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State of California—Health and Human Services Agency <br /> California Department of Public Health <br /> !)CDPH <br /> TOMAS J.ARAGON,MD,DrPH GAVIN NEWSOM <br /> Director and State Public Health Officer Governor <br /> Assembly Bill (AB) 1144 Fact Sheet <br /> Governor Gavin Newsom signed into law AB 1144. The new law changes the Cottage Food <br /> Operations in the California Retail Food Code (CRFC). The implementation date for AB 1144 is <br /> January 1, 2022. <br /> SUMMARY OF THE CHANGES: <br /> Chapter 2 Definitions: <br /> Section 1: CRFC 113758 "Cottage Food Operations" <br /> New language increases the gross annual sales and defines direct and indirect sales. <br /> (a) A "Class A" cottage food operation shall not have more than seventy-five <br /> thousand dollars ($75,000) in verifiable gross annual sales. A "Class B" cottage <br /> food operation shall not have more than one hundred fifty thousand dollars <br /> ($150,000) in verifiable gross annual sales. The gross annual sales for a "Class A" <br /> or "Class B" cottage food operation shall be annually adjusted for inflation based <br /> on the California Consumer Price Index. <br /> ,r�(b)(4) "Direct sale" means...transactions made via the phone, internet, and any other <br /> k� digital method. A direct sale may be fulfilled in person, via mail delivery, or using <br /> any other third-party delivery service. <br /> �` (5) "Indirect sale" means...An indirect sale may be fulfilled in person, via mail <br /> delivery, or using any other third-party delivery service. <br /> Chapter 11 .5 Cottage Food Operations <br /> Section 2: CRFC 114365 <br /> New Language: (allows for statewide sales by Class A cottage food operations) <br /> (a)(1) (D) A "Class A" cottage food operation shall be authorized to engage in the <br /> direct sales of cottage food products throughout the state. <br /> (a)(2) (This portion of the section has been rearranged with new numbering, except the <br /> new language that is in bold) <br /> (C) <br /> (i) Except as provided in clause (ii), a "Class B" cottage food operation shall not be <br /> subject to more than one inspection per year by the local enforcement agency. <br /> CDPH FDB, MS 7602 • P.O. Box 997435 • Sacramento, CA 95899 <br /> (800) 495-3232 Email: FDBRetail@cdph.ca.gov <br /> Department Website (www.cdph.ca.gov) <br />