*EH1577.2* March 28, 2025 ENGROSSED HOUSE BILL No. 1577 _____ DIGEST OF HB 1577 (Updated March 27, 2025 10:53 am - DI 120) Citations Affected: IC 16-18; IC 16-42; noncode. Synopsis: Mobile retail food establishment licenses. Requires the Indiana department of health (state department) to establish: (1) a statewide mobile retail food establishment license (license); (2) standards for the licensure, inspection, and operation of a mobile retail food establishment; (3) license fees and inspection fees; and (4) a statewide mobile retail food establishment data base. Requires the state (Continued next page) Effective: July 1, 2025; January 1, 2027. King, Olthoff, Shackleford, O'Brien (SENATE SPONSORS — JOHNSON T, BOHACEK, YODER, JACKSON L) January 21, 2025, read first time and referred to Committee on Public Health. January 28, 2025, amended, reported — Do Pass. Referred to Committee on Ways and Means pursuant to Rule 126.3. February 13, 2025, reported — Do Pass. February 17, 2025, read second time, ordered engrossed. Engrossed. February 18, 2025, read third time, passed. Yeas 94, nays 2. SENATE ACTION March 3, 2025, read first time and referred to Committee on Health and Provider Services. March 13, 2025, reported favorably — Do Pass; reassigned to Committee on Appropriations. March 27, 2025, amended, reported favorably — Do Pass. EH 1577—LS 7111/DI 150 Digest Continued department to establish a workgroup to collaborate with in implementing specified provisions. Beginning January 1, 2027, requires a local health department to: (1) receive applications for licenses; (2) collect annual license and inspection fees; (3) issue licenses; and (4) conduct semiannual inspections of a mobile retail food establishment that is issued a license. Provides that an owner or operator of a mobile retail food establishment issued a license is not required to obtain a county or local license or permit, nor required to pay a county or local inspection fee or a license or permit fee. Provides that beginning January 1, 2027, a person may not operate a mobile retail food establishment in Indiana unless the person obtains a license. Requires the state department to adopt rules to implement these provisions. Repeals provisions of law governing mobile retail food establishment permits effective January 1, 2027. EH 1577—LS 7111/DI 150EH 1577—LS 7111/DI 150 March 28, 2025 First Regular Session of the 124th General Assembly (2025) 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 2024 Regular Session of the General Assembly. ENGROSSED HOUSE BILL No. 1577 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 16-18-2-211, AS AMENDED BY P.L.151-2024, 2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 JULY 1, 2025]: Sec. 211. (a) "Local health department", except as 4 provided in subsections (b), and (c), and (d), means a department 5 organized by a county or city executive with a board, a health officer, 6 and an operational staff to provide health services to a county, city, or 7 multiple county unit. 8 (b) "Local health department", for purposes of IC 16-41-7.5, has the 9 meaning set forth in IC 16-41-7.5-1. 10 (c) "Local health department", for purposes of IC 16-42-5.1, has the 11 meaning set forth in IC 16-42-5.1-1. This subsection expires January 12 1, 2027. 13 (d) "Local health department", for purposes of IC 16-42-28, has 14 the meaning set forth in IC 16-42-28-1. 15 SECTION 2. IC 16-18-2-239.3, AS ADDED BY P.L.151-2024, 16 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 17 JULY 1, 2025]: Sec. 239.3. (a) "Mobile retail food establishment", for EH 1577—LS 7111/DI 150 2 1 purposes of IC 16-42-5.1, has the meaning set forth in IC 16-42-5.1-2. 2 This subsection expires January 1, 2027. 3 (b) "Mobile retail food establishment", for purposes of 4 IC 16-42-28, has the meaning set forth in IC 16-42-28-2. 5 SECTION 3. IC 16-18-2-239.4 IS REPEALED [EFFECTIVE 6 JANUARY 1, 2027]. Sec. 239.4. "Mobile retail food establishment 7 permit", for purposes of IC 16-42-5.1, has the meaning set forth in 8 IC 16-42-5.1-3. 9 SECTION 4. IC 16-18-2-239.5 IS ADDED TO THE INDIANA 10 CODE AS A NEW SECTION TO READ AS FOLLOWS 11 [EFFECTIVE JULY 1, 2025]: Sec. 239.5. "Mobile retail food 12 establishment license", for purposes of IC 16-42-28, has the 13 meaning set forth in IC 16-42-28-3. 