HB5052ham002 103RD GENERAL ASSEMBLY

Rep. Sonya M. Harper

Filed: 4/15/2024

10300HB5052ham002 LRB103 37928 HLH 72138 a

AMENDMENT TO HOUSE BILL 5052

AMENDMENT NO. ______. Amend House Bill 5052 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Procurement Code is amended by changing Sections 1-13 and 20-5 and by adding Article 54 as follows:

(30 ILCS 500/1-13)

Sec. 1-13. Applicability to public institutions of higher education.

(a) This Code shall apply to public institutions of higher education, regardless of the source of the funds with which contracts are paid, except as provided in this Section.

(b) Except as provided in this Section, this Code shall not apply to procurements made by or on behalf of public institutions of higher education for any of the following:

(1) Memberships in professional, academic, research, or athletic organizations on behalf of a public institution of higher education, an employee of a public institution of higher education, or a student at a public institution of higher education.

(2) Procurement expenditures for events or activities paid for exclusively by revenues generated by the event or activity, gifts or donations for the event or activity, private grants, or any combination thereof.

(3) Procurement expenditures for events or activities for which the use of specific potential contractors is mandated or identified by the sponsor of the event or activity, provided that the sponsor is providing a majority of the funding for the event or activity.

(4) Procurement expenditures necessary to provide athletic, artistic or musical services, performances, events, or productions by or for a public institution of higher education.

(5) Procurement expenditures for periodicals, books, subscriptions, database licenses, and other publications procured for use by a university library or academic department, except for expenditures related to procuring textbooks for student use or materials for resale or rental.

(6) Procurement expenditures for placement of students in externships, practicums, field experiences, and for medical residencies and rotations.

(7) Contracts for programming and broadcast license rights for university-operated radio and television stations.

(8) Procurement expenditures necessary to perform sponsored research and other sponsored activities under grants and contracts funded by the sponsor or by sources other than State appropriations.

(9) Contracts with a foreign entity for research or educational activities, provided that the foreign entity either does not maintain an office in the United States or is the sole source of the service or product.

(10) Procurement expenditures for any ongoing software license or maintenance agreement or competitively solicited software purchase, when the software, license, or maintenance agreement is available through only the software creator or its manufacturer and not a reseller.

(11) Procurement expenditures incurred outside of the United States for the recruitment of international students.

(12) Procurement expenditures for contracts entered into under the Public University Energy Conservation Act.

(13) Procurement expenditures for advertising purchased directly from a media station or the owner of the station for distribution of advertising. Notice of each contract with an annual value of more than $100,000 entered into by a public institution of higher education that is related to the procurement of goods and services identified in items (1) through (13) of this subsection shall be published in the Procurement Bulletin within 14 calendar days after contract execution. The Chief Procurement Officer shall prescribe the form and content of the notice. Each public institution of higher education shall provide the Chief Procurement Officer, on a monthly basis, in the form and content prescribed by the Chief Procurement Officer, a report of contracts that are related to the procurement of goods and services identified in this subsection. At a minimum, this report shall include the name of the contractor, a description of the supply or service provided, the total amount of the contract, the term of the contract, and the exception to the Code utilized. A copy of any or all of these contracts shall be made available to the Chief Procurement Officer immediately upon request. The Chief Procurement Officer shall submit a report to the Governor and General Assembly no later than November 1 of each year that shall include, at a minimum, an annual summary of the monthly information reported to the Chief Procurement Officer.

(b-5) Except as provided in this subsection, the provisions of this Code shall not apply to contracts for medical supplies or to contracts for medical services necessary for the delivery of care and treatment at medical, dental, or veterinary teaching facilities used by Southern Illinois University or the University of Illinois or at any university-operated health care center or dispensary that provides care, treatment, and medications for students, faculty, and staff. Furthermore, the provisions of this Code do not apply to the procurement by such a facility of any additional supplies or services that the operator of the facility deems necessary for the effective use and functioning of the medical supplies or services that are otherwise exempt from this Code under this subsection (b-5). However, other supplies and services needed for these teaching facilities shall be subject to the jurisdiction of the Chief Procurement Officer for Public Institutions of Higher Education who may establish expedited procurement procedures and may waive or modify certification, contract, hearing, process and registration requirements required by the Code. All procurements made under this subsection shall be documented and may require publication in the Illinois Procurement Bulletin.

