Santa Cruz County, CA Home Business: Cottage Food Operations (2026)

Cottage food operations (CFOs) in the unincorporated County are regulated under California's Cottage Food law, Chapter 11.5 of the California Health and Safety Code (added by AB 1616), and administered locally by the Santa Cruz County Health Services Agency Environmental Health Division. There are two classes: a Class A CFO engages in direct sales only and is registered, while a Class B CFO engages in both direct and indirect sales (for example, through third-party retailers) and is permitted and inspected on an annual basis. Either class may be inspected when Environmental Health has reason, based on a consumer complaint, to suspect adulterated or unsafe food. Under the County's self-certification checklist, food must be prepared in the permitted area of the operator's private home; no cottage food preparation may occur concurrent with other domestic activities; there may be no more than one full-time-equivalent cottage food employee (not counting family or household members); the operator must complete a food processor course; and products must be labeled 'Made in a Home Kitchen' with the product name, CFO name and address, registration or permit number, ingredients, net weight, and allergens. Under current State law (Health and Safety Code 113758), a Class A CFO may not exceed $75,000 and a Class B may not exceed $150,000 in verifiable gross annual sales, adjusted annually for inflation. The County's zoning code treats cottage food businesses as home occupations allowed under SCCC 13.10.613 if consistent with State law and Environmental Health requirements, so applicants should confirm zoning and any business license requirements.