14 SECTION 5. IC 16-42-5.1 IS REPEALED [EFFECTIVE 15 JANUARY 1, 2027]. (Mobile Retail Food Establishments). 16 SECTION 6. IC 16-42-28 IS ADDED TO THE INDIANA CODE 17 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 18 JULY 1, 2025]: 19 Chapter 28. Statewide Mobile Retail Food Establishment 20 License 21 Sec. 1. As used in this chapter, "local health department" refers 22 to: 23 (1) a local health department established under IC 16-20; or 24 (2) the health and hospital corporation created under 25 IC 16-22-8. 26 Sec. 2. (a) As used in this chapter, "mobile retail food 27 establishment" means a retail food establishment that is readily 28 moveable. 29 (b) The term includes a retail food establishment that: 30 (1) has wheels; 31 (2) is on skids; 32 (3) is mounted on a vehicle; or 33 (4) is a marine vessel. 34 (c) The term does not include a vehicle used solely to transport 35 food. 36 Sec. 3. As used in this chapter, "mobile retail food establishment 37 license" refers to a license established by the state department and 38 issued by a local health department for the operation of a mobile 39 retail food establishment. 40 Sec. 4. (a) The state department shall, in collaboration with the 41 workgroup established under section 10 of this chapter, do the 42 following: EH 1577—LS 7111/DI 150 3 1 (1) Establish a statewide mobile retail food establishment 2 license to be issued by a local health department to the owner 3 or operator of a mobile retail food establishment that meets 4 the licensing standards established by the state department. 5 (2) Establish standards for licensure and inspection of a 6 mobile retail food establishment by a local health department, 7 including standards for a necessary inspection following a 8 violation or failed inspection. 9 (3) Establish standards for the operation of a mobile retail 10 food establishment. 11 (4) Establish a statewide mobile retail food establishment data 12 base. 13 (b) In establishing the standards under subsection (a), the state 14 department shall do the following: 15 (1) Consider the technical components of a mobile retail food 16 establishment related to the safe and sanitary preparation and 17 handling of food. 18 (2) Provide for uniform interpretation and application of the 19 standards throughout Indiana. 20 (3) Require at least a semiannual inspection of a mobile retail 21 food establishment to ensure compliance with the standards. 22 Sec. 5. (a) In collaboration with the workgroup established 23 under section 10 of this chapter, the state department shall: 24 (1) establish an online portal and application for an owner or 25 operator to apply for and receive a mobile retail food 26 establishment license; and 27 (2) subject to subsection (b), establish a combined fee for an 28 annual license and an inspection to be paid for: 29 (A) the issuance or renewal of a statewide mobile retail 30 food establishment license; and 31 (B) any inspection of a mobile retail food establishment 32 during the period when the license is in effect. 33 (b) Beginning January 1, 2027, a local health department may 34 charge one (1) combined fee under subsection (a)(2) for an annual 35 license and inspection in an amount equal to four hundred fifty 36 dollars ($450). Of the combined fee collected by a local health 37 department for each annual license and inspection, the following 38 conditions apply: 39 (1) The local health department shall retain ($200) of each 40 combined fee, which must be used for costs incurred in 41 conducting local inspections. 42 (2) The local health department shall distribute the remaining EH 1577—LS 7111/DI 150 4 1 two hundred fifty dollars ($250) of each combined fee, on a 2 monthly basis, to the state department, which must be used 3 for costs incurred in establishing and maintaining the 4 statewide mobile retail food establishment data base. 5 Sec. 6. A statewide mobile retail food establishment license 6 issued under this chapter: 7 (1) is in effect for one (1) year; 8 (2) may be renewed annually by an owner or operator of a 9 mobile retail food establishment that continues to meet the 10 licensing standards of this chapter; and 11 (3) authorizes an owner or operator to use a mobile retail food 12 establishment for which the license is issued to provide food 13 ready for immediate consumption to the public in any county 14 in Indiana. 