82R11147 SJM-D
By: Kolkhorst H.B. No. 2084
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of small food production and sales
operations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 435.009, Health and
Safety Code, is amended to read as follows:
Sec. 435.009. FEES ON MILK AND MILK PRODUCTS.
SECTION 2. (a) Section 435.009(a), Health and Safety Code,
is redesignated as Section 435.0091, Health and Safety Code, and
amended to read as follows:
Sec. 435.0091. CERTAIN FEES PROHIBITED. [(a)] A political
subdivision or agency of this state, other than the department, may
not impose a fee on milk or a milk product, or on a person for the
movement, distribution, or sale of milk or a milk product.
(b) Section 435.009, Health and Safety Code, is amended by
adding Subsection (a-1) and amending Subsections (d) and (e) to
read as follows:
(a-1) This section does not apply to a small dairy
production operation as defined by Section 435.0092.
(d) A permit issued under Section 435.006 [this chapter] is
valid for two years and must be renewed not later than September 1
of the year in which the permit expires.
(e) The department shall prorate fees paid for permits
issued under Section 435.006 [this chapter] after the beginning of
a permit year.
SECTION 3. Subchapter A, Chapter 435, Health and Safety
Code, is amended by adding Section 435.0092 to read as follows:
Sec. 435.0092. PERMIT AND FEES FOR SMALL DAIRY PRODUCTION
OPERATIONS. (a) In this section, "small dairy production
operation" means a person who produces less than $250,000 worth of
cheese and other milk products for retail sale, based on gross
retail sales.
(b) A person may not operate a small dairy production
operation unless the person holds a permit issued under this
section. The person must apply to the department for a permit.
(c) Notwithstanding Section 435.009(b), the department
shall impose on a small dairy production operation the following
fees:
(1) a permit fee of $50 a year for a dairy farm; and
(2) a permit fee of $100 a year for a dairy plant.
(d) A permit issued under this section is valid for one year
and must be renewed not later than September 1 of the year in which
the permit expires.
(e) The department shall prorate fees paid for permits
issued under this section after the beginning of a permit year.
(f) A small dairy production operation that holds a permit
under this section is not required to hold a permit under Section
435.006 or pay a fee under Section 435.009.
SECTION 4. Section 437.001, Health and Safety Code, is
amended by amending Subdivisions (1) and (3) and adding
Subdivisions (2-a), (2-b), (3-a), and (5) to read as follows:
(1) "Board" means the executive commissioner [Texas
Board of Health].
(2-a) "Baked good" includes cookies, cakes, breads,
Danish, donuts, pastries, pies, and other items that are prepared
by baking the item in an oven. A baked good does not include a
potentially hazardous food item as defined by department rule.
(2-b) "Cottage food production operation" means an
individual, operating out of the individual's home, who:
(A) produces a baked good, a canned jam or jelly,
or a dried herb or herb mix for sale at the person's home or a
farmers' market;
(B) has an annual gross income of $250,000 or
less from the sale of food described by Paragraph (A); and
(C) sells the foods produced under Paragraph (A)
only directly to consumers.
(3) "Department" means the [Texas] Department of State
Health Services.
(3-a) "Executive commissioner" means the executive
commissioner of the Health and Human Services Commission.
(5) "Home" means a primary residence that contains a
kitchen and appliances designed for common residential usage.
SECTION 5. Chapter 437, Health and Safety Code, is amended
by adding Sections 437.0191 and 437.0192 to read as follows:
Sec. 437.0191. EXEMPTION FOR COTTAGE FOOD PRODUCTION
OPERATIONS. A cottage food production operation is not a food
service establishment for purposes of this chapter.
Sec. 437.0192. REGULATION AND INVESTIGATION OF COTTAGE FOOD
PRODUCTION OPERATIONS BY LOCAL HEALTH DEPARTMENT. (a) A local
health department:
(1) may not regulate the production of food at a
cottage food production operation; and
(2) may investigate a cottage food production
operation only if the local health department receives a complaint
regarding the operation.
(b) If the department receives a complaint about a cottage
food production operation, the operation's owner shall provide the
department with a current financial statement, federal income tax
return, sales receipts, or other documentation to establish that
the annual gross sales of the operation do not exceed $250,000.
SECTION 6. Chapter 33, Human Resources Code, is amended by
adding Section 33.029 to read as follows:
Sec. 33.029. FARMERS' MARKET NUTRITIONAL ASSISTANCE
PROGRAM. (a) In this section, "farmers' market" means a location
at which a group of two or more farmers that are certified under the
Department of Agriculture's farmers' market certification program
offer produce for retail sale.
(b) The department shall develop and implement a farmers'
market nutritional assistance program. The program must:
(1) allow a person receiving benefits under a
nutritional assistance program under this chapter to purchase at a
farmers' market food items eligible under the program;
(2) provide an affordable method for enabling
individual sellers at a farmers' market to accept and process an
electronic benefits transfer as payment for food; and
(3) make available to a person receiving benefits
under a nutritional assistance program administered under this
chapter information regarding the program and a list of
participating farmers' markets.
(c) The department may not implement a program under this
section for the sole purpose of regulating farmers' markets.
(d) The department may accept gifts or grants from
individuals or private or public organizations and accept federal
or local funds to implement and administer the program developed
under this section.
SECTION 7. (a) The comptroller shall:
(1) determine whether land is eligible, under current
law, for appraisal under Subchapter C or D, Chapter 23, Tax Code, if
the land is used to:
(A) cultivate an urban farm;
(B) cultivate a community garden;
(C) produce specialty crops; or
(D) raise livestock or produce crops using
organic, sustainable, or other unconventional methods; and
(2) study issues regarding the eligibility of land
used for the purposes listed in Subdivision (1) for appraisal under
Subchapter C or D, Chapter 23, Tax Code.
(b) Not later than December 1, 2012, the comptroller shall
submit to the appropriate standing committees of the senate and the
house of representatives a report on:
(1) the comptroller's eligibility determinations
under Subsection (a)(1);
(2) an analysis of the comptroller's reasons for
determining that land used for a purpose listed in Subsection
(a)(1) is or is not eligible for appraisal under Subchapter C or D,
Chapter 23, Tax Code; and
(3) as applicable and based on the determinations made
under Subdivision (a)(1), recommendations for legislation to
clarify or change the requirements for land to be eligible for
appraisal under Subchapter C or D, Chapter 23, Tax Code.
(c) This section expires December 31, 2012.
SECTION 8. The change in law made by this Act in amending
Section 435.009, Health and Safety Code, and adding Section
435.0092, Health and Safety Code, applies to a small dairy
production operation permit that is issued or renewed under Section
435.0092, Health and Safety Code, as added by this Act, on or after
the effective date of this Act. A permit issued or renewed under
Chapter 435, Health and Safety Code, before the effective date of
this Act is governed by the law in effect at the time the permit was
issued or renewed, and the former law is continued in effect for
that purpose.
SECTION 9. If before implementing any provision of this Act
a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation of that provision,
the agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
SECTION 10. The Health and Human Services Commission shall
develop and implement the farmers' market nutritional assistance
program as required by Section 33.029, Human Resources Code, as
added by this Act, not later than September 1, 2012.
SECTION 11. This Act takes effect September 1, 2011.