HF 2444 (LSB 6675YH (5) 91)

HOUSE FILE 2444

BY  INGELS

A BILL FOR

An Act  providing for the sale and distribution of certain food, making penalties applicable, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
FARM-TO-TABLE EVENT

    Section 1.  Section 137F.1, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  6A.  “Farm-to-table event” means an event where food is stored, prepared, and served on a farm as defined in section 673A.3, if all of the following apply:
   a.  The person operating the event holds a legal interest in the farm.
   b.  The principal source of income annually generated from the farm does not, during the previous licensing period if applicable, derive from the operation of all events conducted on the farm during that period.
   c.  Any meal served by the person or on behalf of the person at the event complies with all of the following:
   (1)  Is prepared on the farm for on-premises consumption.
   (2)  Is served outside a building, unless otherwise provided by rules adopted by the department pursuant to section 137F.22.
   (3)  Includes a food entree that has as a principal ingredient, but not necessarily the main ingredient, a farm commodity as defined in section 673A.3 that was produced on the farm.
    Sec. 2.  Section 137F.1, subsection 9, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  p.  A farm-to-table event.
    Sec. 3.  Section 137F.6, subsection 1, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  l.  For a farm-to-table event as provided in section 137F.22, regardless of the number of events conducted on the farm for the period of the license, one hundred dollars.
    Sec. 4.  NEW SECTION.  137F.22  Farm-to-table event.
   1.  A person shall not operate a farm-to-table event until the person is issued an annual license under this section. The license shall cover all farm-to-table events conducted on the farm.
   2.  The department shall regulate, license, and inspect a farm-to-table event. The department may enter into an agreement with a municipal corporation to act as a regulatory authority in the same manner as provided in sections 137F.3 and 137F.3A.
   3.  a.  The department shall adopt rules pursuant to chapter 17A to administer and enforce the provisions of this section.
   b.  The rules described in paragraph “a” may provide for all of the following:
   (1)  Food safety, including equipment, practices, and parameters.
   (2)  Sanitary conditions, including facilities, practices, and parameters.
   (3)  Fire control, including devices, practices, and parameters.
   c.  The rules described in paragraph “a” may provide for meals being served inside a building if unforeseen circumstances would otherwise prevent the event from occurring.
   4.  A person who violates this section is subject to the same penalty as provided in section 137F.9.
DIVISION II
COTTAGE FOOD

    Sec. 5.  NEW SECTION.  137F.21  Cottage food —— sale at a food establishment —— requirements.
   1.  Cottage food is exempt from all licensing, permitting, inspection, packaging, and labeling laws of the state if the food is sold and delivered by the producer to a food establishment and the food is intended for preparation or consumption off premises.
   2.  The food establishment shall not intermingle cottage food with food that is not cottage food. The food establishment shall not store cottage food and other food on the same shelf or as part of the same display.
   3.  The food establishment shall not sell cottage food unless all of the following apply:
   a.  Packaged cottage food must be affixed or labeled with the information required under section 137F.20.
   b.  The food establishment must post a conspicuous notice at the location where the cottage food is offered for sale or sold. The notice shall state the following:
“COTTAGE FOOD
   This product was produced at a residential property that is exempt from state licensing and inspection. See the available information provided on the packaged label or a fact sheet made available at this store.”

   c.  The food establishment shall make available in a prominent place at the location where the cottage food is offered for sale or sold a fact sheet that includes the information described in paragraph “a”.
   4.  Compliance with the cottage food exemption provided in this section does not represent compliance with federal law.
DIVISION III
DISTRIBUTION OF RAW MILK AND ASSOCIATED PRODUCTS

