"NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Cottage food operation" means a person who produces cottage food products only in the home kitchen of that person's primary domestic residence in Washington and only for sale directly to the consumer.
     (2) "Cottage food products" means nonpotentially hazardous baked goods; jams, jellies, preserves, and fruit butters as defined in 21 C.F.R. Sec. 150 as it existed on the effective date of this section; and other nonpotentially hazardous foods identified by the director in rule.
     (3) "Department" means the department of agriculture.
     (4) "Director" means the director of the department.
     (5) "Domestic residence" means a single-family dwelling or an area within a rental unit where a single person or family actually resides. Domestic residence does not include:
     (a) A group or communal residential setting within any type of structure; or
     (b) An outbuilding, shed, barn, or other similar structure.
     (6) "Home kitchen" means a kitchen primarily intended for use by the residents of a home. It may contain one or more stoves or ovens, which may be a double oven, designed for residential use.
     (7) "Permitted area" means the portion of a domestic residence housing a home kitchen where the preparation, packaging, storage, or handling of cottage food products occurs.
     (8) "Potentially hazardous food" means foods requiring temperature control for safety because they are capable of supporting the rapid growth of pathogenic or toxigenic microorganisms, or the growth and toxin production of Clostridium botulinum.

NEW SECTION.  Sec. 2   (1) The director may adopt, by rule, requirements for cottage food operations. These requirements may include, but are not limited to:
     (a) The application and renewal of permits under section 3 of this act;
     (b) Inspections as provided under section 4 of this act;
     (c) Sanitary procedures;
     (d) Facility, equipment, and utensil requirements;
     (e) Labeling specificity beyond the requirements of this section;
     (f) Requirements for clean water sources and waste and wastewater disposal; and
     (g) Requirements for washing and other hygienic practices.
     (2) A cottage food operation must package and properly label for sale to the consumer any food it produces, and the food may not be repackaged, sold, or used as an ingredient in other foods by a food processing plant, or sold by a food service establishment.
     (3) A cottage food operation must place on the label of any food it produces or packages, at a minimum, the following information:
     (a) The name and address of the business of the cottage food operation;
     (b) The name of the cottage food product;
     (c) The ingredients of the cottage food product, in descending order of predominance by weight;
     (d) The net weight or net volume of the cottage food product;
     (e) Allergen labeling as specified by the director in rule;
     (f) If any nutritional claim is made, appropriate labeling as specified by the director in rule;
     (g) The following statement printed in at least the equivalent of eleven-point font size in a color that provides a clear contrast to the background: "Made in a home kitchen that has not been subject to standard inspection criteria."
     (4) Cottage food products may only be sold directly to the consumer and may not be sold by internet, mail order, or for retail sale outside the state.
     (5) Cottage food products must be stored only in the primary domestic residence.

NEW SECTION.  Sec. 3   (1) All cottage food operations must be permitted annually by the department on forms developed by the department. All permits and permit renewals must be made on forms developed by the director and be accompanied by an inspection fee as provided in section 4 of this act, a seventy-five dollar public health review fee, and a thirty dollar processing fee. All fees must be deposited into the food processing inspection account created in RCW 69.07.120.
     (2) In addition to the provision of any information required by the director on forms developed under subsection (1) of this section and the payment of all fees, an applicant for a permit or a permit renewal as a cottage food operation must also provide documentation that all individuals to be involved in the preparation of cottage foods have secured a food and beverage service worker's permit under chapter 69.06 RCW.
     (3) All cottage food operations permitted under this section must include a signed document attesting, by opting to become permitted, that the permitted cottage food operation expressly grants to the director the right to enter the domestic residence housing the cottage food operation during normal business hours, or at other reasonable times, for the purposes of inspections under this chapter.

NEW SECTION.  Sec. 4   (1) The permitted area of all cottage food operations must be inspected for basic hygiene by the director both before initial permitting under section 3 of this act and annually after initial permitting. In addition, the director may inspect the permitted area of a cottage food operation at any time in response to a foodborne outbreak or other public health emergency.
     (2) When conducting an annual basic hygiene inspection, the director shall, at a minimum, inspect for the following:
     (a) That the permitted cottage food operator understands that no person other than the permittee, or a person under the direct supervision of the permittee, may be engaged in the processing, preparing, packaging, or handling of any cottage food products or be in the home kitchen during the preparation, packaging, or handling of any cottage food products;
     (b) That no cottage food preparation, packaging, or handling is occurring in the home kitchen concurrent with any other domestic activities such as family meal preparation, dishwashing, clothes washing or ironing, kitchen cleaning, or guest entertainment;
     (c) That no infants, small children, or pets are in the home kitchen during the preparation, packaging, or handling of any cottage food products;
     (d) That all food contact surfaces, equipment, and utensils used for the preparation, packaging, or handling of any cottage food products are washed, rinsed, and sanitized before each use;
     (e) That all food preparation and food and equipment storage areas are maintained free of rodents and insects; and
     (f) That all persons involved in the preparation and packaging of cottage food products:
     (i) Have obtained a food and beverage service workers permit under chapter 69.06 RCW;
     (ii) Are not going to work in the home kitchen when ill;
     (iii) Wash their hands before any food preparation and food packaging activities; and
     (iv) Avoid bare hand contact with ready-to-eat foods through the use of single-service gloves, bakery papers, tongs, or other utensils.
     (3) The department shall charge an inspection fee of one hundred twenty-five dollars for any initial or annual basic hygiene inspection, which must be deposited into the food processing inspection account created in RCW 69.07.120. An additional inspection fee must be collected for each visit to a cottage food operation for the purposes of conducting an inspection for compliance.
     (4) The director may contract with local health jurisdictions to conduct the inspections required under this section.