(b-10) Procurements made by or on behalf of the University of Illinois for investment services may be entered into or renewed without being subject to the requirements of this Code. Notice of intent to renew a contract shall be published in the Illinois Public Higher Education Procurement Bulletin at least 14 days prior to the execution of a renewal, and the University of Illinois shall hold a public hearing for interested parties to provide public comment. Any contract extended, renewed, or entered pursuant to this exception shall be published in the Illinois Public Higher Education Procurement Bulletin within 5 days of contract execution.

(c) Procurements made by or on behalf of public institutions of higher education for the fulfillment of a grant shall be made in accordance with the requirements of this Code to the extent practical.

Upon the written request of a public institution of higher education, the Chief Procurement Officer may waive contract, registration, certification, and hearing requirements of this Code if, based on the item to be procured or the terms of a grant, compliance is impractical. The public institution of higher education shall provide the Chief Procurement Officer with specific reasons for the waiver, including the necessity of contracting with a particular potential contractor, and shall certify that an effort was made in good faith to comply with the provisions of this Code. The Chief Procurement Officer shall provide written justification for any waivers. By November 1 of each year, the Chief Procurement Officer shall file a report with the General Assembly identifying each contract approved with waivers and providing the justification given for any waivers for each of those contracts. Notice of each waiver made under this subsection shall be published in the Procurement Bulletin within 14 calendar days after contract execution. The Chief Procurement Officer shall prescribe the form and content of the notice.

(d) Notwithstanding this Section, a waiver of the registration requirements of Section 20-160 does not permit a business entity and any affiliated entities or affiliated persons to make campaign contributions if otherwise prohibited by Section 50-37. The total amount of contracts awarded in accordance with this Section shall be included in determining the aggregate amount of contracts or pending bids of a business entity and any affiliated entities or affiliated persons.

(e) Notwithstanding subsection (e) of Section 50-10.5 of this Code, the Chief Procurement Officer, with the approval of the Executive Ethics Commission, may permit a public institution of higher education to accept a bid or enter into a contract with a business that assisted the public institution of higher education in determining whether there is a need for a contract or assisted in reviewing, drafting, or preparing documents related to a bid or contract, provided that the bid or contract is essential to research administered by the public institution of higher education and it is in the best interest of the public institution of higher education to accept the bid or contract. For purposes of this subsection, "business" includes all individuals with whom a business is affiliated, including, but not limited to, any officer, agent, employee, consultant, independent contractor, director, partner, manager, or shareholder of a business. The Executive Ethics Commission may promulgate rules and regulations for the implementation and administration of the provisions of this subsection (e).

(e-5) Procurements made by or on behalf of public institutions of higher education for food shall be made in accordance with Article 54.

(f) As used in this Section:

"Grant" means non-appropriated funding provided by a federal or private entity to support a project or program administered by a public institution of higher education and any non-appropriated funding provided to a sub-recipient of the grant.

"Public institution of higher education" means Chicago State University, Eastern Illinois University, Governors State University, Illinois State University, Northeastern Illinois University, Northern Illinois University, Southern Illinois University, University of Illinois, Western Illinois University, and, for purposes of this Code only, the Illinois Mathematics and Science Academy.

(g) (Blank).

(h) The General Assembly finds and declares that:

(1) Public Act 98-1076, which took effect on January 1, 2015, changed the repeal date set for this Section from December 31, 2014 to December 31, 2016.

(2) The Statute on Statutes sets forth general rules on the repeal of statutes and the construction of multiple amendments, but Section 1 of that Act also states that these rules will not be observed when the result would be "inconsistent with the manifest intent of the General Assembly or repugnant to the context of the statute".

(3) This amendatory Act of the 100th General Assembly manifests the intention of the General Assembly to remove the repeal of this Section.

