California Health and Safety Code Section 113758
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California Laws > Health and Safety Code > California Health and Safety Code Section 113758
113758. (a) "Cottage food operation" means an enterprise that has
not more than the amount in gross annual sales that is specified in
this subdivision, is operated by a cottage food operator, and has not
more than one full-time equivalent cottage food employee, not
including a family member or household member of the cottage food
operator, within the registered or permitted area of a private home
where the cottage food operator resides and where cottage food
products are prepared or packaged for direct, indirect, or direct and
indirect sale to consumers pursuant to this part. In 2013, the
enterprise shall not have more than thirty-five thousand dollar
($35,000) in gross annual sales in the calendar year. In 2014, the
enterprise shall not have more than forty-five thousand dollars
($45,000) in gross annual sales in the calendar year. Commencing in
2015, and each subsequent year thereafter, the enterprise shall not
have more than fifty thousand dollars ($50,000) in gross annual sales
in the calendar year. A cottage food operation includes both of the
(1) A "Class A" cottage food operation, which is a cottage food
operation that may engage only in direct sales of cottage food
products from the cottage food operation or other direct sales venues
described in paragraph (4) of subdivision (b).
(2) A "Class B" cottage food operation, which is a cottage food
operation that may engage in both direct sales and indirect sales of
cottage food products from the cottage food operation, from direct
sales venues described in paragraph (4) of subdivision (b), from
offsite events, or from a third-party retail food facility described
in paragraph (5) of subdivision (b).
(b) For purposes of this section, the following definitions shall
(1) "Cottage food employee" means an individual, paid or
volunteer, who is involved in the preparation, packaging, handling,
and storage of a cottage food product, or otherwise works for the
cottage food operation. An employee does not include an immediate
family member or household member of the cottage food operator.
(2) "Cottage food operator" means an individual who operates a
cottage food operation in his or her private home and is the owner of
the cottage food operation.
(3) "Cottage food products" means nonpotentially hazardous foods,
including foods that are described in Section 114365.5 and that are
prepared for sale in the kitchen of a cottage food operation.
(4) "Direct sale" means a transaction within the state between a
cottage food operation operator and a consumer, where the consumer
purchases the cottage food product directly from the cottage food
operation. Direct sales include, but are not limited to, transactions
at holiday bazaars or other temporary events, such as bake sales or
food swaps, transactions at farm stands, certified farmers' markets,
or through community-supported agriculture subscriptions, and
transactions occurring in person in the cottage food operation.
(5) "Indirect sale" means an interaction between a cottage food
operation, a third-party retailer, and a consumer, where the consumer
purchases cottage food products made by the cottage food operation
from a third-party retailer that holds a valid permit issued pursuant
to Section 114381. Indirect sales include, but are not limited to,
sales made to retail shops or to retail food facilities where food
may be immediately consumed on the premises.
(6) "Private home" means a dwelling, including an apartment or
other leased space, where individuals reside.
(7) "Registered or permitted area" means the portion of a private
home that contains the private home's kitchen used for the
preparation, packaging, storage, or handling of cottage food products
and related ingredients or equipment, or both, and attached rooms
within the home that are used exclusively for storage.
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Last modified: March 17, 2014