H.F. 2767 DIVISION I 1 FARM-TO-TABLE EVENT 2 Section 1. Section 137F.1, subsection 6, Code 2026, is 3 amended to read as follows: 4 6. “Event” means a any of the following: 5 a. A significant occurrence or happening sponsored by 6 a civic, business, governmental, community, or veterans 7 organization and may include an athletic contest. 8 b. An occurrence or happening associated with a 9 farm-to-table event. 10 Sec. 2. Section 137F.1, Code 2026, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 6A. “Farm-to-table event” means a temporary 13 food establishment in which an event is located on real estate 14 classified as agricultural property for property tax purposes, 15 if all of the following apply: 16 a. The person conducting the event holds a legal interest 17 in the agricultural property. 18 b. The event includes a meal prepared on the Iowa farm or 19 off site and transported to the farm by a food establishment 20 operating as a caterer. 21 c. (1) The event is conducted outdoors or within a 22 structure located on the Iowa farm. 23 (2) If the event is conducted in a structure, all of the 24 following apply: 25 (a) The structure is not being actively used to maintain a 26 farm animal as defined in section 673A.3. 27 (b) The structure is maintained in a clean condition. 28 d. At least fifty percent of the entire farm-to-table 29 meal, including entrees, drinks, side dishes, and desserts, 30 is derived from an agricultural product produced by persons 31 participating in the choose Iowa promotional program as 32 provided in chapter 187. 33 DIVISION II 34 COTTAGE FOOD 35 -1- LSB 6675HV (3) 91 da/js 1/ 13

H.F. 2767 Sec. 3. NEW SECTION . 137F.21 Cottage food —— sale at a food 1 establishment —— requirements. 2 1. A food establishment shall not offer for sale or sell a 3 cottage food unless all of the following apply: 4 a. The cottage food producer or an employee of the cottage 5 food producer delivers or distributes the cottage food directly 6 to the consumer. 7 b. The food establishment does not intermingle the cottage 8 food with food that is not cottage food. 9 c. The food establishment does not store the cottage 10 food with other food on the same shelf or as part of the same 11 display. 12 d. The cottage food is packaged. 13 e. The cottage food is affixed or labeled with the 14 information required under section 137F.20. 15 f. The food establishment posts a conspicuous notice at the 16 location where the cottage food is offered for sale or sold. 17 The notice must state the following: 18 “COTTAGE FOOD 19 This product was produced at a residential property that is 20 exempt from state licensing and inspection. See the available 21 information provided on the packaged label.” 22 2. Notwithstanding subsection 1, a temporary food 23 establishment may provide a cottage food that is produced on 24 the farm to consumers during a farm-to-table event. 25 DIVISION III 26 DISTRIBUTION OF RAW MILK AND ASSOCIATED PRODUCTS 27 Sec. 4. Section 137D.2A, Code 2026, is amended to read as 28 follows: 29 137D.2A Raw milk —— associated products. 30 1. A home food processing establishment shall not 31 market, advertise for sale, offer for sale, sell or otherwise 32 distribute, or use raw milk, or a manufactured raw milk product 33 or raw milk dairy product, as provided in chapter 195 . 34 2. Notwithstanding subsection 1, a home food processing 35 -2- LSB 6675HV (3) 91 da/js 2/ 13

