To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Introduce Ordinance No. 2026-10 to Establish Permanent Program for Pertmitting Microenterprise Home Kitchen Operations
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
INTRODUCE Ordinance No. 2026-10, repealing Section 413-3.2012 of the County Ordinance Code, thereby establishing a permanent program for permitting Microenterprise Home Kitchen Operations within Contra Costa County, WAIVE reading, and FIX May 19, 2026, for adoption.
FISCAL IMPACT:
There will be no impact to the County’s general fund as the Environmental Health Division (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 (MEHKO) 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 MEHKO program within its jurisdiction.
In July 2023, California Assembly Bill 1325 (AB 1325) further modified state law relating to MEHKOs, increasing the maximum amount of gross annual sales and increasing the limit on the number of individual meals that can be sold by a MEHKO.
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, as adjusted annually for inflation based on the California Consumer Price Index. Family members can be employed to help operate MEHKOs, 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.
MEHKOs require an annual valid health permit issued by the Contra Costa Health, EHD, an initial permitting inspection and an annual routine inspection thereafter. MEHKO 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, at least fifteen counties have permanently authorized these operations.
In June 2024, per Ordinance No. 2024-05, Contra Costa County added Article 413-3.20 to the County Ordinance Code, which temporarily authorized the permitting of MEHKOs within the incorporated and unincorporated areas of the County for a two-year term. Per Section 413-3.2012 of the County Ordinance Code, Article 413-3.20 expires on June 30, 2026 “unless repealed or extended by the Board of Supervisors before that date.”
Since the launch of the two-year pilot program for MEHKOs, EHD has permitted 94 MEHKOs within the County. The pilot program was intended to evaluate the safety, equity, compliance, economic development potential, and public health impacts of permitting small-scale, home-based food businesses.
The MEHKO pilot program has demonstrated strong compliance, equitable participation, broad geographic coverage, significant community demand, successful transition of previously unpermitted food businesses into compliance, and no adverse public health impacts. The program aligns with statewide regulation and provides meaningful economic opportunities for home‑based food entrepreneurs while maintaining adequate public health protections.
Staff has completed a multi‑source evaluation using EHD permitting data, GIS spatial datasets, complaint logs, operator technical assistance records, workshop activity, and statewide jurisdictional surveys. EHD permitting data shows that the MEHKO pilot program achieved broad geographic reach across West, Central, and East County, including Richmond, San Pablo, Hercules, Rodeo, Concord, Martinez, Walnut Creek, Pleasant Hill, Moraga, Antioch, Pittsburg, Oakley, Brentwood, Danville, and San Ramon. As of April 22, 2026, 34 MEHKO operators have applied for renewal in current permit year demonstrating sustained participation and program viability. The pilot program has served as a powerful catalyst for inclusive economic development, lowering the barrier to entry for a diverse coalition of local entrepreneurs. Demographic data collected from permitted operators indicates that the program is predominantly supporting women-owned microenterprises and individuals from historically underrepresented backgrounds, including Hispanic/Latinx, Asian, and Native Hawaiian/Pacific Islander communities. Furthermore, the program is actively generating supplemental income opportunities across all socioeconomic tiers, successfully serving households earning under $50,000 annually alongside higher-income brackets.
Public health complaint data confirm the program’s safety. EHD received only two complaints, both concerning the same permitted MEHKO, and no foodborne illness complaints occurred during the pilot period. Additionally, only four local code enforcement jurisdictions responded to requests for MEHKO-related complaint data; verified local code enforcement issues reported to EHD consisted of some quality‑of‑life concerns such as signage, parking congestion, and unpermitted remodeling, all of which were addressed locally through corrective action notices. Notably, six unpermitted food operations ultimately obtained permits after initially being the subject of complaints for unpermitted food sales, demonstrating that the MEHKO program successfully provides a pathway to transition informal food operators into regulated, compliant, and permitted businesses.
Program engagement metrics indicate significant demand. Staff completed 369 technical assistance consultations (142 in 2024 and 227 in 2025), representing approximately 60 percent year‑over‑year growth and serving 335 unique customers. Consultations were conducted via telephone (56.6%), virtual formats (26.6%), and in-person (16.8%). Workshops reached 374 participants, with approximately 63% attending remotely online, and were conducted in both English and Spanish at six locations throughout the County.
Statewide jurisdictional benchmarking reflects a total of 981 active MEHKOs across jurisdictions participating in the survey, with Contra Costa County’s activity level consistent with peer counties, including Los Angeles, Santa Clara, San Diego, Riverside, and Alameda Counties. The benefits of authorizing Microenterprise Home Kitchen Operations continue to include:
• Increases 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.
Based on the positive results of the MEHKO pilot program, Staff recommends that the Board of Supervisors adopt Ordinance 2026-10 repealing Section 413-3.2012 of the County Ordinance Code, thereby turning a two-year pilot program for permitting Microenterprise Home Kitchen Operations within Contra Costa County into a permanent regulatory program.
CONSEQUENCE OF NEGATIVE ACTION:
Microenterprise Home Kitchen Operations will not be authorized in Contra Costa County effective July 1, 2026 and will be prohibited within the county thereafter.