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HomeMy WebLinkAboutitem 11a - Opposing Assembly Bill 377 - Microenterprise Home Kitchen OperationsResolution No. 7262 Opposing AB 377 - MEHKOs August 6, 2019 Page 1 of 4 DATE: August 6, 2019 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Lisa Flores, Planning & Community Development Administrator By: Amber Abeyta, Business License Officer SUBJECT: RESOLUTION NO. 7262 OPPOSING ASSEMBLY BILL 377 (GARCIA), RELATED TO PERMITTING AND REGULATION OF MICROENTERPRISE HOME KITCHEN OPERATIONS (“MEHKOs”), UNLESS AMENDED, AND AUTHORIZING THE MAYOR TO SIGN A LETTER OF OPPOSITION ON BEHALF OF THE CITY Recommendation: Adopt SUMMARY On September 18, 2018, then Governor Brown signed Assembly Bill 626 (“AB 626”), amending the California Retail Food Code: Microenterprise Home Kitchen Operations, which established “Microenterprise Home Kitchen Operation s” (“MEHKOs”) as a new category of retail food facility. MEHKOs allow residents in a private home or dwelling to prepare food and serve food to customers for profit, but in a limited manner. Operators may sell individual meals directly to consumer for pick -up, delivery, or for dining on-site – much like a restaurant. On February 5, 2019, a new bill was introduced, AB 377, to make minor changes to AB 626 in order to provide for more regulatory clarity. Under this new bill, counties will have the ability to opt -in by adopting an ordinance to authorize a local MEHKO program for the entire jurisdiction, including all cities within the county. The law gives the counties “full discretion” to authorize the MEHKOs program in their jurisdiction. AB 626 was ambiguous as to whether a local jurisdiction may prohibit these land uses in their residential zones. The current statute states that cities and counties have “full discretion” to authorize the permitting of MEHKOs, while also providing that if a county permits them, a city has no authority to disallow them. As a basic local control issue, m ost cities would like to have an opt-out provision that would permit a local agency to opt-out of a county’s ordinance for MEHKOs; however, AB 377 does not provide for such an opt-out option. Therefore, it is recommended that the City Council adopt Resolution No. 7262 (Attachment No.1) opposing AB 377, unless Resolution No. 7262 Opposing AB 377 - MEHKOs August 6, 2019 Page 2 of 4 amended to include an opt-out provision for local jurisdictions, and authorizing the Mayor to sign a letter of opposition on behalf of the City. BACKGROUND AB 626 (Garcia), which became effective on January 1, 2019, established MEHKOs in California. These food facilities are operated out of an individual’s private residence by the resident and are allowed to produce a very broad variety of complex food prod ucts. MEHKOs, like regular commercial or retail food service facilities, must comply with the California Retail Food Code (“CRFC”), and this includes the requirement that they obtain an operational permit from their respective local enforcement agency. In Lo s Angeles County, most cities contract with the Department of Public Health for permitting, inspection, and compliance services for food service facilities. While MEHKOs are now allowed to apply for service permits, and to operate as a food service facility, there are restrictions placed upon MEHKOs in order to limit their operations. Below is a summary of the most notable and pertinent restrictions on MEHKOs, as stipulated by AB 626:  Food is prepared, cooked, and served or delivered on the same day.  Food must be consumed at the location of the MEHKO, or can be picked up by a local small-party customer.  Sale of raw milk products or oysters are prohibited.  MEHKOs cannot have more than one full-time food employee.  MEHKOs cannot exceed $50,000 in gross annual sales.  MEHKOs may only sell food directly to private consumers.  These food facilities may only produce a maximum of 30 meals per day and 60 meals per week.  The operation is prohibited from indirect sale of food . For further details, refer to Attachment No. 3, Assembly Bill No. 626. AB 626 permits counties and local municipalities to enact an ordinance or resolution to authorize the local enforcement entity to issue health permits and conduct inspections. Due to the fact that the language in AB 626 is ambiguous, the Los Angeles County Department of Public Health (“DPH”) has been working with the California Conference of Directors of Environmental Health (“CCDEH”) and the County Health Executives Association of California (“CHEAC”) to address these issues through cleanup legislation. Assembly Member Garcia, who was the author of AB 626, has proposed an urgency bill – AB 377 – that would amend the statute (refer to Attachment No. 4). The amendments were expected to include language that would clarify cities’ discretion to opt-out of a county’s MEHKOs permitting program. Resolution No. 7262 Opposing AB 377 - MEHKOs August 6, 2019 Page 3 of 4 Contrary to expectations, the proposed bill completely removes cities’ authority to restrict MEHKOs within their jurisdictions. Rather than clarifying the existing ambiguity in the law and concerns that cities had over land use, the proposed urgency bill favor s state preemption. Specifically, the bill states that the county health departments may authorize the permitting of MEHKOs in the unincorporated areas and within incorporated cities and, once a county opts-in, cities within the county cannot opt-out. County health officials are thus urging cities with a stake in the issue to voice their concerns now. The urgency bill to amend the existing law is in the final stages of its legislative cycle. The bill will be heard in Senate Appropriations when the Legislature comes back from its summer recess (August 12, 2019) and, if approved, the bill goes to the Senate floor. If approved by a 2/3 vote of the Senate, it would take effect immediately upon signature from Governor Newsom. The bill would:  Clarify the conditions for a city or county to permit MEHKOs within its jurisdiction. Most importantly, it would require cities to accept MEHKOs if a county allows them.  