BILL NUMBER: AB 1616	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 30, 2012
	PASSED THE ASSEMBLY  AUGUST 30, 2012
	AMENDED IN SENATE  AUGUST 30, 2012
	AMENDED IN SENATE  AUGUST 24, 2012
	AMENDED IN SENATE  AUGUST 21, 2012
	AMENDED IN SENATE  JULY 3, 2012
	AMENDED IN ASSEMBLY  MAY 3, 2012
	AMENDED IN ASSEMBLY  APRIL 25, 2012
	AMENDED IN ASSEMBLY  APRIL 10, 2012

INTRODUCED BY   Assembly Member Gatto
   (Coauthors: Assembly Members Fletcher, Huffman, Nestande, V.
Manuel Pérez, and Wieckowski)
   (Coauthors: Senators Correa and DeSaulnier)

                        FEBRUARY 8, 2012

   An act to add Chapter 6.1 (commencing with Section 51035) to Part
1 of Division 1 of Title 5 of the Government Code, and to amend
Sections 109947, 110050, 110460, 111955, 113789, 113851, 114021,
114023, 114390, 114405, and 114409 of, to add Sections 113758 and
114088 to, and to add Chapter 11.5 (commencing with Section 114365)
to Part 7 of Division 104 of, the Health and Safety Code, relating to
food safety.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1616, Gatto. Food safety: cottage food operations.
   Existing law, the Sherman Food, Drug, and Cosmetic Law (Sherman
Law), requires the State Department of Public Health to regulate the
manufacture, sale, labeling, and advertising activities related to
food, drugs, devices, and cosmetics in conformity with the Federal
Food, Drug, and Cosmetic Act. The Sherman Law makes it unlawful to
manufacture, sell, deliver, hold, or offer for sale any food that is
misbranded. Food is misbranded if its labeling does not conform to
specified federal labeling requirements regarding nutrition, nutrient
content or health claims, and food allergens. Violation of this law
is a misdemeanor.
   The existing California Retail Food Code provides for the
regulation of health and sanitation standards for retail food
facilities, as defined, by the State Department of Public Health.
Under existing law, local health agencies are primarily responsible
for enforcing the California Retail Food Code. That law exempts
private homes from the definition of a food facility, and prohibits
food stored or prepared in a private home from being used or offered
for sale in a food facility. That law also requires food that is
offered for human consumption to be honestly presented, as specified.
A violation of these provisions is a misdemeanor.
   This bill would include a cottage food operation, as defined, that
is registered or has a permit within the private home exemption of
the California Retail Food Code. The bill would also exclude a
cottage food operation from specified food processing establishment
and Sherman Law requirements. This bill would require a cottage food
operation to meet specified requirements relating to training,
sanitation, preparation, labeling, and permissible types of sales and
would subject a cottage food operation to inspections under
specified circumstances. The bill would require a food facility that
serves a cottage food product without packaging or labeling to
identify it as homemade. The bill would establish various zoning and
permit requirements relating to cottage food operations.
   This bill would incorporate additional changes in Section 113789
of the Health and Safety Code, proposed by AB 2297, to be operative
only if AB 2297 and this bill are both chaptered and become effective
January 1, 2013, and this bill is chaptered last.
   By imposing duties on local officials and adding new crimes, this
bill would create a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
   With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Small businesses have played an important role in helping slow
economies recover and prosper as an engine of job creation. During
the 1990s, small businesses created the majority of new jobs and now
account for 65 percent of United States employment.
   (b) California, and the United States as a whole, are facing
growing obesity and obesity-related disease epidemics.
   (1) Two-thirds of American adults and nearly one-third of children
and teens are obese or overweight, placing them at risk for
developing chronic diseases such as diabetes, heart disease, and
cancer.
   (2) One in every nine California children, one in three teens, and
over half of adults are already overweight or obese. This epidemic
affects virtually all Californians.
   (3) These health conditions are preventable and curable through
lifestyle choices that include consumption of healthy fresh foods.
   (c) For decades, low-income and rural communities have faced
limited opportunities to purchase healthy foods. Often, without cars
or convenient public transportation options, low-income residents in
these areas must rely for much of their shopping on expensive, fatty,
processed foods sold at convenience and corner stores.
