Introduced Version HOUSE BILL No. 1149 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 16-18-2; IC 16-42. Synopsis: Home based vendors. Specifies the requirements for the preparation and sale of food products as a home based vendor. Reorganizes provisions concerning the sale of certain food products by an individual vendor at a farmers' market or roadside stand. Requires an individual who sells rabbits at a farmers' market or roadside stand to comply with certain requirements. Makes conforming changes. Effective: July 1, 2022. Lehe, Clere, Davisson J., Bauer M January 6, 2022, read first time and referred to Committee on Agriculture and Rural Development. 2022 IN 1149—LS 6652/DI 147 Introduced Second Regular Session of the 122nd General Assembly (2022) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2021 Regular Session of the General Assembly. HOUSE BILL No. 1149 A BILL FOR AN ACT to amend the Indiana Code concerning health. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 16-18-2-137, AS AMENDED BY P.L.144-2015, 2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 JULY 1, 2022]: Sec. 137. (a) "Food establishment", for purposes of 4 IC 16-42-5, and IC 16-42-5.2, and IC 16-42-5.3, means any building, 5 room, basement, vehicle of transportation, cellar, or open or enclosed 6 area occupied or used for handling food. 7 (b) The term does not include the following: 8 (1) A dwelling where food is prepared on the premises by the 9 occupants, free of charge, for their consumption or for 10 consumption by their guests. 11 (2) A gathering of individuals at a venue of an organization that 12 is organized for educational purposes in a nonpublic educational 13 setting or for religious purposes, if: 14 (A) the individuals separately or jointly provide or prepare, 15 free of charge, and consume their own food or that of others 16 attending the gathering; and 17 (B) the gathering is for a purpose of the organization. 2022 IN 1149—LS 6652/DI 147 2 1 Gatherings for the purpose of the organization include funerals, 2 wedding receptions, christenings, bar or bat mitzvahs, baptisms, 3 communions, and other events or celebrations sponsored by the 4 organization. 5 (3) A vehicle used to transport food solely for distribution to the 6 needy, either free of charge or for a nominal donation. 7 (4) A private gathering of individuals who separately or jointly 8 provide or prepare and consume their own food or that of others 9 attending the gathering, regardless of whether the gathering is 10 held on public or private property. 11 (5) Except for food prepared by a for-profit entity, a venue of the 12 sale of food prepared for an organization: 13 (A) that is organized for: 14 (i) religious purposes; or 15 (ii) educational purposes in a nonpublic educational setting; 16 (B) that is exempt from taxation under Section 501 of the 17 Internal Revenue Code; and 18 (C) that offers the food for sale to the final consumer at an 19 event held for the benefit of the organization; 20 unless the food is being provided in a restaurant or a cafeteria 21 with an extensive menu of prepared foods. 22 (6) Except for food prepared by a for-profit entity, an Indiana 23 nonprofit organization that: 24 (A) is organized for civic, fraternal, veterans, or charitable 25 purposes; 26 (B) is exempt from taxation under Section 501 of the Internal 27 Revenue Code; and 28 (C) offers food for sale to the final consumer at an event held 29 for the benefit of the organization; 30 if the events conducted by the organization take place for not 31 more than fifteen (15) days in a calendar year. 32 (7) An individual vendor of a farmer's market or roadside stand if 33 the individual meets the requirements of IC 16-42-5-29. 34 (8) (7) The holder of a farm winery permit under IC 7.1-3-12-5 or 35 a brewer's permit under IC 7.1-3-2-7(5) if the requirements of 36 IC 16-42-5-30 are met. 37 (8) A home based vendor or an individual vendor who sells a 38 food product under IC 16-42-5.3. 39 SECTION 2. IC 16-18-2-287.8, AS ADDED BY P.L.86-2009, 40 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 41 JULY 1, 2022]: Sec. 287.8. (a) "Potentially hazardous food product", 42 for purposes of IC 16-42-5-29, IC 16-42-5.3, means a food that is 2022 IN 1149—LS 6652/DI 147 3 1 natural or synthetic and requires temperature control because it is in a 2 form capable of supporting any of the following: 3 (1) The rapid and progressive growth of infectious or toxigenic 4 microorganisms. 5 (2) The growth and toxin production of Clostridium botulinum. 6 (3) In raw shell eggs, the growth of Salmonella enteritidis. 7 (b) The term includes the following: 8 (1) A food of animal origin that is raw or heat treated. 9 (2) A food of plant origin that is heat treated or consists of raw 10 seed sprouts. 11 (3) Cut melons. 