Senate File 2390 - Reprinted SENATE FILE 2390 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1169) (As Amended and Passed by the Senate April 26, 2018 ) A BILL FOR An Act relating to licensure and regulation for the hotel 1 sanitation code, home bakeries, and food establishments and 2 food processing plants, modifying fees and penalties, and 3 including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 SF 2390 (4) 87 ec/rn/jh

S.F. 2390 DIVISION I 1 HOTEL SANITATION CODE 2 Section 1. Section 137C.6, subsection 3, paragraph b, Code 3 2018, is amended by striking the paragraph. 4 Sec. 2. Section 137C.7, Code 2018, is amended to read as 5 follows: 6 137C.7 License required. 7 No A person shall not open or operate a hotel until the 8 regulatory authority has inspected the hotel and issued 9 a license has been obtained from the regulatory authority 10 and until the hotel has been inspected by the regulatory 11 authority to the person . The regulatory authority shall 12 conduct inspections in accordance with standards adopted by 13 the department by rule pursuant to chapter 17A. Each license 14 shall expire one year from the date of issue. A license is 15 renewable. All licenses issued under the Iowa hotel sanitation 16 code this chapter that are not renewed by the licensee on or 17 before the expiration date shall be subject to a penalty of ten 18 percent of the license fee per month if the license is renewed 19 at a later date. A license is not transferable. 20 Sec. 3. Section 137C.9, subsection 1, Code 2018, is amended 21 to read as follows: 22 1. Either the department or the municipal corporation shall 23 collect the following annual license fees: 24 a. For a hotel containing fifteen thirty guest rooms or 25 less, twenty-seven fifty dollars. 26 b. For a hotel containing more than fifteen thirty but less 27 than thirty-one one hundred one guest rooms, forty dollars and 28 fifty cents one hundred dollars . 29 c. For a hotel containing more than thirty but less than 30 seventy-six one hundred one guest rooms, fifty-four one hundred 31 fifty dollars. 32 d. For a hotel containing more than seventy-five but less 33 than one hundred fifty guest rooms, fifty-seven dollars and 34 fifty cents. 35 -1- SF 2390 (4) 87 ec/rn/jh 1/ 8

S.F. 2390 e. For a hotel containing one hundred fifty or more guest 1 rooms, one hundred one dollars and twenty-five cents. 2 DIVISION II 3 HOME BAKERIES 4 Sec. 4. Section 137D.2, subsection 1, Code 2018, is amended 5 to read as follows: 6 1. A person shall not open or operate a home bakery 7 until a license has been obtained from the department of 8 inspections and appeals. The department shall collect a fee 9 of thirty-three fifty dollars and seventy-five cents for a 10 license. After collection, the fees shall be deposited in the 11 general fund of the state. A license shall expire one year 12 from date of issue. A license is renewable. 13 DIVISION III 14 FOOD ESTABLISHMENTS AND FOOD PROCESSING PLANTS 15 Sec. 5. Section 137F.1, Code 2018, is amended by adding the 16 following new subsections: 17 NEW SUBSECTION . 4A. “Event” means a significant occurrence 18 or happening sponsored by a civic, business, governmental, 19 community, or veterans organization and may include an athletic 20 contest. 21 NEW SUBSECTION . 15A. “Time/temperature control for safety 22 food” means a food that requires time and temperature controls 23 for safety to limit pathogenic microorganism growth or toxin 24 formation. 25 Sec. 6. Section 137F.1, subsection 7, unnumbered paragraph 26 1, Code 2018, is amended to read as follows: 27 “Food establishment” means an operation that stores, 28 prepares, packages, serves, vends, or otherwise provides food 29 for human consumption and includes a food service operation 30 in a salvage or distressed food operation, school, summer 31 camp, residential service substance abuse treatment facility, 32 halfway house substance abuse treatment facility, correctional 33 facility operated by the department of corrections, or the 34 state training school , or the Iowa juvenile home . “Food 35 -2- SF 2390 (4) 87 ec/rn/jh 2/ 8