   (d) There is a growing movement in California to support
community-based food production, sometimes referred to as "cottage
food," "artisanal food," "slow food," "locally based food," or "urban
agriculture" movements. These movements seek to connect food to
local communities, small businesses, and environmental
sustainability.
   (e) Increased opportunities for entrepreneur development through
microenterprises can help to supplement household incomes, prevent
poverty and hunger, and strengthen local economies.
   (f) At least 32 other states have passed laws that allow small
business entrepreneurs to use their home kitchens to prepare, for
sale, foods that are not potentially hazardous.
   (g) Even some bake sales are currently illegal in California.
   (h) It is the intent of the Legislature to enact a homemade food
act specifically designed to help address these challenges and
opportunities.
  SEC. 2.  Chapter 6.1 (commencing with Section 51035) is added to
Part 1 of Division 1 of Title 5 of the Government Code, to read:
      CHAPTER 6.1.  COTTAGE FOOD OPERATIONS


   51035.  (a) A city, county, or city and county shall not prohibit
a cottage food operation, as defined in Section 113758 of the Health
and Safety Code, in any residential dwellings, but shall do one of
the following:
   (1) Classify a cottage food operation as a permitted use of
residential property for zoning purposes.
   (2) Grant a nondiscretionary permit to use a residence as any
cottage food operation that complies with local ordinances
prescribing reasonable standards, restrictions, and requirements
concerning spacing and concentration, traffic control, parking, and
noise control relating to those homes. Any noise standards shall be
consistent with local noise ordinances implementing the noise element
of the general plan. The permit issued pursuant to this paragraph
shall be granted by the zoning administrator, or if there is no
zoning administrator, by the person or persons designated by the
planning agency to grant these permits, upon the certification
without a hearing.
   (3) Require any cottage food operation to apply for a permit to
use a residence for its operation. The zoning administrator, or if
there is no zoning administrator, the person or persons designated by
the planning agency to handle the use permits, shall review and
decide the applications. The use permit shall be granted if the
cottage food operation complies with local ordinances, if any,
prescribing reasonable standards, restrictions, and requirements
concerning the following factors: spacing and concentration, traffic
control, parking, and noise control relating to those homes. Any
noise standards shall be consistent with local noise ordinances
implementing the noise element of the general plan. The local
government shall process any required permit as economically as
possible. Fees charged for review shall not exceed the costs of the
review and permit process. An applicant may request a verification of
fees, and the city, county, or city and county shall provide the
applicant with a written breakdown within 45 days of the request. The
application form for cottage food operation permits shall include a
statement of the applicant's right to request the written fee
verification.
   (b) In connection with any action taken pursuant to paragraph (2)
or (3) of subdivision (a), a city, county, or city and county shall
do all of the following:
   (1) Upon the request of an applicant, provide a list of the
permits and fees that are required by the city, county, or city and
county, including information about other permits that may be
required by other departments in the city, county, or city and
county, or by other public agencies. The city, county, or city and
county shall, upon request of any applicant, also provide information
about the anticipated length of time for reviewing and processing
the permit application.
   (2) Upon the request of an applicant, provide information on the
breakdown of any individual fees charged in connection with the
issuance of the permit.
   (3) If a deposit is required to cover the cost of the permit,
provide information to the applicant about the estimated final cost
to the applicant of the permit, and procedures for receiving a refund
from the portion of the deposit not used.
   (c) Use of a residence for the purposes of a cottage food
operation shall not constitute a change of occupancy for purposes of
the State Housing Law (Part 1.5 (commencing with Section 17910) of
Division 13 of the Health and Safety Code), or for purposes of local
building and fire codes.
   (d) Cottage food operations shall be considered residences for the
purposes of the State Uniform Building Standards Code and local
building and fire codes.
  SEC. 3.  Section 109947 of the Health and Safety Code is amended to
read:
   109947.  "Food processing facility" means any facility operated
for the purposes of manufacturing, packing, or holding processed
food. Food processing facility does not include a food facility as
defined in Section 113785, a cottage food operation that is
registered or has a permit pursuant to Section 114365, or any
facility exclusively storing, handling, or processing dried beans.
