SF 3131

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/24/2023 08:25am

A bill for an act
relating to agriculture; creating a microenterprise home kitchen operation license;
appropriating money; amending Minnesota Statutes 2022, sections 28A.03, by
adding a subdivision; 28A.04, subdivision 1; 28A.05; 28A.08, subdivision 3; 31.04;
34A.01, subdivision 1; 34A.04, subdivision 1; proposing coding for new law as
Minnesota Statutes, chapter 31C.

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

Section 1.

Minnesota Statutes 2022, section 28A.03, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Microenterprise home kitchen operation. new text end

new text begin "Microenterprise home kitchen
operation" has the meaning given in section 31C.01, clause (3).
new text end

Sec. 2.

Minnesota Statutes 2022, section 28A.04, subdivision 1, is amended to read:

Subdivision 1.

Application; date of issuance.

(a) No person shall engage in the business
of manufacturing, processing, selling, handling, or storing food without having first obtained
from the commissioner a license for doing such business. Applications for such license shall
be made to the commissioner in such manner and time as required and upon such forms as
provided by the commissioner and shall contain the name and address of the applicant,
address or description of each place of business, and the nature of the business to be
conducted at each place, and such other pertinent information as the commissioner may
require.

(b) A retail or wholesale food handler license shall be issued for the period July 1 to
June 30 following and shall be renewed thereafter by the licensee on or before July 1 each
year, except that:

(1) licenses for all mobile food concession units and retail mobile units must be issued
for the period April 1 to March 31, and must be renewed thereafter by the licensee on or
before April 1 each year; and

(2) a license issued for a temporary food concession stand must have a license issuance
and renewal date consistent with appropriate statutory provisions.

(c) A custom exempt food handler license shall be issued for the period July 1 to June
30 following and shall be renewed thereafter by the licensee on or before July 1 each year.
The custom exempt food handler license is for businesses that only conduct custom exempt
operations and mark all products as "Not For Sale." Food handlers that conduct retail exempt
operations or other operations other than custom exempt processing or slaughter are not
eligible for this license.

(d) A license for a food broker or for a food processor or manufacturer shall be issued
for the period January 1 to December 31 following and shall be renewed thereafter by the
licensee on or before January 1 of each year, except that a license for a wholesale food
processor or manufacturer operating only at the state fair shall be issued for the period July
1 to June 30 following and shall be renewed thereafter by the licensee on or before July 1
of each year. A penalty for a late renewal shall be assessed in accordance with section
28A.08.

new text begin (e) A microenterprise home kitchen operation license must be issued for the period of
January 1 to December 31 following application and may be renewed annually. The
commissioner must issue the license within 30 calendar days after receiving the application.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end A person applying for a new license up to 14 calendar days before the effective
date of the new license period under paragraph (b) new text begin or (e) new text end must be issued a license for the
14 days and the next license year as a single license and pay a single license fee as if the
14 days were part of the upcoming license period.

Sec. 3.

Minnesota Statutes 2022, section 28A.05, is amended to read:

28A.05 CLASSIFICATION.

All persons required to have a license under section 28A.04 shall be classified into one
of the following classes of food handlers, according to their principal mode of business.

(a) Retail food handlers are persons who sell or process and sell food directly to the
ultimate consumer or who custom process meat or poultry. The term includes a person who
sells food directly to the ultimate consumer through the use of vending machines, and a
person who sells food for consumption on site or off site if the sale is conducted on the
premises that are part of a grocery or convenience store operation.

(b) Wholesale food handlers are persons who sell to others for resale. A person who
handles food in job lots (jobbers) is included in this classification.

(c) Wholesale food processors or manufacturers are persons who process or manufacture
raw materials and other food ingredients into food items, or who reprocess food items, or
who package food for sale to others for resale, or who commercially slaughter animals or
poultry. Included herein are persons who can, extract, ferment, distill, pickle, bake, freeze,
dry, smoke, grind, mix, stuff, pack, bottle, recondition, or otherwise treat or preserve food
for sale to others for resale, cold storage warehouse operators as defined in section 28.01,
subdivision 3, salvage food processors as defined in section 31.495, subdivision 1, and dairy
plants as defined in section 32D.01, subdivision 6.

