California Cooks Selling Directly to the Public

It used to be that if you liked to cook, you had to open a restaurant in order to make money off of your cooking. There’s the food truck route, of course, but soon, there will be another option in California: you can sell food you make in your home kitchen directly to the public. If you’re interested in doing this, the law behind this is actually quite involved. I’ll mention some sections of the California Health and Safety Code below, but the basic idea involves the creation of something California calls a “microenterprise home kitchen operation” (CA Health and Safety Code section 113825). There are other code sections that will specify how a “microenterprise home kitchen operation” will fit in to the existing law that governs food, restaurants, food preparation, etc. And, of course, there are going to be laws that specify how microenterprise home kitchen operations will be regulated by the city or county they’re located in and several sections of the Health and Safety Code (e.g. Section 114367) will be devoted to that. Microenterprise Home Kitchen Operation (MHKO) This will be defined in section 113825 of California’s Health and Safety Code. An MHKO has nine criteria: It doesn’t have more than one full-time employee. Family members and household members don’t count. Food is prepared, cooked, and served on the same day. Food is either (1) consumed onsite, or (2) offsite if the consumer picks the food up or is delivered Food preparation does not involved anything requiring a HACCP plan or the production, sale, or service of raw milk or milk products. HACCP stands for “Hazardous...

Female Directors on California Boards of Directors

Some of you might have heard that California recently¬†(less than 24 hours as of the time I write this)¬†passed a law that requires a certain number of directors on a corporation’s Board of Directors to be female. I’ve already gotten several inquiries about this new law and it’s been less than a day. In this post, I’m going to summarize what I think are the major pieces of the new law. It’s not going to be a comprehensive summary, of course as I cannot go over every possible aspect of any law. As always, I encourage you to do your own research, consult with your own legal counsel, etc. This new law arose as California Senate Bill 826 in the 2017-2018 regular session and does basically three things: It imposes a dual-level requirement for Boards of Directors with respect to female directors, It creates a publication requirement to disclose which companies are and are not in compliance, and It imposes fines for non-compliance. Dual-Level Requirement The news has basically described this new law as a requirement to have a certain number of female directors on a company’s Board of Directors. If you read the actual statute (California Corporations Code section 301.3), you’ll discover that there are actually two requirements, hence why I call it a “Dual-Level Requirement.” The first level is that as of the close of calendar year 2019, every corporation that has its Principal Executive Offices (PEO) in California must have at least one female director on its board. The PEO shall be determined based on what the corporation says in its annual 10-K filing to the...