Amend the inspections and food safety standards which are applicable to MEHKOs.  Disallow MEHKOs from being able to cater food or use the word “catering” in their advertisements.  Ban third-party delivery services, such as Uber Eats and GrubHub, from delivering food which is prepared by MEHKOs to customers.  Clarify the inspection process for MEHKOs.  Clarify the requirements for the use of Internet intermediaries. DISCUSSION AB 626 initially attempted to give cities “full discretion” to authorize the permitting of MEHKOs; however, it stipulated that if a County opts-in to the program, the permit is valid in any city within the county, even if that city has enacted a prohibition. When the urgency bill AB 377 was created to make minor changes to the original bill in order to provide for more regulatory clarity, it did not provide an opt-out provision (as requested by stakeholders) for local jurisdictions, including cities, and still gave counties “full discretion” over permitting MEHKOs. Since some San Gabriel Valley cities, including Arcadia, have expressed concerns with both AB 626 and AB 377, the San Gabriel Valley Council of Government (“SGVCOG”) is encouraging cities to oppose AB 377, unless it is amended to include an opt -out provision for local jurisdictions. Giving “full discretion” to counties discounts cities’ role in the permitting process even though MEHKOs will have a n impact on the subject city of their location. Zoning and land use controls are one of the most basic local rights provided in the California Constitution and AB 377 attempts to preempt that right. Resolution No. 7262 Opposing AB 377 - MEHKOs August 6, 2019 Page 4 of 4 The City Attorney’s office has drafted a letter to be signed by the Mayor declaring the City’s opposition to AB 377 – refer to Attachment No. 2. The letter would be sent to any committees hearing this measure as well as the entire legislature, if AB 377 advances to a full floor vote. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impac t on the environment. Therefore, this matter is exempt under CEQA. FISCAL IMPACT There are minor costs associated with drafting and transmitting letters to the Legislature. Sufficient funds are available to accommodate these costs . RECOMMENDATION It is recommended that the City Council adopt Resolution No. 7262 opposing Assembly Bill 377 (Garcia), related to permitting and regulation of Microenterprise Home Kitchen Operations (“MEHKOs”), unless amended, and authorizing the Mayor to sign a letter of opposition on behalf of the City. Attachment No. 1 - Resolution No. 7262 Attachment No. 2 - A Mayor’s Letter in Opposition of AB 377(Garcia) Attachment No. 3 - Assembly Bill 677 Attachment No. 4 - Assembly Bill 377 AMENDED IN ASSEMBLY MARCH 20, 2019 california legislature—2019–20 regular session ASSEMBLY BILL No. 677 Introduced by Assembly Member Choi (Coauthor: Assembly Member Voepel) February 15, 2019 An act to amend Section 8904 of, and to repeal and add Section 8919 of, the Family Code, relating to intercountry adoption. legislative counsel’s digest AB 677, as amended, Choi. Intercountry adoption finalized in a foreign country. Existing law generally provides for the adoption of a child native to a foreign country by a prospective adoptive parent or parents who are California residents that is either finalized in another country or this state. Existing law requires a licensed adoption agency facilitating an intercountry adoption that will be finalized in a foreign country to provide specific services that include certification to the federal government as to whether this state’s intercountry adoption requirements have been met. Existing law requires a resident of the state who adopts a child through an intercountry adoption that is finalized in a foreign country to readopt the child in this state if it is required by the United States Department of Homeland Security, and requires this readoption to include at least one postplacement in-home visit, a home study report, and final adoption order. Existing law also authorizes a resident of the state who adopts a child through an intercountry adoption that is finalized in a foreign country to readopt the child in this state. This bill would repeal those readoption provisions and would instead require an adoptive parent, or if an adoptive parent fails to do so, then 98 the adoption agency that facilitated the adoption, to file a petition to readopt within specified deadlines to establish a record by which an adoptee can prove the facts of the foreign adoption. The bill would require the petition to include, among other things, a report from at least one postplacement home visit by an intercountry adoption agency or a contractor of that agency licensed to provide intercountry adoption services in the state. The bill would require the clerk of the court to submit an order granting the petition to the State Registrar, would require the State Registrar to issue a delayed registration of birth, as specified, and would authorize an adoptive parent to obtain a California birth certificate for that child. This bill would require a court that finds a child may be the subject of human trafficking or specified types of abuse to notify all appropriate authorities. This bill would, if a licensed adoption agency has a written agreement for which postadoption services have been paid, require the licensed adoption agency to provide those services, and would also make technical, nonsubstantive changes to the other services a licensed adoption agency facilitating an intercountry adoption is required to provide. