Bill Text: IA SF2256 | 2023-2024 | 90th General Assembly | Introduced


Bill Title: A bill for an act establishing license fees for food processing plants.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2024-02-12 - Subcommittee: Driscoll, Schultz, and Winckler. S.J. 269. [SF2256 Detail]

Download: Iowa-2023-SF2256-Introduced.html
Senate File 2256 - Introduced SENATE FILE 2256 BY GREEN A BILL FOR An Act establishing license fees for food processing plants. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 5780XS (2) 90 da/ns
S.F. 2256 Section 1. Section 137F.6, subsection 1, paragraph g, Code 1 2024, is amended by striking the paragraph and inserting in 2 lieu thereof the following: 3 g. (1) Except as provided in subparagraph (2), for a food 4 processing plant, the annual license fee shall correspond to 5 the annual gross food and beverage sales of the food processing 6 plant, as follows: 7 (a) For annual gross sales of less than two hundred thousand 8 dollars, one hundred fifty dollars. 9 (b) For annual gross sales of at least two hundred thousand 10 dollars but less than two million dollars, three hundred 11 dollars. 12 (c) For annual gross sales of two million dollars or more, 13 five hundred dollars. 14 (2) For a food processing plant operating on the premises of 15 a farm or private residence that stores officially processed, 16 packaged meat or poultry derived from animals raised by the 17 licensee and offered for sale directly to consumers or to 18 another business, the license fee is seventy-five dollars. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 BACKGROUND. Code chapter 137F regulates businesses engaged 23 in commercial food preparation and sale. The regulations are 24 administered and enforced by the department of inspections, 25 appeals, and licensing. One such regulated establishment is 26 a food processing plant (plant) that manufactures, packages, 27 labels, or stores food for human consumption but does not 28 provide food directly to a consumer (Code section 137F.1). In 29 2023, the general assembly enacted legislation that revised the 30 method used to calculate annual license fees imposed on plants 31 (2023 Iowa Acts, chapter 82). The fee amount is based on a 32 series of increasing steps calculated using the plant’s gross 33 annual sales during the prior year. The first step is $75 for 34 gross sales up to but not including $50,000, the second step is 35 -1- LSB 5780XS (2) 90 da/ns 1/ 2
S.F. 2256 $150 for gross sales of $50,000 or more but less than $200,000, 1 the third step is $300 for gross sales of $200,000 or more but 2 less than $2 million, and the fourth step is $500 for gross 3 sales of $2 million or more (Code section 137F.6). 4 BILL’S PROVISIONS. This bill revises the license fee 5 schedule for plants. It distinguishes between two categories 6 of plants: the first is a general category and the second is 7 a category of plant where meat is processed on the premises 8 of a farm or private residence. Under the general category, 9 the fee amount is based on a series of three increasing steps 10 calculated again using the plant’s gross annual sales. For a 11 plant with annual gross sales of less than $200,000, the fee 12 amount is $150; for a plant with annual gross sales of at least 13 $200,000 but less than $2 million, the fee amount is $300; and 14 for a plant with annual gross sales of $2 million or more, the 15 fee amount is $500. Under the second category, the fee amount 16 is a flat $75. 17 -2- LSB 5780XS (2) 90 da/ns 2/ 2
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