HF 2767 — A bill for an act providing for the sale and distribution of certain food, providing for fees, making penalties applicable, and including effective date provisions.

Section 195.1, Code 2026, is amended by adding the following new subsection:

NEW SUBSECTION .

3A.

“Inherent risk” means any of the following:

a.

The potential presence of a naturally occurring harmful bacterium or other pathogen that, if present in raw milk, could, when consumed by an individual, directly cause the individual to suffer injury, illness, or death, notwithstanding that the raw milk was produced, processed, kept for storage, marketed, or distributed in compliance with this chapter.

b.

The potential presence of a naturally occurring harmful bacterium or other pathogen that, if present in a raw milk product or raw milk dairy product, could, when consumed by an individual, directly cause the individual to suffer injury, illness, or death, notwithstanding that the raw milk product or raw milk dairy product was manufactured, kept for storage, marketed, or distributed in compliance with this chapter.

Sec.

7.

Section 195.6, subsection 3, Code 2026, is amended to read as follows:

3.

a.

Each twelve-month period, a licensed veterinarian must examine each dairy animal maintained at the raw milk producer’s raw milk dairy to determine the dairy animal’s health status.

The examination must at least include a blood test for common diseases afflicting the type of dairy animal LSB 6675HV (3) 91 -4- da/js 4/13 H.F.

2767 being examined.

b.

An examination of a dairy animal conducted by a licensed veterinarian under paragraph “a” shall not be construed to apply to the quality or safety of any raw milk product, or raw milk dairy product, manufactured at the raw milk dairy.

Sec.

8.

Section 195.8, subsection 1, paragraph c, Code 2026, is amended to read as follows:

c.

(1) The Except as provided in subparagraph (2), the raw milk producer shall distribute the raw milk directly to the individual at the raw milk dairy or to a location specified by the individual.

However, a (2) A person shall not deliver the raw milk to a place of business where food or food items are distributed on a retail basis, including but not limited to a home food processing establishment regulated under chapter 137D or a food establishment or farmers market regulated under chapter 137F.

However, this subparagraph does not prevent any of the following:

(a) A producer from distributing raw milk at a home food processing establishment located on the premises of the producer’s raw milk dairy as provided in section 137D.2A.

(b) A producer from distributing raw milk at a food establishment located on the premises of the producer’s raw milk dairy as provided in section 137F.8B.

(3) The raw milk shall only be used for consumption by the individual, members of the individual’s household, and the individual’s nonpaying guests or nonpaying employees.

Sec.

9.

Section 195.8, subsection 2, paragraph c, Code 2026, is amended to read as follows:

c.

(1) The Except as provided in subparagraph (2), the raw milk producer shall distribute the raw milk product or raw milk dairy product directly to the individual at the raw milk dairy or to a location specified by the individual.

However, a (2) A person shall not deliver the raw milk product, or raw milk dairy product, to a place of business where food or LSB 6675HV (3) 91 -5- da/js 5/13 H.F.

2767 a food item is distributed on a retail basis, including but not limited to a home food processing establishment regulated under chapter 137D or a food establishment or farmers market regulated under chapter 137F.

However, this subparagraph does not prevent any of the following:

(a) A producer from distributing a raw milk product, or a raw milk dairy product, at a home food processing establishment located on the premises of the producer’s raw milk dairy as provided in section 137D.2A.

(b) A producer from distributing a raw milk product, or a raw milk dairy product, at a food establishment located on the premises of the producer’s raw milk dairy as provided in section 137F.8B.

(3) The raw milk product or raw milk dairy product shall only be used for consumption by the individual, members of the individual’s household, or the individual’s nonpaying guests or nonpaying employees.

Sec.

10.

Section 195.9, Code 2026, is amended to read as follows:

195.9 Labeling containers holding raw milk or associated products.

1.

A raw milk producer who distributes raw milk, or a manufactured raw milk product or raw milk dairy product, shall label the container holding the raw milk, or the manufactured raw milk product or raw milk dairy product.