  SEC. 4.  Section 110050 of the Health and Safety Code is amended to
read:
   110050.  The Food Safety Fund is hereby created as a special fund
in the State Treasury. All moneys collected by the department under
subdivision (c) of Section 110466 and Sections 110470, 110471,
110485, 114365, 114365.6, 111130, and 113717, and under Article 7
(commencing with Section 110810) of Chapter 5 shall be deposited in
the fund, for use by the department, upon appropriation by the
Legislature, for the purposes of providing funds necessary to carry
out and implement the inspection provisions of this part relating to
food, licensing, inspection, enforcement, and other provisions of
Article 12 (commencing with Section 111070) relating to water, the
provisions relating to education and training in the prevention of
microbial contamination pursuant to Section 110485, and the
registration provisions of Article 7 (commencing with Section 110810)
of Chapter 5, and to carry out and implement the provisions of the
California Retail Food Code (Part 7 (commencing with Section 113700)
of Division 104).
  SEC. 5.  Section 110460 of the Health and Safety Code is amended to
read:
   110460.  No person shall engage in the manufacture, packing, or
holding of any processed food in this state unless the person has a
valid registration from the department, except those engaged
exclusively in the storing, handling, or processing of dried beans.
The registration shall be valid for one calendar year from the date
of issue, unless it is revoked. The registration shall not be
transferable. This section shall not apply to a cottage food
operation that is registered or has a permit pursuant to Section
114365.
  SEC. 6.  Section 111955 of the Health and Safety Code is amended to
read:
   111955.  "Food processing establishment," as used in this chapter,
shall mean any room, building, or place or portion thereof,
maintained, used, or operated for the purpose of commercially
storing, packaging, making, cooking, mixing, processing, bottling,
canning, packing, slaughtering, or otherwise preparing or handling
food except restaurants. "Food processing establishment" shall not
include a cottage food operation that is registered or has a permit
pursuant to Section 114365.
  SEC. 7.  Section 113758 is added to the Health and Safety Code, to
read:
   113758.  (a) "Cottage food operation" means an enterprise that has
not more than the amount in gross annual sales that is specified in
this subdivision, is operated by a cottage food operator, and has not
more than one full-time equivalent cottage food employee, not
including a family member or household member of the cottage food
operator, within the registered or permitted area of a private home
where the cottage food operator resides and where cottage food
products are prepared or packaged for direct, indirect, or direct and
indirect sale to consumers pursuant to this part. In 2013, the
enterprise shall not have more than thirty-five thousand dollar
($35,000) in gross annual sales in the calendar year. In 2014, the
enterprise shall not have more than forty-five thousand dollars
($45,000) in gross annual sales in the calendar year. 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. A cottage food operation includes both of the
following:
   (1) A "Class A" cottage food operation, which is a cottage food
operation that may engage only in direct sales of cottage food
products from the cottage food operation or other direct sales venues
described in paragraph (4) of subdivision (b).
   (2) A "Class B" cottage food operation, which is a cottage food
operation that may engage in both direct sales and indirect sales of
cottage food products from the cottage food operation, from direct
sales venues described in paragraph (4) of subdivision (b), from
offsite events, or from a third-party retail food facility described
in paragraph (5) of subdivision (b).
   (b) For purposes of this section, the following definitions shall
apply:
   (1) "Cottage food employee" means an individual, paid or
volunteer, who is involved in the preparation, packaging, handling,
and storage of a cottage food product, or otherwise works for the
cottage food operation. An employee does not include an immediate
family member or household member of the cottage food operator.
   (2) "Cottage food operator" means an individual who operates a
cottage food operation in his or her private home and is the owner of
the cottage food operation.
   (3) "Cottage food products" means nonpotentially hazardous foods,
including foods that are described in Section 114365.5 and that are
prepared for sale in the kitchen of a cottage food operation.
   (4) "Direct sale" means a transaction between a cottage food
operation 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 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) "Private home" means a dwelling, including an apartment or
other leased space, where individuals reside.
   (7) "Registered or permitted area" means the 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 attached rooms
within the home that are used exclusively for storage.
  SEC. 8.  Section 113789 of the Health and Safety Code is amended to
read:
   113789.  (a) "Food facility" means an operation that stores,
prepares, packages, serves, vends, or otherwise provides food for
human consumption at the retail level, including, but not limited to,
the following:
   (1) An operation where food is consumed on or off the premises,
regardless of whether there is a charge for the food.
   (2) Any place used in conjunction with the operations described in
this subdivision, including, but not limited to, storage facilities
for food-related utensils, equipment, and materials.
