California Health & Safety Code §113758 (AB 1616) preempts local prohibitions on cottage food operations in homes — San Leandro must treat a registered or permitted CFO as a permitted residential use, subject only to reasonable local standards.
Under California Health & Safety Code §113758 (added by AB 1616), a city or county shall not prohibit a cottage food operation (CFO) in any residential dwelling. The jurisdiction must either classify a CFO as a permitted use of residential property for zoning purposes, or grant a nondiscretionary permit subject only to reasonable standards regarding spacing/concentration, traffic control, parking, and noise. A 'cottage food operation' is an enterprise within the private home where the operator resides, with no more than one full-time equivalent non-family employee, and gross annual sales below the statutory cap (currently $150,000 for Class B CFOs that conduct indirect sales). Operators must register (Class A — direct sales only) or obtain a permit (Class B — direct and indirect sales) through the Alameda County Environmental Health Department and complete an approved food processor training course. Only specified 'non-potentially hazardous' foods (baked goods without cream, jams, dried mixes, etc.) listed by CDPH are allowed. While San Leandro requires a Home Occupation Permit and business license for home-based businesses generally under Zoning Code §2.04.220, state law preempts any city standard that would effectively bar a registered CFO from operating in a home.
Operating a CFO without state registration/permit, exceeding sales caps, or producing non-approved foods is a violation of Health & Safety Code §113758. Alameda County Environmental Health can suspend the registration/permit. Local code enforcement may still cite violations of reasonable San Leandro standards (e.g., parking, noise) under Municipal Code Title 1 (misdemeanor unless charged as infraction — $100 first / $200 second within a year).
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