The label shall be permanently affixed to the container.

The words on the label shall be printed using upper case letters in at least twelve point boldface type.

If the container includes a main informational or advertising panel, the label shall be included as part of the panel.

2.

a.

For a container holding raw milk, or a raw milk product or raw dairy product, the label shall state the following:

Notice to Consumers Warning This container holds raw milk, or an associated product, LSB 6675HV (3) 91 -6- da/js 6/13 H.F.

2767 including a raw milk product or a raw milk dairy product, that is not subject to state inspection or other public health regulations that require pasteurization and grading.

The raw milk or associated product may contain a harmful bacterium or other pathogen.

Under Iowa Code section 195.9A, you are assuming liability for any inherent risk associated with consuming the raw milk or associated product.

b.

For a container holding a raw milk product or raw milk dairy product, the label shall state the following:

Notice to Consumers This container holds a raw milk product or raw milk dairy product that is not subject to state inspection or other public health regulations that require pasteurization and grading.

3.

A raw milk producer who distributes raw milk, or a raw milk producer who manufactures a raw milk product or raw milk dairy product, shall post a notice described in subsection 2 on the premises of the milk producer’s raw milk dairy.

The raw milk producer shall post the notice at each point of distribution, including but not limited to any food processing establishment or food establishment located on the premises of the raw milk dairy as provided in this chapter and section 137D.2A or 137F.8B.

Sec.

11.

NEW SECTION.

195.9A Civil liability.

1.

a.

Except as provided in paragraph “b”, a person who produces, processes, keeps for storage, markets, or distributes raw milk originating at a raw milk producer’s raw milk dairy is not liable for an injury, illness, or death suffered by an individual that was directly caused by the individual consuming the raw milk and thereby assuming the inherent risk of consuming raw milk.

b.

Paragraph “a” does not apply if any of the following apply:

(1) The raw milk was not produced, processed, kept for storage, marketed, or distributed in compliance with this chapter.

LSB 6675HV (3) 91 -7- da/js 7/13 H.F.

2767 (2) A person described in paragraph “a” acted, or omitted to act, in a manner that constituted gross negligence, recklessness, willful or wanton misconduct, or intentional wrongdoing.

2.

a.

Except as provided in paragraph “b”, a person who manufactures, keeps for storage, markets, or distributes a raw milk product or a raw milk dairy product originating at the raw milk producer’s raw milk dairy is not liable for an injury, illness, or death suffered by an individual that was directly caused by the individual consuming the raw milk and thereby assuming the inherent risk of consuming a raw milk product or raw milk dairy product.

b.

Paragraph “a” does not apply if any of the following apply:

(1) The raw milk product or raw milk dairy product was not manufactured, kept for storage, marketed, or distributed in compliance with this chapter.

(2) A person described in paragraph “a” acted, or omitted to act, in a manner that constituted gross negligence, recklessness, willful or wanton misconduct, or intentional wrongdoing.

DIVISION IV RULEMAKING AND EFFECTIVE DATE Sec.

12.

The rules shall be effectiveHF immediately2767 upon(4) filing91 unless-2- ada/js/md later2/3 dateH.F. is specified in the rules.

2767 effective immediately upon filing unless a later date is specified in the rules.

LSBSec. 6675HV (3) 91 -8- da/js 8/13 H.F.

27675. Sec.

13.

EXPLANATIONHF The2767 inclusion(4) of91 this-3- explanationda/js/md does3/3 not constitute agreement with the explanation’s substance by the members of the general assembly.

HOME FOOD ESTABLISHMENTS —— BACKGROUND.

Under Code chapter 137F, the department of inspections, appeals, and licensing (DIAL) regulates food establishments that provide food for sale on a retail basis, including grocery stores and restaurants (see Code section 137F.3).

A food establishment may also be regulated by another regulated authority that is a political subdivision (referred to as a municipal corporation) under contract with DIAL.