   (b) "Food facility" includes permanent and nonpermanent food
facilities, including, but not limited to, the following:
   (1) Public and private school cafeterias.
   (2) Restricted food service facilities.
   (3) Licensed health care facilities.
   (4) Commissaries.
   (5) Mobile food facilities.
   (6) Mobile support units.
   (7) Temporary food facilities.
   (8) Vending machines.
   (9) Certified farmers' markets, for purposes of permitting and
enforcement pursuant to Section 114370.
   (10) Farm stands, for purposes of permitting and enforcement
pursuant to Section 114375.
   (c) "Food facility" does not include any of the following:
   (1) A cooperative arrangement wherein no permanent facilities are
used for storing or handling food.
   (2) A private home, including a cottage food operation that is
registered or has a permit pursuant to Section 114365.
   (3) A church, private club, or other nonprofit association that
gives or sells food to its members and guests, and not to the general
public, at an event that occurs not more than three days in any
90-day period.
   (4) A for-profit entity that gives or sells food at an event that
occurs not more than three days in a 90-day period for the benefit of
a nonprofit association, if the for-profit entity receives no
monetary benefit, other than that resulting from recognition from
participating in an event.
   (5) Premises set aside for wine tasting, as that term is used in
Section 23356.1 of the Business and Professions Code and in the
regulations adopted pursuant to that section, that comply with
Section 118375, regardless of whether there is a charge for the wine
tasting, if no other beverage, except for bottles of wine and
prepackaged nonpotentially hazardous beverages, is offered for sale
for onsite consumption and no food, except for crackers, is served.
   (6) Premises operated by a producer, selling or offering for sale
only whole produce grown by the producer, or shell eggs, or both,
provided the sales are conducted on premises controlled by the
producer.
   (7) A commercial food processing plant as defined in Section
111955.
   (8) A child day care facility, as defined in Section 1596.750.
   (9) A community care facility, as defined in Section 1502.
   (10) A residential care facility for the elderly, as defined in
Section 1569.2.
   (11) A residential care facility for the chronically ill, which
has the same meaning as a residential care facility, as defined in
Section 1568.01.
   (12) Premises set aside by a beer manufacturer, as defined in
Section 25000.2 of the Business and Professions Code, that comply
with Section 118375, for the purposes of beer tasting, regardless of
whether there is a charge for the beer tasting, if no other beverage,
except for beer and prepackaged nonpotentially hazardous beverages,
is offered for sale for onsite consumption, and no food, except for
crackers or pretzels, is served.
  SEC. 8.5.  Section 113789 of the Health and Safety Code is amended
to read:
   113789.  (a) "Food facility" means an operation that stores,
prepares, packages, serves, vends, or otherwise provides food for
human consumption at the retail level, including, but not limited to,
the following:
   (1) An operation where food is consumed on or off the premises,
regardless of whether there is a charge for the food.
   (2) Any place used in conjunction with the operations described in
this subdivision, including, but not limited to, storage facilities
for food-related utensils, equipment, and materials.
   (b) "Food facility" includes permanent and nonpermanent food
facilities, including, but not limited to, the following:
   (1) Public and private school cafeterias.
   (2) Restricted food service facilities.
   (3)  Licensed health care facilities, except as provided in
paragraph (13) of subdivision (c).
   (4) Commissaries.
   (5) Mobile food facilities.
   (6) Mobile support units.
   (7) Temporary food facilities.
   (8) Vending machines.
   (9) Certified farmers' markets, for purposes of permitting and
enforcement pursuant to Section 114370.
   (10) Farm stands, for purposes of permitting and enforcement
pursuant to Section 114375.
   (c) "Food facility" does not include any of the following:
   (1) A cooperative arrangement wherein no permanent facilities are
used for storing or handling food.
   (2) A private home, including a cottage food operation that is
registered or has a permit pursuant to Section 114365.
   (3) A church, private club, or other nonprofit association that
gives or sells food to its members and guests, and not to the general
public, at an event that occurs not more than three days in any
90-day period.
   (4) A for-profit entity that gives or sells food at an event that
occurs not more than three days in a 90-day period for the benefit of
a nonprofit association, if the for-profit entity receives no
monetary benefit, other than that resulting from recognition from
participating in an event.
