LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7546 NOTE PREPARED: Feb 11, 2025
BILL NUMBER: HB 1562 BILL AMENDED: Feb 10, 2025
SUBJECT: Farm and Home Based Food Sales.
FIRST AUTHOR: Rep. Smith H BILL STATUS: As Passed House
FIRST SPONSOR: Sen. Byrne
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Explanation of State Expenditures: The bill repeals current home based vendor regulations. It establishes
homemade food product and meat product labeling requirements. It provides that a small farm or home based
vendor must complete and pass food safety training from a list of providers approved by the Indiana State
Department of Health (IDOH) before selling time temperature control for safety homemade food products.
It creates labeling requirements for homemade food product.
The bill provides that the local health department and the Board of Animal Health (BOAH) have the
authority to do the following: (1) request proof of completion of the food safety training; (2) verify that a
home vendor or the owner of a small farm's gross sales; and (3) ensure the home vendor or the owner of a
small farm has complied with labeling requirements.
The bill permits the IDOH or local department of health to impose various fines. It creates a process for a
home vendor or the owner of a small farm to appeal a fine. It requires a home vendor or the owner of a small
farm to comply with farmer's market regulations. It provides that nothing in the new chapter prevents
counties from enacting ordinances regulating the operation of home food establishments, provided such
ordinances do not: (1) conflict with the provisions of this chapter; or (2) impede or restrict the sale of
homemade food products in compliance state regulations.
The bill establishes that the IDOH, a local unit of government, the Health and Hospital Corporation of
Marion County, or a local health department may not adopt or continue in effect, any ordinance, rule,
regulation, or resolution regarding licensure, certification, or inspection of foods or food products prepared
and sold by: (1) a home based vendor or (2) the owner of a small farm in compliance with this chapter. It also
exempts public buildings used by small farms and home based vendors from certain public building
regulations.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The bill could initially increase workload for the IDOH to revise any
HB 1562 1 rules, policies, and guidelines not in compliance with the bill regarding home based vendors and small farms.
The IDOH would be required by the bill to provide a list on its website of approved food safety training for
these entities regarding time temperature control food. The bill allows a home based vendor or small farm
to appeal a decision of a local health department to the executive board of the IDOH. The IDOH should be
able to implement these provisions using existing staffing and resouces. [The IDOH's administrative
expenditures are currently paid from the Tobacco Master Settlement Fund.]
The bill gives the BOAH the authority, pursuant to a complaint, to request proof of completion of the food
safety training, to verify a home vendor's or the owner of a small farm's gross sales; and to ensure the home
vendor or the owner of a small farm has complied with labeling requirements. The BOAH should be able to
accomplish these provisions using existing staffing and resources. [The BOAH receives state General Fund
appropriations.]
Explanation of State Revenues:
Explanation of Local Expenditures: The bill could initially increase workload for local units of
government, the Health and Hospital Corporation of Marion County, and local health departments to revise
any rules, policies, and guidelines for home based vendors and small farms that do not comply with the bill.
The bill gives the authority to a local health department, pursuant to a complaint, to request proof of
completion of the food safety training, to verify a home vendor's or the owner of a small farm's gross sales;
and to ensure the home vendor or the owner of a small farm has complied with labeling requirements. They
should be able to accomplish these provisions using existing staffing and resources.
The bill could also reduce workload for local fire departments and building inspectors related to inspections
of these entities as the bill provides that public buildings used by home based vendors and small farms are
exempt from Indiana Fire Prevention and Building Safety Commission laws and rules.
Explanation of Local Revenues: The bill allows a local health department and the Health and Hospital
Corporation of Marion County to impose a fine of up to $3,000 for a violation by a home based vendor or
small farm.
The bill could reduce revenue related to civil penalties for certain building code violations as the bill
provides that public buildings used by home based vendors and small farms are exempt from Indiana Fire
Prevention and Building Safety Commission laws and rules.
State Agencies Affected: Indiana Department of Health; Board of Animal Health.
Local Agencies Affected: Local health departments, fire departments, building inspectors, trial courts, local
law enforcement agencies.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual;
Indiana State Department of Agriculture:
https://www.in.gov/isda/about/about-indiana-agriculture/;
US Department of Agriculture:
https://www.nass.usda.gov/Statistics_by_State/Indiana/Publications/Annual_Statistical_Bulletin/2223/IN
2223Bulletin.pdf;
Indiana Department of Health:
HB 1562 2 Registration Application For a Retail Food Establishment, State Form 49677 (R8/5-13);
https://www.in.gov/health/food-protection/files/Home-Based-Vendors-FAQ-FINAL.pdf.
Fiscal Analyst: Heather Puletz, 317-234-9484; Allison Leeuw, 317-234-9465.
HB 1562 3