Revision: Dec. 15, 2023, 12:08 p.m.
HB 1565-FN - AS INTRODUCED
2024 SESSION
24-2050
08/05
HOUSE BILL 1565-FN
AN ACT relative to the sale of homestead food to consumers and local food production.
SPONSORS: Rep. Coulon, Graf. 5; Rep. Costable, Carr. 8; Rep. Granger, Straf. 2; Sen. Innis, Dist 7
COMMITTEE: Environment and Agriculture
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ANALYSIS
This bill makes changes to the regulations regarding the sale of homestead foods to consumers.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2050
08/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to the sale of homestead food to consumers and local food production.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Homestead Food Operations; Exemptions. Amend RSA 143-A:5, VII to read as follows:
VII. Homestead food operations [selling less than a maximum annual gross sales of $35,000 of food, excluding potentially hazardous food as defined in RSA 143-A:12, I(b), from the homestead residence, at the owner's farm stand, or at farmers' markets] in accordance with RSA 143-A:12.
2 Homestead Food Operations. RSA 143-A:12 is repealed and reenacted to read as follows:
143-A:12 Homestead Food Operations.
I. In this subdivision:
(a) "Homestead food operation" means a person who produces homestead food products in accordance with this subdivision only in the home kitchen of that person's primary residence in New Hampshire.
(b) "Potentially hazardous food" means foods requiring temperature control for safety because they are capable of supporting the rapid growth of pathogenic or toxigenic microorganisms, and the growth of toxin production of Clostridium botulinum. Potentially hazardous foods includes low acid and canned foods.
(c) "Homestead food products" means all food for human consumption, excluding alcoholic beverages or food containing drugs, which is produced and, if packaged, packaged at a person’s primary residence in New Hampshire.
(d) “Produce” means to prepare a food item by cooking, baking, drying, mixing, cutting, fermenting, preserving, dehydrating, growing, raising, or other process.
(e) “Producer” means the person who produces a homestead food product.
(f) “Seller” means the person who sells a homestead food product to the consumer.
(g) The terms “dairy product,” “meat,” “meat food product,” “poultry,” “poultry byproduct,” and “poultry food product: shall have the same definitions as in federal law.
II. The production and sale of homestead food products in accordance with this subdivision are exempt from all licensing, permitting, inspection, packaging, and labeling laws in this state. This subdivision shall not exempt a producer or seller of homestead food products from any requirement to register the producer or seller’s name, address, or other identification with the state.
III. Meat, meat byproduct, meat food product, poultry, poultry byproduct, or poultry food product that may be sold in accordance with this subdivision include, but are not limited to:
(a) Poultry, poultry byproduct, or poultry food product if the producer raised the poultry pursuant to the 1,000-bird exemption set forth in 9 C.F.R. section 381.10(c).
(b) Poultry, poultry byproduct, or poultry food product if the poultry is from an inspected source, such as a butcher shop or grocery store, pursuant to 9 C.F.R. section 381.10(d).
(c) Meat, meat byproduct, or meat food product if the meat is from an inspected source, such as a butcher shop or grocery store, pursuant to 9 C.F.R. section 303.1(d).
IV. The exemption in this subdivision shall apply only if the following conditions are satisfied.
(a) Homestead food products, whether potentially hazardous or non-potentially hazardous foods, that are not dairy products and that do not contain meat or poultry shall be sold by the producer to the consumer, whether in person or remotely, including by telephone and Internet or by an agent of the producer or a third-party vendor, including a retail store, licensed restaurant or grocery store, to the consumer, and shall be delivered by the producer or an agent of the producer, a third-party vendor, or a third-party carrier, including by shipping, to the consumer.
(b) Homestead food products, whether potentially hazardous or non-potentially hazardous, that are dairy products or that contain meat or poultry shall be sold by the producer to the consumer, either in person or remotely, including by telephone and Internet, and delivered by the producer to the consumer in person.
