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    5.    
LEGISLATION COMMITTEE
Meeting Date: 09/13/2021  
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 inquiries from the public regarding the status of implementation of Assembly Bill 626 (Garcia) in Contra Costa County, which would authorize the establishment of Microenterprise Home Kitchen Operations (MEHKO) in Contra Costa County.

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

At their March meeting, the Legislation Committee requested a report update from staff regarding status of other counties that have opted in before reconsideration by the Committee.
Referral Update:
Assembly Bill 626 and AB 377 (Eduardo Garcia)

The text of these bill is available at:
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180AB626
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB377

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. 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. 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.
The chart below compares various county’s MEHKO programs. Information is current as of 8/25/2021.
County Program Started Number of Application Received Number of permits issued Fees Charged Notes
Riverside 06/2019 Unknown 130 $651 permit Charges $186/hr. if follow-up needed with applicant.
Alameda 07/2021 22 2 $696 permit -
Lake 01/2021 7 2 $256 permit & $128 per hour for plan check. Pilot Project. Max 2 permits per Sup. District (10 total).
Solano 06/2021 Unknown 5 $452 permit -
San Mateo 08/2021 5 pending waived 2-year pilot project. Board is subsidizing fees.
City of Berkeley 12/2020 7 1 $510 permit -

As discussed during the previous Legislation Committee meeting, Riverside County has the longest running program and, according to staff, has not had any major complaints or issues. The Counties of Alameda, Lake, Solano, San Mateo, and the City of Berkeley started their programs recently and were unable to provide extensive feedback on the successes or issues with their MEHKO program.

In terms of public inquiry regarding the status of AB 626 in Contra Costa County, staff has received 7 inquiries in over the last year.

The concept of utilizing restaurant kitchens (which already have health permits) during days/times they are usually closed was discussed during the last Committee meeting. Incentives for utilizing existing food facilities could be that EH would only require they register (no fee) with EH to allow for home cooks to rent their kitchen. For the home cook, since EH staff would not be going to inspect a private residence, one inspector could complete the inspection instead of needing two inspectors, reducing the permit fee in half.

Concerns of Staff:

Staff concerns remain the same as discussed during the July 2020 and March 2021 Committee meetings regarding the exceptions in the bill that undermine established food safety practices and engineering controls that mitigate cross contamination, scheduling of permitting and complaint inspections, lack of a dedicated handwash sink (per CDC, a large percentage of foodborne disease outbreaks are spread by contaminated hands), and the fact that we would not be conducting a routine inspection where EH would be able to observe if the operator is properly handling food.

Other options that are available include operating a mobile food facility, 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.
Fiscal Impact (if any):
If allowed 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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