H.F. 2444 DIVISION I 1 FARM-TO-TABLE EVENT 2 Section 1. Section 137F.1, Code 2026, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 6A. “Farm-to-table event” means an event 5 where food is stored, prepared, and served on a farm as defined 6 in section 673A.3, if all of the following apply: 7 a. The person operating the event holds a legal interest in 8 the farm. 9 b. The principal source of income annually generated from 10 the farm does not, during the previous licensing period if 11 applicable, derive from the operation of all events conducted 12 on the farm during that period. 13 c. Any meal served by the person or on behalf of the person 14 at the event complies with all of the following: 15 (1) Is prepared on the farm for on-premises consumption. 16 (2) Is served outside a building, unless otherwise provided 17 by rules adopted by the department pursuant to section 137F.22. 18 (3) Includes a food entree that has as a principal 19 ingredient, but not necessarily the main ingredient, a farm 20 commodity as defined in section 673A.3 that was produced on the 21 farm. 22 Sec. 2. Section 137F.1, subsection 9, Code 2026, is amended 23 by adding the following new paragraph: 24 NEW PARAGRAPH . p. A farm-to-table event. 25 Sec. 3. Section 137F.6, subsection 1, Code 2026, is amended 26 by adding the following new paragraph: 27 NEW PARAGRAPH . l. For a farm-to-table event as provided in 28 section 137F.22, regardless of the number of events conducted 29 on the farm for the period of the license, one hundred dollars. 30 Sec. 4. NEW SECTION . 137F.22 Farm-to-table event. 31 1. A person shall not operate a farm-to-table event until 32 the person is issued an annual license under this section. The 33 license shall cover all farm-to-table events conducted on the 34 farm. 35 -1- LSB 6675YH (5) 91 da/js 1/ 9

H.F. 2444 2. The department shall regulate, license, and inspect 1 a farm-to-table event. The department may enter into an 2 agreement with a municipal corporation to act as a regulatory 3 authority in the same manner as provided in sections 137F.3 and 4 137F.3A. 5 3. a. The department shall adopt rules pursuant to chapter 6 17A to administer and enforce the provisions of this section. 7 b. The rules described in paragraph “a” may provide for all 8 of the following: 9 (1) Food safety, including equipment, practices, and 10 parameters. 11 (2) Sanitary conditions, including facilities, practices, 12 and parameters. 13 (3) Fire control, including devices, practices, and 14 parameters. 15 c. The rules described in paragraph “a” may provide 16 for meals being served inside a building if unforeseen 17 circumstances would otherwise prevent the event from occurring. 18 4. A person who violates this section is subject to the same 19 penalty as provided in section 137F.9. 20 DIVISION II 21 COTTAGE FOOD 22 Sec. 5. NEW SECTION . 137F.21 Cottage food —— sale at a food 23 establishment —— requirements. 24 1. Cottage food is exempt from all licensing, permitting, 25 inspection, packaging, and labeling laws of the state if 26 the food is sold and delivered by the producer to a food 27 establishment and the food is intended for preparation or 28 consumption off premises. 29 2. The food establishment shall not intermingle 30 cottage food with food that is not cottage food. The food 31 establishment shall not store cottage food and other food on 32 the same shelf or as part of the same display. 33 3. The food establishment shall not sell cottage food unless 34 all of the following apply: 35 -2- LSB 6675YH (5) 91 da/js 2/ 9

