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Home My WebLink About2022-05-09; Economic Development Subcommittee; ; Micro Enterprise Home Kitchen Operations Update Economic Development Subcommittee Meeting Date: May 9, 2022 To: City Council Economic Development Subcommittee From: David Graham, Chief Innovation Officer Item #2: Micro Enterprise Home Kitchen Operations Update Recommendation: Receive an informational report regarding MEHKOs from San Diego County staff, discuss and provide recommendations. 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 kitchens 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 temperature 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 includes reviewing 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 {city of Carlsbad Economic Development Subcommittee – Staff Report May 9, 2022 Item 2 - Page 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 regulations, including but not limited to code compliance. While 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 jurisdiction 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 will continue to communicate with the County and DEHQ staff on the MEHKO program and any issues that arise. 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 DiegoCounty 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 1/1/2019MEHKO law goes into effect (AB 626) 10/7/2019 MEHKO cleanup law goes into effect (AB 377) 9/15/2021BOS directs DEHQ to return in 120 days with proposed MEHKO ordinance 1/26/2022 BOS temporarily authorizes MEHKOs as a 2-year pilot 2/25/2022DEHQ 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 processes 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 resident in a private home •Serve potentially hazardous foods •Sold directly via onsite dining, pick-up, or delivery •Cannot sell to other food facilities •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 •Daily/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 -Initial Testing •Potable Water for Wells and Private Water Systems -Ongoing 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 •Data 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