HomeMy WebLinkAboutAB 377 - Microenterprise Home Kitchen OperationsSTAFF REPORT
CITY OF PALM DESERT
CITY MANAGER'S OFFICE
MEETING DATE: July 11, 2019
PREPARED BY: Christopher Gerry, Management Analyst
REQUEST: Submission of a letter of support (if amended) for Assembly Bill 377
regarding microenterprise home kitchen operations.
Recommendation
By minute motion, approve the submission of a letter of support (if amended) to the appropriate
legislators for Assembly Bill 377 regarding microenterprise home kitchen operations.
Background Analvsis
On June 27, 2019, the City Council reviewed Assembly Bill (AB) 377 regarding microenterprise
home kitchen operations (MHKOs). The City Council approved the postponement of the agenda
item until the following meeting to allow staff time to conduct outreach to the legislative authors
and revise the previous position letter using a more cooperative and constructive approach. The
previous staff report can be found as Attachment A.
Existing Law (Assembly Bill 626)
Existing law in the Health and Safety Code, which was previously chaptered last legislative
session (formerly AB 626), allows residents to prepare, delivery, and/or serve up to 60 meals
per week with an annual sales cap of $50,000. However, the law has conflicting language
regarding which agencies — counties or cities — are responsible for having the ability to "opt in"
for allowing MHKOs within jurisdictional limits. Consequently, no agencies have allowed for
MHKOs due to the conflicting language, except the County of Riverside recently opted in
ordinance.
As displayed below, the two provisions in Section 114367 are unclear and conflicting regarding
which agencies are responsible for allowing MHKOs within jurisdictional limits.
(a) Except as provided in subdivision (b), the governing body of a city or county, or
city and county, shall have full discretion to authorize, by ordinance or resolution, the
permitting of microenterprise home kitchen operations in accordance with this chapter.
(b) A permit issued by a county that has authorized the permitting of microenterprise
home kitchen operations in accordance with this chapter shall be valid in any city
within the county regardless of whether the city has separately enacted an ordinance
or resolution to authorize or prohibit the permitting of microenterprise home kitchen
operations within that city.
July 11, 2019
Assembly Bill 377
Page 2of2
Assembly Bill 377
AB 377, which was introduced by the same author this legislative session, generally provides
cleanup language that are non -substantive revisions to the existing law. However, the bill
clarifies that counties — not cities — are the responsible agencies for opting in via resolution of
ordinance. To elaborate, the conflicting language in the Health and Safety Code (Section
114367) above is proposed to be deleted in AB 377. Instead, the section is replaced with the
following language:
The governing body of a city, county, or city and county that is designated as the
enforcement agency, as defined in Section 113773, may authorize, by ordinance or
resolution, within its jurisdiction the permitting of microenterprise home kitchen
operations in accordance with this chapter. If a governing body of a city, county, or city
and county authorizes the permitting of microenterprise home kitchen operations, the
authorization shall apply to all areas within its jurisdiction, including being applicable to
all cities within a county that authorizes microenterprise home kitchen operations,
regardless of whether each city located within the jurisdiction of the county separately
authorizes them.
According to the above referenced Health and Safety Code (Section 113773):
"Enforcement agency" means the department or the local health agency having
jurisdiction over the food facility.
Therefore, AB 377 clarifies that counties — not cities — are the responsible agency for allowing
MHKOs within jurisdictional limits. Furthermore, once a county elects to opt -in via resolution or
ordinance, all areas located within said county's jurisdiction — including cities — are subjected to
allowing MHKOs within their communities. Notwithstanding the MHKO legislation, it is the
opinion of the city attorney that cities still retain land use authority over those uses in residential
neighborhoods, and could prohibit them if they choose to. The proposed additions and deletions
to the law ("today's law as amended") can be found as Attachment B. In addition, the Health and
Safety Code (Section 113773) can be found as Attachment C.
A letter of support (if amended) for City Council consideration can be found as Attachment D. If
approved, the letter will be submitted to the appropriate legislators.
LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER
N/A WA (A�MM1a"+,LC
Robert W. Hargreaves Lauri Aylaian Je Lauri Aylaian
City Attorney City Manager Director of Finance City Manager
ATTACHMENTS:
A. Staff Report (June 27, 2019)
B. Proposed Health and Safety Code Revisions
C. Health and Safety Code (Section 113773)
D. Letter of Support (If Amended)
Attachment A
Staff Report (June 27, 2019)
-"C �l
STAFF REPORT
CITY OF PALM DESERT
CITY MANAGER'S OFFICE
MEETING DATE: June 27, 2019
PREPARED BY: Christopher Gerry, Management Analyst
REQUEST: Submission of a letter of opposition for Assembly Bill 377 regarding
microenterprise home kitchen operations.
Recommendation
By minute motion, approve the submission of a letter of opposition to the appropriate legislators
for Assembly Bill 377 regarding microenterprise home kitchen operations.
Background Analvsis
In the 2017-18 Regular Session, the California Legislature approved Assembly Bill 626 (Garcia),
which revised the Health and Safety Code to allow for microenterprise home kitchen operations
(MHKOs). Once enacted, the law allows for home -based restaurants by allowing residents to
prepare, delivery, and/or serve up to 60 meals per week with an annual sales cap of $50,000.
Notwithstanding, the law needed clarification regarding two subdivisions that allowed a
governing body to "opt -in" to having MHKOs (via ordinance or resolution). As displayed below, it
is unclear if cities or counties are responsible for opting in to having MHKOs. As a result, no
counties or cities have opted in to having MHKOs, until the County of Riverside opted in via
Ordinance 949 (Attachment A) effective June 5, 2019. Furthermore, an information sheet
outlining MHKOs from the County of Riverside, Department of Environmental Health, can be
found as Attachment B.
Health and Safetv Code (Section 114367)
(a) Except as provided in subdivision (b), the governing body of a city or county, or
city and county, shall have full discretion to authorize, by ordinance or resolution, the
permitting of microenterprise home kitchen operations in accordance with this chapter.
(b) A permit issued by a county that has authorized the permitting of microenterprise
home kitchen operations in accordance with this chapter shall be valid in any city
within the county regardless of whether the city has separately enacted an ordinance
or resolution to authorize or prohibit the permitting of microenterprise home kitchen
operations within that city.
In the 2019-20 Regular Session, the California Legislature is reviewing AB 377 (Garcia, Mayes).
This bill does provide health -related cleanup language relating to MHKOs, but also removes
local control by generally only allowing counties to opt -in to having MHKOs. Please note that
once a county opts in, MHKOs may operate according to the law within all cities under the
county limits. Maintaining some degree of local control of MHKOs is crucial since they impact
land use by converting homes into restaurants.
June 27, 2019
Assembly Bill 377
Page 2 of 2
As a result, the Legislative Review Committee recently reviewed and subsequently
recommended opposing AB 377. A letter of opposition for Council consideration can be found
as Attachment D. If approved, the attached letter will be submitted to the appropriate legislators
contingent upon the status of the bill.
LEGAL REVIEW
WA
Robert W. Hargreaves
City Attorney
ATTACHMENTS:
DEPT. REVIEW
N/A
Lauri Aylaian
City Manager
FINANCIAL REVIEW
2Zt
t Moore
Director of Finance
A. County of Riverside — Ordinance 949
B. County of Riverside — MHKO Information Sheet
C. Assembly Bill 377
D. Letter of Opposition
CITY MANAGER
Lauri Aylaian
City Manager
Attachment B
Proposed Health and Safety Code Revisions
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lift' I.n'ISLATIVF. INFORMATION
Home gill Information California Law Publications Other Resources My Subscriptions My Favorites
AB-377 Microenterprise home kitchen operations. (2019-2020)
SECTION 1. Section 114367 of the Health and Safety Code is repealed.
144367.-(_) trAcp1 ac pa:"o1ac' ne caidiv��isR L�), !kc Joverm:rl Yic'y of ■ 4ky or iwm',/, or Wy z.ill aishall
have full \-- a,�Aka,,za, li;j ✓.'iff\a7,J► a, Ica✓�.�ivn, 1a1c permitt'Ag 9fmicrvcnccr�i,