H.F. 2444 a. Packaged cottage food must be affixed or labeled with the 1 information required under section 137F.20. 2 b. The food establishment must post a conspicuous notice 3 at the location where the cottage food is offered for sale or 4 sold. The notice shall state the following: 5 “COTTAGE FOOD 6 This product was produced at a residential property that is 7 exempt from state licensing and inspection. See the available 8 information provided on the packaged label or a fact sheet made 9 available at this store.” 10 c. The food establishment shall make available in a 11 prominent place at the location where the cottage food is 12 offered for sale or sold a fact sheet that includes the 13 information described in paragraph “a” . 14 4. Compliance with the cottage food exemption provided in 15 this section does not represent compliance with federal law. 16 DIVISION III 17 DISTRIBUTION OF RAW MILK AND ASSOCIATED PRODUCTS 18 Sec. 6. Section 137D.2A, Code 2026, is amended to read as 19 follows: 20 137D.2A Raw milk —— associated products. 21 1. A home food processing establishment shall not 22 market, advertise for sale, offer for sale, sell or otherwise 23 distribute, or use raw milk, or a manufactured raw milk product 24 or raw milk dairy product, as provided in chapter 195 . 25 2. Notwithstanding subsection 1, a home food processing 26 establishment may market, advertise for sale, offer for sale, 27 or sell or otherwise distribute raw milk, or a manufactured 28 raw milk product or a raw milk dairy product, if all of the 29 following apply: 30 a. The home food processing establishment is operating under 31 a license issued pursuant to section 137D.2. 32 b. The home food processing establishment is located on 33 the premises of a raw milk dairy farm where the raw milk is 34 produced and processed, or the raw milk product or raw milk 35 -3- LSB 6675YH (5) 91 da/js 3/ 9

H.F. 2444 dairy product is manufactured, as provided in chapter 195. 1 c. The raw milk producer operating the raw milk dairy farm 2 acts in compliance with the requirements in chapter 195. 3 d. The raw milk, or the raw milk product or raw milk dairy 4 product, meets the requirements of chapter 195, including 5 requirements for distribution as provided in section 195.8. 6 Sec. 7. Section 137F.8B, Code 2026, is amended to read as 7 follows: 8 137F.8B Raw milk —— associated products. 9 1. A food establishment or farmers market shall not 10 advertise for sale, offer for sale, sell or otherwise 11 distribute, or use raw milk, or a manufactured raw milk product 12 or a raw milk dairy product, regardless of whether the food 13 establishment or farmers market is regulated by the department 14 under this chapter or another chapter, another state agency, 15 or a municipality. 16 2. Notwithstanding subsection 1, a food establishment 17 that sells or otherwise distributes food for off-premises 18 consumption may market, advertise for sale, offer for sale, 19 or sell or otherwise distribute raw milk, or a manufactured 20 raw milk product or a raw milk dairy product, if all of the 21 following apply: 22 a. The food establishment is operating under a license 23 issued pursuant to section 137F.4. 24 b. The food establishment is located on the premises of 25 a raw milk dairy farm where the raw milk is produced and 26 processed, or the raw milk product or raw milk dairy product is 27 manufactured, as provided in chapter 195. 28 c. The raw milk producer operating the raw milk dairy farm 29 acts in compliance with the requirements in chapter 195. 30 d. The raw milk, or the raw milk product or raw milk dairy 31 product, meets the requirements of chapter 195, including 32 requirements for distribution as provided in section 195.8. 33 Sec. 8. Section 195.8, subsection 1, paragraph c, Code 2026, 34 is amended to read as follows: 35 -4- LSB 6675YH (5) 91 da/js 4/ 9

H.F. 2444 c. (1) The raw milk producer shall distribute the raw 1 milk directly to the individual at the raw milk dairy or to a 2 location specified by the individual. However, 3 (2) (a) Except as provided in subparagraph division (b), 4 a person shall not deliver the raw milk to a place of business 5 where food or food items are distributed on a retail basis, 6 including but not limited to a farmers market regulated under 7 chapter 137F. 8 (b) A person may deliver the raw milk to a licensed home 9 food processing establishment regulated under chapter 137D as 10 provided in section 137D.2A or to a licensed food establishment 11 or farmers market regulated under chapter 137F as provided in 12 section 137F.8B . 13 (3) The raw milk shall only be used for consumption by the 14 individual, members of the individual’s household, and the 15 individual’s nonpaying guests or nonpaying employees. 16 Sec. 9. Section 195.8, subsection 2, paragraph c, Code 2026, 17 is amended to read as follows: 18 c. (1) The raw milk producer shall distribute the raw milk 19 product or raw milk dairy product directly to the individual 20 at the raw milk dairy or to a location specified by the 21 individual. However, 22 (2) (a) Except as provided in subparagraph division (b), a 23 person shall not deliver the raw milk product or raw milk dairy 24 product to a place of business where food or a food item is 25 distributed on a retail basis, including but not limited to a 26 farmers market regulated under chapter 137F. 27 (b) A person may deliver the raw milk product or a raw milk 28 dairy product to a licensed home food processing establishment 29 regulated under chapter 137D as provided in section 137D.2A or 30 to a licensed food establishment or farmers market regulated 31 under chapter 137F as provided in section 137F.8B . 32 (3) The raw milk product or raw milk dairy product shall 33 only be used for consumption by the individual, members of the 34 individual’s household, or the individual’s nonpaying guests 35 -5- LSB 6675YH (5) 91 da/js 5/ 9

