We had two kennel permits in town and the state shut one down because of abuse, neglect, you name it. I had to deal with the state and our detectives for months in trying to get him shut down. I certainly would not want to be the one to have to inspect, make a decision, and then have to go to court for permission. Our health inspector was also involved, but I'm not certain he would want to do it on a full-time basis.
We have no pet stores, and I don't know if those who have two or more dogs are breeding them. I'd have to look at the actual licenses to see if they are spayed or neutured.