HOUSE OF REPRESENTATIVES

H.B. NO.

1992

TWENTY-SEVENTH LEGISLATURE, 2014

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

Relating to cottage foods.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"46‑   Cottage food operations; permitted use in residential areas. (a) For the purposes of zoning, a cottage food operation shall be considered a residential use of property and shall be a permitted use in all residentially designated zones, including but not limited to zones for single-family dwellings. No conditional use permit, variance, or special exception shall be required for residences used as a cottage food operation.

(b) For purposes of this section, "cottage food operation" has the same meaning as defined in section 328-A."

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

"Part    . cottage food operations

328-A Definitions. For purposes of this part, the following definitions shall apply:

"Cottage food employee" means an individual, paid or volunteer, who is involved in the preparation, packaging, handling, and storage of a cottage food product, or who otherwise works for the cottage food operation. A cottage food employee does not include an immediate family member or household member of the cottage food operator.

"Cottage food operation" means an enterprise that is operated by a cottage food operator, has no more than one full-time equivalent cottage food employee within the registered or permitted area of a private home, and produces cottage food products only in the home kitchen of the cottage food operator's private home for sale to consumers pursuant to this part.

"Cottage food operator" means an individual who operates a cottage food operation in the individual's private home and who is the owner of the cottage food operation.

"Cottage food products" means non potentially hazardous foods, including foods described in section 328-E and prepared for sale in the home kitchen of a cottage food operation.

"Department" means the department of health.

"Direct sale" means a transaction between a cottage food operator and a consumer, where the consumer purchases the cottage food product directly from the cottage food operation. The term includes but is not limited to transactions at holiday bazaars, bake sales, food swaps, or other temporary events; transactions at farm stands; farmers' markets; or transactions occurring in person in the cottage food operation.

"Home kitchen" means a kitchen designed and intended for use by the residents of a private home but also used by a cottage food operator for the production of cottage food products. A home kitchen may contain one or more stoves or ovens designed for residential use but shall not include commercial types of equipment typically used for large wholesale manufacturing.

"Indirect sale" means an interaction between a cottage food operator, a third-party retailer, and a consumer, where the consumer purchases cottage food products made by the cottage food operation from a third party who holds a food establishment permit issued by the department. The term includes but is not limited to sales made to retail shops or retail food establishments where food may be immediately consumed on the premises.

"Private home" means a dwelling, including an apartment or other leased space, where individuals reside.

"Registered or permitted area" means the portion of a private home that contains the private home's home kitchen used for the preparation, packaging, storage, or handling of cottage food products and related ingredients or equipment, or both, and attached rooms within the home that are used exclusively for storage.

328-B Requirements for cottage food operations. (a) A cottage food operation shall not be required to obtain a food establishment permit from the department and shall not operate as a food establishment or retail or wholesale food manufacturer.

(b) A cottage food operation shall have no more than $50,000 in gross annual sales in each calendar year.

(c) A cottage food operation shall be registered a class A cottage food operation, subject to the requirements under section 328-C, or permitted as a class B cottage food operation, subject to the requirements under section 328-D.

(d) A cottage food operation that is registered or has a permit issued pursuant to this part shall be considered a restricted food establishment and subject to rules relating to food establishment sanitation as determined and adopted by the department.

(e) The department shall establish requirements for the self-certification checklist for cottage food operations, including preparation, packaging, and handling of cottage food products in the home kitchen; equipment and utensils; and sanitation.

(f) A cottage food operator or cottage food employee who prepares or packages cottage food products in a cottage food operation shall complete a food safety workshop or class offered by the department within four months of the cottage food operation becoming registered or obtaining a permit.

(g) The department shall post the requirements for class A and class B cottage food operations on its website.

328-C Class A cottage food operations; requirements. (a) A class A food operation may engage only in direct sales of cottage food products from the cottage food operation or other direct sales venues.

(b) The following requirements apply to class A cottage food operations:

(1) A class A cottage food operation shall not be open for business unless the class A cottage food operation has registered with the department and has submitted a completed self-certification checklist approved by the department. The self-certification checklist shall verify that the class A cottage food operation conforms to this part and any rules adopted pursuant to this part;

(2) Except as provided in section 328-F, a class A cottage food operation shall not be subject to initial or routine inspections; and

(3) The department shall issue a registration number to a class A cottage food operation that meets the requirements of this section.

328-D Class B cottage food operations; requirements. (a) A class B food operation may engage in direct sales and indirect sales of cottage food products from the cottage food operation, direct sales venues, or a food establishment with a valid permit issued by the department.