04 Jrr3pW(.
Ft) A l► i
aeebrdvncc ni' Bait 6c valid i 3arilamz :f \'ih3l.K✓ !I'r• city has
separately en _Nw-j 3r arAinanee or raaal',6CCA tc ar pw,6i1, U, per ittingef rr.:arrc\Vr raa Hie
k:�Mar. 3"i ■iluci . yh:r. that 3;:y:
SEC. 2. Section 114367 is added to the Health and Safety Code, to read:
114367. The governing body of a city, county, or city and county that is designated as the enforcement agency, as
defined in Section 113773, may authorize, by ordinance or resolution, within its jurisdiction the permitting of
mrcroenterprse home kitchen operations in accordance with this chapter. If a governing body of a city, county, or
city and county authorizes the permitting of microenterprise home kitchen operations, the authorization shall
apply to all areas within its jurisdiction, including being applicable to all cities within a county that authorizes
microenterprise home kitchen operations, regardless of whether each city located within the jurisdiction of the
county separately authorizes them.
SEC. 3. Section 114367.1 of the Health and Safety Code is amended to read:
114367.1. (a) A microenterprise horne kitchen operation, as defined in Section 113825, shall be considered a
restricted food service facility for purposes of, and subject to all applicable requirements of, Chapter 1
(commencing with Section 113700) to Chapter 9 (commencing with Section 114265), inclusive, CltapXr 42.S
(aaAa�rar.ciw� rvith Se en "^"", and Chapter 13 (commencing with Section 114380), except as otherwise
provided in this chapter.
(b) A microenterprise home kitchen operation shall be exempt from all of the following provisions:
(1) Handwashing facilities requirements, as required in Section 113953, provided that a handwashing sink is
supplied with warm water and located in the toilet room and supplied, as specified in Section 113953.2.
(2) Any provision in this part relating to sinks, warewashing machines, and manual or machine sanitation,
rHElUdiR9 including, but not limited to, Sections 114099, 114099.2, 114099.4, 114099.6, 114099.7, 114101.1,
114101.2, 114103, 114107, 114123, 114125, 114163, and 114279, provided that the /.::r, a rr,;a"a�,teFPF se
1\3-,r.,. hid\✓, has 1-zJ,aigd ee+d;c full; all of the following conditions are met:
(A) Utensils and equipment are able to be properly cleaned and sanitized.
(B) The sink in a microenterprise home kitchen operation has hot and cold water and is fully operable.
(C) If a dishwasher is used, it shall be operated in accordance with the manufacturer's specifications
(3) Prohibition on the presence of persons unnecessary to the food facility operation in the food preparation, food
storage, or warewashing areas, as specified in Section 113945.1- 113945.1, provided that the permitholder takes
steps to avoid any potential contamination to food, clean equipment, utensils, and unwrapped single -service and
single -use articles and prevents a person suffering from symptoms associated with acute gastrointestinal illness
or person known to be infected with a communicable disease that is transmissible through food to enter the food
preparation area while food is being prepared as part of a microenterprise home kitchen operation.
(4) No smoking sign posting requirements, as specified in Section 113978.
(5) Limitations on employee consumption of food, drink, or tobacco outside of designated areas, as specified in
Sections 113977 and 114256- 114256, provided that the permitholder takes steps to avoid any potential
contamination to food, clean equipment, utensils, and unwrapped single -service and single -use articles and
prevents a person suffering from symptoms associated with acute gastrointestinal illness or person known to be
infected with a communicable disease that is transmissible through food to enter the food preparation area while
food is being prepared as part of a microenterprise home kitchen operation.
(6) Limitations on consumer access to the food facility through food preparation areas, as specified in Section
113984.1. 113984.1, provided that the permitholder takes steps to avoid any potential contamination to food,
clean equipment, utensils, and unwrapped single -service and single -use articles and prevents a person suffering
from symptoms associated with acute gastrointestinal illness or person known to be infected with a communicable
disease that is transmissible through food to enter the food preparation area while food is being prepared as part
of a microenterprise home kitchen operation.
(7) Display guard, cover, and container requirements, as specified in Section 114060, provided that any food on
display that is not protected from the direct line of a consumer's mouth by an effective means is not served or
sold to any subsequent consumer.
c, as aj�at;` .
(9) (8) Requirements to provide clean drinking cups and tableware for second portions and beverage refills, as
specified in Section 114075.