(4) This Section was originally enacted to protect, promote, and preserve the general welfare. Any construction of this Section that results in the repeal of this Section on December 31, 2014 would be inconsistent with the manifest intent of the General Assembly and repugnant to the context of this Code.

It is hereby declared to have been the intent of the General Assembly that this Section not be subject to repeal on December 31, 2014.

This Section shall be deemed to have been in continuous effect since December 20, 2011 (the effective date of Public Act 97-643), and it shall continue to be in effect henceforward until it is otherwise lawfully repealed. All previously enacted amendments to this Section taking effect on or after December 31, 2014, are hereby validated.

All actions taken in reliance on or pursuant to this Section by any public institution of higher education, person, or entity are hereby validated.

In order to ensure the continuing effectiveness of this Section, it is set forth in full and re-enacted by this amendatory Act of the 100th General Assembly. This re-enactment is intended as a continuation of this Section. It is not intended to supersede any amendment to this Section that is enacted by the 100th General Assembly.

In this amendatory Act of the 100th General Assembly, the base text of the reenacted Section is set forth as amended by Public Act 98-1076. Striking and underscoring is used only to show changes being made to the base text.

This Section applies to all procurements made on or before the effective date of this amendatory Act of the 100th General Assembly.

(Source: P.A. 102-16, eff. 6-17-21; 102-721, eff. 5-6-22; 102-1119, eff. 1-23-23; 103-570, eff. 1-1-24.)

(30 ILCS 500/20-5)

Sec. 20-5. Method of source selection. Unless otherwise authorized by law, all State contracts shall be awarded by competitive sealed bidding, in accordance with Section 20-10, except as provided in Sections 20-15, 20-20, 20-25, 20-30, 20-35, 30-15, and 40-20, and 54-15. The chief procurement officers appointed pursuant to Section 10-20 may determine the method of solicitation and contract for all procurements pursuant to this Code.

(Source: P.A. 98-1076, eff. 1-1-15.)

(30 ILCS 500/Art. 54 heading new)

ARTICLE 54. FOOD PROCUREMENT

(30 ILCS 500/54-5 new)

Sec. 54-5. Applicability. All State agencies and State-owned facility food contracts, including public institutions of higher education, shall be procured in accordance with the provisions of this Article.

(30 ILCS 500/54-10 new)

Sec. 54-10. Authority. State agency purchasing officers and State-owned facility purchasing officers shall have the authority to procure food.

(30 ILCS 500/54-15 new)

Sec. 54-15. Method of source selection. All State agency and State-owned facility food contracts shall be awarded by a competitive sealed proposal process in accordance with Section 20-15 of this Code.

Section 10. The Local Food, Farms, and Jobs Act is amended by changing Sections 1 and 5 and by adding Sections 12 and 35 as follows:

(30 ILCS 595/1)

Sec. 1. Short title. This Act may be cited as the "Local Food, Farms, and Jobs Act". This Act may be referred to as the Good Food Purchasing Law.

(Source: P.A. 96-579, eff. 8-18-09.)

(30 ILCS 595/5)

Sec. 5. Definitions. As used in this Act:

"Good food purchasing core values" means procurement based on all of the following criteria:

(1) prioritizing local suppliers, especially small or mid-sized farms, food manufacturers, or food businesses that are privately or cooperatively operated or that are operated as not-for-profits and that are located within (i) a 250-mile radius of the location where the food will be consumed for food other than meat, poultry, or seafood or (ii) a 500-mile radius of the location where the food will be consumed for meat, poultry, or seafood;

(2) prioritizing suppliers who are entrepreneurs of color and community members who are most impacted by current and historic economic marginalization, barriers to leveraging institutional buying power, and a lack of infrastructure, financial resources, staff time, and land;

(3) supporting community members, food producers, and food workers who have experienced negative systemic social or economic impacts and building partnerships with those community members to ensure that food products and menus reflect the interests and cultures of everyone they serve;

(4) identifying pathways for purchasing from small and community-based suppliers for products that cannot be grown or harvested within the mileage limitations set forth in item (1), such as seafood, coffee, cocoa, and sugar;

