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File Number: 13-228 <br />BACKGROUND <br />In September 2012, Governor Jerry Brown signed a new law by Assemblyman Mike Gatto <br />(D-Los Angeles) - AB1616 - allowing Californians to make and sell certain non-hazardous <br />foods out of their kitchens subject to the oversight of county health departments (for health <br />code issues) and of local jurisdictions (for zoning permits and business licensing). The new <br />law mandates that local jurisdictions allow residents to obtain a business license to operate a <br />home-based food business known as a Cottage Food Operation. <br />In introducing the new bill, Assemblyman Gatto made the following Author’s Statement <br />regarding the need for legalized home-based food businesses: <br />AB 1616 was introduced after an article featuring a constituent's popular home <br />bread-making business appeared in the Los Angeles Times in May 2011. A short <br />time thereafter his business was shut down by the public health official because <br />under current (editor’s note: as of mid-2012) California law, a person may not <br />use the kitchen in a private residence to produce any foods to be sold or traded <br />for public consumption. The national movement to "homemade" foods and <br />products - also known as "cottage foods", "artisanal foods", "slow foods" and <br />products of "urban agriculture" - reflects a wish to increase the availability of <br />healthier and locally processed foods for our communities. Such products <br />typically include organic and natural ingredients that are less artificially refined or <br />processed. Thirty-one states now have laws that permit the in-home production <br />and distribution of homemade foods (for example, breads, tortillas, dry roasted <br />nuts and legumes, granola, churros, jams, jellies and other products). During <br />these difficult economic times, California should do everything possible to allow <br />individuals to provide for their families and assist with our economic recovery, <br />and home-based food production can allow micro-entrepreneurs to prosper <br />during times of otherwise limited economic opportunity by meeting the desires of <br />local consumers. <br />In December 2012, the Planning Division was notified by the Alameda County Environmental <br />Health Department that the new State of California regulations would go into effect as of <br />January 1, 2013, pursuant to AB1616. Details of the new State law are included in the <br />attached California Conference of Directors of Environmental Health Fact Sheet on AB 1616 <br />Cottage Food Operations. <br />Analysis <br />Prior to the adoption of AB 1616, preparation of food in a home kitchen as a commercial <br />business was not allowed under either State or local regulations. To provide for this new use , <br />the City of San Leandro Zoning Code must be amended to include both a new definition of the <br />Cottage Food Operation use, as well as create regulations for that use to function without <br />undue impact to other residential dwellings in the city. <br />Cottage Food Operation Definition <br />Page 2 City of San Leandro Printed on 5/14/2013