Generally, a food establishment is subject to certain administrative requirements, including licensing and the payment of an associated licensing fee (Code sections 137F.5, 137F.7, and 137F.6), and inspections (Code sections 137F.9, 137F.10, 137F.11, and 137F.11A).

A food establishment must comply with a number of requirements that apply to indoor facilities, including those relating to plumbing (Code section 137F.12), water and waste treatment (Code section 137F.13), toilets and lavatories (Code section 137F.14), and fire safety (Code section 137F.15).

A person who does not operate with a valid license is subject to a civil penalty of up to twice the amount of the annual license fee (Code section 137F.9).

A food establishment operating in violation of the Code chapter may be enjoined from further operation (Code section 137F.18).

HOME FOOD PROCESSING ESTABLISHMENTS —— BACKGROUND.

Under Code chapter 137D, a home food processing establishment is a business operating on the premises of a residence in which homemade food items are produced for sale or resale, for consumption off premises, if the business has gross annual sales of less than $50,000.

The home food processing establishment is required to be licensed and inspected by DIAL (Code section 137D.2).

A home food processing establishment is subject to regulations governing time/temperature control for LSB 6675HV (3) 91 -9- da/js 9/13 H.F.

2767 safety food.

A person who violates the Code chapter is subject to a civil penalty of $100 per violation (Code section 137D.3).

A home food processing establishment operating in violation of the Code chapter may be enjoined from further operation (Code section 137D.4).

TEMPORARY FOOD ESTABLISHMENTS AND EVENTS —— BACKGROUND.

A temporary food establishment is defined as a food establishment that operates for not more than 14 consecutive days in conjunction with a single event (Code section 137F.1).

“Event” is defined as a significant occurrence or happening that is (1) sponsored by a civic, business, governmental, community, or veterans organization, or (2) an athletic contest (Code section 137F.1).

A person conducting an event must obtain a license from the appropriate regulatory authority (Code section 137F.5).

The license fee for a temporary food establishment for a single event is $50 (Code section 137F.6).

FARM-TO-TABLE EVENTS —— BILL’S PROVISIONS.

This bill includes a farm-to-table event as a new form of event regulated as a temporary food establishment (amended Code section 137F.1).

A farm-to-table event must be located on real estate classified as agricultural property for property tax purposes (see 701 IAC 102).

The person conducting the event must hold a legal interest in the agricultural property.

The event must (1) include a meal prepared on the Iowa farm or off site and transported to the farm by a food establishment operating as a caterer, and (2) be conducted outdoors or within a structure located on the Iowa farm.

Finally, at least 50 percent of the meal must be derived from an agricultural product produced by persons participating in the choose Iowa promotional program as provided in Code chapter 187.

COTTAGE FOODS —— BACKGROUND.

A cottage food is a food produced at a private residence that is not a time/temperature control for safety food (Code section 137F.1).

A cottage food is exempt from all licensing, permitting, inspection, packaging, and labeling laws of the state if the food is sold LSB 6675HV (3) 91 -10- da/js 10/13 H.F.

2767 and delivered by the producer directly to the consumer or delivered by mail or by an agent of the producer (Code section 137F.20).

Cottage food sold in such manner must be affixed or labeled with information to identify the name and contact information of the person preparing the food, the common name of the food, the ingredients, a disclaimer, and, if the food is home-processed and home-canned pickles, vegetables, or fruits, the date that the food was processed and canned.

COTTAGE FOODS —— BILL’S PROVISIONS.

The bill provides that a food establishment such as a grocery store cannot offer for sale or sell a cottage food unless certain conditions are satisfied (new Code section 137F.22).

The cottage food producer or producer’s employee must distribute the cottage food directly to the consumer.

The food establishment cannot intermingle the cottage food with food that is not cottage food.

The food establishment cannot store the cottage food with other food on the same shelf or as part of the same display.

The cottage food must be packaged and labeled.

Finally, the food establishment must post a conspicuous notice at the location where the cottage food is offered for sale or sold stating that the cottage food was produced at a residential property exempt from state licensing and inspection.