H.F. 2444 or nonpaying employees. 1 DIVISION IV 2 RULEMAKING AND EFFECTIVE DATE 3 Sec. 10. EMERGENCY RULES. The department of inspections, 4 appeals, and licensing shall adopt emergency rules under 5 section 17A.4, subsection 3, and section 17A.5, subsection 2, 6 paragraph “b”, to implement the provisions of this Act within 7 one hundred eighty days of the effective date of this Act and 8 shall submit such rules to the administrative rules coordinator 9 and the administrative code editor pursuant to section 17A.5, 10 subsection 1, within the same period. The rules shall be 11 effective immediately upon filing unless a later date is 12 specified in the rules. Any rules adopted in accordance with 13 this section shall also be published as a notice of intended 14 action as provided in section 17A.4. 15 Sec. 11. EFFECTIVE DATE. This Act, being deemed of 16 immediate importance, takes effect upon enactment. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 HOME FOOD ESTABLISHMENTS —— BACKGROUND. Under Code chapter 21 137F, the department of inspections, appeals, and licensing 22 (DIAL) regulates food establishments that provide food for sale 23 on a retail basis, including grocery stores and restaurants 24 (see Code section 137F.3). A food establishment may also 25 be regulated by a political subdivision (referred to as a 26 municipal corporation) under contract with DIAL. Generally, 27 a food establishment is subject to certain administrative 28 requirements, including licensing and the payment of an 29 associated licensing fee (Code sections 137F.5, 137F.7, and 30 137F.6), and inspections (Code sections 137F.9, 137F.10, 31 137F.11, and 137F.11A). A food establishment must comply with 32 a number of requirements that apply to indoor facilities, 33 including those relating to plumbing (Code section 137F.12), 34 water and waste treatment (Code section 137F.13), toilets 35 -6- LSB 6675YH (5) 91 da/js 6/ 9

H.F. 2444 and lavatories (Code section 137F.14), and fire safety (Code 1 section 137F.15). A person who does not operate with a valid 2 license is subject to a civil penalty of up to twice the amount 3 of the annual license fee (Code section 137F.9). A food 4 establishment operating in violation of the Code chapter may be 5 enjoined from further operation (Code section 137F.18). 6 HOME FOOD PROCESSING ESTABLISHMENTS —— BACKGROUND. Under 7 Code chapter 137D, a home food processing establishment 8 is a business operating on the premises of a residence in 9 which homemade food items are produced for sale or resale, 10 for consumption off premises, if the business has gross 11 annual sales of less than $50,000. The home food processing 12 establishment is required to be licensed and inspected by DIAL 13 (Code section 137D.2). A home food processing establishment is 14 subject to regulations governing time/temperature control for 15 safety food. A person who violates the Code chapter is subject 16 to a civil penalty of $100 per violation (Code section 137D.3). 17 A home food processing establishment operating in violation of 18 the Code chapter may be enjoined from further operation (Code 19 section 137D.4). 20 FARM-TO-TABLE EVENTS —— BILL’S PROVISIONS. This bill amends 21 Code chapter 137F by providing for a new farm-to-table event 22 license that is separate from a food establishment license. A 23 farm-to-table event is an event where food is stored, prepared, 24 and served on a farm, subject to certain conditions: (1) the 25 person operating the event must hold a legal interest in the 26 farm, (2) the principal source of income annually generated 27 from the farm cannot derive from the events, (3) any meal 28 prepared on the farm must be for on-premises consumption, (4) 29 the meal must be served outside a building, unless otherwise 30 provided by rules adopted by DIAL, and (5) the meal must 31 include a food entree that includes as a principal ingredient 32 a farm commodity that was produced on the farm. The license 33 is for a period of one year and the license fee is $100, which 34 covers any number of events conducted on the farm. DIAL is 35 -7- LSB 6675YH (5) 91 da/js 7/ 9

