The local governing body may make such additional bylaws and regulations concerning the licensing, muzzling of vicious dogs as defined in RSA 466:31, II(g), and restraining of dogs as it deems reasonable, and may affix penalties not exceeding $50 for a breach thereof. Such bylaws and regulations shall relate only to dogs owned or kept in such city or town, and the annual fee required for a license shall in no case be more than $1 in addition to the sum hereby required. The following dogs shall be exempt from this section: dogs being used for hunting, supervised competition, exhibition or training for such activities if accompanied by the owner or custodian, or a dog which is guarding, working, or herding livestock, as defined in RSA 21:34-a, II(a)(4) if the owner or custodian is able to see or hear the dog or have reasonable knowledge of where the dog is located, even if such dog is out of the line of the owner or custodian's sight.
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