(10) (9) Requirements pertaining to the characteristics and certification of utensils and equipment, as specified in
Sections 114130 114130-4- 114130 and 114139, provided that utensils and equipment are designed to retain
their characteristic qualities under normal use conditions.
f4-I-) (10) Requirements pertaining to the characteristics, construction, and multiuse of food -contact and
nonfood -contact surfaces, as specified in Sections 11413C.1, 114130.3 and 114130.4, provided that
food contact surfaces are smooth, easily cleanable, and in good repair.
(4-2-) (11) Requirements pertaining to the characteristics, construction, and disassembly of clean in place (CIP)
equipment, as specified in Section 114130.5.
(+-3-) (12) Limitations on the use of wood as a food contact surface and in connection with other equipment, as
specified in Section 11^1Z4132. 114132, provided that hard maple or equivalent wood is approved for use in direct
contact with food during preparation.
(+4-) (13) Any provision in this part relating to ventilation, including, but not limited to, Article 2 (commencing
with Section 114149) of Chapter 6, provided that gases, odors, steam, heat, grease, vapors, and smoke are able
to escape from the kitchen.
14 Requirements that cold or hot holding equipment used for potentially hazardous food beequipped with
f�( ) q 9P Y
integral or permanently affixed temperature measuring device or product mimicking sensors, as specified in
subdivision (c) of Section 114157.
(+&) (15) Requirements pertaining to the installation of fixed, floor -mounted, and table -mounted equipment, as
specified in Section 114169.
(4 ) (16) Dedicated laundry facility requirements, as specified in Section 114185.5, provided that linens used in
connection with the microenterprise home kitchen operation shall be laundered separately from the household
and other laundry.
(4&) (17) Requirements pertaining to water, plumbing, drainage, and waste, as specified in Sections 114193,
114193.1, and 114245.7.
(3-9,3 (18) Any requirement that a microenterprise home kitchen operation have more than one toilet facility or
that access to the toilet facility not require passage through the food preparation, food storage, or utensil washing
areas, including, but not limited to, the requirements specified in Sections 114250 and 114276.
(20-) (19) Light intensity, light source, and lightbulb requirements, as specified in Sections 114252 and 114252.1,
provided that food preparation areas are well lighted by natural or artificial light whenever food is being prepared.
(21j (20) Requirements to provide and use lockers, storage facilities, and designated dressing areas, and that
food facility premises be free of litter and items that are unnecessary to the operation, as specified in Sections
! 114256.1 and 114257.1, provided that personal effects and clothing not ordinarily found in a home kitchen are
placed or stored away from food preparation areas and dressing takes place outside of the kitchen.
(2-2-) (21) Limitations on the presence and handling of animals, such as domestic, service, or patrol animals, as
specified in Sections 114259.4 and 114259.5, provided that all en;ri.aly, :Xhc- :har. vyr::u ■r.:rmic, animals are
jkept outside of the kitchen and iri.r.q orcci during food service and preparation.
Ei3-i (22) Requirements pertaining to floor, wall, and ceiling surfaces, as specified in Sections 114268, 114269,
and 114271, provided that the floor, wall, and ceiling surfaces of the kitchen, storage, and toilet areas are
smooth, of durable construction, and easily cleanable with no limitations on the use of wood, tile, and other
nonfiber floor surfaces ordinarily used in residential settings.
(24j (23) Any local evaluation or grading system for food facilities, as authorized by Section 113709.
(251 (24) All prohibitions and limitations on the use of a kitchen in a private home as a food facility, including,
but not limited to, prohibitions and limitations specified in Section 114285, provided that food is not prepared in
designated sleeping quarters. Open kitchens adjacent to living and sleeping areas, kitchens in efficiency, studio,
and loft -style residences, and kitchens without doors at all points of ingress and egress may be used in
microenterprise home kitchen operations.
(26) (25) Planning and permitting provisions of Sections 4-43 i 111221, 114380 and 114381.2.
(c) A microenterprise home kitchen operation may operate an open-air barbecue or outdoor wood -burning oven,
pursuant to the requirements of Section 114143.
(d) The operator of a microenterprise home kitchen operation shall successfully pass an approved and accredited
food safety certification examination, as specified in Section 113947.1.
(e) Any individual, other than the operator, who is involved in the preparation, storage, or service of food in a
microenterprise home kitchen operation shall be subject to the food handler card requirements specified in
Section 113948.
