Cottage food operations.

Existing law, the California Retail Food Code, establishes uniform health and sanitation standards for, and provides for regulation by the State Department of Public Health of, retail food facilities, as defined, and requires local health agencies to enforce these provisions. The code defines "cottage food operation" to mean an enterprise that does not have more than one full-time employee within the registered or permitted area of a private home where the cottage food operator resides and where cottage food products are prepared or packaged for direct, indirect, or direct and indirect sale to consumers, and prohibits the operation from having more than $50,000 in gross annual sales in the calendar year. Existing law requires a "Class A" cottage food operation to register with the local enforcement agency in accordance with specified provisions, and to renew its registration annually. Existing law requires a "Class B" cottage food operation to obtain a permit from the local enforcement agency, as specified, and authorizes the operation to engage in the indirect sales of cottage food products within the county in which the operation is permitted. Existing law requires a registration or permit to be valid only for the person, location, type of food sales, and distribution activity specified by that registration or permit. A person who violates any provision of the code is guilty of a misdemeanor, except as otherwise provided, and violations of the California Retail Food Code are enforced by local health officers. This bill would, among other things, increase the maximum gross annual sales amount to $75,000 for a "Class A" cottage food operation and $150,000 for a "Class B" cottage food operation and would require that amount to be annually adjusted for inflation based on the California Consumer Price Index. The bill would also require a "Class B" operation to renew its permit annually, and would authorize a "Class B" operation to engage in direct and indirect sales of, and a "Class A" operation to engage in direct sales of, cottage food products throughout the state. By changing the definition of a crime and increasing the duties of local officials, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.