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 8904 of the Family Code is amended to line 2 read: line 3 8904. For an intercountry adoption that will be finalized in a line 4 foreign country, the licensed adoption agency shall provide all of line 5 the following services: line 6 (a)  Assessment of the suitability of the applicant’s home. line 7 (b)  Certification to the United States Citizenship and line 8 Immigration Services that this state’s intercountry adoption line 9 requirements have been met. line 10 (c)  Readoption services as required by the United States line 11 Citizenship and Immigration Services. line 12 (d)  Postadoption services pursuant to any written agreement line 13 between the licensed adoption agency and any other person or line 14 entity for which the postadoption services have been paid. line 15 SEC. 2. Section 8919 of the Family Code is repealed. 98 — 2 — AB 677 line 1 SEC. 3. Section 8919 is added to the Family Code, to read: line 2 8919. (a)  In order to establish a record by which an adoptee line 3 can prove the facts of the foreign adoption, a state resident who line 4 has finalized an intercountry adoption in a foreign country shall line 5 file the petition to readopt within the earlier of 60 days of the line 6 adoptee’s entry into the United States or the adoptee’s 16th line 7 birthday. The petition shall include all of the following: line 8 (1)  A certified or otherwise official copy of the foreign decree, line 9 order, or certification of adoption that reflects finalization of the line 10 adoption in the foreign country. line 11 (2)  A certified or otherwise official copy of the child’s foreign line 12 birth certificate. line 13 (3)  A certified translation of all documents described in this line 14 subdivision that are not written in English. The court shall accept line 15 the certified translation, if any, that was completed abroad for line 16 purposes of obtaining the child’s visa or passport. line 17 (4)  Proof that the child was granted lawful entry into the United line 18 States as an immediate relative of the adoptive parent or parents. line 19 (5)  A report from at least one postplacement home visit by an line 20 intercountry adoption agency or a contractor of that agency licensed line 21 to provide intercountry adoption services in the State of California. line 22 (6)  A copy of the home study report previously completed for line 23 the international finalized adoption by an adoption agency line 24 authorized to provide intercountry adoption services pursuant to line 25 Section 8900. An update of the home study report shall not be line 26 required for the court to grant the petition for domestication of the line 27 foreign adoption decree or readoption. line 28 (b)  A readoption order shall not be granted unless the court line 29 receives a copy of the reports listed in paragraphs (5) and (6) of line 30 subdivision (a). The court shall consider the postplacement visit line 31 or visits and the previously completed home study when deciding line 32 whether to grant or deny the petition for readoption. line 33 (c)  If an adoptive parent who has adopted a child through an line 34 intercountry adoption that is finalized in a foreign country fails to line 35 file a petition pursuant to this section by the earlier of 60 days of line 36 the child’s entry into the United States or the child’s 16th birthday line 37 or fails to provide a copy of the petition to each adoption agency line 38 that provided the adoption services to the adoptive parent, then line 39 the adoption agency that facilitated the adoption shall file a petition line 40 within 90 days of the child’s entry into the United States, and shall 98 AB 677 — 3 — line 1 provide a file-marked copy of the petition to the adoptive parent line 2 and to any other adoption agency that provided services to the line 3 adoptive parent within five business days of filing. An adoptive line 4 parent shall be liable to the adoption agency for all costs and fees line 5 incurred as a result of good faith actions taken by the adoption line 6 agency to fulfill its requirement pursuant to this subdivision. If the line 7 adoption agency fails to file a petition as required by this line 8 subdivision, the department may take appropriate disciplinary line 9 action against the adoption agency if it is licensed in the State of line 10 California and the department has actual or constructive knowledge line 11 that the petition was not filed. line 12 (d)  If the court finds that the child may be the subject of human line 13 trafficking or may be a child who is described in Section 300 of line 14 the Welfare and Institutions Code, the court shall, in accordance line 15 with existing law, notify all appropriate authorities. line 16 (e)  Within 10 business days, the clerk of the court shall submit line 17 to the State Registrar the order granting the petition to readopt. line 18 Upon receipt, the State Registrar shall issue a delayed registration line 19 of birth in accordance with Section 102695 of the Health and Safety