Food Establishments - Cottage Food Businesses - Maximum Annual Revenue
HB 535 increases the annual gross revenue cap for a “cottage food business” from $50,000 to $100,000. Under Maryland’s food law, a cottage food business is one that produces or packages nonhazardous food products in a residential kitchen and sells them under the state’s cottage food rules. The bill does not change the basic structure of the cottage food program; it only raises the amount of revenue a business may earn from cottage food sales while still qualifying for that status.
The measure is aimed at allowing home-based food entrepreneurs to grow their businesses without losing cottage food classification. It preserves the existing requirements that sales comply with Department of Health regulations and that products be sold through approved channels such as direct-to-consumer sales, farmers markets, public events, personal delivery, mail delivery, or sales to certain retail food stores and food cooperatives. The act takes effect October 1, 2026.
The bill amends § 21-301(b-1) of the Health-General Article in the Maryland Code by replacing the prior $50,000 annual revenue limit with $100,000. This expands the pool of home-based food businesses that can continue operating under the cottage food framework, potentially reducing the need for some businesses to transition to a more heavily regulated commercial food establishment model. It does not alter the definition of cottage food products or the sales channels allowed under existing law.
The available legislative record shows no recorded committee transcript debate or vote breakdown, and the bill was ultimately approved by the Governor as Chapter 320. Based on the bill’s straightforward revenue-cap increase and lack of recorded opposition in the provided materials, the overall sentiment appears supportive and noncontroversial. The measure is consistent with a pro-small-business approach to expanding opportunities for home-based food producers.
No specific points of contention are documented in the provided committee materials or voting history. If any concerns existed, they would likely have centered on whether raising the revenue cap could affect food safety oversight, market fairness, or the distinction between cottage food operations and licensed commercial food businesses. However, the record provided does not show any formal opposition or disputed amendments.