HF1954

Purpose of the Bill

The bill aims to amend existing regulations relating to the cottage foods exemption in Minnesota. It seeks to update the conditions under which individuals can sell homemade food products without a license and introduces a reporting requirement to the legislature.

Main Provisions

• Cottage Food Sales Exemption: Individuals making and selling non-potentially hazardous homemade foods, such as canned or baked goods, are exempt from certain state licensing requirements. These foods must not require time and temperature control for safety.
• Labeling Requirements: Sellers must label products with the preparer's name, registration number, preparation date, ingredients, allergens, and a disclaimer stating the products are homemade and not state-inspected.
• Sales Methods: Exempt foods can be sold directly to consumers at places like farmers markets or through direct home sales, as allowed by local laws. Sales over the internet are allowed but must ensure direct delivery by the preparer.
• Sales Limitation and Registration Fee: The total sales for a cottage foods business are capped at $85,000 annually. Registrants with annual gross receipts below $8,500 are exempt from paying the $50 registration fee.

Significant Changes to Existing Law

• Increase in Sales Limit: The cap on annual gross receipts for exempt cottage foods producers was increased from $78,000 to $85,000.
• Registration Fee Exemption: The threshold for exemption from paying the registration fee increased from $5,000 to $8,500 in gross receipts.
• Biennial Report to Legislature: The bill mandates a biennial report to the legislature starting January 10, 2026. The report will cover changes in sales and fee limits, and it includes inflation adjustments based on the Consumer Price Index.

Relevant Terms

• Cottage foods
• Homemade
• Non-potentially hazardous food
• Licensing exemption
• Farmers market
• Direct consumer sales
• Registration fee
• Gross receipts limit
• Inflation adjustment
• Consumer Price Index