    Sec. 6.  Section 137D.2A, Code 2026, is amended to read as follows:
   137D.2A  Raw milk —— associated products.
   1.  A home food processing establishment shall not market, advertise for sale, offer for sale, sell or otherwise distribute, or use raw milk, or a manufactured raw milk product or raw milk dairy product, as provided in chapter 195.
   2.  Notwithstanding subsection 1, a home food processing establishment may market, advertise for sale, offer for sale, or sell or otherwise distribute raw milk, or a manufactured raw milk product or a raw milk dairy product, if all of the following apply:
   a.  The home food processing establishment is operating under a license issued pursuant to section 137D.2.
   b.  The home food processing establishment is located on the premises of a raw milk dairy farm where the raw milk is produced and processed, or the raw milk product or raw milk dairy product is manufactured, as provided in chapter 195.
   c.  The raw milk producer operating the raw milk dairy farm acts in compliance with the requirements in chapter 195.
   d.  The raw milk, or the raw milk product or raw milk dairy product, meets the requirements of chapter 195, including requirements for distribution as provided in section 195.8.
    Sec. 7.  Section 137F.8B, Code 2026, is amended to read as follows:
   137F.8B  Raw milk —— associated products.
   1.  A food establishment or farmers market shall not advertise for sale, offer for sale, sell or otherwise distribute, or use raw milk, or a manufactured raw milk product or a raw milk dairy product, regardless of whether the food establishment or farmers market is regulated by the department under this chapter or another chapter, another state agency, or a municipality.
   2.  Notwithstanding subsection 1, a food establishment that sells or otherwise distributes food for off-premises consumption may market, advertise for sale, offer for sale, or sell or otherwise distribute raw milk, or a manufactured raw milk product or a raw milk dairy product, if all of the following apply:
   a.  The food establishment is operating under a license issued pursuant to section 137F.4.
   b.  The food establishment is located on the premises of a raw milk dairy farm where the raw milk is produced and processed, or the raw milk product or raw milk dairy product is manufactured, as provided in chapter 195.
   c.  The raw milk producer operating the raw milk dairy farm acts in compliance with the requirements in chapter 195.
   d.  The raw milk, or the raw milk product or raw milk dairy product, meets the requirements of chapter 195, including requirements for distribution as provided in section 195.8.
    Sec. 8.  Section 195.8, subsection 1, paragraph c, Code 2026, is amended to read as follows:
   c.  (1)  The raw milk producer shall distribute the raw milk directly to the individual at the raw milk dairy or to a location specified by the individual. However,
   (2)  (a)  Except as provided in subparagraph division (b), a person shall not deliver the raw milk to a place of business where food or food items are distributed on a retail basis, including but not limited to a farmers market regulated under chapter 137F.
   (b)  A person may deliver the raw milk to a licensed home food processing establishment regulated under chapter 137D as provided in section 137D.2A or to a licensed food establishment or farmers market regulated under chapter 137F as provided in section 137F.8B.
   (3)  The raw milk shall only be used for consumption by the individual, members of the individual’s household, and the individual’s nonpaying guests or nonpaying employees.
    Sec. 9.  Section 195.8, subsection 2, paragraph c, Code 2026, is amended to read as follows:
   c.  (1)  The raw milk producer shall distribute the raw milk product or raw milk dairy product directly to the individual at the raw milk dairy or to a location specified by the individual. However,
   (2)  (a)  Except as provided in subparagraph division (b), a person shall not deliver the raw milk product or raw milk dairy product to a place of business where food or a food item is distributed on a retail basis, including but not limited to a farmers market regulated under chapter 137F.
   (b)  A person may deliver the raw milk product or a raw milk dairy product to a licensed home food processing establishment regulated under chapter 137D as provided in section 137D.2A or to a licensed food establishment or farmers market regulated under chapter 137F as provided in section 137F.8B.
   (3)  The raw milk product or raw milk dairy product shall only be used for consumption by the individual, members of the individual’s household, or the individual’s nonpaying guests or nonpaying employees.
DIVISION IV
RULEMAKING AND EFFECTIVE DATE