(d) Custom exempt food handlers are persons who only conduct custom exempt
processing as defined in section 31A.02, subdivision 5. A retail or wholesale transaction
may not take place in a facility operated by a person with a custom exempt food handler
license.

(e) A food broker is a person who buys and sells food and who negotiates between a
buyer and a seller of food, but who at no time has custody of the food being bought and
sold.

new text begin (f) A microenterprise home kitchen operation is a person who exclusively prepares food
at a residence according to chapter 31C.
new text end

Sec. 4.

Minnesota Statutes 2022, section 28A.08, subdivision 3, is amended to read:

Subd. 3.

Fees effective July 1, deleted text begin 2003 deleted text end new text begin 2023 new text end .

				Penalties
	Type of food handler		License Fee Effective July 1, 2003	Late Renewal	No License
1.	Retail food handler or custom exempt food handler
	(a) Having gross sales of only prepackaged nonperishable food of less than $15,000 for the immediately previous license or fiscal year and filing a statement with the commissioner		$ 50	$ 17	$ 33
	(b) Having under $15,000 gross sales or service including food preparation or having $15,000 to $50,000 gross sales or service for the immediately previous license or fiscal year		$ 77	$ 25	$ 51
	(c) Having $50,001 to $250,000 gross sales or service for the immediately previous license or fiscal year		$155	$ 51	$102
	(d) Having $250,001 to $1,000,000 gross sales or service for the immediately previous license or fiscal year		$276	$ 91	$182
	(e) Having $1,000,001 to $5,000,000 gross sales or service for the immediately previous license or fiscal year		$799	$264	$527
	(f) Having $5,000,001 to $10,000,000 gross sales or service for the immediately previous license or fiscal year		$1,162	$383	$767
	(g) Having $10,000,001 to $15,000,000 gross sales or service for the immediately previous license or fiscal year		$1,376	$454	$908
	(h) Having $15,000,001 to $20,000,000 gross sales or service for the immediately previous license or fiscal year		$1,607	$530	$1,061
	(i) Having $20,000,001 to $25,000,000 gross sales or service for the immediately previous license or fiscal year		$1,847	$610	$1,219
	(j) Having over $25,000,001 gross sales or service for the immediately previous license or fiscal year		$2,001	$660	$1,321
2.	Wholesale food handler
	(a) Having gross sales or service of less than $25,000 for the immediately previous license or fiscal year		$ 57	$ 19	$ 38
	(b) Having $25,001 to $250,000 gross sales or service for the immediately previous license or fiscal year		$284	$ 94	$187
	(c) Having $250,001 to $1,000,000 gross sales or service from a mobile unit without a separate food facility for the immediately previous license or fiscal year		$444	$147	$293
	(d) Having $250,001 to $1,000,000 gross sales or service not covered under paragraph (c) for the immediately previous license or fiscal year		$590	$195	$389
	(e) Having $1,000,001 to $5,000,000 gross sales or service for the immediately previous license or fiscal year		$769	$254	$508
	(f) Having $5,000,001 to $10,000,000 gross sales or service for the immediately previous license or fiscal year		$920	$304	$607
	(g) Having $10,000,001 to $15,000,000 gross sales or service for the immediately previous license or fiscal year		$990	$327	$653
	(h) Having $15,000,001 to $20,000,000 gross sales or service for the immediately previous license or fiscal year		$1,156	$381	$763
	(i) Having $20,000,001 to $25,000,000 gross sales or service for the immediately previous license or fiscal year		$1,329	$439	$877
	(j) Having over $25,000,001 or more gross sales or service for the immediately previous license or fiscal year		$1,502	$496	$991
3.	Food broker		$150	$ 50	$ 99
4.	Wholesale food processor or manufacturer
	(a) Having gross sales or service of less than $125,000 for the immediately previous license or fiscal year		$169	$ 56	$112
	(b) Having $125,001 to $250,000 gross sales or service for the immediately previous license or fiscal year		$392	$129	$259
	(c) Having $250,001 to $1,000,000 gross sales or service for the immediately previous license or fiscal year		$590	$195	$389
	(d) Having $1,000,001 to $5,000,000 gross sales or service for the immediately previous license or fiscal year		$769	$254	$508
	(e) Having $5,000,001 to $10,000,000 gross sales or service for the immediately previous license or fiscal year		$920	$304	$607
	(f) Having $10,000,001 to $15,000,000 gross sales or service for the immediately previous license or fiscal year		$1,377	$454	$909
	(g) Having $15,000,001 to $20,000,000 gross sales or service for the immediately previous license or fiscal year		$1,608	$531	$1,061
	(h) Having $20,000,001 to $25,000,000 gross sales or service for the immediately previous license or fiscal year		$1,849	$610	$1,220
	(i) Having $25,000,001 to $50,000,000 gross sales or service for the immediately previous license or fiscal year		$2,090	$690	$1,379
	(j) Having $50,000,001 to $100,000,000 gross sales or service for the immediately previous license or fiscal year		$2,330	$769	$1,538
	(k) Having $100,000,000 or more gross sales or service for the immediately previous license or fiscal year		$2,571	$848	$1,697
5.	Wholesale food processor of meat or poultry products under supervision of the U.S. Department of Agriculture
	(a) Having gross sales or service of less than $125,000 for the immediately previous license or fiscal year		$112	$ 37	$ 74
	(b) Having $125,001 to $250,000 gross sales or service for the immediately previous license or fiscal year		$214	$ 71	$141
	(c) Having $250,001 to $1,000,000 gross sales or service for the immediately previous license or fiscal year		$333	$110	$220
	(d) Having $1,000,001 to $5,000,000 gross sales or service for the immediately previous license or fiscal year		$425	$140	$281
	(e) Having $5,000,001 to $10,000,000 gross sales or service for the immediately previous license or fiscal year		$521	$172	$344
	(f) Having $10,000,001 to $15,000,000 gross sales or service for the immediately previous license or fiscal year		$765	$252	$505
	(g) Having $15,000,001 to $20,000,000 gross sales or service for the immediately previous license or fiscal year		$893	$295	$589
	(h) Having $20,000,001 to $25,000,000 gross sales or service for the immediately previous license or fiscal year		$1,027	$339	$678
	(i) Having $25,000,001 to $50,000,000 gross sales or service for the immediately previous license or fiscal year		$1,161	$383	$766
	(j) Having $50,000,001 to $100,000,000 gross sales or service for the immediately previous license or fiscal year		$1,295	$427	$855
	(k) Having $100,000,001 or more gross sales or service for the immediately previous license or fiscal year		$1,428	$471	$942
6.	Wholesale food processor or manufacturer operating only at the State Fair		$125	$ 40	$ 50
7.	Wholesale food manufacturer having the permission of the commissioner to use the name Minnesota Farmstead cheese		$ 30	$ 10	$ 15
8.	Wholesale food manufacturer processing less than 700,000 pounds per year of raw milk		$ 30	$ 10	$ 15
9.	A milk marketing organization without facilities for processing or manufacturing that purchases milk from milk producers for delivery to a licensed wholesale food processor or manufacturer		$ 50	$ 15	$ 25
new text begin 10. new text end	new text begin Microenterprise home kitchen operation new text end		new text begin $ 50 new text end	new text begin $ 15 new text end	new text begin $ 50 new text end