15 Sec. 7. An owner or operator of a mobile retail food 16 establishment issued a statewide mobile retail food establishment 17 license is not: 18 (1) required to obtain a county or local license or permit; or 19 (2) required to pay a county or local: 20 (A) inspection fee; or 21 (B) license or permit fee. 22 Sec. 8. (a) Beginning January 1, 2027, a local health department 23 shall: 24 (1) receive applications for statewide mobile retail food 25 establishment licenses; 26 (2) collect annual license fees and inspection fees and 27 distribute those fees in accordance with section 5(b) of this 28 chapter; 29 (3) issue statewide mobile retail food establishment licenses; 30 and 31 (4) conduct at least semiannual inspections of a mobile retail 32 food establishment that is issued a statewide mobile retail 33 food establishment license. 34 (b) Beginning January 1, 2027, a person may not operate a 35 mobile retail food establishment in Indiana unless the person 36 obtains a mobile retail food establishment license. 37 Sec. 9. Not later than January 1, 2027, the state department 38 shall adopt rules under IC 4-22-2 to implement this chapter. 39 Sec. 10. (a) The state department shall establish a workgroup to 40 collaborate with in implementing sections 4(a) and 5 of this 41 chapter. 42 (b) The state department shall designate at least one (1) EH 1577—LS 7111/DI 150 5 1 representative of a local health department from each Indiana 2 congressional district as a member of the workgroup established 3 under subsection (a). 4 SECTION 7. [EFFECTIVE JULY 1, 2025] (a) The definitions in 5 IC 16-42-28, as added by this act, apply to this SECTION. 6 (b) Notwithstanding IC 16-42-28-8, as added by this act, a local 7 health department may: 8 (1) receive applications for mobile retail food establishment 9 licenses; and 10 (2) collect annual license fees; 11 before January 1, 2027. However, a local health department may 12 not issue a mobile retail food establishment license before January 13 1, 2027. 14 (c) This SECTION expires July 1, 2027. EH 1577—LS 7111/DI 150 6 COMMITTEE REPORT Mr. Speaker: Your Committee on Public Health, to which was referred House Bill 1577, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows: Replace the effective date in SECTION 4 with "[EFFECTIVE JANUARY 1, 2027]". Page 1, delete lines 1 through 17, begin a new paragraph and insert: "SECTION 1. IC 16-18-2-211, AS AMENDED BY P.L.151-2024, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 211. (a) "Local health department", except as provided in subsections (b), and (c), and (d), means a department organized by a county or city executive with a board, a health officer, and an operational staff to provide health services to a county, city, or multiple county unit. (b) "Local health department", for purposes of IC 16-41-7.5, has the meaning set forth in IC 16-41-7.5-1. (c) "Local health department", for purposes of IC 16-42-5.1, has the meaning set forth in IC 16-42-5.1-1. This subsection expires January 1, 2027. (d) "Local health department", for purposes of IC 16-42-28, has the meaning set forth in IC 16-42-28-1. SECTION 2. IC 16-18-2-239.3, AS ADDED BY P.L.151-2024, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 239.3. (a) "Mobile retail food establishment", for purposes of IC 16-42-5.1, has the meaning set forth in IC 16-42-5.1-2. This subsection expires January 1, 2027. (b) "Mobile retail food establishment", for purposes of IC 16-42-28, has the meaning set forth in IC 16-42-28-2.". Page 2, delete lines 1 through 5, begin a new paragraph and insert: "SECTION 3. IC 16-18-2-239.4 IS REPEALED [EFFECTIVE JANUARY 1, 2027]. Sec. 239.4. "Mobile retail food establishment permit", for purposes of IC 16-42-5.1, has the meaning set forth in IC 16-42-5.1-3. SECTION 4. IC 16-18-2-239.