Georgia committee approves bill letting cottage-food producers sell through stores, restaurants

Representative Hagan introduced House Bill 583 (LC 442830) to the Agriculture and Consumer Affairs committee, saying it would open a new delivery stream for Georgia cottage food operators by allowing third-party vendors such as grocery stores and restaurants to buy home-produced, non-potentially-hazardous food items and resell them to consumers.

"This is a gateway for entrepreneurs, to potentially create a larger business, create jobs," Representative Hagan said, describing the bill as a way for small producers — including parents working from home — to test products and expand into larger operations.

The bill includes consumer-disclosure and safety measures, Hagan said. Packaging must state that the product "was produced at a residential property that is exempt from state inspection" and may contain allergens; online and phone sales require specified disclosures; and grocery-store displays for cottage food items would be shelved separately with point-of-sale signage to inform consumers.

Commissioner Harper of the Georgia Department of Agriculture told the committee the department supports the bill as drafted and will retain authority for food-safety oversight. "We still maintain the authority to ensure for safety, for health," Harper said, adding that the department uses remedies such as consent orders and fines and generally investigates in response to complaints.

Harper and others clarified that inspections would typically be complaint-driven under the current program and that the law does not currently require cottage producers to carry liability insurance, though the department recommends it as a business practice.

The bill also reflects a compromise with the Association County Commissioners of Georgia, Hagan said: it includes language allowing local jurisdictions to prohibit the sale of cottage food products within their boundaries if they choose. Hagan said lawmakers added the local opt-out at ACCG's request so jurisdictions would "retain that right."

Committee members pressed for detail on several practical points. A senator asked whether the cottage-food rule covers outbuildings or only the residence; Hagan said cottage food must be produced in the home residence and that a separate commercial kitchen would not qualify. Members also confirmed carve-outs for nonprofit or church bake sales, and that raw agricultural commodities are exempt from cottage-food regulation; the panel asked staff to clarify specific items such as boiled peanuts.

A committee member summarized current application requirements from the Department of Agriculture website: applicants must attest they comply with local ordinances, provide proof of water testing or a recent water bill, and submit an accredited food-safety training certificate; an annual licensing fee of about $100 (prorated if after July) was cited as an existing application requirement.

After questions and brief discussion, Senator Anderson moved to pass House Bill 583; the motion received a second and the committee approved the bill by voice vote, with the chair announcing the measure passed unanimously.

The committee took no further action in the hearing. The bill now proceeds per legislative process for subsequent steps.