Sec. 5.

Minnesota Statutes 2022, section 31.04, is amended to read:

31.04 INSPECTION AUTHORITY.

Subdivision 1.

Allowable actions.

For purposes of enforcement of the Minnesota Food
Law, the commissioner, or any of the commissioner's authorized agents, is authorized upon
presenting appropriate credentials to the owner, operator or agent in charge:

(1) to enter at reasonable times any factory, warehouse, deleted text begin or deleted text end establishment new text begin , or premises
of a residence of a microenterprise home kitchen operation new text end in which food is manufactured,
processed, packed or held for introduction into commerce or after such introduction or to
enter any vehicle being used to transport or hold such food in commerce;

(2) to inspect at reasonable times and within reasonable limits and in a reasonable manner
such factory, warehouse, establishment new text begin , premises of a residence of a microenterprise home
kitchen operation, new text end or vehicle and all pertinent equipment, finished and unfinished materials,
containers and labeling therein; and to obtain samples necessary to the enforcement of the
Minnesota Food Law; and

(3) to have access to and to copy all records of carriers in commerce showing the
movement in commerce of any food or the holding thereof during or after such movement,
and the quantity, shipper and consignee thereof; provided, that evidence obtained under this
clause shall not be used in a criminal prosecution of the person from whom obtained; and
provided, further, that carriers shall not be subject to the other provisions of the Minnesota
Food Law by reason of their receipt, carriage, holding, or delivery of food in the usual
course of business as carriers.

