FOR AN ACT ENTITLED, An Act to exempt cottage food operations from certain licensure requirements and to establish alternative requirements for the sale of certain baked goods.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That chapter 34-18 be amended by adding thereto a NEW SECTION to read as follows:

    Terms used in this Act mean:

            (1)    "Cottage food operation," any business on the premises of a person's home in which prepared food is produced for sale in the person's home for consumption off the premises;

            (2)    "Department," the Department of Health;

            (3)    "Home," a primary residence that is occupied by the person who operates a cottage food operation and that contains a kitchen and appliances designed for common residential usage;

            (4)    "Prepared food," baked goods, including breads, fruit pies, pastries, and cakes.
    Section 2. That chapter 34-18 be amended by adding thereto a NEW SECTION to read as

follows:

    No person may operate a cottage food operation unless the person has obtained a permit from the department. A violation of this section is a Class 2 misdemeanor. No cottage food operation that obtains a permit pursuant to this Act is required to be licensed as a food service establishment pursuant to this chapter.
    Section 3. That chapter 34-18 be amended by adding thereto a NEW SECTION to read as follows:

    Any person seeking a permit to operate a cottage food operation shall submit an application on a form prescribed by the department and pay an application fee of forty dollars. The department shall issue a permit for a cottage food operation if the applicant submits the application, pays the fee, and passes an inspection required by section 6 of this Act.
    Section 4. That chapter 34-18 be amended by adding thereto a NEW SECTION to read as follows:

    A permit to operate a cottage food operation expires one year from the date of issuance. A permit may be renewed upon submission of a renewal application on a form prescribed by the department and a renewal fee of forty dollars. The department may require an inspection before issuing a renewal of a permit.
    Section 5. That chapter 34-18 be amended by adding thereto a NEW SECTION to read as follows:

    Any fees collected by the department pursuant to this Act shall be deposited in the general fund.
    Section 6. That chapter 34-18 be amended by adding thereto a NEW SECTION to read as follows:

    The department shall inspect a cottage food operation before issuing a permit to operate. The

department shall also inspect a cottage food operation if the department has reason to believe that the cottage food operation is operating in an unsanitary manner.