Notwithstanding the other provisions of this chapter, the department of health shall register cottage food manufacture and the sale of the products of cottage food manufacture direct to consumers whether by pickup or delivery within the state, provided that the requirements of this section are met.

(1)  The cottage food products shall be produced in a kitchen that is on the premises of a home and meets the standards for kitchens as provided for in minimum housing standards, adopted pursuant to chapter 24.2 of Title 45 and the Housing Maintenance and Occupancy Code, adopted pursuant to chapter 24.3 of Title 45, and in addition the kitchen shall:

(i)  Be equipped at minimum with either a two (2) compartment sink or a dishwasher that reaches one hundred fifty degrees Fahrenheit (150° F) after the final rinse and drying cycle and a one compartment sink;

(ii)  Have sufficient area or facilities, such as portable dish tubs and drain boards, for the proper handling of soiled utensils prior to washing and of cleaned utensils after washing so as not to interfere with safe food handling; equipment, utensils, and tableware shall be air dried;

(iii)  Have drain boards and food preparation surfaces that shall be of a nonabsorbent, corrosion resistant material such as stainless steel, formica, or other chip resistant, nonpitted surface;

(iv)  Have self-closing doors for bathrooms that open directly into the kitchen;

(v)  If the home is on private water supply, the water supply must be tested once per year;

(vi)  Notwithstanding this subsection, the cottage food products may also be produced in a commercial kitchen licensed by the department and leased or rented by the cottage food registrant provided that a record be maintained as to the dates the commercial kitchen was used and that ingredients used in the production of cottage foods are transported according to applicable food safety standards and regulations promulgated by the department.

(2)  The cottage food products are prepared and produced ready for sale under the following conditions:

(i)  Pets are kept out of food preparation and food storage areas at all times;

(ii)  Cooking facilities shall not be used for domestic food purposes while cottage food products are being prepared;

(iii)  Garbage is placed and stored in impervious covered receptacles before it is removed from the kitchen, which removal shall be at least once each day that the kitchen is used for cottage food manufacture;

(iv)  Any laundry facilities that may be in the kitchen shall not be used during cottage food manufacture;

(v)  Recipe(s) for each cottage food product with all the ingredients and quantities listed, and processing times and procedures, are maintained in the kitchen for review and inspection;

(vi)  An affixed label that contains:

(A)  Name, address, and telephone number;

(B)  The ingredients of the cottage food product, in descending order of predominance by weight or volume;

(C)  Allergen information, as specified by federal and state labeling requirements, such as milk, eggs, tree nuts, peanuts, wheat, and soybeans; and

(D)  The following statement printed in at least ten-point type in a clear and conspicuous manner that provides contrast to the background label: “Made by a Cottage Food Business Registrant that is not Subject to Routine Government Food Safety Inspection,” unless products have been prepared in a commercial kitchen licensed by the department.

(3)  Cottage food manufacture shall be limited to the production of baked goods that do not require refrigeration or time/temperature control for safety, including but not limited to:

(i)  Double crust pies;

(ii)  Yeast breads;

(iii)  Biscuits, brownies, cookies, muffins; and

(iv)  Cakes that do not require refrigeration or temperature-controlled environment; and

(v)  Other goods as defined by the department.

(4)  Each cottage food manufacturer shall be registered with the department of health and shall require a notarized affidavit of compliance, in any form that the department may require, from the applicant that the requirements of this section have been met and the operation of the kitchen shall be in conformity with the requirements of this section. Prior to the initial registration, each cottage food manufacturer is required to successfully complete a Food Safety Manager Course, any American Standards Institute approved food handler course, or any other course approved by the department. A certificate of registration shall be issued by the department upon the payment of a fee as set forth in § 23-1-54 and the submission of an affidavit of compliance. The certificate of registration shall be valid for one year after the date of issuance; provided, however, that the certificate may be revoked by the director at any time for noncompliance with the requirements of the section. The certificate of registration, with a copy of the affidavit of compliance, shall be kept in the kitchen where the cottage food manufacture takes place. The director of health shall have the authority to develop and issue a standard form for the affidavit of compliance to be used by persons applying for a certificate of registration; the form shall impose no requirements or certifications beyond those set forth in this section and § 21-27-1(6). No certificates of registration shall be issued by the department prior to November 1, 2022.

(5)  No such operation shall engage in consignment or wholesale sales. The following additional locational sales by any such cottage food operation shall be prohibited: (i) Grocery stores; (ii) Restaurants; (iii) Long-term-care facilities; (iv) Group homes; (v) Daycare facilities; and (vi) Schools. Advertising and sales by internet, mail, and phone are permissible, provided the cottage food licensee or their designee shall deliver, in person, to the customer within the state.

(6)  Total annual gross sales for a cottage food operation shall not exceed fifty thousand dollars ($50,000) per calendar year. If annual gross sales exceed the maximum annual gross sales amount allowed, the cottage food registrant shall either obtain a food processor license or cease operations. The director of health shall request documentation to verify the annual gross sales figure of any cottage food operation.

(7)  Sales on all cottage foods are subject to applicable sales tax pursuant to § 44-18-7.

(8)  The director of health or designee may inspect a cottage food operation at any time to ensure compliance with the provisions of this section. Nothing in this section shall be construed to prohibit the director of health or designee of the director from investigating the registered area of a cottage food operation in response to a foodborne illness outbreak, consumer complaint, or other public health emergency.