(5) prioritizing suppliers that consider: (A) community health and universal rights to clean air and water; (B) reduction or elimination of synthetic pesticides and fertilizers; (C) improved soil health and carbon sequestration; (D) reduced fossil fuel energy inputs and protection of water resources; (E) biodiversity and ecological resilience; (F) food waste reduction; (vii) greenhouse gas emission reduction; and (G) reduction or elimination of single-use plastics and other resource-intensive packaging and reduction of the carbon and water footprint of food purchases;

(6) prioritizing producers and vendors that: (A) comply with labor laws, including minimum wage laws, through contractual requirements and enforcement; (B) honor the right to freedom of association; (C) provide workers with the ability to organize a union and to bargain collectively, free from reprisal, for livable wages and safe and healthy working conditions; (D) uphold and implement workers' rights principles; and (E) implement cooperative ownership, democratic decision-making, and migrant, racial, and gender justice;

(7) prioritizing sourcing from farms and ranches that provide healthy and more humane conditions for farm animals throughout the lives of the animals through nutrition, physical environments that provide animals with enough space and enrichments to carry out their natural behaviors, pain control and responsible therapeutic antibiotic use, and humane handling, transport, and slaughter;

(8) promoting community health, nutrition, equitable access, and food sovereignty by prioritizing high-quality and culturally-relevant whole or minimally processed foods, including vegetables, fruit, and whole grains, and plant-forward meals; preservation methods such as canning and bottling using oils, sugar, or salt are not permitted; and

(9) in general, prioritizing products that are certified under certifications currently endorsed by the Center for Good Food Purchasing.

"Good food purchasing equity, accountability, and transparency" means:

(1) having or developing a supplier or vendor diversification plan with goals that include reporting and accountability measures; measures should be disaggregated by demographic group, including race and gender;

(2) planning implementation that prioritizes purchases and addresses barriers to entry for suppliers who have experienced negative systemic social or economic impacts including, but not limited to, women, veterans, persons with disabilities, and especially people of color, across all supply chains and to the greatest extent possible;

(3) sharing purchasing data, assessments, purchasing targets, and implementation plans in a publicly accessible location, including online, with community members to facilitate engagement and transparency;

(4) engaging with community members, including, but not limited to, people served by meal programs, food service workers, constituents, and local food businesses, in informing values-based purchasing decisions and processes;

(5) developing and implementing comprehensive institutional policies that reflect community needs and values and prioritize transparency, racial equity, local economies, environmental sustainability, valued workforce, animal welfare, and community health and nutrition within their operations and food procurement; and

(6) ensuring that institutional policies are embedded in agreements for contracted food services and that mechanisms are developed to ensure compliance and accountability through reporting and active contract management.

"Minimally processed foods" means foods that are unaltered or slightly altered from the food's natural state through such processes as removal of inedible or unwanted parts, drying, powdering, squeezing, crushing, grinding, fractioning, steaming, poaching, boiling, roasting, pasteurization, chilling, freezing, placing in containers, vacuum packaging, nonalcoholic fermentation, and other methods that do not add to the original food, salt, sugar oils or fats, or food substances, other than additives that prolong product duration, protect original properties, or prevent proliferation of microorganisms. "Minimally processed foods" include, but are not limited to, whole grains or flours; fresh or frozen fruits and vegetables; meat, poultry, fish, and seafood, whole or in the form of steaks, fillets, and other cuts; fresh or pasteurized milk, eggs, fresh or pasteurized plain yogurt, legumes, and nuts and seeds. "Minimally processed foods" also includes foods made of 2 or more items in this group, such as dried mixed fruits, and foods with vitamins and minerals generally added to replace nutrients lost during minimal processing, such as flour fortified with iron and folic acid. "Local farm or food products" are products: (1) grown in Illinois; or (2) processed and packaged in Illinois, using at least one ingredient grown in Illinois.

(Source: P.A. 101-258, eff. 1-1-20.)