H.F. 2767 establishment may market, advertise for sale, offer for sale, 1 or sell or otherwise distribute raw milk, or a manufactured 2 raw milk product or a raw milk dairy product, if all of the 3 following apply: 4 a. The home food processing establishment is operating under 5 a license issued pursuant to section 137D.2. 6 b. The home food processing establishment is located on 7 the premises of a raw milk dairy farm where the raw milk is 8 produced, processed, marketed, or distributed as described in 9 chapter 195; or the raw milk is manufactured, marketed, or 10 distributed as a raw milk product or raw milk dairy product as 11 described in chapter 195. 12 c. The raw milk producer operating the raw milk dairy farm 13 acts in compliance with the requirements in chapter 195. 14 d. The raw milk, or the raw milk product or raw milk dairy 15 product, meets the requirements of chapter 195, including 16 requirements for distribution as provided in section 195.8. 17 Sec. 5. Section 137F.8B, Code 2026, is amended to read as 18 follows: 19 137F.8B Raw milk —— associated products. 20 1. A food establishment or farmers market shall not 21 market, advertise for sale, offer for sale, sell or otherwise 22 distribute, or use raw milk, or a manufactured raw milk product 23 or a raw milk dairy product, regardless of whether the food 24 establishment or farmers market is regulated by the department 25 under this chapter or another chapter, another state agency, 26 or a municipality. 27 2. Notwithstanding subsection 1, a food establishment 28 that sells or otherwise distributes food for off-premises 29 consumption may market, advertise for sale, offer for sale, 30 or sell or otherwise distribute raw milk, or a manufactured 31 raw milk product or a raw milk dairy product, if all of the 32 following apply: 33 a. The food establishment is operating under a license 34 issued pursuant to section 137F.4. 35 -3- LSB 6675HV (3) 91 da/js 3/ 13

H.F. 2767 b. The food establishment is located on the premises of a 1 raw milk dairy farm where the raw milk is produced, processed, 2 marketed, or distributed as described in chapter 195; or the 3 raw milk is manufactured, marketed, or distributed as a raw 4 milk product or raw milk dairy product as described in chapter 5 195. 6 c. The raw milk producer operating the raw milk dairy farm 7 acts in compliance with the requirements in chapter 195. 8 d. The raw milk, or the raw milk product or raw milk dairy 9 product, meets the requirements of chapter 195, including 10 requirements for distribution as provided in section 195.8. 11 Sec. 6. Section 195.1, Code 2026, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 3A. “Inherent risk” means any of the 14 following: 15 a. The potential presence of a naturally occurring harmful 16 bacterium or other pathogen that, if present in raw milk, 17 could, when consumed by an individual, directly cause the 18 individual to suffer injury, illness, or death, notwithstanding 19 that the raw milk was produced, processed, kept for storage, 20 marketed, or distributed in compliance with this chapter. 21 b. The potential presence of a naturally occurring harmful 22 bacterium or other pathogen that, if present in a raw milk 23 product or raw milk dairy product, could, when consumed by an 24 individual, directly cause the individual to suffer injury, 25 illness, or death, notwithstanding that the raw milk product 26 or raw milk dairy product was manufactured, kept for storage, 27 marketed, or distributed in compliance with this chapter. 28 Sec. 7. Section 195.6, subsection 3, Code 2026, is amended 29 to read as follows: 30 3. a. Each twelve-month period, a licensed veterinarian 31 must examine each dairy animal maintained at the raw milk 32 producer’s raw milk dairy to determine the dairy animal’s 33 health status. The examination must at least include a blood 34 test for common diseases afflicting the type of dairy animal 35 -4- LSB 6675HV (3) 91 da/js 4/ 13

H.F. 2767 being examined. 1 b. An examination of a dairy animal conducted by a licensed 2 veterinarian under paragraph “a” shall not be construed to apply 3 to the quality or safety of any raw milk product, or raw milk 4 dairy product, manufactured at the raw milk dairy. 5 Sec. 8. Section 195.8, subsection 1, paragraph c, Code 2026, 6 is amended to read as follows: 7 c. (1) The Except as provided in subparagraph (2), the raw 8 milk producer shall distribute the raw milk directly to the 9 individual at the raw milk dairy or to a location specified by 10 the individual. However, a 11 (2) A person shall not deliver the raw milk to a place 12 of business where food or food items are distributed on 13 a retail basis, including but not limited to a home food 14 processing establishment regulated under chapter 137D or a 15 food establishment or farmers market regulated under chapter 16 137F . However, this subparagraph does not prevent any of the 17 following: 18 (a) A producer from distributing raw milk at a home food 19 processing establishment located on the premises of the 20 producer’s raw milk dairy as provided in section 137D.2A. 21 (b) A producer from distributing raw milk at a food 22 establishment located on the premises of the producer’s raw 23 milk dairy as provided in section 137F.8B. 24 (3) The raw milk shall only be used for consumption by the 25 individual, members of the individual’s household, and the 26 individual’s nonpaying guests or nonpaying employees. 27 Sec. 9. Section 195.8, subsection 2, paragraph c, Code 2026, 28 is amended to read as follows: 29 c. (1) The Except as provided in subparagraph (2), the raw 30 milk producer shall distribute the raw milk product or raw milk 31 dairy product directly to the individual at the raw milk dairy 32 or to a location specified by the individual. However, a 33 (2) A person shall not deliver the raw milk product , or 34 raw milk dairy product , to a place of business where food or 35 -5- LSB 6675HV (3) 91 da/js 5/ 13

