1. Executive Summary
Indiana HB 1424 bill repeals existing home-based vendor regulations and prohibits state and local health entities from establishing non-federal licensing, certification, or rule requirements on small farms and homestead vendors under the governing authority of the Indiana General Assembly.
2. What This Bill Would Do
[SECTION 8] Exempts a person who is a homestead vendor or who operates a small farm from all food establishment requirements under IC 16-42-5. Currently, food establishments are regulated under IC 16-42-5. This provision removes these two categories of producers from state food establishment oversight.
[SECTION 9] Repeals IC 16-42-5.3 in its entirety. Currently, this chapter establishes regulations for home-based food products. This provision eliminates the existing state regulatory structure for home-based vendors.
[SECTION 10, Sec. 5] Prohibits the Indiana Department of Health, local units of government, the Health and Hospital Corporation of Marion County, and local health departments from imposing rules, regulations, certifications, or licensing mandates on homestead vendors or small farms unless required by federal law. Currently, state and local authorities maintain independent public health rulemaking power. This provision prohibits specified state and local entities from imposing rules, certifications, or licensing requirements not required under federal law.
[SECTION 10, Sec. 6] Permits homestead vendors or small farm owners to sell meat products (from specified livestock raised at their primary residence and processed under compliance with IC 15-17-5), prepared foods, baked goods, candy, produce, natural sweeteners, and fruit spreads on their premises. Currently, direct on-premise sale of certain home-processed livestock products is restricted under requirements under IC 16-42-5. This provision permits direct on-premises sales of these products. Note: Implementation details are subject to agency rulemaking and require human review.
[SECTION 11] Adds a new section exempting public buildings located on a homestead vendor's or small farm's property from specific public building regulations. Currently, public buildings are subject to state safety mandates under IC 22-11-17. This provision removes those structural and regulatory mandates from these properties by exempting them from rules adopted by the Fire Prevention and Building Safety Commission.
3. Who is Affected
Homestead Vendors
If bill passes: They may prepare and sell food products from their property without state or local licensing, rules, or certifications, provided their annual gross sales do not exceed $1,500,000. They must adhere to required label or signage provisions, ensure meat products are kept refrigerated, and are prohibited from shipping products to end consumers outside Indiana.
If bill does not pass: Their operations remain governed by existing home-based vendor regulations under IC 16-42-5.3.
Governing Section: SECTION 1, SECTION 2, SECTION 7, SECTION 8, SECTION 10, and SECTION 11.
Small Farms / Small Farm Owners
If bill passes: Owners of land used for growing crops or raising livestock with annual gross sales under $1,500,000 may prepare and sell food products, produce, and eligible meat products directly from their premises without state or local licensing or inspections. They must fulfill identical consumer notification labeling requirements and refrigeration obligations as homestead vendors.
If bill does not pass: They remain subject to existing licensing requirements, inspection protocols, and commercial processing regulations.
Governing Section: SECTION 1, SECTION 5, SECTION 7, SECTION 8, SECTION 10, and SECTION 11.
Indiana Department of Health & Executive Board
If bill passes: The executive board (the governing board overseeing Indiana Department of Health rulemaking) is restricted from applying its public health rules regarding time temperature control for safety food to homestead vendors and small farms. The agency is required to amend its affected rules before December 31, 2026, to conform to the elimination of home-based vendor regulations and the introduction of homestead vendor and small farm exemptions.
If bill does not pass: The agency maintains its current scope of regulatory oversight and rulemaking authority regarding home-based food operations and food safety parameters.
Governing Section: SECTION 1, SECTION 6, SECTION 7, and SECTION 12.
Local Units of Government, Local Health Departments, and the Health and Hospital Corporation of Marion County
If bill passes: These entities are prohibited from enacting or enforcing local rules, registration fees, certifications, or licensing rules on homestead vendors and small farms that are not required under federal law.
If bill does not pass: Local health jurisdictions retain their authority to regulate, license, and inspect local home-based food handlers and retail operations under existing state law definitions.
Governing Section: SECTION 10 (Sec. 5).
Fire Prevention and Building Safety Commission
If bill passes: The commission loses its regulatory and rule enforcement authority over public buildings situated on a homestead vendor's or small farm's property.
If bill does not pass: Buildings on these properties remain subject to rules and enforcement authority under IC 22-11-17.
Governing Section: SECTION 11.
End Consumers / Food Buyers
If bill passes: Consumers purchasing products directly from qualifying homestead vendors or small farms would buy items not inspected by state or local health departments. The bill requires disclosure labeling to notify consumers that products are exempt from government licensing and inspection via a 10-point type label or sign reading: "This product was produced by a homestead vendor or the owner of a small farm that is exempt from government licensing and inspection." Homestead vendors may not ship or deliver food products to end consumers located outside Indiana.
If bill does not pass: Consumers purchase food items regulated under existing licensing requirements and retail food inspection structures.
