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LEGISLATION COMMITTEE
Meeting Date: 07/11/2022  
Subject:    Microenterprise Home Kitchen Operations Update
Submitted For: LEGISLATION COMMITTEE
Department: County Administrator  
Referral No.: 2022-12  
Referral Name: MEHKO
Presenter: Jocelyn Stortz Contact: Jocelyn Stortz (925) 608-5500

Information
Referral History:
Over the past several years, the Board of Supervisors has received inquiries from the public regarding implementation of Assembly Bill 626 in Contra Costa County to establish Microenterprise Home Kitchen Operations (MEHKO) in Contra Costa County.

Health Services Department's Environmental Health staff reported to the Legislation Committee on MEHKOs on July 13, 2020, March 8, 2021, and September 13, 2021 with the recommendation to not authorize their establishment in Contra Costa County.

Senate Bill 972 was introduced by Senator Gonzalez on February 10, 2022 which would authorize MEHKOs to serve as a commissary or a mobile support unit for up to 2 compact mobile food operations than conduct only limited food preparation. The bill was last amended on June 30, 2022.

At their September 13, 2021 meeting, the Legislation Committee requested an update from staff regarding status of implementation of MEHKO's in other counties that have opted in before reconsideration by the Committee.
Referral Update:
Assembly Bill 626 was signed into law by Governor Brown on September 18, 2018 and became effective on January 1, 2019. This bill, known as the Homemade Food Act, allows for home cooks to sell potentially hazardous foods to the public.

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. These 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 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. Riverside County was the first county to opt-in to AB 626.

Subsequent to the passage of AB 626, a clean-up bill (Assembly Bill 377) was signed into law by Governor Newsom. This bill became effective 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 MHKO 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.
There is legislation currently under review (Senate Bill 972), which modifies MEHKO operations. The bill was last amended on 06/30/2022. It authorizes a MEHKO to serve as a commissary for up to 2 compact mobile food operations and to vend their food from a mobile food operation.

The chart below compares various county’s MEHKO programs. Information is current as of 7/6/2022.
County Program Started Number of permits issued Notes
Riverside 06/2019 83
Alameda 07/2021 38
Santa Clara 05/2022 0 3-year pilot project
Solano 06/2021 12
San Mateo 08/2021 26 2-year pilot project.
San Benito 05/2022 0
City of Berkeley 12/2020 1

As noted above, Santa Clara and San Mateo counties are running pilot projects. Riverside, Alameda, Solano, San Benito Counties and City of Berkeley have opted in.

Regarding complaints over the past year, Alameda County, Solano County, and City of Berkeley have not receive any MEHKO complaints. Riverside County has received 4 complaints.

Concerns of Staff:

Staff concerns remain the same as discussed during the July 2020, March 2021, and September 2021 meetings of the Legislation Committee. The exceptions in the bill that undermine established food safety practices and engineering controls that mitigate cross contamination, lack of a dedicated handwash sink (per CDC, a large percentage of foodborne disease outbreaks are spread by contaminated hands), and the fact that inspections must be scheduled would limit our ability to observe their actual operation and food handling practices.

Other options that are available include operating a mobile food facility (Food Truck), operating at a temporary food event, or utilizing a production kitchen.

 
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 DIRECT staff to return with additional information related to implementation in counties that have opted in at a specific date.
Fiscal Impact (if any):
If allowed by the Board of Supervisors, the Environmental Health Division will need to establish and 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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