H.F. 2767 a food item is distributed on a retail basis, including but 1 not limited to a home food processing establishment regulated 2 under chapter 137D or a food establishment or farmers market 3 regulated under chapter 137F . However, this subparagraph does 4 not prevent any of the following: 5 (a) A producer from distributing a raw milk product, or a 6 raw milk dairy product, at a home food processing establishment 7 located on the premises of the producer’s raw milk dairy as 8 provided in section 137D.2A. 9 (b) A producer from distributing a raw milk product, or 10 a raw milk dairy product, at a food establishment located on 11 the premises of the producer’s raw milk dairy as provided in 12 section 137F.8B. 13 (3) The raw milk product or raw milk dairy product shall 14 only be used for consumption by the individual, members of the 15 individual’s household, or the individual’s nonpaying guests 16 or nonpaying employees. 17 Sec. 10. Section 195.9, Code 2026, is amended to read as 18 follows: 19 195.9 Labeling containers holding raw milk or associated 20 products. 21 1. A raw milk producer who distributes raw milk, or a 22 manufactured raw milk product or raw milk dairy product, shall 23 label the container holding the raw milk, or the manufactured 24 raw milk product or raw milk dairy product. The label shall 25 be permanently affixed to the container. The words on the 26 label shall be printed using upper case letters in at least 27 twelve point boldface type. If the container includes a main 28 informational or advertising panel, the label shall be included 29 as part of the panel. 30 2. a. For a container holding raw milk, or a raw milk 31 product or raw dairy product, the label shall state the 32 following: 33 Notice to Consumers Warning 34 This container holds raw milk , or an associated product, 35 -6- LSB 6675HV (3) 91 da/js 6/ 13

H.F. 2767 including a raw milk product or a raw milk dairy product, that 1 is not subject to state inspection or other public health 2 regulations that require pasteurization and grading. The raw 3 milk or associated product may contain a harmful bacterium 4 or other pathogen. Under Iowa Code section 195.9A, you are 5 assuming liability for any inherent risk associated with 6 consuming the raw milk or associated product. 7 b. For a container holding a raw milk product or raw milk 8 dairy product, the label shall state the following: 9 Notice to Consumers 10 This container holds a raw milk product or raw milk dairy 11 product that is not subject to state inspection or other public 12 health regulations that require pasteurization and grading. 13 3. A raw milk producer who distributes raw milk, or a raw 14 milk producer who manufactures a raw milk product or raw milk 15 dairy product, shall post a notice described in subsection 2 16 on the premises of the milk producer’s raw milk dairy. The 17 raw milk producer shall post the notice at each point of 18 distribution, including but not limited to any food processing 19 establishment or food establishment located on the premises 20 of the raw milk dairy as provided in this chapter and section 21 137D.2A or 137F.8B. 22 Sec. 11. NEW SECTION . 195.9A Civil liability. 23 1. a. Except as provided in paragraph “b” , a person who 24 produces, processes, keeps for storage, markets, or distributes 25 raw milk originating at a raw milk producer’s raw milk dairy 26 is not liable for an injury, illness, or death suffered by 27 an individual that was directly caused by the individual 28 consuming the raw milk and thereby assuming the inherent risk 29 of consuming raw milk. 30 b. Paragraph “a” does not apply if any of the following 31 apply: 32 (1) The raw milk was not produced, processed, kept for 33 storage, marketed, or distributed in compliance with this 34 chapter. 35 -7- LSB 6675HV (3) 91 da/js 7/ 13

