The Board of Supervisors finds that small business is a vital component of our economy and everyone in Santa Cruz County deserves access to safe food and healthy living conditions. Home-based food service addresses the increased need for small business opportunities but requires evaluation to ensure the food being served is safe and does not lead to poor housing conditions in Santa Cruz County's limited housing stock.
The purpose of this chapter is to establish local rules and regulations for a two-year microenterprise home kitchen operation (MEHKO) pilot program in Santa Cruz County. This two-year MEHKO pilot program will help the County of Santa Cruz evaluate if a MEHKO program is beneficial to the community.
This chapter is not intended to conflict with the California Retail Food Code, Part 7 of Division 104 of the California Health and Safety Code, commencing with Section 113700.
(Ord. 5459 § 1, 2024)
The following words and phrases, whenever used in this chapter, shall have the meanings defined herein:
(A) 
"Applicant"
means a resident of the home identified on the MEHKO permit application.
(B) 
"Application" or "health permit application"
means the process of completing the Department's forms, paying the required fees, and participating in a home evaluation as necessary to complete the health permitting process.
(C) 
"California Retail Food Code"
means Part 7 of Division 104 of the California Health and Safety Code, commencing with Section 113700.
(D) 
"Cottage food operation"
means a home-based food service enterprise as defined in Section 113758 of the California Retail Food Code and operated pursuant to Chapter 11.5 of the California Retail Food Code.
(E) 
"Department" or "enforcement agency"
means the Environmental Health Division of the Santa Cruz County Health Services Agency.
(F) 
"Food"
means raw, cooked, or processed edible substance, ice, beverage, an ingredient used or intended for use or for sale in whole or in part for human consumption, and chewing gum.
(G) 
"Food preparation"
means packaging, processing, assembling, portioning, or any operation that changes the form, flavor, or consistency of food, but does not include trimming of produce.
(H) 
"Health permit" or "permit"
means a document issued by the Department that authorizes a person to operate a MEHKO.
(I) 
"Hearing Officer"
means the County Health Officer, the Director of the Department, or their designee.
(J) 
"Home"
means a dwelling that complies with the California Building Code and local building and fire codes. A home is a combination of kitchen, sleeping quarters, bathroom, and general living quarters typically found in a residence. A home does not include garages, workshops, warehouses, outdoor storage unit, and other structures outside the home.
(K) 
"Home evaluation" or "evaluation of the home"
means a determination by the Department to ensure the home meets minimum sanitation standards prior to permitting and operation as a MEHKO.
(L) 
"Inspector"
means an environmental health specialist or environmental health specialist trainee who conducts retail food inspection on behalf of the Department.
(M) 
"Inspection"
means a scheduled site visit where an inspector reviews the MEHKO for compliance with the California Retail Food Code and this chapter.
(N) 
"Microenterprise home kitchen operation"
(MEHKO) means a home-based food service operation as defined by Section 113825 of the California Retail Food Code that is limited to the gross annual sales and operational restrictions in Chapter 11.6 of the California Retail Food Code. The MEHKO is limited to the operator and not more than one full-time equivalent employee that does not include a family member or household members. The MEHKO is limited to the footprint identified as the "permitted area."
In accordance with the California Retail Food Code, a MEHKO is not a catering operation, a temporary food facility, or a mobile food facility as defined in the California Retail Food Code.
(O) 
"Operator"
means the resident of the home that holds the health permit, who is responsible for the MEHKO, and is responsible for maintaining a person in charge of food safety during operation.
(P) 
"Permit denial letter"
means a written letter issued by the Department denying a health permit application.
(Q) 
"Permitted area" or "regulated area"
means the kitchen, an exterior paved area to stage a barbecue, smoker, or wood-burning oven, and in-home storage areas used for the MEHKO. These terms do not include detached accessory buildings, garages, sleeping quarters, enclosed patios or second units.