(f) A microenterprise home kitchen operation shall only offer for sale or sell food that was prepared during a food
demonstration or preparation event to a consumer who was present at that food demonstration or preparation
event.
SEC. 4. Section 114367.2 of the Health and Safety Code is amended to read:
114367.2. (a) A microenterprise home kitchen operation shall not be open for business unless it has obtained a
permit issued from the 1eeal enforcement agency.
(b) The department shall post on its internet Web s internet website the requirements for the permitting of a
microenterprise home kitchen operation, pursuant to this chapter and any ordinance, resolution, or rules adopted
by any ety eF city, county, or city and county, that has authorized the permitting of microenterprise home
kitchen operations, which shall be written at a high school level.
(c) The applicant shall submit to the local enforcement agency written standard operating procedures that
include all of the following information:
(1) All food types or products that will be handled.
(2) The proposed procedures and methods of food preparation and handling.
(3) Procedures, methods, and schedules for cleaning utensils, equipment, and for the disposal of refuse.
(4) How food will be maintained at the required holding temperatures, as specified in Section 113996, pending
pickup by consumer or during delivery.
(5) Days and times that the home kitchen wlll may potentially be utilized as a microenterprise home kitchen
operation. The stated days and times are not binding on the permitholder and shall be used for information
purposes only.
(d) (1) The leeal enforcement agency shall issue a permit after an initial inspection has determined that the
proposed microenterprise home kitchen operation and its rnethod of operation comply with the requirements of
this chapter.
(2) A +eeal An enforcement agency shall not require a microenterprise home kitchen operation to comply with
food safety requirements that are different from, or In addition to, the requirements of this chapter.
(e) For purposes of permitting, the permitted area includes the home kitchen, onsite consumer eating area, food
storage, utensils and equipment, toilet room, janitorial or cleaning facilities, and refuse storage area. Food
operations shall not be conducted outside of the permitted areas.
(f) A +eeal An enforcement agency may require a microenterprise home kitchen operation to renew Its permit
annually.
(g) A permit, once Issued, Is nontransferable. A permit shall be valid only for the person and location specified by
that permit, and, unless suspended or revoked for cause, for the time period Indicated.
(h) The permit, or an accurate copy thereof, shall be retained by the operator onsite and displayed at all times
the microenterprise home kitchen operation Is in operation.
(i) A leeal An enforcement agency may collect a fee for the issuance of a permit pursuant to this chapter in an
amount that does not exceed the reasonable administrative costs by the leeal enforcement agency In Issuing the
permit.
(}) PleEw+Y aYar :nrj anal•-eMkcr la/n, if theFe a/c r\au7ii'la Hai ager.siu of or// tp'3 of
ps-wr/A, 1�3_-nse, er-afh.cr tc c ram. Prue har,x h;tarua o>3rr.!=Y -, r,` 3 ltedy af the
e4y-11r or Z;Al- c/l-' avrrGy, mill daa yri'i ane lead leeal ageREY that shall f; :cSted with the 5
aetherity Yc aallasY all foss fl" ark 1s is&'Osv sly p rAr� ar.��, Cr Ither
a�ithiriz_t\r.-WAir4t fE)Fa reieraar.Yai70riac k_--Irvc la"24w. a'aArAiz�.. tic apt. a�c iR Yha ai11 IF avCrMty, or sit ar'e
eevnty- 1k laul aye/.cl' a*cr ther 0..6 local lime!agene , altall rat accept .vy a'pliutv.i fv, x11-=`_ any fees `eF,
nar;oo ' anT pern,in V tic %,Prr- P.,011paaa.
SEC. 5. Section 114367.3 of the Health and Safety Code is repealed.
4343674.-{�w,thsta»dingany otheF law, after the -initial inspectien for erposes�� of determining EerripHance
with- -this chapteFa-reicroenteFpF,se-home-k+tehen operatic/, hail mat be subjeet-to ro,:N+nc :r3A«tions, exEept
that -a representat:Ye-,eif a localen€eFcement-egeney-may aceess, fer+nspeet,en pu poses;-th�ted area eta
mi,3 a:r',�«pr,se home kitchen operation after the-ocEaFFenee of either of the following
(1) Tha raj /wa Fe<4611 h,: ta1:UVLrAn1pri1_ h i\,. I,:Yak.ar. �0'anatien wiYk aaiiris.kla r4-l:ac.