   (5) Premises set aside for wine tasting, as that term is used in
Section 23356.1 of the Business and Professions Code and in the
regulations adopted pursuant to that section, that comply with
Section 118375, regardless of whether there is a charge for the wine
tasting, if no other beverage, except for bottles of wine and
prepackaged nonpotentially hazardous beverages, is offered for sale
for onsite consumption and no food, except for crackers, is served.
   (6) Premises operated by a producer, selling or offering for sale
only whole produce grown by the producer, or shell eggs, or both,
provided the sales are conducted on premises controlled by the
producer.
   (7) A commercial food processing plant as defined in Section
111955.
   (8) A child day care facility, as defined in Section 1596.750.
   (9) A community care facility, as defined in Section 1502.
   (10) A residential care facility for the elderly, as defined in
Section 1569.2.
   (11) A residential care facility for the chronically ill, which
has the same meaning as a residential care facility, as defined in
Section 1568.01.
   (12) Premises set aside by a beer manufacturer, as defined in
Section 25000.2 of the Business and Professions Code, that comply
with Section 118375, for the purposes of beer tasting, regardless of
whether there is a charge for the beer tasting, if no other beverage,
except for beer and prepackaged nonpotentially hazardous beverages,
is offered for sale for onsite consumption, and no food, except for
crackers or pretzels, is served.
   (13) (A) An intermediate care facility for the developmentally
disabled, as defined in subdivisions (e), (h), and (m) of Section
1250, with a capacity of six beds or fewer.
   (B) A facility described in subparagraph (A) shall report any
foodborne illness or outbreak to the local health department and to
the State Department of Public Health within 24 hours of the illness
or outbreak.
  SEC. 9.  Section 113851 of the Health and Safety Code is amended to
read:
   113851.  (a) "Permit" means the document issued by the enforcement
agency that authorizes a person to operate a food facility or
cottage food operation.
   (b) "Registration" shall have the same meaning as permit for
purposes of implementation and enforcement of this part.
  SEC. 10.  Section 114021 of the Health and Safety Code is amended
to read:
   114021.  (a) Food shall be obtained from sources that comply with
all applicable laws.
   (b) Food stored or prepared in a private home shall not be used or
offered for sale in a food facility, unless that food is prepared by
a cottage food operation that is registered or has a permit pursuant
to Section 114365.
  SEC. 11.  Section 114023 of the Health and Safety Code is amended
to read:
   114023.  Food in a hermetically sealed container shall be obtained
from a food processing plant that is regulated by the food
regulatory agency that has jurisdiction over the plant, or from a
cottage food operation that produces jams, jellies, and preserves and
that is registered or has a permit pursuant to Section 114365.
  SEC. 12.  Section 114088 is added to the Health and Safety Code, to
read:
   114088.  A cottage food product, as defined in Section 113758,
that is served by a food facility without packaging or labeling, as
described in Section 114365, shall be identified to the consumer as
homemade on the menu, menu board, or other location that would
reasonably inform a consumer of its homemade status.
  SEC. 13.  Chapter 11.5 (commencing with Section 114365) is added to
Part 7 of Division 104 of the Health and Safety Code, to read:
      CHAPTER 11.5.  COTTAGE FOOD OPERATIONS


   114365.  (a) (1) (A) A "Class A" cottage food operation shall not
be open for business unless it is registered with the local
enforcement agency and has submitted a completed, self-certification
checklist approved by the local enforcement agency. The
self-certification checklist shall verify that the cottage food
operation conforms to this chapter, including the following
requirements:
   (i) No cottage food preparation, packaging, or handling may occur
in the home kitchen concurrent with any other domestic activities,
such as family meal preparation, dishwashing, clothes washing or
ironing, kitchen cleaning, or guest entertainment.
   (ii) No infants, small children, or pets may be in the home
kitchen during the preparation, packaging, or handling of any cottage
food products.
   (iii) Kitchen equipment and utensils used to produce cottage food
products shall be clean and maintained in a good state of repair.
   (iv) All food contact surfaces, equipment, and utensils used for
the preparation, packaging, or handling of any cottage food products
shall be washed, rinsed, and sanitized before each use.
   (v) All food preparation and food and equipment storage areas
shall be maintained free of rodents and insects.
