Value-added Production | HB2144 Expands Opportunities for Cottage Food Producers
On May 1, 2024 the Hawaiʻi State Legislature made a significant move to strengthen economic resilience and promote local industries by passing HB2144.
This landmark bill aims to expand value-added production across the Aloha State.
On July 3, 2024, HB2144, first introduced by Rep. Kirstin Kahaloa, was signed into law by Governor Green, thereby enacting it as ACT 195.
HB2144 requires the State of Hawaiʻi Department of Health to revise the definition of "homemade food products" in its Hawaiʻi Administrative Rules and to establish specific regulations for the sale and delivery of these products.
This approach effectively expands opportunities for cottage food producers and consumers while maintaining food safety standards. The Department of Health has a deadline of December 31, 2024, to make specified amendments.
The following are excerpts from ACT 195:
The legislature finds that local food production is integral to the State’s economic development and food security. The legislature recognizes that what the department of health calls ‘homemade food products’ is what most states define as “cottage food”.
The legislature further finds that there is great interest in small-scale homemade food operations in the State. However, Hawaiʻi is one of only a few remaining states that does not provide certain exemptions from its department of health regulations for homemade food products.
The legislature believes that supporting homemade food operations in the State would grow small businesses; foster innovation and economic growth; offer locally made alternatives to imported brands; create local employment opportunities; keep more money within the local economy; and increase tax revenues to support the growing needs of the State, including ongoing wildfire relief efforts. Notably, the legislature also believes that expanding opportunities for small-scale homemade food operations will provide a valuable opportunity for local entrepreneurs to bring their homemade food products to market and can serve as an essential lifeline for producers impacted by the recent Maui wildfires.
Accordingly, the purpose of this Act is to expand opportunities for producers and consumers of homemade food products by requiring the Department of Health to:
(1) Amend the definition of "homemade food products" in its Hawaiʻi Administrative Rules on food safety; and
(2) Adopt certain rules regarding the sale and delivery of homemade food products.
No later than December 31, 2024, the Department of Health shall amend the definition of "homemade food products" under Chapter 11-50, Hawaii Administrative Rules, according to chapter 91, Hawaiʻi Revised Statutes, to read as follows:
"Homemade food products" means:
(1) Not potentially hazardous food produced or packaged in a home kitchen that does not include dried meats or seafood; and
{2) Foods of plant origin that are pickled, fermented, or acidified, except for cantaloupes and other fruits from the melon family, that are produced or packaged in a home kitchen that have a ph (degree of acidity or alkalinity) of equal to or less than 4.2 and a water activity value that is less than 0.88; provided that any homemade food product containing cut tomatoes, such as salsa, must be kept refrigerated at or below forty-one degrees Fahrenheit.
The Department of Health shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, that allow homemade food products to:
{1) Be sold by:
{A) The homemade food operator for direct sale to the consumer, whether in person or remotely, including by telephone or the Internet; or
{B) An agent of the homemade food operator or a third-party vendor, such as a retail shop or grocery store, to the consumer; and
(2) Be delivered to the consumer by:
{A) The homemade food operator;
{B) An agent of the homemade food operator or a third-party vendor, such as a retail shop or grocery store;
{C) Mail; or
{D) Shipping.
DOH Requirements:
Labeling Requirements: Specific labeling is required as well as the operator having a Food Handler Certificaton.
Food Safety Classes are offered FREE OF CHARGE by the DOH.
Register here.
According to an article by Honolulu Civil Beat, “[The Institute for Justice] has given Hawaii a C grade for its homemade food rules, leaving it at 43rd out of 69 sets of state rules and laws that the organization grades. Wyoming has the highest grade and its 2015 Food Freedom Act allows all home-cooked foods to be sold anywhere with very few regulations.”