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Committee advances bill to let licensed cottage-food producers sell through third parties

2347341 ยท February 19, 2025
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Summary

HB 398 would let licensed cottage food operators sell non-potentially hazardous products to third-party vendors (retailers or restaurants) instead of limiting them to direct-to-consumer sales; the committee gave the bill a do-pass recommendation by voice vote.

Rep. (author) presented HB 398 to the committee as legislation to expand market access for licensed cottage-food operators by allowing them to sell packaged, non-potentially hazardous products through third-party vendors such as retailers and restaurants.

"This bill opens up opportunities for our cottage food operators to expand their small businesses," the author said, adding that the Department of Agriculture already licenses and oversees the cottage food program. Committee members asked about inspection and oversight, and the author repeatedly told them oversight remains with the Georgia Department of Agriculture and that licensing, training and annual renewals are already part of the existing program.

Rep. Tyler asked, "Where's the oversight?" and the author answered the Department of Agriculture retains inspection authority and a training program and annual license renewals are maintained.

Representative concerns included whether county-by-county inspection resources could meet demand across 159 counties; the author and committee members noted that cottage foods are defined narrowly in the bill to non-potentially hazardous items such as breads, rolls, biscuits and cakes and that labeling requirements make clear these products have not been inspected like restaurant food.

Committee action: The committee voted to give HB 398 a do-pass recommendation by voice vote; the hearing record did not provide a numerical tally.

Why it matters: The bill would broaden market opportunities for small food entrepreneurs who now may only sell directly to consumers, enabling retail distribution channels while leaving Department of Agriculture licensing and labeling rules in place.

Votes at a glance: HB 398 โ€” Motion: move to do pass; Outcome: approved by voice vote; tally not specified.