(b) The following requirements apply to class B cottage food operations:

(1) A class B cottage food operation shall not be open for business unless it obtains a permit from the department to engage in the direct and indirect sales of cottage food products and has submitted a completed self-certification checklist approved by the department. The self-certification checklist shall verify that the class B cottage food operation conforms to this part and any rules adopted pursuant to this part;

(2) The department shall issue a permit after an initial inspection has determined that the proposed class B cottage food operation and its method of operation conform to this part; provided that access to the private home for the initial inspection under this paragraph is limited to the proposed registered or permitted area and solely for the purpose of ensuring conformity to this part;

(3) Except as provided in section 328-H, a class B cottage food operation shall not be subject to more than one inspection per year by the department; and

(4) A class B cottage food operation shall be authorized to engage in the indirect sales of cottage food products within the county in which the class B cottage food operation is permitted.

328-E Approved cottage food products. (a) The department shall adopt and post on its website a list of non potentially hazardous foods and their variations that are approved for sale by a cottage food operation.

(b) The list of non potentially hazardous foods shall be known as the approved cottage food products list and shall include but not be limited to:

(1) Baked goods without cream, custard, or meat fillings;

(2) Candy;

(3) Chocolate-covered nonperishable foods, such as nuts and dried fruit;

(4) Dried fruit;

(5) Dried pasta;

(6) Dry baking mixes;

(7) Dry herbs, herb blends, and seasoning blends;

(8) Fruit pies;

(9) Granola, dry cereal, and trail mixes;

(10) Honey from a home-based agricultural producer of honey;

(11) Jams, jellies, preserves, and fruit butter that comply with the standard described in 21 C.F.R. Part 150;

(12) Nut mixes and nut butters;

(13) Popcorn;

(14) Roasted coffee and dried tea;

(15) Vinegar and mustard; and

(16) Waffle cones and pizelles.

(c) The department may add or delete food products to or from the approved cottage food products list described in subsection (b). Notice of any change to the approved cottage food products list shall be posted on the department's website. Any change to the approved cottage food products list shall become effective thirty days after the notice is posted. The notice shall state the reason for the change, the authority for the change, and the nature of the change. The notice shall allow at least twenty days for comments to be submitted and shall indicate the physical address or electronic mail address to which comments are to be submitted and the deadline by which the comments are required to be received by the department. The department shall consider all comments submitted before the due date. The department may withdraw the proposed change at any time by notification on the department's website or through notification by other electronic means. The approved cottage food products list and any updates shall not be subject to the requirements of chapter 91.

328-F Labeling requirements for cottage food operations. (a) A cottage food operation shall label each cottage food product and include on the label the following:

(1) The words "Made in a Home Kitchen" in at least twelve point type, displayed in a conspicuous place on the principal display area of the packaging or container;

(2) The common name of the cottage food product;

(3) The name and address of the cottage food operation that produced the cottage food product;

(4) The ingredients of the cottage food product, in descending order of predominance by weight, if the product contains two or more ingredients;

(5) The net weight or net volume of the cottage food product;

(6) Allergen information, if required, as specified in section 403 of the federal Food, Drug, and Cosmetic Act (21 U.S.C. 343); and

(7) Nutrition labeling, if required, as specified in 21 C.F.R. Part 101.

(b) Cottage food products identified and labeled pursuant to subsection (a) are acceptable cottage food products that may be sold by a class B cottage food operation in an indirect sale via a retail shop or retail food establishment.

328-G Prohibitions. A cottage food operation shall not process acidified foods, low acid canned foods, or potentially hazardous foods; offer for sale adulterated or misbranded food; refuse an inspection or the taking of samples as authorized by section 328-H or by rule; produce or sell food items not appearing on the approved cottage food products list; or sell cottage food products outside the State of Hawaii.

328-H Inspections; food sampling. (a) If the department receives a consumer complaint about a cottage food operation or cottage food product, the department may access, for inspection purposes, the registered or permitted area of a private home where a cottage food operation is located to determine if the cottage food product is misbranded or adulterated or if the cottage food operation is in violation of this part.

(b) The department may conduct food sampling of the cottage food product as part of the inspection.

(c) Access to the private home under this section is limited to the registered or permitted area and solely for the purpose of enforcing or administering this part.

(d) The department may seek recovery from a cottage food operation of an amount not to exceed the department's reasonable costs of inspecting the cottage food operation if the cottage food operation is found to be in violation of this part.

(e) The department shall adopt rules establishing procedures for the inspection of cottage food operations and standards for food sampling of cottage food products."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Cottage Food; Cottage Food Operations; Permits; Registration

 

Description:

Permits the cottage food industry in Hawaii. Establishes requirements for cottage food operators, cottage food operations, and cottage food products. Permits class A cottage food operations to engage in direct sales of cottage food products and permits class B cottage food operations to engage in direct and indirect sales of cottage food products.

 

 

 

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