House Study Bill 623 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON HEIN) A BILL FOR An Act regulating the sale of eggs by grocery stores 1 participating in federal programs, and providing for 2 penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5446YC (3) 87 da/rj

H.F. _____ Section 1. NEW SECTION . 135.16A Vendors participating in 1 federal programs —— egg sales. 2 1. As used in this section, unless the context otherwise 3 requires: 4 a. “Conventional eggs” means eggs others than specialty 5 eggs. 6 b. “Eggs” means shell eggs that are graded as “AA”, “A”, or 7 “B” pursuant to 7 C.F.R. pt. 56, subpt. A, and that are sold at 8 retail in commercial markets. 9 c. “Federal food program” means any of the following: 10 (1) The supplemental nutrition assistance program as 11 provided in 7 U.S.C. §2011, et seq. 12 (2) The special supplemental food program for women, 13 infants, and children as provided in 42 U.S.C. §1786, et seq. 14 d. “Grocery store” means a food establishment as defined 15 in section 137F.1 licensed by the department of inspections 16 and appeals pursuant to section 137F.4, to sell food or food 17 products to customers intended for preparation or consumption 18 off premises. 19 e. “Specialty eggs” means eggs produced by domesticated 20 chickens, and sold at retail in commercial markets if the 21 chickens producing such eggs are advertised as being housed in 22 any of the following environments: 23 (1) Cage-free. 24 (2) Free-range. 25 (3) Enriched colony cage. 26 2. a. The department of agriculture and land stewardship 27 shall assist the Iowa department of public health in 28 establishing rules necessary to implement, administer, and 29 enforce this section. 30 b. If necessary to implement, administer, and enforce this 31 section, the Iowa department of public health, in cooperation 32 with the department of agriculture and land stewardship, shall 33 submit a request to the United States department of agriculture 34 for a waiver or other exception from regulations as deemed 35 -1- LSB 5446YC (3) 87 da/rj 1/ 3

H.F. _____ feasible by the Iowa department of public health. The Iowa 1 department of public health shall regularly report the status 2 of such request to the legislative services agency. 3 3. A grocery store that is a vendor participating in a 4 federal food program and offering specialty eggs for retail 5 sale shall maintain a regular inventory of conventional eggs 6 for retail sale. The inventory of conventional eggs shall be 7 sufficient to meet the grocery store’s regular customer demand 8 for such eggs. 9 4. This section does not require a grocery store to do any 10 of the following: 11 a. Stock or sell specialty eggs. 12 b. Stock or sell eggs, if the grocery store elects not to 13 stock or sell conventional eggs for retail sale as part of its 14 normal business. 15 c. Comply with the provisions of this section, if the 16 grocery store’s inventory of eggs for retail sale was limited 17 to specialty eggs prior to January 1, 2018. 18 5. a. A violation of subsection 3 by a grocery store 19 shall not be construed to disqualify a grocery store from 20 participating in a federal food program unless otherwise 21 authorized by the United States department of agriculture. 22 b. A grocery store that fails to maintain a regular 23 inventory of conventional eggs for retail sale as required in 24 subsection 3, shall be subject to a civil penalty of not more 25 than one hundred dollars. Each day that a violation exists 26 constitutes a separate offense. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 GENERAL. This bill applies to a grocery store that 31 participates as a vendor in federal health and nutrition 32 programs providing food assistance to low-income persons. 33 Under the bill’s provisions, if a grocery store carries an 34 inventory of specialty eggs for retail sale it must also carry 35 -2- LSB 5446YC (3) 87 da/rj 2/ 3

H.F. _____ an inventory of conventional eggs (shell eggs that are not 1 considered specialty eggs) for sale. Under the bill, specialty 2 eggs are described as having been produced by chickens 3 advertised as having been housed in a cage-free, free-range, or 4 enriched colony cage environment. 5 DEPARTMENTAL RESPONSIBILITIES. The referenced federal 6 programs are limited to the supplemental nutrition assistance 7 program (SNAP), informally known as the food stamp program; 8 and the special supplemental food program for women, infants, 9 and children (WIC). The two programs are administered by the 10 United States department of agriculture (USDA) in conjunction 11 with the Iowa department of public health (department). 12 Generally, standards for the commercial production and 13 marketing of eggs (by egg-laying hens) are established by 14 several federal agencies including the USDA (21 U.S.C. §1031 15 et seq.). The bill requires the department to implement, 16 administer, and enforce its provisions, including by: (1) 17 adopting rules in consultation with the department of 18 agriculture and land stewardship, and (2) applying for a waiver 19 from the USDA if needed. 20 EXCEPTIONS. The bill’s provisions do not require a grocery 21 store to: (1) stock eggs if it does not stock specialty eggs 22 for sale or (2) stock conventionally produced eggs for sale if 23 it had not stocked such eggs for sale prior to January 1, 2018. 24 PENALTIES. A grocery store violating the bill’s provisions 25 is not disqualified from participating in either federal 26 program, unless otherwise authorized by the USDA. The grocery 27 store is subject to a civil penalty of not more than $100 for 28 each day of a violation. 29 -3- LSB 5446YC (3) 87 da/rj 3/ 3