Under the measure that passed the legislature Tuesday, breeders would be able to keep no more than 50 breeding dogs, The Portland Oregonian reported Wednesday.
The bill also sets standards for care. Kennel owners would be required to provide at least an hour of exercise for animals each day and to keep dogs in roomy cages with intact floors.
Pet stores would have to provide information on where dogs were bred and how many litters the breeder sold the previous year. They would also have to refund money for dogs sold with some birth defects.
The bill passed the state Senate 18-10 with most Republicans opposing it. It now goes to Gov. Ted Kulongoski, who has said he supports it.
Carol Lackey, owner of Ron-Del Kennels in Jackson County in southwestern Oregon, said she might have to get out of the business because of the bill's requirements. She said her kennel is licensed and gets regular inspections from county and federal agencies and the American Kennel Club.