Third - Business Regulation – Retail Pet Stores – Modifications (No More Puppy– and Kitten–Mills Act of 2021): 19-701 Business Regulation, 19-703 Business Regulation
Text - Enrolled - Domestic Animals - Retail Pet Stores and the Task Force to Study Canine Breeding Facilities and Sourcing Standards: 19-701 Business Regulation, 19-703 Business Regulation