The bill also provides that a farm-to-table event may serve cottage food that is produced on the farm as part of a farm-to-table event.

RAW MILK AND ASSOCIATED PRODUCTS —— BACKGROUND.

Under Code chapter 195, a milk producer may elect to produce, process, market, or distribute raw milk, or to use the raw milk to manufacture, market, or distribute a raw milk product or raw milk dairy product (raw milk or associated product) (Code chapter 190).

In order to make this election, the raw milk producer must comply with a number of requirements relating to the health of the dairy herd.

A licensed veterinarian must, each 12-month period, examine each dairy animal maintained at a raw milk dairy to determine the dairy animal’s health status LSB 6675HV (3) 91 -11- da/js 11/13 H.F.

2767 (Code section 195.6).

Other requirements apply to labeling and distribution (Code sections 195.8 and 195.9).

A label must be affixed to a container holding raw milk or an associated product notifying consumers that its contents are not subject to state inspection or other public health regulations that require pasteurization and grading.

Generally, raw milk or its associated products must be distributed directly to an individual customer at the raw milk dairy or to a location specified by the customer.

However, a person cannot deliver the raw milk or associated product to a place of business where food or food items are distributed on a retail basis, including but not limited to a home food processing establishment, food establishment, or farmers market.

RAW MILK AND ASSOCIATED PRODUCTS —— BILL’S PROVISIONS —— RAW MILK DAIRY THAT IS A HOME FOOD PROCESSING ESTABLISHMENT OR FOOD ESTABLISHMENT.

The bill in part applies to a (1) home food processing establishment, or (2) food establishment that sells or otherwise distributes food for off-premises consumption.

Specifically, the bill provides that such an establishment may market, advertise for sale, offer for sale, sell, or otherwise distribute raw milk, or an associated product, on the premises of the raw milk dairy where the raw milk was produced and processed or the associated product was manufactured (amended Code sections 137D.2A, 137F.8B, and 195.8).

RAW MILK AND ASSOCIATED PRODUCTS —— BILL’S PROVISIONS —— VETERINARIAN’S EXAMINATION OF DAIRY ANIMALS —— LIABILITY.

The bill provides that an examination of a dairy animal conducted by a licensed veterinarian is not to be construed to apply to the quality or safety of any raw milk product, or raw milk dairy product, manufactured at the raw milk dairy (amended Code section 195.6).

RAW MILK AND ASSOCIATED PRODUCTS —— BILL’S PROVISIONS —— TERM “INHERENT RISK” —— NOTICE AND LIABILITY.

The bill defines the term “inherent risk” as the potential presence of a naturally occurring harmful bacterium or other pathogen that, LSB 6675HV (3) 91 -12- da/js 12/13 H.F.

2767 if present in raw milk, or an associated product, could, when consumed by an individual, directly cause the individual to suffer injury, illness, or death (amended Code section 195.1).

The bill revises the notice provision by adding that a consumer assumes any inherent risk associated with consuming raw milk or an associated product (amended Code section 195.9).

The bill applies to a person who produces, processes, keeps for storage, markets, or distributes raw milk originating at a raw milk producer’s raw milk dairy and to a person who manufactures, keeps for storage, markets, or distributes an associated product originating at the raw milk dairy (new Code section 195.9A).

In each case, the person is not civilly liable for an injury, illness, or death suffered by an individual that was directly caused by the individual consuming the raw milk or associated product who thereby has assumed the inherent risk.

Several exceptions apply:

(1) the raw milk or associated product was not produced and processed, or manufactured, kept for storage, marketed, or distributed in compliance with Code chapter 195;

or (2) the person acted, or omitted to act, in a manner that constituted gross negligence, recklessness, willful or wanton misconduct, or intentional wrongdoing.

EMERGENCY RULES.

DIAL must adopt rules to implement the bill on an emergency basis, which rules are to take effect within 180 days of the effective date of the bill.

EFFECTIVE DATE.

The bill takes effect upon enactment.

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