The Hawaiian Humane Society and state lawmakers are rethinking how to regulate large-scale dog breeders after a state audit concluded that bills before the Legislature are flawed and that there is no hard evidence that such dog-breeding operations continue to be a problem in the islands.

Hawaii is one of 22 states that does not regulate dog breeders, state Auditor Marion Higa said in a report this month.

However, despite the seizure of 153 dogs at a Waimanalo dog-breeding operation in February that was the biggest case of its kind in Hawaii, the Hawaiian Humane Society has been unable to provide to Higa’s office evidence of similar large-scale enterprises.

The primary bill aimed at regulating so-called puppy mills — Senate Bill 1522, introduced in January — is in conference committee and would require the state Department of Commerce and Consumer Affairs to issue licenses to large-scale dog breeders.

But SB 1522 is overly complicated and would be financially unrealistic to manage, the auditor’s report said.

The department also is supposed to focus on protecting consumers, the audit said, while SB 1522 clearly is aimed at protecting dogs.

"We found little more than anecdotal evidence for a need to protect the public’s health, safety and welfare from abusive activities of large-scale dog breeders," the audit said. "We also found that the primary goal of the bill is to protect dogs rather than the public, and the DCCA is ill-equipped to administer regulation of animal breeders. In addition, financing is an unresolved issue due to the lack of information on the scale and extent of dog breeding in Hawaii."

Higa’s critique of the effort to regulate breeders is certain to upset dog lovers.

At a hearing in March, the bill generated testimony from more than 1,000 people, most of whom "overwhelmingly" supported the bill, the audit said.

Failing to regulate large-scale dog breeders in Hawaii "is a mistake," said Rosemary Fazio, who first fostered, then later adopted an emaciated, fearful and pregnant golden retriever named Lani taken from the Waimanalo puppy mill.

"It’s a horrible industry," Fazio said.

Oahu has an estimated dog population of 174,000 with an annual 8 percent net gain of 14,000 more dogs, according to the audit.

With an average price of $500 to $1,500 per puppy, large-scale dog breeders could be part of a potential $7 million-a-year industry in Hawaii, the audit said.

State Sen. Clayton Hee, chairman of the Senate Judiciary and Labor Committee and the sponsor of the bill, said he won’t give up trying to regulate puppy mills.

Hee is reviewing Higa’s audit and is considering changing his bill in response.

"The issue is too great to be ignored," Hee said. "Controls on large-scale dog breeding facilities must be implemented to prevent the kind of abuse that has occurred and is presently ongoing. Some form of legislation to regulate the misbehavior and cruelty upon animals will be evaluated and, I believe, will be passed."

Humane societies in all Hawaii counties estimate there are about 20 large-scale breeders on Oahu, 10 on Hawaii island and none on Maui or Kauai, according to the audit.

The Hawaiian Humane Society is pushing the bill, in part to allow its investigators into puppy mills to regulate them and prevent the kind of abuses uncovered in Waimanalo, where fecal matter and urine were found in some water and food bowls, dogs had fur matted with fecal matter and some could not walk because their legs were bound by matted fur.

"We have a long-standing history of breeder cases that illuminated the need for access and regulation,"•spokeswoman Jacque LeBlanc said. "We’ve got to regroup and think of what, if anything, we have to do for the next legislative session."

The Hawaiian Humane Society continues to receive reports of suspected large dog-breeding facilities and has created a Puppy Mill Task Force to investigate.

"We’re trying to get the data that the state auditor says is lacking, because our main goal is to gain access to the property," said Keoni Vaughn, director of operations.

The audit said other states have better alternatives to SB 1522. Oklahoma, for instance, created an independent board that delegates oversight of dog breeders to veterinarians and animal welfare experts.

Eighteen states also created "puppy lemon laws" that require sellers to reimburse puppy buyers for the purchase price and cost of veterinary care if the puppy is found to be diseased or deformed within a certain period of time, according to the audit.

"It’s all up for discussion,"•Vaughn said. "We’re going to have to regroup."

Alicia Maluafiti, president of the nonprofit animal group Poi Dogs and Popoki, has concerns with the bill and believes the bigger problem of pet overpopulation is caused by the cumulative efforts of smaller "backyard breeders,"•not puppy mills.

"This bill doesn’t address the larger problem of the backyard hobby breeders," Maluafiti said. "Consumers are getting stuck with animals that are genetically deficient because of too much inbreeding."

House Majority Leader Blake Oshiro sponsored a House version of Hee’s bill, along with a separate measure that would require pet stores to sterilize animals they sell.

"Seeing what happened with the Waimanalo case is just a prime example of why we need a closer examination of this industry and what it’s truly doing for consumers, as well as the health and welfare of the animals," Oshiro said. "I definitely do think there are puppy mills out there. Unfortunately, most consumers that purchase animals from pet stores end up getting a puppy from a puppy mill."

Fazio, an attorney, and her husband, David Randell, an ophthalmologist, took in Lani on March 18.

Their veterinarian, Dr. Francis Kamiya of the Newtown Veterinary Clinic, estimated that Lani was 1 to 2 years old.

"She was skin and bones — emaciated and anemic, with mange and sores all over her body," Fazio said.

Randell said that Lani was so weak "she could hardly walk at the time," adding, "She had two kinds of worms and an infection in her gut that gave her chronic diarrhea that we couldn’t stop for four to six weeks. With all of the puppies, our vet was afraid she would die."

On March 28, Lani gave birth to 14 undersize puppies. The dog was so weak that Fazio and Randell had to pull the puppies from her body. Two were born dead and another died two weeks later. The puppies normally should have weighed 12 to 13 ounces, but most were only 6 to 8 ounces, Fazio said.

Kamiya donated about $3,000 worth of veterinary care, though Fazio and Randell still spent about $2,000 on Lani and her puppies, Fazio said.

Lani’s weight has since climbed to 56 pounds from 44 pounds, and she has been accepted by the family’s pack of two other golden retrievers, Liko and Max.

"Before, she was emotionally shut down and in a daze," Fazio said. "She was so weak she could hardly walk, and she would cower whenever she saw a strange man. Now she’s a completely outgoing, friendly, happy dog."

All of Lani’s puppies have since been adopted. The owners include Hawaii Supreme Court Associate Justice Simeon Acoba, Kamehameha Schools trustee Micah Kane and a Kona coffee farmer, Fazio said.

Fazio, Randell and the Hawaiian Humane Society helped screen candidates for Lani’s puppies, Fazio said, "because it’s what a responsible dog breeder would do."

As Lani continues to thrive in her new home in Makiki, the Hawaiian Humane Society is working to develop a new approach to identify and eventually close more puppy mills.

"We continue to respond to complaints about breeding operations," spokeswoman LeBlanc said. "But without the access, we cannot protect these animals nor begin to quantify how many there actually are."