NEW SECTION.  Sec. 5   (1) The gross sales of cottage food products may not exceed an annual amount set by the department. The determination of the maximum annual gross sales must be computed on the basis of the amount of gross sales within or at a particular domestic residence and may not be computed on a per person basis within or at an individual domestic residence.
     (2) If gross sales exceed the maximum annual gross sales amount, the cottage food operation must either obtain a food processing plant license under chapter 69.07 RCW or cease operations.
     (3) A cottage food operation exceeding the maximum annual gross sales amount is not entitled to a full or partial refund of any fees paid under section 3 or 4 of this act.
     (4) The maximum annual gross sales amount must be established in rule by the department consistent with this subsection. The amount must be set at fifteen thousand dollars until December 31, 2012. Beginning January 1, 2013, the department must increase the fifteen thousand dollar annual gross sales limit biennially to reflect inflation. The department may determine inflation-based increases in any matter it deems most efficient.
     (5) The director may request in writing documentation to verify the annual gross sales figure.

NEW SECTION.  Sec. 6   (1) For the purpose of determining compliance with this chapter, the director may access, for inspection purposes, the permitted area of a domestic residence housing a cottage food operation permitted by the director under this chapter. This authority includes the authority to inspect any records required to be kept under the provisions of this chapter.
     (2) All inspections must be made at reasonable times and, when possible, during regular business hours.
     (3) Should the director be denied access to the permitted area of a domestic residence housing a cottage food operation where access was sought for the purposes of enforcing or administering this chapter, the director may apply to any court of competent jurisdiction for a search warrant authorizing access to the permitted area of a domestic residence housing a permitted cottage food operation, upon which the court may issue a search warrant for the purposes requested.
     (4) Any access under this section must be limited to the permitted area and further limited to the purpose of enforcing or administering this chapter.

NEW SECTION.  Sec. 7   (1) After conducting a hearing, the director may deny, suspend, or revoke any permit provided for in this chapter if it is determined that a permittee has committed any of the following acts:
     (a) Refused, neglected, or failed to comply with the provisions of this chapter, any rules adopted to administer this chapter, or any lawful order of the director;
     (b) Refused, neglected, or failed to keep and maintain records required by this chapter, or to make the records available when requested pursuant to the provisions of this chapter;
     (c) Consistent with section 6 of this act, refused the director access to the permitted area of a domestic residence housing a cottage food operation for the purpose of carrying out the provisions of this chapter;
     (d) Consistent with section 6 of this act, refused the department access to any records required to be kept under the provisions of this chapter; or
     (e) Exceeded the annual income limits provided in section 5 of this act.
     (2) The director may summarily suspend a permit issued under this chapter if the director finds that a cottage food operation is operating under conditions that constitute an immediate danger to public health or if the director is denied access to the permitted area of a domestic residence housing a cottage food operation and records where the access was sought for the purposes of enforcing or administering this chapter.

NEW SECTION.  Sec. 8   The rights, remedies, and procedures respecting the administration of this chapter, including rule making, emergency actions, and permit suspension, revocation, or denial are governed by chapter 34.05 RCW.

NEW SECTION.  Sec. 9   (1)(a) Any person engaging in a cottage food operation without a valid permit issued under section 3 of this act or otherwise violating any provision of this chapter, or any rule adopted under this chapter, is guilty of a misdemeanor.
     (b) A second or subsequent violation is a gross misdemeanor. Any offense committed more than five years after a previous conviction shall be considered a first offense.
     (2) Whenever the director finds that a person has committed a violation of any of the provisions of this chapter, and that violation has not been punished pursuant to subsection (1) of this section, the director may impose upon and collect from the violator a civil penalty not exceeding one thousand dollars per violation per day. Each violation shall be a separate and distinct offense.

NEW SECTION.  Sec. 10   Except as otherwise provided in this chapter, cottage food operations with a valid permit under section 3 of this act are not subject to the provisions of chapter 69.07 RCW or to permitting and inspection by a local health jurisdiction.

NEW SECTION.  Sec. 11   Nothing in this chapter affects the application of any other state or federal laws or any applicable ordinances enacted by any local unit of government.

Sec. 12   RCW 69.07.120 and 1992 c 160 s 5 are each amended to read as follows:
     All moneys received by the department under the provisions of this chapter and chapter 69.--- RCW (the new chapter created in section 14 of this act) shall be paid into the food processing inspection account hereby created within the agricultural local fund established in RCW 43.23.230 and shall be used solely to carry out the provisions of this chapter and chapters 69.--- RCW (the new chapter created in section 14 of this act) and 69.04 RCW.

Sec. 13   RCW 69.07.100 and 2002 c 301 s 10 are each amended to read as follows:
     (1) The provisions of this chapter shall not apply to establishments issued a permit or licensed under the provisions of:
     (((1))) (a) Chapter 69.25 RCW, the Washington wholesome eggs and egg products act;
     (((2))) (b) Chapter 69.28 RCW, the Washington state honey act;
     (((3))) (c) Chapter 16.49 RCW, the Meat inspection act;
     (((4))) (d) Chapter 77.65 RCW, relating to the direct retail endorsement for wild-caught seafood;
     (((5))) (e) Chapter 69.--- RCW (the new chapter created in section 14 of this act), relating to cottage food operations;
     (f) Title 66 RCW, relating to alcoholic beverage control; and
     (((6))) (g) Chapter 69.30 RCW, the sanitary control of shellfish act. ((However,))
     (2) If any such establishments process foods not specifically provided for in the above entitled acts, ((such)) the establishments ((shall be)) are subject to the provisions of this chapter.
     (3) The provisions of this chapter ((shall)) do not apply to restaurants or food service establishments.

NEW SECTION.  Sec. 14   Sections 1 through 11 of this act constitute a new chapter in Title 69 RCW."