S.F. 2390 establishment” does not include the following: 1 Sec. 7. Section 137F.1, subsection 7, paragraphs b, e, and 2 f, Code 2018, are amended to read as follows: 3 b. An establishment that offers only prepackaged foods that 4 are nonpotentially hazardous not time/temperature control for 5 safety foods . 6 e. Premises where a person operates a farmers market, if 7 potentially hazardous food is time/temperature control for 8 safety foods are not sold or distributed from the premises. 9 f. Premises of a residence in which food that is 10 nonpotentially hazardous not a time/temperature control for 11 safety food is sold for consumption off the premises to a 12 consumer customer, if the food is labeled to identify the name 13 and address of the person preparing the food and the common 14 name of the food. 15 Sec. 8. Section 137F.1, subsections 11 and 12, Code 2018, 16 are amended by striking the subsections. 17 Sec. 9. Section 137F.1, subsections 13, 15, 16, and 17, Code 18 2018, are amended to read as follows: 19 13. “Pushcart” means a non-self-propelled vehicle food 20 establishment limited to serving nonpotentially hazardous foods 21 foods that are not time/temperature control for safety foods or 22 commissary-wrapped foods maintained at proper temperatures, or 23 limited to the preparation and serving of frankfurters. 24 15. “Temporary food establishment” means a food 25 establishment that operates for a period of no more than 26 fourteen consecutive days in conjunction with a single event 27 or celebration . 28 16. “Vending machine” means a food establishment which is 29 a self-service device that, upon insertion of a coin, paper 30 currency, token, card, or key, or by optional manual operation, 31 dispenses unit servings of food in bulk or in packages without 32 the necessity of replenishing the device between each vending 33 operation. 34 17. “Vending machine location” means the physical site 35 -3- SF 2390 (4) 87 ec/rn/jh 3/ 8

S.F. 2390 room, enclosure, space, or area where a one or more vending 1 machine is machines are installed and operated, including the 2 storage and servicing areas on the premises that are used in 3 conjunction with to service and maintain the vending machine. 4 Sec. 10. Section 137F.3, subsection 4, Code 2018, is amended 5 to read as follows: 6 4. A municipal corporation that is responsible for 7 enforcing this chapter within its jurisdiction pursuant to an 8 agreement shall make an annual report to the director providing 9 the following information: 10 a. The total number of licenses granted or renewed by the 11 municipal corporation under this chapter during the year. 12 b. The number of licenses granted or renewed by the 13 municipal corporation under this chapter during the year in 14 each of the following categories: 15 (1) Food establishments. 16 (2) Food processing plants. 17 (3) Mobile food units and pushcarts. 18 (4) Temporary food establishments. 19 (5) Vending machines. 20 c. The amount of money collected in license fees during the 21 year. 22 d. The amount expended to perform the functions required 23 under the agreement, submitted on a form prescribed by the 24 department. 25 e. Other information the director requests use the data 26 system prescribed by the director for activities governed by an 27 agreement executed pursuant to this section . 28 Sec. 11. Section 137F.4, Code 2018, is amended to read as 29 follows: 30 137F.4 License required. 31 A person shall not operate a food establishment or food 32 processing plant to provide goods or services to the general 33 public, or open a food establishment to the general public, 34 until the appropriate license has been obtained from the 35 -4- SF 2390 (4) 87 ec/rn/jh 4/ 8

S.F. 2390 regulatory authority. Sale of products at wholesale to outlets 1 not owned by a commissary owner requires a food processing 2 plant license. A license shall expire one year from the date 3 of issue. A license is renewable if application for renewal is 4 made prior to expiration of the license or within sixty days 5 of the expiration date of the license . All licenses issued 6 under this chapter that are not renewed by the licensee on or 7 before the expiration date shall be subject to a penalty of ten 8 percent per month of the license fee if the license is renewed 9 at a later date. 10 Sec. 12. Section 137F.5, Code 2018, is amended to read as 11 follows: 12 137F.5 Application for license. 13 1. An application form prescribed by the department 14 for a license under this chapter shall be obtained from 15 the department or from a municipal corporation which is 16 a regulatory authority. A completed application shall be 17 submitted to the appropriate regulatory authority. 18 2. A person conducting an event shall submit a license 19 application and an application fee of fifty dollars to the 20 appropriate regulatory authority at least sixty days in advance 21 of the event. An “event” for purposes of this subsection 22 does not include a function with ten or fewer temporary food 23 establishments, a fair as defined in section 174.1, or a 24 farmers market. 25 2. 3. The dominant form of business shall determine the 26 type of license for establishments which engage in operations 27 covered under both the definition of a food establishment and 28 of a food processing plant. 29 3. 4. The regulatory authority where the unit is domiciled 30 shall issue a license for a mobile food unit. 31 4. An application for renewal of a license shall be made 32 at least thirty days before the expiration of the existing 33 license. 34 Sec. 13. Section 137F.6, subsection 1, Code 2018, is amended 35 -5- SF 2390 (4) 87 ec/rn/jh 5/ 8

