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Senate
File
9
-
Introduced
SENATE
FILE
9
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
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Section
1.
Section
137F.6,
subsection
1,
paragraph
g,
Code
1
2025,
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
revised
the
method
used
to
calculate
30
annual
license
fees
imposed
on
plants
(2023
Iowa
Acts,
chapter
31
82).
The
fee
amount
is
based
on
a
series
of
increasing
steps
32
calculated
using
the
plant’s
gross
annual
sales
during
the
33
prior
year.
The
first
step
is
$75
for
gross
sales
up
to
but
not
34
including
$50,000,
the
second
step
is
$150
for
gross
sales
of
35
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$50,000
or
more
but
less
than
$200,000,
the
third
step
is
$300
1
for
gross
sales
of
$200,000
or
more
but
less
than
$2
million,
2
and
the
fourth
step
is
$500
for
gross
sales
of
$2
million
or
3
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
7
is
a
category
of
plant
where
meat
or
poultry
is
processed
8
on
the
premises
of
a
farm
or
private
residence.
Under
the
9
general
category,
the
fee
amount
is
based
on
a
series
of
three
10
increasing
steps
calculated
again
using
the
plant’s
gross
11
annual
sales.
For
a
plant
with
annual
gross
sales
of
less
12
than
$200,000,
the
fee
amount
is
$150;
for
a
plant
with
annual
13
gross
sales
of
at
least
$200,000
but
less
than
$2
million,
the
14
fee
amount
is
$300;
and
for
a
plant
with
annual
gross
sales
of
15
$2
million
or
more,
the
fee
amount
is
$500.
Under
the
second
16
category,
the
fee
amount
is
a
flat
$75.
17
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