Senate File 184 - Introduced SENATE FILE BY DOTZLER Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to hotel, food establishment, and food processing 2 plant licensing and inspection, providing fees, making 3 penalties applicable, making an appropriation, and providing 4 an effective date. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2412SS 82 7 nh/je/5 PAG LIN 1 1 Section 1. Section 137C.6, Code 2007, is amended to read 1 2 as follows: 1 3 137C.6 AUTHORITY TO ENFORCE. 1 4 1. The director shall regulate, license, and inspect 1 5 hotels and enforce the Iowa hotel sanitation code in Iowa. 1 6 Municipal corporations shall not regulate, license, inspect, 1 7 or collect license fees from hotels except as provided for in 1 8 the Iowa hotel sanitation code. 1 9 2. If a municipal corporation wants its local board of 1 10 health to license, inspect, and otherwise enforce the Iowa 1 11 hotel sanitation code within its jurisdiction, the municipal 1 12 corporation may enter into an agreement to do so with the 1 13 director. The director may enter into the agreement if the 1 14 director finds that the local board of health has adequate 1 15 resources to perform the required functions. A municipal 1 16 corporation may only enter into an agreement to enforce the 1 17 Iowa hotel sanitation code if it also agrees to enforce the 1 18Iowa food coderules setting minimum standards to protect 1 19 consumers from foodborne illness adopted pursuant to section 1 20137F.3137F.2. 1 21 3. A local board of health that is responsible for 1 22 enforcing the Iowa hotel sanitation code within its 1 23 jurisdiction pursuant to an agreement, shall make an annual 1 24 report to the director providing the following information: 1 251.a. The total number of hotel licenses granted or 1 26 renewed during the year. 1 272.b. The number of hotel licenses granted or renewed 1 28 during the year broken down into the following categories: 1 29a.(1) Hotels containing fifteen guest rooms or less. 1 30b.(2) Hotels containing more than fifteen but less than 1 31 thirty=one guest rooms. 1 32c.(3) Hotels containing more than thirty but less than 1 33 seventy=six guest rooms. 1 34d.(4) Hotels containing more than seventy=five but less 1 35 than one hundred fifty guest rooms. 2 1e.(5) Hotels containing one hundred fifty or more guest 2 2 rooms. 2 33.c. The amount of money collected in license fees 2 4 during the year. 2 54.d. Other information the director requests. 2 6 4. The director shall monitor local boards of health to 2 7 determine if they are enforcing the Iowa hotel sanitation code 2 8 within their respective jurisdictions. If the director 2 9 determines that the Iowa hotel sanitation code is enforced by 2 10 a local board of health, such enforcement shall be accepted in 2 11 lieu of enforcement by the department in that jurisdiction. 2 12 If the director determines that the Iowa hotel sanitation code 2 13 is not enforced by a local board of health, the director may 2 14 rescind the agreement after reasonable notice and an 2 15 opportunity for a hearing. If the agreement is rescinded, the 2 16 director shall assume responsibility for enforcement in the 2 17 jurisdiction involved. 2 18 Sec. 2. Section 137F.1, subsection 7, Code 2007, is 2 19 amended by striking the subsection. 2 20 Sec. 3. Section 137F.1, subsection 8, unnumbered paragraph 2 21 1, Code 2007, is amended to read as follows: 2 22 "Food establishment" means an operation that stores, 2 23 prepares, packages, serves, vends, or otherwise provides food 2 24 for human consumption and includes a food service operation in 2 25 a salvage or distressed food operation, school, summer camp, 2 26 residential service substance abuse treatment facility, 2 27 halfway house substance abuse treatment facility, correctional 2 28 facility operated by the department of corrections, the state 2 29 training school, or the Iowa juvenile home. "Food 2 30 establishment" does not include the following: 2 31 Sec. 4. Section 137F.2, Code 2007, is amended by striking 2 32 the section and inserting in lieu thereof the following: 2 33 137F.2 ADOPTION BY RULE. 2 34 The department shall, in accordance with chapter 17A, adopt 2 35 rules setting minimum standards for entities covered under 3 1 this chapter to protect consumers from foodborne illness. In 3 2 so doing, the department may adopt by reference, with or 3 3 without amendment, the United States food and drug 3 4 administration food code, which shall be specified by title 3 5 and edition, date of publication, or similar information. The 3 6 rules and standards shall be formulated in consultation with 3 7 municipal corporations under agreement with the department, 3 8 affected state agencies, and industry, professional, and 3 9 consumer groups. 