Texas 2025 - 89th Regular

Texas Senate Bill SB541 Compare Versions

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1-By: Kolkhorst, Sparks S.B. No. 541
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1+By: Kolkhorst S.B. No. 541
2+ (In the Senate - Filed December 6, 2024; February 3, 2025,
3+ read first time and referred to Committee on Health & Human
4+ Services; March 19, 2025, reported favorably by the following
5+ vote: Yeas 8, Nays 0; March 19, 2025, sent to printer.)
6+Click here to see the committee vote
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69 A BILL TO BE ENTITLED
710 AN ACT
811 relating to cottage food production operations.
912 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1013 SECTION 1. Section 437.001, Health and Safety Code, is
1114 amended by amending Subdivision (2-b) and adding Subdivisions (3)
1215 and (5-a) to read as follows:
1316 (2-b) "Cottage food production operation" means an
1417 individual, operating out of the individual's home, who or a
1518 nonprofit organization that:
1619 (A) produces at the individual's home or the home
1720 of an individual who is a director or officer of the nonprofit
1821 organization, as applicable, subject to Section 437.0196:
1922 (i) a baked good, including a baked good
2023 that requires [is not a] time and temperature control for safety to
2124 limit pathogen growth or toxin production, but does not contain
2225 meat, poultry, shellfish, or fish [food, as defined by Section
2326 437.0196];
2427 (ii) candy;
2528 (iii) coated and uncoated nuts;
2629 (iv) unroasted nut butters;
2730 (v) fruit butters;
2831 (vi) a canned jam or jelly;
2932 (vii) a fruit pie;
3033 (viii) dehydrated fruit or vegetables,
3134 including dried beans;
3235 (ix) popcorn and popcorn snacks;
3336 (x) cereal, including granola;
3437 (xi) dry mix;
3538 (xii) vinegar;
3639 (xiii) pickled fruit or vegetables,
3740 including beets and carrots, that are preserved in vinegar, brine,
3841 or a similar solution at an equilibrium pH value of 4.6 or less;
3942 (xiv) mustard;
4043 (xv) roasted coffee or dry tea;
4144 (xvi) a dried herb or dried herb mix;
4245 (xvii) plant-based acidified canned goods;
4346 (xviii) fermented vegetable products,
4447 including products that are refrigerated to preserve quality;
4548 (xix) frozen raw and uncut fruit or
4649 vegetables; or
4750 (xx) any other food that is not a time and
4851 temperature control for safety food, as defined by Section
4952 437.0196, subject to Subparagraph (i);
5053 (B) has an annual gross income of $100,000
5154 [$50,000] or less from the sale of food described by Paragraph (A);
5255 (C) sells the foods produced under Paragraph (A)
5356 [only] directly to consumers or to a cottage food vendor; and
5457 (D) delivers products to the consumer or cottage
5558 food vendor at the point of sale or another location designated by
5659 the consumer or cottage food vendor.
5760 (3) "Cottage food vendor" means a person who:
5861 (A) has a contractual relationship with a cottage
5962 food production operation; and
6063 (B) sells food described by Subdivision
6164 (2-b)(A), except baked goods, on behalf of the cottage food
6265 production operation directly to consumers.
6366 (5-a) "Nonprofit organization" means an organization
6467 exempt from federal income tax under Section 501(a), Internal
6568 Revenue Code of 1986, as an organization described by Section
6669 501(c)(3) of that code.
6770 SECTION 2. Section 437.0192, Health and Safety Code, is
6871 amended by amending Subsection (a) and adding Subsection (c) to
6972 read as follows:
7073 (a) A local government authority, including a local health
7174 department, may not:
7275 (1) regulate the production of food at a cottage food
7376 production operation; or
7477 (2) require a cottage food production operation to
7578 obtain any type of license or permit or pay any fee to sell food
7679 described by Section 437.001(2-b)(A) directly to a consumer or
7780 cottage food vendor.
7881 (c) A local government authority, including a local health
7982 department, may not employ or continue to employ a person who
8083 knowingly requires or attempts to require a cottage food production
8184 operation to obtain a license or permit in violation of Subsection
8285 (a)(2).
