H.F. 2394 Section 1. Section 137D.1, Code 2022, is amended to read as 1 follows: 2 137D.1 Definitions. 3 As used in this chapter , unless the context otherwise 4 requires: 5 1. “Food” means any raw, cooked, or processed edible 6 substance, ice, beverage, or ingredient used or intended for 7 use or sale in whole or in part for human consumption. 8 2. “Department” means the department of inspections and 9 appeals. 10 1. “Department” means the department of inspections and 11 appeals. 12 2. “Food” means any raw, cooked, or processed edible 13 substance, ice, beverage, or ingredient used or intended for 14 use or sale in whole or in part for human consumption. 15 3. “Home bakery food establishment ” means a business on 16 the premises of a residence in which prepared time/temperature 17 control for safety food is created items are produced for 18 sale or resale, for consumption off the premises, if the 19 business has gross annual sales of prepared food of less 20 than thirty-five fifty thousand dollars for time/temperature 21 control for safety food items . However, “home bakery food 22 establishment ” does not include a residence in which food is 23 prepared to be used or sold by churches, fraternal societies, 24 charitable organizations, or civic organizations. 25 4. “Prepared food” means soft pies, bakery products 26 with a custard or cream filling, or baked goods that are a 27 time/temperature control for safety food. “Prepared food” does 28 not include baked goods that are not a time/temperature control 29 for safety food, including but not limited to breads, fruit 30 pies, cakes, or other pastries that are not a time/temperature 31 control for safety food. “Homemade food item” means a food 32 item, including a nonalcoholic beverage, which is produced and, 33 if packaged, packaged at a home food establishment. 34 5. “Produce” means to prepare a food item by cooking, 35 -1- LSB 5607YH (1) 89 es/rn 1/ 6

H.F. 2394 baking, drying, mixing, cutting, fermenting, preserving, 1 dehydrating, growing, raising, or other process. 2 5. 6. “Time/temperature control for safety food” means a 3 food that requires time and temperature controls for safety to 4 limit pathogenic microorganism growth or toxin formation. 5 Sec. 2. Section 137D.2, Code 2022, is amended to read as 6 follows: 7 137D.2 Licenses and inspections. 8 1. A person shall not open or operate a home bakery 9 food establishment until a license has been obtained from 10 the department of inspections and appeals. The department 11 shall collect a fee of fifty dollars for a license. After 12 collection, the fees shall be deposited in the general fund of 13 the state. A license shall expire one year from date of issue. 14 A license is renewable. 15 2. A person shall not sell or distribute from a home bakery 16 food establishment if the home bakery food establishment is 17 unlicensed, the license of the home bakery food establishment 18 is suspended, or the food fails to meet standards adopted for 19 such food by the department. 20 3. An application for a license under this chapter shall be 21 made upon a form furnished by the department and shall contain 22 the items required by it according to rules adopted by the 23 department. 24 4. The department shall regulate, license, and inspect home 25 bakeries food establishments according to standards adopted by 26 rule. 27 5. The department shall provide for the periodic inspection 28 of a home bakery food establishment . The inspector may enter 29 the home bakery food establishment at any reasonable hour to 30 make the inspection. The department shall inspect only those 31 areas related to preparing food for sale. 32 6. The department shall regulate and inspect food prepared 33 at a home bakery food establishment according to standards 34 adopted by rule that are consistent with this chapter . The 35 -2- LSB 5607YH (1) 89 es/rn 2/ 6

H.F. 2394 inspection may occur at any place where the prepared food is 1 created, transported, or stored for sale or resale. 2 7. A home food establishment shall affix or label a homemade 3 food item with the following information: 4 a. Information to identify the name and address of the home 5 food establishment. 6 b. The common name of the food. 7 c. The ingredients of the homemade food item in descending 8 order of predominance. 9 d. The following statement: “This product was produced at a 10 home food establishment. This product may contain allergens.” 11 Sec. 3. Section 137D.3, Code 2022, is amended to read as 12 follows: 13 137D.3 Penalty. 14 A person who violates a provision of this chapter , including 15 a standard adopted by departmental rule, relating to home 16 bakeries food establishments or prepared foods created homemade 17 food items produced in a home bakery, is guilty of a simple 18 misdemeanor food establishment shall be subject to a civil 19 penalty in the amount of one hundred dollars per violation . 20 Each day that the violation continues constitutes a separate 21 offense violation . 22 Sec. 4. Section 137D.4, Code 2022, is amended to read as 23 follows: 24 137D.4 Injunction. 25 A person operating a home bakery food establishment 26 or selling prepared foods created at a home bakery food 27 establishment in violation of a provision of this chapter 28 may be restrained by injunction from further operating 29 that home bakery food establishment . If an imminent health 30 hazard exists, the home bakery food establishment must cease 31 operation. Operation shall not be resumed until authorized by 32 the department. 33 Sec. 5. Section 137D.8, Code 2022, is amended to read as 34 follows: 35 -3- LSB 5607YH (1) 89 es/rn 3/ 6

