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    5.    
LEGISLATION COMMITTEE
Meeting Date: 03/08/2021  
Subject:    Microenterprise Home Kitchen Operations
Submitted For: LEGISLATION COMMITTEE
Department: County Administrator  
Referral No.: 2021-07  
Referral Name: Microenterprise Home Kitchen Operations
Presenter: Jocelyn Stortz, Director of Environmental Health Contact: J. Stortz (925) 608-5500

Information
Referral History:
The Board of Supervisors has received several inquiries from the public regarding the status of implementation of Assembly Bill 626 (Garcia) in Contra Costa County and urging the Board to adopt an ordinance allowing the establishment of Microenterprise Home Kitchen Operations (MEHKOs) in Contra Costa County.

Environmental Health staff reported on MEHKOs to the Legislation Committee of the Board of Supervisors on July 13, 2020, with the recommendation to not allow their establishment in Contra Costa County. (The Committee supported staff's recommendation at that time and indicated the matter could be reconsidered in the future.)

Supervisor Mitchoff has requested a report from staff regarding status of program implementation in other counties which have opted in to AB 626 and requested that this be considered by the Legislation Committee.
Referral Update:
Prior to 2012, the California Retail Food Code (CRFC), required all food sold to consumers to be made at an inspected commercial kitchen. With the passage of the California Homemade Food Act known as “cottage food operations” (CFO) in 2013, certain low risk (i.e. shelf-stable, non-perishable) food products such as bread, fruit jams, and dried fruit could be made in private
home kitchens and be sold to consumers under limited conditions.

On September 18, 2018, then Governor Brown signed Assembly Bill 626 (AB 626), making an amendment to the California Retail Food Code establishing “microenterprise home kitchen operation” (MEHKO) as a new category of retail food facility. MEHKOs are restaurants in a private residence operated by the resident and are allowed to produce a very broad variety of complex food products that the CFO permit does not allow.

The intent of the bill was to provide economic opportunities for those who were limited by the cost and other barriers to starting a food business. Under it, residents of single family homes can operate what are referred to as microenterprise home kitchens, which can earn up to $50,000 in revenue per year by cooking meals or items at their homes’ kitchens. Meal sales are capped at 30 meals per day, or 60 meals per week. So-called homecooks must obtain California food handler card certification, which can be obtained through completing online training and passing a test. Kitchens must pass an on-site inspection in order to be permitted. Under AB 626, prepared food can be picked up or sent out, as well as consumed at the home.

Although the bill passed the California state legislature and was signed by the Governor, it is up to each county in California to adopt the law. The county or city can choose to “opt-in” by ordinance or resolution to allow Microenterprise Home Kitchen Operations (MEHKOs) in their jurisdiction.

Subsequent to the passage of AB 626, a clean-up bill, Assembly Bill 377, was signed into law by Governor Newsom on October 7, 2019. This clean-up bill includes and clarifies the following:

1. Prohibits a MEHKO from producing, manufacturing, processing, freezing, or packaging milk or milk products, including, but not limited to, cheese and ice cream;

2. Modifies the conditions for a city, county, or city and county to permit MEHKO within its jurisdiction. The County is the only entity allowed to opt in by ordinance or resolution except if a city has their own environmental health enforcement agency (e.g., City of Berkeley);

3.Modifies the inspections and food safety standards applicable to MEHKO;

4. Prohibits an internet food service intermediary or a MEHKO from using the word "catering" or any variation of that word in a listing or advertisement of a microenterprise home kitchen operation’s offer of food for sale;

5. Requires MEHKO to include specific information, including its permit number, in its advertising; and

6. Prohibits third party delivery service from delivering food produced by a MEHKO, except to an individual who has a physical or mental condition that is a disability which limits the individual’s ability to access the food without the assistance of a third-party delivery service.

In 2019, Riverside County was the first County to opt in. There are approximately 104 permitted microenterprise home kitchens in Riverside County. Initially, a significant amount of time was spent educating applicants on safe food handling practices. To date, there have not been substantive complaints regarding the MEHKOs in operation in Riverside County.

Solano County, San Mateo County, City of Berkeley, and Alameda County are in various phases of allowing MEHKOs to operate in their jurisdiction. The COVID-19 pandemic has delayed implementation of the programs. Solano County opted in by resolution in 2020. San Mateo County has not implemented its 2-year pilot study, which is contingent on hiring a staff person to develop and run the program. Berkeley’s City Council opted in by ordinance on December 1, 2020. Alameda County Environmental Health staff met with the Health Committee on November 23, 2020 and is working on implementation steps and permit fees.

Concerns of Staff:

Staff concerns discussed during the July 13, 2020 Legislation Committee meeting included the exceptions in the bill that undermine established food safety practices and engineering controls that mitigate cross contamination; the issue with scheduling inspections (both routine and complaint); and lacking a dedicated handwash sink (per CDC, a large percentage of foodborne disease outbreaks are spread by contaminated hands).

The concerns with the exceptions provided by the bill would be mitigated by the home cook working out of a permitted production kitchen which would make food processing and handling safer.
Recommendation(s)/Next Step(s):
CONSIDER making a recommendation to the Board of Supervisors to not allow for Microenterprise Home Kitchens to operate in Contra Costa County or defer the matter until additional information is obtained.
Fiscal Impact (if any):
If AB 626 is opted-in by the Board of Supervisors, the Environmental Health Division will need to charge permit fees and hire staff to develop the program and cover activities that support a Microenterprise Home Kitchen Operation program.
Attachments
No file(s) attached.

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