(a) Th.' —prcxnfative ham a ': I% X%J/,, cl, a� a cvnoumcr a •1� tJ •tea//✓ 1i S'adtilteFated eF
i.\ha,'Z:A' •rrvaafc feed }\N `ocr. pro ML;zod al'-seFYed-by' thJ n,�crocn�c rpr,�c I,om �iElta\✓: ✓,Y�a�1/•, ✓'-that the
rnreFeentar/prits k�,r/c I,/a'►har. apano►icn hu 40crvii1c tsar. v. sf Mk.s part.
(b) NetvwtGirl., eitheF law, a miereentesprioz �vrr.a I,i1iWv. optrYi3r. ttal: rich i a,Aloixa Yc rim 1~a�
ere Yy Wo Iszrl ai/srcc//.zn' agars;, c::aw'1:n eases in whi Yka Icmel 2041-mew.sr.Y 03cra;
r-Ask.. n Y:. Z>'A'J _Y3'Kat aieltcl+ate Cr z1haroin 'J'eoafc fcal kiss Yasr
pra�'i1a'a Cr cart3d tiI/ itSlJor-%'c'3@rta-prise'-heme-I(itcI,cn Jr tl,ai- k. h3m.3 Il>KIVa/r
epeFal, o hike _0n-: 2a s tic a r i r. \ ✓ r< h+s pa+
;a) Tk,c la✓I .9—y a1,c61 Iroa,xxn far WA :ropoc:ur, liacp en -file
w4h :hc rr.:srair.teFff'se hell;a I::a�hc/• aj�.a�a/.'c p�nr/,:, 811- kVaV/_c hK. isacar::r.:::-*
FAIE arntcrrriX !�cfcl IuY--Sa^ ri/_rN:sr.
/pri-Ade4 ;;rya/ th;c e I;'%a,cd 1a V pc,f(,Eted aFea of l6. Iut&_-n
al:cratar, Mfrs.@ Yka pssY ei cpJ.-aw.>I haurs-cf 1ha I-.,_ I,,1aka. ✓cr/cv, arm sc).c:y `eF the
purpwc of �n:erEir�g-eF-adr/,s.��a/iry Yh;a flit.
(e) A IOEalenter;:<ir/krI #Fe I:'khan\ I/pAIV-cr cf &A ■raver,
tk,at dace nct c--�Ioce' Vic c?,Lcay3 real J_` oa Yc e` FuaaUn� Yip rricl avAanprac knr.�
uVhc/. feF Earr,'!ir•a ::hh chis paFt if VNc ( ..... a Niz hilakar. spcv Yar. is 2a i ar.
Y,elatienef 1 ,,s poi.
SEC. 6. Section 114367.3 is added to the Health and Safety Code, to read:
114367.3. (a) Notwithstanding any other law, a microenterprise home kitchen operation shall only be subject to
the three following types of inspections by the enforcement agency:
(1) A routine inspection for the purpose of allowing the enforcement agency to observe the permitholder engage
in the usual activities of a microenterprise home kitchen operation, including, but not limited to, active food
preparation. The enforcement agency shall provide notice to a permitholder before a routine inspection and shall
conduct the routine inspection at a mutually agreeable date and time. A microenterprise home kitchen operation
shall not be subject to more than one routine inspection within 12 months. This paragraph shall not be deemed to
require the enforcement agency to conduct a routine inspection.
(2) An investigation inspection for the purpose of allowing the enforcement agency to perform an inspection when
the enforcement agency has just cause that adulterated or otherwise unsafe food has been produced or served by
the microenterprise home kitchen operation or that the permitholder has otherwise violated this part. One or
more consumer complaints may constitute just cause for an investigation inspection. The enforcement agency
shall provide notice to a permitholder before an investigation inspection and shall conduct the investigation
inspection at a mutually agreeable date and time.
(3) An emergency inspection for the purpose of allowing the enforcement agency to perform a limited inspection
when the enforcement agency has just cause that the microenterprise home kitchen operation poses a serious
hazard or immediate threat to public health. To the extent that notice of an emergency inspection is reasonable
under the circumstances, the enforcement agency shall provide notice to a permitholder before an emergency
inspection. The scope of emergency inspection shall be limited in duration and scope to address the facts giving
just cause that the microenterprise home kitchen operation poses a serious hazard or immediate threat to public
health.