line 20 Code that lists the adoptive parent or parents as the child’s legal line 21 parent or parents. line 22 (f)  A state resident who has adopted a child through an line 23 intercountry adoption that is finalized in a foreign country may line 24 obtain a birth certificate for that child pursuant to Section 102635 line 25 or 103450 of the Health and Safety Code. O 98 — 4 — AB 677 AMENDED IN SENATE MAY 20, 2019 AMENDED IN ASSEMBLY MARCH 25, 2019 AMENDED IN ASSEMBLY MARCH 11, 2019 california legislature—2019–20 regular session ASSEMBLY BILL No. 377 Introduced by Assembly Member Members Eduardo Garcia and Mayes February 5, 2019 An act to amend Sections 114367.1, 114367.2, 114367.5, and 114367.6 of, and to repeal and add Sections 114367 and 114367.3 of, the Health and Safety Code, relating to retail food facilities, and declaring the urgency thereof, to take effect immediately. legislative counsel’s digest AB 377, as amended, Eduardo Garcia. Microenterprise home kitchen operations. (1)  The California Retail Food Code (code) authorizes the governing body of a city, county, or city and county, by ordinance or resolution, to permit microenterprise home kitchen operations if certain conditions are met. The code requires microenterprise home kitchen operations, as a restricted food service facility, to meet specified food safety standards. A violation of the code is generally a misdemeanor. This bill would modify the conditions for a city, county, or city and county to permit microenterprise home kitchen operations within its jurisdiction. The bill would modify the inspections and food safety standards applicable to microenterprise home kitchen operations. The bill would prohibit an internet food service intermediary or a microenterprise home kitchen operation from using the word “catering” 96 or any variation of that word in a listing or advertisement of a microenterprise home kitchen operation’s offer of food for sale. The bill would require a microenterprise home kitchen operation to include specific information, including its permit number, in its advertising. The bill would prohibit a third-party delivery service from delivering food produced by a microenterprise home kitchen operation. By expanding the scope of a crime for a violation of the code, this bill would impose a state-mandated local program. (2)  The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (3)  This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2⁄3. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 114367 of the Health and Safety Code line 2 is repealed. line 3 SEC. 2. Section 114367 is added to the Health and Safety Code, line 4 to read: line 5 114367. The governing body of a city, county, or city and line 6 county that is designated as the enforcement agency, as defined line 7 in Section 113773, may authorize, by ordinance or resolution, line 8 within its jurisdiction the permitting of microenterprise home line 9 kitchen operations in accordance with this chapter. If a governing line 10 body of a city, county, or city and county authorizes the permitting line 11 of microenterprise home kitchen operations, the authorization shall line 12 apply to all areas within its jurisdiction, including being applicable line 13 to all cities within a county that authorizes microenterprise home line 14 kitchen operations, regardless of whether each city located within line 15 the jurisdiction of the county separately authorizes them. line 16 SEC. 3. Section 114367.1 of the Health and Safety Code is line 17 amended to read: line 18 114367.1. (a)  A microenterprise home kitchen operation, as line 19 defined in Section 113825, shall be considered a restricted food line 20 service facility for purposes of, and subject to all applicable 96 — 2 — AB 377 line 1 requirements of, Chapter 1 (commencing with Section 113700) to line 2 Chapter 9 (commencing with Section 114265), inclusive, and line 3 Chapter 13 (commencing with Section 114380), except as line 4 otherwise provided in this chapter. line 5 (b)  A microenterprise home kitchen operation shall be exempt line 6 from all of the following provisions: line 7 (1)  Handwashing facilities requirements, as required in Section line 8 113953, provided that a handwashing sink is supplied with warm line 9 water and located in the toilet room and supplied, as specified in line 10 Section 113953.2. line 11 (2)  Any provision in this part relating to sinks, warewashing line 12 machines, and manual or machine sanitation, including, but not line 13 limited to, Sections 114099, 114099.2, 114099.4, 114101.1, line 14 114101.2, 114103, 114107, 114123, 114125, 114163, and 114279, line 15 provided that all of the following conditions are met: line 16 (A)   Utensils and equipment are able to be properly cleaned and line 17 sanitized. line 18 (B)  The sink in a microenterprise home kitchen operation has line 19 hot and cold water and is fully operable. line 20 (C)  If a dishwasher is used, it shall be operated in accordance line 21 with the manufacturer’s specifications. line 22 (3)  Prohibition on the presence of persons unnecessary to the line 23 food facility operation in the food preparation, food storage, or line 24 warewashing areas, as specified in Section 113945.1, provided line 25 that the permitholder takes steps to avoid any potential line 26 contamination to food, clean equipment, utensils, and unwrapped line 27 single-service and single-use articles and prevents a person line 28 suffering from symptoms associated with acute gastrointestinal line 29 illness or person known to be infected with a communicable disease