H.F. 2767 (2) A person described in paragraph “a” acted, or omitted 1 to act, in a manner that constituted gross negligence, 2 recklessness, willful or wanton misconduct, or intentional 3 wrongdoing. 4 2. a. Except as provided in paragraph “b” , a person who 5 manufactures, keeps for storage, markets, or distributes a raw 6 milk product or a raw milk dairy product originating at the raw 7 milk producer’s raw milk dairy is not liable for an injury, 8 illness, or death suffered by an individual that was directly 9 caused by the individual consuming the raw milk and thereby 10 assuming the inherent risk of consuming a raw milk product or 11 raw milk dairy product. 12 b. Paragraph “a” does not apply if any of the following 13 apply: 14 (1) The raw milk product or raw milk dairy product was not 15 manufactured, kept for storage, marketed, or distributed in 16 compliance with this chapter. 17 (2) A person described in paragraph “a” acted, or omitted 18 to act, in a manner that constituted gross negligence, 19 recklessness, willful or wanton misconduct, or intentional 20 wrongdoing. 21 DIVISION IV 22 RULEMAKING AND EFFECTIVE DATE 23 Sec. 12. EMERGENCY RULES. The department of inspections, 24 appeals, and licensing shall adopt emergency rules under 25 section 17A.4, subsection 3, and section 17A.5, subsection 2, 26 paragraph “b”, to implement the provisions of this Act within 27 one hundred eighty days of the effective date of this Act and 28 shall submit such rules to the administrative rules coordinator 29 and the administrative code editor pursuant to section 17A.5, 30 subsection 1, within the same period. The rules shall be 31 effective immediately upon filing unless a later date is 32 specified in the rules. Any rules adopted in accordance with 33 this section shall also be published as a notice of intended 34 action as provided in section 17A.4. 35 -8- LSB 6675HV (3) 91 da/js 8/ 13

H.F. 2767 Sec. 13. EFFECTIVE DATE. This Act, being deemed of 1 immediate importance, takes effect upon enactment. 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 HOME FOOD ESTABLISHMENTS —— BACKGROUND. Under Code chapter 6 137F, the department of inspections, appeals, and licensing 7 (DIAL) regulates food establishments that provide food for sale 8 on a retail basis, including grocery stores and restaurants 9 (see Code section 137F.3). A food establishment may also be 10 regulated by another regulated authority that is a political 11 subdivision (referred to as a municipal corporation) under 12 contract with DIAL. Generally, a food establishment is subject 13 to certain administrative requirements, including licensing 14 and the payment of an associated licensing fee (Code sections 15 137F.5, 137F.7, and 137F.6), and inspections (Code sections 16 137F.9, 137F.10, 137F.11, and 137F.11A). A food establishment 17 must comply with a number of requirements that apply to indoor 18 facilities, including those relating to plumbing (Code section 19 137F.12), water and waste treatment (Code section 137F.13), 20 toilets and lavatories (Code section 137F.14), and fire safety 21 (Code section 137F.15). A person who does not operate with a 22 valid license is subject to a civil penalty of up to twice the 23 amount of the annual license fee (Code section 137F.9). A food 24 establishment operating in violation of the Code chapter may be 25 enjoined from further operation (Code section 137F.18). 26 HOME FOOD PROCESSING ESTABLISHMENTS —— BACKGROUND. Under 27 Code chapter 137D, a home food processing establishment 28 is a business operating on the premises of a residence in 29 which homemade food items are produced for sale or resale, 30 for consumption off premises, if the business has gross 31 annual sales of less than $50,000. The home food processing 32 establishment is required to be licensed and inspected by DIAL 33 (Code section 137D.2). A home food processing establishment is 34 subject to regulations governing time/temperature control for 35 -9- LSB 6675HV (3) 91 da/js 9/ 13

