STATE OF NEW JERSEY. SENATE, No th LEGISLATURE

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1 SENATE, No. STATE OF NEW JERSEY th LEGISLATURE INTRODUCED MAY, 0 Sponsored by: Senator JOSEPH PENNACCHIO District (Essex, Morris and Passaic) Senator NILSA CRUZ-PEREZ District (Camden and Gloucester) SYNOPSIS Creating Jobs Through Cottage Foods Act ; establishes requirements for sale of cottage foods and encourages State loans and other State support to cottage foods industry. CURRENT VERSION OF TEXT As introduced.

2 AN ACT concerning cottage foods and providing State training and start-up loans, and supplementing Title of the Revised Statutes. BE IT ENACTED by the Senate and General Assembly of the State of New Jersey:. This act shall be known and may be cited as the Creating Jobs Through Cottage Foods Act.. The Legislature finds and declares that: a. The home baking and cottage foods industry can be an important component of the New Jersey economy and its jobcreation engine by allowing entry-level entrepreneurship to occur. b. It is the intent and purpose of the Legislature to: () support the home baking and cottage foods industry with the goal of boosting the job and economic prospects of residents of the State; () provide start-up funding to home bakers and cottage food producers wishing to start their own business; and () provide training to home bakers and cottage food producers about starting a business and the basics of food safety.. As used in P.L., c. (C. ) (pending before the Legislature as this bill): "Authority" means the New Jersey Economic Development Authority created pursuant to section of P.L., c.0 (C.:B- ). Baked goods means ready-to-eat baked food that does not require further cooking or refrigeration for food safety, and which is not a potentially hazardous food. Baked goods may contain ingredients which constitute potentially hazardous food, provided that the baked good as presented for sale is not a potentially hazardous food. Baked goods include, but are not limited to, breads, rolls, cakes, pies, pastries, candies, and cookies. Cottage foods means ready-to-eat food prepared by a home baker, which are not potentially hazardous food, including: candy such as brittle and toffee; chocolate-covered nonperishable foods such as nuts and dried fruit; dried fruits and nuts; dried pasta; dry baking mixes; dry herbs, seasonings, and mixtures; fruit pies, fruit empanadas, and fruit tamales; fudge; granolas, cereals, and trail mixes; honey and sweet sorghum syrup; jams, jellies, preserves, and fruit butters that comply with the federal standards for fruit butter; nut mixes and nut butters; popcorn and caramel corn; roasted coffee and dried tea; vinegar and mustard; and waffle cones and pizzelles. Home baker means a person who prepares baked goods, cottage foods, or both in a kitchen in a private home that is not subject to regulation and inspection by the Department of Health.

3 Potentially hazardous food means a food that requires time or temperature control for safety to limit pathogenic microorganism growth or toxin formation.. A home baker may sell baked goods, cottage foods, or both prepared by the home baker in a kitchen in a private home, provided the following requirements are met: a. The baked goods or cottage foods shall not be sold or offered for sale except at the home baker s home, a consumer s home, a farmer s market, a farm stand, or a county, municipal, or nonprofit fair, festival, or event. A home baker shall not sell or offer for sale baked goods or cottage foods over the Internet, wholesale, or to a commercial retailer for resale; b. The gross income generated by the home baker from the sale of baked goods and cottage foods shall not exceed $,000 per year for two consecutive years; c. A home baker shall no longer be considered a home baker for the purpose of qualifying for assistance offered pursuant to sections and of P.L., c. (C. ) (pending before the Legislature as this bill) once the home baker has been an eligible home baker selling baked goods under P.L., c. (C. ) (pending before the Legislature as this bill) and eligible for the assistance offered pursuant to sections and of P.L., c. (C. ) (pending before the Legislature as this bill) for three years; d. The home baker, and any person assisting the home baker in the preparation of baked goods or cottage foods, shall possess a current, valid food handler s certificate issued by a food handler certification agency approved by the Commissioner of Health pursuant to subsection a. of section of P.L., c. (C. ) (pending before the Legislature as this bill); e. A clearly visible placard shall be placed at the point of sale, which shall state in clear, legible print that the baked goods or cottage foods were prepared in a kitchen that is not subject to regulation and inspection by the Department of Health; f. Baked goods or cottage foods shall be packaged in a manner that prevents or reduces the risk of contamination, unless the size, shape, or other characteristics of the baked good or cottage food makes its packaging impractical or unnecessary; and g. Baked goods or cottage foods sold or offered for sale shall include a label containing the following information: () the name of the home baker and the address where the baked goods or cottage foods were prepared; () the name of the baked goods or cottage foods, including a description of the type or nature of the baked goods or cottage foods if not apparent from the name;