Governing Section: SECTION 10 (Sec. 6, Sec. 7).
4. Existing Law vs. What Would Change
Current Law or Condition | What This Bill Changes |
IC 16-18-2-137: "Food establishment" includes buildings, rooms, basements, vehicles, cellars, or areas used for handling food, excluding specified dwellings, tax-exempt organizations, or certain permit holders. | SECTION 1 (IC 16-18-2-137(b)(8)-(9)): Modifies the exclusions to remove a "homestead vendor" and a "small farm" from the statutory definition of a food establishment. |
IC 16-19-3-4: Authorizes the executive board of the state department to adopt public health rules governing the production, distribution, sale of human food, and time temperature control for safety food. | SECTION 7 (IC 16-19-3-4(g)): Restricts rules regarding time temperature control for safety food from applying to a homestead vendor or a small farm. |
IC 16-42-5: Imposes state sanitation, licensing, and operational requirements on food establishments handling items for human consumption. | SECTION 8 (IC 16-42-5-0.2): Exempts a person who is a homestead vendor or who operates a small farm from all requirements within the chapter. |
IC 16-42-5.3: Directs and controls home-based food product vendors, setting parameters for what items can be produced and how they are monitored. | SECTION 9 (IC 16-42-5.3): Repeals the entirety of the existing home-based food products regulatory framework. |
IC 22-11-17: Establishes structural safety and public building regulations overseen by the Fire Prevention and Building Safety Commission. | SECTION 11 (IC 22-11-17-1.5): Exempts any public building situated on a homestead vendor's or small farm's property from the chapter and its agency rules. |
5. Fiscal Impact Summary
No CBO score or official fiscal note is currently available for this legislation. Fiscal impact cells are left blank pending official scoring
6. Household Impact Matrix
Analysis for a household earning $35,000 to $100,000 (Median range for rural Ohio/Appalachian communities).
Metric | If Bill Passes | If Bill Fails or Status Quo Continues |
Household Overhead | Insufficient primary source data — pending official analysis. | Current household cost impacts under existing law are not quantified in the provided source documents. |
Market Stability | Modifies operational conditions by removing state and local licensing, registration, and inspection compliance fees for qualifying home and farm operations grossing not more than $1,500,000 annually. Authorizes direct on-premises consumer sales of processed meats, produce, and baked goods. Prohibits shipment or delivery of food products by homestead vendors to consumers located outside Indiana. | Existing food establishment and home-based vendor regulations remain in effect under current law. |
Local Government Impact | Eliminates local health department authority to enforce distinct local food safety regulations, compliance certifications, or health licensing programs on qualifying homesteads or small farms unless required under federal guidelines. | Current funding levels and regulatory authority remain unchanged under existing law. Local health units retain inspection and licensing fees collected from home food operations. |
7. Provisions Requiring Review
Section 10 (Sec. 5) contains a delegation of authority to external standards. Reason for review flag: The provision states that state and local units may not impose rules "that are not required under federal law." The bill refers to federal law but does not identify which federal rules apply. Additional legal review is needed to determine which federal food safety laws would control. Recommended action: Verify against federal food safety acts and consult legal counsel to map exactly which federal laws currently mandate standards for small farms and home properties before publication.
Section 10 (Sec. 6, Subdivision 1, Clause B) contains conditional compliance language. Reason for review flag: The bill references IC 15-17-5, but that statute is not included in the provided materials. Additional review is needed to determine whether that law requires state inspections. Recommended action: Verify against the current text of IC 15-17-5 to determine if that chapter forces state-level inspection protocols for custom slaughtering.
Section 11 (Sec. 1.5) contains a structural ambiguity regarding property usage definitions. Reason for review flag: The text exempts "A public building located on a... homestead vendor's... or small farm's property" from rules adopted by the Fire Prevention and Building Safety Commission. The term "public building" is not defined within the text of the bill, creating ambiguity regarding whether a commercial storefront built on private farm property completely bypasses structural fire and safety codes. Recommended action: Verify against the definition codes of IC 22-11-17 to track the precise legal definitions of "public building."
8. What This Bill Does Not Do
The bill text does not contain provisions related to the legalization, inspection, or commercial distribution of unpasteurized milk or raw dairy items. Public discussion frequently associates food freedom and small farm deregulation bills with the sale of raw milk. No such provision appears in House Bill 1424 as engrossed.
The bill text does not contain provisions related to restaurants, commercial grocery stores, or food trucks. Public discussion regarding food safety rules often raises concerns over general retail dining sanitation. No such provision appears in House Bill 1424; restaurants and food establishments remain subject to existing sanitary regulations under IC 16-42-5.
The bill text does not contain provisions related to international trade or interstate internet commerce. Public discussion sometimes references the ability of home businesses to scale nationwide via online platforms. House Bill 1424 explicitly prohibits homestead vendors from shipping or delivering food products to any consumer located outside the boundaries of the State of Indiana.
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