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HB 535

Food Establishments - Cottage Food Businesses - Maximum Annual Revenue

2026 Regular Session Introduced by Steve Arentz and 4 co-sponsors

HB 535 adjusts maximum annual revenue limits for Maryland cottage food businesses operating from home kitchens under state exemption rules.

Approved by the Governor - Chapter 320
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Bill Summary · HB 535

Legislative bill overview

HB 535 modifies Maryland's cottage food operation regulations by establishing or adjusting maximum annual revenue thresholds for businesses operating under the state's cottage food exemption. This exemption allows individuals to prepare certain foods in home kitchens without commercial licensing, provided they meet specific safety and revenue requirements. The bill appears to revise these revenue caps, though the exact threshold adjustment is not specified in the available action history.

Why is this important

Cottage food operations represent an important pathway for small entrepreneurs, food artisans, and side-business operators to enter the market with minimal startup costs. Adjusting revenue caps directly affects which businesses qualify for this exemption—raising caps enables more established operations to remain home-based, while lowering them would push more successful producers toward commercial kitchens. This balance impacts small business viability, food safety oversight, and local economic activity.

Potential points of contention

  • Business competitiveness: Unclear whether revenue adjustments favor home-based producers or push them prematurely into expensive commercial kitchen requirements
  • Food safety concerns: Questions about whether current or adjusted thresholds adequately protect consumers while still enabling small business growth
  • Enforcement burden: Changes to revenue thresholds may complicate state monitoring and compliance verification for what should be a low-regulation category

Compiled from official sources — confirm details with the bill’s official record.

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