Bill Text: IA HF2682 | 2023-2024 | 90th General Assembly | Introduced


Bill Title: A bill for an act providing for the licensing of food processing plants, including certain operations located on the premises of farms or private residences, and providing fees.(Formerly HF 2444.)

Spectrum: Committee Bill

Status: (Engrossed - Dead) 2024-04-11 - Subcommittee: Driscoll, Brown, and Winckler. S.J. 821. [HF2682 Detail]

Download: Iowa-2023-HF2682-Introduced.html
House File 2682 - Introduced HOUSE FILE 2682 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2444) A BILL FOR An Act providing for the licensing of food processing plants, 1 including certain operations located on the premises of 2 farms or private residences, and providing fees. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5780HV (2) 90 da/ns
H.F. 2682 Section 1. Section 137F.1, subsection 10, Code 2024, is 1 amended to read as follows: 2 10. a. “Food processing plant” means a any of the 3 following: 4 (1) A commercial operation that manufactures, packages, 5 labels, or stores food for human consumption and does not 6 provide food directly to a consumer for distribution or sale on 7 a wholesale basis . 8 (2) An operation located on the premises of a farm or 9 private residence that stores officially processed packaged 10 meat or poultry raised by the licensee and offered for sale on 11 a wholesale or retail basis. 12 b. “Food processing plant” does not include any of the 13 following: 14 a. (1) A premises covered by a class “A” beer permit as 15 provided in chapter 123 . 16 b. (2) A premises of a residence in which honey is stored; 17 prepared; packaged, including by placement in a container; 18 labeled; or from which honey is distributed. 19 c. (3) A premises covered by a class “A” wine permit as 20 provided in chapter 123 . 21 d. (1) (4) (a) The premises of a raw milk dairy where raw 22 milk is produced, processed, labeled, marketed, or distributed 23 by a raw milk producer in compliance with chapter 195 . 24 (2) (b) A premises of a raw milk dairy where a raw milk 25 product or raw milk dairy product is manufactured, labeled, 26 marketed, or distributed by a raw milk producer in compliance 27 with chapter 195 . 28 Sec. 2. Section 137F.6, subsection 1, paragraph g, Code 29 2024, is amended by striking the paragraph and inserting in 30 lieu thereof the following: 31 g. (1) Except as provided in subparagraph (2), for a food 32 processing plant, the annual license fee shall correspond to 33 the annual gross food and beverage sales of the food processing 34 plant, as follows: 35 -1- LSB 5780HV (2) 90 da/ns 1/ 3
H.F. 2682 (a) For annual gross sales of less than two hundred thousand 1 dollars, one hundred fifty dollars. 2 (b) For annual gross sales of at least two hundred thousand 3 dollars but less than two million dollars, three hundred 4 dollars. 5 (c) For annual gross sales of two million dollars or more, 6 five hundred dollars. 7 (2) For a food processing plant operating on the premises of 8 a farm or private residence that stores officially processed 9 packaged meat or poultry derived from animals raised by the 10 licensee and offered for sale on a wholesale or retail basis, 11 the license fee is seventy-five dollars. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 BACKGROUND. Code chapter 137F regulates businesses engaged 16 in commercial food preparation and sale. The regulations are 17 administered and enforced by the department of inspections, 18 appeals, and licensing. One such regulated establishment is 19 a food processing plant (plant) that manufactures, packages, 20 labels, or stores food for human consumption but does not 21 provide food directly to a consumer on a retail basis (Code 22 section 137F.1). A plant must be licensed by the department 23 (Code sections 137F.3 and 137F.4) and pay an associated license 24 fee (Code section 137F.6). In 2023, the general assembly 25 enacted legislation that revised the method used to calculate 26 annual license fees imposed on plants (2023 Iowa Acts, chapter 27 82). The fee amount is based on a series of increasing steps 28 calculated using the plant’s gross annual sales during the 29 prior year. The first step is $75 for gross sales up to but not 30 including $50,000, the second step is $150 for gross sales of 31 $50,000 or more but less than $200,000, the third step is $300 32 for gross sales of $200,000 or more but less than $2 million, 33 and the fourth step is $500 for gross sales of $2 million or 34 more (Code section 137F.6). 35 -2- LSB 5780HV (2) 90 da/ns 2/ 3
H.F. 2682 BILL’S PROVISIONS —— EXPANDED DESCRIPTION OF FOOD PROCESSING 1 PLANTS. This bill provides that a plant includes an operation 2 located on the premises of a farm or private residence that 3 stores officially processed packaged meat or poultry raised 4 by the licensee and offered for sale on either a wholesale or 5 retail basis. 6 BILL’S PROVISIONS —— LICENSE FEES. The bill also revises 7 the license fee schedule for plants. It distinguishes between 8 two categories of plants: the first is a general category 9 and the second is a category of plant where meat is processed 10 on the premises of a farm or private residence. Under the 11 general category, the fee amount is based on a series of three 12 increasing steps calculated again using the plant’s gross 13 annual sales. For a plant with annual gross sales of less 14 than $200,000, the fee amount is $150; for a plant with annual 15 gross sales of at least $200,000 but less than $2 million, the 16 fee amount is $300; and for a plant with annual gross sales of 17 $2 million or more, the fee amount is $500. Under the second 18 category, the fee amount is a flat $75. 19 -3- LSB 5780HV (2) 90 da/ns 3/ 3
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