line 30 that is transmissible through food to enter the food preparation line 31 area while food is being prepared as part of a microenterprise home line 32 kitchen operation. line 33 (4)  No smoking sign posting requirements, as specified in line 34 Section 113978. line 35 (5)  Limitations on employee consumption of food, drink, or line 36 tobacco outside of designated areas, as specified in Sections 113977 line 37 and 114256, provided that the permitholder takes steps to avoid line 38 any potential contamination to food, clean equipment, utensils, line 39 and unwrapped single-service and single-use articles and prevents line 40 a person suffering from symptoms associated with acute 96 AB 377 — 3 — line 1 gastrointestinal illness or person known to be infected with a line 2 communicable disease that is transmissible through food to enter line 3 the food preparation area while food is being prepared as part of line 4 a microenterprise home kitchen operation. line 5 (6)  Limitations on consumer access to the food facility through line 6 food preparation areas, as specified in Section 113984.1, provided line 7 that the permitholder takes steps to avoid any potential line 8 contamination to food, clean equipment, utensils, and unwrapped line 9 single-service and single-use articles and prevents a person line 10 suffering from symptoms associated with acute gastrointestinal line 11 illness or person known to be infected with a communicable disease line 12 that is transmissible through food to enter the food preparation line 13 area while food is being prepared as part of a microenterprise home line 14 kitchen operation. line 15 (7)  Display guard, cover, and container requirements, as line 16 specified in Section 114060, provided that any food on display line 17 that is not protected from the direct line of a consumer’s mouth line 18 by an effective means is not served or sold to any subsequent line 19 consumer. line 20 (8)  Requirements to provide clean drinking cups and tableware line 21 for second portions and beverage refills, as specified in Section line 22 114075. line 23 (9)  Requirements pertaining to the characteristics and line 24 certification of utensils and equipment, as specified in Sections line 25 114130 and 114139, provided that utensils and equipment are line 26 designed to retain their characteristic qualities under normal use line 27 conditions. line 28 (10)  Requirements pertaining to the characteristics, construction, line 29 and multiuse of food-contact and nonfood-contact surfaces, as line 30 specified in Sections 114130.3 and 114130.4, provided that food line 31 contact surfaces are smooth, easily cleanable, and in good repair. line 32 (11)  Requirements pertaining to the characteristics, construction, line 33 and disassembly of clean in place (CIP) equipment, as specified line 34 in Section 114130.5. line 35 (12)  Limitations on the use of wood as a food contact surface line 36 and in connection with other equipment, as specified in Section line 37 114132, provided that hard maple or equivalent wood is approved line 38 for use in direct contact with food during preparation. line 39 (13)  Any provision in this part relating to ventilation, including, line 40 but not limited to, Article 2 (commencing with Section 114149) 96 — 4 — AB 377 line 1 of Chapter 6, provided that gases, odors, steam, heat, grease, line 2 vapors, and smoke are able to escape from the kitchen. line 3 (14)  Requirements that cold or hot holding equipment used for line 4 potentially hazardous food be equipped with integral or line 5 permanently affixed temperature measuring device or product line 6 mimicking sensors, as specified in subdivision (c) of Section line 7 114157. line 8 (15)  Requirements pertaining to the installation of fixed, line 9 floor-mounted, and table-mounted equipment, as specified in line 10 Section 114169. line 11 (16)  Dedicated laundry facility requirements, as specified in line 12 Section 114185.5, provided that linens used in connection with line 13 the microenterprise home kitchen operation shall be laundered line 14 separately from the household and other laundry. line 15 (17)  Requirements pertaining to water, plumbing, drainage, and line 16 waste, as specified in Sections 114193, 114193.1, and 114245.7. line 17 (18)  Any requirement that a microenterprise home kitchen line 18 operation have more than one toilet facility or that access to the line 19 toilet facility not require passage through the food preparation, line 20 food storage, or utensil washing areas, including, but not limited line 21 to, the requirements specified in Sections 114250 and 114276. line 22 (19)  Light intensity, light source, and lightbulb requirements, line 23 as specified in Sections 114252 and 114252.1, provided that food line 24 preparation areas are well lighted by natural or artificial light line 25 whenever food is being prepared. line 26 (20)  Requirements to provide and use lockers, storage facilities, line 27 and designated dressing areas, and that food facility premises be line 28 free of litter and items that are unnecessary to the operation, as line 29 specified in Sections 114256.1 and 114257.1, provided that line 30 personal effects and clothing not ordinarily found in a home kitchen line 31 are placed or stored away from food preparation areas and dressing line 32 takes place outside of the kitchen. line 33 (21)  Limitations on the presence and handling of animals, such line 34 as domestic, service, or patrol animals, as specified in Sections line 35 114259.4 and 114259.5, provided that all animals are kept