S.F. 2390 to read as follows: 1 1. The regulatory authority shall collect the following 2 annual license fees: 3 a. For a mobile food unit or pushcart, twenty-seven two 4 hundred fifty dollars. 5 b. For a temporary food establishment per fixed location 6 for a single event , thirty-three dollars and fifty cents fifty 7 dollars . 8 c. For a temporary food establishment for multiple 9 nonconcurrent events during a calendar year, one annual 10 license fee of two hundred dollars for each establishment on a 11 countywide basis. 12 c. d. For a vending machine, twenty fifty dollars for the 13 first machine and five ten dollars for each additional machine. 14 d. e. For a food establishment which prepares or serves 15 food for individual portion service intended for consumption 16 on-the-premises, the annual license fee shall correspond to the 17 annual gross food and beverage sales of the food establishment, 18 as follows: 19 (1) Annual gross sales of under fifty less than one hundred 20 thousand dollars, sixty-seven dollars and fifty cents one 21 hundred fifty dollars . 22 (2) Annual gross sales of at least fifty one hundred 23 thousand dollars but less than one five hundred thousand 24 dollars, one hundred fourteen dollars and fifty cents three 25 hundred dollars . 26 (3) Annual gross sales of at least one five hundred thousand 27 dollars but less than two hundred fifty thousand dollars, two 28 hundred thirty-six dollars and twenty-five cents or more, four 29 hundred dollars . 30 (4) Annual gross sales of two hundred fifty thousand dollars 31 but less than five hundred thousand dollars, two hundred 32 seventy-five dollars. 33 (5) Annual gross sales of five hundred thousand dollars or 34 more, three hundred three dollars and seventy-five cents. 35 -6- SF 2390 (4) 87 ec/rn/jh 6/ 8

S.F. 2390 e. f. For a food establishment which sells food or food 1 products to consumer customers intended for preparation or 2 consumption off-the-premises, the annual license fee shall 3 correspond to the annual gross food and beverage sales of the 4 food establishment, as follows: 5 (1) Annual gross sales of under ten less than two hundred 6 fifty thousand dollars, forty dollars and fifty cents one 7 hundred fifty dollars . 8 (2) Annual gross sales of at least ten two hundred fifty 9 thousand dollars but less than two seven hundred fifty thousand 10 dollars, one hundred one dollars and twenty-five cents three 11 hundred dollars . 12 (3) Annual gross sales of at least two seven hundred fifty 13 thousand dollars but less than five hundred thousand dollars, 14 one hundred fifty-five dollars and twenty-five cents or more, 15 four hundred dollars . 16 (4) Annual gross sales of at least five hundred thousand 17 dollars but less than seven hundred fifty thousand dollars, two 18 hundred two dollars and fifty cents. 19 (5) Annual gross sales of seven hundred fifty thousand 20 dollars or more, three hundred three dollars and seventy-five 21 cents. 22 f. g. For a food processing plant, the annual license fee 23 shall correspond to the annual gross food and beverage sales of 24 the food processing plant, as follows: 25 (1) Annual gross sales of under fifty less than two hundred 26 thousand dollars, sixty-seven dollars and fifty cents one 27 hundred fifty dollars . 28 (2) Annual gross sales of at least fifty two hundred 29 thousand dollars but less than two hundred fifty thousand 30 million dollars, one hundred thirty-five three hundred dollars. 31 (3) Annual gross sales of at least two hundred fifty 32 thousand million dollars but less than five hundred thousand 33 dollars, two hundred two dollars and fifty cents or more, five 34 hundred dollars . 35 -7- SF 2390 (4) 87 ec/rn/jh 7/ 8

S.F. 2390 (4) Annual gross sales of five hundred thousand dollars or 1 more, three hundred thirty-seven dollars and fifty cents. 2 g. h. For a farmers market where potentially hazardous 3 time/temperature control for safety food is sold or 4 distributed, one annual license fee of one hundred fifty 5 dollars for each vendor on a countywide basis. 6 i. For a certificate of free sale or sanitation, thirty-five 7 dollars for the first certificate and ten dollars for each 8 additional identical certificate requested at the same time. 9 h. j. For a food establishment covered by both paragraphs 10 “d” “e” and “e” “f” , the license fees assessed shall be an 11 amount not to exceed seventy-five percent of the total fees 12 applicable under both paragraphs applicant shall pay the 13 licensee fee based on the dominant form of business plus one 14 hundred fifty dollars . 15 k. For an unattended food establishment, the annual license 16 fee shall correspond to the annual gross food and beverage 17 sales, as follows: 18 (1) Annual gross sales of less than one hundred thousand 19 dollars, seventy-five dollars. 20 (2) Annual gross sales of one hundred thousand dollars or 21 more, one hundred fifty dollars. 22 Sec. 14. Section 137F.6, subsection 2, Code 2018, is amended 23 by striking the subsection. 24 Sec. 15. REPEAL. Section 137F.17, Code 2018, is repealed. 25 DIVISION IV 26 EFFECTIVE DATE 27 Sec. 16. EFFECTIVE DATE. This Act takes effect January 1, 28 2019. 29 -8- SF 2390 (4) 87 ec/rn/jh 8/ 8