H.F. 2767 safety food. A person who violates the Code chapter is subject 1 to a civil penalty of $100 per violation (Code section 137D.3). 2 A home food processing establishment operating in violation of 3 the Code chapter may be enjoined from further operation (Code 4 section 137D.4). 5 TEMPORARY FOOD ESTABLISHMENTS AND EVENTS —— BACKGROUND. A 6 temporary food establishment is defined as a food establishment 7 that operates for not more than 14 consecutive days in 8 conjunction with a single event (Code section 137F.1). “Event” 9 is defined as a significant occurrence or happening that is 10 (1) sponsored by a civic, business, governmental, community, 11 or veterans organization, or (2) an athletic contest (Code 12 section 137F.1). A person conducting an event must obtain a 13 license from the appropriate regulatory authority (Code section 14 137F.5). The license fee for a temporary food establishment 15 for a single event is $50 (Code section 137F.6). 16 FARM-TO-TABLE EVENTS —— BILL’S PROVISIONS. This bill 17 includes a farm-to-table event as a new form of event regulated 18 as a temporary food establishment (amended Code section 19 137F.1). A farm-to-table event must be located on real estate 20 classified as agricultural property for property tax purposes 21 (see 701 IAC 102). The person conducting the event must hold a 22 legal interest in the agricultural property. The event must 23 (1) include a meal prepared on the Iowa farm or off site and 24 transported to the farm by a food establishment operating as a 25 caterer, and (2) be conducted outdoors or within a structure 26 located on the Iowa farm. Finally, at least 50 percent of the 27 meal must be derived from an agricultural product produced by 28 persons participating in the choose Iowa promotional program as 29 provided in Code chapter 187. 30 COTTAGE FOODS —— BACKGROUND. A cottage food is a food 31 produced at a private residence that is not a time/temperature 32 control for safety food (Code section 137F.1). A cottage 33 food is exempt from all licensing, permitting, inspection, 34 packaging, and labeling laws of the state if the food is sold 35 -10- LSB 6675HV (3) 91 da/js 10/ 13

H.F. 2767 and delivered by the producer directly to the consumer or 1 delivered by mail or by an agent of the producer (Code section 2 137F.20). Cottage food sold in such manner must be affixed 3 or labeled with information to identify the name and contact 4 information of the person preparing the food, the common name 5 of the food, the ingredients, a disclaimer, and, if the food is 6 home-processed and home-canned pickles, vegetables, or fruits, 7 the date that the food was processed and canned. 8 COTTAGE FOODS —— BILL’S PROVISIONS. The bill provides that 9 a food establishment such as a grocery store cannot offer 10 for sale or sell a cottage food unless certain conditions 11 are satisfied (new Code section 137F.22). The cottage food 12 producer or producer’s employee must distribute the cottage 13 food directly to the consumer. The food establishment cannot 14 intermingle the cottage food with food that is not cottage 15 food. The food establishment cannot store the cottage food 16 with other food on the same shelf or as part of the same 17 display. The cottage food must be packaged and labeled. 18 Finally, the food establishment must post a conspicuous 19 notice at the location where the cottage food is offered 20 for sale or sold stating that the cottage food was produced 21 at a residential property exempt from state licensing and 22 inspection. The bill also provides that a farm-to-table event 23 may serve cottage food that is produced on the farm as part of 24 a farm-to-table event. 25 RAW MILK AND ASSOCIATED PRODUCTS —— BACKGROUND. Under Code 26 chapter 195, a milk producer may elect to produce, process, 27 market, or distribute raw milk, or to use the raw milk to 28 manufacture, market, or distribute a raw milk product or raw 29 milk dairy product (raw milk or associated product) (Code 30 chapter 190). In order to make this election, the raw milk 31 producer must comply with a number of requirements relating to 32 the health of the dairy herd. A licensed veterinarian must, 33 each 12-month period, examine each dairy animal maintained at a 34 raw milk dairy to determine the dairy animal’s health status 35 -11- LSB 6675HV (3) 91 da/js 11/ 13

