Cottage Food Operations (CFOs) are governed by California Health & Safety Code §113758 (AB 1616 / AB 1144). In Riverside you need a state-required CFO Class A or B registration/permit from the Riverside County Department of Environmental Health, a City of Riverside Home Occupation Permit, and a City Business Tax Certificate.
California preempts most local regulation of home-based food businesses through the California Homemade Food Act (AB 1616, 2012, codified at Health & Safety Code §113758) as amended by AB 1144 (2021). §113758 defines a Cottage Food Operation as a home enterprise producing approved non-potentially-hazardous foods (the 'cottage food list' maintained by the California Department of Public Health), with Class A operations (direct sales only) capped at $75,000 in gross annual sales and Class B operations (direct + indirect/third-party retail sales) capped at $150,000. A CFO may have no more than one full-time-equivalent non-family employee in the registered area of the home. State law mandates that local jurisdictions allow CFOs as a permitted home occupation: Health & Safety Code §113758(b)(2) and §51035 of the Government Code direct that CFOs 'shall be classified as a residential use of property for zoning purposes' and a city or county may not prohibit them outright. In Riverside, the workflow is: (1) Register with Riverside County Department of Environmental Health (RCDEH) under the state cottage food program — Class A is registered after a self-certification and food-processor course; Class B requires a permit and an in-home kitchen inspection. (2) Complete the CDPH-approved food processor course within 3 months of registration. (3) Obtain a City of Riverside Home Occupation Permit (RMC §19.485.020) acknowledging the CFO. (4) Obtain a City of Riverside Business Tax Certificate from the Finance Department. Labeling and direct-sale rules in §114365.5 apply. Indirect-sale CFOs (Class B) must keep their products in third-party retail venues within California.
State CFO requirements are enforced by RCDEH; failure to register/permit, exceeding sales caps, employing more than one non-family worker, or producing non-approved foods can lead to suspension of the CFO permit and seizure of product. Local Riverside violations (operating the CFO without a Home Occupation Permit or Business Tax Certificate) are infractions under RMC §1.15: $100 / $200 / $500 escalation within a 12-month period, or misdemeanor prosecution up to $1,000 and/or six months jail. The City cannot, however, prohibit the CFO use itself or impose stricter operational standards than §113758 allows — that would violate state preemption.
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