(30 ILCS 595/12 new)

Sec. 12. Good food purchasing.

(a) No later than one year after the effective date of this amendatory Act of the 103rd General Assembly, each State agency and State-owned facility that purchases food, including, without limitation, facilities for persons with mental health and developmental disabilities, correctional facilities, and public institutions of higher education, including community colleges, shall have a timely plan for undergoing a good food purchasing baseline assessment, conducted by a national organization equipped to conduct such an assessment, to determine current alignment with good food purchasing core values and good food purchasing equity, transparency, and accountability and to ascertain how to better meet the good food purchasing core values and good food purchasing equity, transparency, and accountability.

(b) No later than one year after completion of the baseline assessment under subsection (a), each State agency and State-owned facility shall develop and adopt a multi-year action plan with benchmarks to align food purchasing processes with good food purchasing equity, transparency, and accountability and food purchases with good food purchasing core values.

(c) Upon adoption of the multi-year action plan required under subsection (b) of this Section, each State agency and State-owned facility shall procure food under Section 20-15 of the Illinois Procurement Code.

(d) The year after completing the multi-year action plan and each year thereafter, each State agency and State-owned facility shall undergo a good food purchasing assessment and update its multi-year action plan to annually increase the procurement of food that meets the good food purchasing core values and good food purchasing equity, transparency, and accountability.

(e) To meet the goals set forth in this Section, when a State contract for purchase of food is to be awarded to the lowest responsible bidder or proposer, an otherwise qualified bidder or proposer who will fulfill the contract through the use of food that aligns with Good Food Purchasing core values may be given preference over other bidders or proposers.

(f) To facilitate reporting required under this Section, all State agencies and State-owned facilities that purchase food shall include in all invitations for bids, requests for proposals, and contracts a requirement for vendor data-sharing, including, but not limited to, product types, quantities, sizes, prices, origin, processors, and distributors.

(g) On each January 1 following adoption of a multi-year action plan, each State agency and State-owned facility that purchases food shall publish in its procurement bulletin and on its website notice of its purchases of food in the immediately preceding fiscal year, its good food purchasing baseline and annual assessments, and its multi-year action plan.

(h) Under the procedures laid out in under subsection (h) of Section 5-5 of the Illinois Procurement Code, the Procurement Policy Board may review a proposal, bid, or contract and issue a recommendation to void a contract or reject a proposal or bid based on a vendor, proposer or bidder's current violation or history of violation of federal, State, or local law, including, but not limited to, federal labor laws under Title 29 of the United States Code and the Minimum Wage Law.

(30 ILCS 595/35 new)

Sec. 35. Good Food Purchasing Task Force.

(a) The Good Food Purchasing Task Force created by House Joint Resolution 33 adopted in the 102nd General Assembly is reestablished and shall continue with its study of current procurement of food within the State and to explore how good food purchasing can be implemented to maximize the procurement of healthy foods that are sustainably, locally, and equitably sourced.

(b) Any action taken in reliance on House Joint Resolution 33 of the 102nd General Assembly after January 1, 2023 by any person or entity is hereby validated.

(c) The Task Force shall consist of the following members, who shall serve without compensation:

(1) the Lieutenant Governor or his or her designee;

(2) the Speaker of the House of Representatives or his or her designee;

(3) the Minority Leader of the House of Representatives or his or her designee;

(4) the Senate President or his or her designee;

(5) the Senate Minority Leader or his or her designee;

(6) one member nominated by a statewide local food advocacy organization and appointed by the Lieutenant Governor;

(7) one member nominated by a national multi-sector food advocacy organization and appointed by the Lieutenant Governor;

(8) one member nominated by a Chicago-based food advocacy organization and appointed by the Lieutenant Governor;

(9) one member nominated by a statewide environmental advocacy organization and appointed by the Lieutenant Governor;

(10) one member nominated by a statewide labor organization that represents food workers and appointed by the Lieutenant Governor;

(11) one member nominated by a national farm-animal welfare organization and appointed by the Lieutenant Governor;

(12) the Director of Commerce and Economic Opportunity or his or her designee;