(b) The enforcement agency shall only inspect the permitted area of the microenterprise home kitchen operation
for the purpose of enforcing or administering this part.
(c) The enforcement agency may seek recovery from a microenterprise home kitchen operation of an amount that
does not exceed the enforcement agency's reasonable costs of inspecting the microenterprise home kitchen
operation for compliance with this part if the microenterprise home kitchen operation is found to be in violation of
this part.
SEC. 7. Section 114367.5 of the Health and Safety Code is amended to read
114367.5. (a) A person delivering food on behalf of a microenterprise home kitchen operation with a permit issued
pursuant to Section 114367.2 shall be an employee of the microenterprise home kitchen operation or a family
member or household member of the #Amer. t v,&tcr :ch;dc 'r. tlaa dcLvcr; of the
fx4, *.A/pArser.. zKal:-4as•iiii a �aliz' driveF'S 1 eense. permitholder.
(b) T-1,ie- Food produced in a microenterprise home kitchen operation shall f tht :alr dr;:ef 5
Heense of a person dcl;:ar;n, fxd cr bakslf of the epeFat en. not be delivered by a third -party delivery service.
SEC. 8. Section 114367.6 of the Health and Safety Code is amended to read
114367.6. (a) An met internet food service intermediary that lists or promotes a microenterprise home
kitchen operation on its `nteFnet Web site internet website or mobile application shall meet all of the following
requirements:
(1) Be registered with the department. A registration, once issued, is nontransferable. A registration shall be valid
only for the person and type of business specified by that registration, and unless suspended or revoked for cause
by the department.
(2) Prior to the listing or publication of a microenterprise home kitchen operation's offer of food for sale, clearly
and conspicuously post on its internet website or mobile application the requirements for the
permitting of a microenterprise home kitchen specified in this chapter, which shall be written at the high school
level and be provided by the department.
(3) Clearly and conspicuously post on its internet `"'e` internet website or mobile application the fees
associated with using its platform in a manner that allows both the consumer and the microenterprise home
kitchen operation to see and understand the amount being charged for the services provided by the
inteFne internet food service intermediary. The i teFRet internet food service intermediary shall notify the
microenterprise home kitchen c,,x—maliere operation of any changes to these fees exceeding a 2-percent increase
in writing and no later than one month before the changes take effect.
(4) Clearly and conspicuously post on its internet Web internet website or mobile application whether or not
it has liability insurance that would cover any incidence arising from the sale or consumption of food listed or
promoted on its lfl+effiet Web 5ite internet website or mobile application.
i(5) Provide a dedicated field on its platform for a microenterprise home kitchen operation to post the permit
f+wi'i1a,, ark d,cll rra:�_'a r.aN:r 1111 IkI fr.:cruml4n'ri3Q f,efnekitet— p.,.con of tha :aq ;iarr,ilnf that the
peFffilt RUFR6*1- Ya :,rruaVr numberand the name of the enforcement agency that issued the permit.
(6) Clearly and conspicuously post on its irateinteffiet Web internet website or mobile application how a
i consumer can contact the IftteFnet internet food service intermediary through its :rkafr-S., Y:2o-4te- internet
website or mobile application if the consumer has a food safety or hygiene complaint and a link to the
department's 'R`e-ne` We` s internet website that contains information for how to file a complaint with the
leea' enforcement agency.
i
i (7) Submit the name and permit number of a microenterprise home kitchen operation to the
■lay if r1 enforcement agency that issued the permit to the microenterprise home kitchen operation if the
internet food service intermediary receives, through its intentet Web internet website or mobile application,
three or more unrelated individual food safety or hygiene complaints in a calendar year from consumers that have
made a purchase through its lmteFnet `"'e` internet website or mobile application. The inteFiniet internet
food service intermediary shall submit this information to the ieEal enforcement agency within two weeks of the
third complaint received.
I
(8) If it is notified by the +eeal- enforcement agency of significant food safety related complaints from a verified
consumer that has made a purchase through its into et Wei)site-internet website or mobile application, submit
to the 4eeal enforcement agency the name and permit number of microenterprise home kitchen operation where
the food was purchased, and a list of consumers who purchased food on the same day from that microenterprise
home kitchen operation through its I"`effiet Web s internet website or mobile application.
