Texas 2025 - 89th Regular

Texas House Bill HB520 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 89R3524 JTZ-F
22 By: Goodwin H.B. No. 520
33
44
55
66
77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to cottage food production operations.
1010 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1111 SECTION 1. Section 437.001, Health and Safety Code, is
1212 amended by amending Subdivision (2-b) and adding Subdivisions (3)
1313 and (5-a) to read as follows:
1414 (2-b) "Cottage food production operation" means an
1515 individual, operating out of the individual's home, who or a
1616 nonprofit organization that:
1717 (A) produces at the individual's home or the home
1818 of an individual who is a director or officer of the nonprofit
1919 organization, as applicable, subject to Section 437.0196:
2020 (i) a baked good, including a baked good
2121 that requires [is not a] time and temperature control for safety to
2222 limit pathogen growth or toxin production, but does not contain
2323 meat, poultry, shellfish, or fish [food, as defined by Section
2424 437.0196];
2525 (ii) candy;
2626 (iii) coated and uncoated nuts;
2727 (iv) unroasted nut butters;
2828 (v) fruit butters;
2929 (vi) a canned jam or jelly;
3030 (vii) a fruit pie;
3131 (viii) dehydrated fruit or vegetables,
3232 including dried beans;
3333 (ix) popcorn and popcorn snacks;
3434 (x) cereal, including granola;
3535 (xi) dry mix;
3636 (xii) vinegar;
3737 (xiii) pickled fruit or vegetables,
3838 including beets and carrots, that are preserved in vinegar, brine,
3939 or a similar solution at an equilibrium pH value of 4.6 or less;
4040 (xiv) mustard;
4141 (xv) roasted coffee or dry tea;
4242 (xvi) a dried herb or dried herb mix;
4343 (xvii) plant-based acidified canned goods;
4444 (xviii) fermented vegetable products,
4545 including products that are refrigerated to preserve quality;
4646 (xix) frozen raw and uncut fruit or
4747 vegetables; or
4848 (xx) any other food that is not a time and
4949 temperature control for safety food, as defined by Section
5050 437.0196, subject to Subparagraph (i);
5151 (B) has an annual gross income of $100,000
5252 [$50,000] or less from the sale of food described by Paragraph (A);
5353 (C) sells the foods produced under Paragraph (A)
5454 [only] directly to consumers or to a cottage food vendor; and
5555 (D) delivers products to the consumer or cottage
5656 food vendor at the point of sale or another location designated by
5757 the consumer or cottage food vendor.
5858 (3) "Cottage food vendor" means a person who:
5959 (A) has a contractual relationship with a cottage
6060 food production operation; and
6161 (B) sells food described by Subdivision
6262 (2-b)(A), except baked goods, on behalf of the cottage food
6363 production operation directly to consumers.
6464 (5-a) "Nonprofit organization" means an organization
6565 exempt from federal income tax under Section 501(a), Internal
6666 Revenue Code of 1986, as an organization described by Section
6767 501(c)(3) of that code.
6868 SECTION 2. Section 437.0192, Health and Safety Code, is
6969 amended by amending Subsection (a) and adding Subsection (c) to
7070 read as follows:
7171 (a) A local government authority, including a local health
7272 department, may not:
7373 (1) regulate the production of food at a cottage food
7474 production operation; or
7575 (2) require a cottage food production operation to
7676 obtain any type of license or permit or pay any fee to sell food
7777 described by Section 437.001(2-b)(A) directly to a consumer or
7878 cottage food vendor.
7979 (c) A local government authority, including a local health
8080 department, may not employ or continue to employ a person who
8181 knowingly requires or attempts to require a cottage food production
8282 operation to obtain a license or permit in violation of Subsection
8383 (a)(2).
