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Staff analysis: While State law mandates that "direct sales" must be allowed to occur at a cottage food operation (so long as the operation meets requirements, such as parking), this standard makes it clear that cottage food operations may only sell approved food products at the site, but that the cottage food operation may not serve food for consumption at the site. Food service implicates more traffic, longer parking times, need to provide restrooms, and other health and safety issues. G. Code Requirements. While the use of a residence for a cottage food operation shall not constitute a change of occupancy for purposes of building and fire codes, to the extent that building modifications are proposed (e.g. install or move walls for storage areas, add a new electrical panel for a range, etc.) the cottage food operation shall meet all requirements of Title 20 (Buildings and Construction). Staff analysis: Per State law, a cottage food operation in a residence is not a change in occupancy for building and fire code purposes. However, applicable building and fire permits would still be required should a cottage food operator choose to physically alter their residence. Cottage food operations would be subject to a staff level permit process that will allow staff to ensure that community interests and City standards will be protected. The proposed Code amendments will have minimal impact on residents and will meet the State's mandate and the Legislature's stated purposes of these new laws to encourage small business development, provide healthy and fresh food choices, support community-based food production, legalize bake sales, and not subject home-based food production to the same food safety requirements as other commercial food producers.3 County Health Department In terms of food safety and public health, the Alameda County Department of Environmental Health's Food Safety Division (ACDEHFSD) will be the public agency which registers and issues permits for cottage food operations that comply with State sanitation, labeling, health and safety requirements.' Similar to the mariner in which the County regulates food safety in restaurants and grocery stores, the County will also regulate cottage food operations. ACDEHFSD will require proof from a city, the County or the cottage food operator that the governing agency has granted approval for the cottage food operation prior to issuing an environmental health food permit. Please refer to the Food Safety section on page 7 of the Planning Commission staff report in Attachment 2 for more detail on the County requirements. 3 See AB 1616, Section 1 G Health & Safety Code§§113851 and 114365 (by AB 1616 Sections 9 and 13 in the attached Exhibit B). Page 5 of 6