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Bill > HF32


IA HF32

IA HF32
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.(See HF 179, HF 1006.)


summary

Introduced
01/14/2025
In Committee
01/14/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

BACKGROUND. Code chapter 137F regulates businesses engaged in commercial food preparation and sale. The regulations are administered and enforced by the department of inspections, appeals, and licensing. One such regulated establishment is a food processing plant (plant) that manufactures, packages, labels, or stores food for human consumption but does not provide food directly to a consumer on a retail basis (Code section 137F.1). A plant must be licensed by the department (Code sections 137F.3 and 137F.4) and pay an associated license fee (Code section 137F.6). In 2023, the general assembly enacted legislation that revised the method used to calculate annual license fees imposed on plants (2023 Iowa Acts, chapter 82). The fee amount is based on a series of increasing steps calculated using the plant’s gross annual sales during the prior year. The first step is $75 for gross sales up to but not including $50,000, the second step is $150 for gross sales of $50,000 or more but less than $200,000, the third step is $300 for gross sales of $200,000 or more but less than $2 million, and the fourth step is $500 for gross sales of $2 million or more (Code section 137F.6). BILL’S PROVISIONS —— EXPANDED DESCRIPTION OF FOOD PROCESSING PLANTS. This bill provides that a plant includes an operation located on the premises of a farm or private residence that stores officially processed packaged meat or poultry raised by the licensee and offered for sale on either a wholesale or retail basis. BILL’S PROVISIONS —— LICENSE FEES. The bill also revises the license fee schedule for plants. It distinguishes between two categories of plants: the first is a general category and the second is a category of plant where meat is processed on the premises of a farm or private residence. Under the general category, the fee amount is based on a series of three increasing steps calculated again using the plant’s gross annual sales. For a plant with annual gross sales of less than $200,000, the fee amount is $150; for a plant with annual gross sales of at least $200,000 but less than $2 million, the fee amount is $300; and for a plant with annual gross sales of $2 million or more, the fee amount is $500. Under the second category, the fee amount is a flat $75.

AI Summary

This bill expands the definition of a food processing plant and modifies the licensing fee structure for such establishments. Specifically, the bill now includes operations located on farms or private residences that store officially processed packaged meat or poultry raised by the licensee and offered for sale on wholesale or retail bases as part of the food processing plant category. The licensing fee structure is revised to create two distinct fee categories: a general category and a category for plants operating on farms or private residences. For the general category, the license fees are tiered based on annual gross sales - $150 for sales under $200,000, $300 for sales between $200,000 and $2 million, and $500 for sales of $2 million or more. For food processing plants operating on farms or private residences that process and store their own meat or poultry, a flat annual license fee of $75 is established. The bill maintains existing exemptions for certain types of food-related operations, such as beer and wine permit premises, honey storage operations, and raw milk dairies, while expanding the regulatory framework for food processing plants to include more small-scale and farm-based operations.

Committee Categories

Agriculture and Natural Resources

Sponsors (1)

Last Action

Withdrawn. H.J. 1073. (on 04/28/2025)

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