(13) the Director of the Environmental Protection Agency or his or her designee;

(14) the Director of Public Health or his or her designee;

(15) the Director of Natural Resources or his or her designee;

(16) the Chief Procurement Officer for General Services or his or her designee;

(17) the Chief Procurement Officer for Higher Education or his or her designee;

(18) the Chief Procurement Officer for the Secretary of State's Office or his or her designee;

(19) the Chief Procurement Officer for the Department of Corrections or his or her designee;

(20) the Chief Procurement Officer for the Department of Human Services or his or her designee;

(21) the Chief Procurement Officer for Central Management Services or his or her designee;

(22) the Director of the Department of Agriculture or his or her designee; and

(23) one member nominated by a statewide organization that advocates for healthy nutrition and appointed by Lieutenant Governor.

Members of the Task Force shall serve without compensation. The Task Force members shall select a chairperson at the first meeting of the Task Force. Any member appointed under House Joint Resolution 33 of the 102nd General Assembly who was a member of the Task Force at the end of the 102nd General Assembly shall continue to serve on the Task Force until the appointed member resigns or is otherwise removed from the Task Force.

(d) The Department of Agriculture shall provide administrative support for the Task Force.

(e) The task force shall submit its interim report to the Governor and General Assembly no later than July 1, 2025 and its final report to the Governor and General Assembly no later than July 1, 2026. Following submission of the final report, the Task Force shall continue to meet to monitor and support implementation of this Act.

(30 ILCS 595/10 rep.)

Section 15. The Local Food, Farms, and Jobs Act is amended by repealing Section 10.

Section 20. The Food Handling Regulation Enforcement Act is amended by changing Section 4 as follows:

(410 ILCS 625/4)

Sec. 4. Cottage food operation.

(a) For the purpose of this Section:

A food is "acidified" if: (i) acid or acid ingredients are added to it to produce a final equilibrium pH of 4.6 or below; or (ii) it is fermented to produce a final equilibrium pH of 4.6 or below.

"Canned food" means food that has been heat processed sufficiently under United States Department of Agriculture guidelines to enable storing the food at normal home temperatures.

"Cottage food operation" means an operation conducted by a person who produces or packages food or drink, other than foods and drinks listed as prohibited in paragraph (1.5) of subsection (b) of this Section, in a kitchen located in that person's primary domestic residence or another appropriately designed and equipped kitchen on a farm for direct sale by the owner, a family member, or employee.

"Cut leafy greens" means fresh leafy greens whose leaves have been cut, shredded, sliced, chopped, or torn. "Cut leafy greens" does not mean cut-to-harvest leafy greens.

"Department" means the Department of Public Health.

"Equilibrium pH" means the final potential of hydrogen measured in an acidified food after all the components of the food have achieved the same acidity.

"Farmers' market" means a common facility or area where farmers gather to sell a variety of fresh fruits and vegetables and other locally produced farm and food products directly to consumers.

"Leafy greens" includes iceberg lettuce; romaine lettuce; leaf lettuce; butter lettuce; baby leaf lettuce, such as immature lettuce or leafy greens; escarole; endive; spring mix; spinach; cabbage; kale; arugula; and chard. "Leafy greens" does not include microgreens or herbs such as cilantro or parsley.

"Local health department" means a State-certified health department of a unit of local government in which a cottage food operation is located.

"Local public health department association" means an association solely representing 2 or more State-certified local health departments.

"Low-acid canned food" means any canned food with a finished equilibrium pH greater than 4.6 and a water activity (aw) greater than 0.85.

"Microgreen" means an edible plant seedling grown in soil or substrate and harvested above the soil or substrate line.

"Potentially hazardous food" means a food that is potentially hazardous according to the Department's administrative rules. Potentially hazardous food (PHF) in general means a food that requires time and temperature control for safety (TCS) to limit pathogenic microorganism growth or toxin formation.

"Sprout" means any seedling intended for human consumption that was produced in a manner that does not meet the definition of microgreen.

(b) A cottage food operation may produce homemade food and drink provided that all of the following conditions are met:

(1) (Blank).