(R) 
"Person in charge"
means the individual present at a MEHKO who is responsible for the operation of the MEHKO.
(S) 
"Potable water"
means water that meets transient noncommunity water standards under the California Safe Drinking Water Act, including those for total coliform, fecal coliform, and nitrates.
(T) 
"Resident of the home"
means an individual who resides in the home used for the MEHKO on a permanent basis. This definition excludes temporary guests.
(U) 
"Temporary guests"
means individuals who do not reside at the home on a permanent basis.
(V) 
"Violation notice"
means a written letter or report issued by the Department indicating that a violation of this chapter or applicable provisions of the California Retail Food Code has occurred.
(Ord. 5459 § 1, 2024)
(A) 
A health permit from the Department is required prior to operating a MEHKO in the County of Santa Cruz.
(B) 
The applicant must:
(1) 
Be a resident of the home used for the MEHKO.
(2) 
Obtain approval from the property owner to operate the MEHKO.
(3) 
Provide accurate information in the MEHKO health permit application process. A MEHKO health permit may be denied, suspended, or revoked pursuant to SCCC § 7.150.090 if the information on the application is found to be incorrect, incomplete, false, or misleading.
(4) 
Be informed of and acknowledge their responsibility to comply with all applicable laws and regulations applicable to a MEHKO.
(C) 
Only one MEHKO or one cottage food operation (CFO) is allowed per home.
(D) 
MEHKO health permits shall be:
(1) 
Specific to the operator, home, menu, and authorized mode of service.
(2) 
Valid for one year and renewed annually.
(3) 
Conspicuously posted in the home and visible to clients and the inspector while in operation and during inspection.
(E) 
An operator shall renew their MEHKO health permit annually as required or cease operation. An operator shall pay all Department fees incurred, and any administrative penalties imposed prior to renewal. Failure to pay said fees or administrative penalties is ground for a denial of the health permit renewal.
(F) 
An operator who fails to timely renew a MEHKO health permit shall be charged the standard Department late permit fee amount and may be subject to enforcement action as specified in this chapter.
(Ord. 5459 § 1, 2024)
(A) 
MEHKO health permits are nontransferable between individuals, operators, or homes except as noted in subsection (B) of this section.
(B) 
MEHKO health permits can be transferred between spouses and/or domestic partners in the same home.
(Ord. 5459 § 1, 2024)
(A) 
A home with a MEHKO must meet the following minimum criteria as verified through a home evaluation by an inspector:
(1) 
Have the space to accommodate the menu, number of meals, and customers to be served.
(2) 
Provide plumbed water that meets potable water standards in accordance with California Retail Food Code Section 113869. Water sampling of individual wells must:
(a) 
Occur prior to permit approval.
(b) 
Occur at least yearly thereafter to demonstrate compliance.
(c) 
Include testing for total coliform, fecal coliform, and nitrates.
(3) 
Have a fully operable sink that has hot and cold running water.
(4) 
Be plumbed to an approved on-site wastewater treatment system or a public sewer system.
(5) 
Have operable electricity, gas, or propane utility service as required.
(6) 
Have functional and equipped bathroom and handwashing facilities.
(7) 
Be free of vermin and insects that can impact food safety.
(8) 
Have adequate hot and cold holding equipment.
(9) 
Be stocked with a first aid kit.
(10) 
Be equipped or constructed with appropriate ventilation so that cooking smoke, grease, odors, and other particulates are adequately removed from inside the home.
(11) 
Have a minimum of a BC-rated fire extinguisher, or a minimum K-rated fire extinguisher if cooking with grease.
(12) 
Be equipped with carbon monoxide and smoke detectors as required.
(13) 
Have adequate and appropriate refuse storage and disposal.
(B) 
Operators and all those involved in the MEHKO business must comply with applicable provisions of the California Retail Food Code, including but not limited to those regulating employee illness exclusion, training requirements, and general hygiene practices.