   (vi) Smoking shall be prohibited in the portion of a private home
used for the preparation, packaging, storage, or handling of cottage
food products and related ingredients or equipment, or both, while
cottage food products are being prepared, packaged, stored, or
handled.
   (B) (i) The department shall post the requirements described in
subparagraph (A) on its Internet Web site.
   (ii) The local enforcement agency shall issue a registration
number to a "Class A" cottage food operation that meets the
requirements of subparagraph (A).
   (C) (i) Except as provided in (ii), a "Class A" cottage food
operation shall not be subject to initial or routine inspections.
   (ii) For purposes of determining compliance with this chapter, a
representative of a local enforcement agency may access, for
inspection purposes, the registered area of a private home where a
cottage food operation is located only if the representative has, on
the basis of a consumer complaint, reason to suspect that adultered
or otherwise unsafe food has been produced by the cottage food
operation or that the cottage food operation has violated this
chapter.
   (iii) Access under this subparagraph is limited to the registered
area and solely for the purpose of enforcing or administering this
chapter.
   (iv) A local enforcement agency may seek recovery from a "Class A"
cottage food operation of an amount that does not exceed the local
enforcement agency's reasonable costs of inspecting the "Class A"
cottage food operation for compliance with this chapter, if the
"Class A" cottage food operation is found to be in violation of this
chapter.
   (2) (A) A "Class B" cottage food operation shall not be open for
business unless it obtains a permit from the local enforcement agency
in a manner approved by the local enforcement agency to engage in
the direct and indirect sale of cottage food products.
   (B) (i) A "Class B" cottage food operation shall comply with the
requirements described in clauses (i) to (vi), inclusive, of
subparagraph (A) of paragraph (1) in addition to the other
requirements of this chapter.
   (ii) The local enforcement agency shall issue a permit number
after an initial inspection has determined that the proposed "Class B"
cottage food operation and its method of operation conform to this
chapter.
   (C) Except as provided in this subparagraph, a "Class B" cottage
food operation shall not be subject to more than one inspection per
year by the local enforcement agency.
   (i) For purposes of determining compliance with this chapter, a
representative of a local enforcement agency, for inspection
purposes, may access the permitted area of a private home where a
cottage food operation is located only if the representative has, on
the basis of a consumer complaint, reason to suspect that adulterated
or otherwise unsafe food has been produced by the cottage food
operation, or that the cottage food operation has violated this
chapter.
   (ii) Access under this subparagraph is limited to the permitted
area and solely for the purpose of enforcing or administering this
chapter.
   (D) (i) A "Class B" cottage food operation shall be authorized to
engage in the indirect sales of cottage food products within the
county in which the "Class B" cottage food operation is permitted.
   (ii) A county may agree to allow a "Class B" cottage food
operation permitted in another county to engage in the indirect sales
of cottage food products in the county.
   (b) A registration or permit, once issued, is nontransferable. A
registration or permit shall be valid only for the person, location,
type of food sales, and distribution
         activity specified by that registration or permit, and,
unless suspended or revoked for cause, for the time period indicated.

   114365.2.  A cottage food operation that is registered or has a
permit issued pursuant to Section 114365 shall be considered a
restricted food service facility for purposes of, and subject to,
Sections 113953.3, 114259.5, 114285, and 114286. A cottage food
operation that is registered or has a permit also shall be subject to
Sections 113967, 113973, 113980, 114259.5, 114405, 114407, 114409,
114411, and 114413, and to all of the following requirements:
   (a) A person with a contagious illness shall refrain from work in
the registered or permitted area of the cottage food operation.
   (b) A person involved in the preparation or packaging of cottage
food products shall keep his or her hands and exposed portions of his
or her arms clean and shall wash his or her hands before any food
preparation or packaging activity in a cottage food operation.
   (c) Water used during the preparation of cottage food products
shall meet the potable drinking water standards described in Section
113869, except that a cottage food operation shall not be required to
have an indirect sewer connection. Water used during the preparation
of cottage food products includes all of the following:
   (1) The washing, sanitizing, and drying of any equipment used in
the preparation of a cottage food product.
   (2) The washing, sanitizing, and drying of hands and arms.
   (3) Water used as an ingredient.
   (d) A person who prepares or packages cottage food products shall
complete a food processor course instructed by the department to
protect the public health within three months of becoming registered.