(9) Prior to the listing or publication of a microenterprise home kitchen operation's offer of food for sale, obtain
consent from the microenterprise home kitchen operation to make the disclosures to government entities required
pursuant to this section.
(10) Shall not permit the use of the word "catering" or any variation of that word in a listing or publication of a
microenterprise home kitchen operation's offer of food for sale.
(11) Shall not use, or knowingly facilitate the use of, a third -party delivery service for food produced by the
microenterprise home kitchen operation.
(b) For purposes of this chapter, an Inteffie "internet food service intermediary" means an entity that provides
a platform on its 'n`e-ce` Web internet website or mobile application through which a microenterprise home
kitchen operation may choose to offer food for sale and from which the internet internet food service
intermediary derives revenues, including, but not limited to, revenues from advertising and fees for services
offered to a microenterprise home kitchen operation. Services offered by an interne i internet food service
intermediary to a microenterprise home kitchen operation may include, but are not limited to, allowing a
microenterprise horse kitchen operation to advertise its food for sale and providing a means for potential
consumers to arrange payment for the food, whether the consumer pays directly to the microenterprise home
kitchen operation or to the internet internet food service intermediary. Merely publishing an advertisement for
the microenterprise home kitchen operation or food cooked therein does not make the publisher an
Intef" internet food service intermediary.
(c) (1) A microenterprise home kitchen operation that advertises to the public, including, but not limited to,
advertising by website, internet, social media platform, newspaper, newsletter, or other public announcement,
shall include all of the following within the advertisement:
(A) Name of the enforcement agency that issued the permit.
(8) Permit number.
(C) Statement that the food prepared is "Made in a Home Kitchen" in a clear and conspicuous font and location
within a written advertisement and an audible and comprehensible manner in a verbal advertisement.
(2) A microenterprise home kitchen operation shall not use the word "catering" or any variation of that word in an
advertisement relating to the microenterprise home kitchen operation's offer of food for sale.
SEC. 9. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a
crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII6 of the California Constitution.
SEC. 10. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or
safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts
constituting the necessity are:
To ensure a uniform implementation of the health and food safety responsibilities of microenterprise home
I
kitchen operations throughout the state, it is necessary that this act take effect immediately.
- -- - - - - - ---- - - -- -- - - - - ---
Attachment C
Health and Safety Code (Section 113773)
AUTHENTICATED
ouusn
L'RtwU ElECi0.0NIC LEGAL MATERIAL
State of California
HEALTH AND SAFETY CODE
Section 113773
113773. "Enforcement agency" means the department or the local health agency
having jurisdiction over the food facility.
(Repealed and added by Stats. 2006. Ch. 23, Sec. 2. Effective January 1, 2007. Operative July 1, 2007,
by Sec. 3 ofCh. 23.)
Attachment D
Letter of Support (If Amended)
Sample
July 11, 2019
Name
Address
Location
Re: Assembly Bill 377 (Garcia, Mayes): Microenterprise Home Kitchen Operations
Support If Amended
The Honorable (Name):
The City of Palm Desert recognizes and supports the value of small local businesses; however, we
ask your consideration in amending Assembly Bill 377 (Garcia, Mayes), which essentially authorizes
only counties to permit microenterprise home kitchen operations (MHKOs) throughout local
jurisdictions.
In the 2017-18 Regular Session, the State Legislature approved Assembly Bill 626 (Garcia), which
revised the Health and Safety Code to allow for MHKOs. The law permits home -based restaurants
by allowing residents to prepare, deliver, and/or serve up to 60 meals per week with an annual sales
cap of $50,000. However, the law is unclear regarding which governing bodies — counties or cities —
is responsible to "opt -in" for allowing MHKOs within a community.
While AB 377 does provide necessary health -related cleanup language, it also removes local control
from cities by only allowing counties to opt -in to having MHKOs. Please note that once a county opts
in, MHKOs may operate according to the law within all cities under county limits.
Notwithstanding, MHKOs may create valuable small business opportunities in our community;
however, we believe it should be a local decision of counties and cities based upon further review
and discussion. Please feel free to contact me if you would like to have further discussions regarding
our legislative position. Thank you.
Regards,
Susan Marie Weber
Mayor