(1.3) A cottage food operation must register with the local health department for the unit of local government in which it is located, but may sell products outside of the unit of local government where the cottage food operation is located. A copy of the certificate of registration must be available upon request by any local health department.

(1.5) A cottage food operation shall not sell or offer to sell the following food items or processed foods containing the following food items, except as indicated:

(A) meat, poultry, fish, seafood, or shellfish;

(B) dairy, except as an ingredient in a non-potentially hazardous baked good or candy, such as caramel, subject to paragraph (4), or as an ingredient in a baked good frosting, such as buttercream;

(C) eggs, except as an ingredient in a non-potentially hazardous food, including dry noodles, or as an ingredient in a baked good frosting, such as buttercream, if the eggs are not raw;

(D) pumpkin pies, sweet potato pies, cheesecakes, custard pies, creme pies, and pastries with potentially hazardous fillings or toppings;

(E) garlic in oil or oil infused with garlic, except if the garlic oil is acidified;

(F) low-acid canned foods;

(G) sprouts;

(H) cut leafy greens, except for cut leafy greens that are dehydrated, acidified, or blanched and frozen;

(I) cut or pureed fresh tomato or melon;

(J) dehydrated tomato or melon;

(K) frozen cut melon;

(L) wild-harvested, non-cultivated mushrooms;

(M) alcoholic beverages; or

(N) kombucha.

(1.6) In order to sell canned tomatoes or a canned product containing tomatoes, a cottage food operator shall either:

(A) follow exactly a recipe that has been tested by the United States Department of Agriculture or by a state cooperative extension located in this State or any other state in the United States; or

(B) submit the recipe, at the cottage food operator's expense, to a commercial laboratory according to the commercial laboratory's directions to test that the product has been adequately acidified; use only the varietal or proportionate varietals of tomato included in the tested recipe for all subsequent batches of such recipe; and provide documentation of the annual test results of the recipe submitted under this subparagraph upon registration and to an inspector upon request during any inspection authorized by subsection (d).

(2) In order to sell a fermented or acidified food, a cottage food operation shall either:

(A) submit a recipe that has been tested by the United States Department of Agriculture or a cooperative extension system located in this State or any other state in the United States; or

(B) submit a written food safety plan for each category of products for which the cottage food operator uses the same procedures, such as pickles, kimchi, or hot sauce, and a pH test for a single product that is representative of that category; the written food safety plan shall be submitted annually upon registration and each pH test shall be submitted every 3 years; the food safety plan shall adhere to guidelines developed by the Department.

(3) A fermented or acidified food shall be packaged according to one of the following standards:

(A) A fermented or acidified food that is canned must be processed in a boiling water bath in a Mason-style jar or glass container with a tight-fitting lid.

(B) A fermented or acidified food that is not canned shall be sold in any container that is new, clean, and seals properly and must be stored, transported, and sold at or below 41 degrees.

(4) In order to sell a baked good with cheese, a local health department may require a cottage food operation to submit a recipe, at the cottage food operator's expense, to a commercial laboratory to verify that it is non-potentially hazardous before allowing the cottage food operation to sell the baked good as a cottage food.

(5) For a cottage food operation that does not utilize a municipal water supply, such as an operation using a private well, a local health department may require a water sample test to verify that the water source being used meets public safety standards related to E. coli coliform. If a test is requested, it must be conducted at the cottage food operator's expense.

(6) A person preparing or packaging a product as part of a cottage food operation must be a Department-approved certified food protection manager.

(7) Food packaging must conform with the labeling requirements of the Illinois Food, Drug and Cosmetic Act. A cottage food product shall be prepackaged and the food packaging shall be affixed with a prominent label that includes the following:

(A) the name of the cottage food operation and unit of local government in which the cottage food operation is located;

(B) the identifying registration number provided by the local health department on the certificate of registration and the name of the municipality or county in which the registration was filed;

(C) the common or usual name of the food product;

(D) all ingredients of the food product, including any color, artificial flavor, and preservative, listed in descending order by predominance of weight shown with the common or usual names;

(E) the following phrase in prominent lettering: "This product was produced in a home kitchen not inspected by a health department that may also process common food allergens. If you have safety concerns, contact your local health department.";

(F) the date the product was processed; and

(G) allergen labeling as specified under federal labeling requirements.

