Cottage Law – Senate Bill 206

This post by Ben Tedore

Posted in Business Conditions, Legal, License and Permits, Trends

Bill has been signed into law by Governor Sandoval, and goes into effect on July 1, 2013

On May 24, 2013, Governor Sandoval signed job-creating Senate Bill 206 on Cottage Food Industries into law in Nevada!

This bill will support micro-enterprises and farmers’ value-added products, and to allow people to supplement their income, and to test potential new business opportunities. This bill will clear the way for home cooks and farmers to make and sell products such as baked goods, jams, vinegar, granola, popcorn, dried fruits, nut mixes and dry herbs, without the requirement to invest in an expensive commercial kitchen. This bill does not include dairy or meat. Working closely with the Nevada State Health Division, the bill has been crafted to enable the value added processing of a variety of foods into products such as jams, vinegars, and baked goods from home kitchens, as long as the foods are sold directly to consumers, such as at Farmers’ Markets and other direct sale venues such as craft fairs.

Cottage Law 206 redefines “food establishments” in the eyes of Nevada law. The recent law enables individuals to run cottage food operations (production and sale of specified food items) out of their private residences. However, there are multiple restrictions included in this law.

Restrictions

Location: A cottage food item is prepared at an individual’s home, and sold either out of private home residence or a farmer’s market.

Registration: Individuals who run cottage food operations must register their businesses with the health authority, and allow their facility to be inspected by health authorities

Sales: Total sales are limited to $35,000 a year. The item must be sold by the individual who prepared it. Additionally, item may not be resold to a secondary distributor.

Labeling: Must display a label that says “MADE IN A COTTAGE FOOD OPERATION THAT IS NOT SUBJECT TO ROUTINE GOVERNMENT FOOD SAFETY INSPECTIONS.” Also, must display all other labels consistent with federal regulations.

Manufacturing: Must be made in a kitchen using industry grade appliances and utensils. No child or pets may be present. Proper sanitation and storage is a necessity.

Food Types:

  1. Nuts and nut mixes;
  2. Candies;
  3. Jams, jellies and preserves;
  4. Vinegar and flavored vinegar;
  5. Dry herbs and seasoning mixes;
  6. Dried fruits;
  7. Cereals, trail mixes and granola;
  8. Popcorn and popcorn balls; or
  9. Baked goods that:
    Are not potentially hazardous foods;
    Do not contain cream, uncooked egg, custard, meringue or cream cheese frosting or garnishes

One Response to “Cottage Law – Senate Bill 206”

  1. On June 25th, 2013 at 2:48 pm New Cottage Food Law Goes Into Effect July 1, 2013! | Nevada Food Business Said:

    […] Yes! You heard right the new Cottage Law – Senate Bill 206 has been passed! […]

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