(a) Definitions. For purposes of this Section:
(1) "Cottage food operation" means:
(A) an enterprise in a private home that has not more in gross annual sales as follows:
for 2013 - $35,000 or less;
for 2014 - $45,000 or less;
for 2015 - $50,000 or less.
Commencing in 2015, and each subsequent year thereafter, the enterprise shall not have more than fifty thousand dollars ($50,000) in gross annual sales in the calendar year; and
(B) is operated by a cottage food operator, and has not more than one full-time equivalent employee, not including the cottage food operator and immediate family or household members of the cottage food operator; and
(C) where food products are prepared or packaged for direct and/or indirect sale to the public.
(2) "Cottage food operator" means a person who maintains a cottage food operation in his or her private home. Cottage food operators are categorized as follows:
(A) Class A cottage food operators may engage only in direct sales of cottage food products to the consumer. A cottage food operation maintained by this category of cottage food operator is known as a Class A cottage food operation.
(B) Class B cottage food operators may engage in direct sales and indirect sales of cottage food products. A cottage food operation maintained by this category of cottage food operator is known as a Class B cottage food operation.
(3) "Cottage food product" means foods that are not potentially hazardous as determined by the California Department of Public Health ("CDPH"), as set forth in California Health & Safety Code Section 114365.5.
(4) "Direct sale" means a transaction between a cottage food operator and a consumer, where the consumer purchases the cottage food product directly from the cottage food operation. Direct sales include, but are not limited to, transactions at holiday bazaars or other temporary events, such as bake sales or food swaps, transactions at farm stands, certified farmers' markets, or through community-supported agriculture subscriptions, and transactions occurring in person in the cottage food operation.
(5) "Indirect sale" means an interaction between a cottage food operation, a third-party retailer, and a consumer, where the consumer purchases cottage food products made by the cottage food operation from a third-party retailer that holds a valid permit issued pursuant to California Health & Safety Code Section 114381. Indirect sales include, but are not limited to, sales made to retail shops or to retail food facilities where food may be immediately consumed on the premises.
(6) "Registered or permitted area" means that portion of a private home that contains the private home's kitchen used for the preparation, packaging, storage, or handling of cottage food products and related ingredients or equipment or both, and the attached rooms within the home that are used exclusively for storage of said products, ingredients, and/or equipment.
(b) Both Class A and Class B cottage food operators must:
(1) Complete a food handling/ processing course; and
(2) Prepare only foods approved by the CDPH; and
(3) Label cottage food products in accordance with state and federal regulations; and
(4) Meet the food preparation and sanitation requirements set forth in California Health & Safety Code Section 114365, et seq., or any successor provisions; and
(5) Comply with all applicable zoning requirements; and
(6) Obtain all necessary business licenses and permits.
(c) A Class A cottage food operation shall register annually with the San Francisco Department of Public Health ("Department"), pay the annual registration fee, and certify, under penalty of perjury, that it complies with state law requirements for the operation of such businesses as set forth in the California Retail Food Code, Health & Safety Code Sections 114365, et seq., or any successor provisions, and regulations promulgated by the CDPH.
(d) A Class B cottage food operation shall obtain a permit from the Department, which must be renewed annually, and pay the initial application fee and annual permit fees. For the permit to be issued, the Class B cottage food operator shall certify, under penalty of perjury, that it complies with state law requirements for the operation of such businesses as set forth in the California Retail Food Code, Health & Safety Code Sections 114365, et seq., and regulations promulgated by the CDPH. As a condition of the permit being renewed annually, the Class B cottage food operator shall annually make the same certification, under penalty of perjury.
(e) The Department may inspect the registered area of a Class A cottage food operation or the permitted area of a Class B food operation only in response to a consumer complaint, or if the Department reasonably suspects that adulterated or unsafe food has been produced, or reasonably suspects that the cottage food operation has violated California food safety laws.
(f) Registration as a Class A cottage food operation, or a permit for operation of a Class B cottage food operation, is valid only for the person, location, type of food sales, and distribution activity specified on the registration or permit for the time period specified, and is not transferable.
(g) Registration as a Class A cottage food operation, or a permit for a Class B cottage food operation, may be suspended or revoked for violation of state law. For a prospective suspension or revocation, the Director of the San Francisco Department of Public Health ("Director") shall issue a written notice to the cottage food operator specifying the alleged violation(s) and advising the cottage food operator of a right to a hearing. The cottage food operator shall request a hearing, in writing, within 15 calendar days after receipt of the notice. Failure to request a hearing within 15 calendar days, shall be deemed a waiver of the right to a hearing. The hearing shall be held within 15 calendar days of the request for the hearing.
(h) If the Director finds an imminent health hazard, unless the hazard is immediately corrected, the Director may temporarily suspend registration as a Class A cottage food operation, or a permit for a Class B cottage food operation, and order the cottage food operation to immediately close. The Director shall issue a written Notice of Violation setting forth the basis for such action, and provide the permit holder or practitioner with the right to a hearing, as set forth in subsection (g), above.
(Added by Ord. , File No. 130244, App. 5/31/2013, Eff. 6/30/2013)
