House File 2431 - Reprinted HOUSE FILE 2431 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO HF 2005) (As Amended and Passed by the House March 10, 2022 ) A BILL FOR An Act relating to the regulation of home-based businesses, 1 including food establishments and home food processing 2 establishments, and providing civil penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 HF 2431 (2) 89 js/ns/md
H.F. 2431 Section 1. Section 10A.104, subsection 11, Code 2022, is 1 amended to read as follows: 2 11. Administer inspections and licensing of hotels and home 3 bakeries food processing establishments . 4 Sec. 2. Section 137D.1, Code 2022, is amended to read as 5 follows: 6 137D.1 Definitions. 7 As used in this chapter , unless the context otherwise 8 requires: 9 1. “Food” means any raw, cooked, or processed edible 10 substance, ice, beverage, or ingredient used or intended for 11 use or sale in whole or in part for human consumption. 12 2. “Department” means the department of inspections and 13 appeals. 14 1. “Department” means the department of inspections and 15 appeals. 16 2. “Food” means any raw, cooked, or processed edible 17 substance, ice, beverage, or ingredient used or intended for 18 use or sale in whole or in part for human consumption. 19 3. “Home bakery food processing establishment means a 20 business on the premises of a residence in which prepared 21 homemade food is created items are produced for sale or 22 resale, for consumption off the premises, if the business has 23 gross annual sales of prepared food of less than thirty-five 24 fifty thousand dollars. However, “home bakery food processing 25 establishment does not include a residence in which food is 26 prepared to be used or sold by churches, fraternal societies, 27 charitable organizations, or civic organizations. 28 4. “Prepared food” means soft pies, bakery products 29 with a custard or cream filling, or baked goods that are a 30 time/temperature control for safety food. “Prepared food” does 31 not include baked goods that are not a time/temperature control 32 for safety food, including but not limited to breads, fruit 33 pies, cakes, or other pastries that are not a time/temperature 34 control for safety food. “Homemade food item” means a food 35 -1- HF 2431 (2) 89 js/ns/md 1/ 11
H.F. 2431 that is produced and, if packaged, packaged at a home food 1 processing establishment. “Homemade food item” includes food 2 that is not time/temperature control for safety food, but 3 does not include such food if produced and sold under section 4 137F.20. “Homemade food item” does not include unpasteurized 5 fruit or vegetable juice, raw sprout seeds, foods containing 6 game animals, fish or shellfish, alcoholic beverages, 7 bottled water, packaged ice, consumable hemp products, food 8 that will be further processed by a food processing plant, 9 time/temperature control for safety food packaged using 10 a reduced oxygen packaging method, milk or milk products 11 regulated under chapter 192, and meat, meat food products, 12 poultry, or poultry products regulated under chapter 189A, 13 except for any of the following products when sold directly to 14 the end consumer: 15 a. Poultry, poultry byproduct, or poultry food product 16 if the producer raised the poultry pursuant to the exemption 17 set forth in 9 C.F.R. §381.10(c)(1) limiting the producer to 18 slaughtering not more than one thousand poultry during the 19 calendar year. 20 b. Poultry, poultry byproduct, or poultry food product if 21 the poultry is from an inspected source exempted pursuant to 9 22 C.F.R. §381.10(d). 23 c. Meat, meat byproduct, or meat food product if the meat 24 is from an inspected source exempted pursuant to 9 C.F.R. 25 §303.1(d). 26 5. “Produce” , with respect to preparing homemade food 27 items, means to prepare a food item by cooking, baking, 28 drying, mixing, cutting, fermenting, preserving, freezing, 29 dehydrating, growing, raising, or other process. “Produce” 30 does not include the preparation methods of low-acid canning, 31 low-acid fermentation, acidification, curing, and smoking for 32 preservation rather than flavor enhancement. 33 5. 6. “Time/temperature control for safety food” means a 34 food that requires time and temperature controls for safety to 35 -2- HF 2431 (2) 89 js/ns/md 2/ 11
