House File 567 - Introduced HOUSE FILE 567 BY JACOBY A BILL FOR An Act relating to the slaughter and processing of livestock 1 produced on a farm and the preparation and offer for sale 2 or sale of meat derived from the livestock, including by 3 providing for exemptions from certain regulations, and 4 providing penalties. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1905YH (2) 89 da/ns

H.F. 567 DIVISION I 1 FARM HOMEMADE FOOD 2 Section 1. NEW SECTION . 137G.1 Definitions. 3 As used in this chapter, unless the context otherwise 4 requires: 5 1. “Consumer” means a person who is the final purchaser of 6 food. 7 2. “Farm” means a location that operates to generate income 8 from the production of commodities, if the income is reported 9 on a schedule F as part of a form 1040 or form 1041 tax return 10 filed with the United States internal revenue service. 11 3. “Food” means the same as defined in section 137F.1. 12 4. “Livestock” means an animal belonging to the bovine, 13 caprine, ovine, or porcine species; ostriches, rheas, or emus; 14 and farm deer as defined in section 170.1. 15 5. “Producer” means a person engaged in the business of 16 keeping and providing for the care and feeding of livestock on 17 a farm owned or leased by the person. 18 6. “Sale” means any transfer, exchange, or barter, 19 conditional or otherwise, in any manner or by any means 20 whatsoever, for consideration, including but not limited to any 21 such transfer, exchange, or barter on a subscription basis. 22 Sec. 2. NEW SECTION . 137G.2 Administration. 23 This chapter shall be administered by the department of 24 inspections and appeals. The department of inspections and 25 appeals in cooperation with the department of agriculture and 26 land stewardship shall adopt rules necessary to administer this 27 chapter. 28 Sec. 3. NEW SECTION . 137G.3 Intrastate commerce. 29 This chapter applies only to livestock produced on a farm 30 owned or leased by a producer in this state, if the livestock 31 is slaughtered and processed on the farm, the meat derived from 32 the slaughter and processed livestock is prepared and offered 33 for sale or sold on the farm, and the meat is consumed in this 34 state. 35 -1- LSB 1905YH (2) 89 da/ns 1/ 6

H.F. 567 Sec. 4. NEW SECTION . 137G.4 Exemption from regulation. 1 1. A producer who slaughters and processes livestock 2 produced on a farm owned or leased by that producer and where 3 the meat derived from the livestock is prepared and offered for 4 sale or sold under this chapter is exempt from regulation by 5 a state agency or local government exercising authority under 6 chapter 137F, 189, or 189A. 7 2. a. The exemption described in subsection 1 shall 8 only apply to an offer for sale or sale of meat pursuant to a 9 commodity share agreement as provided in section 137G.5. 10 b. The exemption described in subsection 1 applies to any 11 requirement relating to licensure, certification, permitting, 12 testing, inspection, packaging, and labeling of food otherwise 13 required by those chapters. 14 3. This chapter does not apply to any of the following: 15 a. A state agency or local government when exercising powers 16 or performing duties as provided by law other than those powers 17 or duties expressly exempted from regulation as provided in 18 subsection 1. 19 b. A producer during the period that the producer is not 20 acting according to requirements necessary to comply with the 21 exemption under this chapter. 22 4. This chapter does not preclude the department of 23 inspections and appeals or the department of agriculture and 24 land stewardship from providing a producer with assistance 25 necessary to comply with the requirements of this chapter. 26 A department may consult with a producer or provide for an 27 unenforceable inspection of the producer’s farm where meat 28 is prepared or offered for sale or sold. This chapter does 29 not preclude a state agency from providing a consumer with 30 unbiased information regarding compliance with this chapter by 31 a producer. 32 5. This chapter does not restrict a person from offering to 33 sell food or selling food in conformance with another provision 34 of law, including but not limited to an exemption granted to 35 -2- LSB 1905YH (2) 89 da/ns 2/ 6

