San Marcos residents may operate cottage food businesses from their home kitchens under California's Cottage Food Law (AB 1616 and AB 626). Class A operations sell directly to consumers and require registration with San Diego County. Class B operations may sell directly and through third-party retailers, requiring a county health permit. Annual gross sales are capped at $75,000.
California's Cottage Food Law allows San Marcos residents to prepare and sell certain non-potentially-hazardous foods from their home kitchens without a commercial kitchen. Approved cottage foods include baked goods, candies, dried fruits, granola, jams, honey, nut butters, and certain other shelf-stable products. Potentially hazardous foods requiring refrigeration are not permitted. Class A cottage food operations sell directly to consumers at the home, farmers markets, and community events, with registration through the San Diego County Department of Environmental Health. Class B operations may additionally sell through retail stores and restaurants and require a county health permit and kitchen inspection. Annual gross sales are capped at $75,000 for all cottage food operations. Products must be properly labeled with the cottage food operation name, ingredients list, allergen warnings, production date, and the statement 'Made in a Home Kitchen.' The home kitchen must have running water, a working refrigerator, and must not be used for cottage food preparation while infants or pets are present. San Marcos home occupation rules apply in addition to cottage food regulations — operators should verify their home occupation permit accommodates the cottage food use. The city's business license requirements also apply.
Operating without proper registration or permit may result in a cease-and-desist order from the county health department. Selling unapproved food products can result in product seizure and fines. Exceeding the $75,000 annual sales cap requires transitioning to a commercial kitchen and obtaining appropriate permits.
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