To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Introduce Ordinance No. 2024-05 to Establish a Two-Year Pilot Program for Microenterprise Home Kitchen Operations
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
INTRODUCE Ordinance No. 2024-05, establishing a two-year pilot program for permitting Microenterprise Home Kitchen Operations within Contra Costa County, WAIVE reading, and FIX May 21, 2024, for adoption.
FISCAL IMPACT:
The costs to administer the Microenterprise Home Kitchen Operations program will initially be absorbed by the existing budget of the Contra Costa Health, Environmental Health Division (EHD) and supplemented by an upcoming Microenterprise Home Kitchen Operations grant program allocated in the 2022 State budget. On the proposed ordinance adoption date of May 21, 2024, EHD also intends to present a resolution to the Board to establish new permit fees to cover the cost of the Microenterprise Home Kitchen Operations program. There likely will be no impact to the County’s general fund, as EHD is fully cost-covered by permit fees established via Board resolution.
BACKGROUND:
On January 1, 2019, California Assembly Bill 626 (AB 626) went into effect and Microenterprise Home Kitchen Operation was established as a new type of retail food facility that allows an individual to operate a restaurant in their private residence.
In October 2019, California Assembly Bill 377 (AB 377) made some changes to AB 626 and provided regulatory clarity. This Bill provided each county full discretion to authorize the Microenterprise Home Kitchen Operations program within its jurisdiction.
In July 2023, California Assembly Bill 1325 (AB 1325) further modified state law relating to Microenterprise Home Kitchen Operations, increasing the maximum amount of gross annual sales and increasing the limit on the number of individual meals that can be sold by a Microenterprise Home Kitchen Operation.
Currently, the legislation permits counties to authorize individuals to use their home kitchens to prepare, sell and serve up to 30 meals per day, or 90 meals per week, and collect a maximum annual revenue of $100,000. Family members can be employed to help operate Microenterprise Home Kitchen Operations, along with a maximum of one paid non-family employee. Risky food preparation techniques are prohibited, and menus are restricted to items that can be prepared and sold the same day. Meals can be served in the home, picked up by the customer, or delivered by the Microenterprise Home Kitchen operator.
Microenterprise Home Kitchen Operations require an annual valid health permit issued by the Contra Costa Health, Environmental Health Division, an initial permitting inspection and an annual routine inspection thereafter. Microenterprise Home Kitchen Operation owners are required to obtain a Food Manager certificate and employees are required to obtain a Food Handler card.
Since the state established Microenterprise Home Kitchen Operations in 2019, ten counties have permanently authorized these operations. In addition, three counties have temporarily authorized Microenterprise Home Kitchen Operation pilot programs. As of March 2024, there are nearly 400 permitted Microenterprise Home Kitchen Operations across the state.
On October 24, 2023, the Board of Supervisors directed EHD to return with an ordinance for temporary authorization of Microenterprise Home Kitchen Operations in Contra Costa County as a pilot program.
The attached Ordinance No. 2024-05 would temporarily authorize the permitting of Microenterprise Home Kitchen Operations within the incorporated and unincorporated areas of the County. It establishes a two-year program, ending June 30, 2026. EHD anticipates proposing permanent adoption of the program at the conclusion of the two-year program.
The benefits of authorizing Microenterprise Home Kitchen Operations include:
• Increased economic opportunities;
• Encourages safer and legal home businesses;
• Allows people to learn how to operate small-scale food businesses;
• Enables in-home care for families while still generating income;
• Creates additional family income; and
• Provides food in remote locations and food deserts.
CONSEQUENCE OF NEGATIVE ACTION:
Microenterprise Home Kitchen Operations will not be authorized in Contra Costa County and will continue to be prohibited within the county.