House File 2339 - Introduced



                                       HOUSE FILE       
                                       BY  PETERSEN


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the establishment and level of fees for the
  2    licensing and inspection of hotels, home food establishments,
  3    and food establishments.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 6321HH 81
  6 rn/je/5

PAG LIN



  1  1    Section 1. Section 137C.9, Code 2005, is amended to read as
  1  2 follows:
  1  3    137C.9  LICENSE FEES.
  1  4    Either the department or the municipal corporation shall
  1  5 collect the following annual license fees: fees in amounts
  1  6 determined by the department by rule to be sufficient to
  1  7 offset inspection and administration costs.  Fee levels shall
  1  8 be adjusted by the department on an annual basis, based upon
  1  9 the previous year's inspection and administration cost levels
  1 10 as reported by the regulatory authority and an estimate of
  1 11 increased costs to be incurred in the upcoming year.
  1 12    1.  For a hotel containing fifteen guest rooms or less,
  1 13 twenty dollars.
  1 14    2.  For a hotel containing more than fifteen but less than
  1 15 thirty=one guest rooms, thirty dollars.
  1 16    3.  For a hotel containing more than thirty but less than
  1 17 seventy=six guest rooms, forty dollars.
  1 18    4.  For a hotel containing more than seventy=five but less
  1 19 than one hundred fifty guest rooms, fifty dollars.
  1 20    5.  For a hotel containing one hundred fifty or more guest
  1 21 rooms, seventy=five dollars.
  1 22    Fees collected by the department shall be deposited in the
  1 23 general fund of the state.  Fees collected by a municipal
  1 24 corporation shall be retained by it and for its use.
  1 25    Sec. 2. Section 137D.2, subsection 1, Code 2005, is amended
  1 26 to read as follows:
  1 27    1.  A person shall not open or operate a home food
  1 28 establishment until a license has been obtained from the
  1 29 department of inspections and appeals.  The department shall
  1 30 collect a fee of twenty=five dollars for a license in an
  1 31 amount determined by the department by rule to be sufficient
  1 32 to offset inspection and administration costs.  Fee levels
  1 33 shall be adjusted by the department on an annual basis, based
  1 34 upon the previous year's inspection and administration cost
  1 35 levels and an estimate of increased costs to be incurred in
  2  1 the upcoming year.  After collection, the fees shall be
  2  2 deposited in the general fund of the state.  A license shall
  2  3 expire one year from date of issue.  A license is renewable.
  2  4    Sec. 3. Section 137F.6, Code 2005, is amended to read as
  2  5 follows:
  2  6    137F.6  LICENSE FEES.
  2  7    The regulatory authority shall collect the following annual
  2  8 license fees: fees in amounts determined by the department by
  2  9 rule to be sufficient to offset inspection and administration
  2 10 costs.  Fee levels shall be adjusted by the department on an
  2 11 annual basis, based upon the previous year's inspection and
  2 12 administration cost levels as reported by the regulatory
  2 13 authority and an estimate by the regulatory authority of
  2 14 increased costs to be incurred in the upcoming year.
  2 15    1.  For a mobile food unit or pushcart, twenty dollars.
  2 16    2.  For a temporary food establishment per fixed location,
  2 17 twenty=five dollars.
  2 18    3.  For a vending machine, twenty dollars for the first
  2 19 machine and five dollars for each additional machine.
  2 20    4.  For a food establishment which prepares or serves food
  2 21 for individual portion service intended for consumption on=
  2 22 the=premises, the annual license fee shall correspond to the
  2 23 annual gross food and beverage sales of the food
  2 24 establishment, as follows:
  2 25    a.  Annual gross sales of under fifty thousand dollars,
  2 26 fifty dollars.
  2 27    b.  Annual gross sales of at least fifty thousand dollars
  2 28 but less than one hundred thousand dollars, eighty=five
  2 29 dollars.
  2 30    c.  Annual gross sales of at least one hundred thousand