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 239.5. "Mobile retail food establishment license", for purposes of IC 16-42-28, has the meaning set forth in IC 16-42-28-3.". Page 2, between lines 25 and 26, begin a new paragraph and insert: "(c) The term does not include a vehicle used solely to transport EH 1577—LS 7111/DI 150 7 food.". Page 2, line 30, delete "shall" and insert "shall, in collaboration with the workgroup established under section 10 of this chapter,". Page 2, line 36, delete "department." and insert "department, including standards for a necessary inspection following a violation or failed inspection.". Page 3, line 8, delete "The" and insert "In collaboration with the workgroup established under section 10 of this chapter, the". Page 3, line 9, delete "prescribe a form for use by an owner or operator to apply" and insert "establish an online portal and application for an owner or operator to apply for and receive a mobile retail food establishment license;". Page 3, delete lines 10 through 11. Page 3, line 42, delete "2026," and insert "2027,". Page 4, line 10, delete "July 1, 2026," and insert "January 1, 2027,". Page 4, line 13, delete "2026," and insert "2027,". Page 4, after line 14, begin a new paragraph and insert: "Sec. 10. (a) The state department shall establish a workgroup to collaborate with in implementing section 4(a) and section 5 of this chapter. (b) The state department shall designate at least one (1) representative of a local health department from each Indiana congressional district as a member of the workgroup established under subsection (a). SECTION 6. [EFFECTIVE JULY 1, 2025] (a) The definitions in IC 16-42-28, as added by this act, apply to this SECTION. (b) Notwithstanding IC 16-42-28-8, as added by this act, a local health department may: (1) receive applications for mobile retail food establishment licenses; and (2) collect annual license fees; before January 1, 2027. However, a local health department may not issue a mobile retail food establishment license before January 1, 2027. (c) This SECTION expires July 1, 2027.". Renumber all SECTIONS consecutively. and when so amended that said bill do pass. (Reference is to HB 1577 as introduced.) EH 1577—LS 7111/DI 150 8 BARRETT Committee Vote: yeas 13, nays 0. _____ COMMITTEE REPORT Mr. Speaker: Your Committee on Ways and Means, to which was referred House Bill 1577, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill do pass. (Reference is to HB 1577 as printed January 28, 2025.) THOMPSON Committee Vote: Yeas 14, Nays 4 _____ COMMITTEE REPORT Mr. President: The Senate Committee on Health and Provider Services, to which was referred House Bill No. 1577, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill DO PASS and be reassigned to the Senate Committee on Appropriations. (Reference is to HB 1577 as printed February 13, 2025.) CHARBONNEAU, Chairperson Committee Vote: Yeas 12, Nays 0 _____ COMMITTEE REPORT Mr. President: The Senate Committee on Appropriations, to which was referred Engrossed House Bill No. 1577, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows: Page 3, line 22, delete "Sec. 5." and insert "Sec. 5. (a)". Page 3, line 26, after "license;" insert "and". Page 3, delete lines 27 through 39, begin a new line block indented and insert: EH 1577—LS 7111/DI 150 9 "(2) subject to subsection (b), establish a combined fee for an annual license and an inspection to be paid for: (A) the issuance or renewal of a statewide mobile retail food establishment license; and (B) any inspection of a mobile retail food establishment during the period when the license is in effect. (b) Beginning January 1, 2027, a local health department may charge one (1) combined fee under subsection (a)(2) for an annual license and inspection in an amount equal to four hundred fifty dollars ($450). Of the combined fee collected by a local health department for each annual license and inspection, the following conditions apply: (1) The local health department shall retain ($200) of each combined fee, which must be used for costs incurred in conducting local inspections. (2) The local health department shall distribute the remaining two hundred fifty dollars ($250) of each combined fee, on a monthly basis, to the state department, which must be used for costs incurred in establishing and maintaining the statewide mobile retail food establishment data base.". Page 4, line 19, delete "fees;" and insert "fees and distribute those fees in accordance with section 5(b) of this chapter;". Page 4, line 31, delete "section 4(a) and section 5" and insert "sections 4(a) and 5". and when so amended that said bill do pass. (Reference is to EHB 1577 as printed March 14, 2025.) MISHLER, Chairperson Committee Vote: Yeas 10, Nays 0. EH 1577—LS 7111/DI 150