Subd. 2.

Written report.

Upon completion of any such inspection of a factory,
warehouse, new text begin microenterprise home kitchen operation, new text end or other establishment and prior to
leaving the premises, the authorized agent making the inspection shall give to the owner,
operator or agent in charge a report in writing setting forth any conditions or practices
observed which in the agent's judgment indicate that any food in such establishment:

(1) consists in whole or in part of any filthy, putrid, or decomposed substance, or

(2) has been prepared, packed or held under insanitary conditions whereby it may have
become contaminated with filth or whereby it may have been rendered injurious to health.

A copy of such report shall be sent promptly to the commissioner.

Subd. 3.

Receipt for samples.

An authorized agent making any deleted text begin such deleted text end inspection deleted text begin of a
factory, warehouse or other establishment deleted text end new text begin under this section and new text end who has obtained any
sample in the course of the inspection, upon completion of the inspection and prior to leaving
the premises, shall give to the owner, operator, or agent in charge a receipt describing the
samples obtained.

Subd. 4.

Copy of analysis result.

When in the course of any deleted text begin such deleted text end inspection deleted text begin of a factory
or other establishment where food is manufactured, processed or packed, deleted text end new text begin under this section, new text end
the officer or employee making the inspection obtains a sample of any such food and an
analysis is made of such sample for the purpose of ascertaining whether such food consists
in whole or in part of any filthy, putrid or decomposed substance or is otherwise unfit for
food, a copy of the result of such analysis shall be furnished promptly to the owner, operator
or agent in charge.

Sec. 6.

new text begin [31C.01] DEFINITIONS.
new text end

new text begin For purposes of this chapter, the following terms have the meanings given:
new text end

new text begin (1) "commissioner" means the commissioner of agriculture;
new text end

new text begin (2) "juice" means the aqueous liquid expressed or extracted from one or more fruits or
vegetables, purees of the edible portions of one or more fruits or vegetables, or any
concentrates of the liquid or puree;
new text end

new text begin (3) "microenterprise home kitchen operation" means a person who makes and sells
prepared food exclusively at a residence in Minnesota with a license under this chapter. A
microenterprise home kitchen operation is not a food establishment for purposes of Minnesota
Rules, chapter 4626;
new text end

new text begin (4) "prepared food" means food for human consumption that is produced and packaged
at the residence of a microenterprise home kitchen operation. Prepared food does not include
alcoholic beverages, low-acid canned food, or food containing cannabis. Prepared food
includes:
new text end

new text begin (i) homemade food produced by cooking, baking, drying, mixing, cutting, fermenting,
preserving, dehydrating, growing, raising, or other processes, including time/temperature
control for safety food; and
new text end

new text begin (ii) food made with meat and poultry from approved inspection sources; and
new text end

new text begin (5) "time/temperature control for safety food" or "TCS food" has the meaning given in
Minnesota Rules, part 4626.0020, subpart 90a.
new text end

Sec. 7.

new text begin [31C.02] MICROENTERPRISE HOME KITCHEN OPERATION ACCOUNT.
new text end

new text begin A microenterprise home kitchen operation account is created in the agricultural fund.
Fees paid under section 28A.08, subdivision 3, must be deposited in the microenterprise
home kitchen operation account. Money in the account, including interest accrued, is
appropriated to the commissioner for the cost of the microenterprise home kitchen operation
program.
new text end

Sec. 8.

new text begin [31C.03] TRAINING.
new text end

new text begin To qualify for a license under chapter 28A, an individual who will handle food in a
microenterprise home kitchen operation must first complete a course in safe food handling
that is approved by the commissioner. The training must not exceed eight hours and must
be completed every three years. The commissioner must approve online options for
food-handling training, including ServSafe. Before receiving a microenterprise home kitchen
operation license, an applicant must provide documentation that each individual who will
handle food in the microenterprise home kitchen operation has completed the required
training.
new text end