3 10 Sec. 5. Section 137F.3, Code 2007, is amended to read as 3 11 follows: 3 12 137F.3 AUTHORITY TO ENFORCE. 3 13 1. The director shall regulate, license, and inspect food 3 14 establishments and food processing plants and enforce this 3 15 chapter pursuant to rules adopted by the department in 3 16 accordance with chapter 17A. Municipal corporations shall not 3 17 regulate, license, inspect, or collect license fees from food 3 18 establishments and food processing plants, except as provided 3 19 in this section. 3 20 2. A municipal corporation may enter into an agreement 3 21 with the director to provide that the municipal corporation 3 22 shall license, inspect, and otherwise enforce this chapter 3 23 within its jurisdiction. The director may enter into the 3 24 agreement if the director finds that the municipal corporation 3 25 has adequate resources to perform the required functions. A 3 26 municipal corporation may only enter into an agreement to 3 27 enforce theIowa food coderules setting minimum standards to 3 28 protect consumers from foodborne illness adopted pursuant to 3 29thissection 137F.2 if it also agrees to enforce the Iowa 3 30 hotel sanitation code pursuant to section 137C.6. However, 3 31 the department shall license and inspect all food processing 3 32 plants which manufacture, package, or label food products. A 3 33 municipal corporation may license and inspect, as authorized 3 34 by this section, food processing plants whose operations are 3 35 limited to the storage of food products. 4 1 3. If the director enters into an agreement with a 4 2 municipal corporation as provided by this section, the 4 3 director shall provide that the inspection practices of a 4 4 municipal corporation are spot=checked on a regular basis. 4 5 4. A municipal corporation that is responsible for 4 6 enforcing this chapter within its jurisdiction pursuant to an 4 7 agreement shall make an annual report to the director 4 8 providing the following information: 4 91.a. The total number of licenses granted or renewed by 4 10 the municipal corporation under this chapter during the year. 4 112.b. The number of licenses granted or renewed by the 4 12 municipal corporation under this chapter during the year in 4 13 each of the following categories: 4 14a.(1) Food establishments. 4 15b.(2) Food processing plants. 4 16c.(3) Mobile food units and pushcarts. 4 17d.(4) Temporary food establishments. 4 18e.(5) Vending machines. 4 193.c. The amount of money collected in license fees 4 20 during the year. 4 214.d. Other information the director requests. 4 22 5. The director shall monitor municipal corporations which 4 23 have entered into an agreement pursuant to this section to 4 24 determine if they are enforcing this chapter within their 4 25 respective jurisdictions. If the director determines that 4 26 this chapter is not enforced by a municipal corporation, the 4 27 director may rescind the agreement after reasonable notice and 4 28 an opportunity for a hearing. If the agreement is rescinded, 4 29 the director shall assume responsibility for enforcement in 4 30 the jurisdiction involved. 4 31 Sec. 6. Section 137F.3A, Code 2007, is amended to read as 4 32 follows: 4 33 137F.3A MUNICIPAL CORPORATION INSPECTIONS == CONTINGENT 4 34 APPROPRIATION. 4 35 1. If a municipal corporation operating pursuant to a 5 1 chapter 28E agreement with the department of inspections and 5 2 appeals to enforce this chapter and chapters 137C and 137D 5 3 either fails to renew the agreement effective after July 1, 5 4 2005,but before July 1, 2007,or discontinuesprior to July 5 5 1, 2007,enforcement activities in one or more jurisdictions 5 6 during the agreement time frame, or the department of 5 7 inspections and appeals cancels an agreementprior to July 1, 5 8 2007,due to noncompliance with the terms of the agreement, 5 9 the department of inspections and appeals may employ 5 10 additional full=time equivalent positionsfor the fiscal years 5 11 ending prior to July 1, 2007,to enforce the provisions of the 5 12 chapters, with the approval of the department of management. 