A man breaks the law by selling bread from his home in California. While this sounds like a scene from Les Mis, or something of that era, it was in fact an incident a few years back, involving the bread baker, Mark Stambler in Los Angeles.

Stambler began his craft of baking bread over thirty years ago. However, things did not really begin to get serious in the bread business until years later in 2005, when Mark Stambler and his wife Suzette began building a massive 6 foot tall oven in their back yard. This hobby soon became an idea for a full fledged home business labeled the Pangoul Boulanger. His private business soon became public with a featured story regarding his bread baking in the Los Angeles Times in May 2011.

These fifteen minutes of fame were indeed short lived, as the complete description of Stambler’s home baking business became a lead for the health department to follow all the way to Stambler’s doorstep. That day, the stores selling Stambler’s french loaves were forbidden from passing along his home made bread. In the words of Stambler, “the health department descended like a ton of bricks on the two stores that were selling my bread.” Following this departmental shut down, Pagnoul Boulanger went into hiding for 18 months.

Stambler decided to take a stand in order to follow his passion by becoming an activist and researching the cottage laws across the state. These laws classify cottage products as those that are low risk for spreading bacteria. With the help of his assemblyman, Mike Gatto, Stambler began to draft of the California Homemade Food Act (AB 1616). This law would allow low risk foods to be made in the home and sold for public consumption. This act sailed through the California State Assembly in a vote of 60 to 16 and later also passed through the Senate in 2012. 

The law went into effect in January 2013, and Stambler became one of the first to legally sell food from home in Los Angeles County. Stambler laid out a path for many other home business owners to follow, as currently there are around 270 cottage businesses within his county and an approval of around 1,200 across the state. 

The passage of the California Homemade Food Act, came with specific procedures to follow, as home business owners are required to pass a food processor course, must label goods, and follow sanitation precautions. Also, homemade food producers must obtain a permit falling under Class A or B. Class A permits pertain to direct sales, from provider to consumer, allowing a bypass of inspections. Class B permits require inspections but can be used to make indirect sales through a third party such as a restaurant or bakery.

The food created by the home businesses in California include such as cookies, coffee, tea, jellies, etc, rather than any type of meat, dairy or seafood. These limitations have presented the cottage sales as safe business ventures. Multiple health departments have inspected several of the home businesses, however, they have received no complaints within the Los Angeles County and have not been forced to revoke any permits.

The law contains both pros and cons for small food entrepreneurs. On one side, it has freed many home bakers from having to rent commercial kitchens in order to bake their goods. Instead, cottage laws have allowed these business owners to cook from their own kitchens, escaping the costly fees of renting a kitchen. On the down side, the California Homemade Food Act, does not encompass all small business owners but instead sets a price cap that could prevent some from its protection. Once over the earnings cap amounting to $45,000, business owners must rent out a commercial kitchen. Many owners are calling to get rid of this cap, saying that it prevents small businesses from ever growing into large companies.

Giving small business owners a chance to legally expand their product by selling it to the public is only fair. However, the cottage laws do seem rather limiting, including a small list of goods that are labeled as available for home sale and the price cap placed on profits. California has a more liberal program regarding cottage foods than other states, one that should really set the precedent. Other states such as Minnesota have very restrictive laws, caping profits at $5,000 and only allowing bakers to sell goods in farmer’s markets. Anyone found denying these limitations can face both fines of up to $2,500 or three months in jail. Thus, the less strict application of cottage laws within California is making strides for home business owners. While there is still a ways to go before the cottage law program seems completely fair to all of these similar entrepreneurs, the program that California has instated is off to a good start.

[Forbes] [LaTimes]

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Taylor Garre (@TaylorLynn013)

Featured image courtesy of [web4camguy via Flickr]

Taylor Garre

Taylor Garre is a student at Fordham University and formerly an intern at Law Street Media. Contact Taylor at staff@LawStreetMedia.com.

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