(C) 
Operators must adhere to approved meal and gross annual sales maximums per California Retail Food Code Section 113825(a)(8), as it may be amended over time.
(D) 
Operators must be able to provide documentation to demonstrate compliance with gross annual sales and meal limits upon request by the Department or inspector.
(E) 
Outdoor food demonstration, preparation, or handling other than cooking or heating over a Department-approved barbecue, smoker, or wood-burning oven is prohibited.
(F) 
A MEHKO may operate with an open-air barbecue, smoker, or outdoor wood-burning oven if approved by the Department. The barbecue, smoker, or wood-burning oven must be staged on a cleanable floor surface like concrete and be operated in a manner that does not create a fire hazard, general safety hazard, or a food safety concern. No other equipment other than a table for the transitory management of food pulled off the barbecue, smoker, or wood-burning oven may be used outside.
(G) 
The following is not allowed in a MEHKO: vacuum packaging of food; processes that reduce oxygen in a food package; activities that require a hazard analysis critical control point (HACCP) plan as defined by Section 113801 of the California Retail Food Code; service of raw oysters; and production, manufacturing, processing, freezing, or packaging of milk or milk products, including, but not limited to, cheese, ice cream, yogurt, sour cream, and butter.
(H) 
Any MEHKO serving alcohol must do so in compliance with any applicable California Alcohol and Beverage Control licensing statutes, regulations, and requirements.
(I) 
A city business license is required if the MEHKO is located within incorporated cities within the County of Santa Cruz.
(Ord. 5459 § 1, 2024)
(A) 
Outdoor signage and displays advertising the MEHKO are prohibited at the home.
(B) 
Operator may promote their business on the internet, social media, radio, or newspaper. Said advertisements must comply with the following:
(1) 
State the MEHKO holds a permit with the County of Santa Cruz.
(2) 
The permit number.
(3) 
A conspicuous statement that the food is "Made in a Home Kitchen."
(4) 
The word "catering" or any variation of the word shall not be used in the advertisement.
(Ord. 5459 § 1, 2024)
(A) 
Individuals who are capable of transmitting illness via food must be excluded from food service. In accordance with the California Retail Food Code and under the Santa Cruz County Health Officer's authority, a MEHKO suspected of or subject to illness transmission may by ordered to cease operation until such time as approved by the Department and/or the County Health Officer. Individuals diagnosed with the following illnesses are subject to exclusion:
(1) 
Salmonella typhi.
(2) 
Salmonella spp.
(3) 
Shigella spp.
(4) 
Entamoeba histolytica.
(5) 
Enterohemorrhagic or shiga toxin producing Escherichia coli.
(6) 
Hepatitis A virus.
(7) 
Norovirus.
(8) 
Other communicable diseases that are transmissible through food.
(B) 
An operator must notify the Department in the following cases:
(1) 
When a household member or individual involved in operation of the MEHKO has been diagnosed with one of the illnesses stated in subsection (A) of this section.
(2) 
When two or more household members or individuals involved in operation of the MEHKO are concurrently experiencing symptoms associated with a gastrointestinal illness in accordance with California Retail Food Code Section 113949.5.
(3) 
When the operator is informed that two or more customers have been diagnosed with one of the illnesses in subsection (A) of this section or are concurrently experiencing symptoms associated with gastrointestinal illness.
(Ord. 5459 § 1, 2024)
(A) 
Inspection, investigation, and enforcement shall occur pursuant to Articles 1 and 2 of Chapter 13 of the California Retail Food Code.
(B) 
Nothing in this chapter or the California Retail Food Code supersedes or limits the investigative and enforcement authority of the County of Santa Cruz with respect to public nuisance violations.
(Ord. 5459 § 1, 2024)
(A) 
Violation Notices and Permit Denial Letters.