5 13 Before approval is given, the director of the department of 5 14 management shall determine that the expenses exceed the funds 5 15 budgeted by the general assembly for food inspections to the 5 16 department of inspections and appeals. The department of 5 17 inspections and appeals may hire no more than one full=time 5 18 equivalent position for each six hundred inspections required 5 19 pursuant to this chapter and chapters 137C and 137D. 5 20 2. Notwithstanding chapter 137D, and sections 137C.9 and 5 21 137F.6, if the conditions described in this section are met, 5 22 fees imposed pursuant to that chapter and those sections shall 5 23 be retained by and are appropriated to the department of 5 24 inspections and appealsfor theeach fiscalyears ending prior 5 25 to July 1, 2007,year to provide for salaries, support, 5 26 maintenance, and miscellaneous purposes associated with the 5 27 additional inspections. 5 283. This section is repealed July 1, 2007.5 29 Sec. 7. Section 137F.6, Code 2007, is amended by adding 5 30 the following new subsections: 5 31 NEW SUBSECTION. 8. Upon transfer of ownership of an 5 32 existing food establishment or food processing plant subject 5 33 to a license fee under subsection 4, 5, or 6, the new owner 5 34 shall pay the last license fee amount paid by the previous 5 35 owner for the first year of licensure. In subsequent years, 6 1 the licensee shall pay the fee specified for the licensee's 6 2 annual gross sales. 6 3 NEW SUBSECTION. 9. A new applicant subject to a license 6 4 fee under subsection 4, 5, or 6, shall pay the license fee 6 5 based on projected gross sales under each of the applicable 6 6 subsections for the first year of licensure. In subsequent 6 7 years, the licensee shall pay the fee specified for the 6 8 licensee's annual gross sales. 6 9 NEW SUBSECTION. 10. For a food establishment or food 6 10 processing plant that is being remodeled or newly constructed 6 11 and that is subject to a license fee under subsection 4, 5, or 6 12 6, the applicant shall pay, in addition to any other fees 6 13 assessed under this chapter, a plan review fee of up to two 6 14 hundred fifty dollars, as determined by the regulatory 6 15 authority. 6 16 NEW SUBSECTION. 11. For a food establishment or food 6 17 processing plant that is being remodeled and that is subject 6 18 to a license fee under subsection 4, 5, or 6, the licensee 6 19 shall pay, in addition to any other fees assessed under this 6 20 chapter, a plan review fee of up to two hundred fifty dollars, 6 21 as determined by the regulatory authority. 6 22 NEW SUBSECTION. 12. If a routine inspection or a 6 23 complaint investigation of a food establishment or food 6 24 processing plant subject to a license fee under subsection 4, 6 25 5, or 6, reveals the presence of one or more critical 6 26 violations and requires one or more physical reinspections, a 6 27 reinspection fee equal to fifty dollars shall be assessed for 6 28 each reinspection. Failure to pay the reinspection fee shall 6 29 subject a food establishment or food processing plant to 6 30 suspension or revocation of the food establishment's or food 6 31 processing plant's license pursuant to section 137F.7 and to 6 32 the penalty provisions of section 137F.17. 6 33 Sec. 8. Section 331.756, subsection 32, Code 2007, is 6 34 amended to read as follows: 6 35 32. Assist the department of inspections and appeals in 7 1 the enforcement of theIowa food coderules setting minimum 7 2 standards to protect consumers from foodborne illness adopted 7 3 pursuant to section 137F.2 and the Iowa hotel sanitation code, 7 4 as provided in sections 137F.19 and 137C.30. 7 5 Sec. 9. FOOD CODE APPLICABILITY == TEMPORARY PROVISIONS. 7 6 Pending the adoption of rules pursuant to section 137F.2, as 7 7 amended by this Act, the 1997 edition of the United States 7 8 food and drug administration food code, with the amendments or 7 9 exceptions thereto in effect prior to the effective date of 7 10 this Act, shall continue in effect. 7 11 Sec. 10. EFFECTIVE DATE. This Act, being deemed of 7 12 immediate importance, takes effect upon enactment. 