Economic Development Subcommittee
Meeting Date:
To:
From:
Item #2:
Recommendation :
May 9, 2022
City Council Economic Development Subcommittee
David Graham, Chief Innovation Officer
Micro Enterprise Home Kitchen Operations Update
{cityof
Carlsbad
Receive an informational report regarding MEHKOs from San Diego County staff, discuss and provide recomme ndation s.
Discussion:
Prior to 2012, California required food sold to consumers be made at inspected commercial kitchens. In 2013, the California Homemade Food Act allowed certain low-risk food products not requiring refrigeration , such as bread, pie, fruit jam, and dried food, to be made in private home kitche ns and sold as a fully packaged and labeled product to consumers. These operations, commonly known as cottage food operations, provide an opportunity for home cooks to start a small business.
In 2019, the enactment of Assembly Bill (AB) 626, California Retail Food Code: Microenterprise Home Kitchen Operations expanded the opportunity for home cooks to operate a small business. This law established a microenterprise home kitchen operation (MEHKO) as a new type of restricted food service facility in the California Retail Food Code (CRFC). Once authorized, MEHKOs home cooks can prepare and sell a wide range of foods in a home kitchen (like a mini restaurant) , including foods that require time and temper atu re control in order to prevent bacteria growth , such as meat, fish, poultry, and dairy products. Prior to operating, each MEHKO would be required to submit a Standard Operating Procedure (SOP), receive an initial inspection by San Diego County Department of Environmental Health and Quality (DEHQ), pay the permit fee, and obtain a health permit . DEHQ staff reviews the SOP, which includ es reviewin g the menu, food preparation methods, and how dishes and utensils will be washed and sanitized in the home, and conducts the initial inspection , prior to issuing the initial permit . In subsequent years, the MEHKO operator would pay a renewal permit fee, receive an annual inspection, and only needs to submit the SOP for review if there is a significant change in operation or menu.
On Jan. 26, 2022, the Board of Supervisors voted to adopt a temporary two -year MEHKO program throughout San Diego County. This temporary program went into effect on Feb. 25, 2022. As part of the temporary program , specific ordinance language was also created to include additional requirements in the following food safety component categories:
• Food Safety Certificate
• Allowable Food Storage Areas
• Number of MEHKOs per Residence
• Potable Water for Private Wells - Initial Testing
• Potable Water for Private Wells - Ongoing Testing
May 9, 2022 Item #2 Page 1 of 2
The CRFC prohibits jurisdictions from imposing restrictions on MEHKO for zoning purposes, or requiring additional permits to operate, other than a health permit. Local jurisdictions can, however, investigate and enforce their regulations. Each jurisdiction is responsible for enforcing its own related regulation s, including but not limited to code compliance. Whi le DEHQ is the local enforcement agency responsible for food safety, other complaints or issues related to community impacts, including noise and parking, would be the responsibility of the individual incorporated city's code enforcement or corresponding compliance department .
DEHQ is currently working closely with each juri sdiction to capture data on any complaints received that are directly related to the operation of a MEHKO within each jurisdiction. This data will be compiled at the end of the two-year temporary program and provided to the Board of Supervisors for their consideration when they determine to either enact a permanent program countywide , or not move forward with enacting a program.
Next Steps:
Staff wil l continue to communicate with the County and DEHQ staff on the MEHKO program and any issues that arise.
May 9, 2022 Item #2 Page 2 of 2
MICRO ENTERPRISE HOME KITCHEN OPERATIONS
UPDATE
• Recommendation:Receive an informational report regarding MEHKOs from San Diego County staff, discuss and provide recommendations.
Item 2
{city of
Carlsbad
County of San Diego
County of San Diego
1 Department of Environmental Health and Quality (DEHQ) Food and Housing Division
March 2022
MICROENTERPRISE HOME
KITCHEN OPERATIONS
(MEHKOs)
County of an D ego
Background
2 Pre 2013
No home-
based food
businesses
allowed
1/1/2013
CFO law
goes into
effect
1/1/2019
MEHKO law
goes into
effect
(AB 626)
10/7/2019
MEHKO
cleanup law
goes into
effect
(AB 377)
9/15/2021
BOS directs
DEHQ to
return in
120 days
with
proposed
MEHKO
ordinance
1/26/2022
BOS
temporarily
authorizes
MEHKOs as
a 2-year pilot
2/25/2022
DEHQ
begins
accepting
MEHKO
applications
• • • • • • •
What is a MEHKO?
3 • A home-based mini-restaurant
• Operated by a resident of a private home or
apartment
• Food must be prepared and served on the same
day
• Must sell directly to consumers for onsite dining,
delivery, or take-out
• Health permit is required prior to operating
• One annual routine health inspection
MEHKO Restrictions
4 • One per residence (additional if an
ADU is present)
• Maximum of 30 meals/per day and 60
meals per/week
• Limited to one full-time equivalent
employee, not including a family or
household member
• Limited to a maximum of $50,000
gross annual sales, adjusted for
inflation
Menu Restrictions
Prohibited food items
• Raw oysters
• Raw milk
• Production of milk and milk products
• Specialized pr ocesses
MEHKO Limitations
6 MEHKOs cannot also operate as a:
• Cottage Food Operator
• Caterer
• Temporary Event Vendor
• Mobile Food Vendor
MEHKOs cannot:
• Sell to other food facilities
• Use home kitchen as a commissary.
MEHKOs vs. Cottage Food Operations
MEHKO
• Food facility operated by
re
sident in a private home
• Serve potentially
haz
ardous foods
• Sold directly via onsite
dinin
g, pick-up, or delivery
• Cannot sell to other food
fac
ilities
• Onsite food consumption
• Meal
7 Cottage Food Operation
• An individual operating in
private home
• Sell pre-packaged, properly
labeled, non-potentially
hazardous foods
• Sold directly or indirectly to the
consumer
• No on-site food consumption
• Single food/beverage item
Regulatory Oversight
DEHQ
• CRFC Enforcement
• Food Safety
• Vermin (inside facility)
• Food debris/refuse build
up
• D
aily/weekly sales
• Gross income verification
8 Individual Municipality
• Local ordinance enforcement
• Signage
• Noise
• Nuisances
• Traffic/Parking
• Non-Food debris/refuse build
up
• Construction/remodeling
Ordinance Components
• Food Safety Certificate
• Allowable Food Storage Areas
• Potable Water for Wells and Private Water Systems - Ini tial Testing • Potable Water for Wells and Private Water Systems - Ongo ing Testing 9 fOODSlffTY
Good Neighbor Practices
Traffic and
Parking
Odor/Smoke
Fats, oils,
grease disposalNoise
Fire Safety
10 ~ c:ommunity
~
,Concerns
Data Tracking Project
• Two-year Temporary Program
• D
ata Collection Form
• Local Municipalities – Complaints regarding community impacts
• DEHQ – Complaints regarding operational food safety
issues or food borne illness complaints
• Return to the BOS early 2024 to present data