H.F. 2431 limit pathogenic microorganism growth or toxin formation. 1 Sec. 3. Section 137D.2, Code 2022, is amended to read as 2 follows: 3 137D.2 Licenses and inspections. 4 1. A person shall not open or operate a home bakery food 5 processing establishment until a license has been obtained from 6 the department of inspections and appeals . The department 7 shall collect a fee of fifty dollars for a license. After 8 collection, the fees shall be deposited in the general fund of 9 a special fund in the state treasury . Moneys in the fund are 10 appropriated to the department for the administration of this 11 chapter. A license shall expire one year from date of issue. 12 A license is renewable. 13 2. A person shall not sell or distribute from a home 14 bakery food processing establishment if the home bakery food 15 processing establishment is unlicensed, the license of the 16 home bakery food processing establishment is suspended, or 17 the food fails to meet standards adopted for such food by the 18 department. 19 3. An application for a license under this chapter shall be 20 made upon a form furnished by the department and shall contain 21 the items required by it the department according to rules 22 adopted by the department. 23 4. The department shall regulate, license, and inspect 24 home bakeries according to standards adopted by rule food 25 processing establishments in a manner that is consistent with 26 this chapter . 27 5. The department shall provide for the periodic inspection 28 of a home bakery food processing establishment . The inspector 29 may enter the home bakery food processing establishment at any 30 reasonable hour to make the inspection. The department shall 31 inspect only those areas related to preparing food for sale. 32 6. The department shall regulate and may inspect food 33 prepared at a home bakery according to standards adopted 34 by rule food processing establishment in a manner that is 35 -3- HF 2431 (2) 89 js/ns/md 3/ 11
H.F. 2431 consistent with this chapter . The inspection may occur at any 1 place where the prepared food a homemade food item is created, 2 transported, or stored for sale or resale. 3 7. A home food processing establishment shall affix or label 4 a homemade food item with all of the following information: 5 a. Information to identify the name of the home food 6 processing establishment. 7 b. The common name of the food. 8 c. The ingredients of the homemade food item in descending 9 order of predominance. 10 d. The net quantity of contents. 11 e. For refrigerated time/temperature control for safety 12 foods, an expiration date based on food safety. 13 f. The following statement: “This product was produced at 14 a home food processing establishment.” If the homemade food 15 item contains one or more major food allergens, an additional 16 allergen statement must be included on the label identifying 17 each major allergen contained in the food by the common name of 18 the allergen. 19 8. The department may adopt rules under chapter 17A to 20 administer this chapter. 21 Sec. 4. Section 137D.3, Code 2022, is amended to read as 22 follows: 23 137D.3 Penalty. 24 A person who violates a provision of this chapter , including 25 a standard adopted by departmental rule, relating to home 26 bakeries food processing establishments or prepared foods 27 created homemade food items produced in a home bakery, is 28 guilty of a simple misdemeanor food processing establishment 29 shall be subject to a civil penalty in the amount of one 30 hundred dollars per violation, to be collected by the 31 department . Moneys collected from civil penalties shall be 32 deposited in the special fund referred to in section 137D.2. 33 Each day that the violation continues constitutes a separate 34 offense violation . 35 -4- HF 2431 (2) 89 js/ns/md 4/ 11
H.F. 2431 Sec. 5. Section 137D.4, Code 2022, is amended to read as 1 follows: 2 137D.4 Injunction. 3 A person operating a home bakery food processing 4 establishment or selling prepared foods homemade food items 5 created at a home bakery food processing establishment in 6 violation of a provision of this chapter may be restrained 7 by injunction from further operating that home bakery food 8 processing establishment . If an imminent health hazard exists, 9 the home bakery food processing establishment must cease 10 operation and notify the department . Operation shall not be 11 resumed until authorized by the department. 12 Sec. 6. Section 137D.6, Code 2022, is amended to read as 13 follows: 14 137D.6 Conflicts with state building code. 15 Provisions of this chapter , including standards for home 16 bakeries food processing establishments adopted by the 17 department, in conflict with the state building code, as 18 adopted pursuant to section 103A.7 , shall not apply where the 19 state building code has been adopted or when the state building 20 code applies throughout the state. 21 Sec. 7. Section 137D.8, Code 2022, is amended to read as 22 follows: 23 137D.8 Suspension or revocation of licenses. 24 The department may suspend or revoke a license issued to a 25 person under this chapter if any of the following occurs: 26 1. The person’s home bakery food processing establishment 27 does not conform to a provision of this chapter or a rule 28 adopted pursuant to this chapter . 29 2. The person violates a provision of this chapter or a rule 30 adopted pursuant to this chapter . 31 3. The person conducts an activity constituting a criminal 32 offense in the home bakery food processing establishment and is 33 convicted of a serious misdemeanor or a more serious offense 34 as a result. 35 -5- HF 2431 (2) 89 js/ns/md 5/ 11