8386 SECTION 3. Section 437.0193, Health and Safety Code, is
8487 amended by amending Subsection (b) and adding Subsections (b-1) and
8588 (e) to read as follows:
8689 (b) The executive commissioner shall adopt rules requiring
8790 a cottage food production operation to label all of the foods
8891 described in Section 437.001(2-b)(A) that the operation sells to
8992 consumers. The label must include:
9093 (1) the name and address of the cottage food
9194 production operation; [and]
9295 (2) the words "prepared on" immediately followed by
9396 the date on which the food is prepared; and
9497 (3) the following disclosure:
9598 "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT
9699 SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." [a statement that
97100 the food is not inspected by the department or a local health
98101 department.]
99102 (b-1) Notwithstanding Subsection (b)(1), a cottage food
100103 production operation is not required to include on a food label the
101104 address of the operation if the operation registers with the
102105 department in the form and manner the department prescribes. The
103106 executive commissioner may adopt rules to implement this
104107 subsection.
105108 (e) A cottage food production operation that sells time and
106109 temperature control for safety baked goods must include on the food
107110 label or on an invoice or receipt provided with the food when sold
108111 the following statement in at least 12-point font: "SAFE HANDLING
109112 INSTRUCTIONS: To prevent illness from bacteria, keep this food
110113 refrigerated or frozen until the food is prepared for consumption."
111114 SECTION 4. Section 437.0194, Health and Safety Code, is
112115 amended by amending Subsection (a) and adding Subsection (a-1) to
113116 read as follows:
114117 (a) Except as provided by Subsection (a-1), a [A] cottage
115118 food production operation may not sell any of the foods described in
116119 Section 437.001(2-b)(A) at wholesale.
117120 (a-1) A cottage food production operation may sell food
118121 described by Section 437.001(2-b)(A), except baked goods, to a
119122 cottage food vendor at wholesale.
120123 SECTION 5. Chapter 437, Health and Safety Code, is amended
121124 by adding Section 437.01953 to read as follows:
122125 Sec. 437.01953. REQUIREMENTS FOR SALE OF CERTAIN BAKED
123126 GOODS. A cottage food production operation that sells to consumers
124127 time and temperature control for safety baked goods shall:
125128 (1) store and deliver the food at the air temperature
126129 necessary to prevent the growth of bacteria that may cause human
127130 illness; and
128131 (2) label the food in accordance with Section
129132 437.0193(e).
130133 SECTION 6. Section 437.0196(a), Health and Safety Code, is
131134 amended to read as follows:
132135 (a) In this section, "time and temperature control for
133136 safety food" means a food that requires time and temperature
134137 control for safety to limit pathogen growth or toxin production.
135138 The term includes a food that must be held under proper temperature
136139 controls, such as refrigeration, to prevent the growth of bacteria
137140 that may cause human illness. A time and temperature control for
138141 safety food may include a food that contains protein and moisture
139142 and is neutral or slightly acidic, such as meat, poultry, fish, and
140143 shellfish products, pasteurized and unpasteurized milk and dairy
141144 products, raw seed sprouts, [baked goods that require
142145 refrigeration, including cream or custard pies or cakes,] and ice
143146 products. The term does not include a food that uses time and
144147 temperature control for safety food as ingredients if the final
145148 food product does not require time or temperature control for
146149 safety to limit pathogen growth or toxin production.
147150 SECTION 7. Chapter 437, Health and Safety Code, is amended
148151 by adding Section 437.01965 to read as follows:
149152 Sec. 437.01965. COTTAGE FOOD VENDOR. (a) A cottage food
150153 vendor may sell food described by Section 437.001(2-b)(A), except
151154 baked goods, directly to consumers at a farmers' market, farm
152155 stand, food service establishment, or any retail store.
153156 (b) A cottage food vendor who sells food described by
154157 Section 437.001(2-b)(A) must display in a prominent place near the
155158 location where the food is offered for sale a sign with the
156159 following disclosure:
157160 "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT
158161 SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION."
159162 (c) A cottage food vendor that purchases food from a cottage
160163 food production operation at wholesale shall register with the
161164 department in the form and manner the department prescribes. The
162165 executive commissioner may adopt rules to implement this
163166 subsection.
164167 SECTION 8. This Act takes effect September 1, 2025.
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