The course shall not exceed four hours in length. The department
shall work with the local enforcement agency to ensure that cottage
food operators are properly notified of the location, date, and time
of the classes offered.
   (e) A cottage food operation shall properly label all cottage food
products in compliance with the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. Sec. 343 et seq.). Additionally, to the extent permitted
by federal law, the label shall include, but is not limited to, all
of the following:
   (1) The words "Made in a Home Kitchen" in 12-point type on the
cottage food product's primary display panel.
   (2) The name commonly used for the food product or an adequately
descriptive name.
   (3) The name of the cottage food operation which produced the
cottage food product.
   (4) The registration or permit number of the "Class A" or "Class B"
cottage food operation, respectively, which produced the cottage
food product and, in the case of a "Class B" cottage food operation,
the name of the county of the local enforcement agency that issued
the permit number.
   (5) The ingredients of the cottage food product, in descending
order of predominance by weight, if the product contains two or more
ingredients.
   114365.5.  (a) The department shall adopt and post on its Internet
Web site a list of not potentially hazardous foods and their ethnic
variations that are approved for sale by a cottage food operation. A
cottage food product shall not be potentially hazardous food, as
defined in Section 113871.
   (b) This list of nonpotentially hazardous foods shall include, but
not be limited to, all of the following:
   (1) Baked goods without cream, custard, or meat fillings, such as
breads, biscuits, churros, cookies, pastries, and tortillas.
   (2) Candy, such as brittle and toffee.
   (3) Chocolate-covered nonperishable foods, such as nuts and dried
fruit.
   (4) Dried fruit.
   (5) Dried pasta.
   (6) Dry baking mixes.
   (7) Fruit pies, fruit empanadas, and fruit tamales.
   (8)  Granola, cereals, and trail mixes.
   (9) Herb blends and dried mole paste.
   (10) Honey and sweet sorghum syrup.
   (11) Jams, jellies, preserves, and fruit butter that comply with
the standard described in Part 150 of Title 21 of the Code of Federal
Regulations.
   (12) Nut mixes and nut butters.
   (13) Popcorn.
   (14) Vinegar and mustard.
   (15) Roasted coffee and dried tea.
   (16) Waffle cones and pizelles.
   (c) (1) The State Public Health Officer may add or delete food
products to or from the list described in subdivision (b), which
shall be known as the approved food products list. Notice of any
change to the approved food products list shall be posted on the
department's cottage food program Internet Web site, to also be known
as the program Internet Web site for purposes of this chapter. Any
change to the approved food products list shall become effective 30
days after the notice is posted. The notice shall state the reason
for the change, the authority for the change, and the nature of the
change. The notice will provide an opportunity for written comment by
indicating the address to which to submit the comment and the
deadline by which the comment is required to be received by the
department. The address to which the comment is to be submitted may
be an electronic site. The notice shall allow at least 20 calendar
days for comments to be submitted. The department shall consider all
comments submitted before the due date. The department may withdraw
the proposed change at any time by notification on the program
Internet Web site or through notification by other electronic means.
The approved food products list described in subdivision (b), and any
updates to the list, shall not be subject to the administrative
rulemaking requirements of Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code.
   (2) The State Public Health Officer shall not remove any items
from the approved food products list unless the State Public Health
Officer also posts information on the program Internet Web site
explaining the basis upon which the removed food item has been
determined to be potentially hazardous.
   114365.6.  (a) The State Public Health Officer shall provide
technical assistance, and develop, maintain, and deliver
commodity-specific training related to the safe processing and
packaging of cottage food products to local enforcement agencies.
   (b) Local enforcement agencies may collect a surcharge fee in
addition to any permit fees collected for "Class B" cottage food
operations. The surcharge fee shall not exceed the reasonable costs
that the department incurs through the administration of the training
described in subdivision (a) to protect the public health. The
surcharge fees collected shall be transmitted to the department in a
manner established by the department to be deposited in the Food
Safety Fund. The department shall use the surcharge fees only to
develop and deliver the training described in subdivision (a) to
local enforcement agency personnel on an ongoing basis.
  SEC. 14.  Section 114390 of the Health and Safety Code is amended
to read:
   114390.  (a) Enforcement officers shall enforce this part and all
regulations adopted pursuant to this part.