Sec. 9.

new text begin [31C.04] REQUIREMENTS FOR LICENSEES.
new text end

new text begin (a) A microenterprise home kitchen operation licensee must comply with this section.
new text end

new text begin (b) The sale and delivery of prepared food must only be as permitted by the license.
Non-TCS food may be delivered in person, by mail or commercial delivery, and through
an agent or third party, including a third-party vendor. TCS food may be delivered only in
person.
new text end

new text begin (c) At the point of sale of the prepared food, the individual selling the food must display
a sign stating: "This food is homemade and produced according to modified requirements
under state law" or must label the food with this statement in a legible format. If a third-party
vendor is selling prepared food, the vendor must display the food in an area that is separate
from food that is not homemade.
new text end

new text begin (d) A licensee must control the safety of TCS food by refrigeration only. A licensee
must not engage in hot holding, reheating, cooking for immediate service, or custom
processing of TCS food.
new text end

new text begin (e) A licensee must ensure that prepared TCS food is marked with an expiration date
that is appropriate for the prepared food.
new text end

Sec. 10.

new text begin [31C.05] EXEMPTIONS.
new text end

new text begin A microenterprise home kitchen operation licensee is exempt from sections 31.31 and
31.392.
new text end

Sec. 11.

new text begin [31C.06] LOCAL ORDINANCE.
new text end

new text begin This chapter does not preempt the application of any business-licensing requirement or
zoning ordinance of a political subdivision. A political subdivision may not restrict the sale
of food sold under this chapter in a manner more stringent than state law.
new text end

Sec. 12.

new text begin [31C.07] STANDARDS FOR MICROENTERPRISE HOME KITCHEN
OPERATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Health and hygiene. new text end

new text begin (a) A food handler must be free from contagious
or communicable diseases, sores, or infected wounds and must keep the food handler's hair
restrained.
new text end

new text begin (b) A food handler must keep themselves and the food handler's clothing clean. A food
handler must wash the food handler's hands as frequently as necessary to maintain good
sanitation and to prevent cross-contaminating food.
new text end

new text begin (c) A food handler must minimize bare hand contact with prepared food.
new text end

new text begin (d) Smoking is not permitted while handling or preparing food or in food preparation
areas or storage areas while preparing food.
new text end

new text begin Subd. 2. new text end

new text begin Residence conditions. new text end

new text begin (a) Prepared food must be prepared and packaged at a
residence in Minnesota.
new text end

new text begin (b) A residence where food is prepared must be equipped with at least one easily
accessible hand-washing sink plumbed with hot and cold potable water and supplied with
hand soap.
new text end

new text begin (c) Food-contact surfaces must be easy to clean, nonabsorbent, and in good condition.
new text end

new text begin (d) Food-contact surfaces must be sanitized after cleaning and before use with a sanitizer
labeled for use on food preparation surfaces.
new text end

new text begin (e) A residence where food is prepared or stored must be protected from pest infestation
and other sources of contamination. Outside windows and doors must be fitted with screens
or be kept closed to prevent sources of contamination.
new text end

new text begin (f) A residence where food is prepared or stored must have floors, walls, and ceilings
that are clean and easy to clean and maintain. A residence where food is stored must be
maintained in a sanitary condition. A vehicle used to transport food must also be maintained
in a sanitary condition.
new text end

new text begin (g) Garbage and refuse must be kept in containers and removed from the premises of a
residence regularly to eliminate insects and rodents, offensive odors, or health or fire hazards.
Garbage and refuse containers must be easy to clean, insect- and rodent-resistant and
constructed from material that does not leak or absorb liquid.
new text end

new text begin (h) Food storage and preparation areas must meet applicable structural, plumbing, HVAC,
and electrical residential code standards.
new text end

new text begin Subd. 3. new text end

new text begin Equipment. new text end

new text begin (a) A residence where food is prepared or stored must have
mechanical refrigeration with sufficient capacity to the temperature at or below 41 degrees
Fahrenheit.
new text end

new text begin (b) Equipment, utensils, and containers used to prepare food must be washed with soap
and water or sanitizer approved for cleaning food-contact surfaces and must be kept clean.
new text end

