BILL ANALYSIS Senate Research Center S.B. 541 89R3524 JTZ-F By: Kolkhorst Health & Human Services 3/7/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Texans deserve food freedom. We are a community made up of farmers, ranchers, chefs, line cooks, home cooks, bakers, culinary and garden educators, beekeepers, homesteaders, restauranteurs, and food lovers. S.B. 541 supports Texans from every walk of life, ensuring stronger local food systems, economic advancement, uplifting culturally diverse communities, and decreasing reliance on entitlement programs. The passing of cottage food laws in Texas paved the way for Texans to enter and expand the workforce from home, opening job opportunities to more women, marginalized groups, home-bound citizens, and those with limited resources. Considering the COVID-19 public health emergency, cottage food production provides a source of income to those suddenly unemployed or underemployed and fulfills an exposed deficit in our food supply. After passing the 2019 cottage food bill, S.B. 572, cottage food laws needed to evolve to the food supply and employment changes of 2020. Today, due to lessons learned from the pandemic, Texans want to better support local food systems that offer more transparency and food security. The provisions in the 2025 bill address the changing landscape of home businesses, entrepreneurship, cost of living increases, food shortages, food transparency, and accessibility to larger consumer markets. As proposed, S.B. 541 amends current law relating to cottage food production operations. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the executive commissioner of the Health and Human Services Commission in SECTION 3 (Section 437.0193, Health and Safety Code) and SECTION 7 (Section 437.01965, Health and Safety Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 437.001, Health and Safety Code, by amending Subdivision (2-b) and adding Subdivisions (3) and (5-a), to redefine "cottage food production operation" and define "cottage food vendor" and "nonprofit organization." SECTION 2. Amends Section 437.0192, Health and Safety Code, by amending Subsection (a) and adding Subsection (c), as follows: (a) Prohibits a local government authority, including a local health department, from: (1) creates this subdivision from existing text and makes no further changes; or (2) requiring a cottage food production operation to obtain any type of license or permit or pay any fee to sell food described by Section 437.001(2-b)(A) (relating to locations which are considered sites for a cottage food production operation) directly to a consumer or cottage food vendor. (c) Prohibits a local government authority, including a local health department, from employing or continuing to employ a person who knowingly requires or attempts to require a cottage food production operation to obtain a license or permit in violation of Subsection (a)(2). SECTION 3. Amends Section 437.0193, Health and Safety Code, by amending Subsection (b) and adding Subsections (b-1) and (e), as follows: (b) Requires that the label required to be used on all food described in Section 437.001(2-b)(A) include: (1) makes a nonsubstantive change to this subdivision; (2) the words "prepared on" immediately followed by the date on which the food is prepared; and (3) the following disclosure: "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." Deletes existing text requiring that the label include a statement that the food is not inspected by the Department of State Health Services (DSHS) or a local health department. (b-1) Provides that a cottage food production operation, notwithstanding Subsection (b)(1), is not required to include on a food label the address of the operation if the operation registers with DSHS in the form and manner DSHS prescribes. Authorizes the executive commissioner of the Health and Human Services Commission (executive commissioner) to adopt rules to implement this subsection. (e) Requires a cottage food production operation that sells time and temperature control for safety baked goods to include on the food label or on an invoice or receipt provided with the food when sold the following statement in at least 12-point font: "SAFE HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this food refrigerated or frozen until the food is prepared for consumption." SECTION 4. Amends Section 437.0194, Health and Safety Code, by amending Subsection (a) and adding Subsection (a-1), as follows: (a) Creates an exception under Subsection (a-1). (a-1) Authorizes a cottage food production operation to sell food described by Section 437.001(2-b)(A), except baked goods, to a cottage food vendor at wholesale. SECTION 5. Amends Chapter 437, Health and Safety Code, by adding Section 437.01953, as follows: Sec. 437.01953. REQUIREMENTS FOR SALE OF CERTAIN BAKED GOODS. Requires a cottage food production operation that sells to consumers time and temperature control for safety baked goods to store and deliver the food at the air temperature necessary to prevent the growth of bacteria that may cause human illness and label the food in accordance with Section 437.0193(e). SECTION 6. Amends Section 437.0196(a), Health and Safety Code, to redefine "time and temperature control for safety food." SECTION 7. Amends Chapter 437, Health and Safety Code, by adding Section 437.01965, as follows: Sec. 437.01965. COTTAGE FOOD VENDOR. (a) Authorizes a cottage food vendor to sell food described by Section 437.001(2-b)(A), except baked goods, directly to consumers at a farmers' market, farm stand, food service establishment, or any retail store. (b) Requires a cottage food vendor who sells food described by Section 437.001(2-b)(A) to display in a prominent place near the location where the food is offered for sale a sign with the following disclosure: "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." (c) Requires a cottage food vendor that purchases food from a cottage food production operation at wholesale to register with DSHS in the form and manner DSHS prescribes. Authorizes the executive commissioner to adopt rules to implement this subsection. SECTION 8. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 541
89R3524 JTZ-F By: Kolkhorst
Health & Human Services
3/7/2025
As Filed
Senate Research Center
S.B. 541
89R3524 JTZ-F
By: Kolkhorst
Health & Human Services
3/7/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Texans deserve food freedom. We are a community made up of farmers, ranchers, chefs, line cooks, home cooks, bakers, culinary and garden educators, beekeepers, homesteaders, restauranteurs, and food lovers.