(c) If potentially hazardous homestead food products are transported before final delivery to the consumer, the food shall be maintained at an appropriate temperature to protect food safety during transport, cannot be transported more than once, and cannot be transported for longer than 2 hours.
(d) All homestead food operations shall disclose the following information to the consumer in a format provided in subparagraphs (e) and (f): name, address, and phone number of the homestead food operation; name of the homestead food product; the ingredients of the homestead product, in descending order of predominance by weight; and allergy information. Products made by homestead food operations exempt from licensure shall also be clearly labeled with the following statement: “This product was produced in a residential property that is exempt from New Hampshire licensing and inspection. This product may contain allergens.”
(e) The information required by subparagraph (d) shall be provided:
(1) On a label affixed to the package if the homestead food product is packaged;
(2) On a label affixed to the container, if the homestead food product is offered for sale from a bulk container;
(3) On a placard displayed at the point of sale, if the homestead food product is neither packaged nor offered for sale from a bulk container; or
(4) On the web page on which the homestead food product is offered for sale if it is sold over the Internet.
(f) If the homestead food product is sold by telephone or custom order, the information required by subparagraph (d) shall also be orally disclosed to the consumer before purchase and made readily available to the consumer in writing upon request.
(g) In addition to the labeling requirements in subparagraphs (d) through (f), homestead food products that are sold by a third-party vendor shall be sold in a separate section of the store or on a separate display case from non-homestead food products. A sign shall clearly indicate that the food is homemade and exempt from state licensing and inspection.
V. Nothing in this subdivision shall be construed to impede the department of health and human services in any investigation of food borne illness. The department shall also have the authority to enforce this subdivision and may impose a fine no greater than $75 for each violation. Except when responding to a complaint of food borne illness, the department of health and human services shall issue a written warning to the homestead food operation before issuing a fine.
VI. In addition to the transactions permitted under this subdivision, homestead food products may be sold to the maximum extent permitted by federal law. Nothing in this subdivision shall be construed to be more restrictive than applicable federal requirements.
3 Effective Date. This act shall take effect 60 days after its passage.
24-2050
12/10/23
HB 1565-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the sale of homestead food to consumers and local food production.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||||
Revenue | $0 | Approximate $25,000 decrease | Approximate $25,000 decrease | Approximate $25,000 decrease | ||||
Revenue Fund(s) | General Fund
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Expenditures | $0 | $0 - $10,000 | $0 - $10,000 | $0 - $10,000 | ||||
Funding Source(s) | General Fund
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Appropriations | $0 | $0 | $0 | $0 | ||||
Funding Source(s) | None
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• Does this bill provide sufficient funding to cover estimated expenditures? [X] See Below • Does this bill authorize new positions to implement this bill? [X] No | ||||||||
METHODOLOGY:
This bill redefines homestead food operations for the purpose of exempting such operations from licensing, permitting, inspection, packaging, and labeling laws in the State. In particular, the bill allows homestead food operations to sell poultry, poultry byproducts, and other poultry food products raised under the 1,000-bird exemption found in federal regulations. In addition, the bill allows homestead food products that do not contain meat, poultry, or dairy to be sold directly to consumers and other businesses, which may then resell the product. The bill also proposes certain labeling requirements for homestead food products.
The Department of Health and Human Services states that as of this writing, there are 145 homestead food operations that each pay a $150 annual fee to the general fund. Under the bill, this fee would no longer be required, resulting in an annual revenue loss of $21,750 to the State. The Department assumes that some indeterminable revenue loss will also result from food licensees currently operating as commercial kitchens that may choose to operate instead as homestead food operations. The total annual revenue loss is therefore estimated at approximately $25,000. The Department expects to incur additional expenses for staff time, travel, and laboratory testing to investigate food borne illnesses caused by homestead foods. While these expenses are indeterminable, the Department did provide an estimate of up to $10,000 annually.
The New Hampshire Municipal Association states the bill is not expected to have a fiscal impact.
It is assumed that the fiscal impact will begin in FY 2025.
AGENCIES CONTACTED:
Department of Health and Human Services and New Hampshire Municipal Association