This bill proposes amendments to Minnesota Statutes 2024, section 28A.152, which governs cottage food exemptions. Major changes include:

1. Terminology Update: The term "individual" is replaced with "person" throughout the section to allow for broader applicability, including business entities.

2. Labeling and Display Requirements: Cottage food producers must label their products with the producer’s name, registration number or address, preparation date, ingredients, allergens, and a disclaimer stating that the products are homemade and not subject to state inspection.

3. Sale Locations and Methods:

   • Products can be sold directly to consumers at community events, farmers markets, or from the producer’s home (if permitted by local ordinances).
   • Sales can be conducted online, but delivery must be made directly to consumers by the producer or via mail or commercial delivery.
   • Products cannot be sold outside Minnesota.
   • Donations for fundraising purposes are allowed.

4. Sales Cap Increase: The annual gross sales limit for exempt cottage food producers is raised from $78,000 to $85,000.

5. Registration Requirement:

   • Cottage food producers must register annually with the state.
   • Registration fees remain $50, but the exemption threshold for those with lower sales increases from $5,000 to $8,500 in gross annual receipts.

6. New Reporting Requirement:

   • The Commissioner of Agriculture must submit a biennial report to the legislature beginning January 10, 2026.
   • The report will include historical sales and registration thresholds, when they changed, and an inflation-adjusted calculation based on the Consumer Price Index.

The bill aims to expand access to cottage food sales, adjust financial thresholds for inflation, and improve regulatory oversight through regular reporting.