H.F. 2431 Sec. 8. Section 137F.1, Code 2022, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 2A. “Cottage food” means the production 3 and sale of food produced at a private residence other than 4 time/temperature control for safety food as provided in section 5 137F.20 and food for resale that is not time/temperature 6 control for safety food. “Cottage food” includes home-processed 7 and home-canned pickles, vegetables, or fruits that have a 8 finished equilibrium pH value of four and six-tenths or lower 9 or a water activity value of eighty-five hundredths or less for 10 which each batch has been measured by a pH meter or a water 11 activity meter and each container that is sold or offered for 12 sale contains the date the food was processed and canned. 13 “Cottage food” does not include any of the following: 14 a. Milk or milk products regulated under chapter 192. 15 b. Meat, meat food products, poultry, or poultry food 16 products regulated under chapter 189A. 17 Sec. 9. Section 137F.1, subsection 8, paragraphs d, e, and 18 f, Code 2022, are amended to read as follows: 19 d. Premises which that are a home bakery pursuant to food 20 processing establishment as defined in chapter 137D . 21 e. Premises where a person operates a farmers market, if 22 unpackaged time/temperature control for safety foods are not 23 sold or distributed from the premises. 24 f. Premises of a residence in which food that is not 25 a time/temperature control for safety food is sold for 26 consumption off the premises to a consumer customer, if the 27 food is labeled to identify the name and address of the person 28 preparing the food and the common name of the food is produced 29 pursuant to section 137F.20 . 30 Sec. 10. NEW SECTION . 137F.20 Cottage food —— requirements. 31 1. Cottage food is exempt from all licensing, permitting, 32 inspection, packaging, and labeling laws of the state if the 33 food is sold and delivered by the producer directly to the 34 consumer, or delivered by mail or an agent of the producer such 35 -6- HF 2431 (2) 89 js/ns/md 6/ 11
H.F. 2431 as an employee. A producer may sell food to the consumer in 1 person, remotely, by telephone, by internet, or by an agent of 2 the producer. 3 2. Cottage food sold pursuant to this section shall be 4 affixed or labeled with all of the following information: 5 a. Information to identify the name and address, phone 6 number, or electronic mail address of the person preparing the 7 food. 8 b. The common name of the food. 9 c. The ingredients of the cottage food in descending order 10 of predominance. 11 d. The following statement: “This product was produced 12 at a residential property that is exempt from state licensing 13 and inspection.” If the cottage food contains one or more 14 major food allergens, an additional allergen statement must be 15 included on the label identifying each major allergen contained 16 in the food by the common name of the allergen. 17 e. If the food is home-processed and home-canned pickles, 18 vegetables, or fruits permitted under this section, the date 19 that the food was processed and canned. 20 3. Compliance with the cottage food exemption provided in 21 this section does not represent compliance with federal law. 22 Sec. 11. Section 210.23, Code 2022, is amended to read as 23 follows: 24 210.23 Exception. 25 Any person engaged in operating a home baking food 26 processing establishment is exempt from the provisions of 27 sections 210.19 through 210.22 . 28 Sec. 12. NEW SECTION . 335.35 Home-based businesses. 29 1. For purposes of this section: 30 a. “Goods” means any merchandise, equipment, products, 31 supplies, or materials. 32 b. “Home-based business” means any business for the 33 manufacture, provision, or sale of goods or services that is 34 owned and operated by the owner or tenant of the residential 35 -7- HF 2431 (2) 89 js/ns/md 7/ 11
H.F. 2431 property on which the business operates. 1 c. “No-impact home-based business” means a home-based 2 business for which all of the following apply: 3 (1) The total number of on-site employees and clients does 4 not exceed the county occupancy limit for the residential 5 property. 6 (2) The business activities are characterized by all of the 7 following: 8 (a) The activities are limited to the sale of lawful goods 9 and services. 10 (b) The activities do not generate on-street parking or a 11 substantial increase in traffic through the residential area. 12 (c) The activities occur inside the residential dwelling or 13 in the yard of the residential property. 14 (d) The activities are not visible from an adjacent property 15 or street. 16 2. The use of a residential property for a home-based 17 business is a permitted use. However, this subsection does not 18 supersede any of the following: 19 a. A deed restriction, covenant, or agreement restricting 20 the use of land. 21 b. A master deed, bylaw, or other document applicable to a 22 common interest ownership community. 23 3. A county shall not prohibit a no-impact home-based 24 business or otherwise require a person to apply, register, or 25 obtain any permit, license, variance, or other type of prior 26 approval from the county to operate a no-impact home-based 27 business. 28 4. A county may establish reasonable regulations on a 29 home-based business if the regulations are narrowly tailored 30 for any of the following purposes: 31 a. The protection of the public health and safety, including 32 rules and regulations related to fire or building codes, health 33 and sanitation, transportation or traffic control, solid or 34 hazardous waste, pollution, or noise control. 35 -8- HF 2431 (2) 89 js/ns/md 8/ 11