new text begin Subd. 4. new text end

new text begin Food. new text end

new text begin (a) Food ingredients must be obtained from licensed establishments,
except for products from a farm or garden, including fresh fruits and vegetables, honey, and
eggs. Using food in hermetically sealed containers not prepared in a licensed food-processing
plant is prohibited.
new text end

new text begin (b) Food must be in sound condition; free from spoilage, filth, or other contamination;
and safe for human consumption. Food products must not be stored on the floor.
new text end

new text begin (c) Prepared TCS food must be maintained at or below 41 degrees Fahrenheit under
mechanical refrigeration.
new text end

new text begin (d) TCS food must be cooled to 41 degrees Fahrenheit or less within four hours.
new text end

new text begin (e) Dogs, cats, or other pets are not permitted in spaces or rooms while food is exposed
or prepared.
new text end

new text begin (f) Food ingredients must be stored in original containers. If removed from the original
container, food and ingredients must be stored in labeled and closed containers of a material
that will not cause the food to become adulterated.
new text end

new text begin Subd. 5. new text end

new text begin Consumer information. new text end

new text begin (a) Food sold under this chapter must be labeled with
the microenterprise home kitchen operation's name and contact information, common name
of the food, the date on which the food was prepared, ingredients, contained allergens in
common name consistent with requirements under federal law, and the statement "This food
was homemade and produced according to modified requirements under state law."
new text end

new text begin (b) Juice that is prepared by a microenterprise home kitchen operation and that is not
pasteurized must be refrigerated at or below 41 degrees Fahrenheit or frozen and must be
labeled with the following: "WARNING: This product has not been pasteurized and,
therefore, may contain harmful bacteria that can cause serious illness in children, the elderly,
and persons with weakened immune systems."
new text end

new text begin Subd. 6. new text end

new text begin Water source and wastewater disposal. new text end

new text begin (a) Unless determined unnecessary
by the commissioner according to section 31.175, a residence where food is prepared or
stored must have an adequate supply of hot and cold potable water from an approved source
and approved wastewater disposal, such as a public water system. If the residence is not
served by a public water system, the water must be tested annually for nitrites and coliform.
Records of water tests must be maintained by license holders who are not served by a public
system. The records must be available to the commissioner upon request.
new text end

new text begin (b) A residence where food is prepared or stored must have proper toilet fixtures, equipped
with a hand-washing sink, complete with hot and cold potable water and hand soap. A
supply of sanitary towels or a hand-drying device providing heated air must be located near
the hand-washing sink.
new text end

new text begin Subd. 7. new text end

new text begin Self-inspection. new text end

new text begin The licensee must implement a system of self-inspection to
ensure compliance with this section.
new text end

Sec. 13.

Minnesota Statutes 2022, section 34A.01, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

The definitions in this section and chapters 28, 28A, 29,
30, 31, 31A, new text begin 31C, new text end 32D, and 34 apply to this chapter. The definitions in this section apply
to chapter 32D.

Sec. 14.

Minnesota Statutes 2022, section 34A.04, subdivision 1, is amended to read:

Subdivision 1.

Enforcement required.

(a) The commissioner shall enforce this chapter
and chapters 28, 28A, 29, 30, 31, 31A, new text begin 31C, new text end and 34. To carry out the enforcement duties
under these chapters, the commissioner may, upon presenting appropriate credentials, during
regular working hours and at other reasonable times, inspect premises subject to the
commissioner's enforcement and licensing authority; require information from persons with
information relevant to an inspection; and inspect and copy relevant papers and records,
including business records.

(b) The commissioner may administer oaths, take and cause to be taken depositions of
witnesses, and issue subpoenas, and may petition the district court in the county in which
the premises is located to compel compliance with subpoenas or to permit an inspection.

(c) Violations of chapters 28, 28A, 29, 30, 31, 31A, new text begin 31C, new text end and 34, or rules adopted under
chapters 28, 28A, 29, 30, 31, 31A, and 34, are a violation of this chapter.

(d) Upon the request of the commissioner, county attorneys, sheriffs, and other officers
having authority in the enforcement of the general criminal laws shall take action to the
extent of their authority necessary or proper for the enforcement of this chapter or standards,
stipulations, and agreements of the commissioner.