12 (4) Garlic-in-oil mixtures that are not modified in a way that 13 results in mixtures that do not support growth described in 14 subsection (a). 15 SECTION 3. IC 16-42-5-29 IS REPEALED [EFFECTIVE JULY 1, 16 2022]. Sec. 29. (a) Except as provided in subsection (h), this section 17 applies to an individual vendor of a farmers market or roadside stand. 18 (b) As used in this section, "end consumer" means a person who is 19 the last person to purchase any food product and who does not resell 20 the food product. 21 (c) An individual vendor of a farmers market or roadside stand is 22 not considered to be a food establishment and is exempt from the 23 requirements of this title that apply to food establishments if the 24 individual vendor's food product: 25 (1) is made, grown, or raised by an individual at the individual's 26 primary residence, property owned by the individual, or property 27 leased by the individual; 28 (2) is not a potentially hazardous food product; 29 (3) is prepared by an individual who practices proper sanitary 30 procedures, including: 31 (A) proper hand washing; 32 (B) sanitation of the container or other packaging in which the 33 food product is contained; and 34 (C) safe storage of the food product; 35 (4) is not resold; and 36 (5) includes a label that contains the following information: 37 (A) The name and address of the producer of the food product. 38 (B) The common or usual name of the food product. 39 (C) The ingredients of the food product, in descending order 40 by predominance by weight. 41 (D) The net weight and volume of the food product by 42 standard measure or numerical count. 2022 IN 1149—LS 6652/DI 147 4 1 (E) The date on which the food product was processed. 2 (F) The following statement in at least 10 point type: "This 3 product is home produced and processed and the production 4 area has not been inspected by the state department of health.". 5 (d) An individual vendor who meets the requirements in subsection 6 (c) is subject to food sampling and inspection if: 7 (1) the state department determines that the individual vendor's 8 food product is: 9 (A) misbranded under IC 16-42-2-3; or 10 (B) adulterated; or 11 (2) a consumer complaint has been received by the state 12 department. 13 (e) If the state department has reason to believe that an imminent 14 health hazard exists with respect to an individual vendor's food 15 product, the state department may order cessation of production and 16 sale of the food product until the state department determines that the 17 hazardous situation has been addressed. 18 (f) For purposes of this section, the state health commissioner or the 19 commissioner's authorized representatives may take samples for 20 analysis and conduct examinations and investigations through any 21 officers or employees under the state health commissioner's 22 supervision. Those officers and employees may enter, at reasonable 23 times, the facilities of an individual vendor and inspect any food 24 products in those places and all pertinent equipment, materials, 25 containers, and labeling. 26 (g) The state health commissioner may develop guidelines for an 27 individual vendor who seeks an exemption from regulation as a food 28 establishment as described in subsection (c). The guidelines may 29 include: 30 (1) standards for best safe food handling practices; 31 (2) disease control measures; and 32 (3) standards for potable water sources. 33 (h) The department shall exclude from the definition of food 34 establishment the sale of products described in subsection (i): 35 (1) by an individual vendor of a farmers market or roadside stand; 36 and 37 (2) by a farmer selling directly to the end consumer on the farm 38 where the product is produced and through delivery to the end 39 consumer. 40 (i) Subsection (h) applies to the distribution of the following 41 products: 42 (1) Poultry products produced under IC 15-17-5-11. Poultry 2022 IN 1149—LS 6652/DI 147 5 1 products sold at a farmers market or roadside stand must be 2 frozen at the point of sale. Poultry products sold on the farm 3 where the product is produced must be refrigerated at the point of 4 sale and through delivery. 5 (2) Rabbits that are slaughtered and processed on a farm for the 6 purpose of conducting limited sales on the farm, at a farmers 7 market, and at a roadside stand. Rabbit meat sold at a farmers 8 market or roadside stand must be frozen at the point of sale. 9 Rabbit meat sold on the farm where the product is produced must 10 be refrigerated at the point of sale and through delivery. 11 Subsection (h) does not apply to the distribution of meat from a game 12 animal. 