outside line 36 of the kitchen during food service and preparation. line 37 (22)  Requirements pertaining to floor, wall, and ceiling surfaces, line 38 as specified in Sections 114268, 114269, and 114271, provided line 39 that the floor, wall, and ceiling surfaces of the kitchen, storage, line 40 and toilet areas are smooth, of durable construction, and easily 96 AB 377 — 5 — line 1 cleanable with no limitations on the use of wood, tile, and other line 2 nonfiber floor surfaces ordinarily used in residential settings. line 3 (23)  Any local evaluation or grading system for food facilities, line 4 as authorized by Section 113709. line 5 (24)  All prohibitions and limitations on the use of a kitchen in line 6 a private home as a food facility, including, but not limited to, line 7 prohibitions and limitations specified in Section 114285, provided line 8 that food is not prepared in designated sleeping quarters. Open line 9 kitchens adjacent to living and sleeping areas, kitchens in line 10 efficiency, studio, and loft-style residences, and kitchens without line 11 doors at all points of ingress and egress may be used in line 12 microenterprise home kitchen operations. line 13 (25)  Planning and permitting provisions of Sections 114380 line 14 and 114381.2. line 15 (c)  A microenterprise home kitchen operation may operate an line 16 open-air barbecue or outdoor wood-burning oven, pursuant to the line 17 requirements of Section 114143. line 18 (d)  The operator of a microenterprise home kitchen operation line 19 shall successfully pass an approved and accredited food safety line 20 certification examination, as specified in Section 113947.1. line 21 (e)  Any individual, other than the operator, who is involved in line 22 the preparation, storage, or service of food in a microenterprise line 23 home kitchen operation shall be subject to the food handler card line 24 requirements specified in Section 113948. line 25 (f)  A microenterprise home kitchen operation shall only offer line 26 for sale or sell food that was prepared during a food demonstration line 27 or preparation event to a consumer who was present at that food line 28 demonstration or preparation event. line 29 SEC. 4. Section 114367.2 of the Health and Safety Code is line 30 amended to read: line 31 114367.2. (a)  A microenterprise home kitchen operation shall line 32 not be open for business unless it has obtained a permit issued line 33 from the enforcement agency. line 34 (b)  The department shall post on its internet website the line 35 requirements for the permitting of a microenterprise home kitchen line 36 operation, pursuant to this chapter and any ordinance, resolution, line 37 or rules adopted by any city, county, or city and county, that has line 38 authorized the permitting of microenterprise home kitchen line 39 operations, which shall be written at a high school level. 96 — 6 — AB 377 line 1 (c)  The applicant shall submit to the enforcement agency written line 2 standard operating procedures that include all of the following line 3 information: line 4 (1)  All food types or products that will be handled. line 5 (2)  The proposed procedures and methods of food preparation line 6 and handling. line 7 (3)  Procedures, methods, and schedules for cleaning utensils, line 8 equipment, and for the disposal of refuse. line 9 (4)  How food will be maintained at the required holding line 10 temperatures, as specified in Section 113996, pending pickup by line 11 consumer or during delivery. line 12 (5)  Days and times that the home kitchen may potentially be line 13 utilized as a microenterprise home kitchen operation. The stated line 14 days and times are not binding on the permitholder and shall be line 15 used for information purposes only. line 16 (d)  (1)  The enforcement agency shall issue a permit after an line 17 initial inspection has determined that the proposed microenterprise line 18 home kitchen operation and its method of operation comply with line 19 the requirements of this chapter. line 20 (2)  An enforcement agency shall not require a microenterprise line 21 home kitchen operation to comply with food safety requirements line 22 that are different from, or in addition to, the requirements of this line 23 chapter. line 24 (e)  For purposes of permitting, the permitted area includes the line 25 home kitchen, onsite consumer eating area, food storage, utensils line 26 and equipment, toilet room, janitorial or cleaning facilities, and line 27 refuse storage area. Food operations shall not be conducted outside line 28 of the permitted areas. line 29 (f)  An enforcement agency may require a microenterprise home line 30 kitchen operation to renew its permit annually. line 31 (g)  A permit, once issued, is nontransferable. A permit shall be line 32 valid only for the person and location specified by that permit, line 33 and, unless suspended or revoked for cause, for the time period line 34 indicated. line 35 (h)  The permit, or an accurate copy thereof, shall be retained line 36 by the operator onsite and displayed at all times the microenterprise line 37 home kitchen operation is in operation. line 38 (i)  An enforcement agency may collect a fee for the issuance line 39 of a permit pursuant to this chapter in an amount that does not 96 AB 377 — 7 — line 1 exceed the reasonable administrative costs by the enforcement line 2 agency in issuing the permit. line 3 SEC. 5. Section 114367.3 of the Health and Safety Code is line 4 repealed. line 5 SEC. 6. Section 114367.3 is added to the Health and Safety line 6 Code, to read: line 7 114367.3. (a)  Notwithstanding