SF 2715

as introduced - 90th Legislature (2017 - 2018) Posted on 02/27/2018 09:09am

A bill for an act
relating to food safety; expanding cottage foods license exemption to include
limited liability companies; eliminating gross sales limit; requiring limited liability
companies to maintain certain liability insurance; amending Minnesota Statutes
2016, section 28A.152, as amended.

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

Section 1.

Minnesota Statutes 2016, section 28A.152, as amended by Laws 2017, chapter
88, article 2, section 53, is amended to read:

28A.152 COTTAGE FOODS EXEMPTION.

Subdivision 1.

Licensing provisions applicability.

(a) The licensing provisions of
sections 28A.01 to 28A.16 do not apply to the following:

(1) an deleted text begin individual who deleted text end new text begin eligible entity that new text end prepares and sells food that is not potentially
hazardous food, as defined in Minnesota Rules, part 4626.0020, subpart 62, if the following
requirements are met:

(i) the prepared food offered for sale under this clause is labeled to accurately reflect
the name and address of the deleted text begin individual deleted text end new text begin eligible entity new text end preparing and selling the food, the
date on which the food was prepared, and the ingredients and any possible allergens; and

(ii) the deleted text begin individual deleted text end new text begin eligible entity new text end displays at the point of sale a clearly legible sign or
placard stating: "These products are homemade and not subject to state inspection."; and

(2) an deleted text begin individual who deleted text end new text begin eligible entity that new text end prepares and sells home-processed and
home-canned food products if the following requirements are met:

(i) the products are pickles, vegetables, or fruits having an equilibrium pH value of 4.6
or lower;

(ii) the products are home-processed and home-canned in Minnesota;

(iii) the deleted text begin individual deleted text end new text begin eligible entity new text end displays at the point of sale a clearly legible sign or
placard stating: "These canned goods are homemade and not subject to state inspection.";
and

(iv) each container of the product sold or offered for sale under this clause is accurately
labeled to provide the name and address of the deleted text begin individual who deleted text end new text begin eligible entity that new text end processed
and canned the goods, the date on which the goods were processed and canned, and
ingredients and any possible allergens.

(b) An deleted text begin individual who deleted text end new text begin eligible entity that new text end qualifies for an exemption under paragraph
(a), clause (2), is also exempt from the provisions of sections 31.31 and 31.392.

new text begin Subd. 1a. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "eligible entity" means a limited
liability company that satisfies the insurance requirements under subdivision 8, or an
individual.
new text end

Subd. 2.

Direct sales to consumers.

(a) An deleted text begin individual deleted text end new text begin eligible entity new text end qualifying for an
exemption under subdivision 1 may sell the exempt food:

(1) directly to the ultimate consumer at a community event or farmers' market;

(2) directly from the deleted text begin individual's deleted text end new text begin eligible entity's new text end home to the ultimate consumer, to the
extent allowed by local ordinance; or

(3) through donation to a community event with the purpose of fund-raising for an
individual, or fund-raising for an educational, charitable, or religious organization.

(b) If an exempt food product will be delivered to the ultimate consumer upon sale of
the food product, the deleted text begin individual who deleted text end new text begin eligible entity that new text end prepared the food product must be
the person who delivers the food product to the ultimate consumer.

(c) Food products exempt under subdivision 1, paragraph (a), clause (2), may not be
sold outside of Minnesota.

(d) Food products exempt under subdivision 1 may be sold over the Internet but must
be delivered directly to the ultimate consumer by the deleted text begin individual who deleted text end new text begin eligible entity that new text end
prepared the food product. The statement "These products are homemade and not subject
to state inspection." must be displayed on the Web site that offers the exempt foods for
purchase.

deleted text begin Subd. 3. deleted text end

deleted text begin Limitation on sales. deleted text end

deleted text begin An individual selling exempt foods under this section is
limited to total sales with gross receipts of $18,000 or less in a calendar year.
deleted text end

Subd. 4.

Registration.

An deleted text begin individual who deleted text end new text begin eligible entity that new text end prepares and sells exempt
food under subdivision 1 must register annually with the commissioner. The annual
registration fee is $50. An deleted text begin individual deleted text end new text begin eligible entity new text end with $5,000 or less in annual gross
receipts from the sale of exempt food under this section is not required to pay the registration
fee.

Subd. 5.

Training.

(a) An deleted text begin individual deleted text end new text begin eligible entity new text end with gross receipts between $5,000
and $18,000 in a calendar year from the sale of exempt food under this section must complete
a safe food handling training course that is approved by the commissioner before registering
under subdivision 4. The training shall not exceed eight hours and must be completed every
three years while the deleted text begin individual deleted text end new text begin eligible entity new text end is registered under subdivision 4.

(b) An deleted text begin individual deleted text end new text begin eligible entity new text end with gross receipts of less than $5,000 in a calendar
year from the sale of exempt food under this section must satisfactorily complete an online
course and exam as approved by the commissioner before registering under subdivision 4.
The commissioner shall offer the online course and exam under this paragraph at no cost
to the deleted text begin individual deleted text end new text begin eligible entity new text end .

Subd. 6.

Local ordinances.

This section does not preempt the application of any business
licensing requirement or sanitation, public health, or zoning ordinance of a political
subdivision.

Subd. 7.

Account established.

A cottage foods account is created as a separate account
in the agricultural fund in the state treasury for depositing money received by the
commissioner under this section. Money in the account, including interest, is appropriated
to the commissioner for purposes of this section.

new text begin Subd. 8. new text end

new text begin Insurance required. new text end

new text begin The commissioner must not register a limited liability
company under subdivision 4 unless the limited liability company furnishes sufficient proof
that it maintains liability insurance coverage of at least $1,000,000. The insurance must
cover a period of time at least equal to the term of the registration. The commissioner must
immediately suspend the registration of a limited liability company that fails to maintain
the required insurance. The insurance policy must contain a provision requiring the insurance
company to notify the commissioner no later than ten days before the effective date of any
cancellation, termination, or other material change to the insurance coverage. If there is
recovery against the insurance, the limited liability company must secure additional coverage
if necessary to maintain coverage of at least $1,000,000.
new text end