4 () all major food allergens used as ingredients in the baked goods or cottage foods, including, but not limited to, eggs, nuts, wheat, soy, dairy, and peanuts; and () the following statement: This food is made in a home kitchen that is not subject to regulation and inspection by the Department of Health.. a. The Commissioner of Health shall compile, update as necessary, and make available a list of food handler certification agencies approved by the commissioner to issue food handler certificates to home bakers and other persons for the purposes of P.L., c. (C. ) (pending before the Legislature as this bill). The Department of Health shall have no other authority to regulate or inspect home bakers or the sale or production of baked goods or cottage foods prepared by home bakers. b. The local board of health having jurisdiction in the municipality in which the home baker resides or in which the home baker prepares, offers for sale, or sells baked goods, cottage foods, or both shall have the authority to conduct an inspection of the baked goods or cottage foods, or the place in which they are prepared, upon reasonable belief or credible report that the baked goods or cottage foods, or the conditions under which the baked goods or cottage foods are prepared, present an immediate and serious threat to human life or health. If the board finds the baked goods or cottage foods or the conditions under which they are prepared constitute an immediate and serious threat to human life or health, the board may order any appropriate relief, including, but not limited to: confiscation or destruction of the baked goods or cottage foods; remedial action to correct an unsafe or potentially hazardous condition; or issuance of a temporary or permanent injunction prohibiting the home baker from preparing and selling baked goods, cottage foods, or both. c. The preparation and sale of baked goods or cottage foods by home bakers pursuant to P.L., c. (C. ) (pending before the Legislature as this bill) shall not be subject to regulation or restriction by municipal ordinance or resolution. d. Nothing in this section shall be construed to restrict the ability of a neighbor or other affected person to institute a nuisance action against a home baker.. The New Jersey Economic Development Authority shall work with New Jersey organizations providing micro loans to small start-up businesses, especially those organizations that receive authority assistance pursuant to the "Micro-Business Development and Assistance Act, P.L., c.0 (C.:B-0 et seq.), to ensure that these loans are marketed and accessible to home bakers. The authority shall develop a promotional campaign that reaches out to home baked goods and cottage food producers via the

5 websites of the authority, the Department of Labor and Workforce Development, and the Business Action Center in the Department of State and its internet business portal to inform them of the benefits they can access for their businesses through micro loans and various State and locally administered training programs for new entrepreneurs that can be applicable to home baked goods and cottage food production businesses. Each of these entities shall also produce physical brochures or other written materials at any of its physical locations where it provides direct services to small businesses or entrepreneurs, which it shall distribute to individuals interested in home baked goods or cottage foods businesses.. The Department of Labor and Workforce Development shall work with New Jersey organizations providing training programs to ensure that the resources identified in section of P.L., c. (C. ) (pending before the Legislature as this bill) are marketed and accessible to entrepreneurs in the home baked goods and cottage foods industry. The Department of Labor and Workforce Development shall provide a competitive preference when home bakers apply for its training programs.. This act shall take effect on the first day of the seventh month next following the date of enactment. STATEMENT This bill establishes requirements for the sale of home baked goods and cottage foods and encourages State entities to support entrepreneurs establishing home baked goods and cottage foods businesses. Under the bill, baked goods are defined as ready-to-eat baked food prepared in a private kitchen that does not require further cooking or refrigeration for food safety and is not potentially hazardous food. Baked goods include, but are not limited to, breads, rolls, cakes, pies, pastries, candies, and cookies. Cottage foods are defined as ready-to-eat food prepared by a home baker, which are not potentially hazardous food, including: candy, such as brittle and toffee; chocolate-covered nonperishable foods, such as nuts and dried fruit; dried fruits and nuts; dried pasta; dry baking mixes; dry herbs, seasonings, and mixtures; fruit pies, fruit empanadas, and fruit tamales; fudge; granolas, cereals, and trail mixes; honey and sweet sorghum syrup; jams, jellies, preserves, and fruit butters that comply with the federal standards for fruit butter; nut mixes and nut butters; popcorn and caramel corn; roasted coffee and dried tea; vinegar and mustard; and waffle cones and pizzelles. Under the bill, potentially hazardous food is defined as a food that requires time or temperature control for safety to limit