any other law, a microenterprise line 8 home kitchen operation shall only be subject to the three following line 9 types of inspections by the enforcement agency: line 10 (1)  A routine inspection for the purpose of allowing the line 11 enforcement agency to observe the permitholder engage in the line 12 usual activities of a microenterprise home kitchen operation, line 13 including, but not limited to, active food preparation. The line 14 enforcement agency shall provide notice to a permitholder before line 15 a routine inspection and shall conduct the routine inspection at a line 16 mutually agreeable date and time. A microenterprise home kitchen line 17 operation shall not be subject to more than one routine inspection line 18 within 12 months. This paragraph shall not be deemed to require line 19 the enforcement agency to conduct a routine inspection. line 20 (2)  An investigation inspection for the purpose of allowing the line 21 enforcement agency to perform an inspection when the enforcement line 22 agency has just cause that adulterated or otherwise unsafe food line 23 has been produced or served by the microenterprise home kitchen line 24 operation or that the permitholder has otherwise violated this part. line 25 One or more consumer complaints may constitute just cause for line 26 an investigation inspection. The enforcement agency shall provide line 27 notice to a permitholder before an investigation inspection and line 28 shall conduct the investigation inspection at a mutually agreeable line 29 date and time. line 30 (3)  An emergency inspection for the purpose of allowing the line 31 enforcement agency to perform a limited inspection when the line 32 enforcement agency has just cause that the microenterprise home line 33 kitchen operation poses a serious hazard or immediate threat to line 34 public health. To the extent that notice of an emergency inspection line 35 is reasonable under the circumstances, the enforcement agency line 36 shall provide notice to a permitholder before an emergency line 37 inspection. The scope of emergency inspection shall be limited in line 38 duration and scope to address the facts giving just cause that the line 39 microenterprise home kitchen operation poses a serious hazard or line 40 immediate threat to public health. 96 — 8 — AB 377 line 1 (b)  The enforcement agency shall only inspect the permitted line 2 area of the microenterprise home kitchen operation for the purpose line 3 of enforcing or administering this part. line 4 (c)  The enforcement agency may seek recovery from a line 5 microenterprise home kitchen operation of an amount that does line 6 not exceed the enforcement agency’s reasonable costs of inspecting line 7 the microenterprise home kitchen operation for compliance with line 8 this part if the microenterprise home kitchen operation is found to line 9 be in violation of this part. line 10 SEC. 7. Section 114367.5 of the Health and Safety Code is line 11 amended to read: line 12 114367.5. (a)  A person delivering food on behalf of a line 13 microenterprise home kitchen operation with a permit issued line 14 pursuant to Section 114367.2 shall be an employee of the line 15 microenterprise home kitchen operation or a family member or line 16 household member of the permitholder. line 17 (b)  Food produced in a microenterprise home kitchen operation line 18 shall not be delivered by a third-party delivery service. line 19 SEC. 8. Section 114367.6 of the Health and Safety Code is line 20 amended to read: line 21 114367.6. (a)  An internet food service intermediary that lists line 22 or promotes a microenterprise home kitchen operation on its line 23 internet website or mobile application shall meet all of the line 24 following requirements: line 25 (1)  Be registered with the department. A registration, once line 26 issued, is nontransferable. A registration shall be valid only for line 27 the person and type of business specified by that registration, and line 28 unless suspended or revoked for cause by the department. line 29 (2)  Prior to the listing or publication of a microenterprise home line 30 kitchen operation’s offer of food for sale, clearly and conspicuously line 31 post on its internet website or mobile application the requirements line 32 for the permitting of a microenterprise home kitchen specified in line 33 this chapter, which shall be written at the high school level and be line 34 provided by the department. line 35 (3)  Clearly and conspicuously post on its internet website or line 36 mobile application the fees associated with using its platform in a line 37 manner that allows both the consumer and the microenterprise line 38 home kitchen operation to see and understand the amount being line 39 charged for the services provided by the internet food service line 40 intermediary. The internet food service intermediary shall notify 96 AB 377 — 9 — line 1 the microenterprise home kitchen operation of any changes to these line 2 fees exceeding a 2-percent increase in writing and no later than line 3 one month before the changes take effect. line 4 (4)  Clearly and conspicuously post on its internet website or line 5 mobile application whether or not it has liability insurance that line 6 would cover any incidence arising from the sale or consumption line 7 of food listed or promoted on its internet website or mobile line 8 application. line 9 (5)  Provide a dedicated field on its platform for a microenterprise line 10 home kitchen operation to post the permit number and the name line 11 of the county of the enforcement agency that issued