S.B. 541 supports Texans from every walk of life, ensuring stronger local food systems, economic advancement, uplifting culturally diverse communities, and decreasing reliance on entitlement programs.
The passing of cottage food laws in Texas paved the way for Texans to enter and expand the workforce from home, opening job opportunities to more women, marginalized groups, home-bound citizens, and those with limited resources. Considering the COVID-19 public health emergency, cottage food production provides a source of income to those suddenly unemployed or underemployed and fulfills an exposed deficit in our food supply.
After passing the 2019 cottage food bill, S.B. 572, cottage food laws needed to evolve to the food supply and employment changes of 2020. Today, due to lessons learned from the pandemic, Texans want to better support local food systems that offer more transparency and food security.
The provisions in the 2025 bill address the changing landscape of home businesses, entrepreneurship, cost of living increases, food shortages, food transparency, and accessibility to larger consumer markets.
As proposed, S.B. 541 amends current law relating to cottage food production operations.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the executive commissioner of the Health and Human Services Commission in SECTION 3 (Section 437.0193, Health and Safety Code) and SECTION 7 (Section 437.01965, Health and Safety Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 437.001, Health and Safety Code, by amending Subdivision (2-b) and adding Subdivisions (3) and (5-a), to redefine "cottage food production operation" and define "cottage food vendor" and "nonprofit organization."
SECTION 2. Amends Section 437.0192, Health and Safety Code, by amending Subsection (a) and adding Subsection (c), as follows:
(a) Prohibits a local government authority, including a local health department, from:
(1) creates this subdivision from existing text and makes no further changes; or
(2) requiring a cottage food production operation to obtain any type of license or permit or pay any fee to sell food described by Section 437.001(2-b)(A) (relating to locations which are considered sites for a cottage food production operation) directly to a consumer or cottage food vendor.
(c) Prohibits a local government authority, including a local health department, from employing or continuing to employ a person who knowingly requires or attempts to require a cottage food production operation to obtain a license or permit in violation of Subsection (a)(2).
SECTION 3. Amends Section 437.0193, Health and Safety Code, by amending Subsection (b) and adding Subsections (b-1) and (e), as follows:
(b) Requires that the label required to be used on all food described in Section 437.001(2-b)(A) include:
(1) makes a nonsubstantive change to this subdivision;
(2) the words "prepared on" immediately followed by the date on which the food is prepared; and
(3) the following disclosure:
"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION."
Deletes existing text requiring that the label include a statement that the food is not inspected by the Department of State Health Services (DSHS) or a local health department.
(b-1) Provides that a cottage food production operation, notwithstanding Subsection (b)(1), is not required to include on a food label the address of the operation if the operation registers with DSHS in the form and manner DSHS prescribes. Authorizes the executive commissioner of the Health and Human Services Commission (executive commissioner) to adopt rules to implement this subsection.
(e) Requires a cottage food production operation that sells time and temperature control for safety baked goods to include on the food label or on an invoice or receipt provided with the food when sold the following statement in at least 12-point font:
"SAFE HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this food refrigerated or frozen until the food is prepared for consumption."
SECTION 4. Amends Section 437.0194, Health and Safety Code, by amending Subsection (a) and adding Subsection (a-1), as follows:
(a) Creates an exception under Subsection (a-1).
(a-1) Authorizes a cottage food production operation to sell food described by Section 437.001(2-b)(A), except baked goods, to a cottage food vendor at wholesale.
SECTION 5. Amends Chapter 437, Health and Safety Code, by adding Section 437.01953, as follows:
Sec. 437.01953. REQUIREMENTS FOR SALE OF CERTAIN BAKED GOODS. Requires a cottage food production operation that sells to consumers time and temperature control for safety baked goods to store and deliver the food at the air temperature necessary to prevent the growth of bacteria that may cause human illness and label the food in accordance with Section 437.0193(e).
SECTION 6. Amends Section 437.0196(a), Health and Safety Code, to redefine "time and temperature control for safety food."
SECTION 7. Amends Chapter 437, Health and Safety Code, by adding Section 437.01965, as follows:
Sec. 437.01965. COTTAGE FOOD VENDOR. (a) Authorizes a cottage food vendor to sell food described by Section 437.001(2-b)(A), except baked goods, directly to consumers at a farmers' market, farm stand, food service establishment, or any retail store.
(b) Requires a cottage food vendor who sells food described by Section 437.001(2-b)(A) to display in a prominent place near the location where the food is offered for sale a sign with the following disclosure:
"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION."
(c) Requires a cottage food vendor that purchases food from a cottage food production operation at wholesale to register with DSHS in the form and manner DSHS prescribes. Authorizes the executive commissioner to adopt rules to implement this subsection.
SECTION 8. Effective date: September 1, 2025.