Providing for the licensing of food processing plants, including certain operations located on the premises of farms or private residences, and providing fees

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.1).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.6).F. 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.