California's Cottage Food law (AB 1616 as amended by AB 1240 and AB 1144) allows home-based preparation and sale of approved low-risk foods. Palo Alto operators must register with Santa Clara County Environmental Health.
Cottage Food Operations in California are authorized under Health and Safety Code 113758 and related statutes, originally enacted by AB 1616. Operators may prepare approved non-potentially-hazardous foods such as baked goods without cream fillings, jams, jellies, granola, roasted coffee, candies, dry mixes, and certain confections in their home kitchen. Class A CFOs sell directly to consumers only and need only to register with Santa Clara County Environmental Health, while Class B CFOs may sell wholesale to retail stores and require a county permit plus a kitchen inspection. Annual gross sales are capped (commonly 150,000 dollars, confirm current limit). Labels must include operator name, registration number, ingredients, allergens, and a cottage-food disclosure. A food handler card is required. Palo Alto treats CFOs as permitted home occupations when state rules are followed.
Contact your local code enforcement office for specific penalty information.
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