(1) 
Upon determining the existence of any of the grounds for the denial, suspension, or revocation of a MEHKO health permit pursuant to this chapter, the Department shall issue to the applicant or operator a violation notice or permit denial letter. The violation notice or permit denial letter shall be provided by personal service or by first class mail, postage prepaid, including a copy of the affidavit or certificate of mailing.
(2) 
The violation notice or permit denial letter shall state all grounds upon which the denial, revocation, or suspension is based.
(3) 
A violation notice shall specify the effective date of the action.
(4) 
A violation notice or permit denial letter shall inform the applicant or operator that the denial, suspension, or revocation shall become final unless the applicant or operator files a written request for administrative review within 20 calendar days of the date of service of the violation notice or permit denial letter.
(B) 
An operator can remedy a violation notice by correcting the condition and requesting verification of the corrective action by the Department. The Department shall issue an invoice for the time and costs accrued verifying the corrective action. Verification of corrective action is required to reinstate a MEHKO health permit.
(C) 
An applicant or operator may appeal their denial, suspension, or revocation by filing a written notice of appeal. The written notice of appeal must be filed with the Department within 20 calendar days of the service of the denial, suspension, or revocation notice. Failure to timely file a written notice of appeal within this time period shall be deemed a waiver of the right to challenge the determination and a failure to exhaust administrative remedies. The notice of appeal shall include the following information and fee payment:
(1) 
A brief statement noting that the applicant or operator is appealing the action.
(2) 
The name, business name (if applicable), and contact information for the individual submitting the appeal.
(3) 
A brief statement of the material facts in support of the appeal.
(4) 
An email address and address to be used to receive notice of any additional proceedings or to receive administrative penalty notices by mail.
(5) 
A signature by the applicant or operator appealing the Department's decision.
(6) 
The appeal fee in an amount established by the Board of Supervisors.
(D) 
Upon a timely written request by the person appealing the Department's action, an administrative hearing shall be held as follows:
(1) 
Notice of the administrative hearing shall state the time, date, and location of the hearing and shall be given at least 10 days before the hearing to the person requesting the hearing. The notice may be delivered to the person by personal service, email, or by first class mail, postage prepaid, to the address listed in their notice of appeal.
(2) 
Failure to appear at the administrative hearing shall constitute an abandonment of the appeal and a failure to exhaust administrative remedies.
(3) 
The administrative hearing shall be held before a Hearing Officer.
(4) 
The Hearing Officer's decision following the administrative hearing shall be delivered to the person requesting the hearing by personal service or by first class mail, postage prepaid, including a copy of the affidavit or certificate of mailing.
(5) 
Decisions by the Hearing Officer are final.
(Ord. 5459 § 1, 2024)
(A) 
If the Department has determined that an individual, family, household, organization, or group is operating a MEHKO without a MEHKO health permit, enforcement will occur in accordance with Articles 1 and 2 of Chapter 13 of the California Retail Food Code, commencing with Section 114381.
(B) 
Any person, whether acting as a principal, agent, employee, property owner, lessor, lessee, tenant, occupant, operator or contractor, or otherwise, violating any provisions of this chapter or the rules, regulations, orders, permits or conditions of approval issued thereunder, shall be liable to the County of Santa Cruz for costs of verifying abatement and costs accrued through compliance.
(C) 
Civil penalties, administrative citation hearings, and appeal proceedings for unpermitted MEHKO activity shall occur in accordance with Chapters 1.12 and 1.13 SCCC. Notwithstanding the administrative penalty limits set forth in SCCC § 1.13.070, the Department may impose an administrative penalty of up to three times the permit fee.
(Ord. 5459 § 1, 2024)
This chapter will become inoperative two years after the effective date.
(Ord. 5459 § 1, 2024)
The provisions of this chapter are severable. If any section, paragraph, sentence, phrase or word of this chapter is declared invalid for any reason, that decision shall not affect any other portion of this chapter, which shall remain in full force and effect.
(Ord. 5459 § 1, 2024)