H.B. NO.














Relating to cottage foods.





SECTION 1. Many states have cottage food laws that govern home-based food production businesses. These laws allow a person to prepare food products, including baked goods, jams, jellies, preserves, chocolates, and spice rubs from the home kitchen of a domestic residence and sell them directly to consumers. Hawaii is among the few states that does not have some type of cottage food law.

The legislature finds that cottage food laws promote economic recovery and vitality through small business ownership, as well as food security and sustainability by fostering connections between businesses, island-based farmers, and local communities.

The purpose of this Act, therefore, is to establish a cottage food law to allow home-based food production businesses to sell non-potentially hazardous food items directly to consumers if certain conditions are met.

SECTION 2. Chapter 328, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"328-   Cottage food products; exemption. (a) The sale of cottage food products shall be permitted if the cottage food operator:

(1) Is registered with the department pursuant to subsection (d);

(2) Sells the cottage food products directly to consumers; provided that no cottage food operator shall offer any cottage food product for sale to consumers or otherwise via internet transaction;

(3) Takes all reasonable steps to protect the cottage food products intended for sale from contamination during preparation, processing, packaging, storage, handling, and distribution. Reasonable steps include, but are not limited to:

(A) Maintaining direct supervision of any person, other than the cottage food operator, engaged in the processing, preparing, packaging, storing, handling, or distribution of the cottage food product intended for sale;

(B) Prohibiting all animals from entering the area in the dwelling where cottage food products are processed, prepared, packaged, stored, handled, or distributed, and prohibiting all animals from having access to, or coming into contact with, stored ingredients used for cottage food products intended for sale;

(C) Prohibiting all domestic activities in the area while cottage food products intended for sale are being processed, prepared, packaged, handled, or distributed; and

(D) Prohibiting any person infected with a communicable disease, who is a carrier of organisms that can cause a communicable disease, who has an infected wound, or who has an acute respiratory infection, from processing, preparing, packaging, handling, or distributing any cottage food product intended for sale;

(4) Maintains a clean and sanitary facility that has, at minimum:

(A) Access to a municipal water source and proper sewage disposal;

(B) Adequate hand washing facilities;

(C) A separate storage place for all ingredients used in processing or preparing any cottage food product intended for sale;

(D) A properly functioning refrigeration unit;

(E) A properly functioning toilet facility;

(F) A sink with adequate hot water to clean and sanitize all utensils and equipment used by the cottage food business;

(G) Adequate facilities for the storage of utensils and equipment used by the cottage food business; and

(H) No evidence of insect or rodent activity;

(5) Labels all cottage food products sold pursuant to this section with:

(A) The name and address of the cottage food operator;

(B) The name of the cottage food product being sold;

(C) The date the cottage food product was produced;

(D) The ingredients used to make the cottage food product, in descending order of predominance by weight; and

(E) The following statements, in clear and conspicuous print:

(i) "This food product is home-produced and processed."; and

(ii) "This food product was not produced or packaged in a Department of Health-inspected facility.";

(6) Ensures that all individuals engaged in processing, preparing, packaging, handling, or distributing any cottage food product intended for sale are knowledgeable of and follow safe food handling practices; and

(7) Complies with all rules adopted by the department to protect the health and safety of the public.

(b) In the event of a foodborne illness or foodborne illness outbreak resulting from a cottage food product, the department shall require the cottage food operator who produced the cottage food product to immediately cease all operations and sales.

(c) A cottage food operator shall complete a department-sanctioned online course in food safety prior to selling any cottage food product. The online course shall provide a certificate or other certification of completion. The certification shall be renewed at least every five years.

(d) Prior to selling a cottage food product, a cottage food operator shall register with the department. To become registered, a cottage food operator shall provide the department with the following information by application on a form and in a manner to be determined by the department:

(1) The business name and home address of the cottage food operator;

(2) A list of all cottage food products the cottage food operator intends to produce for sale; and

(3) Proof that the cottage food operator has completed a department-sanctioned online course in food safety pursuant to subsection (c).

The department may charge a reasonable application and registration fee to oversee the requirements of this section; provided that fees collected shall be used solely to administer this section.

(e) The department shall adopt rules pursuant to Hawaii Revised Status chapter 91 to effectuate the purpose of this section. Such rules shall include, but not be limited to procedures for the application and registration of cottage food operators, a list of non-potentially hazardous foods that may be produced and sold under this section, and procedures to address the outbreak of a foodborne illness resulting from cottage food products.

(f) As used in this section, unless the context clearly indicates otherwise:

"Cottage food operator" means a person who produces cottage food products in the home kitchen of that person's primary domestic residence in Hawaii and only for sale directly to the consumer, and whose net earnings from the sale of the cottage food product are more than $5,000 but less than $50,000 a year.

"Cottage food product" means non-potentially hazardous baked goods, jams, jellies, preserves, chocolates, and other non-potentially hazardous foods as determined by the director, that are produced in a home kitchen.

"Domestic residence" means a single-family home, condominium unit, or area within a rental unit where a single person or family actually reside, but does not include any group or communal residential setting within any type of structure or an outbuilding, shed, barn, or other similar structure.

"Home kitchen" means a kitchen primarily intended for use by residents of a domestic residence that may contain one or more stoves or ovens, including a double oven, designed for residential use. Home kitchens shall not include commercial types of equipment.

"Non-potentially hazardous food" includes foods with a low water activity and high acid level that inhibits the growth of pathogenic or toxigenic microorganisms, including Clostridium botulinum."

SECTION 3. The department of health shall adopt the rules required by this Act no later than December 31, 2015.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on January 1, 2016.










Report Title:

Cottage Foods; Home Kitchen Based Businesses; Exemptions




Provides an exemption from Department of Health rules to certain cottage food products sold directly to consumers under certain conditions. Requires the Department of Health to adopt rules no later than December 31, 2015. Effective January 1, 2016.





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