H.F. 567 the person under another provision of law. 1 Sec. 5. NEW SECTION . 137G.5 Sale of meat by producers —— 2 commodity share agreement. 3 1. A producer shall not offer for sale or sell meat 4 derived from livestock produced on a farm owned or leased by a 5 producer, unless the producer complies with the requirements 6 of 21 U.S.C. §623. 7 2. In complying with subsection 1, the producer must 8 enter into a commodity share agreement with a consumer. 9 The agreement shall include all of the following terms and 10 conditions: 11 a. The consumer owns the livestock to be slaughtered and 12 processed for meat. The form of ownership may be any of the 13 following: 14 (1) An undivided or divided interest in the livestock. 15 (2) A share in a herd of livestock. In that case, 16 the agreement shall specify the process of selecting the 17 consumer-owned livestock to be slaughtered. 18 b. The commodity share agreement shall be entered into by 19 the producer and consumer prior to the slaughter and processing 20 of the livestock owned by the consumer. 21 c. The consumer is provided a bill of sale for the 22 consumer-owned livestock. 23 d. The producer provides for the consumer-owned livestock 24 care and feeding under a boarding arrangement. 25 e. The producer provides for the slaughter and processing 26 of the livestock and for preparing the meat derived from the 27 livestock. 28 f. The producer delivers meat derived from the slaughtered 29 and processed livestock to the consumer at the producer’s farm 30 where the livestock was produced. 31 g. The consumer does not transfer meat derived from the 32 slaughtered and processed livestock to a person other than to a 33 family member or nonpaying guest of the consumer. 34 3. A term or condition described in subsection 2 is not 35 -3- LSB 1905YH (2) 89 da/ns 3/ 6

H.F. 567 waivable and a contract in violation of that subsection is void 1 and unenforceable in any action brought under this chapter 2 seeking a legal remedy. 3 4. The agreement must have the following notice in at least 4 ten point bold type which shall state: 5 NOTICE TO CONSUMERS 6 Under Iowa Code chapter 137G, this agreement includes the 7 terms and conditions of a sale in which you consent to the 8 purchase of meat derived from livestock that has been produced, 9 slaughtered, and processed on this farm. The meat is not 10 subject to federal or state inspection or other public health 11 regulations that require the sale of wholesome food. 12 Sec. 6. NEW SECTION . 137G.6 Civil penalties. 13 A person who violates a provision of this chapter is subject 14 to a civil penalty of not less than five hundred dollars 15 and not more than two thousand five hundred dollars. The 16 department shall impose, assess, and collect the civil penalty. 17 Each day that a continuing violation occurs may be considered a 18 separate offense. The civil penalties shall be deposited in 19 the general fund of the state. 20 DIVISION II 21 RELATED CHANGES 22 Sec. 7. NEW SECTION . 137F.20 Exception. 23 This chapter does not apply to the slaughter or processing 24 of livestock, or the processing, manufacturing, packaging, 25 labeling, or storing of meat derived from livestock, to the 26 extent allowed under chapter 137G. 27 Sec. 8. NEW SECTION . 189.32 Exception. 28 This chapter does not apply to the slaughter or processing 29 of livestock, or the processing, manufacturing, packaging, 30 labeling, or storing of meat derived from livestock, to the 31 extent allowed under chapter 137G. 32 Sec. 9. NEW SECTION . 189A.23 Exception. 33 This chapter does not apply to the slaughter or processing 34 of livestock, or the processing, manufacturing, packaging, 35 -4- LSB 1905YH (2) 89 da/ns 4/ 6

H.F. 567 labeling, or storing of meat derived from livestock, to the 1 extent allowed under chapter 137G. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 GENERAL. This bill provides that a person who produces 6 livestock on a farm owned or leased by the person (producer) is 7 exempt from regulation by a state agency or local government 8 exercising authority over the slaughter and processing of 9 livestock produced on the farm and the preparation and offer 10 for sale or sale of meat derived from the livestock, if the 11 preparation, offer for sale, and sale occurred on the farm. 12 The regulations from which a provider is exempted provide 13 requirements for licensure, certification, permitting, testing, 14 inspection, packaging, and labeling. These include Code 15 chapters administered by the department of inspections and 16 appeals regulating food establishments and food processing 17 plants (Code chapter 137F). It also includes Code chapters 18 administered by the department of agriculture and land 19 stewardship, including general provisions (Code chapter 189), 20 and the inspection of slaughter and processing facilities (Code 21 chapter 189A). The department of inspections and appeals 22 acting in cooperation with the department of agriculture and 23 land stewardship is responsible for administering the bill’s 24 provisions. The bill does not apply to transactions involving 25 interstate commerce. 26 In order to offer for sale or sell meat derived from 27 slaughtered and processed livestock under the bill, the 28 livestock must be subject to a commodity share agreement 29 entered into between the producer and a consumer. Such an 30 agreement recognizes the consumer’s ownership interest in the 31 livestock or a herd, and the duty of the producer to care for, 32 slaughter, and process the livestock and prepare meat derived 33 from the livestock for on-farm delivery to the consumer-owner. 34 A person who violates a provision of the bill authorizing a 35 -5- LSB 1905YH (2) 89 da/ns 5/ 6

H.F. 567 producer to slaughter and process livestock, and prepare meat 1 derived from the livestock for sale to consumers, is subject to 2 a civil penalty of not less than $500 and not more than $2,500. 3 -6- LSB 1905YH (2) 89 da/ns 6/ 6