Did you know you can legally sell baked goods from your home?
Why don’t I know about this? What a great way to make extra dough (just in case you did not get the pun the first time). BAKERS!! let’s get the word out! So you are limited to under $50,000/year……um problem? How can we promote this? let me know your thoughts.
Summary of Law
SB 81 by Senator Jane Nelson
House Sponsor: Representative Lois Kolkhorst
Signed into law by Governor Rick Perry on 6/17/2011.
Summary of sections 5 and 6 of the bill, which pertain to Cottage Food Operations.
1. Food must be sold from your home, directly to another consumer. No sales at farmer’s markets, county fairs, roadside stands, local festivals, craft shows, wholesale, or resale to restaurants, grocery stores, coffee shops, etc. The food must be purchased at your home.
2. Foods are limited to non-potentially hazardous baked goods (cookies, cakes, breads, Danish, donuts, pastries, pies, and other items that are prepared by baking the item in an oven), canned jams, jellies, and dry herb mixes. THESE ARE THE ONLY FOODS ALLOWED. If you do not see it on this list, it’s not allowed.
3. Annual gross income from sales of above food items must be $50,000 or less.
4. The local health department may not regulate these home cottage food operations, but they must maintain a record of any complaint made. This is a consumer safeguard, so that consumers can call the local health department and check for complaints on their “cake lady” before they purchase, if they wish.
5. The food items sold must be labeled with the name and address of the cottage food production operation, and a statement that the food was not inspected by the health department. We are waiting for the Department of State Health Services to develop the specific rules for labeling. Per Representative Kolkhorst, the label does not have to be affixed directly to the food item, it can be handed to the customer.
Since we do not have labeling rules from DSHS yet, you will need to have labels with your name, address and the statement “This food is not inspected by the state health department or a local health department.” Be ready to change your labels when DSHS comes out with rules, so don’t order or make too many with this specific wording. This is temporary so we can get going with our businesses on 9/1.
Temporary labeling information provided by the Farm and Ranch Freedom Alliance.
6. Food must not be sold through the internet. This simply means that these operations can’t set up a shopping cart on your web site and let people purchase blindly. The “no internet sales” clause goes back to the fact that we ARE small “cottage” operations, and helps ensure that sales are local and face-to-face, which is in keeping with the spirit of the bill. Again, it does NOT mean that web sites are prohibited. Web sites, Facebook pages, Twitter, and any kind of marketing you want to do are all perfectly allowable. Just don’t allow purchase and payment on the internet.
7. It went into effect 9/1/2011.