    Sec. 10.  EMERGENCY RULES.  The department of inspections, appeals, and licensing shall adopt emergency rules under section 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph “b”, to implement the provisions of this Act within one hundred eighty days of the effective date of this Act and shall submit such rules to the administrative rules coordinator and the administrative code editor pursuant to section 17A.5, subsection 1, within the same period. The rules shall be effective immediately upon filing unless a later date is specified in the rules. Any rules adopted in accordance with this section shall also be published as a notice of intended action as provided in section 17A.4.
    Sec. 11.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   HOME FOOD ESTABLISHMENTS —— BACKGROUND. Under Code chapter 137F, the department of inspections, appeals, and licensing (DIAL) regulates food establishments that provide food for sale on a retail basis, including grocery stores and restaurants (see Code section 137F.3). A food establishment may also be regulated by a political subdivision (referred to as a municipal corporation) under contract with DIAL. Generally, a food establishment is subject to certain administrative requirements, including licensing and the payment of an associated licensing fee (Code sections 137F.5, 137F.7, and 137F.6), and inspections (Code sections 137F.9, 137F.10, 137F.11, and 137F.11A). A food establishment must comply with a number of requirements that apply to indoor facilities, including those relating to plumbing (Code section 137F.12), water and waste treatment (Code section 137F.13), toilets and lavatories (Code section 137F.14), and fire safety (Code section 137F.15). A person who does not operate with a valid license is subject to a civil penalty of up to twice the amount of the annual license fee (Code section 137F.9). A food establishment operating in violation of the Code chapter may be enjoined from further operation (Code section 137F.18).
   HOME FOOD PROCESSING ESTABLISHMENTS —— BACKGROUND. Under Code chapter 137D, a home food processing establishment is a business operating on the premises of a residence in which homemade food items are produced for sale or resale, for consumption off premises, if the business has gross annual sales of less than $50,000. The home food processing establishment is required to be licensed and inspected by DIAL (Code section 137D.2). A home food processing establishment is subject to regulations governing time/temperature control for safety food. A person who violates the Code chapter is subject to a civil penalty of $100 per violation (Code section 137D.3). A home food processing establishment operating in violation of the Code chapter may be enjoined from further operation (Code section 137D.4).
   FARM-TO-TABLE EVENTS —— BILL’S PROVISIONS. This bill amends Code chapter 137F by providing for a new farm-to-table event license that is separate from a food establishment license. A farm-to-table event is an event where food is stored, prepared, and served on a farm, subject to certain conditions: (1) the person operating the event must hold a legal interest in the farm, (2) the principal source of income annually generated from the farm cannot derive from the events, (3) any meal prepared on the farm must be for on-premises consumption, (4) the meal must be served outside a building, unless otherwise provided by rules adopted by DIAL, and (5) the meal must include a food entree that includes as a principal ingredient a farm commodity that was produced on the farm. The license is for a period of one year and the license fee is $100, which covers any number of events conducted on the farm. DIAL is required to adopt rules as necessary to administer and enforce these provisions, which may provide for (1) food safety, (2) sanitary facilities, (3) fire control, and (4) the possibility of moving an event inside due to unforeseen circumstances. A person who violates new Code section 137F.22 is subject to the same penalty as provided in Code section 137F.9.
   COTTAGE FOODS —— BACKGROUND. A cottage food is a food produced at a private residence that is not a time/temperature control for safety food. A cottage food is exempt from all licensing, permitting, inspection, packaging, and labeling laws of the state if the food is sold and delivered by the producer directly to the consumer or delivered by mail or by an agent of the producer. Cottage food sold in such manner must be affixed or labeled with information to identify the name and contact information of the person preparing the food, the common name of the food, the ingredients, a disclaimer, and, if the food is home-processed and home-canned pickles, vegetables, or fruits, the date that the food was processed and canned.
   COTTAGE FOODS —— BILL’S PROVISIONS. The bill provides that a cottage food may be sold to a food establishment commonly referred to as a grocery store (selling a food sold for intended preparation or consumption off premises). The food establishment cannot intermingle cottage food with other food. The food establishment cannot store cottage food and other food on the same shelf or as part of the same display. Packaged cottage food must be affixed or labeled with the same information required to be affixed or labeled with cottage food that is delivered directly to consumers. The food establishment must post a notice advertising that the food is cottage food and make available a fact sheet with the same information required to be affixed or labeled to a packaged cottage food.
   DISTRIBUTION OF RAW MILK AND ASSOCIATED PRODUCTS —— BACKGROUND. Under Code chapter 195, a milk producer may elect to produce, process, market, or distribute raw milk, or to use the raw milk to manufacture, market, or distribute a raw milk product or raw milk dairy product. In order to make this election, the raw milk producer must comply with a number of requirements relating to the health of the dairy herd and the distribution of the raw milk or associated products, including labeling requirements (Code sections 195.8 and 195.9). Generally, raw milk or its associated products must be distributed directly to an individual customer at the raw milk dairy or to a location specified by the customer. However, a person cannot deliver the raw milk or associated product to a place of business where food or food items are distributed on a retail basis, including but not limited to a home food processing establishment, food establishment, or farmers market.
   DISTRIBUTION OF RAW MILK AND ASSOCIATED PRODUCTS —— BILL’S PROVISIONS. The bill provides that a home food processing establishment or a food establishment operating under a valid license to sell or otherwise distribute food for off-premises consumption may also sell raw milk or associated products if (1) the home food processing establishment or food establishment is located on the raw dairy farm, (2) the raw milk producer is acting in compliance with Code chapter 195, and (3) the raw milk is produced and any associated products are manufactured on the raw milk dairy farm in compliance with that Code chapter.
   EMERGENCY RULES. DIAL must adopt rules to implement the bill on an emergency basis, which rules are to take effect within 180 days of the effective date of the bill.
   EFFECTIVE DATE. The bill takes effect upon enactment.