Merced, CA Home Business: Cottage Food Operations (2026)

The City of Merced regulates cottage food operations through its home-occupation framework while honoring the protections of the California Homemade Food Act (AB 1616). MMC Section 20.48.020.B states that "a cottage food operation as defined by the California Homemade Food Act (AB 1616) shall be considered a major home occupation," and MMC Section 20.48.030.B.1 requires a Minor Use Permit to establish or operate one. MMC Section 20.48.040.C.4 requires that an approved cottage food operation permit from the Merced County Department of Health (Environmental Health), along with the required self-certification checklist, be submitted as part of the Minor Use Permit application. Critically, the same subsection states that "cottage food operations are exempt from the restrictions on customers coming to the home, the sale of goods from the home, and any of the standards in this chapter if in conflict with state law." This honors the Homemade Food Act, under which Class A and Class B cottage food operations have specific state-protected rights; Class A operations sell directly to consumers and Class B may also sell through certain retail outlets. Because the City defers to state law where it conflicts, a permitted cottage food operator in Merced may sell certain non-potentially-hazardous foods made in a home kitchen and may, unlike other home occupations, have customers come to the home and buy goods on site, consistent with the state act and the county health permit.