Yuba City, CA Home Business: Cottage Food Operations (2026)

The California Homemade Food Act (AB 1616, codified at Cal. Health & Safety Code §§113758 and 114365) authorizes a Cottage Food Operation (CFO) to produce non-potentially hazardous foods (baked goods, jams, granola, candies, dried items, etc.) in the operator's private home kitchen for direct or indirect sale to consumers. Under §113758, Class A CFOs (direct sales only — farmers markets, in-person, online direct) require registration with the local environmental health agency; Class B CFOs (indirect sales through retail) require an annual permit and inspection. Statewide gross-sales caps apply under §114365 (currently $150,000/year as adjusted). Operations are limited to one full-time-equivalent CFO employee (excluding family/household members). Health & Safety Code §113758(b) provides that a Cottage Food Operation is deemed a permitted residential use and 'a local agency shall not prohibit a cottage food operation in a residential dwelling' — local agencies may only impose reasonable spacing, concentration, and sanitation standards. In Yuba City, this means a CFO is permissible in any residential zone notwithstanding the home-occupation limitations of YCMC §8-5.5002(b), so long as the operator registers/permits with Sutter County Environmental Health. A Yuba City business license is still required.