H.F. 2431 b. Ensuring that the business is all of the following: 1 (1) Compatible with residential use of the property and 2 surrounding residential use. 3 (2) Secondary to the use of the property as a residence. 4 (3) Complying with state and federal laws and paying 5 applicable taxes. 6 c. Limiting or prohibiting the operation of a home-based 7 business for the purposes of selling alcoholic beverages or 8 illegal drugs, operating or maintaining a structured sober 9 living home, creating or selling pornography, providing nude 10 or topless dancing, or operating any other adult-oriented 11 business. 12 5. A county shall not require as a condition of operating a 13 home-based business that the property be rezoned for commercial 14 use or that the business owner install or equip fire sprinklers 15 in a single-family detached residential dwelling or any 16 residential dwelling with not more than two dwelling units. 17 6. In any proceeding alleging that a county regulation 18 does not comply with this section, the county that enacted the 19 regulation must establish by clear and convincing evidence that 20 the regulation complies with this section. 21 Sec. 13. NEW SECTION . 414.33 Home-based businesses. 22 1. For purposes of this section: 23 a. “Goods” means any merchandise, equipment, products, 24 supplies, or materials. 25 b. “Home-based business” means any business for the 26 manufacture, provision, or sale of goods or services that is 27 owned and operated by the owner or tenant of the residential 28 property on which the business operates. 29 c. “No-impact home-based business” means a home-based 30 business for which all of the following apply: 31 (1) The total number of on-site employees and clients 32 does not exceed the city occupancy limit for the residential 33 property. 34 (2) The business activities are characterized by all of the 35 -9- HF 2431 (2) 89 js/ns/md 9/ 11
H.F. 2431 following: 1 (a) The activities are limited to the sale of lawful goods 2 and services. 3 (b) The activities do not generate on-street parking or a 4 substantial increase in traffic through the residential area. 5 (c) The activities occur inside the residential dwelling or 6 in the yard of the residential property. 7 (d) The activities are not visible from an adjacent property 8 or street. 9 2. The use of a residential property for a home-based 10 business is a permitted use. However, this subsection does not 11 supersede any of the following: 12 a. A deed restriction, covenant, or agreement restricting 13 the use of land. 14 b. A master deed, bylaw, or other document applicable to a 15 common interest ownership community. 16 3. A city shall not prohibit a no-impact home-based business 17 or otherwise require a person to apply, register, or obtain any 18 permit, license, variance, or other type of prior approval from 19 the city to operate a no-impact home-based business. 20 4. A city may establish reasonable regulations on a 21 home-based business if the regulations are narrowly tailored 22 for any of the following purposes: 23 a. The protection of the public health and safety, including 24 rules and regulations related to fire or building codes, health 25 and sanitation, transportation or traffic control, solid or 26 hazardous waste, pollution, or noise control. 27 b. Ensuring that the business is all of the following: 28 (1) Compatible with residential use of the property and 29 surrounding residential use. 30 (2) Secondary to the use of the property as a residence. 31 (3) Complying with state and federal laws and paying 32 applicable taxes. 33 c. Limiting or prohibiting the operation of a home-based 34 business for the purposes of selling alcoholic beverages or 35 -10- HF 2431 (2) 89 js/ns/md 10/ 11
H.F. 2431 illegal drugs, operating or maintaining a structured sober 1 living home, creating or selling pornography, providing nude 2 or topless dancing, or operating any other adult-oriented 3 business. 4 5. A city shall not require as a condition of operating a 5 home-based business that the property be rezoned for commercial 6 use or that the business owner install or equip fire sprinklers 7 in a single-family detached residential dwelling or any 8 residential dwelling with not more than two dwelling units. 9 6. In any proceeding alleging that a city regulation 10 does not comply with this section, the city that enacted the 11 regulation must establish by clear and convincing evidence that 12 the regulation complies with this section. 13 -11- HF 2431 (2) 89 js/ns/md 11/ 11