Be it enacted by the General Assembly of Virginia:

1.  That § 3.1-796.71 of the Code of Virginia is amended and reenacted as follows:

§ 3.1-796.71. Failure of dealer or pet shop to provide adequate care; overbreeding; penalty.

Any dealer or pet shop that fails to adequately house, feed, water, exercise or care for animals in his or its possession or custody as provided for under this chapter shall be guilty of a Class 3 misdemeanor. Any dealer that breeds more than 20 litters of dogs or cats, or sells more than 100 dogs or cats, in any year shall be guilty of a Class 3 misdemeanor. Such animals shall be subject to seizure and impoundment, and upon conviction of such person the animals may be sold, euthanized, or disposed of as provided by § 3.1-796.96 for licensed, tagged, or tattooed animals. Such failure shall also constitute grounds for revocation of a permit or certificate of registration after public hearing. Any funds that result from such sale shall be used first to pay the costs of the local jurisdiction for the impoundment and disposition of the animals, and any funds remaining shall be paid to the owner, if known. If the owner is not found, the remaining funds shall be paid into the Literary Fund.