the permit. line 12 (6)  Clearly and conspicuously post on its internet website or line 13 mobile application how a consumer can contact the internet food line 14 service intermediary through its internet website or mobile line 15 application if the consumer has a food safety or hygiene complaint line 16 and a link to the department’s internet website that contains line 17 information for how to file a complaint with the enforcement line 18 agency. line 19 (7)  Submit the name and permit number of a microenterprise line 20 home kitchen operation to the enforcement agency that issued the line 21 permit to the microenterprise home kitchen operation if the internet line 22 food service intermediary receives, through its internet website or line 23 mobile application, three or more unrelated individual food safety line 24 or hygiene complaints in a calendar year from consumers that have line 25 made a purchase through its internet website or mobile application. line 26 The internet food service intermediary shall submit this information line 27 to the enforcement agency within two weeks of the third complaint line 28 received. line 29 (8)  If it is notified by the enforcement agency of significant line 30 food safety related complaints from a verified consumer that has line 31 made a purchase through its internet website or mobile application, line 32 submit to the enforcement agency the name and permit number of line 33 microenterprise home kitchen operation where the food was line 34 purchased, and a list of consumers who purchased food on the line 35 same day from that microenterprise home kitchen operation through line 36 its internet website or mobile application. line 37 (9)  Prior to the listing or publication of a microenterprise home line 38 kitchen operation’s offer of food for sale, obtain consent from the line 39 microenterprise home kitchen operation to make the disclosures line 40 to government entities required pursuant to this section. 96 — 10 — AB 377 line 1 (10)  Shall not permit the use of the word “catering” or any line 2 variation of that word in a listing or publication of a line 3 microenterprise home kitchen operation’s offer of food for sale. line 4 (11)  Shall not use, or knowingly facilitate the use of, a line 5 third-party delivery service for food produced by the line 6 microenterprise home kitchen operation. line 7 (b)  For purposes of this chapter, an “internet food service line 8 intermediary” means an entity that provides a platform on its line 9 internet website or mobile application through which a line 10 microenterprise home kitchen operation may choose to offer food line 11 for sale and from which the internet food service intermediary line 12 derives revenues, including, but not limited to, revenues from line 13 advertising and fees for services offered to a microenterprise home line 14 kitchen operation. Services offered by an internet food service line 15 intermediary to a microenterprise home kitchen operation may line 16 include, but are not limited to, allowing a microenterprise home line 17 kitchen operation to advertise its food for sale and providing a line 18 means for potential consumers to arrange payment for the food, line 19 whether the consumer pays directly to the microenterprise home line 20 kitchen operation or to the internet food service intermediary. line 21 Merely publishing an advertisement for the microenterprise home line 22 kitchen operation or food cooked therein does not make the line 23 publisher an internet food service intermediary. line 24 (c)  (1)  A microenterprise home kitchen operation that advertises line 25 to the public, including, but not limited to, advertising by website, line 26 internet, social media platform, newspaper, newsletter, or other line 27 public announcement, shall include all of the following within the line 28 advertisement: line 29 (A)  Name of the enforcement agency that issued the permit. line 30 (B)  Permit number. line 31 (C)  Statement that the food prepared is “Made in a Home line 32 Kitchen” in a clear and conspicuous font and location within a line 33 written advertisement and an audible and comprehensible manner line 34 in a verbal advertisement. line 35 (2)  A microenterprise home kitchen operation shall not use the line 36 word “catering” or any variation of that word in an advertisement line 37 relating to the microenterprise home kitchen operation’s offer of line 38 food for sale. line 39 SEC. 9. No reimbursement is required by this act pursuant to line 40 Section 6 of Article XIII B of the California Constitution because 96 AB 377 — 11 — line 1 the only costs that may be incurred by a local agency or school line 2 district will be incurred because this act creates a new crime or line 3 infraction, eliminates a crime or infraction, or changes the penalty line 4 for a crime or infraction, within the meaning of Section 17556 of line 5 the Government Code, or changes the definition of a crime within line 6 the meaning of Section 6 of Article XIII B of the California line 7 Constitution. line 8 SEC. 10. This act is an urgency statute necessary for the line 9 immediate preservation of the public peace, health, or safety within line 10 the meaning of Article IV of the California Constitution and shall line 11 go into immediate effect. The facts constituting the necessity are: line 12 To ensure a uniform implementation of the health and food safety line 13 responsibilities of microenterprise home kitchen operations line 14 throughout the state, it is necessary that this act take effect line 15 immediately. O 96 — 12 — AB 377