Galt, CA Home Business: Cottage Food Operations (2026)
Key Facts
- State law
- AB 1616 / AB 1240
- Classes
- A direct, B wholesale
- Sales cap
- $150,000 annual
- County
- Sacramento Env Management
- Labels
- Homemade disclosure required
Summary
California Cottage Food Operations are allowed statewide, including in Galt. Class A operations sell direct only and register with Sacramento County; Class B operations may sell wholesale and require annual inspections. Annual sales are capped at $150,000.
113758. (a) "Cottage food operation" means an enterprise that has no more than the amount in gross annual sales that is specified in this subdivision, is operated by a cottage food operator, and has no 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. A "Class A" cottage food operation shall not have more than seventy-five thousand dollars ($75,000) in verifiable gross annual sales. A "Class B" cottage food operation shall not have more than one hundred fifty thousand dollars ($150,000) in verifiable gross annual sales. The gross annual sales for a "Class A" or "Class B" cottage food operation shall be annually adjusted for inflation based on the California Consumer Price Index. 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).
Full Breakdown
The California Homemade Food Act, Assembly Bill 1616 (2012) and expanded by AB 1240, authorizes Cottage Food Operations to produce a state-approved list of low-risk foods in a home kitchen. The governing statute is Health and Safety Code Section 113758 and following. Approved foods include baked goods without cream or meat fillings, jams and jellies, dry mixes, granola, candy, dried pasta, and roasted coffee, among others. Class A operations sell direct to consumers only, including at farmers markets, and register with Sacramento County Environmental Management.
Class B operations may also sell wholesale through permitted retail outlets and must pass an annual home kitchen inspection. Gross annual sales are capped at $150,000. Cottage food producers must complete an approved food handler course, label products clearly with name, ingredients, allergens, and a statement that the product was made in a home kitchen. Pets and children under 10 must be kept out of the kitchen during production. Galt treats a registered CFO as a protected home occupation consistent with state preemption.
Frequently Asked Questions
Do I need a business license for cottage food?
Can I sell cottage food on Instagram?
Sources & Official References
Other rules in Galt
California rules heatmap·Compare Galt to another location·View the California home business overview
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