(8) Food packaging may include the designation "Illinois-grown", "Illinois-sourced", or "Illinois farm product" if the packaged product is (1) grown in Illinois; or (2) processed and packaged in Illinois, using at least one ingredient grown in Illinois a local farm or food product as that term is defined in Section 5 of the Local Food, Farms, and Jobs Act.

(9) In the case of a product that is difficult to properly label or package, or for other reasons, the local health department of the location where the product is sold may grant permission to sell products that are not prepackaged, in which case other prominent written notice shall be provided to the purchaser.

(10) At the point of sale, notice must be provided in a prominent location that states the following: "This product was produced in a home kitchen not inspected by a health department that may also process common food allergens." At a physical display, notice shall be a placard. Online, notice shall be a message on the cottage food operation's online sales interface at the point of sale.

(11) Food and drink produced by a cottage food operation shall be sold directly to consumers for their own consumption and not for resale. Sales directly to consumers include, but are not limited to, sales at or through:

(A) farmers' markets;

(B) fairs, festivals, public events, or online;

(C) pickup from the private home or farm of the cottage food operator, if the pickup is not prohibited by any law of the unit of local government that applies equally to all cottage food operations; in a municipality with a population of 1,000,000 or more, a cottage food operator shall comply with any law of the municipality that applies equally to all home-based businesses;

(D) delivery to the customer; and

(E) pickup from a third-party private property with the consent of the third-party property holder.

(12) Only food that is non-potentially hazardous may be shipped. A cottage food product shall not be shipped out of State. Each cottage food product that is shipped must be sealed in a manner that reveals tampering, including, but not limited to, a sticker or pop top.

(c) A local health department shall register any eligible cottage food operation that meets the requirements of this Section and shall issue a certificate of registration with an identifying registration number to each registered cottage food operation. A local health department may establish a self-certification program for cottage food operators to affirm compliance with applicable laws, rules, and regulations. Registration shall be completed annually and the local health department may impose a fee not to exceed $50.

(d) In the event of a consumer complaint or foodborne illness outbreak, upon notice from a different local health department, or if the Department or a local health department has reason to believe that an imminent health hazard exists or that a cottage food operation's product has been found to be misbranded, adulterated, or not in compliance with the conditions for cottage food operations set forth in this Section, the Department or the local health department may:

(1) inspect the premises of the cottage food operation in question;

(2) set a reasonable fee for the inspection; and

(3) invoke penalties and the cessation of the sale of cottage food products until it deems that the situation has been addressed to the satisfaction of the Department or local health department; if the situation is not amenable to being addressed, the local health department may revoke the cottage food operation's registration following a process outlined by the local health department.

(e) A local health department that receives a consumer complaint or a report of foodborne illness related to a cottage food operator in another jurisdiction shall refer the complaint or report to the local health department where the cottage food operator is registered.

(f) By January 1, 2022, the Department, in collaboration with local public health department associations and other stakeholder groups, shall write and issue administrative guidance to local health departments on the following:

(1) development of a standard registration form, including, if applicable, a written food safety plan;

(2) development of a Home-Certification Self Checklist Form;

(3) development of a standard inspection form and inspection procedures; and

(4) procedures for cottage food operation workspaces that include, but are not limited to, cleaning products, general sanitation, and requirements for functional equipment.

(g) A person who produces or packages a non-potentially hazardous baked good for sale by a religious, charitable, or nonprofit organization for fundraising purposes is exempt from the requirements of this Section.

(h) A home rule unit may not regulate cottage food operations in a manner inconsistent with the regulation by the State of cottage food operations under this Section. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

(i) The Department may adopt rules as may be necessary to implement the provisions of this Section.

(Source: P.A. 101-81, eff. 7-12-19; 102-633, eff. 1-1-22.)".