7 13 EXPLANATION 7 14 This bill makes changes regarding the licensing and 7 15 inspection of hotels, home food establishments, and food 7 16 establishments. 7 17 The bill provides for the deletion of a specific reference 7 18 to the adoption of the "food code" in Code section 137F.2, 7 19 statutory amendments or exceptions to the food code, providing 7 20 instead for the adoption of rules setting minimum standards to 7 21 protect consumers from foodborne illness. The bill provides 7 22 that the rules may incorporate by reference, with or without 7 23 amendment, the United States food and drug administration food 7 24 code, which if incorporated shall be specified by title and 7 25 edition, date of publication, or similar information, and that 7 26 the rules and standards shall be formulated in consultation 7 27 with municipal corporations under agreement with the 7 28 department, affected state agencies, and industry, 7 29 professional, and consumer groups. Conforming changes are 7 30 made to other Code provisions currently referencing the "food 7 31 code" as referred to in Code chapter 137F. The bill specifies 7 32 that until the rules are adopted, the 1997 edition of the 7 33 United States food and drug administration food code, with the 7 34 amendments or exceptions in effect prior to the effective date 7 35 of the bill, shall continue to apply. 8 1 The bill includes in the definition of a "food 8 2 establishment" in Code section 137F.1 a salvage or distressed 8 3 food operation. 8 4 Code section 137F.3A, enacted in 2006, is amended to 8 5 provide that the department of inspections and appeals may 8 6 retain fees imposed on hotels, home food establishments, and 8 7 on certain food establishments, each fiscal year and use the 8 8 fees retained for costs associated with having the department 8 9 conduct food inspections in jurisdictions where the applicable 8 10 municipal corporation fails to conduct the inspections on or 8 11 after July 1, 2005. Current law allows the department to 8 12 retain and use such fees between July 1, 2005, and July 1, 8 13 2007. The bill eliminates the future repeal of the provision 8 14 on July 1, 2007. 8 15 The bill provides for new categories of fees for 8 16 reinspection and plan review relating to food establishments 8 17 under Code chapter 137F. The bill provides that if a transfer 8 18 of ownership of a certain type of existing food establishment 8 19 or food processing plant licensed under Code section 137F.6 8 20 occurs, which would include a food establishment which 8 21 prepares or serves food for individual portion service 8 22 intended for consumption on=the=premises, a food establishment 8 23 which sells food or food products to consumer customers 8 24 intended for preparation or consumption off=the=premises, or a 8 25 food processing plant, the new owner shall pay the last 8 26 license fee for the first year of licensure, and in subsequent 8 27 years, the fee specified for their annual gross sales. 8 28 The bill additionally provides that an applicant for 8 29 certain new licenses under Code section 137F.6 shall pay the 8 30 license fee based on projected gross sales for the first year 8 31 of licensure and, in subsequent years, the fee specified for 8 32 their annual gross sales. 8 33 Further, for certain food establishments and food 8 34 processing plants to be licensed under Code section 137F.6 8 35 that are being newly constructed or remodeled, or for an 9 1 existing licensee undergoing remodeling, the bill provides 9 2 that the applicant or licensee shall pay, in addition to any 9 3 other fees assessed, a plan review fee of up to $250, as 9 4 determined by the regulatory authority. 9 5 Additionally, the bill provides that if a routine 9 6 inspection or a complaint investigation of certain food 9 7 establishments and food processing plants licensed under Code 9 8 section 137F.6 reveals the presence of one or more critical 9 9 violations and requires one or more physical reinspections, a 9 10 reinspection fee equal to $50 shall be assessed for each 9 11 reinspection. The bill specifies that failure to pay the 9 12 reinspection fee shall subject a licensee to suspension or 9 13 revocation of the license pursuant to Code section 137F.7, and 9 14 the penalty provisions of Code section 137F.17. 9 15 The bill takes effect upon enactment. 9 16 LSB 2412SS 82 9 17 nh:rj/je/5