H.F. 2444 required to adopt rules as necessary to administer and enforce 1 these provisions, which may provide for (1) food safety, (2) 2 sanitary facilities, (3) fire control, and (4) the possibility 3 of moving an event inside due to unforeseen circumstances. A 4 person who violates new Code section 137F.22 is subject to the 5 same penalty as provided in Code section 137F.9. 6 COTTAGE FOODS —— BACKGROUND. A cottage food is a food 7 produced at a private residence that is not a time/temperature 8 control for safety food. A cottage food is exempt from all 9 licensing, permitting, inspection, packaging, and labeling laws 10 of the state if the food is sold and delivered by the producer 11 directly to the consumer or delivered by mail or by an agent of 12 the producer. Cottage food sold in such manner must be affixed 13 or labeled with information to identify the name and contact 14 information of the person preparing the food, the common name 15 of the food, the ingredients, a disclaimer, and, if the food is 16 home-processed and home-canned pickles, vegetables, or fruits, 17 the date that the food was processed and canned. 18 COTTAGE FOODS —— BILL’S PROVISIONS. The bill provides 19 that a cottage food may be sold to a food establishment 20 commonly referred to as a grocery store (selling a food sold 21 for intended preparation or consumption off premises). The 22 food establishment cannot intermingle cottage food with other 23 food. The food establishment cannot store cottage food and 24 other food on the same shelf or as part of the same display. 25 Packaged cottage food must be affixed or labeled with the same 26 information required to be affixed or labeled with cottage 27 food that is delivered directly to consumers. The food 28 establishment must post a notice advertising that the food is 29 cottage food and make available a fact sheet with the same 30 information required to be affixed or labeled to a packaged 31 cottage food. 32 DISTRIBUTION OF RAW MILK AND ASSOCIATED PRODUCTS —— 33 BACKGROUND. Under Code chapter 195, a milk producer may 34 elect to produce, process, market, or distribute raw milk, 35 -8- LSB 6675YH (5) 91 da/js 8/ 9

H.F. 2444 or to use the raw milk to manufacture, market, or distribute 1 a raw milk product or raw milk dairy product. In order to 2 make this election, the raw milk producer must comply with a 3 number of requirements relating to the health of the dairy herd 4 and the distribution of the raw milk or associated products, 5 including labeling requirements (Code sections 195.8 and 6 195.9). Generally, raw milk or its associated products must be 7 distributed directly to an individual customer at the raw milk 8 dairy or to a location specified by the customer. However, a 9 person cannot deliver the raw milk or associated product to 10 a place of business where food or food items are distributed 11 on a retail basis, including but not limited to a home food 12 processing establishment, food establishment, or farmers 13 market. 14 DISTRIBUTION OF RAW MILK AND ASSOCIATED PRODUCTS —— BILL’S 15 PROVISIONS. The bill provides that a home food processing 16 establishment or a food establishment operating under a 17 valid license to sell or otherwise distribute food for 18 off-premises consumption may also sell raw milk or associated 19 products if (1) the home food processing establishment or food 20 establishment is located on the raw dairy farm, (2) the raw 21 milk producer is acting in compliance with Code chapter 195, 22 and (3) the raw milk is produced and any associated products 23 are manufactured on the raw milk dairy farm in compliance with 24 that Code chapter. 25 EMERGENCY RULES. DIAL must adopt rules to implement the bill 26 on an emergency basis, which rules are to take effect within 27 180 days of the effective date of the bill. 28 EFFECTIVE DATE. The bill takes effect upon enactment. 29 -9- LSB 6675YH (5) 91 da/js 9/ 9