H.F. 2767 (Code section 195.6). Other requirements apply to labeling and 1 distribution (Code sections 195.8 and 195.9). A label must 2 be affixed to a container holding raw milk or an associated 3 product notifying consumers that its contents are not subject 4 to state inspection or other public health regulations that 5 require pasteurization and grading. Generally, raw milk or 6 its associated products must be distributed directly to an 7 individual customer at the raw milk dairy or to a location 8 specified by the customer. However, a person cannot deliver 9 the raw milk or associated product to a place of business where 10 food or food items are distributed on a retail basis, including 11 but not limited to a home food processing establishment, food 12 establishment, or farmers market. 13 RAW MILK AND ASSOCIATED PRODUCTS —— BILL’S PROVISIONS —— RAW 14 MILK DAIRY THAT IS A HOME FOOD PROCESSING ESTABLISHMENT OR FOOD 15 ESTABLISHMENT. The bill in part applies to a (1) home food 16 processing establishment, or (2) food establishment that sells 17 or otherwise distributes food for off-premises consumption. 18 Specifically, the bill provides that such an establishment may 19 market, advertise for sale, offer for sale, sell, or otherwise 20 distribute raw milk, or an associated product, on the premises 21 of the raw milk dairy where the raw milk was produced and 22 processed or the associated product was manufactured (amended 23 Code sections 137D.2A, 137F.8B, and 195.8). 24 RAW MILK AND ASSOCIATED PRODUCTS —— BILL’S PROVISIONS —— 25 VETERINARIAN’S EXAMINATION OF DAIRY ANIMALS —— LIABILITY. The 26 bill provides that an examination of a dairy animal conducted 27 by a licensed veterinarian is not to be construed to apply to 28 the quality or safety of any raw milk product, or raw milk 29 dairy product, manufactured at the raw milk dairy (amended Code 30 section 195.6). 31 RAW MILK AND ASSOCIATED PRODUCTS —— BILL’S PROVISIONS 32 —— TERM “INHERENT RISK” —— NOTICE AND LIABILITY. The bill 33 defines the term “inherent risk” as the potential presence of a 34 naturally occurring harmful bacterium or other pathogen that, 35 -12- LSB 6675HV (3) 91 da/js 12/ 13

H.F. 2767 if present in raw milk, or an associated product, could, when 1 consumed by an individual, directly cause the individual to 2 suffer injury, illness, or death (amended Code section 195.1). 3 The bill revises the notice provision by adding that a consumer 4 assumes any inherent risk associated with consuming raw milk or 5 an associated product (amended Code section 195.9). The bill 6 applies to a person who produces, processes, keeps for storage, 7 markets, or distributes raw milk originating at a raw milk 8 producer’s raw milk dairy and to a person who manufactures, 9 keeps for storage, markets, or distributes an associated 10 product originating at the raw milk dairy (new Code section 11 195.9A). In each case, the person is not civilly liable for an 12 injury, illness, or death suffered by an individual that was 13 directly caused by the individual consuming the raw milk or 14 associated product who thereby has assumed the inherent risk. 15 Several exceptions apply: (1) the raw milk or associated 16 product was not produced and processed, or manufactured, kept 17 for storage, marketed, or distributed in compliance with Code 18 chapter 195; or (2) the person acted, or omitted to act, in a 19 manner that constituted gross negligence, recklessness, willful 20 or wanton misconduct, or intentional wrongdoing. 21 EMERGENCY RULES. DIAL must adopt rules to implement the bill 22 on an emergency basis, which rules are to take effect within 23 180 days of the effective date of the bill. 24 EFFECTIVE DATE. The bill takes effect upon enactment. 25 -13- LSB 6675HV (3) 91 da/js 13/ 13