8484 SECTION 3. Section 437.0193, Health and Safety Code, is
8585 amended by amending Subsection (b) and adding Subsections (b-1) and
8686 (e) to read as follows:
8787 (b) The executive commissioner shall adopt rules requiring
8888 a cottage food production operation to label all of the foods
8989 described in Section 437.001(2-b)(A) that the operation sells to
9090 consumers. The label must include:
9191 (1) the name and address of the cottage food
9292 production operation; [and]
9393 (2) the words "prepared on" immediately followed by
9494 the date on which the food is prepared; and
9595 (3) the following disclosure:
9696 "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT
9797 SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." [a statement that
9898 the food is not inspected by the department or a local health
9999 department.]
100100 (b-1) Notwithstanding Subsection (b)(1), a cottage food
101101 production operation is not required to include on a food label the
102102 address of the operation if the operation registers with the
103103 department in the form and manner the department prescribes. The
104104 executive commissioner may adopt rules to implement this
105105 subsection.
106106 (e) A cottage food production operation that sells time and
107107 temperature control for safety baked goods must include on the food
108108 label or on an invoice or receipt provided with the food when sold
109109 the following statement in at least 12-point font: "SAFE HANDLING
110110 INSTRUCTIONS: To prevent illness from bacteria, keep this food
111111 refrigerated or frozen until the food is prepared for consumption."
112112 SECTION 4. Section 437.0194, Health and Safety Code, is
113113 amended by amending Subsection (a) and adding Subsection (a-1) to
114114 read as follows:
115115 (a) Except as provided by Subsection (a-1), a [A] cottage
116116 food production operation may not sell any of the foods described in
117117 Section 437.001(2-b)(A) at wholesale.
118118 (a-1) A cottage food production operation may sell food
119119 described by Section 437.001(2-b)(A), except baked goods, to a
120120 cottage food vendor at wholesale.
121121 SECTION 5. Chapter 437, Health and Safety Code, is amended
122122 by adding Section 437.01953 to read as follows:
123123 Sec. 437.01953. REQUIREMENTS FOR SALE OF CERTAIN BAKED
124124 GOODS. A cottage food production operation that sells to consumers
125125 time and temperature control for safety baked goods shall:
126126 (1) store and deliver the food at the air temperature
127127 necessary to prevent the growth of bacteria that may cause human
128128 illness; and
129129 (2) label the food in accordance with Section
130130 437.0193(e).
131131 SECTION 6. Section 437.0196(a), Health and Safety Code, is
132132 amended to read as follows:
133133 (a) In this section, "time and temperature control for
134134 safety food" means a food that requires time and temperature
135135 control for safety to limit pathogen growth or toxin production.
136136 The term includes a food that must be held under proper temperature
137137 controls, such as refrigeration, to prevent the growth of bacteria
138138 that may cause human illness. A time and temperature control for
139139 safety food may include a food that contains protein and moisture
140140 and is neutral or slightly acidic, such as meat, poultry, fish, and
141141 shellfish products, pasteurized and unpasteurized milk and dairy
142142 products, raw seed sprouts, [baked goods that require
143143 refrigeration, including cream or custard pies or cakes,] and ice
144144 products. The term does not include a food that uses time and
145145 temperature control for safety food as ingredients if the final
146146 food product does not require time or temperature control for
147147 safety to limit pathogen growth or toxin production.
148148 SECTION 7. Chapter 437, Health and Safety Code, is amended
149149 by adding Section 437.01965 to read as follows:
150150 Sec. 437.01965. COTTAGE FOOD VENDOR. (a) A cottage food
151151 vendor may sell food described by Section 437.001(2-b)(A), except
152152 baked goods, directly to consumers at a farmers' market, farm
153153 stand, food service establishment, or any retail store.
154154 (b) A cottage food vendor who sells food described by
155155 Section 437.001(2-b)(A) must display in a prominent place near the
156156 location where the food is offered for sale a sign with the
157157 following disclosure:
158158 "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT
159159 SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION."
160160 (c) A cottage food vendor that purchases food from a cottage
161161 food production operation at wholesale shall register with the
162162 department in the form and manner the department prescribes. The
163163 executive commissioner may adopt rules to implement this
164164 subsection.
165165 SECTION 8. This Act takes effect September 1, 2025.