  2 31 dollars but less than two hundred fifty thousand dollars, one
  2 32 hundred seventy=five dollars.
  2 33    d.  Annual gross sales of two hundred fifty thousand
  2 34 dollars but less than five hundred thousand dollars, two
  2 35 hundred dollars.
  3  1    e.  Annual gross sales of five hundred thousand dollars or
  3  2 more, two hundred twenty=five dollars.
  3  3    5.  For a food establishment which sells food or food
  3  4 products to consumer customers intended for preparation or
  3  5 consumption off=the=premises, the annual license fee shall
  3  6 correspond to the annual gross food and beverage sales of the
  3  7 food establishment, as follows:
  3  8    a.  Annual gross sales of under ten thousand dollars,
  3  9 thirty dollars.
  3 10    b.  Annual gross sales of at least ten thousand dollars but
  3 11 less than two hundred fifty thousand dollars, seventy=five
  3 12 dollars.
  3 13    c.  Annual gross sales of at least two hundred fifty
  3 14 thousand dollars but less than five hundred thousand dollars,
  3 15 one hundred fifteen dollars.
  3 16    d.  Annual gross sales of at least five hundred thousand
  3 17 dollars but less than seven hundred fifty thousand dollars,
  3 18 one hundred fifty dollars.
  3 19    e.  Annual gross sales of seven hundred fifty thousand
  3 20 dollars or more, two hundred twenty=five dollars.
  3 21    6.  For a food processing plant, the annual license fee
  3 22 shall correspond to the annual gross food and beverage sales
  3 23 of the food processing plant, as follows:
  3 24    a.  Annual gross sales of under fifty thousand dollars,
  3 25 fifty dollars.
  3 26    b.  Annual gross sales of at least fifty thousand dollars
  3 27 but less than two hundred fifty thousand dollars, one hundred
  3 28 dollars.
  3 29    c.  Annual gross sales of at least two hundred fifty
  3 30 thousand dollars but less than five hundred thousand dollars,
  3 31 one hundred fifty dollars.
  3 32    d.  Annual gross sales of five hundred thousand dollars or
  3 33 more, two hundred fifty dollars.
  3 34    7.  For a farmers market where potentially hazardous food
  3 35 is sold or distributed, one seasonal license fee of one
  4  1 hundred dollars for each vendor on a countywide basis.
  4  2    A food establishment covered by subsections 4 and 5 shall
  4  3 be assessed license fees not to exceed seventy=five percent of
  4  4 the total fees applicable under both subsections.
  4  5    Fees collected by the department shall be deposited in the
  4  6 general fund of the state.  Fees collected by a municipal
  4  7 corporation shall be retained by the municipal corporation for
  4  8 regulation of food establishments and food processing plants
  4  9 licensed under this chapter.
  4 10    Each vending machine licensed under this chapter shall bear
  4 11 a readily visible identification tag or decal provided by the
  4 12 licensee, containing the licensee's business address and phone
  4 13 number, and a company license number assigned by the
  4 14 regulatory authority.
  4 15                           EXPLANATION
  4 16    This bill provides for a change in the method by which fees
  4 17 are determined for the licensing and inspection of hotels,
  4 18 home food establishments, and food establishments.
  4 19    Currently, fee levels are specified for the licensing and
  4 20 inspection of hotels in Code section 137C.9, for home food
  4 21 establishments in Code section 137D.2, and for food
  4 22 establishments in Code section 137F.6.  The bill removes these
  4 23 specified fee levels, and instead provides that fees shall be
  4 24 in amounts determined by the department of inspections and
  4 25 appeals by rule sufficient to offset inspection and
  4 26 administration costs.  The bill provides that the fee levels
  4 27 shall be adjusted by the department on an annual basis, based
  4 28 upon the previous year's inspection and administration cost
  4 29 levels as reported by either the department or a municipal
  4 30 corporation which has contracted with the department for
  4 31 licensing and inspection, and an estimate of increased costs
  4 32 to be incurred in the upcoming year.
  4 33 LSB 6321HH 81
  4 34 rn:nh/je/5