13 (j) An individual vendor of a farmers market or roadside stand that 14 sells eggs that meet the requirements under IC 16-42-11 is not 15 considered to be a food establishment and is exempt from the 16 requirements of this title that apply to a food establishment relating to 17 the sale of eggs. 18 (k) Notwithstanding any other law, a local unit of government (as 19 defined in IC 14-22-31.5-1) may not by ordinance or resolution require 20 any licensure, certification, or inspection of foods or food products of 21 an individual vendor who meets the requirements in subsection (c), 22 including an individual vendor who delivers the individual's food or 23 food product directly to an end consumer. 24 SECTION 4. IC 16-42-5.3 IS ADDED TO THE INDIANA CODE 25 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 26 JULY 1, 2022]: 27 Chapter 5.3. Vendor Food Products 28 Sec. 1. (a) As used in this chapter, "end consumer" means a 29 person who is the last person to purchase any food product and 30 who does not resell the food product. 31 (b) As used in this chapter, "roadside stand" means a structure, 32 including a tent, stand, vehicle, or trailer that is: 33 (1) visible from a road; and 34 (2) located not more than one hundred (100) feet from the 35 edge of the side of the road; 36 where whole uncut produce, food products that are not potentially 37 hazardous, poultry, rabbits permitted for sale by the board of 38 animal health, or eggs permitted for sale by the state egg board are 39 sold to an end consumer. 40 Sec. 2. A person may prepare and sell food products as a home 41 based vendor if the person complies with the requirements of this 42 chapter. 2022 IN 1149—LS 6652/DI 147 6 1 Sec. 3. The production and sale of food products by a home 2 based vendor in accordance with this chapter are exempt from the 3 requirements of this title that apply to food establishments. 4 Sec. 4. A home based vendor shall prepare and sell only a food 5 product that is: 6 (1) made, grown, or raised by an individual at the individual's 7 primary residence, property owned by the individual, or 8 property leased by the individual; 9 (2) not a potentially hazardous food product; 10 (3) prepared using proper sanitary procedures, including: 11 (A) proper hand washing; 12 (B) sanitizing the container or other packaging in which 13 the food product is contained; 14 (C) storing the food product safely; 15 (D) producing the food product in a food preparation or 16 packaging area in which animals are not present; and 17 (E) cleaning and sanitizing of surfaces that have contact 18 with the food product; 19 (4) not resold; 20 (5) sold in person, by telephone, or through the Internet; and 21 (6) delivered to the end consumer in person, by mail, or by a 22 third party carrier. 23 Sec. 5. (a) A home based vendor shall include a label for 24 packaged food or a sign for unpackaged food that contains the 25 following information: 26 (1) The name and address of the producer of the food product. 27 (2) The common or usual name of the food product. 28 (3) The ingredients of the food product, in descending order 29 by predominance by weight. 30 (4) The net weight and volume of the food product by 31 standard measure or numerical count. 32 (5) The date on which the food product was processed. 33 (6) The following statement in at least 10 point type: "This 34 product is home produced and processed and the production 35 area has not been inspected by the state department of health. 36 NOT FOR RESALE.". 37 (b) A home based vendor shall post the label of each food 38 product on the vendor's Internet web site. 39 Sec. 6. (a) A home based vendor may not ship a food product to 40 an end consumer who is located outside Indiana. 41 (b) A home based vendor shall do the following: 42 (1) Ship or deliver a food product in a sealed package that 2022 IN 1149—LS 6652/DI 147 7 1 allows an end consumer to determine whether the product has 2 been tampered with. 3 (2) Maintain a record of the shipping or delivery address of 4 each end consumer the vendor sells a food product to for at 5 least one (1) year after the date of the sale. 6 (3) Upon request, provide a record described in subdivision 7 (2) to the state department. 8 Sec. 7. (a) A home based vendor shall obtain a food handler 9 certificate from a certificate issuer that is accredited by the 10 American National Standards Institute. 11 (b) Upon request, a home based vendor shall provide a copy of 12 the food handler certificate required by subsection (a) to the state 13 department or an end consumer. 14 Sec. 8. (a) A home based vendor is subject to food sampling and 15 inspection if: 16 (1) the state department determines that the home based 17 vendor's food product is: 18 (A) misbranded under IC 16-42-2-3; or 19 (B) adulterated; or 20 (2) a consumer complaint has been received by the state 21 department. 