The bill amends Minnesota Statutes 2024, section 28A.152, to update the cottage foods exemption by changing the terminology from "individual" to "person" throughout the relevant subdivisions. It also raises the gross receipts limit for cottage food sales from $78,000 to $85,000 per year and increases the registration fee exemption threshold from $5,000 to $8,500. Additionally, the bill allows for more flexible sales methods, including direct sales to consumers at farmers' markets and online, while stipulating that food products exempt under this section cannot be sold outside of Minnesota.

Furthermore, the bill introduces a new requirement for the commissioner to report to the legislature every two years, starting January 10, 2026. This report will include details on the amounts specified in subdivisions 3 and 4, a history of changes to those amounts, and calculations for potential adjustments based on inflation using the Consumer Price Index. These changes aim to streamline the cottage food business regulations and ensure that the legislative body is kept informed about the cottage food industry’s economic parameters.

Statutes affected:
Introduction: 28A.152