Arizona 2024 2024 Regular Session

Arizona House Bill HB2042 Comm Sub / Analysis

Filed 04/03/2024

                      	HB 2042 
Initials DC 	Page 1 	Transmitted 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
Second Regular Session 
House: RA DPA 6-0-0-0 | 3rd Read 58-0-1-0-1  
Senate: FICO 6-0-1-0 | 3rd Read 17-11-2-0 
 
HB 2042: food preparation; sale; cottage food 
Sponsor: Representative Grantham, LD 14 
Transmitted to the Governor 
Overview 
Expands the foods that meet the exemption for cottage food products if requirements are met.  
Establishes program guidelines and requirements. 
History 
Statute requires the Director of the Department of Health Services (DHS) to adopt rules for 
the oversight of food and drinks sold at retail, including standards for producing, labeling, 
serving and transporting food products. State laws and rules also prescribe requirements for 
food preparers, including training courses, certification and registration with an online DHS 
registry. Rules prescribe sanitary conditions for warehouses, restaurants and other premises, 
including trucks or vehicles where food or drink is produced, stored, served or transported. 
Exempts food and drink served at noncommercial social events such as potlucks, home 
cooking schools and cottage food products. Cottage food products prepared in a home kitchen 
may be offered for commercial sale only if the products are not potentially hazardous and do 
not require time and temperature control for food safety among others (A.R.S. § 36-136). 
Approved foods in the cottage food products category include cakes, cookies, breads, jams and 
jellies made from allowable fruits. Potentially hazardous foods fall under retail food 
regulatory oversight, which requires the products to be prepared in a licensed commercial 
kitchen. Federal law and regulations require inspection of poultry, poultry products, meat 
and meat products, but exempt products from producers that slaughter fewer than 1,000 
poultry in a calendar year and operations conducted at retail stores and restaurants if 
requirements are met (9 CFR § 381.10). 
A similar bill was introduced  in the 56th Legislature, 1st Regular Session  and was vetoed by 
the Governor (HB 2509 food preparation; sale; cottage food).   
Provisions 
Expansion & Definitions 
1. Expands the foods that meet the cottage food product exemption to those that are 
potentially hazardous or require time or temperature control for safety if exempt under 
federal regulations. (Sec. 2) 
2. Authorizes the sale of cottage food products that meet federal regulations as follows:  
a) poultry, poultry byproducts or food products if the producer raised poultry pursuant 
to the 1,000-bird exemption; and  
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note    	HB 2042 
Initials DC 	Page 2 	Transmitted 
b) poultry, poultry byproducts or food products and meat, meat byproducts and food 
products from an inspected source pursuant to federal law. (Sec. 2) 
3. Specifies that alcoholic beverages or foods that contain the product, unpasteurized milk, 
fish, meat and poultry and their byproducts do not meet the definition of cottage food 
product unless the sale is allowed by federal law as specified above. (Sec. 2) 
4. Defines home kitchen to mean either: 
a) a residential home kitchen with 1,000 square feet or less; or 
b) a kitchen located in a facility for individuals with developmental disabilities.  (Sec. 2) 
5. Stipulates that potentially hazardous means a cottage food product does not meet the 
Federal Food and Drug Administration (FDA) requirements.  (Sec. 2)    
6. Defines third party food delivery platform as an online business that acts as an 
intermediary between consumers and food facilities to submit food orders by a consumer 
to a participating food facility and to arrange for the delivery of the order.  (Sec. 2) 
Sale and Delivery Requirements 
7. Places current law requiring labels, list of ingredients, registration number of food 
preparer, pertinent statement regarding allergens and other disclosure information in a 
separate article of law titled Cottage Food Products.  (Sec. 2) 
8. Requires the label to be clear and legible and to include a webpage address provided by 
DHS for the consumer to report foodborne illness and verity registration status. (Sec. 2) 
9. Outlines notification requirements for online sales of cottage food products. (Sec. 2) 
10. Prohibits the food preparer from storing food or the associated preparation equipment 
outside the home.  (Sec. 2) 
11. Requires cottage food products that do not contain dairy, meat or poultry to be sold and 
delivered to the consumer by the food preparer or agent, including a third-party vendor 
or carrier. (Sec. 2) 
12. Requires cottage food products that are dairy or that contain meat or poultry to be sold 
by the preparer in person or remotely, including over the internet and delivered to the 
consumer in person. (Sec. 2) 
13. Requires cottage food products that are potentially hazardous or require time or 
temperature control for safety to be maintained at the appropriate temperature when 
transported, but not more than once or longer than a two- hour period. (Sec. 2) 
14. Requires third-party vendors to sell cottage food products in a separate section of the store 
or display case with a sign that indicates the product is homemade and exempt from state 
licensing and inspection. (Sec. 2) 
15. States that a cottage food product may not be used as an ingredient in food sold at retail 
or include marijuana or its by-products.  (Sec. 2)  
16. Stipulates that a home kitchen cannot be used as a commissary for purposes of a mobile 
food vendor.  (Sec. 2)  
Miscellaneous 
17. Declares the provisions are no more restrictive than pertinent federal laws. (Sec. 2)  
18. Specifies that the requirements do not:     	HB 2042 
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a) impede DHS from investigating foodborne illness;  
b) change the requirements for brand inspections, animal health inspections or food 
inspections required by state or federal law; 
c) change the requirements for the sale of milk, milk products, raw milk or raw milk 
products; or 
d) affect any county or municipal building or zoning code or ordinance.  (Sec. 2) 
19. Provides direction to DHS for rulemaking, including recertification requirements and 
enforcement guidelines. (Sec. 2) 
20. States that a county is not required to enforce the provisions. (Sec. 2) 
21. Declares the provisions do not prevent DHS and a local health, public health services 
agency or environmental agency from entering into a delegation agreement for 
enforcement purposes. 
22. Makes technical and conforming changes. (Sec. 1)