6 pathogenic microorganism growth or toxin formation. Home baked goods may be made using a potentially hazardous food, provided that the final product as offered for sale is not a potentially hazardous food. The bill provides that baked goods or cottage foods may not be sold or offered for sale except at the home baker s home, a consumer s home, a farmer s market, a farm stand, or a county, municipal, or nonprofit fair, festival, or event. The bill prohibits selling or offering for sale home baked goods or cottage foods over the Internet, wholesale, or to a commercial retailer for resale. The gross income generated by the home baker from the sale of baked goods and cottage foods may not exceed $,000 per year for two consecutive years. The home baker and any person assisting the home baker must possess a current, valid food handler s certificate. A clearly visible placard is to be placed at the point of sale, which states in clear, legible print that the baked goods or cottage foods were prepared in a kitchen that is not subject to regulation and inspection by the Department of Health (DOH). Baked goods and cottage foods are to be packaged in a manner that prevents or reduces the risk of contamination, unless the size, shape, or other characteristics of the baked good or cottage food make such packaging impractical or unnecessary. Finally, each baked good or cottage food is to be labeled with the name of the home baker and the address where the baked good or cottage food was prepared; the name of the baked good or cottage food, including a description of the type or nature of the baked good or cottage food if not apparent from the name; all major food allergens used as ingredients in the baked good or cottage food, such as eggs, nuts, wheat, soy, dairy, or peanuts; and a statement that reads: This food is made in a home kitchen that is not subject to regulation and inspection by the Department of Health. The Commissioner of Health is to compile, update as necessary, and make available a list of food handler certification agencies approved by the commissioner to issue certificates for the purposes of the bill. The DOH will have no other authority to regulate or inspect home bakers or the sale or production of home baked goods or cottage foods, and the preparation and sale of home baked goods or cottage foods may not be regulated or restricted by municipal ordinance or resolution. Nothing in the bill is to prohibit a neighbor or other affected person from bringing a nuisance action against a home baker. Local boards of health will have the authority to inspect baked goods and cottage foods and places where they are prepared upon reasonable belief or credible report that the baked goods or cottage foods, or the conditions under which they are prepared, present an immediate and serious threat to human life or health. If the board finds the baked goods or cottage foods or the conditions under which they are prepared constitute a threat, the board may order any

7 0 0 appropriate relief, including, but not limited to: confiscation or destruction of the baked goods or cottage foods; remedial action to correct an unsafe or potentially hazardous condition; or issuance of a temporary or permanent injunction prohibiting the home baker from preparing and selling baked goods, cottage foods, or both. The bill directs the New Jersey Economic Development Authority (authority) to work with New Jersey organizations providing micro loans to small start-up businesses that receive assistance through the "Micro-Business Development and Assistance Act, to ensure that these loans are marketed and accessible to home bakers. The bill also requires the authority to develop a promotional campaign and written promotional materials that reach out to home bakers via the websites of the authority, the Department of Labor and Workforce Development (DOLWD), and the Business Action Center and its internet business portal to inform home bakers of the benefits they can access for their business through micro loans and various State and locally administered training programs. The bill also requires the DOLWD to work with New Jersey organizations providing training programs to ensure that these resources are marketed and accessible to entrepreneurs in the home baked goods and cottage foods industry and to provide a competitive preference when home bakers apply for their training programs.