   (b) (1) For purposes of enforcement, any authorized enforcement
officer may, during the facility's hours of operation and other
reasonable times, enter, inspect, issue citations to, and secure any
sample, photographs, or other evidence from a food facility, cottage
food operation, or any facility suspected of being a food facility or
cottage food operation, or a vehicle transporting food to or from a
retail food facility, when the vehicle is stationary at an
agricultural inspection station, a border crossing, or at any food
facility under the jurisdiction of the enforcement agency, or upon
the request of an incident commander.
   (2) If a food facility is operating under an HACCP plan, the
enforcement officer may, for the purpose of determining compliance
with the plan, secure as evidence any documents, or copies of
documents, relating to the facility's adherence to the HACCP plan.
Inspection may, for the purpose of determining compliance with this
part, include any record, file, paper, process, HACCP plan, invoice,
or receipt bearing on whether food, equipment, or utensils are in
violation of this part.
   (c) Notwithstanding subdivision (a), an employee may refuse entry
to an enforcement officer who is unable to present official
identification showing the enforcement officer's picture and
enforcement agency name. In the absence of the identification card, a
business card showing the enforcement agency's name plus a picture
identification card such as a driver's license shall meet this
requirement.
   (d) It is a violation of this part for any person to refuse to
permit entry or inspection, the taking of samples or other evidence,
access to copy any record as authorized by this part, to conceal any
samples or evidence, withhold evidence concerning them, or interfere
with the performance of the duties of an enforcement officer,
including making verbal or physical threats or sexual or
discriminatory harassment.
   (e) A written report of the inspection shall be made and a copy
shall be supplied or mailed to the owner, manager, or operator of the
food facility.
  SEC. 15.  Section 114405 of the Health and Safety Code is amended
to read:
   114405.  (a) A permit may be suspended or revoked by a local
enforcement officer for a violation of this part. Any food facility
or cottage food operation for which the permit has been suspended
shall close and remain closed until the permit has been reinstated.
Any food facility or cottage food operation for which the permit has
been revoked shall close and remain closed until a new permit has
been issued.
   (b) Whenever a local enforcement officer finds that a food
facility or cottage food operation is not in compliance with the
requirements of this part, a written notice to comply shall be issued
to the permitholder. If the permitholder fails to comply, the local
enforcement officer shall issue to the permitholder a notice setting
forth the acts or omissions with which the permitholder is charged,
and informing him or her of a right to a hearing, if requested, to
show cause why the permit should not be suspended or revoked. A
written request for a hearing shall be made by the permitholder
within 15 calendar days after receipt of the notice. A failure to
request a hearing within 15 calendar days after receipt of the notice
shall be deemed a waiver of the right to a hearing. When
circumstances warrant, the hearing officer may order a hearing at any
reasonable time within this 15-day period to expedite the permit
suspension or revocation process.
   (c) The hearing shall be held within 15 calendar days of the
receipt of a request for a hearing. Upon written request of the
permitholder, the hearing officer may postpone any hearing date, if
circumstances warrant the action.
  SEC. 16.  Section 114409 of the Health and Safety Code is amended
to read:
   114409.  (a) If any imminent health hazard is found, unless the
hazard is immediately corrected, an enforcement officer may
temporarily suspend the permit and order the food facility or cottage
food operation immediately closed.
   (b) Whenever a permit is suspended as the result of an imminent
health hazard, the enforcement officer shall issue to the
permitholder a notice setting forth the acts or omissions with which
the permitholder is charged, specifying the pertinent code section,
and informing the permitholder of the right to a hearing.
   (c) At any time within 15 calendar days after service of a notice
pursuant to subdivision (b), the permitholder may request in writing
a hearing before a hearing officer to show cause why the permit
suspension is not warranted. The hearing shall be held within 15
calendar days of the receipt of a request for a hearing. A failure to
request a hearing within 15 calendar days shall be deemed a waiver
of the right to a hearing.
  SEC. 17.  Section 8.5 of this bill incorporates amendments to
Section 113789 of the Health and Safety Code proposed by both this
bill and Assembly Bill 2297. It shall only become operative if (1)
both bills are enacted and become effective on or before January 1,
2013, (2) each bill amends Section 113789 of the Health and Safety
Code, and (3) this bill is enacted after Assembly Bill 2297, in which
case Section 8 of this bill shall not become operative.
  SEC. 18.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because, in that regard, 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 XIII B of the California
Constitution.
   However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.