22 (b) If the state department has reason to believe that an 23 imminent health hazard exists with respect to a home based 24 vendor's food product, the state department may order cessation 25 of production and sale of the food product until the state 26 department determines that the hazardous situation has been 27 addressed. 28 (c) For purposes of this chapter, the state health commissioner 29 or the commissioner's authorized representatives may take 30 samples for analysis and conduct examinations and investigations 31 through any officers or employees under the state health 32 commissioner's supervision. Those officers and employees may 33 enter, at reasonable times, the facilities of a home based vendor 34 and inspect any food products in those places and all pertinent 35 equipment, materials, containers, and labeling. 36 Sec. 9. The state health commissioner may develop guidelines 37 for the requirements described in this chapter, including: 38 (1) standards for best safe food handling practices; 39 (2) disease control measures; and 40 (3) standards for potable water sources. 41 Sec. 10. (a) This section applies to the sale of poultry and rabbits 42 by an individual vendor of a farmers' market or roadside stand. 2022 IN 1149—LS 6652/DI 147 8 1 (b) The following products are exempt from the requirements 2 of this title that apply to food establishments: 3 (1) Poultry products produced under IC 15-17-5-11. Poultry 4 products sold at a farmers' market or roadside stand must be 5 frozen at the point of sale. Poultry products sold on the farm 6 where the product is produced must be kept refrigerated at 7 the point of sale and through delivery by the producer to the 8 end consumer. 9 (2) Rabbits that are slaughtered and processed on a farm for 10 the purpose of conducting limited sales on the farm, at a 11 farmers' market, and at a roadside stand. Rabbit meat sold at 12 a farmers' market or roadside stand must be frozen at the 13 point of sale. Rabbit meat sold on the farm where the product 14 is produced must be kept refrigerated at the point of sale and 15 through delivery by the producer to the end consumer. An 16 individual who sells rabbits under this subsection shall comply 17 with the label requirements set forth in this chapter. 18 (c) This section does not apply to the distribution of meat from 19 a game animal. 20 Sec. 11. (a) IC 16-42-11 applies to the sale of eggs under this 21 chapter. 22 (b) An individual vendor of a farmers' market or roadside stand 23 is exempt from the requirements of this title that apply to a food 24 establishment relating to the sale of eggs, whole uncut produce, or 25 food products that are not potentially hazardous. 26 (c) An individual vendor may deliver eggs directly to the end 27 consumer. 28 Sec. 12. Notwithstanding any other law, a local unit of 29 government (as defined in IC 14-22-31.5-1) may not by ordinance 30 or resolution require any licensure, certification, or inspection of 31 foods or food products of a home based vendor or an individual 32 vendor who prepares and sells food products under this chapter. 33 Sec. 13. (a) The state department shall adopt rules under 34 IC 4-22-2 establishing a schedule of civil penalties that may be 35 imposed by the state department to enforce either of the following: 36 (1) This chapter. 37 (2) Rules adopted to implement this chapter. 38 (b) A penalty included in the schedule of civil penalties 39 established under this section may not exceed one thousand dollars 40 ($1,000) for each violation per day. 41 (c) The civil penalties collected under this section shall be 42 deposited in the state general fund. 2022 IN 1149—LS 6652/DI 147 9 1 (d) The state department may issue an order of compliance or 2 impose a civil penalty included in the schedule of civil penalties 3 established under this section, or both, against a person who does 4 any of the following: 5 (1) Fails to comply with this chapter or a rule adopted to 6 implement this chapter. 7 (2) Interferes with or obstructs the state department or the 8 state department's designated agent in the performance of 9 duties under this chapter. 10 (e) The state department may issue an order of compliance 11 against a person described in subsection (d) under IC 4-21.5-3-6, 12 IC 4-21.5-3-8, or IC 4-21.5-4. The state department may impose a 13 civil penalty against a person described in subsection (d) only in a 14 proceeding under IC 4-21.5-3-8. 15 (f) A proceeding commenced to impose a civil penalty under the 16 schedule of civil penalties established under this section may be 17 consolidated with any other proceeding commenced to enforce 18 either of the following: 19 (1) This chapter. 20 (2) A rule adopted by the state department to implement this 21 chapter. 22 (g) For each violation of this chapter or rules adopted to 23 implement this chapter, the state department may bring an 24 enforcement action against the person alleged to have committed 25 the violation. 2022 IN 1149—LS 6652/DI 147