H.F. 2394 137D.8 Suspension or revocation of licenses. 1 The department may suspend or revoke a license issued to a 2 person under this chapter if any of the following occurs: 3 1. The person’s home bakery food establishment does not 4 conform to a provision of this chapter or a rule adopted 5 pursuant to this chapter . 6 2. The person violates a provision of this chapter or a rule 7 adopted pursuant to this chapter . 8 3. The person conducts an activity constituting a criminal 9 offense in the home bakery food establishment and is convicted 10 of a serious misdemeanor or a more serious offense as a result. 11 Sec. 6. Section 137F.1, Code 2022, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 2A. “Cottage food” means the production 14 and sale of food produced at a private residence other than 15 time/temperature control for safety food as provided in section 16 137F.20. 17 Sec. 7. Section 137F.1, subsection 8, paragraphs d, e, and 18 f, Code 2022, are amended to read as follows: 19 d. Premises which are a home bakery pursuant to food 20 establishment as defined in chapter 137D . 21 e. Premises where a person operates a farmers market , if 22 time/temperature control for safety foods are not sold or 23 distributed from the premises . 24 f. Premises of a residence in which cottage food that is not 25 a time/temperature control for safety food is prepared and sold 26 for consumption off the premises to a consumer customer, if the 27 food is labeled to identify the name and address of the person 28 preparing the food , and the common name of the food. 29 Sec. 8. Section 137F.1, subsection 8, paragraph g, Code 30 2022, is amended by striking the paragraph. 31 Sec. 9. NEW SECTION . 137F.20 Cottage food —— requirements. 32 Cottage food is exempt from all licensing, permitting, 33 inspection, packaging, and labeling laws of the state if the 34 food is sold and delivered by the producer directly to the 35 -4- LSB 5607YH (1) 89 es/rn 4/ 6

H.F. 2394 consumer, or delivered by mail or an agent of the producer. A 1 producer may sell food to the consumer in person, remotely, by 2 telephone, by internet, by an agent of the producer, or by a 3 third-party vendor to the consumer. 4 1. The food shall be affixed or labeled with the following 5 information: 6 a. Information to identify the name and address of the home 7 food establishment. 8 b. The common name of the food. 9 c. The ingredients of the homemade food item in descending 10 order of predominance. 11 d. The following statement: “This product was produced at a 12 home food establishment. This product may contain allergens.” 13 2. In addition to the transactions permitted under this 14 section, cottage food producers may sell food made in a 15 private residence to the maximum extent permitted by federal 16 law. Nothing in this section shall be construed to be more 17 restrictive than applicable federal requirements. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill relates to the sale and production of food produced 22 by private residences. 23 The bill modifies the definition of “home bakery” to “home 24 food establishment” and makes conforming amendments. The bill 25 defines “homemade food item” to mean a food that is produced 26 and, if packaged, packaged at a home food establishment. The 27 bill defines “produce” to mean food prepared by cooking, 28 baking, drying, mixing, cutting, fermenting, preserving, 29 dehydrating, growing, raising, or other food methods. 30 The bill provides that a violation of the bill’s provisions 31 may result in a $100 fine. The bill provides that a home food 32 establishment shall label homemade food items with information 33 including the name of the food producer, the name of the food, 34 the ingredients, and a disclaimer. Current law provides that a 35 -5- LSB 5607YH (1) 89 es/rn 5/ 6

H.F. 2394 home bakery is guilty of a simple misdemeanor for violations of 1 Code chapter 137D. 2 The bill defines “cottage food” to mean the production and 3 sale of food produced at a private residence that is not a 4 time/temperature control for safety food. The bill provides 5 that cottage food is exempt from all licensing, permitting, 6 inspection, packaging, and labeling upon certain conditions 7 being met. The conditions include the manner of sale between a 8 food producer and consumer, a requirement of labeling regarding 9 the name and address of the producer, the name of the food, the 10 ingredients, and a disclaimer. 11 Current law does not include a kitchen in a private home 12 where food is prepared or stored for family consumption or a 13 kitchen in a bed and breakfast home in the definition of “food 14 establishment” for purposes of Code chapter 137F. The bill 15 strikes this exclusion. 16 -6- LSB 5607YH (1) 89 es/rn 6/ 6